Interim Results

Vane Minerals PLC
12 September 2006



                               VANE Minerals Plc

                 Interim Report - Six Months to 30th June 2006


Highlights
     
•    During the six months to 30th June 2006, VANE Minerals became cash flow 
     positive as the production profile expanded at the Diablito silver/gold
     mine

•    Expansion of the uranium portfolio

•    Extension of Investigation Permits over 3,400 hectares were granted by the 
     Paraguayan Government for further evaluation of gold / copper prospects in
     Paraguay

•    Cash balances of £0.703m at 30th June 2006, virtually unchanged from the 
     31st December 2005 position with all exploration expenses covered from
     income

•    EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) for 
     the period was £69,000

Post Period End Highlights:
     
•    A surface drilling programme to further define and expand existing 
     resources was completed at the Diablito mine in early July

•    Planning further exploration work on 25 promising US uranium prospects

•    Plans in place for the construction of the Company's own mill on site near 
     to Diablito
     
•    Phase II drilling programme commenced in July at prospective Guadalcazar 
     gold prospect in Mexico
     
•    Successful issue of £750,000 in Convertible Loan Notes attracting 8% coupon 
     to fund the purchase of a Mill and Flotation plant at Diablito and to
     rapidly advance the uranium exploration programme


Michael Spriggs, Chairman of VANE Minerals Plc, commented: 'VANE Minerals'
exploration and development strategy remains firmly on course, underpinned by
the expanding cash flow being generated from Diablito, and the successful issue
of £750,000 of convertible loan notes.  The focus remains the precious metal
potential of our Mexican properties and our uranium projects in the western US,
but the Group remains sufficiently flexible to be able to evaluate rapidly and
efficiently new opportunities as they are identified.  The continuing buoyancy
of precious metals and other commodity markets underlines the Group's confidence
for the future.'

The full Chairman's Statement and the financial statements follow and can also
be found at: www.vaneminerals.com.


ENDS

VANE Minerals Plc                                       Ambrian Partners Limited
Matthew Idiens                                          Richard Brown
[phone]                                    [phone]
Parkgreen Communications                                Daniel Stewart & Co
Cathy Malins / Annabel Leather                          Dan Willmott
[phone]                                    [phone]





                              Chairman's Statement

I am pleased to present this review of the Group's activities for the six months
to 30th June 2006.

In January, a further extension, for one year, of the agreement with
Freeport-McMoRan Copper and Gold Company was negotiated. This gives VANE
Minerals access to Freeport's global exploration database (excluding Indonesia),
and continues to be one of the cornerstones of the Group exploration strategy.
Nearly all of the Freeport files have now been examined and numerous potential
prospects identified.

In addition, the Group maintained its efforts to generate and investigate other
projects identified in its key areas of operation during the first half of 2006.
Exploration and development continued on gold prospects in Mexico, and on
uranium properties in south-western USA. The regional exploration programme in
Paraguay continues.

Diablito Mine

The successful development of the Diablito silver/gold mine in Nayarit, Mexico,
continues to be the Group's main operating focus.  An expanded production
schedule is being established and, in the six month period to June, Diablito
generated revenues totalling US$1.85m.

Going forward, net income from the ore milled and concentrates sold from this
operation is estimated to average between US$420,000 and US$525,000 per month.
This is based on forecast production averaging 1,500-2,000 tonnes per month of
ore at grades 700-900 g/T silver and 3-5 g/T gold.

The 20-hole surface drilling programme completed in early July had two
objectives. It was designed to define more precisely the continuity of ore
between the widely spaced holes drilled in the initial evaluation of Diablito,
and to explore extensions of the Diablito vein system down-dip as well as along
strike. Meanwhile, production and development at Diablito continues via a series
of ramps being driven in the gently dipping vein.

VANE Minerals has established a small assay laboratory in the nearby town of
Acaponeta. This has proven very beneficial and has resulted in considerable
savings in the time and cost of ore analyses.

The present production arrangements involve toll milling at the Cosala mill,
located 350 km from the Diablito mine and sale of concentrates to an ore buyer
in Torreon. Given the possibility of a mine life extension, the Group has
examined other, more favourable potential treatment routes, including the
feasibility of establishing its own mill at a local site. As a result, part of
the additional funds raised (as referred to in the Highlights and detailed in
the Notes to the Accounts) will be utilised for the purchase and construction of
a mill and flotation plant close to the mine site. The initial target capacity
of the plant will be 100tpd, with the mine production rate currently at 50tpd,
this gives the board capacity to double production.

Guadalcazar

The initial geological appraisal of the Guadalcazar prospect in San Luis Potosi,
Mexico, was supported with a 12-hole diamond drilling programme which indicated
persistently anomalous gold values over a wide area.  The Group was sufficiently
encouraged by these results to schedule a further 7-hole drilling programme
which was completed in late July and assay results are expected to be available
in September 2006..

Minas Charay

The geological evaluation of the Minas Charay gold-silver property in Sinaloa,
Mexico, was completed during the period under review.

The Group had optioned this property originally on the basis that it offered the
potential for a large, low-grade, leachable gold target, and possibly a
localised high- grade precious metal vein system.

A 26-hole drilling programme carried out failed to confirm the large low-grade
target and was only successful in delineating a narrow high-grade precious metal
vein system.

The Group determined that the economics of hauling this ore to a mill appeared
marginal, whereas an on-site leaching ore could be profitable but would require
considerable time and effort to obtain the necessary permits and to secure
permission to use cyanide.

As understanding of this deposit developed, it became apparent that Minas Charay
is very different in character from Diablito. Accordingly, this project has been
assigned lower priority with all financial obligations being terminated pending
renegotiation with the local owner of the mineral rights to this property. The
project has always been seen by the board as a replacement for the Diablito
project should it have not been successful in providing the required cash flow.
However, as Diablito has been such a success for VANE, the Board feels that the
Mina Charay project's failings will not have a material effect on the company.

Paraguay

The Group successfully applied for extensions to January 2007 on the three
Investigation Permits. Geochemical and rock sampling results obtained to date
have provided ample grounds for warranting further work. The regional
exploration programme is now mostly focused on an area centred about 10 to 14
kilometres south of the large agricultural town of Katuete. Geochemical analyses
of the lateritic, in-place soils, combined with careful examination of panned
concentrates of both soils and stream sediments, now indicate that some of the
rolling hilly land around Itapo Creek is clearly anomalous in gold. The sampling
grid is now being reduced to better define specific targets for near-future
drilling. This regional exploration programme, backed by selective follow-up
work, is proving an extremely effective and low cost method of rapidly covering
large areas.

Uranium Programme

VANE Minerals' programme of uranium exploration was initiated on the basis of
the renewed strength of the uranium market and growing predictions of long-term
supply shortages. These observations are reflected in the continuing strength of
uranium oxide price, which has risen to its present level of US$52/lb, levels
not seen since the previous record price of $43.60/lb in the 1970s.

VANE Minerals is now devoting considerable effort towards the exploration and
development of its uranium properties in the Colorado Plateau Uranium District
in south-western US, where the Group has identified and acquired a number of
targets. The Group has now assembled sufficient data to warrant the definition
of drill programmes on a number of properties.

In the breccia pipe district of northern Arizona, 22 target areas have been
acquired including a number of properties on which previous drilling has
produced results that are encouraging to VANE Minerals. Breccia pipe deposits
are typically compact deposits containing economic grades of around 1% uranium
oxide (U3O8), each occurrence having the potential for between 1m and 6m lbs
U3O8, (based on Historical data reported by Energy Fuels Nuclear Inc).
Reconnaissance exploration has been completed and permits for drilling are being
obtained. The Company continues to identify favourable pipe targets and
anticipates acquisition of additional property. This campaign is supported by
technical programmes utilising satellite imagery to define targets in areas not
previously recognised as conducive to the existence of pipe structures, and
developing suitable geochemical techniques to recognise mineralised breccia
pipes.

In November 2005, the Group acquired the North Wash uranium property in
south-eastern Utah. Based on drill information obtained in the late 1970s by
Cotter Corporation, this project contains an inferred geological resource
(non-JORC) of 170,000 lbs of U3O8 and up to 750,000 lbs vanadium, the Board
believes the project has considerable additional potential and drilling is
planned on the project in Q1 2007, following the recent successful application
for permits.

VANE Minerals (US) has entered into an agreement with a private company, Happy
Jack Minerals covering the Happy Jack Mine and surrounding claims located in San
Juan County of south-eastern Utah in the Colorado Plateau Uranium District.
Between 1949 and 1982, the Happy Jack Mine, previously operated by Atlas
Minerals, produced 3.1 million lbs. U3O8 until along with most of the mines on
the Colorado Plateau it ceased production as a result of low uranium prices.

Based on historic drilling data, VANE (US) geologists have identified a resource
(non-JORC) of approximately 155,000 lbs U3O8 in several pods, some of which are
accessible via existing mine workings and could therefore be put into production
with minimal development work. The property agreement carries a production
royalty of 5% on minerals mined from within the original areas held by the
owner, and a production royalty of 2.5% on minerals mined from the additional
areas subsequently claimed.

A review of previous drilling results has revealed nine additional exploration
targets at Happy Jack, on which previous drilling intersected ore-grade
mineralisation that was never fully delineated by additional drilling or
sampling.. Negotiations continue to acquire additional attractive uranium
properties in southern Utah.

The Group recognises that the successful development of these uranium prospects
will depend on securing appropriate milling contracts for the treatment of mined
ore.  Negotiations are therefore already in progress with the mills serving
these former producing areas which are currently in the process of being
returned to active status.

Outlook

In the six months to 30th June 2006 VANE Minerals reported a net loss of
£0.345m, from revenue of £1.005m. At the end of the period, the Group's cash
resources stood at £0.703m.  Our exploration spend is currently running at
approximately £91,000 per month, and we expect this rate to continue in the
current half year.

VANE Minerals' exploration strategy remains firmly on course, underpinned by the
expanding cash flow being generated from Diablito, and the successful issue of
£750,000 of convertible loan notes (detailed in the Notes to the Accounts). The
focus of this programme remains the precious metal potential of our properties
in Mexico and our uranium projects in the western US, and in both areas we are
fortunate to have excellent field teams on the ground. At the same time, the
Group remains sufficiently flexible to be able rapidly and efficiently to
evaluate new opportunities as they are identified.  The continuing buoyancy of
precious metals and other commodity markets underlines this confidence.

We remain a well-funded exploration and development company, and we anticipate
further vigorous activity in the current half.

Michael Spriggs
Chairman
11th September 2005


Clark Arnold, Ph.D Geology, who is Director of Geology for VANE Minerals and
Kristopher K. Hefton, Chief Operating Officer VANE Minerals (US) LLC, BSc
Geology, who each meet the criteria of a qualified person under the AIM rule
guidance for mining, oil and gas companies, has reviewed and approved the
technical information contained within this statement.



VANE Minerals Plc
Interim Results for the Six Months to 30 June 2006

Consolidated Profit and Loss Account
£'000's                                 Notes             Unaudited              Re-stated               Re-stated
                                                                                 Unaudited                 Audited
                                                     6 months ended         6 months ended         12 months ended
                                                          30-Jun-06              30-Jun-05               31-Dec-05
Turnover                                                      1,005                      -                     286
Cost of Sales                                                 (837)                      -                   (392)
Gross Profit /(Loss)                                            168                      -                   (106)
Administrative Expenses                                       (522)                  (346)                   (962)
Operating Loss                            2                   (354)                  (346)                 (1,068)
   Interest receivable and similar                                9                     80                      83
income
   Interest payable and similar                                   -                    (1)                       -
charges
Loss on ordinary activities before                            (345)                  (267)                   (985)
taxation
  Taxation                                                        -                      -                     115
Loss on ordinary activities after                             (345)                  (267)                   (870)
taxation
Loss per share
  Basic and Diluted                       3                  (0.24)                (0.18p)                  (0.60)



Statement of Total Recognised Gains and Losses
£'000's                                 Notes             Unaudited              Re-stated               Re-stated
                                                                                 Unaudited                 Audited
                                                     6 months ended         6 months ended         12 months ended
                                                          30-Jun-06              30-Jun-05               31-Dec-05
Loss for the Financial Period                                 (345)                  (267)                   (870)
Currency translation differences on                           (229)                    114                     188
foreign subsidiaries
Total recognised gains and losses                             (574)                  (153)                   (682)
relating to the period
Prior Year Adjustment                                          (95)
Total Recognised gains and losses                             (669)
since last annual report




VANE Minerals Plc
Interim Results for the Six Months to 30 June 2006

Consolidated Balance Sheet
£'000's                                                  Unaudited              Re-stated                Re-stated
                                                                                Unaudited                  Audited
                                                    6 months ended         6 months ended          12 months ended
                                                         30-Jun-06              30-Jun-05                31-Dec-05
Fixed Assets
  Intangible fixed assets                                    7,990                 12,036                    7,991
  Tangible fixed assets                                      3,773                      -                    4,171
                                                            11,763                 12,036                   12,162
Current Assets
  Stocks                                                       175                      -                      123
  Debtors                                                      296                    308                      413
  Cash at bank                                                 703                  1,532                      732
                                                             1,174                  1,840                    1,268
Creditors: amounts falling due within                        (212)                  (100)                    (157)
1 year
Net Current Assets                                             962                  1,740                    1,111
Total assets less current liabilities                       12,725                 13,776                   13,273
Capital and Reserves
  Called up share capital                                   14,614                 14,614                   14,614
  Share option reserve                                         121                     69                       95
  Profit and Loss Account                                  (2,010)                  (907)                  (1,436)
Equity Shareholders' funds                                  12,725                 13,776                   13,273




VANE Minerals Plc
Interim Results for the Six Months to 30 June 2006

Consolidated Cash Flow Statement
£'000's                              Notes              Unaudited              Re-stated                Re-stated
                                                                               Unaudited                  Audited
                                                   6 months ended         6 months ended          12 months ended
                                                        30-Jun-06              30-Jun-05                31-Dec-05
Net cash inflow / (outflow) from       5                      215                  (472)                  (1,054)
operating activities
Returns on investment and
servicing of finance
  Interest received                                             9                     80                       83
  Interest or similar charges                                   -                    (1)                        -
paid
Net cash flow from returns on                                   9                     79                       83
investment and servicing of
finance
Capital expenditure and financial
investment
  Capital expenditure on                                    (208)                  (533)                    (815)
intangible Fixed Assets
  Capital expenditure on tangible                            (24)                      -                     (14)
Fixed Assets
Net cash flow from capital                                  (232)                  (533)                    (829)
expenditure and financial
investment
Management of Liquid Resources
Cash withdrawn from deposit                                     -                    896                    1,734
Net cashflow from management of                                 -                    896                    1,734
liquid resources

Decrease in cash for the period                               (8)                   (30)                     (66)
Reconciliation of net cash flow
to movement in net funds
  Increase / (Decrease) in cash                               (8)                   (30)                     (66)
in period
   Management of Liquid Resources                               -                  (896)                  (1,734)
    Change in net funds resulting                             (8)                  (926)                  (1,800)
from cash flow
   Translation Difference                                    (21)                    114                      188
    Movement in net funds in the                             (29)                  (812)                  (1,612)
period
  Opening net funds                                           732                  2,344                    2,344
  Closing net funds                                           703                  1,532                      732




VANE Minerals Plc
Interim Results for the Six Months to 30 June 2006


Notes to the Accounts
     
1.   The financial information contained in this interim report does not 
constitute statutory accounts within the meaning of section 240 of the 
Companies Act 1985. Subject to the FRS20 adjustment described below the figures
relating to the year ended 31 December 2005 have been extracted  from the
audited accounts which have been filed with the Registrar of Companies and
received an unqualified audit report which did not contain a statement under
section 237(2) or (3) Companies Act 1985.

The consolidated financial statements incorporate those of VANE Minerals  Plc
and its subsidiary undertakings for the period.

The current and the comparative half year to June are Unaudited and have  been
prepared using accounting policies and practices consistent with those adopted
in the accounts for the year ended 31 December 2005, with the exception of the
application of FRS 20 (see below), and are also consistent with those which will
be adopted in the 2006 Annual Report and Accounts.

FRS 20

The adoption of FRS 20 - Share Based Payments requires a prior period adjustment
to be made.  This has created a share option reserve at 31 December 2005 of
£95,100 and reduced the retained profits by £95,100; of this amount, £57,411 is
attributable to the year ended 31 December 2005 and £31,277 to the six month
period ended 30 June 2006.

The figures for the year ended 31 December 2005 reflect a re-categorisation of
£155,000 of costs from administrative expenses to cost of sales as these
expenses are more appropriately shown there.

The interim accounts were approved by the Directors on 11 September 2006.
     
2.   The Group's operating loss is derived from its continuing operations
where the principal activity is the evaluation, acquisition and development of
mineral exploration targets, principally gold, copper, uranium and silver
targets abroad, from its base in the United Kingdom.

3.   The calculation of the basic and diluted loss per ordinary share is
based on the loss after taxation of £345,000 (30 June 2005: £267,000, 31
December 2005: £870,000) and on the weighted average number of ordinary shares
in issue during the period of 146,143,823  (30 June 2005: 146,143,823, 31
December 2005: 146,143,823).

4.   Reconciliation of Movement in Equity Shareholders' Funds

£'000's                                            Unaudited              Re-stated                Re-stated
                                                                          Unaudited                  Audited
                                              6 months ended         6 months ended          12 months ended
                                                   30-Jun-06              30-Jun-05                31-Dec-05
Loss for Period                                        (345)                  (267)                    (870)
Effect of currency exchange movements                  (229)                    114                      188
Share option charge                                       26                     31                       57
Net decrease in shareholders' funds                    (548)                  (122)                    (625)
Opening Shareholders' Funds                           13,273                 13,898                   13,898
Closing Shareholders' Funds                           12,725                 13,776                   13,273

     
5.   Reconciliation of operating loss to operating cash flow

£'000's                                            Unaudited              Re-stated                Re-stated
                                                                          Unaudited                  Audited
                                              6 months ended         6 months ended          12 months ended
                                                   30-Jun-06              30-Jun-05                31-Dec-05
Operating loss                                         (354)                  (346)                  (1,068)
Decrease / (Increase) in debtors                         117                  (192)                    (182)
Increase in creditors                                     55                     35                       90
Increase in stock                                       (52)                      -                    (123)
Depreciation                                             423                      -                      155
Share option charge                                       26                     31                       57
Impairment of intangible fixed asset                       -                      -                       17
Operating cash flow                                      215                  (472)                  (1,054)

     
6.   Segmentation Information

£'000's                      Turnover                                     Loss Before Tax
               Unaudited     Re-stated        Re-stated       Unaudited         Re-stated         Re-stated
                             Unaudited          Audited                         Unaudited           Audited
                6 months      6 months  12 months ended  6 months ended    6 months ended   12 months ended
                   ended         ended        31-Dec-05       30-Jun-06         30-Jun-05         31-Dec-05
               30-Jun-06     30-Jun-05
UK                     -             -                -           (265)             (236)             (529)
US                     -             -                -           (234)             (235)             (546)
Mexico             1,005             -              286             154               204                90
Total              1,005             -              286           (345)             (267)             (985)

     
7.   Convertible Loan

On 31 August 2006 the company entered into a convertible loan agreement for
£750,000 with City Natural Resources High Yield Trust Plc and Geiger Counter
Ltd, who have loaned £450,000 and £300,000 respectively. The funds raised will
be used to accelerate the exploration and development programme for the Group's
portfolio of uranium properties in Northern Arizona and South-eastern Utah, and
to finance the construction of a mill at the Group's producing Diablito
gold-silver mine, in Nayarit State, Mexico.

The principal terms of the loan note are:

  • The loan note is unsecured and has a maturity date of 30 August 2010
  • The note attracts interest at 8% per annum, paid quarterly
  • The loan note is convertible at the option of the holder at any time prior
    to the maturity date at a price of £0.12 per share, a premium of 33% to the
    present share price of 9p
  • After the initial 24-month period, if the 20-day average closing price of
    the Company's shares at any time attains £0.18 or more, the Company may call
    the convertible loan note for conversion at the conversion price
  • The number of ordinary 10p shares to be issued upon conversion of the note
    are subject to proportional adjustment to reflect stock dividends, share
    splits, reverse share splits and other anti-dilutive events
  • Upon a change of control involving the acquisition of voting control or
    direction over 50% or more of the ordinary shares of the Company, City
    Natural Resource High Yield Trust Plc / Geiger Counter Ltd has the right to
    require the Company to repurchase their loan note, in whole or in part, at a
    price equal to 101% of the principal amount, plus accrued and unpaid
    interest thereon.



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