Mr. Julian Treger reports

ANGLO PACIFIC GROUP PLC: TRADING UPDATE

Anglo Pacific Group PLC has issued the following trading update, along with certain unaudited financial information, for the 12 months ending Dec. 31, 2014:

• Anglo Pacific faced challenging commodity market conditions during 2014. However, the number of royalties over mines currently at the production stage increased from three to five, and the company generated cash through disposals of non-core equity investments.
• Gross royalty income is expected to be in the region of 3.2 million pounds sterling to 3.6 million pounds sterling for 2014.
• Gross proceeds from disposals of non-core equity and debt investments are approximately 8.7 million pounds sterling.
• Cash and cash equivalents were approximately 8.8 million pounds sterling as at Dec. 31, 2014.
• Anglo Pacific expects royalty income from Kestrel to increase substantially as mining recommences within its royalty lands during 2015.

Julian Treger, chief executive officer, commented:

"We expect a further ramp-up in production levels at Rio Tinto's Kestrel mine during 2015 and expect tonnage mined within our lands to increase substantially in 2015, with these trends continuing into 2016 and 2017.

"The challenges facing natural resource companies are increasing the demands for alternative financing, as reflected by the increasing number of prospective royalty acquisition opportunities in the Anglo Pacific pipeline."

Producing royalties

Kestrel

Kestrel mined approximately 5 per cent of production within the company's royalty lands during second-half 2014, based on current information from Rio Tinto. This was impacted by the Kestrel mine experiencing lower-than-expected production levels in 2014 as a result of a slower-than-expected production ramp-up and a panel change-out during fourth-quarter 2014 that was not expected in previous guidance for production from the company's royalty land. The company expects to see higher levels of production during 2015 following completion of the panel change-out.

Anglo Pacific expects production within the company's royalty lands from the Rio Tinto Kestrel mine to be in the range of 20 per cent to 25 per cent for first-half 2015 and 70 per cent to 75 per cent for third-quarter 2015 based on Rio Tinto guidance. The company anticipates that this trend of increasing production within its royalty lands is to continue throughout 2016 and 2017.