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Peter Hambro Mining (POG)

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Monday 24 September, 2007

Peter Hambro Mining

Interim Results

Peter Hambro Mining PLC
24 September 2007



                             
                             PETER HAMBRO MINING plc
                                        
                                 Interim Results

Peter Hambro Mining plc ("PHM" or "the Group") is pleased to present the results
of a successful half year's activity.

HIGHLIGHTS

                             6 months to   6 months to   Variance   12 months to
                              30/6/2007    30/6/2006    for period   31/12/2006
--------------------------     ----------   ----------    --------  -----------
Total attributable gold          
production, oz*                  134,300     108,363        +24%      261,000
Pokrovskiy mine gold             
production, oz                   116,800      93,600        +25%      206,800
Group average gold price          
received (US$/oz)                 US$652      US$573        +14%       US$586 
Pokrovskiy mine Cash            
Operating Cost                  US$115.8    US$134.4       (14%)       US$134
(GIS US$/oz)**
Pokrovskiy mine Total           
Production Cost                 US$249.9    US$251.2        (1%)       US$237
(GIS US$/oz)**
Operating profit,                 35,335      20,242        +75%       49,623
US$ '000 ***
Earnings per share, US$***         0.265       0.146        +82%        0.398
--------------------------     ----------  ----------     --------  -----------

 
 *   Total attributable gold production is comprised of production from the 
     Group's subsidiaries, share of production in joint ventures and other 
     investments

 **  As restated due to impact of International Financial Reporting Standards
     ("IFRS")

 *** As restated under IFRS

     Gold Institute Standard ("GIS")


RESULTS


Results for the first six months of 2007 (the "Period") for Peter Hambro Mining
plc compared to the equivalent period of 2006:

 •   The Group's attributable gold production increased by 24% to 134,300 oz
    (first six months of 2006 - 108,363 oz);

 •   Average realised gold sales price was US$652/oz, up by 14% (first six 
     months of 2006 - US$573/oz). The Group remains unhedged;

 •   Gold Institute Standard Costs at Pokrovskiy mine


     o   Cash Operating Costs US$116/oz  - 14% lower than the same period in 
         2006 (2006 - US$134/oz);

     o   Total Production Costs US$249.9 - 1% lower than the same period in 
         2006 (2006 US$251 oz.)


 •   Group operating profit increased by 75% to c.US$35.3 million compared
     to the same period of 2006 (first six months of 2006 - c.US$20.2 million);

 •   The Group's second mine, Pioneer, was commissioned in September 2007 on
     schedule;

 •   Group exploration activities on its large portfolio of exploration and
     development properties are producing promising results and these are being
     reviewed by the independent consultants, Wardell Armstrong International
     Limited. It is intended that this work will be finished in October 2007 
     and that the results, in the form of a Competent Person's Report, will be 
     published as soon as they have been reviewed by the Board. This is expected
     to be in the fourth quarter of 2007;

 •   Production from the Group's other developing operations totalled c.6,200 oz
     which is an 88% increase over the same period last year;

 •   The Group's half year figures are published according to IFRS for the 
     first time as part of its transition to IFRS reporting in line with the 
     requirements of AIM.


CHAIRMAN'S STATEMENT

Dear Shareholder,

Once again my colleagues at PHM have delivered an excellent result for the first
half of the year - and remember: the first half year is usually, because of the
cold winters in the Amur Region, less productive than the second.  An increase
in turnover in 2007 of c.58% compared to the same period in 2006 is particularly
commendable as it results not only from higher sale prices for gold and silver
but, also, more importantly, from increased production. But what really counts
is the bottom line.  An increase in operating earnings of 75% to c.US$35 million
is a great achievement; above all because of the sustained control that has been
exercised on costs and which has been reflected in the increase in profit after
tax of 87% to c.US$22 million.

The Pokrovskiy mine team has demonstrated its ability to control operating costs
in an inflationary environment.  An impressive 14% reduction in GIS cash
operating costs was due both to the processing of higher quality material
through the mill and also due to a number of measures introduced by the
management of the mine. For example, expenses on petroleum, oil and lubricants
used for the mining fleet at the mine decreased by 6%, and expenses on chemicals
and consumables at the Pokrovskiy plant decreased by 4%. The strong rouble has
helped this, in part due to the consequent increase of its purchasing power for
dollar denominated goods.

The second half of the year has started well and investors will, I believe, be
as delighted as I am that we have now brought our second major mine into
production.  The commissioning of the Pioneer mine took place in September
according to the Company's schedule despite severe rainfall in the region. This
was another remarkable achievement for the Group's team of specialist engineers,
mechanics and scientists and is another historic development for PHM.  Although
the development plan is a modular process and the ramp up of production is
expected to take some time to reach its designed capacity, the first
contribution from Pioneer will be a welcome addition to our full year results.

The interim accounts that accompany this letter are the first that we have
issued under IFRS.  In reporting in this way we have passed another milestone on
the way to joining the mainstream of international mining companies.  It is
interesting to note that the overall difference between the results for the
periods under United Kingdom Generally Accepted Accounting Practices ("UK GAAP")
and under IFRS is not material.

International financial markets have not enjoyed a peaceful summer and your
Board decided that, to ensure continued availability of financing for
investment, it would be wise to secure a working capital facility. I am pleased
to report that VTB Bank Europe plc, the London arm of one of Russia's most
prominent banks and the Group are in the final stage of negotiation of a US$50
million facility.

Finally, as announced previously, we have commissioned a Competent Person's
Report on all our mining assets.  The reasons for doing so are twofold: first,
this will provide full details on all mining assets and how capital expenditure
decisions will be made; secondly, the Company wishes to have an independent
report showing reserves and resources under both Russian and Western reporting
systems.  The consultants who have been commissioned to undertake this task,
Wardell Armstrong International Limited, are presently on site and we currently
expect to be in a position to publish the results of their review during the
fourth quarter of 2007.  Accordingly we have not included the usual report on
geological and development advances during the last six months, since these will
be fully covered when the Competent Person's Report is published. As I said
earlier, and in the Trading Update issued on 16 July 2007, prospects for the
remainder of the year remain good.

Peter Hambro
Executive Chairman


GROUP OPERATIONS REPORT

Pokrovskiy mine

During the first six months of 2007 Pokrovskiy mine demonstrated stable and
successful progress, producing 116,800oz of gold compared to 93,600oz in the
same period of 2006. This 25% increase was achieved due to the stable work of
the plant, improved recovery rates and higher head grades through the mill. The
increase in recovery rates was the result of the range of measures introduced by
Pokrovskiy mine's specialists in 2006.  Amongst these measures were adjustments
to the crushing-grinding circuit, creation of an intermediate stockpile for
blending purposes and an increase in the leaching time.

Cash operating costs of production per unit were reduced by 14% which was a
remarkable achievement of Pokrovskiy mine's team.  This was achieved despite the
background of 8% inflation in Russia.

Mining operations

Planned advance stripping works were carried out according to the mining plan
using geological computer models of the deposit (Micromine). The capacity of the
intermediate blending ore stockpile was increased further to 200,000 tonnes
which allowed for an optimal ore mixture to be sent to the Resin in Pulp Plant.
The commissioning of a new drilling rig (Atlas Copco DML) model with high
productivity and a drilling diameter, in spite of increased explosive works,
allowed for a reduction of total costs of mining works.



Pokrovskiy mine Mining Operations
--------------------------------------------  ------------------
                                             6 months to 30 June
                             ---------        ------------------
                               Units           2007       2006     Var,%
                             ---------     ---------    -------    -------
Mining
---------------------        ---------     ---------    -------    -------
Total Material Moved           m3'000         2,458      2,624      (6%)
---------------------        ---------     ---------    -------    -------
Ore mined                      t'000          1,197        889       35%
---------------------        ---------     ---------    -------    -------
Average grade                  g/t              3.6        3.2       13%
---------------------        ---------     ---------    -------    -------
Gold content                   oz'000         136.8       90.9       50%
---------------------        ---------     ---------    -------    -------


Processing operations - Resin in Pulp plant


863,000 tonnes of ore were treated through the mill in the first half of the
year - 6% more than during the same period in 2006.  A 5% increase in recovery
rates from 86.6% in the first half of 2006 up to 91.0% for the same period this
year was a positive achievement especially as harder and less oxidised material
was treated through the mill.  This was achieved by the introduction of a number
of technical improvements to create optimal operating conditions including
grinding coarseness, leaching time, speed and quantity of sorbents' circulation
and cyanide concentration.  An increase in leaching time became possible due to
the addition of a new line of leaching tanks installed during the plant's
expansion in 2006.

The increase in recovery rates together with the processing of higher grade
material through the mill allowed for an increase in the plant's gold output.
This was achieved by the introduction of a number of technological improvements
last year including the creation of the intermediate stockpile where five
different types of ore from the Pokrovskiy pit are blended.  This stockpile
allows for an optimal mix of different types of ore to go through the Resin in
Pulp Plant.

Heap Leach

The increase in the capacity of the gold processing plant and the rise in the
gold price allowed for lower grade ore to be processed through the heap leach
without an increase in the volume of mining works and without decreasing the
overall gold production of Pokrovskiy mine.

The recovery rates, although 22% lower than in 2006 due to a shorter period of
leaching as a result of the later start of the leaching season caused by weather
conditions, were still impressive for this type of operation in the conditions
of the Russian Far East.


Pokrovskiy mine Processing Operations
--------------------------------------------       ------------------
                                                  6 months to 30 June
                                                   ------------------
                                 Units           2007        2006       Var,%
---------------                 ---------    ---------     -------     -------
Resin in Pulp Plant
---------------                 ---------    ---------     -------     -------
Ore from pit                       t'000           352         609       (42%)
---------------                 ---------    ---------     -------     -------
Average grade                      g/t            4.43        3.85        15%
---------------                 ---------    ---------     -------     -------
Ore from stockpile                 t'000           511         109        369%
---------------                 ---------    ---------     -------     -------
Average grade                      g/t            4.43        4.14         7%
---------------                 ---------    ---------     -------     -------
Total milled                       t'000           863         818         6%
---------------                 ---------    ---------     -------     -------
Average grade                      g/t             4.4         3.8        16%
---------------                 ---------    ---------     -------     -------
Gold content                      oz'000         122.7        99.6        23%
---------------                 ---------    ---------     -------     -------
Recovery rate                       %            91.0%       86.6%         5%
---------------                 ---------    ---------     -------     -------
Gold recovered                    oz'000           112          86        30%
---------------                 ---------    ---------     -------     -------
Heap Leach
---------------                 ---------    ---------     -------     -------
Ore stacked                        t'000           354         345         3%
---------------                 ---------    ---------     -------     -------
Average grade                      g/t             0.8         1.0        (20%)
---------------                 ---------    ---------     -------     -------
Gold content                      oz'000            10          11        (9%)
---------------                 ---------    ---------     -------     -------
Recovery rate                       %            53.6%       68.3%       (22%)
---------------                 ---------    ---------     -------     -------
Gold recovered                    oz'000             5           7        (29%)
---------------                 ---------    ---------     -------     -------
Total
---------------                 ---------    ---------     -------     -------
Gold recovered                    oz'000         116.8        93.6         25%
---------------                 ---------    ---------     -------     -------


Gold Institute Standard Operating Cost Analysis

The Group reports and breaks down Pokrovskiy mine's operating costs according to
the internationally recognised GIS following the industry best practices.

The GIS cost analysis for the period is as follows:

                                   6m to          6m to                 12m to    
                                  30/6/07        30/6/06*   Variance   31/12/06*   
--------------------             --------        --------  ---------   ---------
Pokrovskiy mine
-----------------------------------------------
All figures reported in US$ per oz of gold produced
-----------------------------------------------
 
                                 --------        --------  ---------   ---------
Direct mining expenses             71.3            92.0        (23%)     103.0
--------------------             --------        --------  ---------   ---------
Third-party smelting,
refining and                      
transportation costs                6.3             6.4         (2%)       7.0
--------------------             --------        --------  ---------   ---------
By-product credits                    -            (0.5)                  (4.0)
--------------------             --------        --------  ---------   ---------
Other                             38.19            36.4         (5%)      27.8
--------------------             --------        --------  ---------   ---------

Cash Operating Costs              115.8           134.4        (14%)     133.8
--------------------             --------        --------  ---------   ---------
Royalties                          42.8            36.8         16%       35.3
--------------------             --------        --------  ---------   ---------
Production taxes                    9.3             7.7         21%        5.7
--------------------             --------        --------  ---------   ---------

Total Cash Costs                  167.8           178.8         (6%)     174.8
--------------------             --------        --------  ---------   ---------
Non-cash movement in               
stock                              30.0            22.9         31%       15.8
--------------------             --------        --------  ---------   ---------
Depreciation/                      
Amortisation                       52.0           49.51          5%      46.14
--------------------             --------        --------  ---------   ---------

Total Production Costs            249.9           251.2         (1%)     236.8
--------------------             --------        --------  ---------   ---------


* Numbers have been restated due to the transition to IFRS, mainly depreciation/
amortisation due to implementation of a unit of production method of
depreciation vs. straight line depreciation method for certain mining assets

A significant decrease in cash operating costs has been achieved due to thorough
cash costs control and implementation of a plan aimed to reduce operating costs
at every stage of the gold producing circuit on the mine from mining works in
the pit to expenses for infrastructure upkeep.

Higher grades and improved recovery rates also positively affected production
costs.

During the first half of 2007, the Pokrovskiy mine team achieved a remarkable 6%
reduction of expenses on petroleum, oil and lubricants for the mining fleet, a
20% reduction of expenses on petroleum, oil and lubricants for heating supply of
the mine and 4% decrease of expenses on chemicals and consumables at the plant.

A new system of bonuses introduced at the beginning of 2007 resulted in an
increase in labour productivity.

Non-cash movement in stock reflects the cost of mining incurred in the previous
periods but accounted for in the first half of 2007 when the actual gold was
produced.


Pioneer mine

At Pioneer, in the first half of 2007, efforts were concentrated on preparing
the deposit for first production in September, on schedule. Mining works were
carried out in order to complete geological exploration works and to prepare the
deposit for operations.

Mining works were carried out according to a mining plan to produce material for
a commissioned Resin in Pulp plant and for the next year.  This included
advanced stripping and preparation mining works.  Mining works are carried out
by two electrical excavators EKG5 and 3 diesel excavators Cat 330, 8 Belaz
trucks with a capacity of 30 tonnes and six Cat and Volvo in-pit trucks with a
capacity of 38 tonnes.

The commissioning of the complex comprising a primary crushing unit, a SAG mill,
2 spiral classifiers, a cyanide leaching circuit, a heap leach, a tailings dam
and all necessary auxiliary divisions was carried out in September according to
the mining plan.  Further infrastructure construction is being carried out at
the moment.

Mining operations                 Units            6 months to 30 June
--------------                                 2007         2006        Var,%
                                ---------   ---------   ---------   ---------
Pioneer Deposit
--------------                  ---------   ----------   ---------   ---------
Total Material Moved            '000 m(3)          666         392         70%
--------------                  ---------   ----------   ---------   ---------
Ore Mined                       '000 t              38          13        192%
--------------                  ---------   ----------   ---------   ---------
Grade                             g/t              1.8         1.3         38%
--------------                  ---------   ----------   ---------   ---------
Gold                            '000 oz            2.2         0.5        340%
--------------                  ---------   ----------   ---------   ---------


Malomir deposit

In accordance with the plans, detailed exploration work was carried out in the
north-eastern part of the deposit.  During the Period, 32,160m of drilling and
58,900m(3) of trenching was completed. A grid of drill holes and trenches (40m x
40m), intended for the computation of economic reserves of gold of category C1,
was established on an area 320-350m in width and approximately 600m in length.

A number of metallurgical tests on the different types of ore at the Malomir
deposit were carried out at the Group's laboratories and at specialist
scientific institutions, including Irgiredmet.  A process of gravity separation
and flotation of non-oxidised types of ore similar to that at Pioneer was
suggested and proved to yield impressive results. Gold recovery in concentrate
from flotation is 83-86% and flotation produces a concentrate that is
approximately 4-6% by weight of the ore. Cyanide leaching of oxide ore produces
up to 84% recovery.

At the junction of ore body No.10 with the Diagonal zone, two ore columns have
been delineated. In the plan, the width of the columns is 50-140m, and they are
separated by a narrow (up to 30-40m) strip of lower grade ore.  Down dip, both
ore columns have been traced for 320m.  Reserves of metal in the columns
constitute, from initial estimates, c.418,000 oz at a gold grade of 2-2.5g/t (at
a 0.8g/t cut off).

Adjacent to the Severniy Fault at depths of 130-240m, a major body of
cataclastic quartz metasomatites 150-200m wide has been discovered. This zone
constitutes an extension, to depth, of the main Diagonal zone. Within this new
ore zone, several ore bodies of a thickness from 20 - 46m, and gold grades
typically of 1.0-2.2g/t (and up to a maximum of 40g/t), have been defined. In
the same area of the deposit, at shallower depths, 45-130m, drilling has
intersected separate ore bodies from 3 - 27m thick with gold grades typically of
1.0-2.5g/t.

On the southern continuation of the mineralised zone of the Diagonal fault its
continuation has been identified by drill holes as having a thickness of 3.0 -
6.9m and gold grade of 0.94-1.48g/t.

Two metallurgical bulk samples have been taken from ore bodies in the Quartzite
area.

Newly Developing Production Operations

A number of alluvial mining enterprises, now included in the Group, carried out
works at the sites of the Group's operational and exploration activities,
allowing for additional profits for the Group without major investment in
infrastructure or detailed exploration works.  Two of them - OAO ZDP Koboldo and
ZAO Amur-Dore - which extract gold from alluvial deposits in the north-east of
the Amur Region in close proximity to the Tokur and Malomir deposits, produced
c.3,900 oz of gold in the first half of 2007.  The enterprises exploit alluvial
deposits using dredging methods and with the use of washing apparatus.

Plans for 2007 envisage an increase in the production of alluvial gold by 1.5
times (up to 16,000 oz) in comparison with 2006.

Joint Ventures in the Amur Region

Priisk Solovyevskiy, Nagima and Odolgo, all of which are in different types of
joint-venture arrangements with PHM, produced c.2,265 oz of attributable gold
during the first half of 2007.

On 30 May 2007, a modular plant with gravitational technology for the extraction
and processing of concentrate using the intensive cyanidation method was put
into operation at the Odolgo site. During June, commissioning works and
simultaneous exploitation works were carried out. The first batch of concentrate
was processed at the Pokrovskiy resin-in-pulp plant in June at a newly built
intensive cyanidation facility.

Omchak Joint Venture

Through its subsidiaries, Omchak produced c.23,000 oz of gold in the first half
of 2007.  This represents c.32.3% of the scheduled production for 2007 and is in
line with the previous year's production and in accordance with the internal
budget for the first half of 2007.  As more than 67% of the gold produced by
Omchak comes from the exploitation of placer deposits, the majority of
production occurs during the second half of the year.  PHM's attributable share
of production was c.11,400 oz as it owns a 50% interest in Omchak.

During the first half of the year, Omchak's subsidiaries, OOO Zeyazoloto and OOO
Noviye Tekhnologii carried out and completed the necessary preparation works for
the 2007 production season including the delivery of fuels and lubricants,
technical repair works, stripping works and the assembly of washing apparatus.
Gold production commenced in June.

Omchak also carried out geological exploration work at three projects in the
Chita region in accordance with approved plans and licence conditions.

At the Verkhne-Aliinskiy gold deposit, exploration drilling was completed as
well as trenching works and the collection of samples for geotechnical and
technological analysis.  Since the start of 2007, 12,623m of drilling and
20,000m(3) of trenching has been carried out, and 1,347 core samples and 112
trench samples analysed yielding samples with gold grades up to 166.6g/t.

At the flanks of the Bukhtinskiy prospective area, aerial geophysical
exploration is being carried out as well as a geochemical survey.  Ore samples
and mineralogical samples are being analysed.

At the Kuliinskiy ore field, geological exploration commenced in July 2007 and
mining is expected to be commissioned by the end of the year.  It is planned to
carry out 15,000m(3) of trenching and to collect more than 200 drill samples.

EXPLORATION AND DEVELOPMENT REPORT

During the first half of 2007, the Group's exploration team concentrated their
efforts on the most advanced projects of the Group in order to prepare them for
exploitation according to the Group's schedule.  Works on other projects were
progressed according to the frameworks of the exploration plans and licence
terms.  During this period, the Group carried out 348,600m(3) of trenching and
105,642m of drilling.

Yamal

In the first half of 2007, OAO Yamalzoloto carried out appraisal work on two
operating projects: the Novogodnee Monto deposit and at the
Toupugol-Khanmeishorskiy area. At Novogodnee Monto, finalisation and
confirmation of the feasibility study on current exploration conditions was
accomplished. At the Toupugol-Khanmeishorskiy area the following work was
carried out: drilling - 12,747m (127 boreholes), including structure drilling -
2,324m (72 boreholes); trenching - 52,596m(3); assaying: core sampling - 7,085
samples (7,041m core), slurry - 249 samples (256m core), lithogeochemical -
1,110 samples (4,084m core).

As the Petropavlovsk deposit, located 400m from Novogodnee Monto, is a vital
part of the plan regarding the future development of the area, intensive
exploration works were continued here in 2007.  Detailed drilling was carried
out in a grid of 40m x 20m in the northern section of the deposit.

At the Petropavlovsk deposit a feasibility study was prepared using the data
from the operational calculation of reserves.  The feasibility study has set out
that the exploitation of the deposit is economically feasible provided that the
realisation of output is achieved and that there is demand for stripped rock.

Yamalskaya Gornaya Company

During the period, OOO Yamalskaya Gornaya Company (YGK) carried out geological
exploration works including office study and laboratory-analytical works and the
initial stages of field works on 8 projects contained in 6 licence areas.

During the period, a complete summary was made for the Ozerno-Pyatirechensk area
of all geological, geophysical and geochemical information gathered from three
years of field works based on the results of ore sampling from core drill holes
and excavation (6,200 samples), aerial litho chemical (more than 8,000 samples)
and geophysical exploration and geological observations following prospecting
traversing (more than 3,500 tonnes).

Following this correlation of results, the previously forecast presence of three
potential ore bearing zones on the Ozernoye site was confirmed.  A number of
more prospective sites were singled out according to complex characteristics;
the evaluation of these areas is expected to be carried out in 2007.

Other Assets

The Group has acquired seven new exploration licences in the Amur region, on a
variety of prospective areas, some of which have already been extensively
explored and on which ore deposits are defined and reserves and resources have
been established. These require some additional drilling to confirm.

Meanwhile, exploration work continues, with promising results, on the Adamikha
and Gar-II licence areas in the middle of the Amur region.

It is intended that detailed information will be made available together with
the Wardell Armstrong results during the fourth quarter of 2007.

Chemical laboratories

PHM's chemical laboratories have been working at their full capacity.

In order to support exploration works at Malomir, in April  2007 the capacity of
the Tokur laboratory  was increased by 50% from 6,000 samples a month to 9,000
samples a month (fire assay analyses) due to commissioning a separate sample
preparation department of the laboratory at the Malomir site. In June 2007, a
new laboratory in Solovievsk was commissioned to support exploration works at
the Solovievskaya field.  The capacity of this laboratory is 6,000 samples a
month (fire assay analyses).

IFRS

PHM plc has previously prepared its consolidated financial results under United
Kingdom Generally Accepted Accounting Practices. With effect from 1 January
2007, the Group is required to prepare its consolidated financial statements in
accordance with IFRS as adopted by the European Union (EU).


The first full set of audited annual financial statements prepared under IFRS
will be for the year ending 31 December 2007, and the first interim report
prepared under IFRS is for the half year ended 30 June 2007.

Gold price/Treasury

The Group's average realised gold price for the period was US$652/oz, up 14%
against US$573/oz during the first six months of 2006.  The Russian rouble
strengthened against the US Dollar by 2% during the period and was RuR25.82/US$
at 30 June 2007 (RuR27.08/US$ - 30 June 2006, RuR26.33/US$ - 31 December 2006).
The Group has a policy of no long term gold forward sales or hedging.

Enquiries:

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

Patrick Magee                                       +44 (0)20 7155 4525
JP Morgan Cazenove

David Simonson / Tom Randell                        +44 (0)20 7653 6620  
Merlin


This release has been reviewed by Dr. Stephen Henley, who is an independent
geological advisor to the Board of Directors of Peter Hambro Mining Plc. Dr.
Henley is qualified to act in the capacity of a Competent Person for the
purposes of this statement. Dr. Stephen Henley holds a PhD in Geology
(University of Nottingham, 1970). He is a Fellow of the Geological Society, a
Fellow of the Institution of Materials, Minerals and Mining, and a Chartered
Engineer. He is also a Charter Member of the International Association for
Mathematical Geology. He has been employed in exploration, mining, academic and
geological consultancy posts since 1970 and has participated in Competent Person
studies on a variety of different minerals and types of deposit, including gold,
polymetallic and chromite projects.


In this interim report we present financial items such as "cash operating
costs", "total cash costs" and "total production costs" that have been
determined using industry standards as per the Gold Institute and are not
measures under International Financial Reporting Standards. An investor should
not consider these items in isolation or as alternatives to any measure of
financial performance presented in accordance with IFRS either in this document
or in any document incorporated by reference herein.

While the Gold Institute has provided definitions for the calculation of "cash
operating costs", "total cash costs" and "total production costs", the
definitions of certain non-financial measures included herein may vary
significantly from those of other gold mining companies, and by themselves do
not necessarily provide a basis for comparison with other gold mining companies.
However, we believe that total cash costs and total production costs in total by
mine and per ounce by mine are useful indicators to investors and management of
a mine's performance because they provide a very useful indication of a mine's
profitability, efficiency and cash flows. They also show the trend in costs as
the mine matures over time and on a consistent basis. These costs can also be
used as a benchmark of performance to allow for comparison against other mines
of other gold mining companies.


                          Independent Review Report to

                            PETER HAMBRO MINING plc


We have been instructed by the Company to review the financial information of
Peter Hambro Mining plc for the period ended 30 June 2007 which comprises the
Condensed Consolidated Interim Income Statement, Condensed Consolidated Interim
Balance Sheet, Condensed Consolidated Interim  Statement of Cash Flows, and the
related notes 1 to 14. We have read the other information contained in the
interim report and considered whether it contains any apparent misstatements or
material inconsistencies with the financial information.

Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the Directors. The Directors
are responsible for preparing the interim report in accordance with the AIM
Rules of the London Stock Exchange which require that the accounting policies
and presentation applied to the interim figures should be consistent with those
applied in preparing the preceding annual accounts except where any changes, and
the reasons for them, are disclosed. This interim report has been prepared in
accordance with International Accounting Standard 34, "Interim financial
reporting".

Review work performed

We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom. A review
consists principally of making enquiries of Group management and applying
analytical procedures to the financial information and underlying financial data
and based thereon, assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed. A review excludes
audit procedures such as tests of controls and verification of assets,
liabilities and transactions. It is substantially less in scope than an audit
performed in accordance with International Standards on Auditing (UK and
Ireland) and therefore provides a lower level of assurance than an audit.
Accordingly we do not express an audit opinion on the financial information.

To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company and the Company's members as a
body, for our audit work, for this report, or for the opinions we have formed.

Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 June 2007.


St. Paul's House,                                     MOORE STEPHENS LLP
Warwick Lane, London                                  Registered Auditor
EC4M 7BP                                           Chartered Accountants
21 September 2007



                            PETER HAMBRO MINING plc

                 Condensed Consolidated Interim Income Statement

                     Note
                    ------
                            Six months to       Six months to         Year to
                            30 June 2007        30 June 2006    31 December 2006
                                   $'000               $'000            $'000

Gross revenue:                                                         
group and share of
joint ventures                      99,244              63,108         177,034
                                 -----------         -----------     -----------
Group revenue                       93,128              59,024         157,807

Net operating                      (57,793)            (38,782)       (108,184)
expenses

Operating profit                    35,335              20,242          49,623

Share of results of                
joint ventures                       (767)               (466)           (173)

Profit before                       
finance items and tax               34,568              19,776          49,450


Financial income                     3,227               4,272           7,429
Financial  expenses                 (5,970)             (5,825)        (11,764)

Profit before taxation              31,825              18,223          45,115

Taxation                4           (9,953)             (6,544)        (12,742)
                                 -----------         -----------     -----------

Profit for the period               21,872              11,679          32,373

Attributable to:
- equity holders of                 
the company                         21,444              11,572          31,986
- minority interest                    428                 107             387

Earnings per           
ordinary share         11           $0.265              $0.146          $0.398

Diluted earnings       
per ordinary share     11           $0.265              $0.144          $0.398


The accompanying notes are an integral part of this Condensed Consolidated
Interim Income Statement.


                            PETER HAMBRO MINING plc

                  Condensed Consolidated Interim Balance Sheet


                                        Note
                                       ------
                                               30 June  31 December   30 June
                                                  2007        2006       2006 
                                                 $'000       $'000      $'000  
Assets
Non-current assets                             403,890     360,349     259,778
Goodwill                                        16,291      13,396         156
Intangible assets                              145,604     155,266     120,838
Property, plant and equipment                  217,936     165,930     114,487
Investments in joint ventures                    9,659      10,534      10,249
Other investments                        5         965       1,022         764
Inventories                                     13,435      14,201      13,284
                                               --------    --------     -------

Current Assets                                 131,592     145,585     202,873
Inventories                                     38,317      21,859      22,293
Trade and other receivables              6      56,996      47,323      38,296
Securities held for trading              6      10,207      13,937           -
Cash and cash equivalents                6      26,072      62,466     142,284
                                               --------    --------     -------

Total assets                                   535,482     505,934     462,651

Liabilities
Current liabilities                            (50,317)    (38,829)    (31,873)
Trade and other payables                 6     (48,263)    (37,856)    (30,579)
Current income tax liabilities           6      (2,054)       (973)     (1,294)
                                               --------    --------     -------

Net Current Assets                              81,275     106,756     171,000
                                               --------    --------     -------

Total Assets less Current                      485,165     467,105     430,778
Liabilities

Non-current liabilities                       (159,519)   (157,051)   (162,511)
Borrowings                               6    (135,245)   (134,740)   (134,407)
Deferred income tax liabilities                (22,707)    (21,744)    (12,550)
Provisions                               7      (1,567)       (567)    (15,554)
                                               --------    --------     -------
Net Assets                                     325,646     310,054     268,267
                                               ========    ========     =======

Capital and reserves
Share capital                            8       1,311       1,311       1,298
Share premium                                   35,082      35,082      17,797
Other reserves                                 176,722     176,722     176,722
Contingent reserve on acquisition                    -           -       3,152
Equity reserve on bonds                          1,583       1,583       1,583
Retained earnings                              104,985      83,541      63,127
                                               --------    --------     -------
Equity attributable to PHM                     319,683     298,239     263,679
shareholders
Minority interests                               5,963      11,815       4,588
                                               --------    --------     -------
Total equity                                   325,646      310,054    268,267
                                               ========    ========     =======

The accompanying notes are an integral part of this Condensed Consolidated
Interim Balance Sheet.

These Condensed Consolidated Interim financial statements were approved by the
Directors on 21 September 2007


P.C.P. Hambro

                            PETER HAMBRO MINING plc

                Condensed Consolidated Interim Cash Flow Statement

                             Note
                            ------
                                    Six months to    Six months to   Year to 31
                                     30 June 2007     30 June 2006 December 2006
                                             $000             $000        $000
Cash flows from operating
activities
Cash generated from            9           19,932           10,091      47,607
operations
Interest received                           1,643            1,060       7,209
Interest paid                              (5,045)          (5,417)    (10,935)
Income tax paid                            (5,965)          (3,894)     (9,416)

Net cash from operating                    10,565            1,840      34,465
activities

Cash flows from investing
activities
Acquisitions of                            (9,156)            (991)    (38,613)
subsidiaries and joint
ventures net of cash
acquired
Purchase of property,                     (28,228)         (14,924)    (30,394)
plant and equipment and
intangibles
Exploration and evaluation                (20,241)         (17,398)    (36,747)
expenditure
Securities held for                         3,792                -     (13,845)
trading
Payments to Reserve Bonus                       -                -     (15,000)
Scheme holders
Proceeds from sale of                           -            4,000       4,000
investments
available-for-sale
Acquisition of other                          (21)            (295)       (537)
investments

Net cash used in investing                (53,854)         (29,608)   (131,136)
activities

Cash flows from financing
activities
Net proceeds from issue of                      -           17,822      17,822
ordinary share capital
Proceeds/repayment from/of                  6,261            6,436      (5,622)
borrowings
Capital element of finance                      -             (193)       (243)
leases

Net cash from financing                     6,261           24,065      11,957
activities

Net decrease in cash and      10          (37,028)          (3,703)    (84,714)
cash equivalents in the
period
Effect of exchange rates      10              634            1,453       2,646
on cash and cash
equivalents
Cash and cash equivalents     10           62,466          144,534     144,534
at beginning of period
Cash and cash equivalents     10           26,072          142,284      62,466
at end of period


The accompanying notes are an integral part of this Condensed Consolidated
Interim Cash Flow Statement.




                            PETER HAMBRO MINING plc

         Condensed Consolidated Interim Statement of Changes in Equity

                  Attributable to equity holders of the parent                                        
    
                                                                                                                        

             Note  Capital Share    Other    Contingent   Equity   Retained   Total   Minority   Total 
                   Total   premium  reserves reserve on   reserve  earnings           interest   equity
                                                                                                 Total 
                   
                   $'000   $'000     $'000     $'000     $'000       $'000     $'000   $'000      $'000
 
Balance at 1       1,273      -    176,722     3,152     1,583      51,555   234,285   4,481    238,766
January 2006
------------     -------  -------  --------   -------   -------   -------    -------   -------  -------    

Recognised            -       -         -         -         -       11,572    11,572     107     11,679               
income and
expenses
New shares    8       25   17,797       -         -         -           -     17,822      -      17,822
issued

Balance at         1,298   17,797   176,722    3,152      1,583     63,127   263,679   4,588    268,267 
30 June 2006 
------------     -------  -------  --------   -------   -------   -------    -------   -------  -------  
Recognised            -       -         -         -         -       20,414    20,414     280     20,694
income and
expenses
Shares issued       
in relation to
acquisition of
Peter Hambro
Mining (Cyprus) 
Ltd            8      13   17,285       -     (3,152)       -           -    14,146       -     14,146

Acquisition of                
subsidiary
undertakings          -       -          -         -         -          -         -     6,748    6,748
 

Additional            -       -          -         -         -          -         -      199      199
acquisition of     
subsidiary
undertakings
------------     -------  -------  --------   -------   -------   -------    -------   -------  -------
Balance at 31      1,311   35,082   176,722        -      1,583     83,541   298,239    11,815  310,054
December 2006
-------------     -------  -------  --------   -------   -------   -------    -------   -------  -------
Recognised           -        -         -          -         -      21,444    21,444       428   21,872
income and
expenses

Additional          
acquisition of  
subsidiary
undertakings   13    -        -         -          -         -          -         -     (6,280)  (6,280)
-------------     -------  -------  --------   -------   -------   -------    -------   -------  -------
Balance at          1,311   35,082    176,722      -       1,583   104,985    319,683    5,963   325,646
30 June 2007       
-------------     -------  -------  --------   -------   -------   -------    -------   -------  -------


The accompanying notes are an integral part of this Condensed Consolidated
Interim Statement of Changes in Equity.



                            PETER HAMBRO MINING plc

              Condensed Consolidated Interim Financial Information

                       for the period ended 30 June 2007

Notes

Peter Hambro Mining plc restatement of 2006 Financial Information under IFRS

INTRODUCTION

Peter Hambro Mining plc and its subsidiaries ("PHM" or "the Group") have
historically prepared their consolidated financial statements under UK Generally
Accepted Accounting Practices ("UK GAAP"). PHM's shares are traded on the
Alternative Investment Market ("AIM") of the London Stock Exchange. Under the
AIM Rules companies are required to report under International Financial
Reporting Standards ("IFRS") for the first time for accounting periods beginning
on or after 1 January 2007. AIM Rule 18 requires AIM companies to produce a
half-yearly report, but does not mandate the use of IAS 34.

BASIS OF PREPARATION

These interim financial statements do not constitute statutory accounts within
the meaning of section 240 of the Companies Act 1985. The comparative figures
for the financial year ended 31 December 2006 are not the Company's full
statutory accounts for that year. A copy of the statutory accounts for that year
has been delivered to the Registrar of Companies. The auditors' report on those
accounts was unqualified and did not contain any statements under section 237(2)
or (3) of the Companies Act 1985. The comparative figures for the financial year
ended 31 December 2006 have been abridged from the Group's statutory accounts
for that financial year, translated from UK GAAP to IFRS. The UK GAAP version of
those accounts have been reported on by the Group's auditors and delivered to
the Registrar of Companies.


These interim financial statements have been prepared in accordance with IAS 34
"Interim Financial Reporting" and are covered by IFRS 1 "First-time Adoption of
IFRS", because they are part of the period covered by the Group's first IFRS
financial statements for the year ended 31 December 2007. Except as described
below these condensed consolidated interim financial statements have been
prepared in accordance with all IFRS standards and IFRIC interpretations as
adopted by the European Union issued and effective or issued and early adopted
as at the time of preparing these statements. The IFRS standards and IFRIC
interpretations that will be applicable at 31 December 2007, including those
that will be applicable on an optional basis, are not known with certainty at
the time of preparing these condensed consolidated interim financial statements.
The policies set out below have been consistently applied to all the periods
presented.


The following new standards, amendments to standards and interpretations have
been issued, but are not effective for the financial year ending 31 December
2007 and have not been early adopted:

   -  IFRIC 11, "IFRS 2 - Group and treasury share transactions", effective
      for annual periods beginning on or after 1 March 2007. Management do not 
      expect this interpretation to be relevant for the Group.

   -  IFRIC 12, "Services concession arrangements", effective for annual
      periods beginning on or after 1 January 2008. Management do not expect 
      this interpretation to be relevant for the Group.

   -  IFRS 8, "Operating segments", effective for annual periods beginning
      on or after 1 January 2009, subject to EU endorsement. Management do not
      currently foresee any changes to the Group's business segments.

The Group's consolidated financial statements were prepared in accordance with
the UK GAAP until 31 December 2006. UK GAAP differs in some areas from IFRS. In
preparing these condensed consolidated interim financial statements, management
has amended certain accounting, valuation and consolidation methods applied in
the UK GAAP financial statements to comply with IFRS. The comparative figures in
respect of 2006 were restated to reflect these adjustments, except as described
in the accounting policies.

Reconciliations and descriptions of the effect of the transition from the UK
GAAP to IFRS on the Group's equity and its net income and cash flows are
provided in Note 2.

These financial statements are presented in United States dollars because that
is the currency of the primary economic environment in which the Group operates.
Foreign operations are included in accordance with the policies set out in note
1.

The preparation of financial information in accordance with IAS 34 requires the
use of certain critical accounting estimates. It also requires management to
exercise judgement in the process of applying the Company's accounting policies.
The areas involving a higher degree of judgement or complexity, or areas where
assumptions and estimates are significant to the condensed consolidated interim
financial statements are disclosed below.

The Group's transition date to IFRS is 1 January 2006. The rules for first-time
adoption of IFRS are set out in IFRS 1 "First-time adoption of International
Financial Reporting Standards". In preparing the 2006 IFRS financial
information, these transition rules have been applied to the amounts reported
previously under UK GAAP.


                            PETER HAMBRO MINING plc

              Condensed Consolidated Interim Financial Information

                       for the period ended 30 June 2007

Notes (continued)

Peter Hambro Mining plc restatement of 2006 Financial Information under IFRS
(continued)

BASIS OF PREPARATION (continued)

IFRS 1 generally requires full retrospective application of the Standards and
Interpretations in force at the first reporting date. However, IFRS 1 allows
certain exemptions in the application of particular Standards to prior periods
in order to assist companies with the transition process. PHM has applied the
following exemptions:

   -  Designation of financial assets and financial liabilities exemption:
      the Group reclassified various securities as available-for-sale investments 
      and as financial assets at fair value through profit and loss at the 
      opening balance sheet date of 1 January 2006, the IFRS transition date.

   -  Share-based payment transaction exemption: the Group has elected to
      apply the share-based payment exemption in respect of the C shares issued 
      by Eponymousco Limited in April 2002.

   -  Decommissioning liabilities included in the cost of property, plant
      and equipment exemption: the exemption provided in IFRS 1 from the full
      retrospective application of IFRIC 1 has been applied to determine the
      adjustment required to property, plant and equipment in respect of the
      obligation to decommission existing production facilities.

The Group has not restated business combinations that occurred before the date
of transition to comply with IFRS 3 "Business Combinations". This means that:


   -  The 2002 merger of the economic interests of Peter Hambro Mining plc
      and Eponymousco Limited structure continues to be accounted for as a merger.

   -  Additional deferred tax provisions recognised in respect of fair
      value adjustment on a business combination have been recognised as a 
      reduction of shareholders' funds on the date of transition.

In addition, IFRS 1 requires that estimates made under IFRS must be consistent
with estimates made for the same date under UK GAAP except where adjustments are
required to reflect any differences in accounting policies.

UK GAAP financial information

The UK GAAP financial information for the year ended 31 December 2006, presented
on pages 33 and 36, is based on the Group's full financial statements for that
year, which were prepared in accordance with UK GAAP and on the historical cost
basis. These financial statements have been filed with the Registrar of
Companies.

The UK GAAP financial information for the period ended 30 June 2006, presented
on pages 32 and 35, is based on the Group's half year report for that period,
which was prepared using accounting policies consistent with those applied in
the Group's full financial statements for the year ended 31 December 2006. This
interim financial information is unaudited but reviewed.

Certain changes have been made to the presentation of the UK GAAP financial
information reported in the Group's full financial statements for the year ended
31 December 2006 and half year report for the period ended 30 June 2006, as
follows:

   -  The formats of the balance sheet, profit and loss account and cash
      flow statement have been modified to align them with the IFRS formats, to
      simplify presentation of the adjustments required to arrive at the IFRS 
      figures;

                            PETER HAMBRO MINING plc

              Condensed Consolidated Interim Financial Information

                       for the period ended 30 June 2007

Notes (continued)

Peter Hambro Mining plc restatement of 2006 Financial Information under IFRS
(continued)

1. Accounting policies adopted under IFRS

These condensed consolidated interim financial statements have been prepared
under the historical cost convention, as modified by the revaluation of
available-for-sale financial assets, and financial assets and financial
liabilities (including derivative instruments) at fair value through profit or
loss. The principal accounting policies adopted are set out below.

Judgements in applying accounting policies and key sources of estimation
uncertainty

Many of the amounts included in the financial statements involve the use of
judgement and/or estimation. These judgements and estimates are based on
management's best knowledge of the relevant facts and circumstances, having
regard to previous experience, but actual results may differ from the amounts
included in the financial statements. Information about such judgements and
estimation is contained in the accounting policies and/or the notes to the
financial statements, and the key areas are summarised below.


Areas of judgement that have the most significant effect on the amounts
recognised in the financial statements are:


  -        Determination of mineral reserve estimates - note 1(f)

  -        Asset impairments (including impairment of goodwill) - note 1(g)

  -        Capitalisation of exploration and evaluation costs - note 1(e)

  -        Deferral of stripping costs - note 1(h)

  -        Reclamation and closure obligations - note 1(i)

  -        Stockpiles, gold in process, ore on leach pads and product 
           inventories - note 1(l)

  -        Current income tax recognition - note 1(p)

  -        Recoverable VAT. The Group is due refunds of input tax which remain
           outstanding for periods longer that those provided under statute in 
           Russia.

  -        Identification of functional currencies - note 1(b)

  a)       Basis of consolidation

The financial statements consist of the consolidation of the accounts of Peter
Hambro Mining plc and its subsidiaries.

Subsidiaries

Subsidiaries are all entities over which the Group has the power to govern the
financial and operating policies, generally accompanying a shareholding of more
than one half of the voting rights. The existence and effect of potential voting
rights that are currently exercisable or convertible are considered when
assessing whether the Group controls another entity. Subsidiaries are fully
consolidated from the date on which control is transferred to the Group. They
are de-consolidated from the date on which control ceases.

The purchase method of accounting is used to account for the acquisition of
subsidiaries by the Group. The cost of an acquisition is measured as the fair
value of the assets given, equity instruments issued and liabilities incurred or
assumed at the date of exchange, plus costs directly attributable to the
acquisition. Identifiable assets acquired and liabilities and contingent
liabilities assumed in a business combination are measured initially at their
fair values at the acquisition date, irrespective of the extent of any minority
interest. The excess of the cost of acquisition over the fair value of the
Group's share of the identifiable net assets acquired is recorded as goodwill.
If the cost of acquisition is less than the fair value of the Group's share of
the net assets of the subsidiary acquired, the difference is recognised directly
in the income statement.

Inter-company transactions, balances and unrealised gains on transactions
between Group companies are eliminated. Unrealised losses are also eliminated
unless the transaction provides evidence of an impairment of the asset
transferred. Subsidiaries' accounting policies have been changed where necessary
to ensure consistency with the policies adopted by the Group.


                            PETER HAMBRO MINING plc
              Condensed Consolidated Interim Financial Information
                       for the period ended 30 June 2007

Notes (continued)

Peter Hambro Mining plc restatement of 2006 Financial Information under IFRS
(continued)

1. Accounting policies adopted under IFRS (continued)

a)       Basis of consolidation  (continued)

Joint ventures

The Group's interests in jointly controlled entities are accounted for using the
equity method of accounting.  The Group's investment in joint ventures includes
goodwill (net of any accumulated impairment loss) identified on acquisition.


The Group's share of its joint ventures' post-acquisition profits or losses is
recognised in the income statement, and its share of post-acquisition movements
in reserves is recognised in reserves. The cumulative post-acquisition movements
are adjusted against the carrying amount of the investment.


Unrealised gains on transactions between the Group and its joint ventures are
eliminated to the extent of the Group's interest in the joint ventures.
Unrealised losses are also eliminated unless the transaction provides evidence
of an impairment of the asset transferred. Joint ventures' accounting policies
have been changed where necessary to ensure consistency with the policies
adopted by the Group.

Acquisitions and disposals

The results of businesses acquired during the year are brought into the
consolidated financial statements from the date of acquisition; the results of
businesses sold during the year are included in the consolidated financial
statements for the period up to the date of disposal. Gains or losses on
disposal are calculated as the difference between the sale proceeds (net of
expenses) and the net assets attributable to the interest which has been sold.

b)       Foreign currency translation

Functional and presentation currency

Items included in the financial statements of each of the Group's entities are
measured using the currency of the primary economic environment in which the
entity operates (the functional currency).  For the purpose of the consolidated
financial statements, the results and financial position of each Group company
are expressed in US Dollars, which is the functional currency of the Company and
its subsidiaries. The consolidated financial statements are presented in US
Dollars, which is the Group's presentation currency.

The rates of exchange used to translate balances from other currencies into US
dollars were as follows (currency per US dollar):

                     30 June                 31 December              30 June
                        2007                        2006                 2006
Sterling                0.50                        0.51                 0.55
Russian rouble         25.82                       26.33                27.08


Transactions and balances

Foreign currency transactions are translated into the functional currency using
the exchange rates prevailing at the dates of the transactions. Foreign exchange
gains and losses resulting from the settlement of such transactions and from the
translation at the year-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in the income statement.
Foreign exchange gains and losses resulting from the settlement of foreign
currency transactions and from the translation at year-end exchange rate of
monetary assets and liabilities denominated in foreign currencies are recognised
in the income statement. Non-monetary items carried at fair value that are
denominated in foreign currencies are translated at the rates prevailing at the
date when the fair value was determined. Non-monetary items that are measured in
terms of historical cost in a foreign currency are not retranslated.


                            PETER HAMBRO MINING plc
              Condensed Consolidated Interim Financial Information
                       for the period ended 30 June 2007

Notes (continued)

Peter Hambro Mining plc restatement of 2006 Financial Information under IFRS
(continued)

1. Accounting policies adopted under IFRS (continued)

c)       Goodwill

Goodwill represents the excess of the cost of an acquisition over the fair value
of the Group's share of the net identifiable assets of the acquired subsidiary
or joint venture at the date of acquisition. Goodwill on acquisitions of
subsidiaries is included in non-current assets as a separate line item. Goodwill
on acquisitions of joint ventures is included in "Investments in joint ventures"
and is tested for impairment as part of the overall balance. Separately
recognised goodwill is tested annually for impairment and carried at cost less
accumulated impairment losses. Impairment losses on goodwill are not reversed.
Gains and losses on the disposal of an entity include the carrying amount of
goodwill relating to the entity sold.

Goodwill is allocated to cash-generating units for the purpose of impairment
testing. The allocation is made to those cash-generating units or groups of
cash-generating units that are expected to benefit from the synergies of the
business combination in which the goodwill arose.

The excess of the acquirer's interest in the net fair value of the identifiable
assets, liabilities and contingent liabilities acquired over cost is recognised
immediately in the income statement.

d)       Intangible assets

Purchased intangible assets excluding mineral rights are recorded at cost less
accumulated amortisation and impairment.

Intangible assets acquired as part of an acquisition of a business are
capitalised separately from goodwill if the asset is separable or arises from
contractual or legal rights, and the fair value can be measured reliably on
initial recognition.

Intangible assets excluding mineral rights are amortised using a straight-line
method based on estimated useful lives.

e)       Exploration and evaluation

As part of the Group's transition to IFRS there have been no changes to the
Group's policy for the recognition and measurement of exploration and evaluation
expenditure.

Exploration and evaluation expenditure related to an area of interest where the
Group has tenure are capitalised as intangible assets.

Exploration and evaluation expenditure in the relevant area of interest
comprises costs which are directly attributable to:

   -       researching and analysing existing exploration data;

   -       conducting geological studies, exploratory drilling and sampling;

   -       examining and testing extraction and treatment methods; and

   -       compiling pre-feasibility and feasibility studies.


Exploration and evaluation expenditure also includes the costs incurred in
acquiring mineral rights, the entry premiums paid to gain access to areas of
interest and amounts payable to third parties to acquire interests in existing
projects. Capitalised costs include general and administrative costs that are
only allocated to the extent that those costs can be related directly to
operation activities in the relevant area of interest.

All capitalised exploration and evaluation expenditure is assessed for
impairment if facts and circumstances indicate that impairment may exist. In
circumstances where a property is abandoned, the cumulative capitalised costs
relating to the property are written off in the period.

When development of a mine begins, exploration and evaluation assets are
transferred to mine development assets (see 1(f)).


                            PETER HAMBRO MINING plc
              Condensed Consolidated Interim Financial Information
                       for the period ended 30 June 2007

Notes (continued)

Peter Hambro Mining plc restatement of 2006 Financial Information under IFRS
(continued)

1. Accounting policies adopted under IFRS (continued)

f)         Property, plant and equipment

Land and buildings, plant and equipment

On initial recognition, land, property, plant and equipment are valued at cost,
being the purchase price and the directly attributable cost of acquisition or
construction required to bring the asset to the location and condition necessary
for the asset to be capable of operating in the manner intended by the Group.

Assets in the course of construction are capitalised in the capital construction
in progress account. On completion, the cost of construction is transferred to
the appropriate category of property, plant and equipment.

Development expenditure

Development expenditure incurred by or on behalf of the Group is accumulated
separately for each area of interest in which economically recoverable resources
have been identified. Such expenditure includes costs directly attributable to
the construction of a mine and the related infrastructure. Once a development
decision has been taken, the carrying amount of the exploration and evaluation
expenditure in respect of the area of interest is aggregated with the
development expenditure and classified under non current assets as "mine
development assets". Mine development assets are reclassified as "mining
properties" at the end of the commissioning phase, when the mine is capable of
operating in the manner intended by management. No depreciation is recognised in
respect of mine development assets until they are reclassified as "mining
properties". Mine development assets are tested for impairment in accordance
with the policy in note 1(g).

Subsequent costs are included in the asset's carrying amount or recognised as a
separate asset, as appropriate, only when it is probable that future economic
benefits associated with the item will flow to the Group and the cost of the
item can be measured reliably. All other repairs and maintenance are charged to
the income statement during the financial period in which they are incurred.

Depreciation

Depreciation is provided so as to write off the cost, less estimated residual
values of property, plant and equipment as follows:

Mine production assets and certain mining equipment, where economic benefits
from the asset are consumed in a pattern which is linked to the production
level, are depreciated using a unit of production method based on estimated
economically recoverable reserves, which results in a depreciation charge
proportional to the depletion of reserves. Subsequently these assets are
measured at cost less accumulated depreciation and impairment.

Capitalised mine development expenditure is, upon commencement of production and
reclassified to "mining properties", depreciated using a unit of production
method based on the estimated economically recoverable reserves to which they
relate or are written-off if the property is abandoned. Certain capitalised mine
development costs related to alluvial gold operations are, upon commencement of
production, depreciated using the straight-line method based on estimated useful
lives or the life of the relevant license, whichever is shorter.

Other tangible fixed assets are recorded at cost, net of accumulated
depreciation. Depreciation is provided on all such tangible assets using the
straight-line method based on estimated useful lives, or over the remaining life
of the mine if shorter.
                                                              Average life
Buildings                                                          15 - 50
Plant and machinery                                                 3 - 20
Vehicles                                                             5 - 7
Office equipment                                                    5 - 10
Computer equipment                                                   3 - 5


                            PETER HAMBRO MINING plc
              Condensed Consolidated Interim Financial Information
                       for the period ended 30 June 2007

Notes (continued)

Peter Hambro Mining plc restatement of 2006 Financial Information under IFRS
(continued)

1. Accounting policies adopted under IFRS (continued)

f)         Property, plant and equipment (continued)

Residual values and useful lives are reviewed, and adjusted if appropriate, at
each balance sheet date. Changes to the estimated residual values or useful
lives are accounted for prospectively.

In applying the units of production method, depreciation is normally calculated
using the quantity of material processed at the mine in the period as a
percentage of the total quantity of material to be extracted in current and
future periods based on proven and probable reserves (and, for some mines,
mineral resources). In assessing the life of a mine for accounting purposes,
mineral resources are only taken into account where there is a high degree of
confidence of economic extraction.

g)       Impairment of non-financial assets

Property, plant and equipment and finite life intangible assets are reviewed for
impairment if there is any indication that the carrying amount may not be
recoverable. This applies to the Group's share of the assets held by the joint
ventures as well as the assets held by the Group itself.

When a review for impairment is conducted, the recoverable amount is assessed by
reference to the higher of "value in use" (being the net present value of
expected future cash flows of the relevant cash generating unit) or "fair value
less costs to sell". Where there is no binding sale agreement or active market,
fair value less costs to sell is based on the best information available to
reflect the amount the Group could receive for the cash generating unit in an
arm's length transaction. Future cash flows are based on:

   -    estimates of the quantities of the reserves and mineral resources for
        which there is a high degree of confidence of economic extraction;

   -    future production levels;

   -    future commodity prices (assuming the current market prices will
        revert to the Group's assessment of the long term average price, 
        generally over a period of three to five years); and

  -     future cash costs of production, capital expenditure, environment
        protection, rehabilitation and closure.

IAS 36 "Impairment of assets" includes a number of restrictions on the future
cash flows that can be recognised in respect of future restructurings and
improvement related capital expenditure. When calculating "value in use", it
also requires that calculations should be based on exchange rates current at the
time of the assessment.

For operations with a functional currency other than the US dollar, the
impairment review is undertaken in the relevant functional currency. These
estimates are based on detailed mine plans and operating budgets, modified as
appropriate to meet the requirements of IAS 36 "Impairment of assets".

The discount rate applied is based upon pre-tax discount rate that reflects
current market assessments of the time value of money and the risks associated
with the relevant cash flows, to the extent that such risks are not reflected in
the forecast cash flows.

If the carrying amount of the asset exceeds its recoverable amount, the asset is
impaired and an impairment loss is charged to the income statement so as to
reduce the carrying amount in the balance sheet to its recoverable amount. A
previously recognised impairment loss is reversed if the recoverable amount
increases as a result of a reversal of the conditions that originally resulted
in the impairment. This reversal is recognised in the income statement and is
limited to the carrying amount that would have been determined, net of
depreciation, had no impairment loss been recognised in prior years.


                            PETER HAMBRO MINING plc
              Condensed Consolidated Interim Financial Information
                       for the period ended 30 June 2007

Notes (continued)

Peter Hambro Mining plc restatement of 2006 Financial Information under IFRS
(continued)

1. Accounting policies adopted under IFRS (continued)

h)       Deferred stripping costs

Stripping (i.e. overburden and other waste removal) costs incurred in the
development of a mine before production commences are capitalised as part of the
cost of constructing the mine and subsequently amortised over the life of the
operation.

The Group defers stripping costs incurred subsequently, during the production
stage of its operations, for those operations where this is the most appropriate
basis for matching the costs against the related economic benefits. This is
generally the case where there are fluctuations in stripping costs over the life
of the mine, and the effect is material. Deferred stripping costs are charged to
operating costs on the basis of allocating the actual volume of stripping to the
blocs of ore mined. Where actual allocation of deferred stripping is not
feasible deferred stripping costs are charged to operating costs on the basis of
the average life of the mine stripping ratio. The average stripping ratio is
calculated as the number of cubic metres of waste material removed per tonne of
ore mined. The average life of the mine ratio is revised annually in the light
of additional knowledge and change in estimates.

i)         Provisions for close down and restoration costs

Close down and restoration costs include the dismantling and demolition of
infrastructure and the removal of residual materials and remediation of
disturbed areas. Close down and restoration costs are provided for in the
accounting period when the legal or constructive obligation arising from the
related disturbance occurs, whether this occurs during the mine development or
during the production phase, based on the net present value of estimated future
costs. Provisions for close down and restoration costs do not include any
additional obligations which are expected to arise from future disturbance. The
costs are estimated on the basis of a closure plan. The cost estimates are
calculated annually during the life of the operation to reflect known
developments and are subject to formal review at regular intervals.

The amortisation or "unwinding" of the discount applied in establishing the net
present value of provisions is charged to the income statement in each
accounting period. The amortisation of the discount is shown as a financing
cost, rather than as an operating cost. Other movements in the provisions for
close down and restoration costs, including those resulting from new
disturbance, updated cost estimates, changes to the lives of operations and
revisions to discount rates are capitalised within property, plant and
equipment. These costs are then depreciated over the lives of the assets to
which they relate.

Where rehabilitation is conducted systematically over the life of the operation,
rather than at the time of closure, provision is made for the outstanding
continuous rehabilitation work at each balance sheet date. All other costs of
continuous rehabilitation are charged to the income statement as incurred.


                            PETER HAMBRO MINING plc
              Condensed Consolidated Interim Financial Information
                       for the period ended 30 June 2007

Notes (continued)

Peter Hambro Mining plc restatement of 2006 Financial Information under IFRS
(continued)

1. Accounting policies adopted under IFRS (continued)

j)         Financial instruments

Financial instruments recognised in the balance sheet include other investments,
convertible bonds, trade and other receivables, cash and cash equivalents,
borrowings, derivatives, securities held for trading and trade and other
payables.

Financial instruments are initially measured at fair value when the Group
becomes a party to their contractual arrangements. Transaction costs are
included in the initial measurement of financial instruments, except financial
instruments classified as at fair value through profit and loss. The subsequent
measurement of financial instruments is dealt with below.

Trade and other receivables

Trade receivables are recognised initially at fair value and subsequently
measured at amortised cost using the effective interest method, less accumulated
impairment. Impairment of trade and other receivables is established when there
is objective evidence as a result of a loss event that the Group will not be
able to collect all amounts due according to the original terms of the
receivables. The amount of the impairment is the difference between the asset's
carrying amount and the present value of estimated future cash flows, discounted
at the original effective interest rate. The impairment is recognised in the
income statement.

Other investments

Listed investments and unlisted equity investments, other than investments in
subsidiaries, joint ventures, and associates, are classified as
available-for-sale financial assets and subsequently measured at fair value.

Listed investments fair values are calculated by reference to the quoted selling
price at the close of business on the balance sheet date. Fair values for
unlisted equity investments are estimated using methods reflecting the economic
circumstances of the investee. Equity investments for which fair value cannot be
measured reliably are recognised at cost less impairment. Changes in fair value
are recognised in equity in the period in which they arise. These amounts are
removed from equity and reported in income when the asset is derecognised or
when there is evidence that the asset is impaired.

Investments which management has the ability to hold to maturity are classified
as held-to-maturity financial assets and are subsequently measured at amortised
cost using the effective interest rate method. If there is evidence that held-to
maturity financial assets are impaired, the carrying amount of the assets is
reduced and the loss recognised in the income statement.

Financial assets at fair value through profit or loss

This category has two sub-categories: financial assets held for trading, and
those designated at fair value through profit or loss at inception. A financial
asset is classified in this category if acquired principally for the purpose of
selling in the short term or if so designated by management. Derivatives are
also categorised as held for trading unless they are designated as hedges.
Assets in this category are classified as current if they are either held for
trading or are expected to be realised within 12 months of the balance sheet
date.

Cash and cash equivalents

Cash and cash equivalents are defined as cash on hand, demand deposits and
short-term, highly liquid investments readily convertible to known amounts of
cash and subject to insignificant risk of changes in value and are measured at
cost which is deemed to be fair value as they have a short-term maturity.

Financial liabilities

Financial liabilities, other than derivatives, are subsequently measured at
amortised cost, using the effective interest rate method.


                            PETER HAMBRO MINING plc
              Condensed Consolidated Interim Financial Information
                       for the period ended 30 June 2007

Notes (continued)

Peter Hambro Mining plc restatement of 2006 Financial Information under IFRS
(continued)

1. Accounting policies adopted under IFRS (continued)

j)         Financial instruments (continued)

Borrowings

Borrowings are recognised initially at fair value, net of transaction costs
incurred. Borrowings are subsequently stated at amortised cost; any difference
between the proceeds (net of transaction costs) and the redemption value is
recognised in the income statement over the period of the borrowings using the
effective interest method.

The fair value of the liability portion of a convertible bond is determined
using a market interest rate for an equivalent non-convertible bond. This amount
is recorded as a liability on an amortised cost basis until extinguished on
conversion or maturity of the bonds. The remainder of the proceeds is allocated
to the conversion option. This is recognised and included in shareholders'
equity, net of income tax effects.

Borrowings are classified as current liabilities unless the group has an
unconditional right to defer settlement of the liability for at least 12 months
after the balance sheet date.

Trade payables

Trade payables are recognised initially at fair value and subsequently measured
at amortised cost using the effective interest method.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the
assets of the Group after deducting all of its liabilities. Equity instruments
issued are recorded at the proceeds received, net of direct issue cost.

The Group assesses at each balance sheet date whether there is objective
evidence that a financial asset or a group of financial assets is impaired. In
the case of equity securities classified as available for sale, a significant or
prolonged decline in the fair value of the security below its cost is considered
in determining whether the securities are impaired. If any such evidence exists
for available-for-sale financial assets, the cumulative loss - measured as the
difference between the acquisition cost and the current fair value, less any
impairment loss on that financial asset previously recognised in profit or loss
- is removed from equity and recognised in the income statement. Impairment
losses recognised in the income statement on equity instruments are not reversed
through the income statement.

k)       Provisions

Provisions are recognised when the Group has a present obligation, whether legal
or constructive, as a result of a past event for which it is probable that an
outflow of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation.

Provisions are measured at the present value of management's best estimate of
the expenditure required to settle the obligation at the balance sheet date. The
discount rate used to determine the present value reflects current market
assessments of the time value of money and the risks specific to the liability.


                            PETER HAMBRO MINING plc
              Condensed Consolidated Interim Financial Information
                       for the period ended 30 June 2007

Notes (continued)

Peter Hambro Mining plc restatement of 2006 Financial Information under IFRS
(continued)

1. Accounting policies adopted under IFRS (continued)

l)         Inventories

Inventories are valued at the lower of cost and net realisable value after
appropriate allowances for redundant and slow moving items. Net realisable value
represents estimated selling price in the ordinary course of business less any
further costs expected to be incurred to completion. Cost is determined on the
following bases:

   -     gold in process is valued at the average total production cost at the
         relevant stage of production;

   -     gold on hand is valued on an average total production cost method;

   -     ore stockpiles are valued at the average moving cost of mining and
         stockpiling the ore. Stockpiles are allocated as a non-current asset 
         where the stockpile exceeds current processing capacity;

   -     consumable stores are valued at average cost; and

   -     heap leach pad materials are measured on an average total production
         cost basis. The cost of materials on the leach pad from which gold is 
         expected to be recovered in a period greater than 12 months is classified 
         as a non-current asset.

A portion of the related depreciation, depletion and amortisation charge
relating to production is included in the cost of inventory.

m)     Leases

Leases of property, plant and equipment where the Group has substantially all
the risks and rewards of ownership are classified as finance leases. Finance
leases are capitalised at the lease's inception at the lower of the fair value
of the leased property and the present value of the minimum lease payments. Each
lease payment is allocated between the liability and finance charges so as to
achieve a constant rate on the finance balance outstanding. The corresponding
rental obligations, net of finance charges, are included in other long-term
payables. The interest element of the finance cost is charged to the income
statement over the lease period so as to produce a constant periodic rate of
interest on the remaining balance of the liability for each period.

Leases where the lessor retains substantially all the risks and rewards of
ownership are classified as operating leases. Payments made under operating
leases (net of any incentives received from the lessor) are charged to the
income statement on a straight-line basis over the period of the lease.

n)       Revenue recognition

Revenue is recognised at the fair value of the consideration received or
receivable to the extent that it is probable that the economic benefits will
flow to the group and the revenue can be reliably measured. Revenue derived from
goods and services comprises the fair value of the sale of goods and services to
third parties, net of value added tax, rebates and discounts. The following
criteria must also be present:

   -    the sale of mining products is recognised when the significant risks
        and rewards of ownership of the products are transferred to the buyer;

   -    revenue derived from services is recognised in the accounting period
        in which the services are rendered;

   -    revenue from bulk sample sales made during the exploration or
        development phases of operations is recognised as a sale in the income
        statement;
   -    dividends are recognised when the right to receive payment is established; 
        and

   -    interest is recognised on a time proportion basis, taking account of
        the principal outstanding and the effective rate over the period to 
        maturity, when it is determined that such income will accrue to the Group.


                            PETER HAMBRO MINING plc
              Condensed Consolidated Interim Financial Information
                       for the period ended 30 June 2007
Notes (continued)

Peter Hambro Mining plc restatement of 2006 Financial Information under IFRS
(continued)

1. Accounting policies adopted under IFRS (continued)

o)       Borrowing costs

Interest on borrowings relating to the financing of major capital projects under
construction is capitalised during the construction phase as part of the cost of
the project. Such borrowing costs are capitalised over the period during which
the asset is being acquired or constructed and borrowings have been incurred.
Capitalisation ceases when construction is interrupted for an extended period or
when the asset is substantially complete.

Other borrowing costs are expensed as incurred.

p)       Taxation

Current tax is the tax expected to be payable on the taxable income for the year
calculated using rates that have been enacted or substantively enacted by the
balance sheet date. It includes adjustments for tax expected to be payable or
recoverable in respect of previous periods.

Full provision is made for deferred taxation on all temporary differences
existing at the balance sheet date with certain limited exceptions. Temporary
differences are the difference between the carrying value of an asset or
liability and its tax base. The main exceptions to this principle are as
follows:

    -   tax payable on the future remittance of the past earnings of
        subsidiaries, associates and jointly controlled entities is provided 
        for except where the Company is able to control the remittance of 
        profits and it is probable that there will be no remittance in the 
        foreseeable future;

    -   deferred tax is not provided on the initial recognition of goodwill
        or from the initial recognition of an asset or liability in a transaction 
        that does not affect accounting profit or taxable profit and is not a 
        business combination, such as on the recognition of a provision for close 
        down and restoration costs and the related asset or on the inception of 
        finance lease; and

    -   deferred tax assets are recognised only to the extent that it is more
        likely than not that they will be recovered.

Deferred tax is provided in respect of fair value adjustments on acquisitions.
These adjustments may relate to assets such as mining rights that, in general,
are not eligible for income tax allowances. In such cases, the provision for
deferred tax is based on the difference between the carrying value of the asset
and its nil income tax base.

Deferred tax is calculated at the tax rates that are expected to apply in the
period when the liability is settled or the asset is realised. Deferred tax is
charged or credited in the income statement, except when it relates to items
charged or credited directly to equity, in which case the deferred tax is also
dealt with in equity.

Deferred tax assets and liabilities are offset when there is a legally
enforceable right to set-off current tax assets against current tax liabilities
and when they relate to income taxes levied by the same taxation authority and
the Group intends to settle its current tax assets and liabilities on a net
basis.

q)       Employee benefits

The Group operates a defined contribution pension scheme for the benefit of its
employees. The funds of the scheme are administered by independent trustees and
are separate from the Group. Contributions are recognised as they fall due.

                            
                             PETER HAMBRO MINING plc
              Condensed Consolidated Interim Financial Information
                       for the period ended 30 June 2007

Notes (continued)

2. IFRS Reconciliation to UK GAAP

Reconciliation of profit for the six months ended 30 June 2006 and the year
ended 31 December 2006

                                           Note
                                          ------
                                                      Six months    Year ended
                                                           ended   31 December
                                                    30 June 2006          2006
                                                           $'000         $'000

Total net income under UK GAAP                            11,118        30,556
attributable to equity holder of the
company

Write-back of negative goodwill             a)                 -          (176)

Restatement of depreciation charge as a     b)               272           490
result of changes in the accounting
policies
 
Reversal of restoration and closing costs   c)                21           117
under UK GAAP
Capitalised close down and restoration      c)               (18)          (33)
costs
Unwinding of discount on provision          c)               (13)          (24)

Allocation of revised depreciation charge   d)                77           (24)
to inventories

Deferred tax - on fair value adjustment     e)               107           318
Deferred tax - on other IFRS adjustments    e)              (274)          179

Share of JVs adjustments                    f)               283           551

Adjustment to minority interest                              (1)            32
                                                        ----------    ----------
Total net income under IFRS attributable                  11,572        31,986
to equity holder of the company                         ----------    ----------



                            PETER HAMBRO MINING plc
              Condensed Consolidated Interim Financial Information
                       for the period ended 30 June 2007

Notes (continued)

Reconciliation of equity at 01 January 2006, 30 June 2006 and 31 December 2006

                                    Note
                                    ------
                                             1 January     30 June  31 December
                                                  2006        2006        2006
                                                 $'000       $'000       $'000

Total equity under UK GAAP                     244,449     273,493     316,289

Write-back of negative goodwill      a)            176         176           -

Restatement of depreciation charge   b)             -          272         490
as a result of changes in the
accounting policies
 
Reversal of restoration and closing  c)            172         193         289
costs under UK GAAP
Capitalised close down and           c)           (129)       (144)       (162)
restoration costs
Unwinding of discount on             c)            (92)       (105)       (116)
provision

Allocation of revised depreciation   d)          1,962       2,039       1,938
charge to inventories

Deferred tax - on fair value         e)         (4,104)     (3,997)     (3,786)
adjustment
Deferred tax - on other IFRS         e)         (3,773)     (4,047)     (3,594)
adjustments
Minority interest - on fair value    e)              -           -      (1,950)
adjustment

Share of JVs adjustments             f)            105         387         656
                                              ----------  ----------   ---------

Total equity under IFRS                        238,766     268,267     310,054
                                              ----------  ----------   ---------


The above amounts include minority interests which under IFRS are classified as
equity.

The principal differences between UK GAAP and IFRS impacting on the Group's
income statements, balance sheets and equity reconciliations are as follows:

a)       Write-back of negative goodwill

Under IFRS any negative goodwill must be recognised immediately in the statement
of income after reassessment, identification and measurement of the acquiree's
identifiable net assets and the measurement of the combination's costs;

b)       Restatement of depreciation charge as a result of changes in the
accounting policies

Depreciation policy in respect of certain non-current tangible assets was
changed from straight-line method to unit-of-production method of depreciation
Note 1(f);

c)       A provisions for close down and restoration costs

Provision and related non-current asset was recognised under IAS 37 "Provisions,
Contingent Liabilities and Contingent Assets" in accordance with the IFRS
accounting policies Note 1(i). Previously recognised costs were reversed
accordingly;

d)       Allocation of revised depreciation charge to inventories

A portion of the related depreciation and amortisation charge is included in the
cost of inventories.


                             PETER HAMBRO MINING plc
              Condensed Consolidated Interim Financial Information
                       for the period ended 30 June 2007

Notes (continued)

2. IFRS Reconciliation to UK GAAP (continued)

e)       Deferred tax

    -   Deferred tax on fair value adjustments arising on acquisitions. IFRS
        requires deferred tax to be recognised on all fair value adjustments, 
        other than those recorded as goodwill. The profit under IFRS will benefit
        as the additional deferred tax provisions are released to the income 
        statement in line with amortisation of the related fair value adjustments.
        For acquisitions prior to 1 January 2006, the increase in deferred tax 
        provisions was reflected as a reduction in opening shareholders' equity.
        For acquisitions after 1 January 2006, these additional deferred tax 
        provisions are offset by increases to the value of goodwill or other
        acquired assets.

    -   Deferred tax related to other IFRS adjustments.

f)      Share of joint ventures' adjustments

The Group has adopted equity accounting for all jointly controlled entities.
Principal IFRS adjustments in joint ventures are as follows:

    -  Reversal of goodwill amortisation. The systematic amortisation of
       goodwill under UK GAAP, by an annual charge to the profit and loss account,
       ceased under IFRS.

    -  Restatement of depreciation charge as a result of changes in the
       accounting policies. Depreciation policy in respect of certain non-current
       tangible assets was changed from straight-line method to unit-of-production
       method of depreciation Note 1(f)

    -  Deferred tax on fair value adjustments arising on acquisitions.


                             PETER HAMBRO MINING plc
              Condensed Consolidated Interim Financial Information
                       for the period ended 30 June 2007

Notes (continued)

2. IFRS Reconciliation to UK GAAP (continued)

Income statement reconciliation

A reconciliation between the UK GAAP and IFRS profit for the six months ended 30
June 2006 is provided below. The UK GAAP profit and loss account has been
presented in an IFRS income statement format.

                     Note
                    ------
                                     GAAP       Adjustment               IFRS
                            Six months to                        Six months to
                             30 June 2006                         30 June 2006
                                    $'000            $'000               $'000

Gross revenue:                                          
group and share of
joint ventures                     63,108                -              63,108
                               -----------      -----------         -----------
Group revenue                      59,024                -              59,024

Net operating                     (39,134)             352             (38,782)
expenses

Operating profit                   19,890              352              20,242

Share of results                    (749)             283                (466)
of joint ventures

Profit before                      19,141              635              19,776
finance items and tax

Financial income                    4,272                -               4,272
Financial             c)           (5,812)             (13)             (5,825)
expenses

Profit before                      17,601              622              18,223
taxation

Taxation                           (6,377)            (167)             (6,544)
                                -----------      -----------         -----------
Profit for the  period             11,224              455              11,679

Attributable to:
- equity holders                   11,118              454              11,572
of the company
- minority                           106                1                 107
interest


The UK GAAP amounts are based on the UK GAAP profit and loss account adjusted to
be consistent with the 2006 IFRS income statement. The main reclassification was
to show share of results of joint ventures as one line on the face of the income
statement.


                             PETER HAMBRO MINING plc
              Condensed Consolidated Interim Financial Information
                       for the period ended 30 June 2007

Notes (continued)

2. IFRS Reconciliation to UK GAAP (continued)

Income statement reconciliation (continued)

A reconciliation between the UK GAAP and IFRS profit for the year ended 31
December 2006 is provided below. The UK GAAP profit and loss account has been
presented in an IFRS income statement format.

                            Note
                           ------
                                        GAAP        Adjustment            IFRS
                                       Year to                          Year to
                                    31 December                      31 December
                                         2006                             2006
                                        $'000            $'000           $'000

Gross revenue: group and              177,034                -         177,034
share of joint ventures             -----------      -----------     -----------
Group revenue                         157,807                -         157,807

Net operating expenses               (108,558)             374        (108,184)

Operating profit                       49,249              374          49,623

Share of results of joint               (724)             551            (173)
ventures

Profit before finance                  48,525              925          49,450
items and tax

Financial income                        7,429               -           7,429
Financial expenses          c)        (11,740)             (24)        (11,764)

Profit before taxation                 44,214              901          45,115

Taxation                              (13,239)             497         (12,742)
                                    -----------      -----------     -----------

Profit for the period                  30,975            1,398          32,373

Attributable to:
- equity holders of the                30,556            1,430          31,986
company
- minority interest                       419             (32)            387


The UK GAAP amounts are based on the UK GAAP profit and loss account adjusted to
be consistent with the 2006 IFRS income statement. The main reclassification was
to show share of results of joint ventures as one line on the face of the income
statement.


                            PETER HAMBRO MINING plc
                      Condensed Consolidated Balance Sheet
                              At 31 December 2006

Notes (continued)

2. IFRS Reconciliation to UK GAAP (continued)

Balance Sheet reconciliations

A reconciliation between the UK GAAP and IFRS consolidated balance sheet at 1
January 2006 (date of transition to IFRS) is provided below. The UK GAAP balance
sheet has been amended to an IFRS presentation.

                             Note
                             ------
                                          GAAP        Adjustment         IFRS
                                   31 December                       1 January 
                                          2005                            2006
                                         $'000          $'000            $'000
                                                                   
Assets
Non-current assets                      226,161         1,504          227,665
Goodwill                      a)           (176)          176                -
Intangible assets incl.                 132,786       (29,911)         102,875
exploration and development**

Property, plant and         
equipment                   b), c)       74,959        30,232          105,191

Investments in joint         
ventures                      f)         10,609           105           10,714
Other investments                           448             -              448
Inventories                   d)          7,535           902            8,437
                                         --------      --------         --------
Current Assets                          191,793         1,060          192,853
Inventories                   d)         15,986         1,060           17,046
Trade and other                          31,273             -           31,273
receivables
Cash and cash equivalents               144,534             -          144,534
                                         --------      --------         --------

Total assets                            417,954         2,564          420,518
Liabilities
Current liabilities                     (18,909)            -          (18,909)
Trade and other payables                (17,735)            -          (17,735)
Current income tax                       (1,174)            -           (1,174)
liabilities                              --------      --------         --------

Net Current Assets                      172,884         1,060          173,944
                                         --------      --------         --------

Total Assets less Current               399,045         2,564          401,609
Liabilities

Non-current liabilities                (154,596)       (8,247)        (162,843)
Creditors, amounts falling               (2,250)            -           (2,250)
due after one year
Borrowings                             (133,920)            -         (133,920)
Deferred income tax           e)         (1,182)       (7,877)          (9,059)
liabilities
Provisions                    c)        (17,244)         (370)         (17,614)
                                         --------      --------         --------
Net Assets                              244,449        (5,683)         238,766
                                         ========      ========         ========

Capital and reserves
Share capital                                 1,273            -         1,273
Other reserves                              176,722            -       176,722
Merger reserve ***                            8,755       (8,755)            -
Contingent reserve on acquisition             3,152            -         3,152
Equity reserve on bonds                       1,583            -         1,583
Retained earnings                            48,440        3,115        51,555
                                            --------     --------      --------
Equity attributable to PHM shareholders     239,925       (5,640)      234,285
Minority interests *                          4,524          (43)        4,481
                                            --------     --------      --------
Total equity                                244,449       (5,683)      238,766
                                            ========     ========      ========



                            PETER HAMBRO MINING plc
                      Condensed Consolidated Balance Sheet
                              At 31 December 2006

Notes (continued)

2. IFRS Reconciliation to UK GAAP (continued)

Balance Sheet reconciliations (continued)

A reconciliation between the UK GAAP and IFRS consolidated balance sheet at 30
June 2006 is provided below. The UK GAAP balance sheet has been amended to an
IFRS presentation.

                          Note
                          ------
                                            GAAP     Adjustment           IFRS
                                    30 June 2006                  30 June 2006
                               
                                           $'000         $'000           $'000
                               
Assets
Non-current assets                       257,149         2,629         259,778
Goodwill                   a)               (176)          332             156
Intangible assets incl.                  149,770       (28,932)        120,838
exploration and
development **
Property, plant and      b), c)           84,977        29,510         114,487
equipment
Investments in joint       f)              9,862           387          10,249
ventures
Other investments                            764             -             764
Inventories                d)             11,952         1,332          13,284
                                          --------      --------       ---------

Current Assets                           202,166           707         202,873
Inventories                d)             21,586           707          22,293
Trade and other                           38,296             -          38,296
receivables
Cash and cash                            142,284             -         142,284
equivalents                               --------      --------       ---------

Total assets                             459,315         3,336         462,651

Liabilities
Current liabilities                      (31,873)            -         (31,873)
Trade and other                          (30,579)            -         (30,579)
payables
Current income tax                        (1,294)            -          (1,294)
liabilities                               --------      --------       ---------

Net Current Assets                       170,293           707         171,000
                                          --------      --------       ---------

Total Assets less                        427,442         3,336         430,778
Current Liabilities

Non-current                             (153,949)       (8,562)       (162,511)
liabilities
Borrowings                              (134,407)            -        (134,407)
Deferred income tax        e)             (4,349)       (8,201)        (12,550)
liabilities
Provisions                 c)            (15,193)         (361)        (15,554)
                                          --------      --------       ---------
Net Assets                               273,493        (5,226)        268,267
                                          ========      ========       =========

Capital and reserves
Share capital                              1,298             -           1,298
Share premium                             17,797             -          17,797
Other reserves                           176,722             -         176,722

Merger reserve ***                         8,755        (8,755)              -
Contingent reserve on acquisition          3,152             -           3,152
Equity reserve on bonds                    1,583             -           1,583
Retained earnings                         59,557         3,570          63,127
                                         --------     --------         ---------
Equity attributable to PHM shareholders  268,864        (5,185)        263,679
Minority interests *                       4,629           (41)          4,588
                                         --------     --------         ---------
Total equity                             273,493        (5,226)        268,267
                                         ========     ========         =========


                            PETER HAMBRO MINING plc
                      Condensed Consolidated Balance Sheet
                              At 31 December 2006

Notes (continued)

2. IFRS Reconciliation to UK GAAP (continued)

Balance Sheet reconciliations (continued)

A reconciliation between the UK GAAP and IFRS consolidated balance sheet at 31
December 2006 is provided below. The UK GAAP balance sheet has been amended to
an IFRS presentation.

                                  Note
                                  ------
                                                GAAP    Adjustment        IFRS
                                         31 December               31 December
                                                2006                      2006
                                               $'000        $'000        $'000
                                      
Assets
Non-current assets                           349,718        10,631     360,349
Goodwill                         a), e)        5,439         7,957      13,396
Intangible assets incl.                      183,220       (27,954)    155,266
exploration and development **
Property, plant and equipment    b), c)      137,197        28,733     165,930
Investments in joint ventures      f)          9,878           656      10,534
Other investments                              1,022             -       1,022
Inventories                        d)         12,962         1,239      14,201
                                              --------      --------    --------

Current Assets                               144,886           699     145,585
Inventories                        d)         21,160           699      21,859
Trade and other receivables                   47,323             -      47,323
Securities held for trading                   13,937             -      13,937
Cash and cash equivalents                     62,466             -      62,466
                                              --------      --------    --------

Total assets                                 494,604        11,330     505,934

Liabilities
Current liabilities                          (38,829)            -     (38,829)
Trade and other payables                     (37,856)            -     (37,856)
Current income tax liabilities                  (973)            -        (973)
                                              --------      --------    --------

Net Current Assets                           106,057           699     106,756
                                              --------      --------    --------

Total Assets less Current                    455,775        11,330     467,105
Liabilities

Non-current liabilities                     (139,486)      (17,565)   (157,051)
Borrowings                                  (134,740)            -    (134,740)
Deferred income tax                e)         (4,457)      (17,287)    (21,744)
liabilities
Provisions                         c)           (289)         (278)       (567)
                                              --------      --------    --------
Net Assets                                   316,289        (6,235)    310,054
                                              ========      ========    ========

Capital and reserves
Share capital                                 1,311            -         1,311
Share premium                                35,082            -        35,082
Other reserves                              176,722            -       176,722

Merger reserve ***                            8,755       (8,755)            -
Equity reserve on bonds                       1,583            -         1,583
Retained earnings                            78,996        4,545        83,541
                                             --------     --------      --------
Equity attributable to PHM shareholders     302,449       (4,210)      298,239
Minority interests *                         13,840       (2,025)       11,815
                                             --------     --------      --------
Total equity                                316,289       (6,235)      310,054
                                             ========     ========      ========


                            PETER HAMBRO MINING plc
                      Condensed Consolidated Balance Sheet
                              At 31 December 2006

Notes (continued)

2. IFRS Reconciliation to UK GAAP (continued)

Balance Sheet reconciliations (continued)

The UK GAAP amounts are based on the UK GAAP balance sheet adjusted to be
consistent with the 2006 IFRS statement. The main reclassifications were as
follows:

*    Minority interests have been reclassified to a separate component of equity.
     Under UK GAAP they were reported as a liability.

**   Exploration and development assets have been reclassified to intangible
     assets and property, plant and equipment accordingly.

***  Merger reserve has been reclassified to retained earnings.

Various other categories have been renamed in accordance with IFRS.

Cash flow statements

The presentation of certain items in the cash flow statement prepared under IAS
7 "Cash Flow Statements" differs to the previous

presentation under UK GAAP.

Under IFRS, cash flows are segregated into three categories: operating,
investing and financing. This differs from UK GAAP which requires additional sub
categories. Foreign currency exchange differences are also recorded on the face
of the cash flow statement under IFRS. The cash inflows and outflows under IFRS
also differ to those reported under UK GAAP.


                             PETER HAMBRO MINING plc
              Condensed Consolidated Interim Financial Information
                       for the period ended 30 June 2007

                                Notes (continued)

3.  Business segment information

               Gold mining   Construction and   Exploration and    Corporate    Consolidated  
                              other services      evaluation  
                Six    Six     Six    Six         Six    Six       Six   Six      Six   Six
              months months   months months      months months   months months  months months
               2007    2006   2007    2006       2007    2006    2007    2006   2007    2006
              $'000   $'000   $'000  $'000      $'000   $'000    $'000  $'000   $'000  $'000

             ------  ------  ------  ------     ------  ------  ------  ------ ------  ------ 
Revenue
---------
Gold sales   70,366  51,478    -        -         -       -        -       -   70,366  51,478   
Silver sales    -       286    -        -         -       -        -       -       -      286  
Other external  -         -  21,440   6,407       751    853     571       -   22,762   7,260 
sales
Inter-segment   -         -   7,736   3,244     8,047  3,969   3,935    3,212  19,718   0,425    
sales                    
             ------  ------  ------  ------     ------  ------  ------  ------ ------  ------
Subtotal     70,366  51,764  29,176   9,651     8,798  4,822   4,506    3,212 112,846  69,449     
             ------  ------  ------  ------     ------  ------  ------  ------ ------  ------       
(Less:          -        -  (7,736)  (3,244)   (8,047) (3,969) 3,935)  (3,212)(19,718)(10,425)      
inter-segment   
sales)
             ------  ------  ------  ------     ------  ------  ------  ------ ------  ------

Total group  70,366  51,764  21,440   6,407       751    853    571       -    93,128  59,024   
revenue         
             ======  ======  ======  ======     ======  ====== ======   ====== ======= =======    
Expenses

Net operating 18,936 16,193  17,136   6,190      1,890  1,270  8,876    9,224  46,838  32,877       
expenses
excluding
below expenses

Inter-segment     -       -   6,001  2,784       7,748  3,810    -        -    13,749   6,594      
expenses

Royalties     4,699   3,283      -       -          -       -     -        -     4,699  3,283    
      
Depreciation  6,163   4,926     921    122         459    147   127       114    7,670  5,309    
and amortisation

Subtotal     29,798  24,402  24,058  9,096      10,097  5,227  9,003    9,340  72,956  48,063     
             ------  ------  ------  ------     ------  ------  ------  ------ ------  ------
(Less:           -       -  (6,001) (2,784)     (7,748) (3,810)    -        -  (13,749)(6,594)      
inter-segment
sales)
Total group 29,798   24,402 18,057  6,312       2,349   1,417  9,003    9,340  59,207  41,469       
expenses    
            ======  ======  ======  ======     ======  ====== ======   ====== ======= =======
Segment     40,568  27,362  3,383      95      (1,598)  (564) (8,432)  (9,340) 33,921  17,551      
result                
            ======  ======  ======  ======     ======  ====== ======   ====== ======= =======
Exchange                                                                                                                
gain                                                                            1,887   3,855
                                                                                                                    
Unallocated                                                                                                             
expenses                                                                        (473) (1,164)

Operating                                                                                                               
profit                                                                         35,335  20,242

Share of                                                                                                                
results of                                                                      (767)   (466)
joint
ventures

Operating             
profit after                                                                                                 
joint 
ventures                                                                       34,568  19,776

Financial                                                                                                               
income                                                                          3,227   4,272
                                                                                                                 
(Financial                                                                                                              
expenses)                                                                      (5,970) (5,825)
                                                                                                               
(Taxation)                                                                     (9,953) (6,544)
                                                                                        
Profit for the                                                                                                          
period                                                                         21,872  11,679

Gold revenue was solely derived from Pokrovskiy mine operations 105,872oz (six
months 2006 - 89,365oz) and two alluvial operations (Amur Dore and Koboldo)
which combined sold c.2,000oz (six months 2006 - c.500oz).


                             PETER HAMBRO MINING plc
              Condensed Consolidated Interim Financial Information
                       for the period ended 30 June 2007

                               Notes (continued)

               Gold mining   Construction and   Exploration and    Corporate    Consolidated  
                              other services      evaluation  
                30     31        30     31         30     31       30     31      30     31
               June December  June December     June December   June December   June December
               2007    2006   2007    2006       2007    2006    2007    2006   2007    2006
              $'000   $'000   $'000  $'000      $'000   $'000    $'000  $'000   $'000  $'000

             ------  ------  ------  ------     ------  ------  ------  ------ ------  ------ 
Other
information
-----------------
Segment 
assets      218,396  164,024  76,780  73,208   173,299  176,840  30,850 53,995  499,325 468,067      
  
Goodwill                                                                        16,291  13,396  
Securities held     
for trading                                                                     10,207  13,937 

Group share of                                                                                                          
net assets in                                   
joint ventures                                                                  9,659   10,534

Consolidated
total assets                                                                   535,482 505,934

Segment          
liabilities  19,816    8,056  21,601  19,782     3,103    2,073   5,310  8,512  49,830  38,423  

Borrowings                                                                     135,245 134,740

Tax liability                                                                    2,054     973
                                                                     
Deferred Income                                                                                                         
tax Liability                                                                   22,707  21,744

Consolidated                                                                                                            
total liabilities                                                              209,836 195,880
              ------  ------  ------  ------     ------  ------  ------  ------ ------  ------ 
                Gold mining   Construction and   Exploration and    Corporate    Consolidated  
                              other services      evaluation  
                Six    Six     Six    Six         Six    Six       Six   Six      Six   Six
              months months   months months      months months   months months  months months
               2007    2006   2007    2006       2007    2006    2007    2006   2007    2006
              $'000   $'000   $'000  $'000      $'000   $'000    $'000  $'000   $'000  $'000

             ======  ======  ======  ======     ======  ====== ======   ====== ======= =======                    
    
Capital      29,783  19,819  2,350    212      13,459   9,009    2,877  3,282  48,469   32,322     
expenditures   
             ======  ======  ======  ======     ======  ====== ======   ====== ======= =======

3.  Business segment information (continued)

4.  Taxation on profit on ordinary activities


                              30 June 2007    30 June 2006     31 December 2006
                              --------------  --------------  ------------------
                                     $'000           $'000               $'000
Current tax:
UK corporation tax on                  509               -                 586
profits for the year (30%)
Foreign tax (24%)                    8,480           5,283              12,518
                                   ---------       ---------         -----------
Total current tax                    8,989           5,283              13,104
                                   ---------       ---------         -----------
Deferred tax:
Origination and reversal of            964           1,261                 704
timing differences                 ---------       ---------         -----------

Total deferred tax                     964           1,261                 704
                                   ---------       ---------         -----------
Over provision in respect of             -               -              (1,066)
prior years
                                   ---------       ---------         -----------
Tax on profit on ordinary            9,953           6,544              12,742
activities                         ---------       ---------         -----------


                             PETER HAMBRO MINING plc
              Condensed Consolidated Interim Financial Informaiton
                       for the period ended 30 June 2007

Notes (continued)

5.  Other investments

                            30 June 2007    30 June 2006      31 December 2006
                             --------------  --------------  -------------------
                                    $'000           $'000                $'000

Unlisted equity                       965             764                1,022
investments                       ---------       ---------         ------------


The above investments have been recorded at cost as fair values cannot be
measured reliably.

The Group has the following material subsidiaries and other significant
investments, which were consolidated in these financial statements.


Principal         Country of     Principal    Principal       Effective
subsidiary and   incorporation   activity     country of      proportion of
joint venture                                 operation       shares held
undertakings

Held directly by the Company
                                                 
                                  Holding      United
Eponymousco      United Kingdom   Company      Kingdom           100%
Ltd
                                  Holding      United
Victoria         United Kingdom   Company      Kingdom           100%
Resources Ltd                                                  


Peter Hambro         Guernsey     Finance      United       
Mining Group                      Company      Kingdom           100%
Finance Ltd
                                                                          
                                  Holding 
Yamal Holdings          Cyprus    Company       Cyprus           100%
Ltd                                         

Peter Hambro                      Holding 
Mining (Cyprus)         Cyprus    Company       Cyprus           100%    
Ltd
                                  Holding                                   
Sicinius Ltd            Cyprus    Company       Cyprus           100%                          

ZAO Management                    Holding 
Company PHM             Russia    Company       Russia           100%
                                                                                                                     
                                    Gold
                              exploration 
                                      and
OOO Olga               Russia  production       Russia           100%
                                                               
                                    Gold
                             exploration 
OAO Pokrovskiy                       and
Rudnik                 Russia  production       Russia          98.6%

                                    Gold                      
                             exploration 
ZAO ZRK Omchak                       and
(Joint Venture)        Russia production        Russia           50%
                                             
 
                            
                             PETER HAMBRO MINING plc
              Condensed Consolidated Interim Financial Information
                        for the period ended 30 June 2007
                                        

Notes (continued)

5.  Other investments (continued)

Principal         Country of     Principal    Principal       Effective
subsidiary and   incorporation   activity     country of      proportion of
joint venture                                 operation       shares held
undertakings

Held indirectly via 100% owned subsidiaries
                                                 

                                   Gold
OOO Tokurskiy               exploration and
Rudnik            Russia       production      Russia          100%

                                   Gold
OOO GRK                    exploration and                                    
Victoria          Russia        production     Russia          100%   
                                      
                               Security            
OOO Obereg        Russia       services        Russia          100%
                                             
                                    Gold
                         exploration and
                              production

OOO Spanch       Russia                        Russia          100%
                                                 
                                    Gold
                         exploration and
                              production

OOO Osipkan      Russia                        Russia          100%
                                   Gold
                         exploration and
                              production

ZAO Amur Dore    Russia                        Russia          100%
                              Exploration
                                   work
OOO NPGF Regis   Russia                        Russia          100%
                   
                                   Gold
                        exploration and
                             production
OOO              Russia                       Russia           100%
Rudoperspektiva
                                   Gold
                        exploration and
                             production

OAO ZDP Koboldo  Russia                       Russia          95.7%
                            Project and
                            engineering
                               services
ZAO PHM          Russia                       Russia            75%
Engineering
                           Construction
                               and Gold
                        exploration and
                             production
OAO Yamalskaya
Gornaya Kompania
("YGK")          Russia                       Russia          74.87%

                                                       




                            PETER HAMBRO MINING plc
             Condensed Consolidated Interim Financial Information
                      for the period ended 30 June 2007

Notes (continued)

5.  Other investments (continued)

Principal         Country of     Principal    Principal       Effective
subsidiary and   incorporation   activity     country of      proportion of
joint venture                                 operation       shares held
undertakings

Held indirectly via Pokrovskiy Rudnik

                         
                                     Gold
                          exploration and
                               production

OAO YamalZoloto    Russia                     Russia           98.6%

OOO Kapstroi       Russia    Construction     Russia           98.6%
                        
                                     Gold
                          exploration and
                               production
ZAO Malomyrskiy
Rudnik             Russia                     Russia           98.6%
                               
                                     Gold
                          exploration and
                               production

ZAO Region         Russia                     Russia           98.6%
                                 
                                    Gold
                         exploration and
                              production
ZAO Rudnoye 
(Joint Venture)    Russia                     Russia            49%
                            

Held indirectly via YGK
                                  
                                  Chrome
                         exploration and
                              production
ZAO SeverChrome    Russia                     Russia          73.9%

Held indirectly via Sicinius

                             Researching
                                services
OAO Irgiredmet     Russia                     Russia         98.36%


In February 2007 PHM (Cyprus) Ltd acquired 100% of Rudoperspektiva for a
consideration of US$17,539.


In April 2007 Tokurskiy Rudnik acquired a further 4.05% of Koboldo for
consideration of US$13,865.


In April 2007 Sicinius Ltd acquired a further 18.36% of Irgiredmet for
consideration of US$9,176,651.



                            PETER HAMBRO MINING plc
              Condensed Consolidated Interim Financial Information
                       for the period ended 30 June 2007
                                        
                                        
Notes (continued)

6.  Monetary assets and liabilities

                              30 June 2007    30 June 2006    31 December 2006
                              --------------  -------------- ------------------
                                     $'000           $'000               $'000
                                                
Debtors - US dollar                     11           4,242                 303
Debtors - Russian rouble            51,449          32,586              42,502
Debtors - GBP                          609             285                 988
Cash - US dollar                     5,118         101,994              11,748
Cash - Russian rouble               17,156          32,728              46,684
Cash - GBP                           3,798           7,562               4,034
Loans (short term)- Russian          4,927           1,183               3,530
Rouble
Securities held for trading         
- Russian Rouble                    10,207               -              13,937
                                  ----------       ---------         -----------

                                    93,275         180,580             123,726
                                  ----------       ---------         -----------

Monetary assets - US                 5,129         106,236              12,051
dollar
Monetary assets - Russian           83,739          66,497             106,653
rouble
Monetary assets - GBP                4,407           7,847               5,022
                                  ----------       ---------         -----------

                                    93,275         180,580             123,726
                                  ----------       ---------         -----------

Creditors - US dollar                8,926             559              12,065
Creditors - Russian rouble          28,964          13,651              22,796
Creditors - GBP                      1,016             779                 968
Short - term Loans - US             11,411           4,195               3,000
dollar
Short - term Loans -                     -          12,689                   -
Rouble
Guaranteed Convertible Bonds       135,245         134,407             134,740
- US dollar                       ----------       ---------         -----------

                                   185,562         166,280             173,569
                                  ----------       ---------         -----------

Creditors (short and               155,582         139,161             149,805
long-term) - US dollar
Creditors (short and                28,964          26,340              22,796
long-term) - Russian
rouble
Creditors (short and                 1,016             779                 968
long-term) - GBP                  ----------       ---------         -----------

                                   185,562         166,280             173,569
                                  ----------       ---------         -----------


The Russian rouble strengthened against the US Dollar by 2% during the six
months of 2007 and was RuR25.82/US$ at 30 June 2007 (RuR26.33/US$ - 31/12/06).


The Russian rouble strengthened against the US Dollar by 9% during the year 2006
and was RuR26.33/US$ at 31 December 2006 (RuR28.78/US$ - 31/12/05).


Included within the Group net operating expenses are foreign currency
translation gains of US$1,887,000 (30 June 2006 - gain of US$3,855,000 and 31
December 2006 - gain of US$5,623,000).



                            PETER HAMBRO MINING plc
               Condensed Consolidated Interim Financial Information
                        for the period ended 30 June 2007
                                        
                               Notes (continued)


7.  Provisions

                              30 June 2007    30 June 2006    31 December 2006
                              --------------  --------------  ------------------
                                     $'000           $'000               $'000

Provision for restoration            1,567             554                 567
and closing costs
RBS holders                              -          15,000                   -
                                   ---------      ----------          ----------

                                     1,567          15,554                 567
                                   ---------      ----------          ----------

Provision at 1 January                 567          15,542              15,542

Additional provision                   965               -                   -
Unwinding of discount on                35              12                  25
environmental  obligation
* Settlement (RBS holders)               -               -             (15,000)
                                   ---------      ----------          ----------

Provision at period end              1,567          15,554                 567
                                   ---------      ----------          ----------





* One of the Company's subsidiaries, Pokrovskiy Rudnik, set up a Reserve Bonus
Scheme (the "Scheme") for certain senior Group executives of that company. The
scheme was never fully implemented. Under the scheme participants were to be
awarded freely transferable 'Scheme units' at the end of each year from 2002 to
2012 based on US$5 per ounce of gold added to the designated reserves for the
Scheme.


Agreement was reached with those entitled to participate in the Scheme (the
"Eligible Persons") for the Scheme not to proceed. The Independent Directors,
being Sir Rudolph Agnew, Peter Hill-Wood and Philip Leatham having taken
professional advice and consulted with the Company's nominated adviser, agreed
that the sum of US$15,000,000 in aggregate (the "Scheme Payment") was fair
compensation to the Eligible Persons for the Scheme not proceeding. The Eligible
Persons excluded Directors. The Independent Directors also considered that this
payment was less than the cost to the Group (as determined by reference to the
estimated net present value of the ongoing payment obligations for the Company
under the Scheme) if the scheme were to proceed. The sum of US$15,000,000 was
subsequently paid in August 2006.


                            PETER HAMBRO MINING plc
              Condensed Consolidated Interim Financial Information
                        for the period ended 30 June 2007
                                        
                               Notes (continued)

8.  Share Capital

Ordinary                                     Company
shares
                      30 June 2007         30 June 2006       31 December 2006
                           $'000                $'000                   $'000
                       --------  ---        --------  ---             -------
Allotted,
called up and
fully paid:

At the                     1,311                1,273                    1,273
beginning of
the period

Shares issued                  
in relation to
acquisition of
Peter Hambro
Mining (Cyprus)
Ltd                            -                    -                       13


Other new
issues                         -                   25                       25
                         ---------            ---------              -----------

                         ---------            ---------              -----------
At the end of
the period                  1,311                1,298                    1,311
                         ---------            ---------              -----------

                         ---------            ---------              -----------

Number of
shares (par
value £0.01)

Authorised               120,000              100,000                  120,000
                         ---------            ---------              -----------

Issued at the             81,156               78,957                   78,957
beginning of
the period

Shares issued                  -                    -                      750
in relation to
acquisition of
Peter Hambro
Mining (Cyprus)
Ltd

Other new
issues                         -                1,449                    1,449
                         ---------            ---------              -----------
At the end of
the period                 81,156               80,406                   81,156
                         ---------            ---------              -----------




On 18 April 2006 the Company issued 1,448,545 ordinary shares at a price of
£6.875 per share pursuant to a Share Option Agreement with the International
Finance Corporation (the IFC). As a result of this transaction a share premium
of US$17.8m was created.


                            PETER HAMBRO MINING plc
              Condensed Consolidated Interim Financial Information
                       for the period ended 30 June 2007


Notes (continued)

9.  Net Cash Inflow from Operating Activities


                                30 June 2007    30 June 2006   31 December  2006
                              --------------  --------------  ------------------
                                     $'000           $'000               $'000
Cash received from                  89,435          61,214             162,130
customers
Cash paid to suppliers and         (57,137)        (38,215)            (84,352)
employees
Other proceeds                       1,665             409               1,296
Other expenses                     (14,031)        (13,317)            (31,467)
                                   ---------      ----------        ------------
Net cash inflow from                19,932          10,091              47,607
operating activities               ---------      ----------        ------------



10.  Analysis of Net Debt

               At 1 Jan. 07   Cash Flow   Other non-cash   Exchange    At 30 
                                              changes      movement    June 07
                    $'000      $'000          $'000         $'000       $'000
                 --------      -------        -------      --------    ---------

Cash in hand
and at the
bank               62,466     (37,028)            -          634        26,072

Debt due
within one
year              (3,000)     (8,506)             -           95       (11,411)

Debt due
after
one year          (140,000)       -               -            -      (140,000)

Less equity
component          1,583          -               -            -         1,583

Bonds issue
cost
capitalised         3,677         -             (505)          -         3,172
                  --------     -------        -------       --------   ---------
Finance
leases /
sales & lease
back               (316)          56              -            -         (260)
                  --------     -------        -------       --------   ---------
                  --------     -------        -------       --------   ---------
Net Cash inc.
leasing           (75,590)     (45,478)          (505)        729       120,844)
                  --------     -------        -------       --------   ---------


                            PETER HAMBRO MINING plc
              Condensed Consolidated Interim Financial Information
                       for the period ended 30 June 2007

                               Notes (continued)

11.  Earnings per ordinary share


                                   Six months to    Six months to      Year to
                                    30 June 2007     30 June 2006  31 December
                                                                          2006
                                           $'000            $'000        $'000
Profit for the period US$'000             21,872           11,679       32,373
Weighted average number of            81,155,052       79,543,972   80,302,732
ordinary shares
                                                                    
Earnings per ordinary share                0.265            0.146        0.398
                                        ----------        ---------  -----------
Weighted average number of            81,155,052       79,543,972    80,302,732
ordinary shares
                                        ----------        ---------  -----------

Contingent shares                              -          750,000          -
                                        ----------        ---------  -----------
Weighted average number of            81,155,052       80,293,972    80,302,732
diluted shares
                                        ----------        ---------  -----------
Diluted earnings per share              US$0.265         US$0.144     US$0.398
                                        ----------        ---------  -----------


                            PETER HAMBRO MINING plc
              Condensed Consolidated Interim Financial Information
                       for the period ended 30 June 2007

Notes (continued)

12. Related Parties


The Group had the following related party transactions during the year, (VAT is
included where applicable):

Related party    Description    Movement     Amount due     Movement for     Amount due 
                               for the six   from/(due to  the year ended   from/(due to)
                                 months       30 June)      31 December      31 December
                                  2007         2007             2006             2006  
                                 $'000         '000            $'000            $'000                     
 

Aricom Plc and
subsidiaries     Geological       127         173              2,062             329                           
 
                 work
Aricom Plc and   Project and
subsidiaries     engineering
                 services         403        (1,066)           2,398             522

Aricom Plc and   Management       571         571                -                -                          
subsidiaries      services
                 
                 
Aricom Plc and
subsidiaries   Construction     10,340      (3,248)           15,307          (3,591)
                 services    
Total Aricom                    11,441      (3,570)           19,767          (2,740)
Plc      

Expobank and     Current          3,380      3,980                -              600
subsidiaries     account
                                 
Expobank and     Deposit        (25,675)      765                 -           26,440
subsidiaries     account
                 
Expobank and    Promissory       (2,517)    6,375               8,892          8,892
subsidiaries      Notes

Expobank and     Sales of gold
                 and silver       43,488       -               74,425           -
subsidiaries
                 
Expobank and     Sales of gold
subsidiaries     through
                 metallic
                 account          31,495       -                3,007           -

Expobank and     Purchase of
subsidiaries     gold to sale
                 through
                 metallic
                 account         (31,134)      -              (3,028)           -
Expobank and                      (3,798)      -
subsidiaries   Purchases/                                                                                             
                 sales of          3,798       -                3,798          3,798 
                  bonds       

Total                              15,239   11,120             87,094         39,730
Expobank                 



                            PETER HAMBRO MINING plc
              Condensed Consolidated Interim Financial Information
                       for the period ended 30 June 2007

Notes (continued)

13. Acquisition of subsidiary undertakings

(a) Rudoperspektiva

In February 2007 PHM (Cyprus) Ltd acquired 100% of OOO Rudoperspektiva for
consideration of US$17,539.

This company is a gold alluvial mining enterprise.


The fair values of the assets and liabilities on the date of acquisition were:

                                       Rudoperspektiva    Fair Value
                                                        adjustment
                                          Book value                     Total
                                               $'000         $'000       $'000

Intangible assets                                757            48         805
Cash and cash equivalents                         52             -          52
Trade and other payables                        (839)            -        (839)
                                         -------------     ---------  ----------

Fair value of net assets acquired                (30)           48          18
                                         -------------     ---------  ----------

                                                                            18
                                         -------------     ---------  ----------
Consideration
Cash                                                                        18
                                         -------------     ---------  ----------

                                                                            18
                                         -------------     ---------  ----------



(b) Irgiredmet


In April 2007 Sicinius Ltd acquired a further 18.36% Irgiredmet for consideration 
of US$9,176,651.



14. Capital commitments


Capital commitments include property, plant and equipment purchases for the
Pioneer deposit development. Amounts contracted for but not provided for in the
financial statements amounted to US$15,714,000 (31 December 2006 -
US$13,320,000) for the Group.












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