Acquisition of stake in Celadon Mining Ltd

31 March 2011

Acquisition of stake in Celadon Mining Ltd

Origo Partners plc ("Origo") is pleased to announce the acquisition of a 9.7 percent equity stake, in Celadon Mining Ltd ("Celadon"), a Chinese focused coal exploration and mining company, for a consideration of approximately £8.0 million.

Celadon, through its Chinese subsidiaries, owns four Chinese coal properties in the eastern sector of the Qitaihe coal-bearing basin in Heilongjiang Province, northeast China, which include one sizeable exploration concession (39km2) and three mining concessions. The total resource base of these concessions is estimated to be 260 million tonnes (according to Chinese classification) distributed over 25 coal seams discovered to date, comprising a mix of high ranked coal including PCI and meager coal. Based on previous and ongoing technical review work undertaken by international mining consultants, Origo estimates that a mineable resource in the region of 100 million tonnes could be achievable, but is not confirmed at this point.

Celadon produced small amounts of coal in 2010 and plans to expand production to over 1 million tonnes per annum over the next 3 years, which will be substantially funded by existing operational cashflow. For the year ended 31 December 2010, Celadon's unaudited revenue and profit after tax were approximately £2.4 million and £4.8 million respectively, with a non-recurrent gain of £5.9 million arising from the disposal of other mining rights during the year. Celadon's current cash balance is approximately £66.9 million.

The main project area is located within the Boli area of the Qitaihe basin (one of the largest anthracite bases in China), approximately 80km east-northeast of the city of Qitaihe. The transport system around the Boli coal mining area is well developed, and includes access to a provincial highway (at 13km distance) and a regional rail network (at 40km distance). The majority of the coke from the Qitaihe coal basin is transported to steel producers across northeast China by railway. Coking coal is also transported to the Russian port of Suifenhe and exported to Japan and Korea.

Upon completion of the transaction, Origo will hold a 9.7 percent equity interest in Celadon, representing the largest holding in the business, excluding that of the founding shareholder and his affiliated entities. Other shareholders in Celadon include regional and international institutional investors.

Origo acquired the stake in Celadon from various funds investment managed by GLG Partners LP. The directors of Origo consider, having consulted with Liberum Capital, its Nominated Adviser and Broker, that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned.

Commenting on the announcement, Chris Rynning, Chief Executive of Origo, said:

"We're delighted to have acquired a significant stake in a fast growing producer of high quality coal at an attractive valuation. Celadon Mining should become a significant producer of high grade coal within the next three years and is well positioned to supply growing Chinese demand for coal given the proximity of its concessions to existing infrastructure. We look forward to working with Celadon to deliver their ambitious growth programme over the next few years."

Notes to editors:

Origo Partners plc:

Origo is an AIM-listed private equity investor and strategic consultancy business which provides its shareholders with exposure to China-linked investment opportunities.

Origo has a significant portfolio of investments in a range of industrial sectors, including metals and mining, agriculture, renewable energy/clean tech and technology, telecom and media.

Origo invests directly in high growth Chinese companies as well as in companies based around the world with significant exposure to Chinese export markets.