Half Yearly Report

RNS Number : 1778P

Amur Minerals Corporation

30 September 2013

AMUR MINERALS CORPORATION

(AIM: AMC)

Interim Results 2013

Debt Free and Funded with a World Class Sulphide Nickel Copper Project

Amur Minerals Corporation ("Amur" or the "Company"), a nickel-copper sulphide mineral exploration and resource development company focused on the far east of Russia, is pleased to announce interim results for the six months ended 30 June 2013.

Financially, the Company remains debt free and funded. Exploration continues to successfully define new resources with the discovery of a fifth deposit at Kubuk adding to the recently updated JORC resources which have been substantially expanded and now exceed more than 500,000 tonnes, making it one of the largest sulphide nickel copper projects in the world.

The first six months of 2013 have been productive for Amur and highlights include the following:

· The second year of operation of the Company's LF90 diamond core drill rig continues to provide a substantial cost reduction per metre drilled. Discovery costs per kilogram of nickel are projected to be four pence per kilogram whilst the current price per kilogram of nickel is GBP 8.28.

· The discovery of a fifth deposit indicates that there is substantially more resource present within the exploration licence at Kun-Manie than what was reported earlier this year. This season's drilling at the fifth deposit named Kubuk is now being completed where the Company has tested approximately 40% to 50% of the length of the target area. Final analytical results are now being determined and will be provided to an external qualified consulting group for the calculation of a JORC resource estimate. Kubuk appears to be a minimum of one kilometre in length with mineralisation being located at and near the surface, making it a potentially viable open cast mining area similar to all four of the other drilled deposits.

· Step out drilling since the last JORC resource released in 2007 has dramatically increased the resource base at Kun-Manie. Globally, the resource now exceeds 531,000 tonnes of nickel and 145,000 tonnes of copper. Platinum and palladium by-product are present in significant quantities; A total of 13.9 tonnes of platinum and 15.6 tonnes of palladium are estimated to be present. Kubuk should add substantially to the recently updated resource inventory.

· Infill drilling throughout the various deposits has confirmed the continuity of mineralisation in both thickness and average grades. This provides the Company with a higher degree of confidence that the projected production grades should be reasonably estimated. This is a key factor and continues to derisk the project in the area of mining and production. All drilled resources at Kun-Manie lie within the boundaries of the limits of the mining licence for which the Company has applied.

· We continue to work with the Russian federal and state agencies in award of the mining licence at Kun-Manie and have noted significant progress in recent months. Regulatory changes in late 2012 have permitted determination of the one time payment to convert a portion of our exploration licence to a mining licence. The payment of approximately US$818,000 was determined in May of this year. Updated documentation was immediately provided to Rosnedra for inclusion in time sensitive reports required from Russian Federation agencies that provide key input needed for the ultimate award of a mining licence.

· Administratively, the Company has reduced costs by consolidation of some of its UK based activities. Effective 1 July 2013, the Nomad and Broker activities were consolidated under an agreement with SP Angel Corporate Finance LLP.

· The Company has also begun internal studies related to the proposed road access and power infrastructure costs.

In the near term, the Company plans to obtain an estimate of the resource at Kubuk, continue with the update of operating and capital cost estimates to account for inflation since the 2007 estimate and subsequently report a revised economic assessment of the project. The economic assessment will include all newly acquired technical information related to resources, reserves, metallurgy, costs and metal pricing.

Robin Young, CEO of Amur Minerals, commented:

"The first half of 2013 has been another highly successful period for Amur with the discovery of a new deposit, alternative infrastructure options being identified for consideration while simultaneously maintaining a debt free position in the market. Our cash position remains positive permitting us to continue advancement of Kun-Manie and we now consider ourselves to be among the largest nickel sulphide projects in the world. We also note that recent changes in the Russian Federation mining licence award system have improved the process and note substantial advancement of our application during the last four months."

Company

Amur Minerals Corp.

Nomad and Broker

S.P. Angel Corporate Finance LLP

Public Relations

Yellow Jersey

Robin Young CEO

Ewan Leggat

Laura Littley

Dominic Barretto

Kelsey Traynor

+7 4212 755 615

+44 (0) 20 3463 2260

+44 (0) 77 6853 7739

Chairman's Statement

Dear Shareholder:

It is with pleasure that I take this opportunity to update shareholders of Amur Minerals Corporation on the Company's successful performance during the first six months of 2013.

Exploration of our Kun-Manie nickel copper sulphide project in the Russian Far East has been the primary focus over this period. This has included drilling of mineralisation at the Kubuk anomaly with early indications that the area contains a fifth deposit that could contribute another substantial increase in the resources. The Company also updated the resource estimate yielding a substantial increase in ore tonnage and contained nickel and copper, which could also substantially improve the economic potential of the project.

2013 Highlights

· Early assessment of the drill results from the Kubuk anomaly indicated substantial thicknesses of mineralisation are present and suggests the potential for a fifth deposit to be added to the existing four deposits that comprise the current resources and reserves. A total of 1,813 metres in 12 holes were drilled at the Kubuk target through 30 June 2013. Results were better than anticipated and the Company immediately doubled the planned metres from 2,500 to 5,000 metres with a potential to spend the entire drill season at Kubuk should the results warrant an even greater commitment.

· The updated JORC mineral resource inventory resulted in substantial increases in defined resources with a 47% increase in tonnage to more than 100 million tonnes, a 56% increase in contained nickel to in excess of one half million tonnes and a 52% increase in contained copper to approximately 145,000 tonnes.

· Subsequent to administrative changes within the licencing system in late 2012, Rosnedra notified the Company of a one-time fee to convert a portion of the exploration licence which contains all drilled resources and the Kubuk area to a mining licence of 24.6 million Roubles (approximately US$818,000). Concurrent with the notification in May 2013, the Company updated time sensitive documents relating to changes in the administrative structure of the Company to Rosnedra for use in the decision on awarding the mining licence. In post mid year events and within four months of the definition of the one time payment, the Company has been informed the review process has advanced through three agencies which are a part of the mining licencing award process.

· The Company is debt free with cash in the bankUS$2.2m up from US$2.0m at 31 December 2012

Exploration

Please see link at the end of this announcement to view figure 1 - Ata & Ataga

During the early part of 2013 the Company received the final analytical results of the drilling programme at Gorny which was completed in late 2012. The 2012 programme consisted of nine holes totalling 1,484 metres. A total of 18 mineralised intervals averaging 6.4 metres thick where encountered. The average combined intercept thickness per hole is 12.8 metres with average grades of 0.45% nickel and 0.13% copper. Drilling confirmed that Gorny is the fourth deposit discovered at Kun-Maine and could be a continuation of the Maly Kurumkon/Flangovy deposit located approximately 1.5 kilometres to the west. Exploration at Gorny has so far not defined the limits of the mineralisation.

Further analytical results were also received in late Q1 2013 for the 2012 step-out drilling programme at Ikenskoe and consisted of ten holes totalling 1,212 metres which were drilled immediately south and adjacent to the Ikenskoe deposit in an area identified as Sobolevsky. A total of 122.5 metres of nickel and copper mineralisation was intersected in six of the ten holes with average grades of 0.89% nickel and 0.22% copper over an average interval thickness of 17.5 metres.

The 2012 drill results along with all other drill data collected since 2007 were forwarded to SRK Consulting (UK) Ltd ("SRK") early in 2013 for the purposes of updating the 2007 JORC resource estimate. The updated resource is discussed in the section below.

On 29 May 2013 a drilling programme commenced at Kubuk, which is one of the largest undrilled anomalies within the exploration licence. The anomaly at Kubuk is 2.5 kilometres in length and was defined using a combination of trenching, soil geochemical and geophysical surveys. At the end of H1 2013, 12 drill holes were completed containing a total of 1,813 metres, with all holes intercepting disseminated sulphide mineralisation that typically host nickel and copper. The average total intersected mineralised thickness was 28 metres with the average discrete interval intercept being 13.4 metres. The results were better than expected and the Company believes that Kubuk is a potential fifth resource that could contribute to the resource inventory. With these highly positive results, the decision was taken to double the planned drill programme at Kubuk from 2,500 metres and 5,000 metres. Presently, drill results are being assembled and will be used to compile an inaugural resource estimate for the 750 to 1,000 metre long deposit.

Resource Estimate

The Company contracted SRK to update the JORC compliant mineral resource estimate. The previous estimate had been completed in 2007 by SRK. The new update includes the four deposits of Gorny, Maly Kurumkon/Flangovy, Vodorazdelny and Ikenskoe/Sobolevsky. In H2 of 2013, the Company plans to compile the first estimate of the fifth deposit at Kubuk. All deposits lie within the area for which the Company has applied for the mining licence.

The new study was initiated in H1 2013 and results were reported as a post mid year event and produced substantial increases in the global resource at Kun-Manie. The expansion in resources was primarily due to step-out drilling conducted at Maly Kurumkon and the drilling at the newly defined Gorny deposit. Based on nearly 29 kilometres of total drilling, the combined mineral resource now exceeds 100 million tonnes (a 47% increase from 2007) with an average nickel grade of 0.53% and an average copper grade of 0.15%. This equates to 531,700 tonnes of contained nickel (a 56% increase from 2007) and 145,500 tonnes of contained copper (a 52% increase from 2007). The increase in the resource places the drilled resources among the largest sulphide deposits in the world. By-product platinum and palladium were also estimated to be on the order of 13.9 tonnes of platinum and 15.6 tonnes of palladium.

Orebody	Tonnage	Ni	Ni	Cu	Cu	Pt	Pt	Pd	Pd
Resource Category	Mt	%	t	%	t	g/t	kg	g/t	kg
Gorny
Measured	-	-	-	-	-	-	-	-	-
Indicated	-	-	-	-	-	-	-	-	-
Subtotal	-	-	-	-	-	-	-	-	-
Inferred	7.6	0.31	23,900	0.09	7,000	0.2	1,600	0.2	1,900
Total	7.6	0.31	23,900	0.09	7,000	0.2	1,600	0.2	1,900
Ikenskoe
Measured	14.9	0.52	77,100	0.13	19,700	0.2	2,700	0.2	3,000
Indicated	7.7	0.39	29,800	0.1	7,800	0.1	1,100	0.2	1,300
Subtotal	22.6	0.47	106,900	0.12	27,500	0.2	3,800	0.2	4,300
Inferred	11.5	0.62	70,800	0.14	16,300	0.2	2,300	0.2	2,500
Total	34.1	0.52	177,700	0.13	43,800	0.2	6,100	0.2	6,800
Vodorazdelny
Measured	0.8	0.57	4,700	0.17	1,400	0.3	200	0.3	200
Indicated	4.8	0.66	31,200	0.17	8,200	0.1	600	0.1	600
Subtotal	5.6	0.64	35,900	0.17	9,600	0.1	800	0.1	800
Inferred	-	-	-	-	-	-	-	-	-
Total	5.6	0.64	35,900	0.17	9,600	0.1	800	0.1	800
Maly Kurumkon
Measured	-	-	-	-	-	-	-	-	-
Indicated	21.8	0.58	126,100	0.16	34,900	0.1	2,400	0.1	3,000
Subtotal	21.8	0.58	126,100	0.16	34,900	0.1	2,400	0.1	3,000
Inferred	31.1	0.54	168,100	0.16	50,200	0.1	3,000	0.1	3,100
Total	52.9	0.56	294,200	0.16	85,100	0.1	5,400	0.1	6,100

Total Measured	15.8	0.52	81,800	0.13	21,100	0.2	2,900	0.2	3,200
Total Indicated	34.3	0.55	187,100	0.15	50,900	0.1	4,100	0.1	4,900
Total Inferred	50.1	0.52	262,800	0.15	73,500	0.1	6,900	0.1	7,500
Grand Total	100.2	0.53	531,700	0.15	145,500	0.1	13,900	0.2	15,600

SRK Mineral Resource Inventory - 29 July 2013 Kin-Manie Nickel Copper Project

Please see link at the end of this announcement for figure 2, showing the percentage of contained nickel at the various orebodies.

In addition to the step out drilling programme, the infill drilling efforts since 2007 have resulted in a substantial conversion of the 2007 Indicated Mineral Resource to Measured Resources. This represents a substantial increase in the confidence in the estimated tonnages and grades drilled at Kun-Manie. The new study also confirms that the geometries of the mineralised bodies are highly conducive to the lower cost open cast mining methods.

The Company intends to update this resource estimate with the results of the 2013 drilling programme at Kubuk when the final results become available. Additionally further technical work is planned to produce a reserve statement incorporating updated capital and operating costs. The substantial increases in resource and higher metallurgical recoveries resulting from the 2012 SGS Minerals study should positively impact the projected cash flow models last updated in late 2007 by SRK. The study will also look at alternative power generation options, transport design considerations and the potential of producing near final market product on site.

Licences

The Company submitted its application for the exploration licence extension at Kun-Manie in May 2012 with the result that a two year extension was granted in November 2012 to 31 December 2014. Exploration requirements within the exploration licence for 2013 will be successfully completed.

In May 2013, Rosnedra notified the Company that a one-time fee of RUR24.6 million (approximately US$818,000) would be assessed upon granting of the mining licence. The fee is payable 30 days after the final registration and award of the mining licence. To advance the licensing process, various Russian agencies were provided with updated information as of May 2013 specifically including administrative staff changes at the executive level and a new share registry since the original submission of the application for the mining licence was older than 18 months. The updated reports from the various agencies will be used to establish the terms and conditions of the mining licence. Three of the four agencies have completed updates of the reports during the last four months. Once all documentation is available, Rosnedra will provide a summary of the Company's application for use by Rosnedra's parent agency, the Ministry of Natural Resources. The Ministry of Natural Resources is vested to provide a submission to the Presidential Commission for a final grant of the mining licence. The Presidential Commission typically meets a minimum of twice per annum.

Financial Overview

The Company remained debt free through the first six months of 2013 with cash reserves of US$2.191 million as at 30 June 2013.

During the first half of the year the Company received the last four settlements from the Lanstead Capital LLP ("Lanstead") financing agreement entered into during March 2011 totalling US$356,000. This brought this financing agreement to completion with total receipts from all 24 settlements of US$2.3 million.

In a separate agreement with Lanstead, the Company entered into a subsequent placing and equity price mechanism with Lanstead in February 2012 for US$7.67 million (£4.86 million) by placing 60.7 million new shares. During the period the Company received nine settlements with proceeds of US$1.9 million. The remaining settlements, which when valued at the share price as at 30 June 2013 of 8.975p, will provide expected proceeds of an additional US$3.1 million.

In a post 30 June 2013 event, the Company entered into a further placing for US$7.9 million (£5.2 million) by placing 71.7 million new shares at a placing price of 7.25 per share. The Company received £1.0 million from Lanstead immediately upon completion of the placing with the remaining £4.0 million being subject to an equity price mechanism. An additional £200,000 was placed simultaneously with institutional investors.

Outlook

Looking to the remainder of an exciting 2013, the Company will continue to be very busy. The key tasks looking forward include the completion of the drilling at Kubuk and further updates to the 2013 resource estimate. The updated resources and reserves have demonstrated the continuing progress made by the Company, which has only been possible through the on-going dedication of the Amur and Kun-Manie staff. The Company will continue to work on the mining licence award. Their hard work has advanced the Kun-Manie project towards a production decision.

Mr. Robert W. Schafer

Non Executive Chairman

27 September 2013

Independent Review Report

To the shareholders of Amur Minerals Corporation

Introduction

We have been engaged by the Company to review the consolidated financial information in the interim financial report for the six months ended 30 June 2013 which comprises the consolidated statement of financial position, the consolidated statement of comprehensive income, the consolidated statement of cash flows, the consolidated statement of changes in equity and the related notes.

We have read the other information contained in the interim financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the financial information.

Directors' responsibilities

The interim report, including the financial information contained therein, is the responsibility of and has been approved by the Directors. The Directors are responsible for preparing the interim report in accordance with the rules of the London Stock Exchange for companies trading securities on the Alternative Investment Market which require that the interim report be presented and prepared in a form consistent with that which will be adopted in the Company's annual accounts having regard to the accounting standards applicable to such annual accounts.

Our responsibility

Our responsibility is to express to the Company a conclusion on the consolidated financial information in the interim financial report based on our review.

Our report has been prepared in accordance with the terms of our engagement to assist the Company in meeting the requirements of the rules of the London Stock Exchange for companies trading securities on the Alternative Investment Market and for no other purpose. No person is entitled to rely on this report unless such a person is a person entitled to rely upon this report by virtue of and for the purpose of our terms of engagement or has been expressly authorised to do so by our prior written consent. Save as above, we do not accept responsibility for this report to any other person or for any other purpose and we hereby expressly disclaim any and all such liability.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements 2410, ''Review of Interim Financial Information Performed by the Independent Auditor of the Entity'', issued by the Auditing Practices Board. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the consolidated financial information in the interim financial report for the six months ended 30 June 2013 are not prepared, in all material respects, in accordance with the rules of the London Stock Exchange for companies trading securities on the Alternative Investment Market.

BDO LLP

Chartered Accountants and Registered Auditors

London,

United Kingdom

27 September 2013

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

AMUR MINERALS CORPORATION AND ITS SUBSIDIARIES

consolidated STATEMENT OF FINANCIAL POSITION

AS AT 30 June 2013

(Amounts in thousands of US Dollars)

	Note	Unaudited 30 June 2013	Unaudited 30 June 2012		Audited 31 December 2012


NON-CURRENT ASSETS
Capitalised exploration costs		17,066	14,178		17,084
Property, plant and equipment		742	868		844

Total non-current assets		17,808	15,046		17,928

CURRENT ASSETS
Cash and cash equivalents		2,191	3,150		2,048
Other receivables		148	285		330
Derivative financial asset		3,107	3,981		5,787
Inventories		487	648		224
Total current assets		5,933	8,064		8,389

Total assets		23,741	23,110		26,317

CURRENT LIABILITIES
Trade and other payables		223	269		119

Total current liabilities		223	269		119

SHAREHOLDERS' EQUITY
Share capital		40,946	40,902		40,902
Share premium		6,613	6,632		6,613
Share options reserve		1,710	1,256		1,256
Retained deficit		(21,974)	(22,504)		(20,135)
Foreign exchange translation reserve		(3,777)	(3,445)	(	(2,438)
Total shareholders' equity		23,518	22,841		26,198

Total liabilities and shareholders' equity		23,741	23,110		26,317

AMUR MINERALS CORPORATION AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2013

(Amounts in thousands of US Dollars)
	Note	Unaudited 6 Months ended 30 June 2013	Unaudited 6 Months ended 30 June 2012	Audited Year ended 31 December 2012


Other administrative expenses		(945)	(1,131)	(1,548)
Share based payment		(634)	(202)	(202)

Total administrative expenses		(1,579)	(1,333)	(1,750)

Loss from operations		(1,579)	(1,333)	(1,750)

Finance expense		(895)	(514)	(1,813)
Fair value gain/(loss) on derivative financial assets		455	(4,521)	(435)

Loss before tax		(2,019)	(6,368)	(3,998)

Taxation		-	-	-

Loss for the period attributable to owners of the parent		(2,019)	(6,368)	(3,998)

Other Comprehensive income:
Exchange differences on translation of foreign operations which could subsequently be reclassified to profit or loss		(1,339)	(378)	629


Total comprehensive loss for the period attributable to owners of the parent		(3,358)	(6,746)	(3,369)

Loss per share: basic & diluted		US$ (0.006)	US$ (0.019)	US$ (0.012)

AMUR MINERALS CORPORATION AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 JUNE 2013

(Amounts in thousands of US Dollars)

	Unaudited 6 Months ended 30 June 2013	Reclassified Unaudited 6 Months ended 30 June 2012	Audited Year ended 31 December 2012
Cash flow from operating activities:
Payments to suppliers and employees	(698)	(921)	(1,190)

Net cash used in operating activities	(698)	(921)	(1,190)


Cash flow from investing activities:
Payment for property, plant and equipment	(86)	(595)	(693)
Payments for capitalised exploration expenditure	(1,113)	(959)	(2,789)
Recovery of VAT receivable	-	55	-

Net cash used in investing activities	(1,199)	(1,609)	(3,482)


Cash flow from financing activities:
Proceeds from issue of equity shares (net of issue costs)	-	533	533
Settlements of derivative financial asset	3,135	1,165	3,445
Finance expense	(895)	(514)	(1,813)

Net cash from financing activities	2,240	1,184	2,165


Net change in cash and cash equivalents	343	(1,346)	(2,507)

Cash and cash equivalents brought forward	2,048	4,436	4,436
Foreign exchange effects	(200)	60	119

Cash and cash equivalents carried forward	2,191	3,150	2,048

AMUR MINERALS CORPORATION AND ITS SUBSIDIARIES

CONSOLIDATED Statement of changes in equity

FOR THE SIX MONTHS ENDED 30 JUNE 2013

(Amounts in thousands of US Dollars)

	Share capital	Share premium	Retained deficit	Share options reserve	Foreign exchange translation reserve	Total

At 1 January 2013	40,902	6,613	(20,135)	1,256	(2,438)	26,198
Loss of the period	-	-	(2,019)	-	-	(2,019)
Comprehensive income for the period	-	-	-	-	(1,339)	(1,339)
Share options expired in the period	-	-	180	(180)	-	-
Equity settled share based payments	-	-	-	634	-	634
Shares issued for services	44	-	-	-	-	44
At 30 June 2013 (unaudited)	40,946	6,613	(21,974)	1,710	(3,777)	23,518


At 1 January 2012	32,265	7,071	(16,686)	1,604	(3,067)	21,187
Loss for the period	-	-	(6,368)	-	-	(6,368)
Other comprehensive income for the period	-	-	-	-	(378)	(378)
Share options expired in the period	-	-	549	(549)	-	-
Equity settled share based payments	-	-	-	201	-	201
Shares issued	8,637	-	-	-	-	8,637
Costs associated with issue of share capital	-	(439)	-	-	-	(439)
At 30 June 2012 (unaudited)	40,902	6,632	(22,505)	1,256	(3,445)	22,840


At 1 January 2012	32,265	7,071	(16,686)	1,604	(3,067)	21,187
Loss for the year	-	-	(3,998)	-	-	(3,998)
Other comprehensive income for the year	-	-	-	-	629	629
Share options expired in the year	-	-	549	(549)	-	-
Equity settled share based payments	-	-	-	201	-	201
Shares issued	8,637	-	-	-	-	8,637
Costs associated with issue of share capital	-	(458)	-	-	-	(458)
At 31 December 2012 (audited)	40,902	6,613	(20,135)	1,256	(2,438)	26,198

AMUR MINERALS CORPORATION AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL INFORMATION

FOR THE SIX MONTHD ENDED 30 JUNE 2013

1. Reporting Entity

Amur Minerals Corporation (the "Company") is a company domiciled in the British Virgin Islands. The consolidated interim financial information as at and for the six months ended 30 June 2013 comprise the Company and its subsidiaries (together referred to as the "Group").

The consolidated financial statements of the Group as at and for the year ended 31 December 2012 are available upon request from the Company's registered office at Kingston Chambers, P.O. Box 173, Road Town, Tortola, British Virgin Islands, from offices of SP Angel Finance, Prince Frederick House, 35 - 39 Maddox Street, London W1S 2PP or at www.amurminerals.com.

2. BASIS OF PREPARATION

The financial information set out in this report is based on the consolidated financial information of Amur Minerals Corporation and its subsidiary companies. The financial information of the Group for the 6 months ended 30 June 2013 was approved and authorised for issue by the Board on 27 September 2013. The interim results have not been audited, but were the subject to an independent review carried out by the Company's auditors, BDO LLP. This financial information has been prepared in accordance with the accounting policies that are expected to be applied in the Report and Accounts of Amur Minerals Corporation for the year ended 31 December 2013 and are consistent with IFRS as adopted by the European Union. The auditor's report on the group accounts to 31 December 2012 was unqualified,but did include an emphasis of matter on going concern. The comparative information for the full year ended 31 December 2012 is not the Group's full annual accounts for that period but has been derived from the annual financial statements for that period.

The consolidated financial information incorporates the results of Amur Minerals Corporation and its subsidiaries undertakings as at 30 June 2013, using the acquisition method of accounting as appropriate. The corresponding amounts are for the year ended 31 December 2012 and for the 6 month period ended 30 June 2012.

The Group financial information is presented in US Dollars ('US$') and values are rounded to the nearest thousand Dollars.

3. GOING CONCERN

In the absence of production revenues, the Group is currently dependent upon its existing financial resources which comprises cash and derivative financial asset (note 7), and its ability to raise additional finance through share placings to satisfy its obligations and fully finance its exploration and evaluation programme for Kun-Manie. Failure to meet these exploration and evaluation commitments could put the related licence interest at risk of forfeiture.

The Directors have reviewed future cash forecasts, with particular reference to the minimum expenditure requirements on the licences and the intended work programme for the next 12 months, and have reasonable expectation that the Group will have adequate resources to meet its commitments. Accordingly the financial information has been prepared on a going concern basis.

4. LOSS PER SHARE

Basic and diluted loss per share are calculated and set out below. The effects of warrants and share options outstanding at the period ends are anti-dilutive and have therefore been excluded from the following calculations.

	Unaudited 6 Months ended 30 June 2013	Unaudited 6 Months ended 30 June 2012	Audited Year ended 31 December 2012

Net loss for the period	(2,019)	(6,368)	(3,998)
Average number of shares for the period	353,296,237	337,049,245	345,146,217

Basic and diluted loss per share	US$ (0.006)	US$ (0.019)	US$ (0.012)

The Group had no dilutive potential ordinary shares in either period that would serve to increase the loss per ordinary share. There is therefore no difference between the basic and diluted loss per share for either period. A total of 27,941,400 (2012: 11,600,000) potential ordinary shares have therefore been excluded from the above calculations.

5. capitalised expenditures

During the six months ended 30 June 2013, the Group capitalise exploration and development related expenditures of US$1.1 million (1H 2012: US$959,000). The Group did not recognise any impairment of capitalised expenditure during the period (1H 2012: nil).

6. related parties

Key management personnel and directors were paid a total compensation of US$251,000 for the six months ended 30 June 2013 (1H 2012: US$234,000). A total of 11.7 million new options were granted to directors in the six months ended 30 June 2013 (2012: nil).