Interim Management Statement

City Natural Res High Yield Tst PLC
15 November 2007

To:               RNS

Date:             15 November 2007

From:             City Natural Resources High Yield Trust plc


Interim Management Statement


For the Three Month Period from 1 July 2007 to 30 September 2007


Investment Objective


City Natural Resources High Yield Trust plc aims to provide Shareholders with
capital growth and income from a portfolio of mining and resource equities,
resources and industrial fixed interest securities.


Performance Summary

                                                    For the three month period
                                                       ended 30 September 2007

Total Return

Net asset value per share                                                 3.4%
Ordinary share price                                                      4.3%
Composite Index                                                          11.8%
HSBC Global Mining Index (sterling adjusted)                             17.5%
MSCI Euro Sterling Corporate Index                                        0.0%
(non-financials)


                                                     As at              As at
                                              30 September            30 June
Capital Values                                        2007               2007                   % Change

Net assets (£000s)                                £125,451           £125,928                      (0.4)
Net asset value per share -basic                    199.5p             200.3p                      (0.4)
Net asset value per share - fully                   192.7p             193.4p                      (0.4)
diluted
Share price                                        182.75p             176.0p                        3.8

Discount                                              5.2%               9.0%                      (4.2)
Gearing (100 = nil geared position) *                 121%               121%                        0.0


* Gearing = Total assets / Equity Shareholders' Funds


Review for the Period


Quarterly Review:

The quarter began quietly with a degree of profit taking and consolidation
against a background of firm commodity prices, with oil and gold standing out.

A traumatic August followed, with the Company's Net Asset Value down 14.0 per
cent (since 30 June 2007).  This seemed to be a case of knee jerk market
reaction to the crystallisation of the American sub-prime mortgage crisis;
notably, the oil and gold prices continued to advance.

Sure enough, September saw the market regain its nerve and the Company's Net
Asset Value ended the quarter in positive territory.

Dividend:

A final dividend for the year to 30 June 2007 of 0.85p per share was paid on 24
August 2007 to shareholders on the register on 27 July 2007.


Top Ten Holdings as at 30 September 2007
                                                                                      Percentage of
                                                                                       total assets


Company                                          Country

Riversdale Mining                                Australia                                      3.5
Nido Petroleum                                   Australia                                      3.4
European Gas                                     Australia                                      2.3
Gold Eagle Mines                                 Canada                                         2.1
Avoca Resources                                  Australia                                      1.9
Goldcorp                                         Canada                                         1.7
Horizon Oil                                      Australia                                      1.7
Jubilee Mines                                    Australia                                      1.5
Altius Minerals                                  Canada                                         1.5
Sylvania Resources                               United Kingdom                                 1.4

Total                                                                                          21.0


Geographical Analysis as at 30 September 2007
                                                                                       Percentage of
                                                                                        total assets


Country

Australia                                                                                       46.1
United Kingdom                                                                                  25.3
Canada                                                                                          22.3
United States                                                                                    2.2
South Africa                                                                                     2.0
Europe                                                                                           1.4
Papua New Guinea                                                                                 0.7

Total                                                                                          100.0


Sector Distribution as at 30 September 2007
                                                                                       Percentage of
                                                                                        total assets

Country

Resources - Equities                                                                            38.1
Gold Equities                                                                                   22.3
Resources - Convertibles                                                                        35.4
Bonds                                                                                            4.2

Total                                                                                          100.0


Significant Events or Transactions

Since 30 September 2007 the fully diluted Net Asset Value of the Company rose to
219.0p and the share price to 207.5p (both figures as at 9 November 2007). The
Board is not aware of any other significant events or transactions which have
occurred since 30 September 2007 and the date of publication of this statement
which would have a material impact on the financial position of the Company.


Daily and Key Information

Further information regarding the Company including the recent share price and
the recent monthly fact sheet, can be found at the Manager's website


www.ncim.co.uk


For further information please contact:


Richard Lockwood

New City Investment Managers Ltd

0207 201 5365


Martin A Cassels

F&C Asset Management plc

0207 628 8000



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