News Column

Preliminary Results 2012

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LONDON, UNITED KINGDOM -- (Marketwire) -- 02/13/13 -- Anglo Pacific Group PLC ('Anglo Pacific', the 'Group') (LSE: APF)(TSX: APY) is pleased to announce preliminary results for the year ended December 31, 2012. This release together with the Chairman's Review and accompanying financial statements are available on both the Group's website at www.anglopacificgroup.com and on SEDAR at www.SEDAR.com.

-- Final dividend increased by 4.5% to 5.75p per share (2011: 5.50p). Total dividends for the year increased by 4.6% to 10.2p per share (2011: 9.75p)-- Royalty entitlements for the year of GBP 15.2 million (2011: GBP 35.0 million (restated))-- Operating profit of GBP 9.3 million (2011: GBP 31.8 million (restated))-- Queensland Government raises royalty rates by 25% to 12.5% above A$100 and 50% to 15% above A$150 sales price per tonne, which will directly benefit future sales from the Kestrel mine made on or after October 1, 2012-- Total assets of GBP 353 million at December 31, 2012 (2011: GBP 371 million (restated))-- Continued growth of the Group's royalty portfolio during the year with the acquisition of two new royalty interests in iron ore and uranium and the recently announced gold royalty financing agreement with Hummingbird Resources Plc-- Strong balance sheet at December 31, 2012 with a cash position of GBP 24.0 million (2011: GBP 32.2 million)-- El Valle-Boinas/Carles, gold and copper mine in Spain, building up to full production in 2013-- Production at Kestrel expected to recover in 2013



Brian Wides, Acting Chairman of Anglo Pacific, commented:

"Despite production problems and delays at Kestrel during 2012, the Group achieved a solid performance over the year when the world economy stalled and commodity prices were weak. The increase in the independent valuation of our coking coal royalties illustrates that the rise in the Queensland coal royalty rates announced in September 2012 has more than offset any impact of weaker commodity prices.

"During the year, we acquired two new royalty interests and announced a gold royalty financing agreement with Hummingbird Resources Plc in the final quarter. The Group now owns a total of 22 royalty interests.

"We have been particularly encouraged by the progress across a number of the Group's development royalties, which we believe will bring forward future royalty cash flows. The Group's balance sheet remains ungeared with a strong and resilient asset backing.

"The Board is therefore pleased to propose a 4.5% increase in the final dividend and remains committed to offering long term returns to our shareholders."

Results Presentation and Audio Webcast:

An analyst presentation on the Group's preliminary results will take place at 9.30am February 13, 2013, at Pelham Bell Pottinger, 330 High Holborn, London, WC1V 7QD. In addition, there will be an audio webcast available on the Group's website, at www.anglopacificgroup.com, with a replay available shortly afterwards.

Notes to editors:

Anglo Pacific Group PLC is a global natural resources royalties company. Anglo Pacific's strategy is to expand its mineral royalty interests in long-life mining assets. Anglo Pacific achieves this through both direct acquisition of existing royalties and the creation of new royalty agreements. It is a continuing policy of Anglo Pacific to pay a substantial proportion of these royalties to shareholders as dividends.

Royalties explained:

A royalty is an entitlement to an agreed percentage of a project's sales revenue, without any liability for production costs or capital expenditure. This is the key benefit of owning a royalty.

In the mining industry, most royalties endure for the life of the resource and are paid on a regular basis. Historically there have been different terms for royalties including Gross Revenue or Net Smelter Return ("GRR" or "NSR") royalties, which are both based on the sales value of the actual mineral. Our model is based around GRR or NSR royalties as we believe they provide the best and clearest returns.

Acquiring existing royalties

In this case we buy existing royalty agreements, such as those owned by exploration companies who may have retained a residual royalty in a mine they helped discover. Royalty companies rarely sell their royalties, once acquired.

Creating new royalties

Our new royalty agreements tend to come from providing financing for mining operations, usually to help progress a mine into production.

Chairman's Review

2012 was an exceptionally difficult year for the financial world in general and the mining industry in particular. China was seen to be growing at a slower pace than anticipated and Europe's continuing debt crisis appeared overwhelming. The uncertainty over the US election and regime change in China together with the fiscal cliff stalemate in the USA further reduced international business confidence. These factors severely impacted commodity prices throughout the year. In particular steel oversupply and destocking in China had a severe effect on iron ore and coking coal prices, the latter falling by some 50%.

Royalties from the Kestrel coking coal mine in Australia were also impacted early in the year by a number of special factors including disruption of production due to a longwall changeover as well as adverse weather conditions. In the last quarter, production was also affected by commissioning delays of the new coal processing plant.

Elsewhere, the Amapa iron ore mine in Brazil produced a steady flow of royalties albeit at lower prices whilst the Group received its first full year of royalties from the El Valle-Boinas/Carles gold mine in Spain at buoyant gold prices.

During the year there was a further decline in the junior mining sector due to reduced commodity prices, the scarcity of financing for new mining projects and the impact of severe cost and capital expenditure inflation across the mining industry. This produced opportunities for the acquisition of new royalties, enabling the Group to further diversify its royalty portfolio with three new projects in gold, uranium and iron ore.

Despite weaker mining markets the Group continued to realise gains from its strategic mining interests. The Group's balance sheet remained ungeared with a resilient asset backing. The Group offers a stable hedge against weaker currencies as well as against inflation due to its royalty income being directly linked to the sales prices of the commodities it finances.

The Group's strategy remains focused on acquiring new royalties by providing mining finance and through its associated strategic mining investments. The Group is fully committed to generating consistent cash flows and dividends for shareholders.

Outlook

The outlook for the world economy appears to have improved since the year end with an increase in Chinese output and infrastructure spending and continuing signs of recovery in the US economy. Japan, India and South Korea appear similarly committed to a growth strategy. This confidence has produced better mining markets and a more optimistic outlook for metal prices and in particular iron ore.

As Rio Tinto continue to progress with the Kestrel expansion project, we remain confident of a recovery in production from Kestrel in 2013. This together with, the substantial increase in royalty rates announced by the Queensland Government in September last year from 10% to 12.5% above A$100 and 10% to 15% for coal prices realised above A$150 dollars per tonne should impact positively on royalty receipts from Kestrel in 2013.

The progress made during the year at a number of the Group's development royalties has been positive and should bring forward future royalty cash flows. The Group's revenue is directly linked to the top line of its royalty mining operations, whilst avoiding exposure to the current inflationary escalation in mining costs. The Group itself has no operating mines of its own.

The Group will continue to make the acquisition of new royalties its principal strategic focus, as it maintains its belief that the long term urbanisation of the developing world should still drive demand for those commodities covered by its royalties.

Royalty review

Producing royalties

Kestrel Coking Coal, Queensland, Australia

In Australia, coking coal receipts from the Kestrel mine operated by Rio Tinto Limited were GBP 10.9 million (2011: GBP 26.1 million (restated)) on approximately 2.7million tonnes of hard coking and thermal coal (2011: 3.8 million tonnes). Royalty income was impacted in the first half of 2012 by a longwall changeover and lower productivity during the ramp up and in the second half of 2012 by a major coal preparation plant shutdown as part of Kestrel's mine expansion project. Benchmark hard coking coal quarterly contract prices fell from $235 fob in Q1 2012 to $170 fob in Q4 2012.

During the second quarter of 2012 the Group was informed by Rio Tinto that an audit by the Queensland Office of State Revenue had identified a misallocation of royalty revenue relating to areas reserved by the State of Queensland for roads. This resulted in an overpayment of royalties to the Group of GBP 4.6 million (A$7.1 million) for the period September 2006 to December 2011, together with an associated interest charge of GBP 1.4 million (A$2.2 million). The misallocation of royalty revenues and associated interest charge has been reflected in the restated balance sheet at December 31, 2011, the impact of which is described in note 1.

In the 2012-2013 Queensland State Budget, the Queensland Government announced an increase in the royalty rates for coal sold, disposed of or used on or after October 1, 2012, which will also apply to the Group's Kestrel royalty. The effective royalty rate for a particular period depends on the average price per tonne of coal for the return period and is calculated on a tiered system. Where the average price per tonne is over A$100 and up to and including A$150, the royalty rate has risen from 10% to 12.5%, with an additional band of 15% where the average price is over A$150 per tonne. The first A$100 will continue to attract a royalty rate of 7%.

2013 will see the benefit of the increased royalty rates being applied to Kestrel sales.

Amapa Iron Ore, Brazil (1% GRR)

In Brazil, royalty receipts from the Anglo American Plc operated Amapa Iron Ore System ("Amapa") were GBP 2.2 million (2011: GBP 2.7 million) from circa 5.2 million tonnes of pellet and sinter feed sales. On January 4, 2013 Zamin Ferrous announced they had signed a binding agreement for the purchase of Amapa from Anglo American Plc (70%) and Cliffs Natural Resources Inc. (30%).

El Valle-Boinas/Carles Gold and Copper, Spain (2.5% NSR rising to 3% above $1,100 per ounce)

In Spain, receipts related to the royalty on the El Valle-Boinas/Carles ("EVBC") mine operated by Orvana Minerals Corp ("Orvana") were GBP 1.9 million (2011: GBP 0.3 million). The mine continues to build up to full production with a new 420 metre deep shaft commissioned during 2012. On January 4, 2013 Orvana announced a fiscal 2013 (year-end September, 2013) projected production for EVBC of 63,000 ounces of gold, 200,000 ounces of silver and 6 million pounds of copper.

Development royalties

The Group has a significant portfolio of pre-production royalties. During the year there were several positive announcements which encourage the Directors to believe that there is considerable upside to be unlocked.

Four Mile Uranium, South Australia (1% NSR)

On October 24, 2012, Alliance Resources Ltd announced the Four Mile Project start-up with in-situ recovery (ISR) mining operations commencing at Four Mile East in Q2 2013 and at Four Mile West in Q4 2013. Production guidance for 2013 and Q1 2014 is 2.128Mlb of uranium oxide and sales of 1.306Mlb with first sales expected in Q3 2013. For additional information please see www.allianceresources.com.au.

Ring of Fire Chromite, Canada (1% NSR)

On May 20, 2012, Cliffs Natural Resources Inc. announced that the Ring of Fire project would be advanced to the feasibility stage. The project is expected to produce up to 2.3 million tonnes of chromite concentrate per annum and is scheduled to start production in 2016. Additional information can be found at www.cliffsnaturalresources.com.

Jogjakarta Iron Project, Indonesia (Variable NSR)

Indo Mines Ltd ("Indo") announced on October 25, 2012 that the Indonesian Ministry of Energy and Mineral Resources issued a decree confirming approval of the application for the commencement of the construction phase of the Jogjakarta Iron Project within the Contract of Works area. Indo had previously announced the AMDAL Environmental Impact Assessment approval on February 1, 2012. The project will follow a staged implementation to achieve 2 million tonnes of iron concentrate production per annum before moving downstream into the manufacture of pig iron. Anglo Pacific holds a 2% NSR royalty which changes to a 1% NSR royalty once the principal is paid and the pig iron price is greater than $700 per tonne or remains at 2% if the pig iron price is less than $700 per tonne. For further information please see www.indomines.com.au.

Isua Iron Ore, Greenland (1% NSR)

On January 24, 2013, London Mining Plc announced that they had completed the Department of Minerals and Petroleum's permitting process requirements for the proposed 15 million tonnes per year Isua iron ore project in Greenland. London Mining Plc also announced they expected all required approvals to be completed in 2013. For further information on the project please see www.londonmining.co.uk.

Tucano Iron Ore, Brazil (1% GRR)

On January 24, 2013, Beadell Resources Ltd ("Beadell") announced that the magnetic separation plant is due to produce first concentrate in April 2013. Beadell previously announced on August 24, 2012 an "Iron Ore Concentrate Off-take Agreement" with Anglo Ferrous Amapa Mineracao Ltda with an indicated production level of 500,000 tonnes per annum of approx. 65% Fe concentrate. For further information please see www.beadellresources.com.au.

Araguaia Nickel, Brazil (Variable NSR)

Horizonte Minerals Plc ("Horizonte") announced on the August 22, 2012 that its NI 43-101 compliant Preliminary Economic Assessment ("PEA") showed strong economics based on a low strip ratio, excellent infrastructure, large mineral resource with two viable alternatives for processing. The PEA recommended moving to pre-feasibility which Horizonte expected to begin in Q4 2012. Anglo Pacific holds an option on a sliding scale 1.1% to 1.5% NSR royalty to be exercised for US$12.5million by the earlier of 120 days from the completion of a pre-feasibility study or January 10, 2017. Further information can be found at www.horizonteminerals.com and www.sedar.com.

In addition, the Group completed the previously announced Mount Ida royalty agreement and acquired an option on a uranium project in the United States.

The Group announced in December the signing of a royalty financing agreement with Hummingbird Resources Plc to acquire a 2% NSR royalty on its Dugbe 1 gold project in Liberia.

Together with other development royalties, these latest acquisitions further strengthen the Group's royalty portfolio and should deliver future value and growth.

Review of results

Income statement

---------------------------------------------- RestatedRoyalty entitlements GBP '000 2012 2011----------------------------------------------Kestrel 10,921 26,083Crinum 117 5,902Amapa 2,229 2,694----------------------------------------------Royalty income 13,267 34,679----------------------------------------------El Valle-Boinas/Carles (i) 1,890 275----------------------------------------------Royalty entitlements 15,157 34,954----------------------------------------------(i) El Valle-Boinas/Carles is a debenture instrument whereby initial royaltyreceipts are repayments of principal and therefore do not appear as royaltyincome in the income statement.



Royalty income was GBP 13.3 million for the year ended December 31, 2012, down from GBP 34.7 million in 2011. The 2011 numbers have been restated as a result of the previously announced misallocation of royalty revenue at the Group's Kestrel royalty which came to light after an audit by the Queensland Office of State Revenue. This restatement is discussed further in note one, but resulted in a reduction in the reported Kestrel income in 2011 of GBP 0.4 million.

As discussed in the royalty review, there were several adverse production occurrences at Kestrel in the year, resulting in unusually low levels of income. Overall income has also been adversely impacted by continued downward pressure on the coking coal price throughout 2012. Production at Crinum had largely left the Group's private royalty ground in the first half of 2011, and no future royalty receipts are now expected. El Valle-Boinas/Carles continued its ramp up to full production in the year, though as this royalty was structured as a debenture originally, royalty receipts are treated as repayments of principal, until such time as the outstanding balance has been repaid. From 2013 onwards, these royalty receipts will be included in the income statement.

Operating expenses increased by GBP 0.2 million in the year, largely as a result of an increase in professional fees associated with managing our existing royalty portfolio and exploring new royalty opportunities. This increase in professional fees was offset somewhat by the decision not to award the Executive Directors an annual bonus this year.

A reduction in finance income of GBP 0.8 million in the year, largely as a result of the cessation of interest bearing royalty instruments, along with no change in the amortisation of the Amapa royalty, resulted in an operating profit of GBP 9.3 million in the year, compared to GBP 31.8 million in 2011 (restated).

In spite of very difficult equity markets, the Group realised gains of GBP 7.3 million (2011: GBP 20.3 million) from its mining and exploration interests in the year. The Group continued its strategy of taking equity stakes in strategic opportunities with the prospect of potential royalties. Where royalties cease to be a financing option, the Group will seek to dispose of the particular equity investment in a manner that is profitable to the Group, while minimising disruption to the investee company. The reduction in gains compared to those achieved in 2011 largely reflects the difficulties in the junior mining equity markets over the last year.

Other losses of GBP 4.2 million reflect write downs in the mining and exploration interests of GBP 3.7 million which the Directors consider to be impaired. Further information can be found in note 3. The losses of GBP 4.3 million in 2011 largely represented provisions in respect to amounts receivable from royalty instruments, though GBP 0.8 million of this was recovered in 2011. Other income represents returns from the Groups mining and exploration interests.

Overall this resulted in profit before tax for the year of GBP 14.2 million compared to GBP 48.5 million (restated) reported in 2011. Allowing for a tax charge of GBP 4.2 million (2011: GBP 12.2 million (restated)), profit after tax was GBP 10.0 million (2011: GBP 36.3 million (restated)) which translates to an earnings per share of 9.27p (2011: 33.51p (restated)).

Balance sheet

----------------------------------------------------------------- RestatedAsset summary GBP '000 2012 2011-----------------------------------------------------------------Coal royalties (Kestrel and Crinum)(i) 170,995 165,967Royalty instruments(ii) 24,032 24,736Intangibles - royalties(iii) 70,477 68,334-----------------------------------------------------------------Total royalty assets 265,504 259,037-----------------------------------------------------------------Mining and exploration interests 55,793 64,551Cash 24,036 32,197Other intangibles (deferred exploration costs) 931 804Other 7,204 14,450-----------------------------------------------------------------Total assets 353,468 371,039-----------------------------------------------------------------(i) Coal royalties relate to the Group's entitlement to royalties from theKestrel and Crinum mines. As the Group owns the physical right to theminerals in its coal royalties, its royalty entitlement is treated asproperty, plant and equipment, as such it is carried at fair value ascalculated by an independent consultant.(ii) Royalty instruments represent the Group's royalties which arestructured as debentures. As these are financial assets they are carried attheir fair value on the balance sheet.(iii) Intangibles - royalties are carried at amortised cost. Though theexpected future cash flows from these royalties may enhance significantlypost investment, accounting rules prevent the Group from reflecting this onthe balance sheet.



The Group's royalty assets maintained their value in spite of a difficult year for the mining and commodity sector. The Kestrel royalty increased in value by GBP 5.0 million. This was largely as a result of the increase to the Queensland royalty rate announced in September. The decrease in production has also had a positive impact, as resource depletion was lower in 2012, which should result in future sales at both higher prices and higher royalty rates.

The Directors, as part of the annual impairment review, conducted a discounted cash flow valuation of the Group's other royalties. As royalty investments are usually made at an early stage of a project, changes in the projects' development between the point of investing and the commencement of production can significantly impact on the expected cash flows the Group could receive. If forecast commodity prices and production schedules used by the Directors transpire, the Group could achieve additional cash flows of GBP 60.6 million (2011: GBP 52.2 million), on a discounted basis, above the initial investment. This amount is not reflected on the balance sheet.

The Group ended the year in a strong position, with GBP 24.0 million in cash along with further potential liquidity in its mining and exploration portfolio.

Allowing for the provision for deferred tax of GBP 48.5 million, mainly relating to the valuation of royalties and debentures, the Group had net assets for the year ended 31 December 2012 of GBP 301.0 million. This is down slightly on GBP 306.2 million at the end of 2011 (restated).

Finally, I would like to thank my Board colleagues and staff for their application and hard work in what has been a challenging year for the Group.

B.M. Wides, Acting Chairman

February 13, 2013

Cautionary statement on forward-looking statements and related information

Certain information contained in this press release, including any information as to future financial or operating performance and other statements that express management's expectation or estimates of future performance, constitute "forward-looking statements". The words "expects", "anticipates", "plans", "believes", "estimates", "seeks", "intends", "targets", "projects", "forecasts", or negative versions thereof and other similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Further, forward-looking statements are not guarantees of future performance and involve risks and uncertainties which could cause actual results to differ materially from those anticipated, estimated or intended in the forward-looking statements. The material assumptions and risks relevant to the forward-looking statements in this press release include, but are not limited to: stability of the global economy; stability of local government and legislative background; continuing of ongoing operations of the properties underlying the Group's portfolio of royalties in a manner consistent with past practice; accuracy of public statements and disclosures (including feasibility studies and estimates of reserve, resource, production, grades, mine life, and cash cost) made by the owners or operators of such underlying properties; no material adverse change in the price of the commodities underlying the Group's portfolio of royalties and investments; no material adverse change in foreign exchange exposure; no adverse development in respect of any significant property in which the Group holds a royalty or other interest, including but not limited to unusual or unexpected geological formations and natural disasters; successful completion of new development projects; planned expansions or additional projects being within the timelines anticipated and at anticipated production levels; and maintenance of mining title. If any such risks actually occur, they could materially adversely affect the Group's business, financial condition or results of operations. For additional information with respect to such risks and uncertainties, please refer to the "Risk Factors" section of our most recent Annual Information Form available on www.sedar.com and the Group's website www.anglopacificgroup.com.

Readers are cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements. The forward-looking statements contained in this press release are made as of the date of this press release only and the Group undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

Anglo Pacific Group PLC Preliminary Results 2012 CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2012 Restated 2012 2011 GBP '000 GBP '000Royalty income 13,267 34,679Finance income 676 1,507Amortisation of royalties (1,018) (1,018)Operating expenses (3,633) (3,393) ----------- -----------Operating profit 9,292 31,775Gain on sale of mining and exploration interests 7,347 20,303Other income 1,746 634Other losses (4,165) (4,261) ----------- -----------Profit before tax 14,220 48,451Income tax expense (4,163) (12,171) ----------- -----------Profit attributable to equity holders 10,057 36,280 ----------- ----------- ----------- -----------Total and continuing earnings per shareBasic earnings per share 9.27p 33.51pDiluted earnings per share 9.27p 33.51p Anglo Pacific Group PLC Preliminary Results 2012 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2012 Restated 2012 2011 GBP '000 GBP '000Profit for the year 10,057 36,280Other comprehensive incomeNet gain/(loss) on revaluation of coal royalties 9,339 (4,139)Net (loss) on revaluation of available for sale investments (10,308) (51,669)Net exchange (loss)/gain on translation of foreign operations (4,482) 2,150Deferred tax 3,927 5,933 ----------- -----------Net income/(expense) recognised directly in equity 8,533 (11,445) ----------- -----------Transferred from income statement: disposal of available for sale investments (4,666) (10,090) ----------- -----------Total transferred from equity (4,666) (10,090) ----------- -----------Total comprehensive income/(expense) for the year 3,867 (21,535) ----------- ----------- ----------- ----------- Anglo Pacific Group PLC Preliminary Results 2012 CONSOLIDATED BALANCE SHEET AS AT DECEMBER 31, 2012 Group Restated Restated 2012 2011 2010 GBP '000 GBP '000 GBP '000Non-current assetsProperty, plant and equipment 2,105 2,152 2,144Coal royalties 170,995 165,967 169,304Royalty instruments 24,032 24,736 28,061Intangibles 71,408 69,138 42,741Mining and exploration interests 55,793 64,551 128,479Other receivables 3,141 - - ----------- ----------- ----------- 327,474 326,544 370,729Current assetsTrade and other receivables 1,958 12,298 8,813Cash and cash equivalents 24,036 32,197 28,258 ----------- ----------- ----------- 25,994 44,495 37,071 ----------- ----------- -----------Total assets 353,468 371,039 407,800 ----------- ----------- ----------- ----------- ----------- -----------Non-current liabilitiesDeferred tax 48,532 54,240 59,824 ----------- ----------- ----------- 48,532 54,240 59,824Current liabilitiesIncome tax liabilities 1,801 3,731 4,987Trade and other payables 2,171 6,896 6,470 ----------- ----------- ----------- 3,972 10,627 11,457 ----------- ----------- -----------Total liabilities 52,504 64,867 71,281 ----------- ----------- -----------Capital and reserves attributable to shareholdersShare capital 2,192 2,184 2,175Share premium 26,853 25,539 24,207Coal royalty revaluation reserve 86,721 80,285 83,405Investment revaluation reserve (14,204) (4,843) 51,780Share based payment reserve 354 177 65Foreign currency translation reserve 38,349 41,614 39,686Special reserve 632 632 632Investment in own shares (2,601) (2,601) (1,295)Retained earnings 162,668 163,185 135,864 ----------- ----------- -----------Total equity 300,964 306,172 336,519 ----------- ----------- -----------Total equity and liabilities 353,468 371,039 407,800 ----------- ----------- ----------- ----------- ----------- ----------- Anglo Pacific Group PLC Preliminary Results 2012 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE TWO YEARS ENDED DECEMBER 31, 2012 Coal Share Share royalty Investment capital premium revaluation revaluation GBP GBP reserve reserve '000 '000 GBP '000 GBP '000----------------------------------------------------------------------------Balance at January 1, 2011 (as previously reported - note 1) 2,175 24,207 88,883 51,780Impact of restatement - - (5,478) - -----------------------------------------Balance at January 1, 2011 (as restated - note 1) 2,175 24,207 83,405 51,780Profit for the year (restated) - - - -Other comprehensive income:Coal royalties: Royalties valuation movement taken to equity (restated) - - (4,139) - Deferred tax on valuation (restated) - - 1,019 -Available-for-sale investments: Valuation movement taken to equity - - - (51,669) Deferred tax on valuation - - - 5,136 Transferred to income statement on disposal - - - (10,090)Foreign currency translation - - - - -----------------------------------------Total comprehensive expense - - (3,120) (56,623) -----------------------------------------Dividends - - - -Issue of share capital under share-based payment 9 1,332 - - -----------------------------------------Total transactions with owners of the company 9 1,332 - - -----------------------------------------Balance at December 31, 2011 (restated) 2,184 25,539 80,285 (4,843) ----------------------------------------- ----------------------------------------- Share based Foreign payment currency Investment reserve translation Special in GBP reserve reserve own shares '000 GBP '000 GBP '000 GBP '000----------------------------------------------------------------------------Balance at January 1, 2011 (as previously reported - note 1) 65 39,686 632 (1,295)Impact of restatement - - - - ------------------------------------------Balance at January 1, 2011 (as restated - note 1) 65 39,686 632 (1,295)Profit for the year (restated) - - - -Other comprehensive income:Coal royalties: Royalties valuation movement taken to equity (restated) - 802 - - Deferred tax on valuation (restated) - (235) - -Available-for-sale investments: Valuation movement taken to equity - (237) - - Deferred tax on valuation - 13 - - Transferred to income statement on disposal - - - -Foreign currency translation - 1,585 - - ------------------------------------------Total comprehensive expense - 1,928 - - ------------------------------------------Dividends - - - -Issue of share capital under share-based payment 112 - - (1,306) ------------------------------------------Total transactions with owners of the company 112 - - (1,306) ------------------------------------------Balance at December 31, 2011 (restated) 177 41,614 632 (2,601) ------------------------------------------ ------------------------------------------ Retained Total earnings equity GBP '000 GBP '000--------------------------------------------------------Balance at January 1, 2011 (as previously reported - note 1) 139,755 345,888Impact of restatement (3,891) (9,369) ----------------------Balance at January 1, 2011 (as restated - note 1) 135,864 336,519Profit for the year (restated) 36,280 36,280Other comprehensive income:Coal royalties: Royalties valuation movement taken to equity (restated) - (3,337) Deferred tax on valuation (restated) - 784Available-for-sale investments: Valuation movement taken to equity - (51,906) Deferred tax on valuation - 5,149 Transferred to income statement on disposal - (10,090)Foreign currency translation - 1,585 ----------------------Total comprehensive expense 36,280 (21,535) ----------------------Dividends (8,978) (8,978)Issue of share capital under share-based payment 19 166 ----------------------Total transactions with owners of the company (8,959) (8,812) ----------------------Balance at December 31, 2011 (restated) 163,185 306,172 ---------------------- ---------------------- Anglo Pacific Group PLC Preliminary Results 2012 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE TWO YEARS ENDED DECEMBER 31, 2012 Coal Share Share royalty Investment capital premium revaluation revaluation GBP GBP reserve reserve '000 '000 GBP '000 GBP '000----------------------------------------------------------------------------Balance at January 1, 2012 (restated) 2,184 25,539 80,285 (4,843)Profit for the year - - - -Other comprehensive income:Coal royalties: Royalties valuation movement taken to equity - - 9,339 - Deferred tax on valuation - - (2,903) -Available-for-sale investments: Valuation movement taken to equity - - - (10,308) Deferred tax on valuation - - - 5,613 Transferred to income statement on disposal - - - (4,666)Foreign currency translation - - - - -----------------------------------------Total comprehensive income - - 6,436 (9,361) -----------------------------------------Dividends - - - -Issue of ordinary shares 8 1,314 - -Value of employee services - - - - -----------------------------------------Total transactions with owners of the company 8 1,314 - - -----------------------------------------Balance at December 31, 2012 2,192 26,853 86,721 (14,204) ----------------------------------------- ----------------------------------------- Share based Foreign payment currency Investment reserve translation Special in GBP reserve reserve own shares '000 GBP '000 GBP '000 GBP '000----------------------------------------------------------------------------Balance at January 1, 2012 (restated) 177 41,614 632 (2,601)Profit for the year - - - -Other comprehensive income:Coal royalties: Royalties valuation movement taken to equity - (4,311) - - Deferred tax on valuation - 1,274 - -Available-for-sale investments: Valuation movement taken to equity - (375) - - Deferred tax on valuation - (57) - - Transferred to income statement on disposal - - - -Foreign currency translation - 204 - - ------------------------------------------Total comprehensive income - (3,265) - - ------------------------------------------Dividends - - - -Issue of ordinary shares - - - -Value of employee services 177 - - - ------------------------------------------Total transactions with owners of the company 177 - - - ------------------------------------------Balance at December 31, 2012 354 38,349 632 (2,601) ------------------------------------------ ------------------------------------------ Retained Total earnings equity GBP '000 GBP '000--------------------------------------------------------Balance at January 1, 2012 (restated) 163,185 306,172Profit for the year 10,057 10,057Other comprehensive income:Coal royalties: Royalties valuation movement taken to equity - 5,028 Deferred tax on valuation - (1,629)Available-for-sale investments: Valuation movement taken to equity - (10,683) Deferred tax on valuation - 5,556 Transferred to income statement on disposal - (4,666)Foreign currency translation - 204 ----------------------Total comprehensive income 10,057 3,867 ----------------------Dividends (10,579) (10,579)Issue of ordinary shares - 1,322Value of employee services 5 182 ----------------------Total transactions with owners of the company (10,574) (9,075) ----------------------Balance at December 31, 2012 162,668 300,964 ---------------------- ---------------------- Anglo Pacific Group PLC Preliminary Results 2012 CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2012 Group Restated 2012 2011 GBP '000 GBP '000Cash flows from operating activitiesProfit before taxation 14,220 48,451Adjustments for:Interest received (1,723) (1,507)Unrealised foreign currency (gain)/loss (431) 1,712Depreciation of property, plant and equipment 21 21Amortisation of intangibles - royalties 1,018 1,018Gain on disposal of mining and exploration interests (7,347) (20,303)Provision for non-recovery of interest receivable - 709Royalty instrument (recovery)/provision (806) 1,563Loss on impairment of royalty intangible - 1,088Loss on write down of mining and exploration interests 4,013 42Share based payment 183 130 ----------- ----------- 9,148 32,924Decrease/(Increase) in trade and other receivables 7,199 (3,483)(Decrease)/Increase in trade and other payables (4,725) 423Receipts from royalty instruments 2,898 742 ----------- -----------Cash generated from operations 14,520 30,606Income taxes paid (6,186) (13,083) ----------- -----------Net cash generated from operating activities 8,334 17,523 ----------- -----------Cash flows from investing activitiesProceeds on disposal of mining and exploration interests 19,280 51,491Purchases of mining and exploration interests (23,781) (28,101)Purchases of royalty interests (2,398) (28,395)Purchases of property, plant and equipment - (29)Exploration and evaluation expenditure (127) (108)Interest received 1,110 536Investments in subsidiaries - - ----------- -----------Net cash used in from investing activities (5,916) (4,606) ----------- -----------Cash flows from financing activitiesDividends paid (10,579) (8,978) ----------- -----------Net cash used in from financing activities (10,579) (8,978) ----------- -----------Net (decrease)/increase in cash and cash equivalents (8,161) 3,939Cash and cash equivalents at beginning of period 32,197 28,258 ----------- -----------Cash and cash equivalents at end of period 24,036 32,197 ----------- ----------- ----------- -----------



Anglo Pacific Group PLC

Preliminary Results 2012

NOTES

1. Prior period adjustment

As mentioned in the royalty review, an audit conducted by the Queensland Office of State Revenue identified a misallocation of royalty revenue attributable to the Group. As a result, the Group received GBP 4.6million (A$7.1 million) more than it was entitled to over a six year period ended December 31, 2011. An associated interest charge of GBP 1.4million (A$2.2million) was also incurred on the overpayments. In accordance with IAS 8, the prior periods financial statements are restated to reflect what the position would have been, taking into account this information. The following tables reconcile the restated position to that previously reported:

Consolidated Income Statement Year ended December 31, 2011 Restated Original Adjustment GBP '000 GBP '000 GBP '000Consolidated Income StatementRoyalty income 34,679 35,103 (424)Finance income 1,507 1,507 -Operating expenses (3,393) (3,262) (131)Operating profit 31,775 32,330 (555)Other income 634 634 -Profit before tax 48,451 49,006 (555)Income tax expense (12,171) (12,337) 166 -----------------------------------Profit attributable to equity holders 36,280 36,669 (389) -----------------------------------Total and continuing earnings per shareBasic earnings per share 33.51p 33.87p (0.36p)Diluted earnings per share 33.51p 33.87p (0.36p)Consolidated Statement of Comprehensive Income Year ended December 31, 2011 Restated Original Adjustment GBP '000 GBP '000 GBP '000Consolidated Statement of Comprehensive IncomeProfit for the financial period 36,280 36,669 (389)Other comprehensive incomeNet loss on revaluation of coal royalties (4,139) (2,844) (1,295)Net exchange gain on translation of foreign operations 2,150 2,188 (38)Deferred tax 5,933 5,532 401Net expense recognised directly in equity (11,445) (10,124) (1,321) -----------------------------------Total comprehensive expense for the financial period (21,535) (20,214) (1,321) -----------------------------------Consolidated Balance Sheet December 31, 2011 December 31, 2010 Restated Original Adjustment Restated Original Adjustment GBP '000 GBP '000 GBP '000 GBP '000 GBP '000 GBP '000Consolidated Balance SheetCoal royalties 165,967 175,124 (9,157) 169,304 177,130 (7,826)Total assets 371,039 380,196 (9,157) 407,800 415,626 (7,826)Deferred tax 54,240 58,822 (4,582) 59,824 63,838 (4,014)Trade and other payables 6,896 781 6,115 6,470 913 5,557Total liabilities 64,867 63,334 1,533 71,281 69,738 1,543Total equity and liabilities 371,039 380,196 (9,157) 407,800 415,626 (7,826)Consolidated Statement of Cash Flows Year ended December 31, 2011 Restated Original Adjustment GBP '000 GBP '000 GBP '000Consolidated Statement of Cash FlowsCash flows from operating activitiesProfit before taxation 48,451 49,006 (555)Decrease in trade and other payables 423 (132) 555



Overall, the net assets of the Group at December 31, 2011 were overstated by GBP 10.7million as a result of this overpayment and the corresponding impact on the coal royalty valuation. The value of the coal royalty was GBP 9.2million less when taking into account roads over the remaining portion of the private royalty ground which has yet to be mined. Trade and other payables now reflect an amount owing to the mine operator as a result of these overpayments and the associated interest charge. The deferred tax balance has been recalculated based on the new coal royalty valuation and also reflects a credit to the group arising on the payment of tax on the previously overstated revenue.

2. Earnings per share

Earnings per ordinary share is calculated on the Group's profit after tax of GBP 10,057,000 (2011: GBP 36,280,000 (restated)) and the weighted average number of shares in issue during the year of 108,540,723 (2011: 108,263,282).

The diluted earnings per ordinary share is calculated on the Group's profit after tax of GBP 10,057,000 (2011: GBP 36,280,000 (restated)) and 108,544,883 shares (2011: 108,274,402). The dilutive effect is due to options outstanding under the Company Share Option Plan at the year end.

3. Events occurring after year end

On February 8, 2013, an investee company in which the Group holds both secured and unsecured mining and exploration interests filed for protection under a corporate reconstruction based on a shortage of liquidity.

As at December 31, 2012, the Group's mark to market losses on the unsecured interest was GBP 3.7million. In light of the investee company's filing on February 8, 2013, management consider the fall in the market value of the investee company at December 31, 2012 to be impaired and have recognised these losses through "other losses" in the income statement.

The Group considered that there was sufficient recourse attached to the secured interest and as such, no impairment was considered necessary as at December 31, 2012.

4. Status of financial information

This preliminary announcement does not constitute the Group's full financial statements for 2012. This report is based on accounts which are in the process of being audited and will be approved by the Board and subsequently filed with the Registrar of Companies. Accordingly, the financial information for 2012 is unaudited and does not have the status of statutory accounts within the meaning of Section 435 of the Companies Act 2006.

Financial information for the year to December 31, 2011 prior to restatement has been extracted from the full financial statements prepared under the historical cost convention, as modified by the revaluation of coal royalties, available-for-sale financial assets, and financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss, as filed with the Registrar of Companies. The Auditors' report on the full financial statements for the year to December 31, 2011 was unqualified and did not contain statements under section 498(2) of the United Kingdom Companies Act 2006 (regarding adequacy of accounting records and returns), or under 498(3) (regarding provision of necessary information and explanations).

Standards of disclosure for mineral projects

National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") contains certain requirements relating to the use of mineral resource and mineral reserve categories of an "acceptable foreign code" (as defined in NI 43-101) in "disclosure" (as defined in NI 43-101) made by Anglo Pacific Group PLC with respect to a "mineral project" (as defined in NI 43-101), including the requirement to include a reconciliation of any material differences between the mineral resource and mineral reserve categories used under an acceptable foreign code and the standards developed by the Canadian Institute of Mining, Metallurgy and Petroleum, as the CIM Definition Standards on Mineral Resources and Mineral Reserves adopted by CIM Council, as amended (the "CIM Standards") in respect of a mineral project. Pursuant to an exemption order granted to Anglo Pacific Group PLC by the Ontario Securities Commission (the "Exemption Order"), the information contained herein with respect to the Four Mile Uranium Project, the Ring of Fire Project, the Jogjakarta Iron Sands and Pig Iron Project and the Tucano Project has been extracted from information publicly disclosed, disseminated, filed, furnished or similarly communicated to the public by an issuer whose securities trade on a "specified exchange" (as defined under NI 43-101) that discloses mineral reserves and mineral resources under one of the JORC Code, the PERC Code, the SAMREC Code, SEC Industry Guide 7 or the Certification Code (each as defined in NI 43-101). As the definitions and standards of the JORC Code, the PERC Code, the SAMREC Code, SEC Industry Guide 7 and the Certification Code are substantially similar to the CIM Standards, a reconciliation of any material differences between the mineral resource and mineral reserve categories reported under the JORC Code, the PERC Code, the SAMREC Code, SEC Industry Guide 7 and the Certification Code, as applicable, to categories under the CIM Standards is not included and no Form 43-101F1 technical report will be filed to support the disclosure based upon such exemption.

Alliance Resources Limited, Indo Mines Limited and Beadell Resources Limited are all listed on the Australian Securities Exchange and report in accordance with the JORC Code. Cliffs Natural Resources Inc. is listed on the New York Stock Exchange and reports in accordance with SEC Industry Guide 7.

Cautionary note to U.S. investors concerning estimates of measured, indicated and inferred resources: Certain technical disclosure in this press release has been prepared in accordance with the requirements of Canadian securities laws, including NI 43-101, in certain cases as modified by the Exemption Order referred to above, which differ from the requirements of U.S. securities laws. This press release uses the terms "measured resources", "indicated resources" and "inferred resources". U.S. investors are advised that while such terms are recognised and required by Canadian Securities laws, the Securities and Exchange Commission does not recognise them. "Inferred resources" have a great amount of uncertainty as to their existence and as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred resource will be upgraded to a higher category. Under Canadian Securities laws, estimates of inferred resources may not form the basis of feasibility or other economic studies. U.S. investors are cautioned not to assume that all or any part of measured resources or indicated resources will ever be converted into reserves. U.S. investors are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable.



Contacts:
Anglo Pacific Group PLC
John Theobald
Chief Executive Officer
+44 (0) 20 3435 7400

Anglo Pacific Group PLC
Chris Orchard
Chief Investment Officer
+44 (0) 20 3435 7400

Anglo Pacific Group PLC
Kevin Flynn
Chief Financial Officer
+44 (0) 20 3435 7400
www.anglopacificgroup.com

Liberum Capital
Chris Bowman
+44 (0) 20 3100 2000

Liberum Capital
Christopher Kololian
+44 (0) 20 3100 2000

Pelham Bell Pottinger
Lorna Spears
+44 (0) 20 7861 3232

Pelham Bell Pottinger
James Macfarlane
+44 (0) 20 7861 3232



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