Interim Results

Anglo Pacific Group PLC
12 September 2003



                            Anglo Pacific Group PLC

             Interim Report for the six months ended 30th June 2003

                               CHAIRMAN'S REVIEW

RESULTS

I am pleased to report that our coal royalty interests are now valued at £38.8
million as of June 2003 which is over £10 million more than the valuation at
31st December 2002.

Our cash and mining operational interests and quoted stakes in gold, diamond and
PGM projects were valued at 30th June 2003 at circa £7.6 million and currently
show a healthy unrealised profit over book value.

We will announce our interim dividend in November 2003.

Following reduced royalty receipts from our Australian coal mining interests,
Group profits before tax for the six months ended 30th June 2003 were £1,738,000
compared to £2,900,000 for the same period last year. Profits after tax were
£1,245,000 compared to £1,979,000 with earnings per share for the half year of
1.42p compared to 2.27p.

Our coal royalty is shared with the Queensland Government and recent output has
been mainly from the Crown's area of the coal deposit rather than the privately
owned area. This accounts for the drop in our coal royalty receipts over the
last six months. Mining will be more from the privately owned ground later this
year.

OPERATIONAL REVIEW

COAL ENERGY INTERESTS

Coal royalties from the two mines in Queensland, Australia, were £1.88 million,
(2002 £3.3 million).

The independent valuation of the coal royalty in June 2003, based on a net
present value of the pre-tax cashflow discounted at a rate of 7%, was £38.8
million (A$95.4 million) compared to £28.7 million (A$81.4 million) at 31st
December 2002. At present the net royalty income is taxed in Australia at 30%.

We have increased our holdings of Canadian coal deposits and coal bed methane
interests.

GOLD, DIAMOND AND PLATINUM GROUP METALS

Amongst other mining interests, the Company still has substantial stakes in
Kirkland Lake Gold and Platinum Australia.

Kirkland Lake is now in production which has been reflected in a sharp rise in
its market capitalisation.

Platinum Australia recently announced the postponement of the start of mining at
its Panton project in Western Australia due to lower palladium prices and the
strong Australian dollar. Despite this setback, we continue to be positive about
this project and have been increasing our holding at the lower levels.

More information on these projects and our other mining interests can be found
on the Group's website at www.anglopacificgroup.com .

OUTLOOK

Output from Queensland's coal deposits is at record levels and the outlook for
prices for coking and steaming coal remains encouraging after recent rises. This
is reflected in the increased valuation of our coal royalty and the continued
high output from the two mines operated by BHP Billiton and Rio Tinto.

With the recent strong dollar and higher gold price, the Board remains confident
in its strategy of acquiring further stakes in gold, diamond and PGM projects
that can lead to capital appreciation and increased royalty flows for the Group.

The Board's strategy is to pay a proportion of its royalty cashflow as dividends
to shareholders whilst endeavouring to make full use of its substantial tax
losses.



P.M.Boycott

Chairman

12th September 2003


Anglo Pacific Group PLC

CONSOLIDATED PROFIT AND LOSS ACCOUNT

FOR THE SIX MONTHS ENDED 30th JUNE 2003

                               6 months to    6 months to      Year to

                                 June 2003      June 2002    Dec. 2002

                                     £'000          £'000        £'000

Turnover

Continuing operations                1,874          3,284        5,802

Discontinued operations                  0            123          142

                                     1,874          3,407        5,944

Cost of sales

Discontinued operations                  0           -144         -169

                                         0           -144         -169

Gross profit                         1,874          3,263        5,775

Continuing operations

Administrative expenses               -419           -419         -733

Profit on disposal of                  158              0            7
investments

Other operating income                  56             46          120

Operating profit from                1,669          2,911        5,196
continuing operations

Discontinued operations

Administrative expenses                  0            -47          -57

Operating loss from                      0            -68          -84
discontinued operations

Total operating profit               1,669          2,843        5,112

Profit on disposal of                    0              0           75
subsidiaries

Net interest received                   69             57          148

Write down of assets                     0              0         -144

Profit on ordinary activities        1,738          2,900        5,191
before tax

Taxation on ordinary                  -493           -921       -1,631
activities

Profit for the financial             1,245          1,979        3,560
period

Dividends                                               0       -1,525

Retained profit for the              1,245          1,979        2,035
financial period

Earnings per share                    1.42p          2.27p        4.09p

Fully diluted earnings per            1.42p          2.22p        4.03p
share

STATEMENT OF CONSOLIDATED RETAINED PROFITS



                                     £'000         £'000         £'000

At 1 January - Balance b/fwd         4,553        -6,170        -6,170

Capital reconstruction                   0             0         9,320

Tfr to Special Reserve                   0             0          -632

Profit for the period                1,245         1,979         2,035

Balance c/fwd                        5,798        -4,191         4,553


Anglo Pacific Group PLC

CONSOLIDATED BALANCE SHEET

As at 30th June 2003

                                   30th June 2003       31st December
                                                            2002

                                   £'000     £'000     £'000     £'000

Fixed assets

Tangible assets                                838                 839

Coal royalties (at valuation)               28,713              28,713

Other investments (at cost)                  4,013               2,910

                                            33,564              32,462

Current assets

Debtors                            1,094               1,091

Cash at bank and in hand           2,458               3,766

                                   3,552               4,857

Current liabilities

Taxation                            -495                -823

Creditors - amounts falling due     -248                -125
within one year

Dividends payable                   -569              -1,525



Net current assets                           2,240               2,384



Total assets less current                   35,804              34,846
liabilities

Creditors - amounts falling due
after more than one year

Deferred Tax                        -114                -411

                                              -114                -411

                                            35,690              34,435



Capital and reserves

Share capital                                1,749               1,749

Share premium                                  420                 420

Revaluation reserve                         27,000              27,000

Foreign currency translation                    91                  81
reserve

Special reserve                                632                 632

Profit and loss account balance              5,798               4,553

Equity shareholders' funds                  35,690              34,435

Notes

1.      Fixed asset investments
     
(a)     Coal Royalty Investments

                                                                £000's

        At 1st January 2003 and 30th June 2003                  28,713


        The Group's coal royalty investments comprise the Kestrel and Crinum
        coal royalties.

        The Company commissioned a valuation of the coal royalties in June 2003,
        based on a net present value of the pre-tax cashflow discounted at a
        rate of 7%, which produced a valuation of £38.8 million (A$95.4
        million), a surplus of £10.1 million over the book amount. At present
        the net royalty income is taxed in Australia at a rate of 30%. Were the
        coal royalties to be realised at the revalued amount there are £12.3
        million (A$30.4 million) of capital losses potentially available to
        offset against taxable gains.

        Neither the revalued amounts nor the related potential tax liabilities
        are incorporated in the accounts.

(b)     Other investments


                                                                        £000's

        At 1st January 2003                                              2,910

        Additions                                                        1,594

        Disposals                                                         (491)

        At 30th June 2003                                                4,013

        Quoted investments                                               3,941

        Unquoted investments                                                72

                                                                         4,013

        The market value of the quoted investments at 30th June 2003 was
        £5,223,000. The directors' valuation of the unquoted investments was
        £72,000.

3.      Basis of preparation

        These unaudited accounts, which do not constitute statutory accounts
        have been prepared using accounting policies set out in the Group's 2002
        statutory accounts. The financial statements have been subject to a
        review by the Group's auditors. The 2002 accounts received an
        unqualified auditors' report and have been delivered to the Registrar of
        Companies.

4.      Earnings per ordinary share

        The earnings per ordinary share is calculated on the Group's profit
        after tax of £1,245,000 and 87,462,955 shares. Fully diluted earnings is
        calculated on a profit after tax of £1,261,000 and 88,873,944 shares.


This statement will be sent to shareholders and will be available at the
Company's registered office at 29 Albemarle Street, London W1S 4JB.

Anglo Pacific Group PLC

CONSOLIDATED CASH FLOW STATEMENT

FOR THE SIX MONTHS ENDED 30th JUNE 2003

                                                            Year ended

                                Six months    Six months          31st

                                ended 30th    ended 30th      December

                                 June 2003     June 2002          2002

                                     £'000         £'000         £'000

Net cash inflow from operating       1,644         1,821         5,029
activities

Interest received (less paid)           69            57           148

Overseas tax paid                    -1118          -477          -995

Capital expenditure and               -947          -649         -2986
financial investment

Disposal of a subsidiary                 0             0           268

Equity dividends paid                 -956             0             0

Net cash inflow before              -1,308           752         1,464
financing

Net cash inflow from                     0             0            90
financing

(Decrease) / increase in            -1,308           752         1,554
cash

RECONCILIATION OF OPERATING PROFIT TO OPERATING CASH FLOW

                                                            Year ended

                                Six months    Six months          31st

                                ended 30th    ended 30th      December

                                 June 2003     June 2002          2002

                                     £'000         £'000         £'000

Operating profit                     1,669         2,843         5,112

Depreciation                             3            22            30

(Gain) on sale of tangible            -158           -13            -7
fixed assets

Net decrease / (increase) in           130         -1031          -106
working capital

                                     1,644         1,821         5,029

INDEPENDENT REVIEW REPORT TO ANGLO PACIFIC GROUP PLC

Introduction

We have been instructed by the company to review the financial information set
out on pages 2 to 6 and we have read the other information contained in the
interim report and considered whether it contains any apparent misstatements or
material inconsistencies with 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 Listing Rules
of the Financial Services Authority require that the accounting policies and
presentation applied to the interim figures should be consistent with those
applied in preparing the preceding annual accounts except where any changes, and
the reasons for them, are disclosed.

Review work performed

We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board. A review consists principally of making
enquiries of group management and applying analytical procedures to the
financial information and underlying financial data and based thereon, assessing
whether the accounting policies and presentation have been consistently applied
unless otherwise disclosed. A review excludes audit procedures such as tests of
controls and verification of assets, liabilities and transactions. It is
substantially less in scope than an audit performed in accordance with Auditing
Standards and therefore provides a lower level of assurance than an audit.
Accordingly we do not express an audit opinion on the financial information.

Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30th June 2003



BAKER TILLY


Chartered Accountants

274 Sauchiehall Street

Glasgow

G2 3EH

12h September 2003






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