SNRP.L Regulatory News (SNRP)

17th May 2010

Strategic Natural Resources PLC

("SNR" or the "Company")

Trading update

Strategic Natural Resources plc (AIM:SNRP), the explorer and producer of coal assets in South Africa, provides the following update to its shareholders following completion of the recent £2.9 million fundraising.

Highlights:

·; SNR has commissioned Golder Associates to update the Competent Person's Report (CPR) with an additional 29 boreholes drilled, on its western area of its Phase 1&2 mining right, all yielding coal

·; SNR has acquired a 26% stake in a South African engineering firm, which will build burners to burn Eastern Cape anthracite

Update of the CPR and Export Feasibility Assessment Study ("EFA")

SNR has commissioned Golder Associates to update the CPR on the deposits in the western half of the Company's Phase 1&2 reserve. An additional 29 boreholes have been drilled and all have yielded coal. The updated CPR is expected to be released later this year.

In conjunction with the update to the CPR, SNR has commissioned an EFA comprising:

i) a detailed assessment of logistics and materials handling of all coal from mine mouth to vessel hold. This assessment will be undertaken by Ports of Africa (Pty) Ltd and is expected to be completed during the second half of this year; and

ii) bulk sampling and washing of coal from the eastern area of the Company's Phase 1&2 reserves, in order to assess washability curves as well as metallurgical properties of the coal.

Investment in engineering

SNR, in partnership with two other South African based companies, has recently established an engineering operation in South Africa to build burners to burn the Eastern Cape anthracite to be mined by SNR. SNR has acquired 26% of this venture on a par basis, through providing exclusivity to ACE for the manufacture of burners to burn the Elitheni Coal, no further financial commitments have been made. The Company's partners, Jeuelly 44 Trading CC (49% ownership) and Allied Coal Projects (Pty) Ltd (25% ownership) , share over 50 years experience in materials handling and boiler manufacturing in South Africa, servicing clients such as Transnet, SAB, Anglo and Lion Match.

Construction of the first prototype ACE Burner will be completed later this year. The construction of this ACE Burner follows the trials conducted earlier this year using Suxe burner technology to prove the effective combustion of Eastern Cape anthracite and has created an opportunity for the marketing of Eastern Cape anthracite for industrial steam production in South Africa. Subject to successful trials of the ACE Burner, SNR expects production of new burners to commence in late 2010, in order to supply initial contracts.

Commenting Richard Latham, Chairman of SNR, said: "The board is delighted with the progress being made by the Company in South Africa and we are progressing the targets we set ourselves at the time of our recent fundraising. We look forward to providing further updates in due course."

For further information, please contact:

Strategic Natural Resources plc

David Nel, Chief Executive Officer

+27 (0) 41 374 0842

Jeremy Metcalfe, Communications Director

+44 (0)7785 346 718

Nominated Adviser - Allenby Capital Limited

Nick Naylor / James Reeve

+44 (0) 20 3328 5656

Broker - SP Angel Corporate Finance Limited

Emin Eyi / Tercel Moore

+44 (0) 207 647 9646

Financial PR/IR - Blythe Weigh Communications

+44 (0) 207 138 3204

Ana Ribeiro / Tim Blythe / Matthew Neal

For further information about Strategic Natural Resources plc please visit

www.snrplc.co.uk