Interim Results for the six months ended 30 Jun...

30/09/2010 GB00B23JN426/GBP/PLUS-exn ORACLE COALFIELDS PLC ("Oracle" or the "Company") Interim Results for the six months ended 30 June 2010 PERIOD HIGHLIGHTS * Placing raised £1,041,690 (gross) * Work programme continues to make progress on the Bankable Feasibility Study (BFS), including the Environmental & Social Impact Assessment (ESIA) on the Block VI licence CHAIRMAN'S STATEMENT I am pleased to report that the Company continues to make progress towards meeting its objective of delivering a cost-effective coal mine, combined with power generation, on the Block VI coal deposit in the Thar Coalfield of Southern Pakistan. During the period the Company raised just over £1 million (gross) which will provide additional working capital for the business in respect of the Bankable Feasibility Study (BFS) on our flagship project in Block VI. The Placing was coordinated by Libertas Capital Corporate Finance Limited, a private investment banking partnership with head office in London. The net proceeds of the funds raised will allow the company to complete the work program on site which includes hydrogeology and geotechnical studies, sub-crop drilling and appointment of additional consultants of international repute to oversee the completion of the BFS. The project continues to attract the official support of the Pakistan government with assistance provided by the Coal & Energy Development Department (formerly Mines & Mineral Development Department), Government of Sindh and Thar Coal Energy Board in the Sindh Province. The Sindh government is giving active consideration to a canal link to provide additional water to the Thar Coalfield project area as well as to railway links, upgrading of electricity transmission lines, roads and airport. As in the past, all infrastructure investment is continuing to be undertaken by government funding. The relationship with Karachi Electric Supply Company (KESC) and Lucky Cement Limited remains sound and both local companies are eager to see the completion of the coal feasibility study to enter joint- development agreement and coal supply agreements respectively. There has been good level of information sharing between Oracle and KESC for the purpose of the BFS. During the half-year, Oracle has investigated other possible industrial uses for Thar coal, in addition to power generation and in the domestic cement industry. With new technologies being developed outside Pakistan to convert lignite coal into more valuable end products, the Company intends to monitor closely these initiatives for possible future applications in Pakistan. International Coal Market in first half of year Since the beginning of 2010, thermal coal prices have traded averaging US$75/tonne, a price level which compares to 2009 when an average price of US$60/tonne was more typical. According to various international reports, coal prices are expected to remain on course for further increases due to demand and in some cases have reached US$100/tonne. Overall, global coal consumption remains high and is an important commodity in the world's energy mix for power generation. Coal's share of world energy consumption rose to 29.4% with China remaining a major consumer of coal. As stated in our previous commentaries, the Company will not be directly affected by changes in the international spot market price for coal as our production will be confined to local market consumption. Financials The financial results of Oracle for the first six months interim period ending 30th June 2010 show a loss after taxation of £79,549 (2009: £122,235). At the period end, the Group had cash at bank and in hand of £977,913 and total assets less current liabilities of £1,387,206. The basic loss per share was 0.0648p (2009: loss 0.1031p). The loss is attributable to the development of the Company's coal licences in Pakistan and administrative expenses. Outlook The Board is pleased that the Block VI, Thar coal project Bankable Feasibility Study (BFS) is underway with various site studies and drilling already actively in progress. The objective is to de-risk the project guided by international principles and standards. The Company has appointed international consultants with experience in developing coal mine operations of this nature to ensure that the coal feasibility study is of highest quality and to prepare the Company for the larger fund raise to bring the coal mine to production. The half-year has seen a better environment for fund raising in the resources sector compared to 2009 and signs are that the market appetite is returning. Overall, the resources sector could see a revival in the development of projects globally. This, however, depends on the demand for commodities driven by the emerging economies, such as China and India, and on general market sentiment driven by the economies of the industrialised nations, particularly USA. In Pakistan, the political environment has been mixed, creating uncertainty in terms of the country's direction which is hindering economic growth. Added to this, the shortage of electricity is increasingly hampering industrial production and exports. The security situation in the country remains fragile, particularly in the northern part of Pakistan, however, following the army offensive in 2009, parts of the northern areas have become more stable once under army control. In spite of the current flooding tragedy affecting wide areas of the country the Company has been unaffected in maintaining its work programme and has been continuing to steadfastly progress on the BFS. Finally, the Board is grateful for the patience our shareholders have shown in supporting our management team in the realisation of our objectives during this period. We also extend our thanks to the Coal & Energy Development Department, Government of Sindh, and the Sindh Coal Authority for their continuing valuable assistance. We will continue to update the market on our progress. Shahrukh Khan Chairman The Directors of the issuer are responsible for the contents of this announcement. ENQUIRIES: Oracle Coalfields PLC Shahrukh Khan, Chairman Telephone: +44 (0) 1366500722 Email: s.khan@oraclecoalfields.com St Helens Capital Partners LLP Duncan Vasey or Mark Anwyl Telephone: +44 (0)20 7368 6959 Blythe Weigh Communications Ana Ribeiro / Tim Blythe Telephone: +44 (0)20 7138 3204 WEBSITE: www.oraclecoalfields.com ORACLE COALFIEDS PLC GROUP OF COMPANIES UNAUDITED RESULTS FOR THE PERIOD FROM 1 JANUARY 2010 TO 30 JUNE 2010 INCOME STATEMENT 6 MONTHS TO 6 MONTHS TO 30/06/2010 30/06/2009 £ £ CONTINUING OPERATIONS Revenue - - Administrative expenses (79,846) (122,759) _________ _________ OPERATING LOSS (79,846) (122,759) Finance costs (11) - Finance income 308 524 _________ _________ LOSS BEFORE TAX (79,549) (122,235) Taxation - - _________ _________ LOSS FOR THE PERIOD (79,549) (122,235) _________ _________ Basic loss per share (0.0648p) (0.1031p) Diluted loss per share (0.0536p) (0.0844p) STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2010 AT 30/06/2010 AT 30/06/2009 £ £ ASSETS NON-CURRENT ASSETS Intangible assets 506,967 473,442 Property, plant and equipment 2,903 3,455 Loans and other financial instruments 64,292 63,189 _________ _________ 574,162 540,086 _________ _________ CURRENT ASSETS Trade and other receivables 12,508 29,640 Cash and cash equivalents 977,913 108,337 _________ _________ 990,421 137,977 _________ _________ TOTAL ASSETS 1,564,583 678,063 _________ _________ EQUITY SHAREHOLDERS' EQUITY Called up share capital 162,916 122,360 Share premium 2,194,232 1,309,043 Translation reserve 13,073 - Retained earnings (999,044) (800,293) _________ _________ 1,371,177 631,110 Non-controlling interests 16,029 16,029 _________ _________ TOTAL EQUITY 1,387,206 647,139 _________ _________ LIABILITIES CURRENT LIABILITIES Trade and other payables 108,977 30,924 Financial liabilities - borrowings Non-interest bearing loans & borrowings 68,400 - _________ _________ TOTAL LIABILITES 177,377 30,924 _________ _________ TOTAL EQUITY AND LIABILITIES 1,564,583 678,063 _________ _________ Notes 1. The financial information for the period ended 30 June 2010 has not been audited and does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. It has however been subject to a review by the company's auditors. 2. Basic loss per share has been calculated using the weighted average number of shares of 122,807,804 (2009 - 118,593,406). Diluted loss per share has been calculated using the weighted average number of shares of 148,311,396 (2009 - 144,835,460). Oracle Coalfields plc

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