Riverfort Regulatory News (RGO)

PATERNOSTER RESOURCES PLC

"Paternoster" or the "Company"

Quarterly Update to 30 September 2015

Paternoster Resources plc, the investing company focused on the natural resources sector, is pleased to provide a quarterly update to 30 September 2015.

The key unaudited performance indicators are set out below.

The last update was provided on 28 September 2015 as part of the half year review. Since then there have been the following developments with a number of the company's investments:

New World Oil and Gas plc

On 22 September 2015, Paternoster acquired 366,618,383 shares in New World Oil and Gas plc at a price of 0.07 pence per share, for an aggregate consideration of £256,688. This represents a shareholding in the company of 8.0%.

New World's principal assets comprise the Blue Creek Project in Belize and around US$4.5 million (£2.9 million) of cash as at 28 August 2015, as a result of the placing and open offer that concluded in July 2015. This investment provides Paternoster with a significant interest in a listed company with a substantial cash balance at an attractive valuation. It has been proposed that your Chairman and Adam Reynolds join the company's board subject to shareholder approval at the company's AGM.

Metal Tiger plc

The company has now started to expand its interests materially in Thailand through its existing joint venture held with South East Asia Mining. The company is also currently engaged in advanced negotiations to acquire additional Thai precious and base metal interests.

The results of the drilling at its Lagrosan gold and tungsten project in Spain have outlined two potentially significant tungsten deposits. The findings to date are significant and could lead to a resource development project that may hold considerable commercial value.

The company has just acquired a strategic interest in prospecting licences situated along the Mahumo Structural Corridor, in the Kalahari Copper Belt in Botswana, in joint venture with ASX listed MOD Resources Limited, providing it with exposure to a valuable strategic holding in the highly prospective Kalahari copper belt. It has also secured an option to participate in a gold tailings production opportunity alongside Eurasia Mining plc under the new project collaboration agreement already in place between the companies.

The company has also just raised an additional £290,000 for working capital and investment purposes.

MX Oil plc

The company's investment in the Nigerian oil and gas asset, OML 113, continues to progress. The drilling of the first well in a two well first phase programme has now been completed and the rig has moved on to the second well.

In Mexico, the company has submitted its pre-qualification filing with the National Hydrocarbons Commission regarding its participation in the third phase of Bid Round 1, for mature onshore conventional fields. The company plans to bid for five concessions and it is expected that concessions will be awarded in December 2015.

Plutus PowerGen plc

Plutus PowerGen has been awarded further management contracts for the construction and operation of 20MW flexible stand-by electricity plants, by Portman Power Limited and Valence Power Limited being two major customers of Rockpool Investments LLP ("Rockpool"). Rockpool has invested £3.6 million of equity into each company, which brings the total invested by Rockpool's investors into companies to be managed by Plutus Powergen to £25 million. The company has also received a number of additional financing proposals at individual asset level, which it is currently in the process of evaluating.

Recently announced changes to EIS funding will mean that this source of funding can no longer be used to finance the company's projects going forward, however, there will be no impact to the company's seven existing projects. Furthermore, the company has been aware of this possibility for some time and so has already secured alternative sources of funding and is continuing to assess other funding proposals which are likely to lead to an increase in the company's equity participation in new sites.

The company has also received planning permission for a 20MW flexible stand-by power generation site in Crumlin, South Wales. Preparations for the civil construction phase of the project will now commence and it is expected that power generation will begin in 2016.

Northcote Energy plc

The company's drilling at Shoats Creek has yielded some encouraging results, with the successful drilling of the Lutcher Moore 20 well, the first of a multi-well programme planned for the field. This well produced 260 barrels of oil and 500 Mcf of natural gas per day (340 barrels of oil equivalent per day) during a 24-hour test. This exceeded pre-drill expectations and provides the company with immediate cash flows. It has also de-risked another three drilling locations on the field, increasing the defined new well inventory for Shoats Creek to 11, with potential to increase this further. In addition, the company has also recently increased its participation in this asset by acquiring an interest from its partner.

In Mexico, Northcote has now submitted its pre-qualification filing with the National Hydrocarbons Commission regarding its participation in the third phase of Bid Round 1, for mature onshore conventional fields. It has also assembled a multi-disciplinary bid team to evaluate the fields, headed by an experienced international oil and gas professional, Christopher Newport who, subject to a successful bid, will serve as President of Northcote's Mexican upstream oil and gas business.

Nicholas Lee, Chairman of Paternoster, commented:

"The value of a number to Paternoster's investments is increasing, and this is now starting to be reflected in the Company's share price which is now significantly above the level as at this period end, albeit still at a discount to the Company's underlying valuation. The recent investment in New World demonstrates that the Company can access and execute attractive investment opportunities that are capable of driving up shareholder value."

For more information please contact:

Paternoster Resources Plc:

Nicholas Lee, Chairman +44 (0) 20 7580 7576

Matt Lofgran +1 480 993-8933

Nominated Adviser and Joint Broker: +44 (0) 20 7601 6100

Westhouse Securities

Antonio Bossi/David Coaten

Joint Broker: +44 (0) 20 7562 3351

Peterhouse Capital Limited

Lucy Williams