Mr. Julian Treger reports

ANGLO PACIFIC GROUP PLC KESTREL UPDATE

Anglo Pacific Group PLC has entered into an agreement with Kestrel Coal Pty. Ltd., a subsidiary of Rio Tinto Coal Australia, and its Kestrel mine joint venturers, Queensland Coal Pty. Ltd. and Mitsui Kestrel Coal Investment Pty. Ltd., relating to the provision of information in respect of the Kestrel coal mine in Queensland, Australia. Rio Tinto Coal Australia manages Kestrel Mine on behalf of the joint venture partners.

The information to which Anglo Pacific is entitled under the agreement includes, on a quarterly basis:

• The invoiced payable tonnes (including the hard coking coal, soft coking coal and thermal coal splits), royalty payable, and the split between the public royalty payable and the private royalty payable;
• The estimated private royalty payable for the next quarter and the forecast production tonnages, split on a public and private royalty basis, for the next four quarters.

Anglo Pacific expects approximately 43 per cent of production from Kestrel to be within its royalty lands for second half 2014. The company expects minimal royalty income from Kestrel during the period first half 2015, but Anglo Pacific management expects a substantial recovery thereafter as Rio Tinto mines more coal within the company's royalty lands.

Commenting on the agreement, Julian Treger, chief executive officer of Anglo Pacific, said, "We are pleased to have reached agreement with Rio Tinto and Mitsui on these information rights which will provide us and our investors more visibility on expected growth in royalty income from this key asset over the next 24 months."