Mr. Julian Treger reports

ANGLO PACIFIC GROUP PLC NOTICE OF 2017 INTERIM RESULTS AND Q2 2017 TRADING UPDATE

Anglo Pacific Group PLC will release its interim results for the six months ended June 30, 2017, on Aug. 23, 2017.

Anglo Pacific also issues the following trading update for the period April 1, 2017, to July 31, 2017. Unless otherwise stated, all unaudited financial information is for the quarter ended June 30, 2017.

H1 2017 highlights

• Free cash flow of 18.5 million to 19 million British pounds generated in H1 2017 (H1 2016: 4.7 million British pounds), which includes the 3.1 million to 3.4 million British pounds received as part of the Denison financing arrangement (1.7 million British pounds of which related to H2 2016);
• Approximately 290-per-cent increase in royalty income to 15.9 million to 16.3 million British pounds in H1 2017, compared with the equivalent 2016 period (H1 2016: 4.1 million British pounds; FY 2016: 19.7 million British pounds);
• Increase in royalty income mostly attributable to approximately 88 per cent of sales from Kestrel within the group's private royalty land, compared with 38 per cent in H1 2016, along with an approximately 10-per-cent increase in total sales volumes;
• Significant milestone achieved at Kestrel in Q2 2017 with a royalty paid on approximately 95 per cent of sales, which the company expects to remain around these levels for the foreseeable future;
• Fair-value decline of 10.5 million to 11.5 million British pounds in relation to Kestrel, largely as a result of resource depletion;
• Net debt of 800,000 British pounds at June 30, 2017 (Dec. 31, 2016: one million British pounds), including repayment, within six months, of the $12.75-million drawn as part of the Denison finance arrangement;
• Cash generated in July resulted in the group returning to a net cash position;
• New dividend schedule with intention to pay quarterly instalments in even tranches, although the fourth quarter dividend may be adjusted to reflect the actual level of income earned during the year.

Julian Treger, chief executive officer of the company, commented: "We are encouraged by the level of royalty income received in the first half of the year and expect this trend to continue into the second half now that we anticipate being paid a royalty on almost all sales by Rio Tinto at Kestrel. Royalty income for 2017 is already approximately 80 per cent of that reported for 2016 as a whole. However, on the flip side of such strong revenue from Kestrel is that it will impact on the valuation of the asset through resource depletion.

"The level of cash generated during the first six months is also pleasing and is already ahead of that generated in 2016 as a whole. This will allow us to repay in full the amount of borrowings drawn as part of our Denison transaction. With spot coking coal prices running higher than we had anticipated so far in Q3 2017, we will review the absolute level of the final dividend as part of our Q4 2017 trading update and will communicate this to the market in February, 2018.

"With the full availability of our $30-million (U.S.) revolving credit facility, a recent strengthening of the spot coking coal price, further weakening of the pound against our income currencies and a comfortably covered dividend expected in 2017, we are in a healthy financial position with good liquidity to pursue further royalty acquisitions and provide meaningful returns to our shareholders."

There will be an analyst presentation on the company's interim results at 9:30 a.m. BST on Aug. 23, 2017, at the offices of Redleaf Communications. To register your attendance or for further information, please contact Redleaf Communications at 44-0-20-7382-4746 or by e-mailing anglopacific@redleafpr.com.

About Anglo Pacific Group PLC

Anglo Pacific Group is a global natural resources royalty and streaming company. The company's strategy is to develop a leading international diversified royalty and streaming company with a portfolio centred on base metals and bulk materials, focusing on accelerating income growth through acquiring royalties on projects that are currently cash flow generating or are expected to be within the next 24 months, as well as investment in earlier-stage royalties.

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