Contract

Anglo Pacific Group PLC
4 September 2000


Anglo Pacific Group PLC ('Anglo Pacific' or 'the Company') announces that it
has signed a contract with S.C.R. - Sibelco N.V. for the sale of the entire
issued share capital of each of Fife Silica Sand Limited ('FSS') and Fife
Resources Limited ('FifeR'), two of the Company's subsidiary companies, for an
aggregate price of £4m cash, subject to adjustment by reference to the net
working capital at the completion date.  Approximately £3,233,000 from the
proceeds of the disposals will be applied to pay off Anglo Pacific Group
borrowings and FSS's hire purchase commitments and the balance of £467,000
(net of expenses) will be applied as additional working capital for the
development of the remaining Anglo Pacific Group.  

FSS owns a sand quarry in Fife, Scotland and FifeR is an assets owning company
which holds certain mineral resources being land adjacent to the FSS sand
quarry.  At 31 December 1999 FSS had net assets of £1,319,588 and FifeR had
net assets of £1.  In the year ended 31 December 1999, FSS made a loss before
tax of approximately £371,000 and FifeR had no turnover.  

The Anglo Pacific Group is a mineral and project development company and its
main profit has, in the past, come from coal royalty flow.  FSS has not been
contributing to Group profit, therefore, along with FifeR, it is being sold. 
The disposals will eliminate a loss-making division and reduce the remaining
Anglo Pacific Group borrowing.  

The disposal of FSS and FifeR are conditional only on the approval of Ordinary
Shareholders of the Company.  It is expected that a Circular providing further
information will be despatched to shareholders later today.  The Circular will
incorporate a notice convening an Extraordinary General Meeting of the Company
to be held on 22 September 2000.  The purpose of the Extraordinary General
Meeting is for Ordinary Shareholders of the Company to consider and, if
thought fit, to pass an ordinary resolution to approve the disposal of FSS and
FifeR.