Final Results

Anglo Pacific Group PLC
19 March 2004

19 March 2004

                            Anglo Pacific Group PLC

                               Annual Report 2003

                               CHAIRMAN'S REVIEW

The year under review has been an exciting period for Groups involved in the
Mining Industry. The global improvement in the demand for precious and base
metals, energy and associated products has had a major impact on the assets and
results of your Company. I would like to briefly summarize some of the main
features contained in these accounts:-


                                   HIGHLIGHTS
                                        
   • Proposed Final Dividend of 1.3p per share (2002:- 0.65p)

   • Total Dividends for the year increase by 49% to 2.6p (2002:-1.75p)

   • Australian Coal Royalty Independent Valuation increases by 54% to £44.3
     million

   • Cash and Strategic Investments increases by 64% to £11.2 million

   • Earnings of 3.7p per share (2002:- 4.09p) due to reduced coal royalties
     on account of mining more on Crown Land than Private Ground

   • Much stronger Royalty Flows from Private Ground expected in 2004

   • Encouraging outlook for Coking Coal prices and Production Rates due to
     Chinese, Indian and Far East demand

   • Increased holding in substantial Canadian Coal Deposits in British
     Columbia which are currently included in the accounts at negligible value

   • Canadian Coal Bed Methane opportunity in British Columbia

   • £40 million of Unused Tax Losses


For further information please contact:

Jonathan Rooper               CardewChancery          020 7930 0777


RESULTS

Following reduced royalty receipts from our Australian coal mining interests,
explained below, Group profits before tax for the year ended 31st December 2003
were £4,109,000 compared to £5,191,000 for the previous year. However profits
after tax were £3,240,000 (2002: £3,560,000) with earnings per share for the
year of 3.70p (2002: 4.09p). The Group had realised capital gains of £1,360,000
(2002: £7,000) from its mining interests.

I am pleased to announce a final dividend of 1.3p per share for the year ended
31st December 2003 which with the interim dividend of 1.3p per share paid on
30th January 2004 will make a total for 2003 of 2.6p per share (2002: 1.75p).
The Board proposes to pay the final dividend on 6th August 2004 to shareholders
on the Company's share register at the close of business on 25th June 2004. As
with the interim dividend shareholders will be given the opportunity to elect to
receive a scrip dividend instead of cash.

Our coal royalty interests are independently valued at £44.3 million as of
December 2003 which is £15.6 million more than the valuation at 31st December
2002.

During the year your Company has participated in financings for a number of
strategic mining opportunities. Our mining operational interests and quoted
stakes in gold, diamond and PGM projects were valued at 31st December 2003 at
£9.6 million. This included an unrealised profit over book value of £3.5 million
in addition to the realised gains referred to earlier. The Company also had cash
of £1.6 million at 31st December 2003.

OPERATIONAL REVIEW

COAL ENERGY INTERESTS

COAL ROYALTIES

In Australia, coal royalty receipts from the Kestrel and Crinum mines, operated
by Rio Tinto and BHP Billiton respectively, were £3,376,000 (2002: £5,802,000).

The independent valuation of these interests at the year-end was A$105.2 million
(£44.3 million) compared to A$81.4 million (£28.7 million) at 31st December 2002
and is based on the net present value of the pre-tax cashflow discounted at a
rate of 7%. The net royalty income is taxed in Australia at a rate of 30%. The
change in the valuation compared to last year has been adjusted to revaluation
reserve.

Our coal royalty is computed by reference to Queensland Government legislation
which resulted in an increase in the rate of royalty from 4% to 7% in April
2000. The legislation applies to both ground owned by the Crown and certain
other privately owned areas in which your Company participates. During 2003
mining output was mainly from the Crown's area of the coal deposits rather than
the privately owned areas which accounts for the drop in our coal royalty
receipts over the year. In 2004 it is anticipated that mining will be mainly
from the privately owned ground which should accordingly produce much stronger
royalty flows for the Company.

COAL DEPOSITS

Your Company has increased its holding in its Canadian coal deposits in British
Columbia to 65% of the Groundhog and Peace River projects. The outlook for the
potential joint venture development of these resources has further improved due
to the increasing demand for coal products from China, Japan and the Far East as
well as North American domestic demand. The Groundhog and Peace River projects
are reflected in our accounts at negligible value.

COAL BED METHANE

Your Company owns a circa 15% interest in the Merritt coal and coal bed methane
project in British Columbia. With coal bed gas prices having risen sharply
during 2003 joint venture discussions continue with potential partners to
progress this project.

GOLD AND PLATINUM GROUP METALS

At 31st December 2003 your Company had investments at a market value of £9.6
million in gold, diamond and platinum projects based mostly in North America and
Australia.

The Company's strategy continues to be to acquire projects that expect to yield
dividend and royalty cashflow as well as substantial share appreciation in the
next few years. The two largest strategic mining stakes of the Company are in
Kirkland Lake Gold and Platinum Australia .

  • Kirkland Lake Gold is now producing gold at its Macassa mine in Northern
    Ontario . Its higher market rating has resulted in a substantial capital
    gain for your Company on its holding. Kirkland Lake Gold is still
    discovering gold at grades in excess of 16 grams per ton and sometimes at
    much higher grades and hopes to further increase gold production in 2004.

  • During the year Platinum Australia announced the postponement of the
    start of mining at its Panton project in Western Australia due to lower
    palladium prices and the strong Australian dollar. In order to develop and
    market the Panton process and to raise further working capital for its
    mining interests, Platinum Australia recently had a rights issue in which
    your Company participated, thereby further increasing its stake. The Board
    remains positive about the prospects for both the successful development of
    the Panton process and of the PGM deposit itself. Platinum and Palladium
    prices have increased in recent months.

Other strategic holdings include Aquiline Resources, Starfield Resources and
Muscox Minerals:-

  • Aquiline Resources has gold interests in Argentina in the same area as
    Brancote, a previous successful investment of the Company.
  • Starfield Resources has a large copper, nickel and PGM prospect in
    Nunavut in Northern Canada.
  • Muscox Minerals recently reported excellent drilling results on its gold
    property in British Columbia and also has a joint venture with Anglo
    American on another substantial base metal and PGM property in Nunavut.

More information on these projects and our other mining interests can be found
on the Group's website at www.anglopacificgroup.com .

TALC

Your Board continues to look for a joint venture funding partner for the
Company's Shetland talc interests. It is our intention to jointly mine this
deposit with a view to establishing a royalty flow in due course.

STRATEGY

The Board will continue to pay a substantial proportion of the coal royalty as
dividends to shareholders whilst pursuing an active mining participation
strategy in the gold, diamond, base metal and PGM sectors using the balance of
our cashflow.

The main thrust of the Board's mining operations and joint ventures is still
concentrated in North America, Australia and Western Europe. The Board intends,
where possible, to shield any profits arising by using its tax losses of over
£40 million.

Development of the Company's Canadian coal deposits and coal bed methane
interests has become an important part of your Board's strategy due to the
unprecedented demand for coal energy from China, India and the Far East.

ATTRIBUTABLE ASSETS

The latest attributable asset position of your Company's acquisitions in its
coal, gold and PGM projects around the world is summarised below. The guideline
figures are estimated in proportion to the holding that your Company has in each
project based on latest published data:-

   • Australian Coal Royalty                       79M tons coal

   • Canadian Groundhog, Peace River & Merritt     546M tons coal

   • Canadian Coal Bed Methane                     4.6B cu ft cbm

   • Platinum Group Metals                         596k ozs pgms

   • Gold interests                                212K ozs gold

Shareholders are again referred to the Company's website for this and further
information on the Company's operational interests.

OUTLOOK

The outlook for coking coal prices remains extremely encouraging and, with
production at the two mines in Australia expected to be at record levels and
mostly on the private ground, the Board expects much stronger coal royalties
this year. Furthermore current spot prices are well ahead of this year's fixed
contract prices which themselves are over 25% up on the previous year.

With the weakness of the US dollar and the current demand for metals and energy
fuels worldwide driven by Chinese, Indian and Far Eastern demand, the Board is
optimistic about the opportunities for its gold, diamond, base metal and PGM
interests, as well as for the substantial coal and coal gas projects that the
Company has in Canada.

Finally I wish to thank our staff and my fellow Directors for their efforts and
hard work over the year. The Board joins me in thanking shareholders for their
continued support.

P.M. BOYCOTT
Chairman
19th March 2004


ANGLO PACIFIC GROUP PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31st DECEMBER 2003

                                                          2003           2002
                                                        £000's         £000's
Turnover
Continuing operations                                    3,376          5,802
Discontinued operations                                      -            142
                                                         _____          _____
                                                         3,376          5,944
                                                         _____          _____
Cost of sales
Discontinued operations                                      -          (169)
                                                         _____          _____
                                                             -          (169)
                                                         _____          _____
Gross profit                                             3,376          5,775
                                                         _____          _____
Continuing operations
Administrative expenses                                  (849)          (733)
Other operating income                                     106            120
                                                         _____          _____
Operating profit from continuing operations              2,633          5,189
                                                         _____          _____
Discontinued operations
Administrative expenses                                      -           (57)
                                                         _____          _____
Operating (loss) from discontinued operations                -           (84)
                                                         _____          _____
Total operating profit                                   2,633          5,105
Profit on sale of fixed asset investments                1,360              7
Profit on disposal of subsidiaries                           -             75
Interest received                                          116            148
Write down of assets                                         -          (144)
                                                         _____          _____
Profit on ordinary activities before tax                 4,109          5,191
Taxation on ordinary activities                          (869)        (1,631)
                                                         _____          _____
Profit for the financial year                            3,240          3,560
Dividends: Interim                                     (1,137)          (957)
Final                                                  (1,146)          (568)
                                                         _____          _____
Retained profit for the financial year                     957          2,035
                                                         _____          _____
Earnings per ordinary share                              3.70p          4.09p
Diluted earnings per ordinary share                      3.66p          4.03p
                                                         _____          _____

STATEMENT OF TOTAL RECOGNISED                             2003           2002
GAINS AND LOSSES                                        £000's         £000's
Retained profit for the financial year                     957          2,035
Unrealised revaluation of Australian royalty 
interests                                               15,582        (2,274)
Currency translation surplus on foreign currency 
investments                                                 22             24
                                                         _____          _____
                                                        16,561          (215)
                                                         _____          _____


ANGLO PACIFIC GROUP PLC
CONSOLIDATED BALANCE SHEET
AT 31st DECEMBER 2003

                                                      2003           2002
                                                  £000's £000's   £000's £000's
Fixed assets
Tangible assets                                             846             839
Investment in subsidiary undertakings                         -               -
Investments                                              50,342          31,623
                                                         ______          ______
                                                         51,188          32,462
Current assets
Debtors                                            1,052           1,091
Cash at bank and in hand                           1,642           3,766
                                                   _____           _____
                                                   2,694           4,857
Current liabilities
Creditors-amounts falling due within
one year                                         (2,662)         (2,473)
                                                 _______         _______
Net current assets                                           32           2,384
                                                         ______           _____
Total assets less current liabilities                    51,220          34,846
Long term liabilities
Provisions for liabilities and charges                    (224)           (411)
                                                         ______           _____
                                                         50,996          34,435
                                                         ______           _____
Capital and reserves
Called up share capital                                   1,749           1,749
Share premium account                                       420             420
Revaluation reserve                                      42,582          27,000
Foreign currency translation reserve                        103              81
Special reserve                                             632             632
Profit and loss account surplus                           5,510           4,553
                                                         ______           _____
Equity shareholders' funds                               50,996          34,435
                                                         ______           _____


ANGLO PACIFIC GROUP PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31st DECEMBER 2003

                                                      2003           2002
                                                  £000's £000's   £000's £000's
Net cash inflow from operating activities                 2,690           5,029
Returns on investments and servicing of finance
Interest received                                    116             148
                                                   _____           _____

Net cash inflow from returns on investments 
and servicing of finance                                    116             148
Taxation
Overseas tax paid                                (1,614)           (995)
UK Income tax                                          -               -
                                                 _______           _____
                                                        (1,614)           (995)
Capital expenditure and financial investment
Payments to acquire tangible fixed assets           (14)            (85)
Receipts from sales of tangible fixed assets           -               -
Sale of equity investments                         3,613              76
Purchase of equity investments                   (5,390)         (2,977)
                                                 _______         _______

Net cash (outflow) from capital
expenditure and financial investment                    (1,791)         (2,986)
Acquisitions and disposals
Disposal of subsidiaries (net of expenses)                    -             268
                                                        _______         _______
Net cash (outflow)/inflow before financing                (599)           1,464
Financing
Issue of ordinary share capital                                       90
Dividends paid                                   (1,525)               -
                                                 _______         _______
Net cash (outflow)/inflow from financing                (1,525)              90
                                                        _______         _______
(Decrease)/increase in cash                             (2,124)           1,554
                                                        _______         _______


Notes

1.  Earnings per ordinary share is calculated on the Group's profit after tax
    of £3,240,000 (2002 - £3,560,000) and the weighted average number of shares
    in issue during the year of 87,462,955 (2002 - 86,997,202).

    The diluted earnings per ordinary share is calculated on a profit after tax
    of £3,240,000 and 88,578,955 shares.

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 2002 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. The audit opinion on the
    accounts for the year ended 31st December 2003 has not yet been signed.



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