Mr. John Theobald reports

INTERIM MANAGEMENT STATEMENT

Anglo Pacific Group PLC today released its interim management statement for the period Jan. 1, 2013, to May 15, 2013.

The market background has remained challenging during the first three months of 2013. Demand for commodities remained weak as a result of slower economic growth figures worldwide. However, more recently, commodity prices have stabilized and buoyant stock markets are signalling renewed economic confidence. Against this background, the group has been encouraged with the level of royalty income earned in the first quarter.

Royalty income

Production at the group's main asset, the Kestrel coking coal mine, has been encouraging, despite Rio Tinto declaring a temporary force majeure at the end of January due to infrastructure damage as a result of flooding. The group earned income of $4.2-million Australian on sales of 796,000 tonnes during the quarter. This represents a significant increase on the previous quarter.

Income from the Amapa iron ore mine in Brazil was also encouraging at 500,000 pounds in the first quarter. The mine is adjacent to Tucano, one of the Group's development royalties. The operator of Tucano, Beadell Resources Ltd., has recently announced a serious incident at the loading port used by Amapa for all shipments of iron concentrate due to a landslip that has damaged the ship loading infrastructure. Until this is resolved, cash flows from the Amapa royalty are expected to be disrupted. This income is not lost, and will be recovered once shipping resumes.

The El Valle-Boinas/Carles gold mine in Spain continues its ramp-up to full production. As the new mine shaft has helped improve mining efficiency, the group received 600,000 pounds in the first three months of the year. The debenture has now been redeemed and all receipts now represent royalty income, not repayments of principal, and as such will be reflected in the group's income statement.

Acquisitions and disposals

In March and April, 2013, the group made two $5-million (U.S.) advances to Hummingbird Resources PLC in accordance with the term of the royalty financing agreement signed in December, 2012. The final $5-million (U.S.) will be paid on completion of a scoping study and further infill drilling when the sums advanced will convert to a 2-per-cent net smelter return (NSR) royalty on its gold project.

Financial performance

Royalty income for the first quarter has been above both the preceding quarter and the comparable quarter in 2012.

The group continues to manage the performance of its strategic mining interests, exiting from certain investments where it no longer considered that a royalty would be forthcoming. This has resulted in a loss of 3.9 million pounds on disposal in the first quarter.

Financial position

The group remains debt free and ended the first quarter with cash in the bank of 17.7 million pounds spread around a number of currencies. The group also has potential further liquidity in its strategic mining investment portfolio.

Board appointments

The group continues to take steps to strengthen its team with the appointment of Michael Blyth as a non-executive director of the group on March 20, 2013.

Mr. Blyth has had a distinguished career as a chartered accountant with extensive experience in audit and corporate governance matters. He will make a valuable addition to the board.

Dividends

Subject to approval at the annual general meeting, the board proposes to pay the final dividend for the financial year ending Dec. 31, 2012, of 5.75 pence per share on Aug. 7, 2013, to shareholders on the group's share register at the close of business on June 7, 2013. The shares will be quoted ex dividend on the London Stock Exchange and the Toronto Stock Exchange on June 5, 2013. As with previous dividends, depending on the share price at the time, the board will consider whether shareholders will be given the opportunity to elect to receive new shares instead of cash. Should this alternative be offered, the price will be calculated on the basis of the average mid-market closing price of the ordinary shares for the five business days commencing June 5, 2013. The last date for elections under such an alternative, if offered, will be July 19, 2013.

Outlook

Although there are some signs of economic recovery, lower commodity prices have resulted in reduced investor demand for mining stocks. Alternative financing has therefore become increasingly important for junior developers. The group remains well placed to benefit from these difficult markets and to add significant shareholder value by building and diversifying its royalty portfolio.

We seek Safe Harbor.