SNRP.L Regulatory News (SNRP)

Strategic Natural Resources Plc

("SNR" or the "Company")

Update re fundraising and creditors

SNR, the AIM quoted natural resources developer operating in South Africa, which owns 74 per cent. of Elitheni Coal (Pty) Limited ("Elitheni"), announces that the SNR board is in continuing talks with a potential strategic investor with a view to raising sufficient funds required to commence recapitalisation of the Company. The SNR board is currently evaluating a revised financing proposal involving the strategic investor referred to in the Company's announcement of 28th January 2014. The SNR board is also seeking proper evidence of funding from this investor which, if such evidence is forthcoming and the revised financing proposal is agreed, should allow receipt of funds over the course of this month. Should such evidence not be forthcoming and the revised financing proposal not be agreed, the SNR board is in discussions with alternative providers of finance, albeit such discussions are at a more preliminary stage.

There can however be no guarantee that these discussions will result in additional funding for the Company. Were the Company to be unsuccessful in securing any additional investment, the board of SNR will need to consider the Company's options for protecting the interests of creditors.

Whilst the majority of creditors have remained broadly supportive, the Company continues to receive pressure from certain of its and Elitheni's creditors. Elitheni has advised the SNR board that their rolling stock container provider, Thelo Rolling Stock Leasing (Pty) Limited ("Thelo") has commenced legal proceedings to repossess the containers that Elitheni currently rents from Thelo. Dialogue continues between Elitheni and Thelo and the SNR board remains hopeful that an appropriate commercial solution to this issue can be achieved.

Discussions are underway with the Company's principal lender, Land Consultants Limited ("LCL") concerning the potential deferral of the repayment of its loan (currently due on 30 June 2014) for a further six months and the possible conversion of interest due to LCL into new ordinary shares in SNR (subject to, inter alia, regulatory requirements).

Gabriel Ruhan, CEO of SNR said: "Whilst no guarantees can be given, we remain optimistic that a viable funding solution for SNR and Elitheni can be secured in the near term. The last six months have been challenging but we are grateful for the support that many of our creditors have shown us and we continue to work hard to put SNR back on a sound financial footing."

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