Anglo Pacific Group PLC: Preliminary Results 2007

PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2007

Anglo Pacific  Group  PLC  (APG),  the  natural  resources  royalties
company, today  announces record  preliminary  results for  the  year
ended 31st December 2007.

Financial Highlights


  * Australian coal royalty independent valuation of £60.9 million
    (2006: £47.9 million)
  * Total mining and exploration interests and cash increased by 49%
    to £114.7 million (2006: £77.2 million)
  * Realised profits from mature mining interests increased by 92% to
    £25.6 million (2006: £13.3 million)
  * Earnings increased by 50% to 28.72p per share (2006: 19.12p)
  * Proposed final dividend increased by 16% to 4.35p per share
    (2006: 3.75p)
  * Total dividend for the year increased by 16% to 7.35p (2006:
    6.35p)
  * Profit before tax increased by 53% to £33,768,000 (2006:
    £22,109,000)
  * Profit after tax increased by 54% to £29,740,000 (2006:
    £19,298,000)
  * Coal royalties for the year of £8.4 million (2006: £10.5 million)
  * Cash of £18.9 million (2006: £9.8 million)


Operational Highlights


  * New royalty packages acquired in Canada
  * Substantial increase in value of strategic quoted interests
  * Increased exposure to coal energy and uranium projects
  * Increase in gold, base metal and PGM projects
  * No debt and increased cash reserves


Commenting on the Preliminary Results, Peter Boycott, Chairman of
Anglo Pacific Group PLC said:

"2007 has been another record  year for Anglo Pacific Group.  Buoyant
royalty receipts  together with  increased profits  from disposal  of
non-core mining interests have  once again enabled  the Group to  pay
record dividends to  shareholders.   During the year,  the Group  has
acquired new royalty packages as well as substantially increasing its
strategic investments and cash position.

The Group's strategy remains  to develop new  royalty flows from  its
mining interests and to maximise  shareholder value. The Board  hopes
to take advantage of recent market setbacks to increase its  exposure
to gold, uranium and  the coal energy sector  in furtherance of  this
strategy."

Enquiries:

Brian Wides / Peter Boycott / Matthew Tack  Anglo Pacific Group PLC
                                            020 7318 6360

James Black / John Harrison                 Numis Securities
                                            020 7260 1000

Stephen  Scott  /  James  Harris  /   James Scott Harris
O'Shaughnessy
                                            020 7653 0030

Website                                     www.anglopacificgroup.com



2007 Review and Results

During the first half of 2007 world stock markets were strong, driven
by double digit rates of growth in developing economies.  The  demand
for metals, oil and other energy products enabled many mining  stocks
to reach record levels.  Later in the year the sub-prime problems  in
the USA and in the UK  at Northern Rock have caused large  write-offs
in the banking  and financial  sectors and  the subsequent  liquidity
crisis has raised fears of recession  in the USA and other  developed
economies.  This has  been exacerbated by  inflationary fears due  to
higher raw  material  and  energy costs  associated  with  continuing
demand from the emerging third world economies.

Against this  background and  despite the  substantial correction  in
junior mining markets during the  second half of 2007, Anglo  Pacific
Group has nevertheless managed to increase its strategic  investments
and cash by a further 15% since the end of June 2007.

Inflationary worries and geopolitical  tensions have driven gold  and
precious metals prices  to new  highs.  Platinum  group metal  prices
have continued to rise  due to dollar  weakness and supply  shortages
caused by safety concerns and power shortages in South Africa.

Uranium prices have remained steady while ever increasing demand  for
coal products has resulted in thermal coal prices increasing by  well
over 50% in the last six  months.  Furthermore, coking coal  supplies
have remained tight  in the face  of buoyant demand  in the Far  East
causing prices to escalate.

The Group's exposure to gold,  uranium and coal products has  enabled
it to produce  record earnings of  28.72p per share  in 2007  against
19.12p in 2006.

In 2007 gains on  disposal of non-core  interests were £25.6  million
(2006: £13.3 million) while coal  royalties declined to £8.4  million
due to production delays at both  mines and reducing output from  the
Crinum mine as mining  exhausts the reserves  on the Group's  private
ground.  However,  due to increasing  coal prices, the  value of  the
Group's coal royalty interests has  increased over the year from  £48
million to £61 million as at 31st December 2007.

These record results  have enabled  the Group to  increase the  total
dividends for 2007 to 7.35p per  share, an increase of 16% over  last
year.

The  Group's  private  mining  interests  remain  in  the   financial
statements at cost and together with quoted stakes in mining projects
at 31st December  2007 total £96  million compared to  £67 million  a
year ago.  Furthermore the  Group had  no borrowings  and nearly  £19
million of cash in the bank at 31st December 2007.

The Group's successful and rigorous  active management of its  mining
interests has again produced impressive results.

Strategy and Progress

The  Group's  overriding  corporate  strategy  remains  to   maximise
shareholder value by:-


  * Developing royalty flows from its strategic mining interests
  * Increasing the value and diversification of those interests
  * Pursuing a progressive dividend policy

The Group has made substantial progress in all three areas during
2007:-


  * On 23rd August 2007 the Group announced the acquisition of a
    package of royalty interests in the Athabasca Basin in Canada.
    The properties covered by the royalty interests total
    approximately 4.8 million acres and are currently operated by a
    number of listed Canadian companies.  The Athabasca Basin is
    considered to be highly prospective for uranium exploration and
    production and currently hosts large, high grade uranium mines
    and deposits.  The Group issued 3.125 million new shares in
    consideration for these assets. More recently, the Group has
    invested in a number of projects using a form of non-redeemable
    loan stock convertible either into equity or future royalties on
    development of a mine.



  * The Group's strategic investments and cash have increased in
    value by nearly 50% from £77 million to £115 million as at 31st
    December 2007. The recent valuation of the Group's coal royalties
    raises the Group's total assets to £178 million with no debt.
    This does not include any excess over cost attributable to the
    real value of the Group's substantial private coal and other
    mining interests in British Columbia and Australia.



  * The Group's strategy of paying a substantial proportion of its
    earnings as dividends to shareholders continues with a final
    dividend of 4.35p per share, an increase of 16% over last year.
    As in previous years a scrip dividend alternative will be
    available to shareholders. The Directors continue to increase
    their investment in the Group by opting to take shares rather
    than cash on a substantial proportion of their holdings.

The Group's quoted  equity interests  disclosed on the  LSE, ASX  and
TSX, where initial equity stake disclosure levels are 3%, 5% and  10%
respectively, amount  to £73  million in  twenty different  holdings.
 The balance  of quoted  holdings of  £13  million is  made up  of  a
further thirty  incubator  investments.   The  split of  the  Group's
strategic interests by  commodity is  now on the  Group's website  at
www.anglopacificgroup.com where all the  equity disclosures can  also
be accessed.

The Group continues its active, merchant banking approach to projects
by providing specific  business and financial  support to  management
thereby reducing  some  of  the  risks  associated  with  the  mining
industry.

Outlook

The extent to  which internal  demand within the  Chinese and  Indian
economies can supplement  their exports  to Europe and  the USA  will
dictate future demand for  metals and therefore  the outlook for  the
mining sector.  In  this respect the Group  remains confident in  its
strategy of exposure to  a range of energy,  precious and base  metal
opportunities.

The recent  setbacks in  the markets  due to  liquidity problems  and
fears of recession have  made investors more  risk averse and  mining
finance harder to raise from  conventional lenders.  In this  regard,
the Group's increased liquidity and active management policy leave it
well positioned  to  secure new  royalty  flows and  to  continue  to
develop its mining interests.  As part of this strategy the Group  is
in the process of expanding its in-house mining and technical team.

The Group is  confident that recent  higher prices for  coal will  be
maintained for  the medium  term  which should  be reflected  in  the
Group's coal royalty receipts.

In conclusion, I would like to thank shareholders for their continued
support and the directors  and staff for all  their hard work  during
the year and for another record set of results.

P.M. BOYCOTT
Chairman
27th February 2008



                                                     2007      2006
                                                     £'000     £'000

Royalty income                                        8,439    10,472
Other operating income                                  191       266
Profit on sale of mining and exploration
interests                                            25,612    13,322
Finance income                                          623       232
                                                     34,865    24,292

Net operating expenses                              (1,097)   (2,183)
Profit before tax                                    33,768    22,109

Tax                                                 (4,028)   (2,811)
Profit attributable to equity holders                29,740    19,298


Basic earnings per share (note 1)                    28.72p    19.12p

Fully diluted earnings per share (note 1)            28.72p    19.11p


Turnover and profit before tax are derived from the Group's
continuing operations.

                                                     2007      2006
                                                     £'000     £'000

Non-current assets
Property plant and equipment                            832       838
Coal royalties                                       60,874    47,868
Investments in subsidiary undertakings                    -         -
Mining and exploration interests                     95,750    67,317
                                                    157,456   116,023

Current assets
Trade and other receivables                           1,874     1,834
Cash at bank                                         18,904     9,836
                                                     20,778    11,670

Total assets                                        178,234   127,693


Current liabilities
Taxation                                              2,538     1,414
Trade and other payables                                262       255
                                                      2,800     1,669

Non-current liabilities
Deferred tax                                         19,252    14,530
                                                     19,252    14,530

Total liabilities                                    22,052    16,199

Capital and reserves attributable to shareholders
Share capital                                         2,113     2,032
Share premium                                        17,742    12,112
Coal royalty revaluation reserve                     40,899    35,403
Investment revaluation reserve                       33,104    27,078
Share based payment reserve                              48        27
Foreign currency translation reserve                  2,224   (1,930)
Special reserve                                         632       632
Retained Earnings                                    59,420    36,140
                                                    156,182   111,494

Total equity and liabilities                        178,234   127,693



                                                        Foreign
                              Coal   Invest-   Share     Cur-
                             royalty   ment    based    rency             Re-
               Share Share   reva-    reva-     pay-    trans-          tained
                ca-   pre-  luation  luation    ment    lation  Special  ear-    Total
               pital  mium   reserve  reserve  reserve  reserve reserve  nings   equity
               £'000 £'000   £'000    £'000    £'000    £'000    £'000   £'000   £'000

Balance at 1st
January 2006   2,005 11,338   41,211    5,180       12    1,321     632  22,361   84,060
Changes in
equity
 for 2006
Coal
Royalties:
   Royalties
   valuation
   movement
   taken to
   equity          -      -  (5,792)        -        -  (3,055)       -       -  (8,847)
   Deferred
   tax
   on
   valuation       -      -     (16)        -        -      726       -       -      710
Available-for-
sale
investments:
   Valuation
   movement
   taken to
   equity          -      -        -   28,349        -    (575)       -       -   27,774
   Deferred
   tax
   on
   valuation       -      -        -  (1,382)        -     (63)       -       -  (1,445)
   Transferred
   to
   income
   statement
    on
   disposal        -      -        -  (5,069)        -        -       -       -  (5,069)
Foreign
currency
translation        -      -        -        -        -    (284)       -       -    (284)
Net income
recognised
direct
into equity        -      -  (5,808)   21,898        -  (3,251)       -       -   12,839
Profit for the
period             -      -        -        -        -        -       -  19,298   19,298
Total re-
cognised
income
 and expenses      -      -  (5,808)   21,898        -  (3,251)       -  19,298   32,137
Dividends          -      -        -        -        -        -       - (5,519)  (5,519)
Scrip Dividend     9    580        -        -        -        -       -       -      589
Issue of share
capital
on exercise of
options           18    194        -        -        -        -       -       -      212
Equity share
options
issued             -      -        -        -       15        -       -       -       15
Balance at 1st
January 2007   2,032 12,112   35,403   27,078       27  (1,930)     632  36,140  111,494
Changes in
 equity
for 2007
Coal
Royalties:
   Royalties
   valuation
   movement
   taken to
   equity          -      -    8,759        -        -    4,247       -       -   13,006
   Deferred
   tax
   on
   valuation       -      -  (3,263)        -        -  (1,134)       -       -  (4,397)
Available-for-
sale
 investments:
   Valuation
   movement
   taken
   to equity       -      -        -   24,778        -      937       -       -   25,715
   Deferred
   tax
   on
   valuation       -      -        -    (319)        -       15       -       -    (304)
   Transferred
   to
    income
   statement
   on disposal     -      -        - (18,433)        -        -       -       - (18,433)
Foreign cur-
rency
translation        -      -        -        -        -       89       -       -       89
Net income
recognised
direct into
equity             -      -    5,496    6,026        -    4,154       -       -   15,676
Profit for the
 period            -      -        -        -        -        -       -  29,740   29,740
Total recog-
nised
income and
expenses           -      -    5,496    6,026        -    4,154       -  29,740   45,416
Dividends          -      -        -        -        -        -       - (6,460)  (6,460)
Issue of share
 capital          18  1,350        -        -        -        -       -       -    1,368
Scrip Dividend    63  4,280        -        -        -        -       -       -    4,343
Equity share
 options
issued             -      -        -        -       21        -       -       -       21
Balance at
31st

December 2007  2,113 17,742   40,899   33,104       48    2,224     632  59,420  156,182



                                                    2007       2006
                                                   £'000      £'000

Cashflows from operating activities
Profit before taxation                              33,768     22,109
Adjustments for:
Interest received                                    (623)      (232)
Unrealised foreign currency loss / (gain)               89      (284)
Depreciation of property, plant and equipment           10         10
(Gain) on  disposal of  mining and  exploration
interests                                         (25,612)   (13,322)
Inter-company dividends                                  -          -
Share based payments                                    21         15
                                                     7,653      8,296
(Increase)  /  Decrease  in  trade  and   other
receivables   excluding   amounts   due    from
subsidiary companies                                  (40)        715
Increase  /  (Decrease)  in  trade  and   other
payables                                                 7      (340)
Cash generated from operations                       7,620      8,671
Income taxes paid                                  (2,883)    (2,990)
Net cash from operating activities                   4,737      5,681

Cash flows from investing activities
Proceeds on disposal of mining and exploration
interests                                           44,945     30,024
Purchase of mining and exploration interests      (36,145)   (27,180)
Interest received                                      623        232
Net cash used in investing activities                9,423      3,076

Cash flows from financing activities
Proceeds from issue of share capital                     -        212
Dividends paid                                     (5,092)    (4,930)
Net financing of related entities                        -          -
Net cash used in financing activities              (5,092)    (4,718)

Net increase in cash and cash equivalents            9,068      4,039

Cash and cash equivalents at beginning of
period                                               9,836      5,797

Cash and cash equivalents at end of period          18,904      9,836



1. Earnings per ordinary  share is calculated  on the Group's  profit
after tax  of  £29,740,000  (2006:   £19,298,000)  and  the  weighted
average number  of shares  in issue  during the  year of  103,546,147
(2006:  100,949,018).

The diluted earnings  per ordinary  share is calculated  on a  profit
after tax of £29,740,000  (2006: £19,298,000) and 103,565,904  shares
(2006:  100,963,278).  The   dilutive  effect  is   due  to   options
outstanding under the Employee Share Option Scheme at the year end.

2. The  above figures  do  not constitute  full accounts  within  the
meaning of Section 240 of the Companies Act 1985. The figures for the
year ended 31st December 2006 constitute abridged accounts  extracted
from the published accounts for the  year which have been filed  with
the Registrar  of Companies  and on  which the  auditors' report  was
unqualified and did not contain  a statement under Section 237(2)  or
(3) of the Companies Act 1985.  The audit opinion on the accounts for
the year ended 31 December 2007 has not yet been signed.