Anglo Pacific Group PLC - Preliminary Results 2008

Anglo Pacific  Group  PLC  (APG),  the  natural  resources  royalties
company, today announces preliminary results for the year ended  31st
December 2008.

Financial Highlights

*          Coal royalties for the year of £22.1 million (2007: £8.4
  million)
*          Realised profits from mature mining interests of £14.0
  million (2007: £25.6 million)
*          Earnings of 27.56p per share (2007: 28.72p)
*          Proposed final dividend of 4.35p per share (2007: 4.35p)
*          Total dividends for the year increased by 6% to 7.80p
  (2007: 7.35p)
*          Profit before tax of £35,255,000 (2007: £33,768,000)
*          Profit after tax of £29,261,000 (2007: £29,740,000)
*          Australian coal royalty independent valuation of £93.3
  million (2007: £60.9 million)
*          Total strategic interests, including other royalties,
  valued at £53.5 million (2007: £95.8 million)
*          Cash and royalty receivables of £28.7 million (2007: £20.8
  million)
*          Total assets of £176.4 million (2007: £178.2 million)

Operational Highlights

*          Record coal royalty receipts
*          Two gold royalties acquired and first new royalty payment
  received
*          Several new royalties under negotiation
*          Further progress on private Canadian coal projects
*          Decline in value of quoted strategic interests in line
  with markets
*          Increased exposure to energy and gold during the period
*          Substantial cash reserves and no debt

Commenting on  the Preliminary  Results, Peter  Boycott, Chairman  of
Anglo Pacific Group PLC said:

"2008 has been a challenging but satisfactory year for Anglo  Pacific
Group. Record royalty receipts together with profits from disposal of
non-core mining interests have produced similar earnings to 2007. The
Group is paying the same final dividend to shareholders as last  year
in the light of the uncertain outlook for the mining sector.  However
total dividends for the year have  risen by 6%.  During the year  the
Group acquired two new gold royalties in Spain and Brazil as well  as
negotiating several  more  subject  to  due  diligence.  The  Group's
strategic quoted  interests declined  in value  in line  with  mining
markets generally.

The Group's strategy  remains focused  on securing  new royalties  by
acquisition and through investment in  its mining interests in  order
to generate  strong cashflows  and  dividends for  shareholders.  The
Board is confident  that the recent  severe difficulties that  mining
companies  are  facing  in  raising  capital  will  provide   royalty
opportunities for the Group"

For further information and enquiries:

Anglo                Pacific                Group                 plc

[phone]
Peter Boycott, Chairman
Matthew Tack, Finance Director
Brian Wides, Chief Executive Officer

Liberum
Capital
[phone]
Chris Bowman
Simon Stilwell

Scott
Harris
[phone]
Stephen Scott
James O'Shaughnessy

Website:
www.anglopacificgroup.com

2008 Review and Results

During the first  half of  2008, the  outlook for  the world  economy
started to  deteriorate  due to  increasing  fears of  recession  and
stagflation.  The  commodity  markets  were  characterised  by  sharp
increases in the prices of energy products, particularly oil, and  by
the record contracted prices achieved by the major mining groups  for
steaming and coking coal.  Despite these high energy costs the  price
of uranium remained subdued.

The setback in  mining stock markets  in the early  part of the  year
turned into a major collapse of  prices in the autumn as banking  and
financial problems developed  into a worldwide  liquidity and  credit
crisis. This uncertainty has kept the price of gold buoyant.

Against this background the Group has benefited from the strength  of
its diversified  strategic interests,  with a  continued emphasis  on
energy, precious metals and coal.  Critically, the Group has remained
focused on securing new royalties.  In this respect, during the year,
the Group acquired two  new gold royalties in  Spain and Brazil at  a
cost of C$7.5 million and A$4 million.

Whilst the Group's strategic quoted mining investments have fallen in
value in  line with  the  mining markets  as  a whole,  coal  royalty
receipts for the year have  been at record levels.  Furthermore,  the
sharp falls in  the prices of  junior mining stocks  and collapse  in
metal prices  has  all  but  closed the  normal  sources  of  finance
available to  small  mining companies.   This  has resulted  in  more
opportunities for the Group to secure new royalties.

With coking coal prices trebling to nearly US$300 per ton, the  group
received from the Kestrel and Crinum mines in Queensland record  coal
royalties of £22.1 million (A$50 million) compared to £8.4 million in
2007.  With the  prospect of lower  coking coal prices  in 2009,  the
value of the  Group's coal  royalty interests has  declined to  £93.3
million  from  £96.8  million  at  30th  June  2008,  but  is   still
substantially higher than the valuation  of £60.9 million as at  31st
December 2007.

Due to the reduction  in liquidity and sharp  falls in junior  mining
markets, the Group realised reduced profits on the sale of mining and
exploration interests of  £14.0 million (2007:  £25.6 million).   The
value of the Group's quoted and unquoted strategic interests and cash
as at 31st December 2008  was £70.7 million (2007: £114.7  million).
The Group remains cash generative and in a strong financial position,
being well capitalised and debt free.

Earnings for the year  were 27.56p per share  compared to 28.72p  per
share in 2007.

With a background of overwhelming recessionary forces in the  markets
as well as uncertainty  over the future pricing  of coking coal,  the
Group has decided to keep its  final dividend unchanged at 4.35p  per
share (2007: 4.35p).  However, total dividends for the year increased
by 6% to 7.80p (2007: 7.35p).

The Group's strategic  interests, which include  quoted and  unquoted
investments and other royalties, were valued at 31st December 2008 at
£53.5 million compared to £95.8  million a year ago.  This  valuation
includes all  the  private  mining  interests  which  remain  in  the
financial statements at cost.  In British Columbia work has continued
on both the Groundhog and Trefi coalfields where drilling  programmes
are planned and dialogue with  local interest groups continues.   The
Group intends to prove  up a compliant  resource statement for  Trefi
during 2009.

At 31st  December 2008  the  Group had  no  borrowings and  over  £17
million of  cash  in the  bank.   The Group's  mining  interests  and
royalty  revenues  are  mainly   denominated  in  US,  Canadian   and
Australian dollars and its liquid resources  are held in a spread  of
currencies and banks.

Strategy and Progress

The Group's strategy  remains focused  on securing  new royalties  by
acquisition and through investment in  its mining interests in  order
to generate strong  cashflows and  continue to pay  dividends to  its
shareholders.


  * In March 2008 the Group agreed a 2.5% royalty for C$7.5 million
    from Kinbauri Gold Corp. on its gold deposit in northern Spain,
    subject to due diligence.  The royalty increases to 3% in the
    event that the gold price exceeds US$1,100 an ounce.  This deal
    completed in October 2008.



  * In September 2008 the Group agreed a 2.5% gold royalty with Mundo
    Minerals Ltd on its producing Engenho mine in Brazil for A$4
    million, subject to due diligence.  The deal completed in
    November 2008.  The Group has been a significant shareholder in
    Mundo Minerals for some time and was therefore in a position to
    provide finance for working capital when a short term production
    shortfall affected cashflow.  The first royalty payment from this
    investment has recently been received.



  * In December 2008 the Group agreed, subject to due diligence, to
    acquire a 2% net smelter royalty for A$5 million with Indo Mines
    Ltd, developer of the Jogjakarta iron sands project in Indonesia.
     The funds will be principally used to complete the feasibility
    study and to acquire additional iron sands properties.  The Group
    has been and continues to be a significant shareholder in Indo
    Mines and was the first port of call to provide finance when the
    normal sources of capital were unavailable.



  * Two further royalties are currently under negotiation and subject
    to due diligence processes.



  * The Group's strategic interests, cash and royalty receivables
    were valued at 31st December 2008 at £82.2 million (2007: £116.5
    million).  The recent valuation of the Group's coal royalties
    raises the Group's total assets to £176.4 million with no debt.
     This does not include any excess over cost attributable to the
    real value of the Group's substantial private coal and other
    mining interests in British Columbia and Australia.


The Group's quoted  equity interests  disclosed on the  LSE, ASX  and
TSX, where initial equity stake disclosure levels are 3%, 5% and  10%
respectively,  amount  to  £29  million  in  twenty  three  different
holdings.  The balance of quoted holdings of £5 million is made up of
a further twenty one incubator investments.  The split of the Group's
strategic interests by  commodity is  now on the  Group's website  at
www.anglopacificgroup.com where all the  equity disclosures can  also
be accessed.

Subject to approval at  the AGM to  be held in  London on 23rd  April
2009, the 2008  final dividend  of 4.35p per  share will  be paid  to
shareholders on 3rd July 2009.   This brings the total dividends  for
the year to 7.80p (2007: 7.35p).  Depending on the share price at the
time, the  Board will  consider whether  shareholders will  again  be
given the opportunity to elect to receive a scrip dividend instead of
cash.

Outlook

Recent months have seen  many of the  major mining companies  closing
down their marginal mines as well as cutting back on planned  capital
expenditure on new and existing projects.  This has and will continue
to reduce supply  of metal to  world markets.  When  the recovery  in
demand starts this should lead to higher commodity prices.

The timing of this recovery and  in particular the future demand  for
steel products will determine the price  of coking coal for the  next
year or  two.   The extent  to  which governments  around  the  world
promote infrastructure projects to  revive their economies will  also
prove an important factor.

The collapse  in the  junior quoted  mining sector  has made  project
finance very difficult to raise from conventional lenders or  through
the stock  market without  severe  dilution for  shareholders.   This
environment  has  produced  many  opportunities  and  the  Group   is
confident that, with  conservative management of  its cash and  other
resources, it can maintain its strategic focus to achieve new royalty
flows and continue to pay dividends.

Finally, I would  like to  thank shareholders for  their support  and
directors and staff for their hard work during a challenging year.

P.M. BOYCOTT
Chairman
25th February 2009








                                                     2008      2007
                                                     £'000     £'000

Royalty income                                       22,072     8,439
Other operating income                                   50       191
Finance income                                          957       623
                                                     23,079     9,253
Profit on sale of mining and exploration
interests                                            14,016    25,612
Total income                                         37,095    34,865

Net operating expenses                              (1,840)   (1,097)
Profit before tax                                    35,255    33,768

Tax                                                 (5,994)   (4,028)
Profit attributable to equity holders                29,261    29,740

Total and continuing earnings per share
Basic earnings per share (note 1)                    27.56p    28.72p

Diluted earnings per share (note 1)                  27.56p    28.72p



Turnover and profit before tax are derived from the Group's
continuing operations.




                                                     2008      2007
                                                    £'000      £'000

Non-current assets
Property plant and equipment                            829       832
Coal royalties                                       93,347    60,874
Other royalties                                       7,783         -
Mining and exploration interests                     45,755    95,750
                                                    147,714   157,456

Current assets
Trade and other receivables                          11,575     1,874
Cash at bank                                         17,136    18,904
                                                     28,711    20,778

Total assets                                        176,425   178,234


Non-current liabilities
Deferred tax                                         28,857    19,252
                                                     28,857    19,252

Current liabilities
Current taxation                                        877     2,538
Trade and other payables                                849       262
                                                      1,726     2,800

Total liabilities                                    30,583    22,052

Capital and reserves attributable to
shareholders
Share capital                                         2,123     2,113
Share premium                                        18,604    17,742
Coal royalty revaluation reserve                     58,430    40,899
Investment revaluation reserve                     (22,149)    33,104
Share based payment reserve                              78        48
Foreign currency translation reserve                  7,230     2,224
Special reserve                                         632       632
Retained Earnings                                    80,894    59,420
                                                    145,842   156,182

Total equity and liabilities                        176,425   178,234





                                                              Share
                      Share   Share     Coal     Investment   based     Foreign   Special Retained  Total
                     capital premium   royalty   revaluation payment    currency  reserve earnings  equity
                                     revaluation   reserve    reserve translation
                                       reserve                          reserve
                       £'000   £'000       £'000       £'000    £'000       £'000   £'000    £'000    £'000

Balance at 1st
January 2007           2,032  12,112      35,403      27,078       27     (1,930)     632   36,140  111,494
Changes in equity
for 2007
Coal Royalties:
     Royalties
valuation movement
taken to equity            -       -       8,759           -        -       4,247       -        -   13,006
     Deferred tax
on valuation               -       -     (3,263)           -        -     (1,134)       -        -  (4,397)
Available-for-sale
investments:
     Valuation
movement taken to
equity                     -       -           -      24,778        -         937       -        -   25,715
     Deferred tax
on valuation               -       -           -       (319)        -          15       -        -    (304)
     Transferred
to income
statement on
disposal                   -       -           -    (18,433)        -           -       -        - (18,433)
Foreign currency
translation                -       -           -           -        -          89       -        -       89
Net expense
recognised direct
into equity                -       -       5,496       6,026        -       4,154       -        -   15,676
Profit for the
period                     -       -           -           -        -           -       -   29,740   29,740
Total recognised
income and
expenses                   -       -       5,496       6,026        -       4,154       -   29,740   45,416
Dividends paid             -       -           -           -        -           -       -  (6,460)  (6,460)
Scrip Dividend            18   1,350           -           -        -           -       -        -    1,368
Issue of share
capital                   63   4,280           -           -        -           -       -        -    4,343
Equity share
options issued             -       -           -           -       21           -       -        -       21
Balance at 1st
January 2008           2,113  17,742      40,899      33,104       48       2,224     632   59,420  156,182
Changes in equity
for 2008
Coal Royalties:
     Royalties
valuation movement
taken to equity            -       -      25,943           -        -       6,530       -        -   32,473
     Deferred tax
on valuation               -       -     (8,412)           -        -     (1,844)       -        - (10,256)
Available-for-sale
investments:
     Valuation
movement taken to
equity                     -       -           -    (40,881)        -       (111)       -        - (40,992)
     Deferred tax
on valuation               -       -           -       4,286        -       (325)       -        -    3,961
     Transferred
to income
statement on
disposal                   -       -           -    (18,658)        -           -       -        - (18,658)
Foreign currency
translation                -       -           -           -        -         756       -        -      756
Net income
recognised direct
into equity                -       -      17,531    (55,253)        -       5,006       -        - (32,716)
Profit for the
period                     -       -           -           -        -           -       -   29,261   29,261
Total recognised
income and
expenses                   -       -      17,531    (55,253)        -       5,006       -   29,261  (3,455)
Dividends paid             -       -           -           -        -           -       -  (7,787)  (7,787)
Scrip Dividend            10     862           -           -        -           -       -        -      872
Issue of share
capital                    -       -           -           -        -           -       -        -        -
Equity share
options issued             -       -           -           -       30           -       -        -       30
Balance at 31st
December 2008          2,123  18,604      58,430    (22,149)       78       7,230     632   80,894  145,842




                                                    2008       2007
                                                   £'000      £'000

Cash flows from operating activities
Profit before taxation                              35,255     33,768
Adjustments for:
Interest received                                    (957)      (623)
Unrealised foreign currency loss                       756         89
Depreciation of property, plant and equipment            9         10
(Gain) on  disposal of  mining and  exploration
interests                                         (14,016)   (25,612)
(Gain) on revaluation  of assets  held as  fair
value through profit or loss                         (126)          -
Share based payments                                    30         21
                                                    20,951      7,653
(Increase) in trade and other receivables          (9,701)       (40)
Increase in trade and other payables                   588          7
Cash generated from operations                      11,838      7,620
Income taxes paid                                  (4,342)    (2,883)
Net cash flows from operating activities             7,496      4,737

Cash flows from investing activities
Proceeds on disposal of mining and exploration
interests                                           31,117     44,945
Purchase of  mining and  exploration  interests
and other royalties                               (34,423)   (36,145)
Interest received                                      957        623
Net cash flows from investing activities           (2,349)      9,423

Cash flows from financing activities
Dividends paid                                     (6,915)    (5,092)
Net cash flows from financing activities           (6,915)    (5,092)

Net (decrease) / increase in cash and cash
equivalents                                        (1,768)      9,068

Cash and cash equivalents at beginning of
period                                              18,904      9,836

Cash and cash equivalents at end of period          17,136     18,904





1.                                             Earnings per  ordinary
share is calculated on  the Group's profit  after tax of  £29,261,000
(2007:  £29,740,000) and  the weighted  average number  of shares  in
issue during the year of 106,172,139 (2007:  103,546,147).

                The diluted earnings per ordinary share is calculated
on  a  profit  after  tax  of  £29,261,000  (2007:  £29,740,000)  and
106,177,235 shares (2007: 103,565,904). The dilutive effect is due to
options outstanding under  the Employee  Share Option  Scheme at  the
year end.

2.             The  above figures  do  not constitute  full  accounts
within the meaning  of Section  240 of  the Companies  Act 1985.  The
figures for the  year ended  31st December  2007 constitute  abridged
accounts extracted from  the published  accounts for  the year  which
have been filed  with the  Registrar of  Companies and  on which  the
auditors' report  was unqualified  and did  not contain  a  statement
under Section 237(2)  or (3) of  the Companies Act  1985.  The  audit
opinion on the accounts for the year ended 31st December 2008 has not
yet been signed.


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