Annual Financial Report

Arakan Resources Limited 

                        Audited Financial Results 2013.

PR Newswire
London, June 25

Arakan Resources Limited (ARK) released audited financial results for
financial year 2013.

Arakan Resources Limited (ARK) released today its audited financial
report for the 2013 financial year ending December 31.

The report includes consolidated financial statements of Arakan Resources
Limited, which are comprised of the consolidated statement of financial
position as at December 31, 2013 and the related consolidated statements of
profit or loss and other comprehensive income, changes in shareholders'
equity, and cash flows statement.

The complete audited financial report was posted on the GXG site for further
review.

The audited financial report presents the following results



    CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME    
                                                                               
                                                            July 18, 2013 (date
                                                              of incorporation)
                                                           through December 31,
                                                                           2013
                                                                               
Revenue                                                                       -
                                                                               
Costs and expenses                                                             
                                                                               
Finance costs                                                                91
                                                                               
Consultancy fee                                                          64,997
                                                                               
Subscription fee                                                          9,858
                                                                               
Incorporation fee                                                         2,755
                                                                               
Share register maintenance costs                                          5,828
                                                                               
Impairment loss on goodwill                                             247,824
                                                                               
Foreign exchange loss                                                     2,782
                                                                               
Other operating expenses                                                 29,904
                                                                               
                                                                      (364,039)
                                                                               
Loss before taxation                                                  (364,039)
                                                                               
Taxation                                                                      -
                                                                               
Net loss for the period and total comprehensive loss for              (364,039)
the period                                                                     
                                                                               
Attributable to:                                                               
                                                                               
Owners of the parents                                                 (364,038)
                                                                               
Non-controlling interest                                                    (1)
                                                                               
                                                                      (364,039)
                                                                               
Total comprehensive loss attributable to:-                                     
                                                                               
Owners of the parents                                                 (364,038)
                                                                               
Non-controlling interest                                                    (1)
                                                                               
                                                                      (364,039)
                                                                               



                 CONSOLIDATED STATEMENT OF FINANCIAL POSITION                  
                                                                               
                                                              December 31, 2013
                                                                               
ASSETS                                                                         
                                                                               
Non-current asset                                                              
                                                                               
Investment in subsidiaries                                                    -
                                                                               
Goodwill                                                                      -
                                                                               
Total non-current asset                                                       -
                                                                               
Current assets                                                                 
                                                                               
Deposits                                                                  5,237
                                                                               
Prepayment                                                                5,419
                                                                               
Amount due from a shareholder                                                 2
                                                                               
Cash and cash equivalents                                                27,906
                                                                               
Total current assets                                                     38,564
                                                                               
Total assets                                                             38,564
                                                                               
EQUITY AND LIABILITIES                                                         
                                                                               
Equity attributable owners                                                     
                                                                               
Share capital                                                             1,500
                                                                               
Accumulated losses                                                    (361,038)
                                                                               
Non-controlling interest                                                      1
                                                                               
Total equity                                                          (362,537)
                                                                               
Current liabilities                                                            
                                                                               
Bank overdraft                                                               10
                                                                               
Accruals                                                                 12,702
                                                                               
Other payables                                                          224,264
                                                                               
Amount due to a related party                                            13,383
                                                                               
Amount due to directors                                                 150,742
                                                                               
Total liabilities                                                       401,101
                                                                               
Total equity and liabilities                                             38,564



                  CONSOLIDATED STATEMENT OF CHANGES IN EQUITY                  
                                                                               
                                    Share   Accumulated  Interest      Total   
                                   Capital    Losses                           
                                                                                
                                     US$        US$         US$         US$          
                                                                               
Balance as at 18.07.2013              2          -           -           2     
(date of incorporation)                                                        
                                                                               
Issuance of shares                  1,498        -           -         1,498   
                                                                               
Contribution by non-controlling       -          -           2           2     
interest                                                                       
                                                                               
Total comprehensive loss for the      -      (364,038)      (1)      (364,039) 
period                                                                         
                                                                               
Balance as at 31.12.2013            1,500    (364,038)       1       (362,537) 



                     CONSOLIDATED STATEMENT OF CASH FLOWS                      
                                                                               
                                                            July 18, 2013 (date
                                                              of incorporation)
                                                           through December 31,
                                                                           2013
                                                                               
Cash flows from operating activities                                           
                                                                               
Loss before taxation                                                  (364,039)
                                                                               
Adjustment for:-                                                        247,824
                                                                               
Impairment loss on goodwill                                                    
                                                                               
Changes in working capital:-                                                   
                                                                               
Decrease in deposits and prepayment                                       6,005
                                                                               
Increase in other payables and accruals                                  76,048
                                                                               
Net cash used in operating activities                                  (34,162)
                                                                               
Cash flows from investing activities                                           
                                                                               
Net cash inflow on acquisition of subsidiaries                           24,999
                                                                               
Net cash generated from investing activities                             24,999
                                                                               
Cash flows from financing activities                                           
                                                                               
Advance from directors                                                   35,559
                                                                               
Issuance of shares                                                        1,500
                                                                               
Net cash generated from financing activities                             37,059
                                                                               
Net increase in cash and cash equivalents                                27,896
                                                                               
Cash and cash equivalents at beginning of period                              -
                                                                               
Cash and cash equivalents at end of period                               27,896

As at December 31, 2013, the Company had net capital deficit and net current
liabilities of $362,537. The financial statements have been prepared on a going
concern basis as two of the shareholders and a third party have agreed to
provide financial support to the company to enable the company to pay its debt
as and when they fall due and not to recall the amount advance to the company
until all other payables have been met.

The Directors take responsibility for this announcement.

For further information:

Arakan Resources Limited
Christian West, Director
Tel: [phone]