SNRP.L Regulatory News (SNRP)

21 Dec 2007 07:00

Strategic Natural Resources PLC21 December 2007 Strategic Natural Resources PLC ("SNR" or the "Company"; Ticker: (SNRP) Increased Prospecting Rights ---------------------------- Strategic Natural Resources PLC is pleased to announce that the exclusive phasethree prospecting right, recently granted to its South African subsidiarycompany Elitheni Coal (Pty) Limited (''Elitheni''), by the South AfricanDepartment of Minerals and Energy (''DME''), has been executed, notarised andlodged for registration over an area totalling 27,913.4ha. This represents anincrease of 12,013ha over the original phase three area of 15,900ha, which was applied for and granted by the DME. The prospecting right will remain in force for five years and drillingoperations in this area will commence in January 2008. Further updates will beprovided following developments. Elitheni now have the exclusive prospecting rights to coal in the Eastern Capeof South Africa, for exploration and conversion to mining over an area of 37,197.04ha. This is an increase of 300% of the original prospecting rights area of 9,283.8ha that had been granted to Elitheni at the time of SNR's listing inAugust 2007. The new territory over which the group has exclusivity is expected to addconsiderably to the coal resource which will eventually be put into commercialproduction. The Board of SNR believes that it will allow a further futureexpansion of the 500 MW of mine mouth clean coal power development currentlyplanned for Indwe under SNR's agreements with IPSA Group PLC. Speaking today about the DME grant of new prospecting rights, Barry Nel,Commercial Director of SNR, said: "We recently announced that we had achieved aninterim 40 million tonnes of coal on our first 9,000ha prospecting area havingdrilled less than seven per cent. of that area. Now we nearly have an additional28,000 hectares on which to drill. I cannot tell you how excited I am and whatthis means for all the communities of the Eastern Cape, which for years havebeen held back by lack of a local energy resource." Jeremy Metcalfe, CEO of SNR said: "This increase in our land position and thesecuring of our BEE partners is a very major step for our company. SNR listed onAIM on the basis of approximately 9,200ha and now the total area is four timesthe original size. 2008 looks like being a very busy year." For further information contact: Jeremy P. MetcalfeChief ExecutiveStrategic Natural Resources PLCTel: +44(0)1303 874 798 Allan PiperFirst City Financial Public RelationsTel: +44 (0) 20 7242 2666 Rod Venables / Cecil JordaanHB CorporateTel: +44 (0) 20 7510 8600 This information is provided by RNS The company news service from the London Stock Exchange