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Ocean Res Cap Hldgs (OCE)

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Wednesday 21 January, 2004

Ocean Res Cap Hldgs

Net Asset Value(s)

Ocean Resources Capital HoldingsPLC
21 January 2004



Year end net asset value and portfolio information



The Board of Ocean Resources Capital Holdings plc ('Ocean') is pleased to
announce that the company's unaudited net asset value at 31 December 2003 was
£34.7 million equivalent to a net asset value per share of £0.407p.



Ocean's portfolio as at 31 December 2003 comprised:


Nominal                   Security                          Sector                                   Value (£)
GBP Sterling denominated
18,200,000                Archipelago Resources Plc        Gold                                      5,915,000
                          ordinary shares
£845,000                  Cambrian Forestry Products Plc   Other (timber)                              845,000
                          10% CULN 2006
£3,600,000                Orevest Plc 12% CULN 2005        Industrial Minerals                       3,600,000
£5,000,000                Alliance Mining Limited 10% CULN Diamonds                                  2,000,000
                          2005
£960,000                  Gold City Industries Ltd 12%     Gold                                        960,000
                          Secured Gold Loan
30,000,000                Rheochem Limited ordinary shares Oil Services                              6,150,000
£400,000                  Scorpio Mining Corp 12% CULN2005 Base Metals                                 400,000
£12,870                   Ocean Equities                   Other (financial)                            48,918
                                                                                                    19,918,918
USA $ denominated
$5,538,461                BPK Resources 10% Preferred      Gold                                        711,606
                          Stock 2006
$2,500,000                BM Diamondcorp project loan PT   Gold                                      1,050,000
                          Galuk Cempaka
                                                                                                     1,761,606

Canadian $ denominated
1,875,000                 Strata Gold Corporation ordinary Gold                                        405,265
                          shares
937,500                   Strata Gold Warrants             Gold                                              0
4,279,488                 Gold City Industries common      Gold                                        573,484
                          shares
10,825,966                Terra Nova Gold Corp common      Gold                                      1,123,171
                          shares
2,000,000                 Terra Nova Gold Warrants (Cnv    Gold                                              0
                          45c C$)
8,000,000                 BM Diamond Corp common           Diamonds                                  1,210,392

                          shares
800,000                   Scorpio Mining Corp Warrants     Base Metals                                       0

                          (Cnv 60c C$)
15,018,694                Bralorne-Pioneer Common Shares   Gold                                      5,453,553
7,509,347                 Bralorne-Pioneers Warrants (Cnv  Gold                                              0
                          50c C$  Year 1)
                                                                                                     8,765,865

Australian $ denominated
A$700,000                 Burdekin Pacific Limited 10%     Gold                                        294,613
                          CULN 2005
A$2,800,000               Burdekin Pacific Limited 10%     Gold                                      1,178,451

                          CUPN 2005
A$4,400,000               St Barbara Mines Limited 12%     Gold                                      1,851,852
                          Convertible Notes
A$35,000,000              St. Barbara Mines Limited Common Gold                                      1,075,336
                          shares
2,350,000                 Intierra Limited ordinary shares Other (services)                            294,613
                                                                                                     4,694,865

Euro denominated
30% Equity Stake          Picobello Andalucita SL          Industrial Minerals                       1,655,000
                                                                                                     1,655,000

Total                                                                                               36,796,254



MANAGEMENT POLICY



Ocean regards itself as a mining finance house in the resource sector taking
significant interests in companies with proven reserves and is also looking to
take direct interests in early stage development exploration ventures which
could have a dramatic impact on shareholder value.



The Board expects to gradually focus its interests by selling certain holdings
and reinvesting the proceeds into:



a)      maintaining and, where appropriate, increasing its stake in companies
where such an increased stake will be sufficiently large to allow it to account
for its share of the earnings of that company.

b)      investing directly in exploration and development companies.

c)      funding selected early stage exploration projects.

d)      or, where appropriate, buying back its own shares.



When appropriate Ocean will look to change from a pure investment company to
taking into its own profit and loss account its share of associate company
earnings in order to be rated as an operating company.



The Board is committed to an increase in shareholder value and to that extent
has undertaken to limit any new issue of shares to 10% of the present capital
for the next two years and, where appropriate, in the event of a discount
arising to the perceived net assets, then to use surplus funds to buy in its own
stock, to ensure a stock price appreciation and to increase the net asset value
per share of the company.



GOLD



Approximately 54% of Ocean's portfolio is made up of investments in gold
companies that have proven reserves from which the Directors' estimate that
Ocean has a share of ounces attributable to it, approaching 1,500,000 ounces.
Using an average global valuation of $40 per ounce in the ground gives a value
of Ocean's portfolio of $60 million (£32 million at $1.85 = £1).  This puts a
value of approximately 38 pence per share on Ocean's gold interests excluding
its other interests.





Attributable Gold Resources


                                                            Resource           Ocean Stake     Ocean Attrib. oz
                                                                  Oz

St Barbara Mines Limited                                   1,900,000                 15.6%              296,400
Archipelago Resources plc                                  1,742,500                 38.4%              669,120
Gold City Industries Limited                                 979,247                 14.4%              141,011
Burdekin Pacific Limited                                     485,800                 18.1%               87,930
Bralorne-Pioneer Gold Mines Limited                          416,425                 30.6%              127,426
Terra Nova Gold Corporation                                  157,410                 54.0%               85,001
StrataGold Corporation                                       113,183                  6.9%                7,809
                                                                                                      1,414,697
Source: Prospectus and public announcements

by quoted companies





INTEREST IN INVESTEE COMPANIES



Ocean is a significant shareholder in all of the companies in its portfolio upon
conversion of the loan notes.  This effectively gives Ocean a significant stake
in a series of projects and developments.


AS AT 31st DECEMBER 2003                                           Ocean Interest* Ocean Interest post-warrants
                                                                                                      exercise*
Alliance Mining**                                                            12.0%                        12.0%
Archipelago Resources plc                                                    38.4%                        38.4%
BM Diamond Corporation                                                       19.5%                        19.5%
BPK Resources Inc.                                                           27.3%                        27.3%
Bralorne-Pioneer Gold Mines Limited                                          30.6%                        39.8%
Burdekin Pacific Limited                                                     18.1%                        18.1%
Cambrian Forestry Products plc**                                             19.5%                        19.5%
Gold City Industries Limited                                                 14.4%                        14.4%
Intierra Limited**                                                           16.6%                        16.6%
Orevest plc                                                                  22.1%                        22.1%
Picobello Analucita SL                                                       30.0%                        30.0%
Rheochem Limited                                                             49.4%                        49.4%
Scorpio Mining Corporation                                                    6.3%                         9.3%
St. Barbara Mines Limited                                                    15.6%                        15.6%
StrataGold Corporation                                                        6.9%                         9.6%
Terra Nova Gold Corporation                                                  54.0%                        58.2%



*assuming no further issue of equity

** unquoted companies



BALANCE SHEET



Consolidated balance sheet as at 31st December 2003


                                                                                                          £'000
                                                                                                     (Unaudited)
Fixed asset investments

Group undertakings                                                                                        36,796
                                                                                                          ______
                                                                                                          36,796
                                                                                                          ______
Current Assets

Debtors                                                                                                    4,183
Cash at bank and in hand                                                                                     209
                                                                                                          ______
                                                                                                           4,392
Creditors: amounts falling due within one year                                                           (5,515)
                                                                                                          ______
Net current liabilities                                                                                  (1,123)
                                                                                                          ______
Total assets less current liabilities                                                                     35,673
Creditors: amounts falling due after more than one year
8% Convertible Unsecured Loan Stock 2006                                                                   (991)
                                                                                                          ______
Net assets                                                                                                34,682
                                                                                                          ______






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