Strategic Minerals Regulatory News (SML)

Strategic Minerals plc

("Strategic Minerals", "SML" or the "Company")

Interim results for the period ended 31 May 2011

Strategic Minerals Plc (AIM:SML) the iron ore and metals developer operating in Queensland, Australia today, announces its interim results for the period from incorporation on 16 November 2010 to 31 May 2011.

Chairman's Statement

Dear fellow shareholders,

It gives me pleasure to present the first interim report for your company since our admission to AIM and the placing of ordinary shares to raise £750,000.

We have used the net proceeds of that placing to continue our exploration at the Iron Glen property and as you will have seen from our announcements this has produced some encouraging results. In particular, I would draw your attention to the fact that the prospect is still "open" on all sides. This means that we still have not found the edges of the deposit and it is thus larger than we first anticipated. Also, you should note that we have continued our analysis of the polymetallic nature of the prospect which we identified at the end of the first phase of exploration.

In line with the acquisition programme, set out in our Admission document, on 19 August 2011, the company announced that it had entered into a heads of terms agreement with Ebony Iron Pty Ltd for the acquisition of its entire share capital. Ebony has prospective iron ore tenements in Australia but also has near term production prospects from tailings in New Mexico, USA. Further announcements on this will be made in due course.

The company incurred a loss for the financial period of £1,584k, which included exceptional costs of £922k relating to share based payments and £407k relating to AIM admission costs. The financial report includes comparative information on Iron Glen Holdings Limited, our principal subsidiary, for the period from 1 June 2010 to 30 November 2010.

On 30 June 2011 and 29 July 2011, Allenby Capital Limited exercised warrants to acquire in total 1,500,000 ordinary shares of 0.1p each in the Company for £75,000.

Thank you for your support in this early period and we look forward to an exciting future.

Steven Sanders

Chairman.

Strategic Minerals Plc

Consolidated Comprehensive Income Statement

For the period to 31 May 2011

Strategic Minerals Plc

Consolidated Statement of Financial Position as at 31 May 2011

Strategic Minerals Plc

Consolidated Statement of Cash Flows

For the period to 31 May 2011

Reconciliation of operating loss to net cash outflow from operating activities.

Strategic Minerals Plc

Consolidated statement of changes in equity

For period to 31 May 2011

Strategic Minerals Plc

Notes to the Interim Financial Information

1. General Information

Strategic Minerals Plc is a public limited company incorporated in England and Wales with company number 

7440902 and quoted on the AIM market of the London Stock Exchange Plc.

2. Basis of Preparation

This interim report, which incorporates the financial information of the Company has been prepared using the historical cost convention, on a going concern basis and in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union, using accounting policies which are consistent with those set out in the accountants report set out in the AIM admission document and the Iron Glen Holdings Limited financial statement for the period ended 30 November 2010. This interim financial information for the six months ended 31 May 2011, complies with IAS 34 'Interim Financial Reporting' and was approved by the Board on 30 August 2011.

Principles of Consolidation

The consolidated financial statements incorporate the assets and liabilities of the Group as at 30 November 2010 and the result of all entities for the period then ended. SM and Iron Glen Holdings Limited ("IGH") and its subsidiary together are referred to in this financial report as the Group.

Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date the control ceases.

All inter-group balances and transactions between entities in the Group, including any unrealised profits or losses, have been eliminated on consolidation. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with those adopted by the parent entity.

Group reorganisation

SM acquired its 100% interest in IGH by way of a share for share exchange. This is a business combination involving entities under common control and the consolidated financial statements are issued in the name of SM but they are a continuance of the IGH. Therefore the assets and liabilities of IGH have been recognised and measured in these consolidated financial statements at their pre combination carrying values. The retained earnings and other equity balances recognised in these consolidated financial statements are the retained earnings and other equity balances of SM and IGH. The equity structure appearing in these consolidated financial statements (the number and the type of equity instruments issued) reflect the equity structure of SM including equity instruments issued by the Company to effect the consolidation.

The difference between consideration given and net assets of IGH at the date of acquisition is included in other reserves. The comparatives included are for IGH prior to the group reorganisation.

Strategic Minerals Plc

Notes to the Interim Financial Information

2. Basis of preparation

Taxes

Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual earnings.

Standards and Interpretations adopted with no material effect on financial statements

The following new and revised Standards and Interpretations have been adopted in these financial statements. Their adoption has not had any significant impact on the amounts reported in these financial statements but may effect the accounting for future transactions and arrangements.

Title Issued Effective date

IFRIC 19 Extinguishing Financial Liabilities Nov 09 Accounting periods

With Equity Instruments beginning

on or after 01 July 2010

Standards and Interpretations issued but not effective on financial statements

The following new and revised Standards and Interpretations have not been adopted in these financial statements as they are not yet effective in the period being reported on.

Title Issued Effective date

IFRIC 14 (Amendment) Prepayments of a minimum Nov 09 Accounting periods

funding requirement beginning 

on or after 01 January 2011

Revised IAS 24 Related Party Disclosures Nov 09 Accounting periods

beginning

on or after 01 January 2011

IAS 32 (Amendment) Financial Instruments: Oct 09 Accounting periods

Presentation - Classification of Rights Issue 2010 beginning

on or after 01 February 2010

Standards and Interpretations issued but not yet EU approved

The following new and revised Standards and Interpretations have not been approved but may have on impact on future accounting.

Title Issued Effective date

IFRS 9 Financial Instruments Nov 09 Accounting periods

beginning On or after 01 January 2013

Strategic Minerals Plc

Notes to the Interim Financial Information

3. Segmental Analysis

The Group's primary reporting format is business segments and its secondary format is geographical segments. The Group currently only operates in a single business and geographical segment. Accordingly no segmental information for business segment or geographical segment is required.

4. Operating loss for the period is stated after charging / (crediting)

5. Remuneration of key management personnel

6. Loss per share

The loss per ordinary share is based on the Company's loss for the period of £1,584,000 (30 November 2010 -

£181,000) and a basic and diluted weighted average number of shares in issue of 164,358,168 (30 November

2010 - 219,156,498)

Strategic Minerals Plc

Notes to the Interim Financial Information

7. Called up Share Capital

The issued share capital as at 31 May 2011 was 281,380,539 Ordinary Shares of 0.1p each.

On 31 March 2011, the company granted to the persons listed below options to subscribe for ordinary shares,

exercisable at a subscription price per share at anytime in the period to 31 March 2014, except where stated.

8. Related-party transactions

Transactions between the Group and its subsidiaries, which are related parties, have been eliminated on

consolidation and are not disclosed in this note.

9. Events subsequent to 31 May 2011

On 8 June 2011, the Company announced the successful completion of a placing on AIM, raising £750,000 for the Company, before expenses. Pursuant to the Placing, the Company has issued 15 million ordinary shares at 5p each.

On 30 June 2011, Allenby Capital Limited exercised warrants to acquire 1,000,000 ordinary shares of 0.1p each in the Company. The exercise price was 5 pence per Warrant Share, raising a total of £50,000.

On 29 July 2011, Allenby Capital Limited exercised warrants to acquire 500,000 ordinaryshares of 0.1p each in 

the Company (the "Warrant Shares"). The exercise price was 5 pence per Warrant Share, raising a total of

£25,000 for the Company

10. The unaudited results for period ended 31 May 2011 do not constitute statutory accounts within the meaning of

Section 435 of the Companies Act 2006. The comparative figures for the period ended 30 November 2010 for

Iron Glen Holdings Limited extracted from the audited financial statements which contained an unqualified audit

report and did not contain statements under Sections 498 to 502 of the Companies Act 2006.

11. This interim financial statement will be, in accordance with Rule 26 of the AIM Rules for Companies, available

shortly on the Company's website at www.strategicminerals.co.uk.