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Peter Hambro Mining (POG)

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Tuesday 14 December, 2004

Peter Hambro Mining

Review of Reserves

Peter Hambro Mining PLC
14 December 2004


Tuesday, 14th December 2004


      Micromine review of Pokrovskiy mineable in-pit reserves shows Russian
                  classification understates JORC results by 34%


Peter Hambro Mining ("PHM") announces that it has received a report from
Micromine Pty. Ltd. ("Micromine") which demonstrates that the Russian mineable
reserves evaluation, used by PHM and all Russian miners, is conservative.
Furthermore Micromine reported that the methodology and approach used by PHM
comply with the 1999 code set by the Australian Joint Ore Reserves Committee
(JORC) and with other international standards.

Micromine's estimation of "JORC code proven reserves" at Pokrovskiy totals 1.03
million ounces whereas the Russian "on balance C1 reserves" previously reported
by PHM total only 0.77 million ounces.

The Review Report

PHM acquired from Micromine, the Australian mining industry consultants, a suite
of computer programmes to improve mine planning at Pokrovskiy and Pioneer. This
software, which is used worldwide in the gold mining industry, has now been
installed and a start has been made on input of the PHM group's geological data.
The first result of this work is a Micromine plan of the Pokrovskiy pit shell,
the first area for which a complete data set is available. It should be noted
that this only includes in situ reserves and does not take into account the
company's ore stock-piles.
A comparison of the results with those of the Russian classification system is
shown below.

Estimation of Pokrovskiy Pit-shell Reserves (excluding flanks) as at 31/12/04

JORC reserves at Pokrovskiy per Micromine
                                           
Classification                                 Ore         Gold Content 
                                          ('000 t)         (kg)       ('000 oz)
           
Measured & Indicated                        19,237       38,028          1,223

Inferred                                     7,604        8,085            260

                             Total          26,841       46,113          1,483
           
of which the mineable proven reserve is:    --------   ----------    -----------
Proven                                      12,999       31,992          1,029
                                            --------   ----------    -----------

Russian classification reserves as reported by PHM

Classification *                                   Ore       Gold Content
                                              ('000 t)      (kg)      ('000 oz)

Conditioned ore reserves C1                      8,324    33,193         1,067
C2                                                 496     1,565            50
Low Grade reserves C1                            9,811     9,964           320
TOTAL IN PIT                                    18,632    44,722         1,438
Stockpiles conditioned ore C1                    1,531     5,277           170
Stockpiles low-grade ore C                       2,710     2,168            70
TOTAL IN STOCKPILES                              4,241     7,445           239
                                               -------    ------        -------
TOTAL                                           22,873    52,167         1,677
                                               -------    ------        -------
of which the mineable 'on balance' number is:
C1                                               5,756    23,887           768

The published Russian data includes ore stock-piles.

*The Russian classification numbers are those generated by PHM as being
representative at year end 2004. These numbers will be submitted for approval of
the local authorities at that time.

The table above shows that, under the JORC system as compared to Russian
standards, there is a 34% increase in the quantity of gold in the mineable
reserve, and the ore tonnage more than doubles.

Micromine also suggested that, with further work on the methodology used and the
input of recently received exploration data, areas of the deposit as currently
presented could be underestimating the tonnage present.

Total Volume of Analytical Data Used By Micromine

                                               Total   Drill Holes    Trenches

Number of exploration drill holes & trenches   1,864          1,268        596
Number of intervals                           66,990         53,789     13,201
Number of assays (Au)                         60,879         48,225     12,624
Number of assays (Ag)                         36,806         36,806          -

Additional geological data from outside the pit shell at Pokrovskiy and from
Pioneer is being entered and the results from the Group's upgraded and enlarged
assay laboratory facilities, which are expected to be operational in January
2005, will enable further reconciliation to be achieved.

Micromine

Micromine Pty. Ltd. of Australia is a market leading company that provides
consulting services and develops computer software and to the resource industry.
It markets and operates those products worldwide and has branch offices and
agencies at a number of overseas locations. It provides support for its products
and uses them, in addition to third party software, to provide consulting and
bureau services, particularly to mineral and petroleum exploration and
extraction companies. Micromine software is one of the most commonly used
operating systems by resource companies worldwide.
The Micromine consulting team contains 'Competent Persons' who are qualified to
report in JORC. The JORC Code is an internationally accepted reporting standard
used by a number of major international mining companies, and as a template for
countries in the process of developing or revising their own reporting
standards. Dimitry Pertel, Senior Reserve Geologist at Micromine and the author
of the report for PHM, is a 'Competent Person' to report the JORC numbers for a
company traded on London's AIM.

Peter Hambro, Executive Chairman, said: -

"It is with pleasure that we announce that the reserve reporting system that PHM
has always used is conservative when compared to the internationally accepted
JORC Code. I have always believed that the prescriptive and objective nature of
the Russian system is highly reliable.

The international review of the reserves at Pokrovskiy by Micromine is the first
step by Peter Hambro Mining to report in a dual way and recognises the Russian
Ministry of Natural Resources's declared move towards an internationalisation of
that country's reporting system.

I hope that appreciation by investors of the conservative nature of the Russian
system will reduce what I believe to be an unwarranted discount placed by the
market on the value of PHM's Russian reserve and resource inventory.

PHM will continue to input data for mine planning purposes at Pokrovskiy and at
Pioneer, where we have reported a total of over 10 million ounces of reserves
and resources under the Russian reporting standards.

I would like to take this opportunity to thank and congratulate Nicolai Vlasov,
PHM's Group Chief Geologist, and his team who have worked hard with Micromine to
create the model at Pokrovskiy and who are now working on expanding this to
cover further of the Group's assets."

For comparative purposes it should be noted that the following table appeared in
the PHM 2003 Annual Report
Pokrovskiy Rudnik excluding the flanks per Russian Standards - 1/1/2003

Classification                                   Ore        Gold Content
                                            ('000 t)       (kg)       ('000 oz)

Conditioned ore reserves C1                    9,275     36,489          1,173
C2                                               619      2,080             67
Low Grade reserves C1                         10,602     10,504            338
TOTAL IN PIT                                  20,496     49,073          1,578
Stockpiles conditioned ore C1                  2,831      8,039            258
Stockpiles low-grade ore C                     2,181      1,849             59
TOTAL IN STOCKPILES                            5,012      9,888            318
                                TOTAL         25,508     58,961          1,896

Enquiries:

Alya Samokhvalova                                           +44 (0) 20 7201 8900
Director of External Communications, Peter Hambro Mining

Tom Randell / Maria Suleymanova                             +44 (0) 20 7653 6620
Merlin




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