An anonymous director reports

DIVIDEND POLICY

Anglo Pacific Group PLC has revised its dividend policy following a review by the board to deliver a progressive policy that creates long-term sustainable value for shareholders.

The proposed acquisition of the Narrabri royalty, a 1-per-cent gross revenue royalty interest in the Narrabri coal project operated by Australian Securities Exchange-listed Whitehaven Coal Ltd., has provided the board with an opportunity to further review the dividend policy while recognizing that the royalty income from Kestrel in the fourth quarter of 2014 was well below the company's previous expectations due to lower than expected mining in the company's royalty lands at the Rio Tinto Kestrel mine as previously announced.

The board's priorities are to deliver a progressive dividend policy at a level which is affordable and appropriate as well as financing the company's royalty investment opportunities and maintaining a strong balance sheet.

The board is considering the recommendation of a final dividend for the year ended Dec. 31, 2014, of four British pence following the completion of the acquisition of the Narrabri royalty.

In the medium term, the board is committed to a minimum annual total dividend of eight British pence subject to, among other things, the level of adjusted earnings, proceeds from the disposals of non-core assets and prospective investment opportunities.

In the longer term, and subject to the same factors, the board intends to adopt a dividend policy paying dividends representing a minimum of 65 per cent of adjusted earnings.