SNRP.L Regulatory News (SNRP)

7 March 2012

Strategic Natural Resources Plc

("SNR" or the "Company")

Strategic investment

- £8.17 million investment to take SNR into production and commence coal exports -

SNR, the AIM listed natural resources developer, operating in South Africa, is pleased to announce that it has entered into an agreement under which 51 million new ordinary shares of 1p each in the Company (the "New Ordinary Shares") will be subscribed for at a subscription price of 17p per share (the "Subscription"). The investor is Richardsons Capital LLP ("Richardsons Capital") although the New Ordinary Shares are being subscribed for by Spreadex Limited ("Spreadex") and will be registered in the name of TD Wealth Institutional (UK) Nominees Ltd. Spreadex have facilitated the structuring of this investment on behalf of Richardsons Capital through the use of a derivative contract. As part of the terms of the Subscription Richardsons Capital have the ability to appoint a director to the board of SNR, subject to agreement by the SNR board and further announcements will be made at the appropriate time. The subscription price represents a discount of approximately 3.5 per cent. from the Company's mid market closing price on 6 March 2012, being the date immediately prior to the release of this announcement.

The Subscription will inject £8.17 million of new equity capital (net of subscription expenses) into the Company and will allow SNR to accelerate development of its 74 per cent. owned Elitheni coal mine in the Eastern Cape of South Africa to production and enable the commencement of coal exports.

The New Ordinary Shares represent 29.98 per cent. of the Company's issued ordinary share capital immediately following the Subscription. Application has been made for the New Ordinary Shares to be admitted to AIM and it is expected that admission will become effective on 9 March 2012.

Following the issue and allotment of the New Ordinary Shares there will be 170,103,333 ordinary shares of 1p each in the company ("Ordinary Shares") in issue and therefore the total number of Ordinary Shares with voting rights will be 170,103,333.

The above figure may be used by SNR's shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Disclosure Rules and Transparency Rules of the UK Financial Services Authority.

David Nel, CEO of SNR, said:

"The finalisation of this negotiation is the culmination of many months of work identifying and negotiating with prospective investors to secure a strategic shareholder that the board of SNR believes will be the right financial partner for SNR. This investment of over £8 million is significant and takes the Company into production as well as facilitating a number of further financing options. Richardsons Capital is an esteemed and established business and has expressed its desire to support SNR's business growth in the longer term. We are delighted to have their interest and welcome their support.

The board will continue to update shareholders on future production and funding plans as they progress."

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

Further information about Richardsons Capital LLP can be found at www.richardsons.co.uk.