Final Results

Eurasia Mining PLC 29 April 2003 PRELIMINARY ANNOUNCEMENT OF UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2002 CHAIRMAN'S STATEMENT During 2002 the company continued seeking to establish a flow of exploration and development projects capable of delivering value to shareholders, most particularly in the Urals platinum programme where, together with Anglo Platinum, we have now acquired a licence portfolio with excellent potential. Our strategy of acquiring new projects in an improving investment climate has gained momentum with two proposed new gold projects in Russia. Further projects have been identified and are currently being evaluated. I believe the company is set fair to re-establish itself as an exciting investment vehicle for precious metals in the region in the immediate future. Russia has seen major changes in its minerals industry over the past twelve months, especially in gold where exports have been liberalised. Similar changes are under discussion for platinum group metals (PGM). Domestic companies have reorganised and consolidated and with the improving economy and political climate, mining activity has expanded rapidly. Foreign investment has increased, and a number of overseas mining companies, which like us have been involved in the area for many years, are becoming significant gold producers. We too have responded to this improved environment and have built on our experience in Russia to implement our acquisition strategy. The first fruits of these efforts can be seen in the advanced gold project at Ametistovoye where we are carrying out due diligence on mine development options. An additional and exciting gold exploration area at Kumroch in Kamchatka will also be explored in the coming months. Meanwhile, the company has been building on its PGM work in the Urals, working with Anglo Platinum on our alluvial platinum prospects. Our reconnaissance work in 2000 identified three substantial targets for exploration. In January our application for access to the prime target at West Kytlim was granted, and we look forward with considerable anticipation to this year's results based on the encouraging indications from our first sampling. Drilling work planned for 2003 will appraise this potential and we hope to achieve pilot production from one area. Last year's results at Vissim, where we could start because we already held the ground, were disappointing in that the mixing of ore and waste resulting from several episodes of dredging precludes large scale production although a smaller operation is possible. Elsewhere in the Urals we reported further good results from our sole funded drilling programme at Kluevsky, where the company discovered a shallow zone of palladium-gold mineralisation in 2001. In parallel, the diversification of the group's PGM interests into South Africa has continued, with a second project at Doornbosch initiated in the Bushveld Complex in joint venture with RandGold. Together with our project at Kliprivier we have established an attractive platinum exploration play which we look forward to advancing in 2003. This work was delayed due to prolonged delays caused by land title problems that took some months to resolve and by uncertainties occasioned by changes to the Mining Act. We welcome the changes introduced but not the uncertainties and the delays that they have produced. It is our intent to investigate ways in which we can obtain better recognition in terms of value for these interests. The important task of building on our existing assets is set to continue in 2003. We expect to go on acquiring new projects which will be developed either in partnership with other companies or on our own. We are hopeful that this effort will reward us all in adding significant value for shareholders. The market in mining shares has not been easy in the current climate but your board has set a strategy designed to create an attractive precious metals company with excellent development potential. We also aim to develop mine production over the next two years on two projects, Ametistovoye and West Kytlim. Finally, I would like to thank our board and staff for their work during the year. In a short period they have brought new projects forward for appraisal, not the least Ametistovoye and Kumroch. I am also happy to report that Christian Schaffalitzky joined the company as Managing Director in October 2002 and has injected a new enthusiasm and direction to our team. John Mitchell Chairman Listing: Alternative Investment Market, London Stock Exchange Code: EUA Web Site: www.eurasia-mining.plc.uk Email: info@eurasia-mining.plc.uk For further information please contact: Christian Schaffalitzky - Managing Director Tel: + 44 (0) 20 7976 1222 Laurie Beevers - WH Ireland Tel: + 44 (0) 161 819 8724 Alan Piper - First City Financial Public Relations Tel: + 44 (0) 20 7436 7486 + 44 (0) 7050 203 304 CONSOLIDATED PROFIT AND LOSS ACCOUNT For the year ended 31 December 2002 Unaudited 2002 2001 £ £ Administrative expenses (350,223) (433,906) Termination payment to former director - (75,000) Impairment of assets (667,760) (101,782) Total administrative expenses (1,017,983) (610,688) Operating loss (1,017,983) (610,688) Net interest (payable) / receivable & (508,381) 108,291 similar items Loss on ordinary activities before taxation (1,526,364) (502,397) Taxation - - Loss on ordinary activities after taxation (1,526,364) (502,397) Minority interest 16,281 (1,621) Retained loss for the financial year (1,510,083) (504,018) Loss per share (3.82)p (1.57)p All amounts relate to continuing activities. There is no difference between the historical cost profits and losses and the profits and losses as presented in the profit and loss account above. CONSOLIDATED BALANCE SHEET At 31 December 2002 Unaudited 2002 2001 £ £ Fixed assets Tangible - Exploration, development and 2,583,316 2,988,423 production interests Tangible - Other 110,740 129,381 Investments 1,231 68,631 Total fixed assets 2,695,287 3,186,435 Current assets Debtors 147,866 124,495 Cash at bank 74,786 333,784 Total current assets 222,652 458,279 Creditors - amounts falling due within one year (531,820) (830,710) (including convertible loan stock) ____________ ____________ Net current (liabilities)/assets (309,168) (372,431) Total assets less current liabilities 2,386,119 2,814,004 Creditors - amounts falling due after more than one year (99,675) (110,263) (including convertible loan stock) Net assets 2,286,444 2,703,741 Capital and reserves Called-up share capital 2,338,575 1,810,986 Share premium account 6,826,671 6,573,225 Capital redemption reserve 3,539,906 3,539,906 Profit and loss account (10,418,862) (9,237,361) Equity shareholders' funds 2,286,290 2,686,756 Minority interest 154 16,985 2,286,444 2,703,741 CONSOLIDATED CASH FLOW STATEMENT For the year ended 31 December 2002 Unaudited 2002 2001 £ £ Net cash flow from operating activities (373,367) (396,360) Returns on investments and servicing of 2,393 11,885 finance Capital expenditure and financial (414,444) (590,757) investment ____________ ____________ Cash outflow before use of liquid (785,418) (975,232) resources and financing Financing Issue of ordinary shares 526,420 804,750 (Decrease) in cash in the period (258,998) (170,482) Reconciliation of net cash flow to movement in net debt (Decrease) in cash in the period (258,998) (170,482) Change in net debt resulting from cash (258,998) (170,482) flows Translation difference 49,551 (31,797) Conversion of loan stock to equity 231,615 302,731 Movement in net debt in the period 22,168 100,452 Net debt at 1 January 2002 (346,505) (446,957) Net debt at 31 December 2002 (324,337) (346,505) Notes 1. The financial information set out above does not constitute the Company's statutory accounts for the years ended 31 December 2002 or 2001. The financial information for 2001 is derived from the statutory accounts for 2001, which have been delivered to the registrar of companies. The auditors have reported on the 2001 accounts; their report was unqualified and did not contain statements under section 237(2) or (3) of the Companies Act 1985. The statutory accounts for 2002 will be finalised on the basis of the financial information presented by the directors in this preliminary announcement and will be delivered to the registrar of companies following the Company's annual general meeting. 2. The financial information has been prepared under the historical cost convention and in accordance with applicable accounting standards. In common with many exploration companies, the Company raises finance for its exploration and appraisal activities in discrete tranches to finance its activities for limited periods only. Further funding is raised as and when required. The Directors are of the opinion that the Company will require to raise additional financial resources to enable the Group to undertake an optimal programme of exploration and appraisal activity over the next twelve months. Accordingly, the Directors intend either to raise further funds or to engage an additional funding partner as appropriate during the course of the next twelve months. In addition, the Company has convertible debt which falls due for repayment in October 2003. To the extent to which it is not converted into Shares, some or all of such debt may therefore fall to be repayable in cash. The Company may require additional funding at such time to meet any cash repayment. Whilst the Directors are confident that the Group will be able to secure additional funding to enable it to continue to meet its debts as they fall due and to undertake the programme described above for at least the next twelve months from the date of approval of these financial statements, there can be no guarantee that this will be the case. The financial statements do not include any adjustments, particularly in respect of tangible fixed assets, stocks, investments, loans and provisions for winding up which would be necessary if the Company and Group ceased to be an ongoing concern. 3. Reconciliation of operating loss to operating cashflows 2002 2001 £'000 £'000 Operating loss (1,018) (611) Depreciation and impairment charges 675 118 Profit on disposal of tangible fixed assets (7) - (Increase) in debtors (23) (29) Increase in creditors - 126 Net cash outflow from operating activities (373) (396) 4. Copies of the Annual Report and Accounts for the year ended 31 December 2002 will be posted to the shareholders by 31 May 2003 and will be available, free of charge from the Company's registered office at 14-16 Regent Street, London SW1Y 4PH for a period of 14 days from the date of their posting. This information is provided by RNS The company news service from the London Stock Exchange

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