Interim Results

Eurasia Mining PLC 22 September 2004 Eurasia Mining PLC Interim Report 2004 Interim Statement • Work commences on the Kola properties • Drilling continues on the Bedrock PGM • Drilling commences on Kliprivier The first half of the year was one of consolidation, with steady progress made in both Russia and South Africa. In Russia, the Kola project in the North West remains the company's key PGM project for the future, while we wait for resolution of the licensing issues on our alluvial feasibility project in the Central Urals. In South Africa, we were issued with our Kliprivier permit and successfully completed the first phase of drilling. Russia In North-western Russia all three of the platinum group metal (PGM) licence areas that we applied for on the Kola Peninsula have now been issued, although we have yet to finalise the legal agreements and complete the licence acquisition. The company is delighted with these three project areas, centred as they are in a new area showing considerable promise for PGM mineralization. We believe that these projects are unique in the grade potential they present at this stage of exploration compared to many other areas of the world. We look forward to a fruitful exploration program in the region. Work has already started on two areas, Volchetundra and West Imandra. At Volchetundra, new trenching work has identified ore grades of 4.7 grams per tonne (g/t) of platinum, 4.6g/t of palladium and 2g/t of gold over a thickness of 2.6 metres with 0.7g/t of PGMs over a thickness of 10 metres. The area covers a major intrusion with a strike length of 40 kilometres. The 229 square-kilometre West Imandra licence covers a large intrusion hosting important layered units of chromitite towards its base and magnetite with anorthosite towards its top; both are often associated with PGM mineralization. A drill hole on a chromitite unit has assayed platinum at 1g/t. A recent trench on anorthosite below the magnetite layers gave 2.94g/t of PGMs over a 1 metre-thick zone. The third licence area on the Monchetundra intrusive was the most recently granted. Here the prospects are more advanced, with four PGM bearing horizons identified. These horizons extend over a strike length of up to six kilometres where drilled, but the drill spacing is too far apart to provide resource estimates at this stage. The grades vary in each horizon from wider low grade to narrower high-grade intervals. A full report will be released as soon as the acquisition has been completed. Also in Russia, further work continued on our Bedrock PGM program in the Central Urals. The summer drilling is near completion at the Kluevsky prospect where a palladium gold target is being appraised. Results are expected shortly. Further east on the Baranchinsky licence a new platinum anomaly identified in soil geochemistry is being assessed. At the same time, we continued to appraise new prospects on the nearby Anglo Platinum Joint Venture Project, while we wait for resolution of our West Kytlim licence re-submission. The Company is ready to commence a feasibility study on this area, as well as test mining. The company is frustrated at the delays resulting from these administrative issues but is working hard for a resolution in the near future. Elsewhere in Russia the company continues to appraise more advanced gold opportunities and progress has been made which could lead to an acquisition in the near future. South Africa The Kliprivier permit was awarded to the company just before Christmas 2003 and a drill program was planned to assess the potential of the area. Two drill holes were completed during the half year to test two basinal structures identified from geophysics and geological mapping. The UG2 reef was intersected in both holes. The first hole on the northern basin intersected two zones from 854m depth that gave assays of 2.64 g/t Pt+Pd over 0.7m whilst the lower zone over 0.5m from 866.8m assayed 2.1g/t Pt+Pd. The drill hole also intersected the Merensky Reef at a depth of 778m, 0.69m of which gave assays averaging 9.5 g/t Pt+Pd. The drill hole on the southern basin intersected the UG2 reef at a depth of 715m, again with two zones giving significant grades, with a 1m zone from 716m grading 1.87 g/t Pt+Pd, while a lower zone from 728m graded 3.73 g/t Pt+Pd over 0.57m. The drilling confirmed the presence of the two projected basins and intersected the reefs at the expected depths. It also establishes that the UG2 occurs across the full width of the property. The objective is now to trace the UG2 at its sub-outcrop and shallow depth extensions to determine the open pit potential. An exploration permit was recently awarded for the Doornbosch farm on which Eurasia has an option agreement with Randgold. A drill program to test the UG2 reef is planned. In conclusion, your company, through the acquisition of three key projects in an important new PGM district on the Kola Peninsula, combined with a renewed parallel focus on gold is continuing its strategy of accelerating and expanding its activities throughout Russia. In the light of this the company is actively reviewing its strategy in South Africa as it is clear that precious metals in Russia will play an increasingly important role in the future development of the company. John Mitchell Chairman 22 September 2004 Consolidated Balance Sheet As at 30 June 2004 30 June 31 December 2004 2003 (unaudited) (audited) £ £ __________ ___________ Fixed assets Tangible - Exploration, development and production 2,900,930 2,803,835 interests Tangible - Other 95,975 94,320 Investments 1,097 1,108 __________ ___________ Total fixed assets 2,998,002 2,899,263 __________ ___________ Current assets Debtors 196,732 85,662 Cash at bank 392,691 1,005,632 __________ ___________ Total current assets 589,423 1,091,294 Creditors - amounts falling due within one year (231,532) (225,959) __________ ___________ Net current assets 357,891 865,335 __________ ___________ Total assets less current liabilities 3,355,893 3,764,598 Creditors - amounts falling due after more than one year (88,783) (89,638) __________ ___________ Net assets 3,267,110 3,674,960 __________ ___________ Capital and reserves Called-up share capital 4,210,586 4,210,586 Share premium account 7,092,374 7,092,374 Capital redemption reserve 3,539,906 3,539,906 Profit and loss account (11,556,609) (11,150,416) __________ ___________ Equity shareholders' funds 3,286,257 3,692,450 Minority interest (19,147) (17,490) __________ ___________ 3,267,110 3,674,960 __________ ___________ Notes: 1 No dividend is proposed in respect of the period. 2 The results for the period are derived from continuing activities, with the exception of an impairment provision in respect of the Ametistovoye project. 3 The calculations of loss per share have been based on the retained loss after taxation for the period and on a weighted average of 84,211,717 ordinary shares in issue during the period. 4 The unaudited results have been prepared on a going concern basis and on the basis of the accounting policies adopted in the audited accounts for the year ended 31 December 2003. 5 The interim report is unaudited and does not constitute Statutory Accounts as defined in section 240 of the Companies Act 1985. A copy of the Group's 2003 Statutory Accounts has been filed with the Registrar of Companies. The auditors' opinion on these Statutory Accounts was unqualified. 6 The Interim Report for the six months to 30 June 2004 was approved by the Directors on 21 September 2004. Consolidated Profit and Loss Account For the six month period ended 30 June 2004 6 month period 6 month period 12 month period to 30 June to 30 June to 31 December 2004 2003 2003 (unaudited) (unaudited) (audited) £ £ £ ______________ ______________ _______________ Administrative expenses (325,748) (243,841) (472,406) Impairment of assets (71,941) - (52,337) ______________ ______________ _______________ Total administrative expenses (397,689) (243,841) (524,743) ______________ ______________ _______________ Loss from continuing activities before (397,689) (243,841) (524,743) interest Net Interest (payable) / receivable & similar items Net Interest receivable 10,079 222 649 Foreign exchange loss (8,575) (133,997) (103,934) ______________ ______________ _______________ Loss on ordinary activities before taxation (396,185) (377,616) (628,028) ______________ ______________ _______________ Taxation - - Loss on ordinary activities after taxation (396,185) (377,616) (628,028) Minority interest 1,657 3,741 18,563 ______________ ______________ _______________ Retained loss for the period (394,528) (373,875) (609,465) ______________ ______________ _______________ Loss per share (0.47)p (0.72)p (1.01)p ______________ ______________ _______________ Consolidated statement of total recognised gains and losses For the six month period ended 30 June 2004 6 month period to 12 month period to 30 June 2004 31 December 2003 (unaudited) (audited) £ £ ________________ ______________ Loss for the period (394,528) (609,465) Exchange adjustments on foreign currency net investments (11,665) (122,089) ________________ ______________ Total recognised gains and losses for the financial year (406,193) (731,554) ________________ ______________ Directors J A Mitchell (Non-Executive Chairman) M P Martineau (Executive Deputy Chairman) C Schaffalitzky (Managing Director) W B Anderson (Operations Director) G C Fitzgerald (Non-Executive Director) Secretary M J de Villiers Head Office and Registered Office 14-16 Regent Street London SW1Y 4PH Telephone 44 (0)20 7976 1222 Facsimile 44 (0)20 7976 1422 Email info@eurasia-mining.plc.uk Web Site www.eurasia-mining.plc.uk Russian Office 194 Lunacharsky Street Ekaterinburg, Russia Telephone 7 3432 615187 Facsimile 7 3432 615924 ADVISERS Auditors KPMG Audit Plc 8 Salisbury Square London EC4Y 8BB Solicitors Eversheds Senator House 85 Queen Victoria Street London EC4V 6JL Bankers National Westminster Bank Plc 7th Floor, 280 Bishopsgate London EC2M 4RB Stockbrokers and Nominated Adviser W H Ireland Limited 62-64 Cannon Gate House Cannon Street London EC4N 6AE and 11 St James's Square Manchester M2 6WH This information is provided by RNS The company news service from the London Stock Exchange

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