Interims; Resource update

Hambledon Mining PLC
27 September 2006



                                             
                              HAMBLEDON MINING PLC

                  Interim results and resource estimate update

(All references to '£' are to the British pound and 'ounces' are to troy ounces)

Hambledon Mining plc ('Hambledon' or the 'Group' or the 'Company'), the
AIM-listed mining and exploration company developing precious metal deposits in
Kazakhstan, announces its interim results for the six months ended 30 June 2006.

Highlights

   •£10.4 million raised in March.

   •42 per cent expansion in planned process plant capacity to 850,000 tonnes
    per year.

   •General Resource Estimate approved by Kazakh authorities in April.

   •Mining operations commenced in June with own mining fleet.

   •JORC resource estimate increased to 2.6 million ounces (88 per cent
    higher than the beginning of the period).

   •Mine plan now shows an initial mining reserve estimate of 226,700 ounces
    of mainly open pittable ore.

   •Work on the underground mine plan is continuing and significant reserve
    increases are expected as detailed design progresses.

   •162 staff now employed.

   •Construction of process plant underway.


Nicholas Bridgen, Chief Executive of Hambledon Mining plc, commented:


'In reviewing the half year, we are very pleased with what has been achieved,
with good progress on all fronts. The JORC resource has almost doubled and as a
result we are building a bigger process plant and have decided that it is more
cost effective to operate our own mining fleet. The approval of the General
Resource Estimate, which is the essential precursor of all other detailed
approvals, was obtained and we are well on the way to recruiting our full
complement of staff'

'Since the end of the half year, we have completed the open pit mine plan and a
plan for the development of the westerly Orebody 11 from underground and can now
announce initial mining reserves of 226,700 ounces.'



Note to editors

Hambledon Mining plc is an AIM-listed mining and exploration company which is
mining an open pit and stockpiling ore in readiness for completion of an 850,000
tonnes per year treatment plant at its Sekisovskoye gold deposit in East
Kazakhstan. After the start of processing, the Company will start to develop the
much larger underground resources.

Production from the open pit will average over 40,000 ounces per annum for five
years, but total annual output will rise to around 100,000 ounces as the higher
grade underground ore is added to the feed. The Group also holds the rights to
and is exploring the adjacent Tserkovka licence territory which includes several
areas of interest including the Tserkovka deposit itself. The Company has also
been notified that it is to be awarded the nearby Glinka and Krugliachka areas.
Any ore from these additional areas will be treated in an expanded plant at
Sekisovskoye.


Enquiries


Hambledon Mining plc                    Telephone + 7 701 733 8915

Nicholas Bridgen, Chief Executive                  [phone]


Bankside Consultants

Michael Spriggs / Michael Padley        Telephone [phone]




Chairman's Statement


I am pleased to announce our financial results for the six months to 30 June
2006.

Consistent progress has been achieved throughout the period. The increased size
of the resource indicated that the pit would have a much longer life and that
accordingly a much larger design capacity would be beneficial. To this end, the
Group raised £10m (after expenses) in March 2006 to fund the construction of an
850,000 tonnes per year plant, 42 per cent larger than previously planned, and
the purchase of our own mining fleet, which is now operating.

In March 2006, the Group concluded a 4,000 metre drilling programme from the
existing 440 level adit. The purpose of the programme was to drill into the open
pit area to define further the geological model and resolve previous
uncertainty. Significant new mineralisation was intercepted and additional data
on existing ore zones was obtained. These have enabled us to produce a much more
robust model. Comparison of the new data with old Soviet data has enabled us to
statistically demonstrate that Soviet data consistently underestimated grade by
around 19 per cent. Despite this, the current resource estimate has not been
adjusted and, to the extent that it is based on Soviet data, a significant
uplift in actual mined grades is likely in practice. Furthermore, approximately
15 per cent (over 6 per cent within the planned open pit) of the drilled gold
intercepts have not been incorporated into the new model due to our limited
understanding of the geological structure in those areas. This can be expected
to produce more ore when actual mining commences, with a commensurate drop in
the stripping ratio.

In general, the new data indicated higher grades, but the effect was compensated
by a more tightly defined modelling style that has resulted in lower overall
tonnages. The overall gold content is therefore little changed in the indicated
category, and the inferred category has been slightly reduced. Nevertheless, the
Directors are pleased with the result, which means that a similar number of
ounces can be produced by processing fewer tonnes. There is also a reasonable
expectation that the results of actual mining will be significantly better than
those predicted by the model.

In April 2006, the Kazakhstan authorities approved our General Resource
Estimate, a fundamental step in the approval process, which has enabled us to
begin mining, acquire the necessary land use rights and seek the other detailed
approvals required to put the mine and process plant into operation.

In June 2006, we announced that a further consequence of the winter underground
drilling programme had been increased confidence in the previously quoted Soviet
prognosticated category of resource at Sekisovskoye, to the extent that our
independent geologist had been able to reclassify it as JORC compliant inferred
resource. This resulted in an increase of our JORC resource to 2.6 million
ounces. A further 740,000 ounces of Soviet category resource remains outside the
JORC basis, pending the receipt of sufficient further information to enable an
updated analysis to be carried out.

In June 2006, mining operations began; a significant milestone in our
development. Initially, the mine fleet was being used for site preparation for
the process plant, ore dumps and tailings facilities. Mining is now concentrated
on pre-stripping waste from the open pit so that it can be used for construction
of roads, the tailings dam walls and developing access to the main orebodies. A
night shift has recently commenced work in order to stockpile ore in readiness
for the start of the process facilities.

We are pleased to announce a mining reserve based on mine plans for both open
pit and underground. The planned open pit contains 4.2 million tonnes of ore at
an average grade of 1.6 grams per tonne. The stripping ratio will be 4.7:1. As
said above, the out-turn is expected to improve significantly in practice as a
result of the underestimation of grade by Soviet drilling and the large quantity
of drill intercepts that have not been included in the model.

The scale of the open pit has been reduced because of the relative benefits of
mining some of the near-surface ore from underground. In particular, we have
decided that a major ore body lying to the west of the main deposit is better
mined from underground, and that it is better to restrain open pit mining to the
340 level (approximately 100 metres depth) so that access to the existing
underground development and shaft can be maintained. In the absence of such
considerations, computerised open pit optimisation studies have shown that a
much larger open pit would have been economically minable.

As a part of the process of applying for approval of the General Resource
Estimate by the Kazakh authorities, work was carried out on the development of
an underground mine plan. This work concentrated on access development
strategies and general infrastructure development. A high level of design detail
was carried out on Orebody 11 that would otherwise have been mined in a separate
open pit to the west of the main pit. This area was chosen for detailed design
as it can be accessed during the life of the open pit. This design work has
allowed the indicated resource in this area to be classified as a probable
reserve. While the level of design in other areas is not yet sufficient to
classify the resources as reserves it is anticipated that this will be achieved
as further detailed work is carried out. The initial underground mining reserve
in Orebody 11 is 82,000 tonnes, at a grade of 5.1 grams per tonne, containing
about 13,400 ounces of gold.

Progress on the construction of the process plant has continued apace. The
crushing plant has been delivered and is now expected to be in operation around
November 2006. Site preparation and the foundations for the process equipment
are now largely complete. The latest estimate of the completion date of the
process plant is within the first half of 2007.


George Eccles
27 September 2006



Resource and reserve estimates

Resource estimate

This mineral resource estimate of the 100% owned Sekisovskoye deposit has been
prepared under the JORC Code and is an update to the resource as reported in
June 2006. Resources include reserves.

+------------+----------+----------+-------+---------+------+---------+-------+
|  Location  | Resource |  Tonnes  |Au g/t |Contained|Ag g/t|Contained|Au g/t |
|            |          |          |       |         |      |         |Cut-off|
|            | Category |(millions)|       |  Metal  |      |  Metal  |       |
|            |          |          |       |         |      |         |       |
|            |          |          |       | Au oz * |      | Ag oz * |       |
+------------+----------+----------+-------+---------+------+---------+-------+
|  Open pit  |Indicated |      9.55|    1.8|  552,671|   3.0|  921,119|  0.5  |
|    area    +----------+----------+-------+---------+------+---------+       |
|            |Inferred  |      6.06|    1.8|  350,700|   2.0|  389,667|       |
|            |(b)       |          |       |         |      |         |       |
+------------+----------+----------+-------+---------+------+---------+-------+
|Underground |Indicated |      2.21|    5.1|  362,371|   6.2|  440,529|  2.0  |
|            +----------+----------+-------+---------+------+---------+       |
|            |Inferred  |      7.16|    5.2|1,197,036|   7.1|1,634,415|       |
|            |(b)       |          |       |         |      |         |       |
+------------+----------+----------+-------+---------+------+---------+-------+
|  Marginal  |Indicated |      3.40|    0.7|   76,519|   1.4|  153,037|  0.5  |
|            |          |          |       |         |      |         |       |
|underground +----------+----------+-------+---------+------+---------+       |
|    (a)     |Inferred  |      0.96|    0.6|   18,519|   1.2|   37,038|       |
|            |          |          |       |         |      |         |       |
+------------+----------+----------+-------+---------+------+---------+-------+
|   Totals   |Indicated |     15.16|    2.0|  991,561|   3.1|1,514,685|       |
|            +----------+----------+-------+---------+------+---------+-------+
|            |Inferred  |     14.18|    3.4|1,566,255|   4.5|2,061,120|       |
+------------+----------+----------+-------+---------+------+---------+-------+
|            |Indicated |          |       |         |      |         |       |
|            |& Inferred|          |       |         |      |         |       |
|   Total    |          |  29.34   |    2.7|2,557,816|   3.8|3,575,805|       |
+------------+----------+----------+-------+---------+------+---------+-------+


*Troy oz = 31.10348 grams

(a) underground low grade material associated with high grade gold zones.

(b) includes resources that have been defined beyond the current limits of the
grade model. Note: 'Inferred' resources cannot be used for ore reserves until
they have been upgraded.

The re-modeling of the open pit area, above the 250m level, has resulted in a
slight increase in contained gold for the higher 'indicated' category, but the
lower 'inferred' resource shows an 11 per cent drop in contained gold for the
Sekisovskoye deposit as a whole, with higher grades but lower tonnage. The total
net reduction in estimated contained gold is 6.7 per cent. Results from the
recently completed underground drilling programme have provided a better
understanding of the gold distribution, and this has resulted in a resource
model that we believe will better reflect the actual geometry and continuity of
mineralisation.

The previous model was based upon a more 'open' delineation of the
mineralisation, whereby larger tonnages and lower grade material were modeled,
resulting in higher tonnages of 'inferred' resource. This new model is much
tighter with less low grade mineralisation, resulting in lower tonnages but
higher grades. A total of 244 separate gold zones were delineated, indicating
the complexity of this deposit. In practice, open pit mining is likely to
encounter additional sources of gold. Drill-hole samples above the 0.5 grams per
tonne cut-off level, but not in the model, imply that over 6 per cent of
additional contained gold should be found within the planned pit.

In addition, resources in our new licence areas of Tserkovka, Feodulikha and
Areas 4 & 5 contain former Soviet-based resources categorized as C2 and P1 which
are estimated to contain 740,000 ounces of gold. It is expected that some of
these resources can be re-classified under the JORC Code after assessment of
exploration drilling results.

Reserve estimate

This ore reserve estimate of the Sekisovskoye deposit has been prepared under
the JORC Code.

    Location       Reserve   Tonnes   Au g/t  Contained Ag g/t Contained Au g/t
                  Category  (million)           Metal            Metal   Cut-off
                                                Au oz            Ag oz
  Open pit area   Probable     4.19     1.6   213,352     2.6   346,665   0.5
   Underground    Probable     0.83     5.1    13,384     7.4    19,615   2.0
      Total                                   226,736           366,280


*Troy oz = 31.10348 grams

The Sekisovskoye open pit ore reserve model is based on the ordinary kriging of
the mineral resource model using a 0.5 grams per tonne cut-off, taking into
consideration the expected dilution and losses. Whittle optimisations resulted
in a pit shell containing 7.25 million tonnes of ore representing a conversion
of 76 per cent of the indicated resource to probable reserve in this area.
However, development of this pit shell would have resulted in the loss of the
existing underground infrastructure and made the process of bringing the
underground operation into production much more difficult and on a much longer
timeframe. It has therefore been decided to leave the existing 320 level intact
and access this level from a decline developed from outside the pit limit. This
will allow the western ore bodies to be mined from underground concurrently with
the open pit and other ore zones below the pit bottom at the 340 level, which
might otherwise have been included in the open pit mine plan, to be mined from
underground.

The resultant reserve estimate is calculated by applying mining costs, mining
dilution (4 per cent) and recoveries (97.5 per cent) to that portion of the
Indicated Resource falling entirely within the optimised open pit design. The
area of this open pit reserve is contained within the mineral resource as
reported above.

The Sekisovskoye underground ore reserve has been determined from the mine
design work carried out as a part of the approval of the General Resource
Estimate by the Kazakh authorities using a 2.0 gram per tonne cut-off. The
General Resource Estimate covered both the open pit resource and underground
resource. Mine designs were therefore required for both the open pit and the
underground areas. The underground design was carried out in detail on the
resources from Elevation 340 up and in less detail in the lower areas. The
design on some of the orebodies, notably Orebody 11, included stope design down
to detailed stope blast ring design. This level of design and financial analysis
has allowed for the ore tonnages in these orebodies to be classified as a
probable reserve. It is anticipated that as further detailed design and
financial evaluation is carried out on the indicated resources in these areas
then these too will be convertible to reserves.

The underground reserve estimate is calculated by applying mining costs, mining
dilution (8 per cent) and recoveries (96 per cent) to that portion of the
Indicated Resource falling entirely within the stope design. The area of this
underground reserve is contained within the underground mineral resource as
reported above.


Glossary of technical terms used

+---------------+--------------------------------------------------------+
|Grade          |The tenor or concentration by weight of a metal in a    |
|               |mineral deposit or ore                                  |
+---------------+--------------------------------------------------------+
|Indicated      |A category of Mineral Resource of higher confidence than|
|Resource       |an Inferred Resource, the estimation of which is        |
|               |prescribed by the JORC Code. This is the minimum level  |
|               |of resource classification required for Ore Reserve     |
|               |estimation under the JORC Code.                         |
+---------------+--------------------------------------------------------+
|Inferred       |A category of Mineral Resource the estimation of which  |
|Resource       |is prescribed by the JORC Code. Inferred Resources      |
|               |cannot be used as a basis for Ore Reserve estimation.   |
+---------------+--------------------------------------------------------+
|JORC Code      |Australasian Code for the Reporting of Exploration      |
|               |Results, Mineral Resources and Ore Reserves (Joint Ore  |
|               |Reserves Committee). See www.jorc.org/main.php          |
+---------------+--------------------------------------------------------+
|Kriging        |A class of methods of estimating mathematically the     |
|               |distribution of a metal in three dimensions within the  |
|               |earth, together with the confidence of the estimate     |
+---------------+--------------------------------------------------------+
|Mineral        |An estimated tonnage and grade of mineralisation in the |
|Resource       |ground determined as prescribed by the JORC Code        |
+---------------+--------------------------------------------------------+
|Ore Reserve    |That part of a Mineral Resource which can be            |
|               |demonstrated to be worked profitably when all modifying |
|               |factors are taken into account.                         |
+---------------+--------------------------------------------------------+
|Tonne          |A metric tonne of 1000 kilograms                        |
+---------------+--------------------------------------------------------+

Qualified Person

These resource and reserve estimates have been prepared by Roger Rhodes BSc,
MSc, MIMMM, independent geological consultant with Computer Resource Services.
He has over 35 years of relevant experience and is a qualified person for the
purpose of reporting resources under the JORC Code and the AIM rules.

Consolidated profit and loss account
For the six months ended 30 June 2006

                                  Six months to  Six months to       Year ended
                                   30 June 2006   30 June 2005  31 December 2005
                                    (unaudited)    (unaudited)         (audited)
                                                      restated         restated
                            Note          £000s          £000s            £000s

Administrative expenses        2          (395)          (358)            (846)
Operating loss                            (395)          (358)            (846)
Net interest and
similar items
                               3            354             55             249
Loss on ordinary               6           (41)          (303)            (597)
activities before and
after taxation retained
for the financial
period
Loss per ordinary
share:
- Basic                        5        (0.01)p        (0.13)p           (0.24)p
- Diluted                      5        (0.01)p        (0.13)p           (0.24)p


Consolidated balance sheet
As at 30 June 2006

 
                                             30 June 2006   30 June 2005   31 December 2005
                                              (unaudited)    (unaudited)          (audited)
                                                                restated           restated
                                      Note          £000s          £000s              £000s
Fixed assets
Intangible assets                                      61              -                 52
Tangible assets                                     5,571            988              3,060
                                                    5,632            988              3,112
Current assets
Stock                                                  30              -                  -
Debtors                                             2,059            107                213
Cash at bank and in hand                            9,753          5,418              4,021
                                                   11,842          5,525              4,234
Creditors:
Amounts falling due within one
year                                                (643)          (450)              (444)

                                                   11,199          5,075              3,790

Provisions for liabilities and
charges                                           (1,118)              -            (1,127)
                                                  

Net assets                                         15,713          6,063              5,775

Capital and reserves
Called up equity share capital                        366            262                262
Share premium account                              16,690          6,813              6,820
Merger reserve                                      (148)          (148)              (148)
Other reserves                           6        (1,195)          (864)            (1,159)
Equity shareholders' funds                         15,713          6,063              5,775



Consolidated cash flow statement
For the six months ended 30 June 2006


                                     Six months to    Six months to         Year ended
                                      30 June 2006   30 June 2005          31 Dec 2005
                                       (unaudited)      (unaudited)          (audited)
                                                           restated           restated
                                             £000s            £000s              £000s
Net cash outflow from continuing           (2,038)            (400)              (889)
operating activities
Returns on investments and
servicing of finance
Interest received                              153               61                150
Interest paid                                 (12)             (12)               (21)
Miscellaneous non-operating                     
income                                           -                -                 17
                                               141               49                146

Capital expenditure and financial
investment
Payments to acquire intangible
fixed assets                                   (5)                -              (988)
Payments to acquire tangible
fixed assets                               (2,340)            (300)              (277)

                                           (2,345)            (300)            (1,265)

Net cash outflow before financing          (4,242)            (651)            (2,008)


Financing
Issue of ordinary share capital              
(net of share issue expenses)                9,974            4,806              4,813
Share issue expenses relating to                 
previous period                                  -                -               (47)
                                             9,974            4,806              4,766
Increase in net cash in the                  
period                                       5,732            4,155              2,758



Consolidated statement of total recognised gains and losses
For the six months ended 30 June 2006


+--------------------------------+-----------------+-----------------+-----------------+
|                                |    Six months to|    Six months to|       Year ended|
|                                |                 |                 |                 |
|                                |     30 June 2006|     30 June 2005|      31 Dec 2005|
|                                |                 |                 |                 |
|                                |      (unaudited)|      (unaudited)|        (audited)|
|                                |                 |                 |                 |
|                                |                 |         restated|         restated|
+--------------------------------+-----------------+-----------------+-----------------+
|                                |            £000s|            £000s|            £000s|
+--------------------------------+-----------------+-----------------+-----------------+
|Loss for the financial period   |             (41)|            (303)|            (597)|
+--------------------------------+-----------------+-----------------+-----------------+
|Share based payment             |               13|                -|               10|
+--------------------------------+-----------------+-----------------+-----------------+
|Currency translation differences|              (8)|               11|                -|
|on foreign currency net         |                 |                 |                 |
|investments                     |                 |                 |                 |
+--------------------------------+-----------------+-----------------+-----------------+
|Total recognised losses relating|             (36)|            (292)|            (587)|
|to the financial period         |                 |                 |                 |
+--------------------------------+-----------------+-----------------+-----------------+


Reconciliation of movements in equity shareholders' funds
For the six months ended 30 June 2006


+--------------------------------+-----------------+-----------------+-----------------+
|                                |    Six months to|    Six months to|       Year ended|
|                                |                 |                 |                 |
|                                |     30 June 2006|     30 June 2005|      31 Dec 2005|
|                                |                 |                 |                 |
|                                |      (unaudited)|      (unaudited)|        (audited)|
|                                |                 |                 |                 |
|                                |                 |         restated|         restated|
+--------------------------------+-----------------+-----------------+-----------------+
|                                |            £000s|            £000s|            £000s|
+--------------------------------+-----------------+-----------------+-----------------+
|Total recognised losses         |             (36)|            (292)|            (587)|
+--------------------------------+-----------------+-----------------+-----------------+
|New capital subscribed (net of  |            9,974|            4,806|            4,813|
|costs)                          |                 |                 |                 |
+--------------------------------+-----------------+-----------------+-----------------+
|Net increase in equity          |            9,938|            4,514|            4,226|
|shareholders' funds             |                 |                 |                 |
+--------------------------------+-----------------+-----------------+-----------------+
|Equity shareholders' funds -    |            5,775|            1,549|            1,549|
|opening balance                 |                 |                 |                 |
+--------------------------------+-----------------+-----------------+-----------------+
|Equity shareholders' funds -    |           15,713|            6,063|            5,775|
|closing balance                 |                 |                 |                 |
+--------------------------------+-----------------+-----------------+-----------------+



Notes to the interim consolidated financial statements

1  Presentation of financial information and accounting policies

These interim consolidated financial statements are for the six months ended 30
June 2006 and are unaudited. The information for the year ended 31 December 2005
does not constitute statutory accounts as defined in Section 240 of the
Companies Act 1985.

The financial information for the year ended 31 December 2005 has been extracted
from the statutory accounts of Hambledon Mining plc ('the Group') 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 statement under Section 237 of the Companies Act 1985.

The interim financial information has been prepared in accordance with all
relevant financial reporting standards. The accounting bases and policies are
applied on a basis consistent with those set out in notes 1 and 2 in the Annual
Report and Accounts for the Group for the year ended 31 December 2005. From 1
January 2006 the Group has adopted Financial Reporting Standard 20, 'Share-based
Payment' as set out in note 2.

2  Change in accounting policy and comparatives for share based payment.

The Group has adopted Financial Reporting Standard 20 ('FRS 20'), 'Share-based
Payment' which is effective for accounting periods commencing on or after 1
January 2006. Prior to the adoption of FRS 20, the Group did not recognise any
charge or credit in its profit and loss account in respect of any grant of
equity instrument. The Group had not granted any equity instruments prior to 7
November 2002, and therefore FRS 20 has been applied to all grants of equity
instruments that had not vested as of 1 January 2006.

The Group issues equity-settled share based payments in the form of share
options to certain employees. Equity-settled share-based payments are measured
at fair value at the date of grant. The fair value determined at the grant date
of the equity-settled share-based payments is expensed on a straight line basis
over the vesting period, based on the Group's estimate of shares that will
eventually vest.

Fair value is estimated by an independent third party using a proprietary
binomial probability valuation model. The expected life used in the model has
been adjusted, on the basis of management's best estimate for the effects of
non-transferability, exercise restrictions and behavioral considerations.

The new accounting policy for share based payment has been adopted
retrospectively and the comparative profit and loss accounts for the six months
ended 30 June 2005 and year ended 31 December 2005 have been restated. This
change in accounting policy has resulted in an increase in administrative
expenses and accordingly the loss on ordinary activities for the six months
ended 30 June, 2005 and 2006 of £nil and £13,000 respectively and for the year
ended 31 December 2005 of £10,000

Any profit and loss charge in a period in respect of share-based payments is
credited to the Group's other reserves. The change in accounting policy has
therefore had no effect on the consolidated balance sheets of the Group at 30
June, and 31 December, 2005. A revised statement of the movements in other
reserves is shown in note 6

3                Net interest and similar items

+---------------------------+------------+----------------+---------------+
|                           |  Six months|   Six months to|     Year ended|
|                           |          to|                |               |
+---------------------------+------------+----------------+---------------+
|                           |30 June 2006|    30 June 2005|    31 December|
|                           |            |                |           2005|
+---------------------------+------------+----------------+---------------+
|                           | (unaudited)|     (unaudited)|      (audited)|
|                           |            |        restated|       restated|
+---------------------------+------------+----------------+---------------+
|                           |       £000s|           £000s|          £000s|
+---------------------------+------------+----------------+---------------+
|                           |            |                |               |
+---------------------------+------------+----------------+---------------+
|Interest payable to related|        (12)|            (12)|           (25)|
|party                      |            |                |               |
+---------------------------+------------+----------------+---------------+
|Foreign exchange gain      |         213|               6|            107|
+---------------------------+------------+----------------+---------------+
|Miscellaneous income:      |           -|               -|             17|
|non-operating              |            |                |               |
+---------------------------+------------+----------------+---------------+
|Bank interest receivable   |         153|              61|            150|
+---------------------------+------------+----------------+---------------+
|                           |         354|              55|            249|
+---------------------------+------------+----------------+---------------+



4 Dividend


The directors do not recommend the payment of a dividend.


5 Basic and diluted loss per share


The calculation of basic and diluted earnings per share is based on the retained
loss for the financial period (for the comparative periods - as restated).


The weighted average number of ordinary shares for calculating the basic loss
per share and diluted loss per share after adjusting for the effects of all
dilutive potential ordinary shares are as follows:

+----------------+------------------+------------------+------------------+
|                |     Six months to|     Six months to|        Year ended|
+----------------+------------------+------------------+------------------+
|                |      30 June 2006|      30 June 2005|  31 December 2005|
+----------------+------------------+------------------+------------------+
|                |       (unaudited)|       (unaudited)|(audited) restated|
|                |                  |          restated|                  |
+----------------+------------------+------------------+------------------+
|                |                  |                  |                  |
+----------------+------------------+------------------+------------------+
|Basic           |       314,265,328|       231,187,980|       246,854,369|
+----------------+------------------+------------------+------------------+
|                |                  |                  |                  |
+----------------+------------------+------------------+------------------+
|Diluted         |       317,430,012|       232,885,051|       249,308,944|
+----------------+------------------+------------------+------------------+



6  Other reserves



+------------------------+---------------+----------------+---------------+
|                        |  Six months to|   Six months to|     Year ended|
+------------------------+---------------+----------------+---------------+
|                        |   30 June 2006|    30 June 2005|    31 December|
|                        |               |                |           2005|
+------------------------+---------------+----------------+---------------+
|                        |    (unaudited)|     (unaudited)|      (audited)|
|                        |               |        restated|       restated|
+------------------------+---------------+----------------+---------------+
|                        |          £000s|           £000s|          £000s|
+------------------------+---------------+----------------+---------------+
|                        |               |                |               |
+------------------------+---------------+----------------+---------------+
|Start of period         |        (1,159)|           (572)|          (572)|
+------------------------+---------------+----------------+---------------+
|Shared based payment    |             13|               -|             10|
+------------------------+---------------+----------------+---------------+
|Currency translation    |               |                |               |
|differences on foreign  |               |                |               |
|currency net investments|               |                |               |
|                        |               |                |               |
|                        |            (8)|              11|              -|
+------------------------+---------------+----------------+---------------+
|Retained loss for the   |           (41)|           (303)|          (597)|
|period                  |               |                |               |
+------------------------+---------------+----------------+---------------+
|End of period           |        (1,195)|           (864)|        (1,159)|
+------------------------+---------------+----------------+---------------+



7 Approval of interim financial statements


The interim report for the six months to 30 June 2006 was approved by the
Directors on 27 September 2006.



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