SNRP.L Regulatory News (SNRP)

30 November 2012

STRATEGIC NATURAL RESOURCES PLC

("SNR" or the "Company")

Unaudited interim results for the six months ended

31 August 2012

Strategic Natural Resources Plc (AIM: SNRP), 74 per cent. owner of coal exploration and mining assets located near Indwe in the Eastern Cape province of South Africa, today announces its unaudited interim results for the six months ended 31 August 2012.

Highlights:

·; Increased SAMREC compliant resource base to 288.5million tonnes

·; Announced SAMVAL reserve statement with an independent company valuation of between £107m and £122m and 34.1mt of probable reserve (based on 6% of the area for which SNR holds mining and prospecting rights)

·; Appointed mining contractor in JV and exposed over 100,000 tonnes of coal in open cast development

·; Raised £8.7 million to commence mine development. Concluded access to up to £10 million pounds of additional funding to underpin delivery of production capacity growth targets, pending the securing of a long term debt facility

·; Secured a lease agreement with Thelo for 1,500 containers to transport coal to the port of East London

David Nel, Chief Executive Officer of SNR, said:

"We have achieved a number significant milestones in the last six months including contracting out the mining activities, sourcing plant and equipment to commence underground mining; raising finance to commence production; and completing our reserve statement attesting to the significant value potential of our mine.

"We remain confident that we will be able to commence the loading of our targeted first shipment before the year end and continue delivery in accordance with the terms of our secured offtake agreement with Trasteel, through 2013."

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

Chairman's Statement

I report an attributable loss of £760,000 for the period which compares favourably with an attributable loss of £913,000 for the six months ended 31 August 2011 and an attributable loss of £1,906,000 for the year ended 29 February 2012. These interim financial statements illustrate the large increase in capital investment in the coal mine and its associated equipment as we approach steady state production. Costs have been well controlled during the period despite the significant increase in activity and I believe we are well positioned as we approach our maiden revenues.

The period has thus been marked by consistent and accelerating progress on the construction and development of mine facilities at Indwe in the Eastern Cape and the preparation for underground mining activities as we approach the first shipment of 40,000 tons of beneficiated anthracite from East London towards the end of December this year. The sheer scale of achievement in transforming from essentially an exploration Company to a production Company within the last twelve months has been most impressive to witness and a large number of practical challenges have been met and overcome to keep the Company on track and on schedule of its stated goals. These include the opencast mining of c.100,000 tons of raw coal to create the mine site and the assembly, construction and commissioning of the coal washing plant on site. In addition, it has included the arrival of the underground mining equipment which will shortly be commissioned to begin sustainable production volumes (initially targeted at a rate of 800,000 tons per annum) and the design and construction of the tipping containers which we will be using for shipment by a combination of road and rail to East London. In addition, storage and loading facilities are available at the port and a workforce has been employed and the necessary maintenance, infrastructure and administrative facilities at the mine site have been installed.

In addition to raising £8.7 million in new equity capital from Richardsons Capital LLP in the period, we have also secured a bridge finance facility of up to £10 million from Land Consultants Limited. This is intended to meet limited short term requirements on an unsecured basis until long term facilities have been agreed with major banks and financing institutions, which have been partially dependant on the publication of our reserve statement. Whilst expensive, this is an extremely flexible facility and we intend to draw down the minimum amount as required to meet operational requirements. However, it provides assurance that progress will not be delayed due to lack of funding.

The reserve statement carried out by our independent advisors, Minxcon, was announced on 29 November 2012. In summary, the report highlights a best estimated value of £107 to £122 million for the 288.5Mt of SAMREC compliant resource base. This resource estimate is based on 6 per cent. of the area on which we hold mining and prospecting rights. The calculated probable reserves for mineable coal are 34.1Mt plus a 120,000 tonnes opencast reserve and these have been valued by Minxcon at £64 million.

These figures illustrate a compelling proposition highlighting the very substantial resource SNR is developing.

Following a competitive tender process, we have entered into a joint venture with Belton Mining Group (Pty) Ltd ("Belton"), for the management of all of the underground mining operations at Elitheni's mine. Under the joint venture, Elitheni Mining Services (EMS) is being incentivised to produce at a lower cost level than that contracted. Policies and procedures have been drawn up and agreed in order to provide a robust levels of health, safety and environmental management systems to which we are fully committed to exceed the minimum legal requirements. Even though there is necessarily considerable pressure on our people and contractors to keep to the demanding schedule for delivery of the initial volumes of washed coal, we recognise that in no circumstances can safety be compromised and our systems are designed to minimise risk in this all important area.

Progress continues to be made in the area of stakeholder management reflecting our excellent relations with the community in which we operate and the great importance we attach to this.

We have made considerable progress in completing construction of the Elitheni Children's Home of Hope and plan to have this completed before the end of this year, which will provide a home for orphans for the first time in the local area in which the mine is situated. A number of important projects are also underway to increase the involvement, employment and training for the local community.

None of this could have been achieved without the hard work of our management team and staff, led by our CEO David Nel. David has managed to achieve all the targets we have set for him at the same time as concentrating on ensuring the first shipment target is met in spite of difficulties encountered including the recent transport strike in South Africa which delayed the delivery of critical capital. Our two new Directors, Don Nicolson and Gabriel Ruhan, have also played an integral part in keeping progress on track. I am also pleased to note that, as announced on 26 October 2012, Mark Rosslee joined the Board of SNR as Finance Director, having managed the financial affairs of the Company with great competence since he was appointed Financial Director of Elitheni earlier this year.

Whilst the first shipment is important, we need to not only continue producing at a minimum rate to satisfy our monthly shipping schedule, but also to increase production rates to meet the target of doubling production volumes over the upcoming period, as we bring new facilities on stream. Once the initial shipment has proved that the systems in place are fully operational, we will be able to bring additional underground mining sections on stream. We will be looking to report strong production capabilities in a safe and cost effective manner allied to rigorous performance management with the preliminary results.

As the Company is transformed from an exploration business into a coal production business, we intend to change our financial reporting timetable by extending the current year end from the end of February to 30 June. This will allow us more time to more accurately reflect the economics of an operating coal production company in what will become the current financial year, which in turn will allow shareholders to assess our level of profitability at prevailing coal prices and cost levels at near steady state production. The change of year end will necessitate the production of a second set of interim figures for the six month period ending 28 February 2013 and the issue of Report and Accounts for the 16 month period ending 30 June 2013. A further announcement regarding the proposed change of year end, which will incorporate a revised reporting timetable, will be made upon the relevant filing with Companies House becoming effective.

As you will have gathered, the period has stimulated real change for SNR. I remain very confident that the upcoming period will allow me to report on our first regular revenues and keep you updated as we continue to develop operations at the Elitheni Mine. We will also be looking at ways to unlock what the Directors believe to be massive potential value in phase 5 of our prospecting rights.

R. H. R. Latham

Chairman

30 November 2012

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (unaudited)

For the half year ended 31 August 2012

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (unaudited)

As at 31 August 2012

Company registration number 5249946

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited)

For the half year ended 31 August 2012

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (unaudited)

For the half year ended 31 August 2011

NOTES TO THE INTERIM STATEMENT

For the half year ended 31 August 2011

1. Basis of preparation

These un-audited condensed consolidated interim financial statements do not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The comparative figures for the year ended 29 February 2012 were derived from the Statutory Accounts for that year and were approved on the 5 July 2012. The auditors' report on those accounts was unqualified and did not contain a statement under section 498 (2) - (3) of the Companies Act 2006. These accounts have been delivered to the Registrar of Companies in accordance with Section 441 of the Companies Act 2006. The financial information contained in this interim statement has been prepared in accordance with all relevant International Financial Reporting Standards ('IFRS') in force and is expected to apply to the Group's results for the year ending 28 February 2013 and on interpretations of those Standards released to date.

2. Accounting policies

These condensed consolidated interim financial statements have been prepared in accordance with the accounting policies set out in the Group's financial statements for the year ended 28 February 2012.

3. Loss per share

The basic and diluted loss per share has been calculated by dividing the result for the respective period attributable to shareholders by the weighted average number of shares in issue during the relevant period.

4. Reconciliation of profit before tax to cash generated from operations

5. Approval

The Board of directors approved this interim statement on 30 November 2012. This interim statement has not been audited.

Shareholders will be able to download a copy of the interim report from the Group's website www.snrplc.co.uk. Copies may also be obtained from the Company's registered office, Suite 4, Claridge House, 32 Davies Street, London WIK 4ND.