Interim Results

City Natural Res High Yield Tst PLC
16 February 2005

City Natural Resources High Yield Trust plc

Date: 16 February 2005

Unaudited results for the six months ended 31 December 2004

•     Net asset value total return of 52.1 per cent since 1 August 2003 compared 
      to a total return of 25.8 per cent from the benchmark index

•     Ordinary share price total return since 1 August 2003 of 50.1 per cent

•     Discount of 1.9 per cent



Mr Adrian Collins, the Chairman, said:


Investment Performance

I am happy to report that the first six months of the current financial year
showed a very satisfactory performance.  The Company's net asset value moved up
from 63.6 pence to 77.5 pence, an increase of 21.9 per cent, while the share
price increased to 76.0 pence from its starting level of 63.0 pence, an increase
of 20.6 per cent.

As was explained in my previous report, while the bull market in natural
resources remains intact, the fund manager intends to keep his emphasis on
capital appreciation while maintaining the policy of paying quarterly dividends
of 0.5 pence per share.  To this end dividends totalling 1.0 pence per share
were declared in respect of the six month period, adding further to the capital
return detailed above.

Investment Strategy

The policy of investing in small to medium sized natural resource stocks,
combined with high yielding bonds and convertibles, remains intact.  What was
particularly interesting during the period under review was the reversal of
trends within individual base metals.  For most of 2004, copper, nickel and tin
were the star performers but, as the year matured, these metals were subjected
to profit-taking and zinc and lead moved ahead strongly.  Oil was particularly
volatile, peaking at US$55 per barrel, falling to US$40 on production increases
and finishing at US$48.  The weakest sectors in natural resources were the soft
commodities, highlighted by palm oil, which fell from US$550 to US$400 per
tonne.  Coal and iron ore led the way in bulk commodities fuelled to no small
extent by the willingness of Chinese consumers to sign up long term contracts at
materially higher prices than hitherto seen.  While our fund managers were happy
to establish profits in commodity producers that had risen sharply, the fixed
interest element of the portfolio tends to remain largely unchanged reflecting
the trust's ongoing yield requirements.

Outlook

Those who anticipated that the situation in Iraq would be resolved by year end
were sadly disillusioned.  The Middle East generally is likely to continue being
an unsettled area so that oil and gas stocks producing from elsewhere in the
world will continue to feature in our portfolio.  With interest rates now
unlikely to move ahead materially, Western economies should continue to show
pedestrian growth, while those of the East will be more explosive.

Given that profile it is hard not to remain confident about commodities for the
remainder of the year, and I am pleased to be able to report further strong
performance, with the net asset value moving ahead to (82.9) pence per share,
and the share price to (82.0) pence.

For further information please contact:

Richard Lockwood, Midas Capital Partners Limited
Andrew Ferguson, Midas Capital Partners Limited     
Tel:     [phone]


Unaudited Statement of Total Return (Incorporating the revenue account)
for the six months ended 31 December 2004


                                                          Notes               2004          2004          2004
                                                                           Revenue       Capital         Total
                                                                             £'000         £'000         £'000

Gains on investments                                                             -         9,181         9,181
Exchange losses                                                                  -         (149)         (149)
Income                                                                       1,141             -         1,141
Investment management fee                                                     (76)         (230)         (306)
Other expenses                                                               (150)             -         (150)

Net return before finance costs and taxation                                   915         8,802         9,717

Interest Payable                                                              (72)         (215)         (287)

Return on ordinary activities before tax                                       843         8,587         9,430

Tax on ordinary activities                                                   (208)           142          (66)

Return attributable to equity shareholders                                     635         8,729         9,364

Dividends in respect of equity shares                                        (628)             -         (628)

Transfer to reserves                                                             7         8,729         8,736

Return per Ordinary Share                                          1         1.01p        13.89p        14.90p




Unaudited Statement of Total Return (Incorporating the revenue account)
for the six months ended 31 December 2003
                                                          Notes               2003          2003          2003
                                                                           Revenue       Capital         Total
                                                                             £'000         £'000         £'000

Gains on investments                                                             -         5,318         5,318
Exchange losses                                                                (4)         (113)         (117)
Income                                                                         599             -           599
Investment management fee                                                     (25)          (75)         (100)
Other expenses                                                               (126)             -         (126)

Net return before finance costs and taxation                                   444         5,130         5,574

Interest Payable                                                              (15)          (20)          (35)

Return on ordinary activities before tax                                       429         5,110         5,539

Tax on ordinary activities                                                    (40)            32           (8)

Return attributable to equity shareholders                                     389         5,142         5,531

Dividends in respect of equity shares                                        (314)             -         (314)

Transfer to reserves                                                            75         5,142         5,217

Return per Ordinary Share                                          1         1.13p        14.93p        16.06p


                                                                       Unaudited       Unaudited       Unaudited
Balance Sheet                                                           31.12.04        30.06.04        31.12.03
                                                                           £'000           £'000           £'000

Fixed assets

Investments                                                               60,981          50,238          51,661


Current assets

Debtors                                                                      782             762             697
Cash at bank and on deposit                                                  840             368               -
                                                                           1,622           1,130             697

Creditors: amounts falling due within one year                          (13,896)        (11,397)         (7,357)

Net current liabilities                                                 (12,274)        (10,267)         (6,660)

Net Assets                                                                48,707          39,971          45,001

Capital and reserves
Called-up share capital                                                   15,714          15,714          15,714
Special reserve                                                           30,386          30,386          30,387
Warrant reserve                                                            2,353           2,353           2,353
Other reserves:
Capital reserve - realised                                               (6,666)         (7,791)         (8,174)
Capital reserve - unrealised                                               6,717           (887)           4,276
Revenue reserve                                                              203             196             445

Equity shareholders' funds                                                48,707          39,971          45,001

Net asset value per share                                          2      77.49p          63.59p          71.59p





Unaudited Summarised Statement of Cash Flows
                                                                         Six Months to 31  Six Months to 31
                                                                                 December     December 2003
                                                                                     2004
                                                                                    £'000             £'000

Net cash inflow/(outflow) from operating activities                                   788             (138)
Servicing of finance                                                                (276)              (13)
Capital expenditure and financial investment                                      (1,050)          (32,966)
Equity dividends paid                                                               (942)                 -

Net cash outflow before financing                                                 (1,480)          (33,117)
Financing                                                                           2,000            31,666

Increase/(decrease) in cash                                                           520           (1,451)

Reconciliation of net cash flow to movement in net debt

(Increase)/decrease in cash in the year                                               520           (1,451)
Cash inflow from drawdown of loans                                                (2,000)           (2,500)
Exchange losses                                                                      (48)             (113)

Net (debt)/ funds at 1 July                                                       (9,632)             1,554

Net debt at 31 December                                                          (11,160)           (2,510)


Reconciliation of net revenue before finance costs and taxation to net
cash inflow from operating activities

Net revenue before finance costs and taxation                                         915               444
Decrease/(increase) accrued income                                                    202             (523)
(Decrease)/increase in other creditors                                               (83)                26
Decrease in other debtors                                                               6                 2
Capitalised expenses taken to non-distributable reserves                            (230)              (75)
Overseas witholding tax suffered                                                     (22)              (12)

Net cash inflow/(outflow)  from operating activities                                  788             (138)


Notes

1.                  The basic revenue return per Ordinary share is based on the
net return after taxation of £635,000 (2003: £389,000) and on 62,857,143 (2003:
34,440,994) Ordinary shares being the weighted average number of Ordinary shares
in issue during the period.

The basic capital return per Ordinary share is based on a capital return of
£8,729,000 (2003:  £5,142,000) and on 62,857,143 (2003: 34,440,994) Ordinary
shares, being the weighted average number of Ordinary shares in issue during the
period.

Fully diluted returns calculated on the basis set out in Financial Reporting
Standard 14 'Earning per share' indicate that the exercise of Warrants in issue
would have no dilutive effect on returns.

2.       The basic net asset value per Ordinary share is based on net assets at
the period end of £48,707,000 (31 December 2003 - £45,001,000, 30 June 2004 -
39,971,000) and on 62,857,143 (31 December 2003 - 62,857,143, 30 June 2004 -
62,857,143) Ordinary shares, being the number of Ordinary shares in issue at the
period end.

          The fully diluted net asset value per Ordinary share for 31 December
2004, 31 December 2003 and 30 June 2004 has not been calculated , as it has been
assumed that the 4,000,000 outstanding Warrants at each period end would not
have been exercised, as the exercise price of 85p (31 December 2003 - 85p; 30
June 2003 - 85p) exceeded the undiluted net asset value.

3.         The Directors have declared a second interim dividend of 0.5p (2003 -
0.5p) per share payable on 25 February 2005 to shareholders on the register on 4
February 2005 , having an ex-dividend date of 2 February 2005.

4.         The financial information for the six months ended 31 December 2004
and 31 December 2003 comprises non-statutory accounts within the meaning of
Section 240 of the Companies Act 1985.  The financial information for the year
ended 30 June 2004 has been extracted from published accounts that have been
delivered to the Registrar of Companies and on which the report of the auditors
was unqualified.  The interim accounts have been prepared on the same basis as
the annual accounts.




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