Riverfort Regulatory News (RGO)

20 April 2016

PATERNOSTER RESOURCES PLC

"Paternoster" or the "Company"

Quarterly Update to 31 December 2015

Paternoster Resources plc, the investing company focused on the natural resources sector, is pleased to provide a quarterly update to 31 December 2015.

The key unaudited performance indicators are set out below.

Since the Company's last quarterly update, the Company's net asset value has remained broadly flat, principally as a result of a significant decrease in the Plutus PowerGen share price, an investment which represented a substantial percentage of the Company's portfolio, offset by some small gains within the rest of the portfolio and the new funds raised. This has resulted in a decrease in net asset value per share. However, since the 31 December 2015, certain of the Company's other investments have performed very strongly, the results of which will be included in the Company's next quarterly update.

Recent developments with a number of the Company's investments are described below:

New World Oil and Gas plc

Since the Company's investment in September 2015, Adam Reynolds and Nicholas Lee have become directors of the company. The board is currently in the process of making further reductions in the company's cost base and reviewing various investment opportunities.

Metal Tiger plc

The company has continued to make excellent progress with a number of its investments and, since 31 December 2015, the company's share price has increased very significantly. Since the year end, Paternoster has announced the sale of around 12 million shares in Metal Tiger plc ("Metal Tiger") at an average price of 4.1 pence per share for a total consideration of over £500,000 before expenses. This represents a 4.5 times return on Paternoster's investment in Metal Tiger. Paternoster continues to retain a significant holding of Metal Tiger shares which are currently trading at 4.82 pence.

MX Oil plc

The company's indirect investment in the Nigerian oil and gas licence, OML 113, including the Aje discovery, continues to progress with funding for its development to first oil having now been completed. Production is now imminent and the company has also agreed in principle, subject to certain conditions, to sell this asset for US$18 million which is significantly above the company's current market value.

In Mexico, the company has been successful in bidding for four onshore licences, and it is expected that definitive agreements in connection with these licences will be signed in May 2016. It then expects to assign three of these licences to its local partner, Geo Estratos, whilst retaining a 66% share in the fourth licence, subject to a satisfactory outcome from a Competent Person Report that is currently being prepared on this asset.

Plutus PowerGen plc

In October 2015, the company was awarded capacity mechanism contracts for three 20MW sites in the UK meaning that each site will receive £360K per annum for 15 years from 2019. The company has also been awarded two further management contracts for the construction and operation of 20MW of flexible stand-by electricity plants, by SelectGen Limited and Reliance Generation Limited being two major customers of Rockpool Investments LLP. This agreement brings the total number of management contracts granted to Plutus Powergen plc ("Plutus") to nine, equivalent to 180MW. Under these agreements, Plutus will be paid £150,000 per annum by each company for these services in addition to an equity stake of 45% in the capital of each company. The company has also signed a memorandum of understanding with UK based Green Biofuels Limited for the supply of its proprietary renewable fuel 'Green D+' for use across the company's power generation projects, enabling Plutus to become a low carbon renewable power generator.

On 1 December 2015, Paternoster announced the sale of 25 million shares in Plutus at a price of 1.1 pence per share for a total consideration of £275,000 before expenses. This represented a 4.4 times return on Paternoster's original investment made at the time when Paternoster was involved in the establishment of the precursor company to Plutus. The proceeds from just this sale alone exceed the cost of the Company's entire investment in Plutus. Paternoster continues to have a significant holding of 69.3 million shares in Plutus, equating to a shareholding of 12.1%, although 20 million shares are currently subject to an option in favour of certain members of the Plutus management team at a price of 0.75 pence per share. Plutus PowerGen shares are currently trading at 0.95 pence.

Northcote Energy plc

The Company received its shares in Northcote Energy plc ("Northcote") as result of the sale of the assets of North American Petroleum to Northcote. These shares have now been sold.

Alecto Minerals plc

Alecto, which is listed on AIM, is an Africa-focused exploration and development company involved in gold and base metals. In particular, it has gold and copper interests in four countries in Africa and six projects covering exploration to near term production.

On 24 November 2015, Paternoster acquired US$495,365 of convertible loan stock ("CULs") in Alecto Minerals plc ("Alecto") in exchange for the issue of 100,000,000 new ordinary shares in Paternoster. This was in connection with Alecto's acquisition of the Matala and Dunrobin gold mines. These mines are in Zambia and have, in aggregate, 760,000 oz Au JORC code compliant resource estimate in the Measured, Indicated and Inferred categories at an average grade of 2.3g/t Au. Over US$20 million has been invested to date in these mines, principally on drilling and test work. The company is making good progress on this asset and has recently secured vendor financing in order to progress its development.

After 31 December 2015, Paternoster decided to convert this loan note at a price of 0.08 pence per share leaving the Company with 434 million shares or around 12.1% of the company. These shares are currently trading at 0.12 pence per share.

On 24 November 2015, Paternoster raised gross proceeds of £300,000 through a placing of 150,000,000 new ordinary shares at a price of 0.2 pence per share to provide the Company with additional funds to develop further its portfolio of investments and enable the Company to pursue additional opportunities that it expects to arise.

Nicholas Lee, Chairman of Paternoster, commented:

"The value of Paternoster's portfolio is continuing to increase, particularly since the year end. I look forward to updating shareholders very shortly with regard to the Company's first quarter performance."

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

Stockdale Securities

Antonio Bossi/David Coaten

Joint Broker: +44 (0) 20 7562 3351

Peterhouse Capital Limited

Lucy Williams