SNRP.L Regulatory News (SNRP)

Strategic Natural Resources Plc

("SNR" or the "Company")

Update on potential strategic investment

On 31 July 2013 SNR, the AIM listed natural resources developer operating in South Africa, announced that it had been progressing discussions with a number of potential strategic investors and had agreed a period of exclusivity with one such investor, a well known international coal trader. The period of exclusivity with this international coal trader has now lapsed and the Company is in discussions about a strategic investment with several other interested parties. The board of SNR (the "Board") remains confident that an appropriate deal to provide appropriate go forward funding for SNR will be achieved.

The Board remains in discussions with Land Consultants Limited ("LCL") regarding the repayment of the short term bridging loan provided by LCL to the Company (the "LCL Facility"). The LCL facility was recently extended to 30 September 2013 and LCL have indicated to the Board that they remain supportive of the Company while negotiations with potential strategic investors continue.

It continues to be the Board's intention that any investment in SNR would not trigger an offer under the Takeover Code or that any investment in the company's 74% owned subsidiary, Elitheni Coal (Pty) Limited ("Elitheni") would result in the Company's shareholding in Elitheni falling below 51.0%.

In the event that an investment is not forthcoming then the Board will have to renegotiate payment of the LCL facility and consider alternative ways of repaying LCL and financing the Company, including issues of equity or the taking on of additional debt. Whilst there can be no guarantee that such alternative funding will be available, the Board remains optimistic that current discussions with potential strategic investors will be successful.

Gabriel Ruhan, the CEO of SNR, today comments:

"It is the opinion of the SNR Board that the current share price is in no way representative of the significant value potential of the SNR business. The Board is optimistic that once appropriate funding is secured, regular coal shipments achieved and operational efficiency improves then the market will appreciate the value proposition and respond accordingly. International coal prices recovering from current bottom of the cycle conditions should provide further upside.

"SNR continues to offer significant value potential from its large resource base, strong infrastructure position with 2 potential dedicated export routes, access to a developing large domestic coal market (with pricing decoupled from the international coal price) and the very real possibility of a mine mouth power station being built

Finally the Elitheni mine is seen as one of the most important projects in the Eastern Cape of South Africa for job creation and revenue generation and enjoys very strong support at both provincial and national government level."

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