SNRP.L Regulatory News (SNRP)

25 August 2011

Strategic Natural Resources PLC

("SNR" or the "Company")

Issue of Equity

The Board of Strategic Natural Resources plc (AIM:SNRP) is pleased to announce that the Company has completed the placing of 10.0 million new ordinary shares of 1p each (the "Placing Shares") at a price of 19 pence per share, raising £1,900,000 for the Company (the "Placing"). All of the Placing Shares have been subscribed for by Cooch 1095 Limited ("Cooch"). The Placing will be completed in two tranches, as follows:

·; £1.3m raised through the issue of 6,842,105 new ordinary shares in the Company (the "Tranche 1 Shares"). These sums have already been received by the Company; and

·; £600,000 to be raised through the issue of 3,157,895 new ordinary shares in the Company (the "Tranche 2 Shares"). These sums are expected to be received by the Company within 15 working days.

The Placing has been carried out at a 38 per cent. premium to the closing mid market price of the Company's shares of 13.75p on 24 August 2011 and the net proceeds of the Placing will be used by the Company to fund the further procurement of long lead capital items on which the Company has various holding deposits. The purchase of the capital equipment will further advance the Company's plans for the commencement of underground mining, which when coupled with the initial opencast production, the Directors believe will ensure the initial sufficient tonnages of mined product are available for supply to Trasteel in accordance with the off-take agreement announced on 4 April 2011. The first shipment of coal is due to be loaded by June 2012.

Application has been made for the Tranche 1 Shares to be admitted to trading on AIM and it is expected that dealings in the Tranche 1 Shares will commence on or around 31 August 2011. Application will be made for the Tranche 2 Shares to be admitted to trading on AIM following receipt of the subscription monies.

David Nel, CEO of SNR, commented: "We are very grateful for the continuing support of Cooch, demonstrated by the fact that this subscription is at a substantial premium to the current share price. The net proceeds of the Placing will ensure that we are able to procure long lead items that are required to enable the delivery of our first tonnes to Trasteel. The Company continues to develop its longer term financing strategy and, as reported in the Chairman's statement in the Company's annual report, we expect to be in a position to make an announcement updating shareholders on our financing plan in the near future. This interim placing of £1.9 million merely ensures that we will not lose momentum in terms of our commitments to Trasteel."

It is a condition of the Placing, that Cooch are entitled to appoint one representative to the Board of SNR, subject to the completion of satisfactory due diligence by SNR and a further announcement will be made in this regard at the appropriate time.

Following admission of both the Tranche 1 Shares and the Tranche 2 Shares to trading on AIM (together, "Admission"), Cooch will have a total beneficial interest in 25,000,000 ordinary shares in SNR, equivalent to 20.99 per cent. of the Company's enlarged issued share capital. The total enlarged issued share capital of SNR following Admission will be 119,103,333 ordinary shares of 1 pence each. This figure may be used by 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 and Transparency Rules.

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