Mr. Julian Treger reports

ANGLO PACIFIC GROUP PLC ANNOUNCES Q1 2016 TRADING UPDATE

Anglo Pacific Group PLC is providing the following trading update for the period from Jan. 1, 2016, to May 23, 2016. Unless otherwise stated, all unaudited financial information is for the quarter ended March 31, 2016.

Highlights

• Royalty income of 1.9 million British pounds in first quarter 2016 (Q1 2015: 2.3 million British pounds, fourth quarter 2015: three million British pounds) in line with the group's expectations that the majority of royalty income, similar to 2015, will be received in the second half of 2016;
• Guidance from Kestrel remains unchanged with 30 to 35 per cent of production expected within the group's land in the first half of 2016 and 85 to 90 per cent in the second half of 2016;
• Recovery in both the outlook and price of coking coal and vanadium pentoxide;
• First receipts from the Four Mile royalty of 200,000 British pounds;
• Cash and cash equivalents of 3.7 million British pounds as at March 31, 2016 (Dec. 31, 2015: 5.7 million British pounds);
• Borrowings of 9.3 million British pounds as at March 31, 2016 (Dec. 31, 2015: 7.3 million British pounds);
• Following positive developments at Berkeley Energia Ltd., the group's equity stake is valued at 10.3 million British pounds (as of May 23, 2016) and the implied value of the group's royalty, based on Berkeley's recently announced deal, is approximately $10-million higher than the value carried on the company's balance sheet.

Julian Treger, chief executive officer of the company, commented:

"Similar to 2015, we expect the majority of our royalty income to be earned in the second half of 2016. We continue to expect royalty income for 2016 as a whole to be significantly higher than the 8.7 million British pounds earned in 2015, a year which marked the beginning of a turnaround for the group in terms of production returning to the group's royalty land at Kestrel and a full year of income for the Narrabri royalty.

"We are pleased to finally see the price of coking coal show some signs of recovery. We believe that the price risk relating to coking coal should be to the upside.

"We were encouraged to see the first receipts from our Four Mile uranium royalty in the period. Uranium is a commodity we continue to believe in and are pleased to see the recent positive developments at Berkeley which not only has increased the value of our equity holding but also implies that the market value of our royalty is approximately $10-million higher than the carrying value in our balance sheet based on an identical royalty which they announced earlier this month."

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