Interim Results - 6 Months to 30 June 1999

BRANCOTE HOLDINGS PLC
28 October 1999


Contacts:      Richard Prickett, Chairman
               Brancote Holdings PLC             0207 493 1002

               David Bick/Becky Jewers
               Holborn Public Relations          0207 929 5599
                                                 [e-mail]


                             BRANCOTE HOLDINGS PLC
                                       
              Interim results for the six months to 30 June 1999


Chairman's Statement

The financial result for the period was greatly improved showing a small loss
of  £27,966  (1998:  (£321,847)) on turnover of £982,542  (1998:  £1,168,562).
These results largely reflect the production income at the Mt. Cuthbert Copper
project   which   has  continued  satisfactorily  during   the   period   less
administrative  expenses. These results do not portray the  enormous  progress
the  Company has made during 1999 with its Esquel Gold exploration project  in
Argentina.

The progress is summarised as follows:
* January 1999 - Appointment of Bill Humphries as managing director. Fully
  subscribed rights issue at 10p per share to raise approximately £2.3 million
  before expenses in order to fund an evaluation programme of the Esquel  gold
  project.
* March  1999 - Drilling commenced on schedule on the Galadriel  vein,  a
  prominent quartz vein structure centred in the highly prospective Cordon  de
  Esquel epithermal gold/silver system.
* April 1999 - Initial drilling results confirmed expectations. All  holes
  at  this stage, with the exception of two orientation holes, intersected the
  structure with an average width of mineralisation up to ten metres, with the
  grades ranging from 2.51 g/t gold up to 28.9 g/t gold.
* June  1999 - Galdriel  drill results were very encouraging,  including
  bonanza grades of gold between 3 and 8 ounces per tonne.

  Metallurgical test work showed good gold recoveries averaging in  excess  of
  90 per cent. within 24 hours active leach.

  New  discoveries were made of veins to the west and north of current  target
  areas containing high grade gold.

* July 1999 - acquisition of 10 per cent. additional interest in Minera El
  Desquite S.A., the operations company of the Esquel gold project in
  Argentina, giving Brancote a 60 per cent. controlling interest in the
  project.

  The  acquisition  was funded by the issue and placing of approximately  12.8
  million  new shares. This satisfied the purchase price of £3.19 million  and
  raised a further £400,000 working capital for the Company.

  The  interests  of  Carlos  Miguens  and  Kerry  Packer  became  substantial
  shareholders in Brancote.

* September 1999 - Significant discoveries of a new style of mineralisation
  to  the  south of Galadriel with the potential to host a multimillion  ounce
  deposit.

  Exploration  results continued to be very encouraging with  continuing  wide
  intersections containing high gold values.

  Pre  feasibility  studies  commenced with  the  appointment  of  engineering
  consultants to carry out a resource estimate on drill results to date.

  The  exploration  programme was expanded for increased  exploration  in  the
  Northern half of the project and to identify new drilling targets.

* October  1999 - Outstanding drill results received showing  an  average
  grade  of  18.8 g/t with a width of 39 metres. The hole confirms indications
  from earlier drilling that the mineralisation was improving, both in width
  and grade towards the south and with depth.

  The project team is currently engaged in target definition and location in
  preparation for next seasons drilling.

Full  details of this year's activities have been summarised in detailed press
releases  which  have  been sent to shareholders. For  further  copies  please
contact  the  London office on 0207 493 1002 or refer to our  new  website  on
www.brancote.com.

This  year  has seen a transformation in the Company's position  and  we  look
forward  to  the next six month's drilling programme at Esquel with confidence
and enthusiasm.

RICHARD PRICKETT, Chairman


BRANCOTE HOLDINGS PLC

UNAUDITED CONSOLIDATED PROFIT & LOSS ACCOUNT

                                           FOR THE SIX
                                          MONTHS ENDED
                                        30 June    30 June
                                          1999       1998
                                            £          £
                                                                      
                                                         
Turnover                               982,542    1,168,562

Cost of sales                         (780,094)  (1,222,486)
                                                         
Gross profit/(loss)                    202,448      (53,924)
                                
Administrative expenses               (208,867)    (167,946)
                                       
Exploration costs                      (41,691)     (86,161)
                                                         
Operating loss                         (48,110)    (308,031)
                                          
Profit on sale of investments           21,374          -

Interest payable                       (14,115)     (23,159)
                                          
Interest receivable                     12,885        9,343
                                                         
Loss on ordinary activities before     (27,966)    (321,847)
 taxation                                  
                                                         
Taxation                                  -             -
                                                         
Retained loss for the period           (27,966)    (321,847)
                                                                       
Loss per share                          (0.08p)       (1.7p)
                                        



                STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
                     FOR THE SIX MONTHS ENDED 30 JUNE 1999

                                                        £
Loss attributable to shareholders of 
  Brancote Holdings PLC                             (27,966)
                                      
Unrealised exchange rate movements                 (524,688)
                                                         
Total recognised losses for the period             (552,654)



BRANCOTE HOLDINGS PLC

UNAUDITED CONSOLIDATED BALANCE SHEET

                                         30            31
                                       June       December
                                       1999          1998
                                          £             £
FIXED ASSETS                                             
                                                         
Intangible                                               
- deferred exploration costs        673,948       862,376
Tangible assets                     217,292       222,125  
Investments                         951,334       142,953
                                      
                                  1,842,574     1,227,454
                                    
CURRENT ASSETS                                           
Stock                               777,110       441,826
Debtors                             164,714       192,586
                                   
Cash at bank and in hand          1,212,064       130,233
                                               
                                  2,153,888       764,645
                                                         
CREDITORS: AMOUNTS FALLING DUE    (606,214)    (1,007,911)
  WITHIN ONE YEAR                      
                                                         
NET CURRENT ASSETS                1,547,674     (243,266)
                                                         
CREDITORS: AMOUNTS FALLING DUE 
 AFTER MORE THAN ONE YEAR          (366,059)    (128,508)

PROVISION FOR LIABILITIES 
 AND CHARGES                       (71,999)      (52,140)

                                  2,952,190      803,540
                           
                                                         
CAPITAL AND RESERVES                                     
Called up share capital           2,186,428    1,018,156
Share premium account             6,212,603    5,250,432
Special reserve                     720,000      720,000
Profit and loss account          (6,166,841)  (6,185,048)         
                                                         
SHAREHOLDERS' FUNDS               2,952,190      803,540



Notes:

1.   This interim Statement for the six months ended 30 June 1999 is unaudited
     and  was  approved  by  the directors on 28 October 1999.  The  financial
     information set out above does not constitute statutory accounts within
     the meaning of section 240 of the Companies Act 1985. The information  at
     31 December 1998 has been extracted from the statutory accounts relating 
     to the year ended 31 December 1998 which have been filed with the
     Registrar of Companies.

2.   No dividends were proposed or paid in the six months ended 30 June 1999.

3.   The  accounting  policies remain as stated in the Annual Report  for  the
     year ended 31 December 1998.

4.   Copies of this interim report are being sent to Shareholders

5.   Copies  of  this interim report will be available to the public  free  of
     charge  from the office of Grant Thornton, Melton Street, Euston  Square,
     London,  NW1 2EP during normal office hours, Saturdays, Sundays and  bank
     holidays excepted, for 14 days from today.