Operational update

Strategic Natural Resources PLC

("SNR" or the "Company")

Operational update

The board of SNR is pleased to announce the following operational update at its Elitheni Mine ("Elitheni") in the Eastern Cape of South Africa.

Various modifications have been made to the washing plant during January 2013 and the Company is pleased to report that the washing plant is now achieving its originally intended throughput rates. In due course, following further successful processing of coal, the Company will provide an update on the date for the first shipment of coal mined at Elitheni.

In addition, the Company has successfully completed the profitable delivery of traded coal for it's original December 2012/January 2013 cargo. The vessel sailed last week, having achieved all contracted specifications and being fully loaded.

David Nel, CEO of SNR, today said: " I am pleased that the wash plant is now achieving intended throughput rates and that over Christmas we were able, through our trading relationships in South Africa, to swiftly fulfil the coal cargo for our first vessel. With mining and processing of coal gaining momentum at Elitheni, I am looking forward to providing further operational updates in due course and to a successful 2013".