Pathfinder Minerals Regulatory News (PFP)

For immediate release: 30 September 2011

Pathfinder Minerals Plc

("Pathfinder Minerals" or the "Company")

Interim Results for the Year Ended 30 June 2011

Chairman's Statement

Early in the first half of this year Pathfinder Minerals announced the completion of the acquisition of IM Minerals Limited and, with it, two adjacent licences to mine heavy minerals sands on the Indian Ocean Coast of Mozambique, known as Moebase and Naburi. The Company is built around these two world-class deposits of ilmenite, rutile and zircon and is entirely focused on its strategy to build and operate a mine to produce these valuable minerals.

Since that acquisition in February 2011, and associated small fundraising of £525,000, the Company has made exceptional progress in each of the key areas that contribute towards the Company's strategy. These key areas are:

·; Geological: to refine our understanding of the ore body, depths and grades;

·; Technical: to define the mine development strategy; and

·; Financial: to define the project economics and raise sufficient funding to progress through to bankable feasibility.

Project Development

Within four months of the completion of the acquisition the Company commissioned, and completed, a Scoping Study report on the assets carried out by engineering consultants URS/Scott Wilson. The Scoping Study was a necessary step in developing an optimum mining method, process flow sheet and ancillary infrastructure requirements as well as progressing to the next level of engineering and cost accuracy.

The results of the Scoping Study were compelling, attributing a Net Present Value (at 10% discount rate) of $529 million and an estimated annual run of mine production of 47,000,000 tonnes per annum (tpa) yielding 1,245,000 tpa of ilmenite, 24,000 tpa of rutile and 65,000 tpa of zircon. Employing what the Company believed to be a highly conservative commodity pricing model, the Scoping Study estimated gross revenues from production of $246,493,000 per annum. The board believes that the anticipated price growth arising from the widely predicted supply deficit of ilmenite, rutile and zircon, by the time our mine is in production, will lead to substantially higher production revenues than those estimated in the Scoping Study. The Scoping Study estimated the direct capital costs of the project will be in the order of $533 million, a figure which will be further refined during the Definitive Feasibility Study.

A further critical step in the ongoing development of the project was the Company's appointment, earlier this month, of Wardell Armstrong International Limited as Feasibility Study Manager to manage the execution of the feasibility phase. Wardell Armstrong International is a leading international mining consultancy firm, providing a wide range of services for minerals-related projects. It will support the technical link between Pathfinder Minerals and the various contractors being appointed by the Company to carry out onsite operational and technical engineering study work throughout the feasibility study development period.

Licence Status

In July we were informed by the National Directorate of Mines at the Ministry of Mineral Resources of Mozambique that it had issued a new mining concession licence for the Company's Moebase mineral sands deposit. Mining concession licence 4623C was issued on 13 July 2011 for a period of twenty-five years, replacing the previous exploration and research Licence 73L. Pathfinder Minerals now has mining concessions on both of its licences, enabling us to move forward with the strongest licence tenure.

Finance

In July 2011 Pathfinder Minerals gained the support of institutional investors including JP Morgan Asset Management (UK) Limited and Genesis Asset Managers, LLP, contributing to our £11 million fundraising. The proceeds have enabled the Company to implement the full feasibility study and detailed engineering work leading up to bankable feasibility and mine construction, for which the Company is exploring a number of non-equity related sources of funding. To have concluded this crucial fundraising to enable the Company to move forward at the pace we are moving was a tremendous achievement in the current economic climate and testament, indeed, to the quality of Pathfinder Minerals' assets.

Board Changes

Pathfinder Minerals was honoured to announce the appointment of Major-General Jacinto Veloso (General Veloso) as a non-executive director of the Company in June 2011. He is one of the most respected individuals in Mozambique who, after a decorated career in the armed forces following the country's independence, held many prominent government positions, including Minister of State Security, General Director of the Intelligence Services, Minister of Economic Affairs and Minister of International Cooperation. From 2003-2009 he was Chairman of the Mozambique Chamber of Commerce.

General Veloso is an adviser to the President of the Republic of Mozambique and a member of the National Defence and Security Council. He has acted as the President of the Republic of Mozambique's envoy on numerous occasions, mainly in the matters of the establishment of peace in Mozambique and Angola, the end of apartheid in South Africa and Namibian independence. General Veloso was the chairman of the Government Commission that negotiated the M'Komati Accord of "good neighbourliness and non-aggression" with the Republic of South African 1984. He remains, today, the President of the South Africa-Mozambique Friendship Association.

General Veloso, together with Diogo Cavaco, co-founded the Company's subsidiary, Companhia Mineira de Naburi, S.A.R.L., which holds the Naburi and Moebase licences.

Tim Baldwin and Gordon Dickie, both non-executive directors, stepped down from the board. Both individuals have been instrumental in the early identification of Pathfinder Minerals' opportunity in Mozambique and I thank them, on behalf of the board, for their contributions. The board is now actively in discussions with a number of potential non-executive candidates who will contribute to the future development of Pathfinder Minerals as we move through feasibility and into bankable feasibility. I look forward to making announcements in this regard in due course.

Outlook

Having appointed Wardell Armstrong International as Feasibility Study Manager, the Company is in the final stages of appointing other specialist contractors and consultants who will contribute in multiple areas including project management, engineering, construction and logistics planning, site upgrades, topographical surveying, drilling, core sample analysis and metallurgical testwork. Such appointments will substantially be completed before the end of the year and, we anticipate, the confirmatory drilling programme will have begun. I would like to thank our Chief Executive Nick Trew for his efforts towards the significant progress that has been achieved in the short time since the acquisition and I look forward to reporting on our developments throughout the feasibility project.

John McKeon

Chairman

30 September 2011

Enquiries:

Pathfinder Minerals Plc

Nick Trew, Chief Executive

Tel. +44 (0)20 7399 4371

Daniel Stewart & Company Plc

Oliver Rigby or James Thomas

Tel: +44 (0)20 7776 6550

M: Communications

Ben Simons or Maria Souvorov

Tel: +44 (0)20 7920 2340 /2327

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the six months ended 30 June 2011

CONSOLIDATED BALANCE SHEET

30 June 2011

STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

CASH FLOW STATEMENT

NOTES

1. BASIS OF PREPARATION

These financial statements have been prepared under the historical cost convention and on a going concern basis; and, with the exception of International Accounting Standard 34 - Interim Financial Reporting (which is not mandatory for companies listed on AIM), in accordance with International Financial Reporting Standards and IFRIC interpretations adopted for use in the European Union.

The financial information for the period ended 30 June 2011 has not been audited or reviewed in accordance with the International Standard on Review Engagements 2410 issued by the Auditing Practices Board. The figures were prepared using applicable accounting policies and practices consistent with those adopted in the statutory accounts for the year ended 31 December 2010. The figures for the year ended 31 December 2010 have been extracted from these accounts, which have been delivered to the Registrar of Companies and contain an unqualified audit report.

The financial information contained in this document does not constitute statutory accounts as defined by Section 435 of the Companies Act 2006. In the opinion of the directors, the financial information for this period fairly presents the financial position, result of operations and cash flows for the period.

This Interim Financial Report was approved by the Board of Directors on 30 September 2011.

2. CONSOLIDATION

On 9 February 2011 Pathfinder acquired those shares in IM Minerals Limited that it did not already own. The consideration was the issue of 728,556,730 Pathfinder 1p shares valued at 4.75 pence each.

The excess of the aggregate of the Company's existing investment and the value of these shares over the net assets of IM Minerals represents the value attributable to the concession licence granted to IM Minerals' Mozambique subsidiary; and is disclosed in these interim statements as an intangible asset.

The premium over the nominal value of the shares issued has been credited to a merger reserve.

3. SEGMENTAL ANALYSIS

The development of the Group's mining interest in Mozambique comprises the whole of the Group's activity. The Group has an administrative function in the UK and otherwise operates entirely in Mozambique. The operating result and the assets and liabilities of the Group can be attributed to the UK and to Mozambique as follows:

4. LOSS PER SHARE

The calculation of loss per share is based on the loss after taxation divided by the weighted average number of shares in issue during the period. Because there was a loss in the period, the issue of shares to warrant and option holders would be anti-dilutive; and so the diluted loss per share has not been calculated.

5. ISSUES OF SHARES

During the period the Company made the following issues of shares.

·; On 9 February 2011 the Company issued 728,556,730 1p shares at a deemed price of 4.75 pence per share in consideration of the acquisition of those shares in IM Minerals Limited that it did not already own.

·; Also on 9 February the Company placed 11,052,632 shares for cash at a price of 4.75 pence per share, raising £525,000; and holders of warrants to subscribe for 20,266,665 ordinary 1p shares exercised those warrants, resulting in the injection of additional cash resources of £304,000.

·; On 1 March 2011 a holder of warrants to subscribe for 2,094,065 ordinary 1p shares exercised those warrants, resulting in the injection of additional cash resources of £99,468.

·; On 16 March 2011 a holder of warrants to subscribe for 666,667 ordinary 1p shares exercised those warrants, resulting in the injection of additional cash resources of £10,000.

As a result of the issue of these additional shares the number of ordinary 1p shares in issue at 30 June 2011 was 812,167,230.

6. CONTINGENT LIABILITIES

As part of the agreement for the purchase of the shares in its subsidiary, Companhia Mineira de Naburi SARL, the Company has agreed to pay the vendors a further sum of $9,900,000 if, following further exploration and appraisal, an agreement is reached for the construction of a facility for the processing of ore extracted from the Naburi mineral sands deposit. Similarly, as part of its agreement for the purchase of the whole of the issued share capital of Sociedade Geral de Mineracao de Moçambique SARL, Comphania Mineira de Naburi SARL has agreed to pay the vendors, BHP Billiton, a further sum of $9,500,000 if, following further exploration and appraisal, an agreement is reached for the construction of a facility for the processing of ore extracted from the Moebase mineral sands deposit.

7. POST BALANCE SHEET EVENTS

On 22 July 2011 the Company issued 220,000,000 new ordinary 1p shares at 5p per share, raising a gross sum of £11,000,000.

A copy of this interim statement and of other announcements made by the Company are available on the Company's website - www.pathfinderminerals.com