Interim Results - Operating Profits Up

ARAM RESOURCES PLC
27 October 1999



CHAIRMAN'S STATEMENT FOR THE PERIOD TO 30 JUNE 1999

On behalf of the Board of Directors, I am pleased to report on the Company's
performance in the six months to June 1999.  Operating profits for the period
were £336,000 compared with £316,000 in the first half of 1998, on sales of
£1,767,000.  Profit before taxation was £123,000 compared with £204,000 in the
same period last year.  An unchanged interim dividend of 1.0p per ordinary
share will be paid on 17 December 1999 to shareholders on the register at the
close of business on 12 November 1999.

As I reported in my statement which accompanied the 1998 Annual Report and
Accounts, we have devoted the first half of 1999 to the development of our
wharf locations into full operational satellite coating plants.  I am pleased
to report that the first such site in Runcorn on the Manchester Ship Canal is
now fully operational and our second site will be operational in the fourth
quarter of this year.  The results to June do not show any contribution from
these developments. 

We are benefiting from a strong local market in the South West and at our main
operating unit at Carnsew Quarry sales were ahead of last year by some 18 per
cent. 

As previously indicated, we have applied for planning permission to utilise
the void space created by our operations in the first part of Carnsew Quarry
as a landfill site for domestic and commercial refuse.  We are currently in
the consultation phase of the application which is expected to go to the
County Planning Committee in December of this year.  The existing quarrying
and coating operations at Carnsew will continue in Carnsew Two alongside any
landfilling of Carnsew One.

At West of England Quarry, our coastal quarry on the Lizard in Cornwall, work
is well under way on the extension of the existing wharf to allow access for
larger vessels.  Its location together with our environmentally sustainable
aggregate resources from steelworks in Belgium and France will provide us with
significant advantages at our satellite plants along the South Coast of
England.

The first half of the trading year has very much been a period of development
and expansion.  All indications are that our satellite plants when operational
are able to surpass our original expectations in terms of both sales and
profitability.

The balance sheet as at June 1998 includes a revaluation of our wharf sites to
reflect their current stage of development.  They were independently valued
during the first half of the year.  As at June, net assets per ordinary share
were in excess of £3.50.

Current trading continues at reasonable levels and as a result we expect a
satisfactory performance in the second half.


PROFIT AND LOSS ACCOUNT 
for the six months ended 30 June 1999

                             6 months ended  6 months ended   12 months ended
                               30 June 1999    30 June 1998  31 December 1998
                                  unaudited       unaudited           audited
                                      £'000           £'000             £'000

Turnover                              1,767           1,502             3,225
Cost of sales                        (1,209)         (1,004)           (2,038)
                                      -----           -----             -----
Gross profit                            558             498             1,187
Administrative expenses                (222)           (182)             (520)
                                      -----           -----             -----
Operating profit                        336             316               667
Net interest                           (213)           (112)             (304)
                                      -----           -----             -----
Profit on ordinary activities
before taxation                         123             204               363

Tax on profit on ordinary 
activities                                -             (25)                -
                                      -----           -----             -----
Profit for the financial period         123             179               363

Dividends non-equity                    (27)            (27)              (54)
Interim dividend                        (56)            (52)             (103)
                                      -----           -----             -----
Profit transferred to reserves           40             100               206
                                      =====           =====             =====
Earnings per share                      1.8p           2.95p             6.01p
                                      =====           =====             =====


BALANCE SHEET
as at 30 June 1999
                                30 June 1999   30 June 1998  31 December 1998
                                   unaudited      unaudited           audited
                                       £'000          £'000             £'000
Fixed Assets
Tangible assets                       24,104          3,426            19,591
                                      ------         ------            ------
                                      24,104          3,426            19,591

Current Assets
Stocks                                 1,955            955             1,732
Debtors                                  623            618               463
Cash at bank and in hand                  13            169               409
                                      ------         ------            ------
                                       2,591          1,742             2,604

Creditors: amounts falling due 
within one year                       (3,028)        (1,357)           (2,537)
                                      ------         ------            ------
Net current assets                      (437)           385                67

Total assets less current 
liabilities                           23,667          3,811            19,658

Creditors: amounts falling due 
after more than one year              (3,238)        (2,431)           (3,519)
                                      ------         ------            ------
                                      20,429          1,380            16,139
                                      ======         ======            ======

Capital and Reserves
Called up share capital                  964            964               964
Share premium account                     31             44                31
Revaluation reserve                   18,916              0            14,666
Profit and loss account                  518            372               478
                                      ------         ------            ------
Shareholders' funds                   20,429          1,380            16,139
                                      ======         ======            ======

Notes:

1.  The interim financial statements are unaudited and have been prepared on
    the basis of the accounting policies set out in the Company's 1998
    statutory accounts.  The financial information for the six months to June
    1998 has been extracted from the financial statements for the year ended
    31 December 1998.  These accounts, upon which the auditors expressed an
    unqualified opinion, have been delivered to the Registrar of Companies.

2.  The earnings per share calculation for the six months ended June 1999 is
    based on the profit for the period of £123,000, less non-equity dividends
    of £27,000, leaving a total of £96,000 attributable to ordinary
    shareholders.  The weighted average number of ordinary shares in issue
    during the period was 5,330,495.

3.  This report is being sent to all shareholders in the Company and copies
    are available to the public at the Company's registered office, 123
    Promenade, Cheltenham, Gloucestershire  GL50 1NW.