SNRP.L Regulatory News (SNRP)

Strategic Natural Resources Plc

("SNR" or the "Company")

Financial and liquidation notice update

Further to the financial update announced by the Company on 2nd December 2013, SNR is today providing a further update.

Financial update

Elitheni Coal (Pty) Limited ("Elitheni"), SNR's 74% subsidiary, has informed SNR that it has recently received an unsecured loan of ZAR 15 million (approximately £875,000) from Andrew Ruhan (the "Ruhan Loan"). The Ruhan Loan will bear no interest and has no fixed repayment date. It is not convertible into shares in Elitheni or SNR and has no security over any of Elitheni or SNR's assets.

The Ruhan Loan will principally be used by Elitheni to repay all amounts advanced to it by Rapidtrade 644 (Pty) Limited ("Rapidtrade") pursuant to the advance by Rapidtrade announced on 6th November 2013, thereby releasing the security held by Rapidtrade over 10% of Elitheni's issued ordinary share capital. The boards of Elitheni and SNR would like to thank Rapidtrade for its assistance and support at this time. The balance of the Ruhan Loan will be applied by Elitheni to repaying the legitimate current creditors of Elitheni, including the legitimate claims of the creditors submitting the recent liquidation notice.

The Board of SNR also announces that it has been in discussions with Land Consultants Limited ("LCL") about the repayment of the existing short term bridging loan provided by LCL to the Company. Following these discussions, LCL has, subject to formal agreement, agreed that SNR can immediately draw down a further £500,000 under the existing bridging loan. In addition, LCL has indicated that it is prepared, subject to LCL receiving further security over SNR's assets (principally being SNR's 100% shareholding in Acharnian Mining Limited, which owns 74% of Elitheni and has circa £21.2 million of loans outstanding to Elitheni) to provide a guarantee on behalf of Elitheni to cover the cost of settling any additional creditor claims which are determined by the Court in South Africa to be legitimate. Further, LCL has indicated to SNR that it is prepared to extend the repayment of the bridging loan to 30th June 2014, although this also remains subject to amendment of the loan agreement.

The proceeds of LCL's bridging loan advance will be used to provide working capital to cover Elitheni and SNR's operating and other costs and will be added to SNR's loan to Elitheni (in respect of amounts advanced by SNR to Elitheni).

Update on the liquidation notice

On 29th November 2013, Elitheni received a liquidation notice (the "liquidation notice") in South Africa from a group of creditors. The liquidation notice is due to be heard on 10th December 2013 in South Africa.

Elitheni is working with its legal advisers in South Africa on a submission for the Court hearing of the liquidation notice. This submission will address what the Directors believe to be spurious and incorrect claims being made by certain parties in South Africa, including claims that Eltheni's mining licence is being transferred to a third party. The Board of Elitheni has no plans to make such a transfer.

Based upon the work done to date, the availability of funds to pay current legitimate creditors and discussion with providers of longer term finance, the Board of SNR is confident in its position as regards the liquidation notice and the efficacy of the Elitheni mine going forward.

Gabriel Ruhan, CEO of SNR, said "Despite the aggressive actions of some parties in South Africa in trying to prejudice the interests of Elitheni and destroy SNR's shareholders' value, we are confident in our position regarding the liquidation notice.

"The refinancing of the group's short term debt will allow the SNR and Elitheni boards to progress their ongoing discussions with strategic investors. In recent days additional credible parties have expressed an interest in investing in the Company and Elitheni."

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For further information about Strategic Natural Resources plc please visit www.snrplc.co.uk