Results for the Year ended 31 December 2010

19th April 2011 GB00B23JN426/GBP/PLUS-exn Oracle Coalfields PLC ("Oracle" or the "Company") Results for the Year ended 31 December 2010 Oracle Coalfields (PLUS: ORCP), the UK developer of an estimtaed 1.4 billion tonne coal resource in the south- eastern desert of Sindh Province, Pakistan, today announces results of the Company and the Group for the year ended 31 December 2010. Period Highlights * Placing raised £2 million during the course of 2010. This includes an investment of over £1 million by Regency Mines PLC (AIM:RGM), a mining explorer and developer with interests in Western Australia, Queensland and Papua New Guinea, which now holds approximately 10% of the enlarged share capital of Oracle Coalfields. * Work continued throughout the year on the studies for the Bankable Feasibility Study (BFS) on the Block VI licence, including the Environmental & Social Impact Assessment (ESIA). * Appointment of internationally reputed independent consultants to oversee drilling programme and completion of feasibility study to bankable standard. * License extended by the Coal and Energy Development Department for an additional year. Post Period Highlights * Listing on the London Stock Exchange's Alternative Investment Market (AIM) on Wednesday 20th April 2011 * Successful Placing of £3 million. Shahrukh Khan, Chairman and CEO of Oracle Coalfields, commented: "It has been a significant year for us where we have continued to make good progress in the development of Block VI coal deposit in the Thar Coalfield of Southern Pakistan. As a PLUS listed company we managed to raise funds and attract supporters of the stock and our vision of building Pakistan's first coal producing mine. To this end, we have appointed internationally recognised and respected consultants to work towards the Bankable Feasibility Study. "In addition, and post results we have announced our intention to list on the Alternative Investment Market. This has been one of our goals and we are delighted at the support we received, culminating in the company being oversubscribed and raising £3 million. We look forward to the forthcoming year with optimism." For further information contact: Oracle Coalfields PLC Shahrukh Khan, Chairman and CEO Telephone: +44 (0) 1366500722 St Helens Capital Partners LLP Duncan Vasey or Mark Anwyl Telephone: +44 (0) 20 7368 6959 Blythe Weigh Communications Ana Ribeiro or Matthew Neal Telephone: +44 (0) 20 7138 3206 / (0) 20 7138 3224 The Directors present their report with the financial statements of the Company and the Group for the year ended 31 December 2010. Review Over the past year, Oracle Coalfields continued to make good progress towards meeting its objective of delivering a cost-effective coal mine on the Block VI coal deposit in the Thar Coalfield of Southern Pakistan. The Company's progress continues to attract public attention because of the pressing need to increase local fuel production and address the deficit in power generation. This is particularly important for Karachi, an industrial hub of more than 15 million people located in the Sindh Province, popular discontent and industrial disruption resulting from the power deficit remains a key area of concern for the Pakistan authorities. Block VI, Thar Coalfield, Sindh Province Oracle Coalfields' 80% owned Pakistan subsidiary, Sindh Carbon Energy Limited, was granted the 66.1 square kilometre Block VI licence of the Thar Coalfield by the Mines and Mineral Development Department, Government of Sindh, in November 2007 for an initial period of three years. During 2010 the licence was extended for a further year by the Coal & Energy Development Department (formerly the Mines & Mineral Development Department). It is planned to convert this into a Mining Lease during 2011. Block VI is located in the Sindh desert: - Situated 380 km east from Karachi, Sindh Province - Block VI is some 32 km from the small town of Islamkot with close proximity to roads and power networks - In 2006 China NE Geological Survey Bureau (CNGB) drilled 35 boreholes, a total of 9,852 metres, of which 5,986 metres are cored, validated by independent consultants to take it to a JORC resource standard - All boreholes have been geophysically logged - log suite: natural gamma, density, resistivity, and calliper - Good infrastructure including roads and an electricity grid. As per the pre-feasibility study, the coal at Block VI has an average calorific value of 3,537 kcal/kg, a moisture content of 40%, which can be reduced to 14% by drying, a sulphur level of 1.2%, and an ash content of 7.5%, which is low when compared with typical lignite coals. Coal tests were carried out by TES Bretby Ltd in the UK, and the Fuel Research Centre, part of Pakistan Council of Scientific and Industrial Research (PCSIR), Karachi and rock samples were tested by Strata Surveys Ltd of the UK. The coal quality is suitable for power plants and industry, particularly in the cement sector. The work programme for developing the 1.4bn tonnes Block VI coal deposit is proceeding, with the target of completing the Definitive Feasibility Study and the Bankable Feasibility Study in 2011. Wardell Armstrong International (WAI) was appointed to prepare the Environmental and Social Impact Statement which is now well advanced. In addition the Company appointed SRK Consulting (UK) Ltd. (SRK) to carry out an independent review of the technical work on the feasibility studies carried out by our main technical consultants, Dargo Associates Ltd. (Dargo). In addition SRK will prepare a definitive feasibility study to bankable standard. Aquaterra, an international water and environmental company is working with SRK on the hydrogeological assessment of the project. The pre-feasibility study prepared by Dargo in 2008 confirmed that the proposed open pit mining operation will require the dewatering of the two aquifers lying above the main coal seam in Block VI. Prior to the start of the Definitive Feasibility Study the Company completed a drilling programme in 2008 to verify previous work done on Block VI and also enable the Company to take the project to the internationally recognised JORC standard, all of which was overseen by Dargo. Following is the summary resource table for Block VI: Lignite coal resources/reserves for Block VI (JORC) Note: Mt = Million tonnes Overburden Lignite coal Lignite coal measured resources proved reserves Mm3 Mt Mt Block VI total area 10,200 1,423 - Total Mine area 3,673 653 - Phase I Open pit area 885 - 128 Phase II Open pit area 1,685 - 243 Source: Dargo Associates Limited During 2009 Oracle Coalfields entered into Memoranda of Understanding with the Karachi Electric Supply Company (KESC) and Lucky Cement Limited. Supplies to the cement industry, especially to Lucky Cement Limited, of coal for use as industrial fuel will facilitate early production. Coal production could be expanded to fuel one or more power plants from the time that they are commissioned. This will also diversify the income sources for the Company. Subject to the satisfactory completion of the feasibility studies, raising the necessary capital and taking a Final Investment Decision, production levels for the coal mine are currently projected at 1.0 million tonnes from 2013 to a target level of 4.0 million tonnes over a three year period. The mine remains based on an open pit design and the most cost-effective way to operate the mine initially has been projected as a truck and shovel operation. The Company was able to raise additional funds of over £2 million on the London market to fund the on-going costs of the feasibility studies during the year and at the close of the year had a balance of over £1.5 million cash in hand. Karachi Electric Supply Company (KESC) Oracle Coalfields signed a Memorandum of Understanding in December 2009 under which KESC would develop a mine-mouth power station which would be owned and operated by a separate power generating company. The intention would be for KESC to take a Final Investment Decision on the power plant at the same time as the Company takes a Final Investment Decision on the mine development. KESC is a major local power utility in the Sindh Province and third largest power utility in Pakistan. - A public listed power company - Seeking to increase installed capacity to address demand growth of 7-8% pa Lucky Cement Limited In addition, Oracle Coalfields is looking for additional income with the intention to generate early cash flow for the Company and shorten the lead time to coal production. The Company therefore explored the opportunity to enter potential agreements with local cement companies. Pakistan's cement sector is large and is a major user of coal, mainly imported, to support its cement works. A Memorandum of Understanding with Lucky Cement was executed in December 2009. Entering relationships with Lucky Cement and KESC is an essential step to our objective of becoming a leading supplier of coal in Pakistan. Oracle Coalfields is also able to enter relationships with additional power and cement companies as the Company would be able to increase coal supply from its Block VI mine to meet demand. Drilling Programme The programme of field work as part of the Bankable Feasibility Study (BFS) on Block VI Thar Coalfield has progressed well. A programme of 27 geological boreholes and 8 water boreholes have been drilled to further identify the nature of the overburden, the thickness of the main lignite seam and dewatering requirements respectively for the purpose of Mine Design, part of the feasibility study. During this period the Company appointed local drilling contractors, Deep Rock Drilling (Pvt) Limited and for hydrogeology the local dewatering contractors, Geoscience Associates. The drilling programme is overseen by Dargo in consultation with SRK and the hydrogeology programme is being overseen by Aquaterra. Since the start of the field work programme, visits have been made by the team of SRK, Dargo and Aquaterra. The first was a preliminary visit held with project geologists appointed by Oracle, Deep Rock Drilling (Pvt) Limited and Geoscience Associates. The purpose of the first visit was to obtain an understanding of the logistical and general site conditions and project parameters, to discuss the planned drilling programme and sampling requirements for the open pit geotechnical study and to discuss the integration of the geotechnical and hydrogeological disciplines. On site, SRK inspected the location of all the Phase 1 geotechnical holes and the preferred site for the dewatering test boreholes was also identified by Aquaterra. Geotechnical and Sub-crop drilling In the second visit, the drilling programme commenced and all geological boreholes have been completed as well as lithologically and geophysically logged. Four fully cored boreholes for geotechnical testing were completed and sampled as part of the 27 geological boreholes programme. All past and current borehole locations and elevations are being surveyed and samples of the lignite obtained from the boreholes have been sent for analysis to Bahria University in Karachi. The coal quality tests are under ASTM standard. Phase 1 - Mine area Within the Block VI covering an area of 66.1 square kilometres, the most prospective mining area based on thickness of coal seam and favourable stripping ratio for the opencast mining operation is to the south central and south west part of the block covering an area of approximately 20 square kilometres. This mining area is in two phases of development, Phase 1 and Phase 2. The focus at the moment is on Phase 1 covering an area of approximately 10 square kilometres where all the work programme is underway, i.e. the 27 geological boreholes (4 geotechnical boreholes and 23 sub-crop drilling) and separately 8 water boreholes (4 test wells and 4 observation wells). The mining in Phase 2 will commence after Phase 1 mining has been fully exhausted. This will be detailed in the feasibility study. Hydrogeology drilling Water is an important element of the project, as dewatering will be required to enable mining to proceed and water supply will be required for both the power station and mine. Hydrogeological studies have been commenced by Aquaterra for both the feasibility study and ESIA. Meetings were held with KESC and Non-Governmental Organisations (NGOs) representing local communities in the project area to discuss the scope of work, agree the approach and volumes of water required for the power plant. The first phase of work involves the drilling of boreholes to improve understanding of the hydrogeology of the site. Four test wells and four observation wells have been drilled successfully in total. GeoScience Associates had been commissioned to drill the boreholes under the supervision of Aquaterra. A study on the local village water supplies is being undertaken simultaneously. Once testing is complete analysis will be undertaken to confirm the rate of dewatering and the availability of water for the power plant and mine supplies. Environmental and Social Impact Assessment (ESIA) During the period a visit was made by the team from Wardell Armstrong International for the purpose of the ESIA. Wardell Armstrong is now working on the baseline study which is the second phase of the ESIA. All the aspects in the baseline study identified and briefly dealt with in the scoping report is being comprehensively elaborated, requiring a number of visits by personnel of Wardell Armstrong to have interaction with people, including Non- Governmental Organisations operating in Tharparkar, relevant to their studies and to carry out further assessments of the environment and the location. Khorewah, Indus East, Sindh Province In early February 2007 the Company's subsidiary, Sindh Carbon Energy Limited, was granted an exploration licence over 100 square kilometres of the KhoreWah coalfield in the Indus East region of the Sindh Province of Pakistan. The depth of the coal seam is such that underground mining would be necessary in order to make the project economic. The granting of the more advanced and geologically attractive Block VI project in the Thar Coalfield has seen the development of the KhoreWah licence deferred in order to utilise available funds on the Thar Coalfield. Other initiatives Oracle Coalfields continue to monitor other possible industrial uses of Thar coal, in addition to power generation and in the domestic cement industry. The Pakistan Power Market If the Gross Domestic Product (GDP) of the country grows as forecast by an average 6-8% per annum over the next 10 years, according to government sources, the country would require approximately 50,000 MW in the next 10 years. There is certainly a major shortfall in electricity supply. Coal has an important role to play in the country's energy mix in the coming years and it is forecast that coal would represent about 17% of all feedstock by 2025 (currently it is less than 1%). Principal risks and uncertainties facing the Group As the feasibility studies for the mine are now well advanced, the principal risks and uncertainties of the Company include those summarised below: - the ability to raise sufficient funds to continue to develop Block VI - the conclusion of production off-take agreements at requisite commercial rates to justify the project investment - the prompt sourcing of specialist mining equipment to ensure earliest project realisation - the stabilisation of the on-going political situation so as to ensure the vital interests and support of major financial lenders for the project - the maintenance of current government legislation and regulations that have so far favoured the development of the project as a flagship foreign investment necessary to strengthen the country's economy - infrastructure development plans for the Thar region being funded and completed by the relevant federal and/or provincial government authorities - the mitigation of environmental and social concerns Financials The financial results for the twelve months to 31 December 2010 show a loss for Oracle Coalfields Plc Group of Companies after taxation of £221,589 (2009: £235,230) (Company: £217,614). At the period end, the Group had cash at bank and in hand of £1,506,475 (Company: £1,457,680) and total assets less current liabilities of £2,345,171 (Company: £2,347,065). The basic loss per share was 0.15p (2009: loss 0.20p). The loss is attributable to the development of the Company's coal licences in Pakistan and administrative expenses. Post-Period Development The Company has been able to complete the drilling programme on schedule as part of the feasibility study. A number of studies are underway for completion of the definitive feasibility to bankable standard. The Company is now considering listing on Alternative Investment Market (AIM) of the London Stock Exchange. The purpose of the Company listing on AIM is to raise its profile and reach out to a wider institutional investor audience in preparation for raising the larger investment required to bring the Block VI coal mine to development. Outlook The Board is pleased that the Block VI, Thar coal project Definitive Feasibility Study and the Bankable Feasibility Study are progressing well. The objective is to reduce project risks through these international quality feasibility studies. For this reason, independent international consultants have been appointed with experience in developing coal mine operations of this nature. The continued rises in world energy prices have strengthened the economic rationale for this project as the cost of alternative imported supplies of oil and coal increase. Although the security situation in Pakistan has remained fragile due to political and economic uncertainties, it is important to note that the Company's project area in Tharparkar has remained peaceful throughout. Geographically, the project area is distant from the north of the country where most of the unrest is concentrated. Furthermore, the national economy is being strengthened by substantial foreign aid in support of the Government's efforts to stabilise the political situation and boost investor confidence. Finally, the Board is grateful for the patience shareholders have shown in supporting the Company's management team during the feasibility phase. The Company also extends its thanks to the Mines and Minerals Development Department and Coal & Energy Development Department, Government of Sindh, the Thar Coal Energy Board and the Sindh Coal Authority for their continued assistance. The Company will continue to update the market on its progress. DIVIDENDS No dividends will be distributed for the year ended 31 December 2010. ON BEHALF OF THE BOARD: S Khan - Director Date: 4 April 2011 ORACLE COALFIELDS PLC GROUP OF COMPANIES (REGISTERED NUMBER: 05867160) CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2010 2010 2009 £ £ CONTINUING OPERATIONS Revenue - - Other operating income - 111 Administrative expenses (222,674) (236,157) OPERATING LOSS (222,674) (236,046) Finance income 1,085 816 LOSS BEFORE INCOME TAX (221,589) (235,230) Income tax - - LOSS FOR THE YEAR (221,589) (235,230) Loss attributable to: Owners of the parent (221,589) (235,230) Earnings per share expressed in pence per share: Basic -0.15 -0.20 Diluted -0.13 -0.16 ORACLE COALFIELDS PLC GROUP OF COMPANIES (REGISTERED NUMBER: 05867160) CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2010 2010 2009 £ £ LOSS FOR THE YEAR (221,589) (235,230) OTHER COMPREHENSIVE INCOME Exchange difference on consolidation 1,724 (16,143) Income tax relating to other comprehensive income - - OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX 1,724 (16,143) TOTAL COMPREHENSIVE INCOME FOR THE YEAR (219,865) (251,373) Total comprehensive income attributable to: Owners of the parent (219,865) (251,373) Non-controlling interests - - ORACLE COALFIELDS PLC GROUP OF COMPANIES (REGISTERED NUMBER: 05867160) CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31 DECEMBER 2010 2010 2009 £ £ ASSETS NON-CURRENT ASSETS Intangible assets 855,830 492,131 Property, plant and equipment 2,814 3,072 Investments - - Loans and other financial assets 63,645 63,186 922,289 558,389 CURRENT ASSETS Trade and other receivables 36,093 12,322 Cash and cash equivalents 1,506,475 5,859 1,542,568 18,181 TOTAL ASSETS 2,464,857 576,570 EQUITY SHAREHOLDERS' EQUITY Called up share capital 184,211 122,360 Share premium 3,284,291 1,309,043 Translation reserve (4,563) (6,287) Retained earnings (1,134,797) (913,208) 2,329,142 511,908 Non-controlling interests 16,029 16,029 TOTAL EQUITY 2,345,171 527,937 LIABILITIES CURRENT LIABILITIES Trade and other payables 119,686 48,633 TOTAL LIABILITIES 119,686 48,633 TOTAL EQUITY AND LIABILITIES 2,464,857 576,570 The financial statements were approved and authorised for issue by the Board of Directors on 4 April 2011 and were signed on its behalf by: S Khan - Director ORACLE COALFIELDS PLC GROUP OF COMPANIES (REGISTERED NUMBER: 05867160) COMPANY STATEMENT OF FINANCIAL POSITION 31 DECEMBER 2010 2010 2009 £ £ ASSETS NON-CURRENT ASSETS Intangible assets 370,184 241,399 Property, plant and equipment - - Investments 64,115 64,115 Loans and other financial assets 479,365 244,365 913,664 549,879 CURRENT ASSETS Trade and other receivables 48,826 21,652 Cash and cash equivalents 1,457,680 4,066 1,506,506 25,718 TOTAL ASSETS 2,420,170 575,597 EQUITY SHAREHOLDERS' EQUITY Called up share capital 184,211 122,360 Share premium 3,284,291 1,309,043 Retained earnings (1,121,437) (903,823) TOTAL EQUITY 2,347,065 527,580 LIABILITIES CURRENT LIABILITIES Trade and other payables 73,105 48,017 TOTAL LIABILITIES 73,105 48,017 TOTAL EQUITY AND LIABILITIES 2,420,170 575,597 The financial statements were approved and authorised for issue by the Board of Directors on 4 April 2011 and were signed on its behalf by: S Khan - Director The above is an extract from the full financial statements. A full version of the Report and Accounts are available on the PLUS website. The Directors of Oracle are responsible for the contents of this announcement. For further information contact: Oracle Coalfields PLC Shahrukh Khan, Chairman and CEO Telephone: +44 (0) 1366500722 St Helens Capital Partners LLP Duncan Vasey or Mark Anwyl Telephone: +44 (0) 20 7368 6959 Blythe Weigh Communications Ana Ribeiro or Matthew Neal Telephone: +44 (0) 20 7138 3206 / (0) 20 7138 3224 Oracle Coalfields plc

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