Final Results

Jubilee Platinum PLC 03 November 2006 3 November 2006 Jubilee Platinum Plc ('Jubilee' or 'the Company') PRELIMINARY RESULTS FOR THE YEAR TO 30 JUNE 2006 Highlights: • Tjate project in South Africa consistently returns exceptional drilling results • Projects in Madagascar show potential for large Nickel/Copper/PGM deposits • Jubilee in US$5 million Joint Venture with Impala Platinum • Jubilee well funded with cash reserves of £5.7 million to meet current project demands POST YEAR END HIGHLIGHTS: • Jubilee in US$10 million Joint Venture with TransAsia Minerals Commenting on the results, Jubilee Platinum's Chief Executive Officer Colin Bird said; 'The past year has been one of significant progress for Jubilee. The results from the Tjate project continue to impress and we are very pleased with this key position within the Bushveld Complex, the most important source of platinum worldwide. Our joint venture partnerships will serve to further accelerate our exploration and development programmes in Madagascar and confirm our belief in the prospectivity that Madagascar has to offer. We look forward to building on and furthering our achievements in the coming year.' For further information please contact: Colin Bird Cathy Malins / Annabel Leather Jubilee Platinum plc Parkgreen Communications Ltd Tel +44 (0) 20 7584 2155 Tel +44 (0)20 7493 3713 Chairman's Report Dear Shareholder The Company has had a very eventful year with significant progress made in all areas. Important Joint Venture agreements have been concluded, exploration projects have advanced and a £1.5 million convertible note has been provided by a leading London based resource finance institution. The Company's flagship property, Tjate, has consistently yielded exceptional drilling results and is now progressing towards pre-feasibility study. The current exploration projects in Madagascar are at varying stages of development but show significant potential for large Nickel/Copper/PGM deposits, mineable from surface. We are happy to have cemented our presence in Madagascar, an under-explored country which appears to be showing a propensity for large scale bulk-metal projects. During the period under review the Company lost £498,978 (2005 - £299,855) and £1,125,800 was capitalised on exploration projects. This loss represents 0.67p per share against 0.46p in 2005. Platinum group and base metal prices have been very strong during the year and have highlighted the need for new discoveries. Your board has noted that joint venture and corporate activity is not confined to major mining companies but has extended to consumers and countries anxious to secure strategic stakes in future metal production. Jubilee continues to seek out new opportunities which will enhance its South African position in the platinum-rich Bushveld Complex; the objective being to secure 'bankable' PGM ounces to meet rising demand. The competition is understandably intense but Jubilee has developed credibility over the last four years and is now strongly positioned to take advantage of any opportunities. Jubilee has a joint venture with Impala Platinum Holdings on its Ambodilafa project in Madagascar where drilling has commenced. The Company recently announced a significant US$10 million joint venture with TransAsia Minerals - an emerging Indonesian based resource company - on its Londokomanana and Itsindro projects in Madagascar. Mindful of equity dilution these joint ventures have the effect of limiting new share issues and are aimed at sharing the early risk of exploration with companies who have the financial strength to build new mines. The Company is well funded to meet its current objectives and progress its portfolio of exploration and development projects. Finally, I would like to thank my fellow directors, management, operational staff and consultants for their tireless efforts in a busy but successful year. Malcolm Burne Chairman Operations Review 2005-2006 South Africa Tjate Project During the year under review, Jubilee continued to focus exploration efforts on its flagship Tjate property. On the Dsjate farm the Company drilled four boreholes DT4, DT5, DT6 and DT7 and fourteen wedge offshoot holes with a combined total of 3,669 metres. All four borehole results showed good grades and reef thicknesses that were consistent with the previous three boreholes DT1, DT2 and DT3. The Company is to start a second phase of drilling in the third quarter 2006 towards delineating a resource estimate. The Dsjate farm is one of three contiguous farms in the Tjate property, which comprises of an area totalling 5,143 hectares. The farms are immediately down dip of Anglo American's Twickenham Mine and Impala Platinum's Marula Mine on the Winnaarshoek farm. The entire project area has an exploration target of 65 million oz of 5 PGE (platinum group elements) and gold. The Company is presently engaged in a comprehensive drilling programme on the property with the objective of defining a mineral resource. On 12 June 2006, the Department of Minerals and Energy approved the conversion of Tjate Platinum Corporation's old order prospecting right to a new order prospecting right under the Mineral and Petroleum Resources Development Act (No. 28 of 2002). Tjate Borehole Results Weighted averages Borehole Reef Reef Depth Reef Thickness 4E Pt Pd g/t Rh g/t Au g/t Ni Cu % Pt:Pd m cm * g/t g/t % ratio DT1 Merensky 868 80 6.55 3.77 2.08 0.18 0.52 0.29 0.16 1.8 UG2 1248 93 6.01 2.80 2.51 0.60 0.10 n.a. n.a. 1.1 DT2 Merensky 722 81 3.57 2.11 1.11 0.11 0.23 0.20 0.11 1.9 UG2 1103 95 8.01 3.42 3.75 0.70 0.14 n.a. n.a. 0.9 DT3 Merensky 900 82 5.24 3.10 1.61 0.14 0.39 0.29 0.17 1.9 UG2 1290 82 7.49 3.55 3.08 0.70 0.16 n.a. n.a. 1.2 DT4 Merensky 685 80 6.53 3.66 2.22 0.17 0.48 0.27 0.15 1.6 UG2 1077 85 7.60 3.10 3.66 0.72 0.12 n.a. n.a. 0.8 DT5 Merensky 772 90 3.86 2.98 0.49 016 0.23 0.07 0.05 1.6 DT6 Merensky 812 80 12.82 7.32 4.17 0.31 1.02 0.46 0.27 1.7 DT7 Merensky 723 82 7.08 3.99 2.31 0.19 0.59 0.21 0.12 1.7 Total Merensky 82 6.47 3.83 1.97 0.18 0.49 0.25 0.15 1.9 Total UG2 89 7.21 3.2 3.2 0.68 0.13 n.a. n.a. 1.0 *Apparent thickness 4E (Pt Pd Rh Au) n.a. not applicable Madagascar Londokomanana Project This project is located in the Londokomanana region in central northern Madagascar, some 165 kilometres north of the capital Antananarivo. The Company holds exploration licences for two contiguous properties: 1) Londokomanana (the northern part) under Exploration Licence PR (Permis Recherche) no. 5103 and; 2) Lavatrafo (the southern part) under Exploration Licence PR no. 10175. Londokomanana Property This property includes the ultrabasic (pyroxenite/dunite) formations: Antsahabe (centre of the property), Mavoandro (to the north of the property) and Antsatratakona, some 3 kilometres to the east of Mavoandro. During the year under review, the Company drilled borehole ANT1 (results tabled below) in Antsahabe, in an area of coincident geochemical and geophysical anomalies. The borehole intersected near surface an aggregated 48-metre thick near-vertical mineralised structure grading 0.62% nickel and 0.13% copper. Borehole ANT1 Results Intersection From To Thickness Nickel Copper metres metres metres* % % metres Total 17.2 44.5 27.3 0.64 0.13 including 20.9 41.4 20.5 0.78 0.15 including 21.5 29.5 5.0 1.05 0.22 including 30.5 35.6 5.1 1.16 0.10 including 33.6 34.6 1.0 2.09 0.14 Total 54.8 71.8 17.0 0.60 0.12 including 60.1 68.1 8.0 0.89 0.16 including 60.1 61.8 1.7 2.07 0.08 Total 77.2 80.9 3.7 0.58 0.12 including 80.4 80.9 0.5 0.14 0.32 Aggregate Total 17.2 80.9 48.0 0.62 0.13 *Apparent thickness Parallel with this drilling, the Company commissioned a dipole-dipole ('DPDP') geophysics survey (useful in identifying structures at depth) over the area concurrent with geochemical soil sampling. The area covered, included lateral relative high and low chargeability areas delineated from an earlier gradient array geophysics survey. The survey identified relative high chargeability response zones at depth, some coincident with geochemical anomalies and some not. The lateral relative low chargeability areas were associated with the ultrabasic formations. The lateral high chargeability responses could not be associated with the basic lithologies and were interpreted both laterally and at depth to be associated with possibly disseminated sulphides. The Company drilled a number of boreholes to test this interpretation. No significant sulphides were intersected and the interpretation proved to be incorrect. The applicability of DPDP geophysics as a tool for exploration in this geological environment was therefore considered inadequate. The Company subsequently focused on utilising geochemical soil sampling to delineate mineralised corridors (see Lavatrafo below) in Antsahabe and the Mavoandro- Antsatratakona formations further to the north. Antsatratakona features significant airborne geophysical electromagnetic ('E-M') anomalies identified in the 1960s. Since the year end, the Company entered into a joint venture Project Agreement with TransAsia Minerals Limited ('TransAsia'), a subsidiary private company of Indonesian based TransAsia Resources PT Group. TransAsia has acquired a 51% interest in the Londokomanana and Itsindro properties for a commitment to fund US$10 million on exploration over three years. TransAsia is an aggressive multi-commodity group with ambitions for growth in nickel production. Lavatrafo Property Exploration in the year under review included archival research, mapping, soil sampling, geophysics and drilling. Archival research and mapping uncovered several significant new extensions to the ultrabasic formations on Lavatrafo including two key new targets Amboasary and Ranomena. Lavatrafo Formation The Company carried out a geophysical survey, utilising induced polarisation (' IP') gradient array and DPDP methods, similar to that reported above for Londokomanana. The survey identified areas and zones of similar relative high and low chargeabilities both laterally and at depth. Again the lateral relative high chargeability areas were interpreted to be associated with possibly disseminated / massive sulphides and hence an alternative model for drilling. The Company initially drilled two boreholes LAV1 and LAV2A (results tabled below) within a relative low chargeability area associated with ultrabasic lithology and coincident with geochemical anomalies. The drilling results showed near-surface wide Ni-Cu-PGM mineralisation with indicated viable economic metal values for open pit mining. The Company then drill tested the alternative high chargeability DPDP model. No sulphide mineralisation was intersected in the high chargeability zones. This confirmed the inadequacy of the DPDP tool for exploration and demonstrated conclusively that soil geochemistry presents the optimum exploration approach in this geological environment. Nevertheless, the gradient array data generated from the survey complemented the Company's conventional ground mapping, since outcrop is relatively sparse in the area. The Company subsequently reverted to geochemical soil sampling to establish 'mineralised corridors' (trends along strike of anomalous copper and nickel values) in all the ultrabasic formations. Borehole LAV7, located some 1.5 kilometres south of and along strike from LAV1, was the first borehole targeted at a 4-kilometre long mineralised corridor established in the Lavatrafo formation. The borehole intersected 19m (apparent) width of PGE (platinum group elements), Ni and Cu mineralisation 35m down the hole (25m vertical depth). This result (see table below) supported the mineralised corridor model. More boreholes are targeted for drilling in this corridor in the coming season. Borehole Results: Borehole LAV1 Intersection From To Thickness* Nickel Copper 3E** metres metres metres % % g/t Total 37.7 108.4 70.7 0.23 0.11 1.05 including 72.8 108.4 35.7 0.31 0.19 0.99 including 89.4 108.4 19.1 0.34 0.20 1.05 including 75.3 83.5 8.3 0.32 0.23 1.15 including 102.3 108.4 6.1 0.47 0.24 1.02 * Apparent thickness ** 3E = platinum palladium gold Borehole LAV2A Intersection From To Thickness* Nickel Copper 3E** metres metres metres % % g/t Total 72.4 164.1 91.7 0.26 0.14 0.66 including 82.4 162.1 79.7 0.29 0.16 0.73 including 115.0 158.8 43.8 0.40 0.25 0.80 including 136.1 156.2 20.1 0.52 0.33 0.92 * Apparent thickness ** 3E = platinum palladium gold Borehole LAV7 Intersection From To Thickness* Nickel Copper 3E** metres metres metres % % g/t Total 35.6 54.6 19.0 0.18 0.21 0.53 Including 35.6 43.2 7.6 0.16 0.15 0.82 Including 41.2 44.2 3.0 0.27 0.19 1.13 Including 45.2 46.0 0.8 0.21 1.03 0.71 Including 42.2 43.2 1.0 0.33 0.30 1.61 Including 52.5 53.5 1.0 0.20 1.05 0.17 * Apparent thickness ** 3E = platinum palladium gold Ranomena Formation The Ranomena formation is located in the southern section of Lavatrafo, some 8 kilometres south-south-west of the current Lavatrafo formation working area. The Company reopened, deepened and resampled four trenches (C1 to C4 - results tabled below), which had been mapped previously as part of a 'platinoide' mission carried out in the 1990s. High PGM and nickel mineralisation values were obtained across trench lengths of up to 60 metres, particularly in C3 which included 8 metres @ 0.92g/t 2E (Pt,Pd) and 0.36% Ni and two 1-metre intervals @ 1.38 g/t 2E and 1.68 g/t 2E. The data suggested an immediate drilling target, which is currently being drilled. Trench results: Trench sampled 2E* g/t Pt Pd Nickel Copper metres g/t g/t % % C1 Total 26 0.4 0.23 0.17 0.19 0.06 Including 2 0.58 0.30 0.28 0.20 0.12 Including 2 0.61 0.40 0.21 0.18 0.06 Including 2 0.51 0.33 0.18 0.44 0.18 C2 Total 60 0.27 0.15 0.12 0.18 0.02 Including 3 0.90 0.31 0.57 0.78 0.18 C3 Total 16 0.64 0.32 0.31 0.27 0.08 including 8 0.92 0.47 0.43 0.36 0.12 including 1 1.38 0.86 0.52 0.44 0.18 including 1 1.68 0.91 0.74 0.11 0.08 C4 Total 30 0.14 0.07 0.08 0.34 0.1 including 2 0.30 0.13 0.13 0.53 0.13 *2E platinum and palladium Amboasary Formation In Amboasary, geophysical E-M anomalies were mapped in the 1960s and there appeared to have been little follow-up exploration on these anomalies. This marks Amboasary as a highly prospective target for further exploration. A programme of soil sampling has commenced and will be followed up with time-domain electromagnetics ('TDEM') survey. Ambodilafa Project The Ambodilafa Licence is located some 200 kilometres south-south-east of Antananarivo and covers some 194 square kilometres. The area includes the 56-square kilometre Vohipaha basic and ultrabasic gabbroic intrusive system, at the southern end of which lies the eight square kilometre Ambodilafa project. Regional reconnaissance drilling in the area in 1969 included an intersection of 93 metres of disseminated sulphides, containing pyrrhotite, pentlandite (nickel ore mineral) and chalcopyrite (copper ore mineral). The intersection included a 1.5 metre intercept assaying 2.2% Ni and 0.35% Cu. Later stream sediment sampling in 1990 defined several drainage catchments in the area, which showed anomalous platinum and palladium values. This earlier drilling, which followed geochemical anomalies, was carried out generally to the west of a significant geophysical E-M anomaly. A helicopter-borne Versatile Time-Domain Electromagnetics ('VTEM') survey was carried out over this area. The survey identified a strong anomaly consisting of a flat lying circular feature some 80 metres below surface with an estimated thickness of up to 40 metres. Following this highly promising result, the Company entered into an option agreement with Impala Platinum Holdings ('Implats '), whereby Implats was granted the sole and exclusive right and option to acquire an undivided 51% interest in the Ambodilafa property by funding a total of US$5,000,000 for exploration. The Company successfully secured an environmental permit to carry out phase one exploration and drilling commenced on 18 September 2006. Lanjanina Project Lanjanina is located in south-central Madagascar some 180 kilometres south of Antananarivo. It represents some 7 kilometres of strike length and lies at the southern end of the 30-kilometre long basic-ultrabasic Itsindro Intrusive. Following a review of a previous IP geophysical survey and soil sampling data, the Company continued with further infill soil sampling and IP and DPDP surveys over those areas, which showed significant copper and nickel geochemical anomalies. The DPDP surveys indicated several sub-vertical high chargeability units which were generally coincident with these geochemical anomalies. These units were selected for preliminary scout drilling of three boreholes. The boreholes intersected semi-massive and massive sulphides, predominantly pyrrhotite, but the nickel and copper values overall were generally disappointing, although some individual samples returned encouragingly high values of up to 0.9% Ni and 0.6% Cu. Lanjanina remains highly prospective. Sierra Leone York Platinum Project Jubilee is in joint venture (80% interest and manager) with AIM-listed Golden Prospect plc (20% interest) on this 105.3 square kilometre York Platinum project in Sierra Leone. The project is located around the village of York some 37 kilometres south of the capital Freetown. No field exploration was carried out on the project during the year. The Company instead focused on a review of the previous year's exploration data in order to develop an effective programme for the next phase of exploration, which is anticipated to include geophysics followed up by preliminary drilling. The licence covers the central part of the Freetown Layered Gabbro Complex. This is a layered sequence of gabbroic and troctolitic rocks with some of the cyclical units having anomalous platinum, palladium, chromium, vanadium, nickel and copper mineralisation. Previous exploration by the Company and others have traced this mineralisation, with anomalous geochemical sampling platinum values of up to 0.84g/t over a strike length of 8.5 kilometres. This exploration also discovered a new parallel reef-like horizon two kilometres to the east over a strike length of 1.2 kilometres and which remains open ended. A new trench yielded up to 0.44 g/t platinum in highly weathered, laterised rock, while soils showed anomalous values of up to 0.35 g/t platinum. Other Projects Houtenbek (97JT) and Mapochsgronde (500JS) The Houtenbek and Mapochsgronde properties are located in the southern sector of the eastern Limb of the Bushveld Complex. The Company, through its subsidiary Dullstroom Plats (Pty) Ltd applied for new order prospecting rights, having held old order rights on both properties. The DME did not grant the rights and the Company is appealing against this decision. Grasvally (293KR) The Company entered into a 70% earn-in agreement with MSA Projects on their Grasvally property subject to the property being granted a converted new order prospecting right. This conversion right was granted on 22 August 2006. The 663-hectare Grasvally property, which represents the last currently known and untested block of Platreef ground in the Bushveld, is situated just south of Mokopane (formerly Pietersburg), squarely between the Platinum Group Metals' War Springs deposit, Caledonia's Rooipoort deposit and the Pan Palladium Volspruit deposit. Approximately 5 kilometres of potential Platreef outcrop have been identified through a geochemical soil-sampling programme undertaken by MSA during 2004. A comprehensive diamond-drilling programme was designed to drill test these anomalies and form the basis of initial resource estimates. The initial phase of diamond drilling commenced on 17 September 2006. The Platreef is a wide platinum-bearing reef occurring along approximately 100 kilometres of outcrop on the northern limb of the Bushveld Complex. This open-pittable reef zone has been the focus of significant and well publicised exploration during the past five years, with several major and junior mining companies having embarked on extensive and successful drilling programmes in the zone. One of the major benefits of this wide reef zone is that, in addition to significant contained platinum and palladium, there is also substantial associated nickel and copper credits, making the Platreef an exciting, low-cost, polymetallic prospect. Bokfontein (448QT) and Elandsdrift (467JQ) The Company carried out a geologic assessment with some limited percussion drilling of the Bokfontein and Elandsdrift farms near Brits in the western Bushveld to test a postulated occurrence of a split UG2 type reef on the properties, which lie up dip of the known UG2 outcrop in the area. On Bokfontein, a low grade chromitite reef, which the Company believes strongly to be UG1 reef, was intersected at shallow depth. On Elandsdrift no reef was intersected. The postulated split UG2 theory was not proven and further work is not contemplated on these small acreage properties. Buffelsvlei (170JS)/Zaaiplaats (150JS) New order prospecting rights were granted for the Buffelsvlei/Zaaiplaats farms, which are located near Groblersdal in the eastern sector of the Bushveld Complex. The property is contiguous to and east of the Blaauwbank ('Blue Ridge ') farm on which Ridge Mining is developing its Blue Ridge Cu-Ni-PGM project. The project area is bisected by the Steelpoort fault. The Company commissioned a geologic appraisal of the prospectivity of these farms for similar PGM occurrences and formations to those which underpin the Blue Ridge property. The appraisal concluded that the risk rating for PGM exploration of the Buffelsvlei - Zaaiplaats project area is medium to high risk. Test drilling is scheduled for next year. Salliesloot (718KS)/Zwartkop (720KS) New order prospecting rights were granted in respect of the properties Salliesloot/Zwartkop and in which Jubilee is in an unincorporated joint venture 80% with the prospecting right holder Ex Terra (Pty) Ltd 20%. The Salliesloot/Zwartkop farms, near Marble Hall in the eastern sector of the Bushveld Complex are located on the northern limit of a 'tongue' of Transvaal Supergroup ('TS') rocks, which have been brought (domed) to the surface. The TS classically underlies the Bushveld complex and the anomalous occurrence of these rocks in the area has led to a model postulating that the Critical Zone of the Bushveld Complex may have been brought within accessible mining depths in the area by the above doming event. Rocks with petrographic similarities to those from Main Zone, which classically lie above the Critical Zone, have been recorded and mapped historically as being present in the area. The Company drilled a lithological scout borehole to 476 metres and intersected generally fine-grained hornfels (thermally metamorphosed sediments of the TS) but not Main Zone lithology. The Company is reviewing this model and historical map data, which suggest that the hole may have been up dip of two plotted norite outcrops and that a second hole, if deemed appropriate, should be located to the north of the drilled borehole. However, since drilling to 800 metres or more may be necessary to support or otherwise this geologic model, the Company is focussing in the short term on its other more prospective and advanced projects. ON BEHALF OF THE BOARD C Bird Chief Executive Officer 2 November 2006 JUBILEE PLATINUM PLC CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 30 June 2006 Year ended Year ended 30 June 30 June 2006 2005 Note £ £ Administrative expenses (827,528) (558,563) Operating loss (827,528) (558,563) Interest receivable and similar income 282,916 230,401 Interest payable (51,025) - Share of operating loss in associate 10 (25,110) (5,903) Loss on ordinary activities before taxation 1 (620,747) (334,065) Tax on loss on ordinary activities 4 - - Loss on ordinary activities after taxation (620,747) (334,065) Minority interests: Equity 121,769 34,210 Loss on ordinary activities attributable to members of Jubilee (498,978) (299,855) Platinum Plc Basic loss per share 6 (0.67p) (0.46p) Fully diluted loss per share 6 (0.65p) (0.45p) All of the Group's activities are classed as continuing. The accompanying accounting policies and notes form an integral part of these financial statements. STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES FOR THE YEAR ENDED 30 June 2006 Year ended Year ended 30 June 2006 30 June 2005 £ £ Loss for the financial year (498,978) (299,855) Translation differences on foreign currency net investments (304,248) (233,320) Total recognised gains and losses for the year (803,226) (533,175) The accompanying accounting policies and notes form an integral part of these financial statements. CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2006 Year ended Year ended 30 June 2006 30 June 2005 Note £ £ Fixed assets Intangible assets 7 3,903,299 909,204 Tangible assets 8 51,634 24,513 Investment in associate 10 2,620,442 2,900,438 6,575,375 3,834,155 Current assets Debtors 11 537,349 195,122 Cash at bank and in hand 4,668,199 4,635,153 5,205,548 4,830,275 Creditors: amounts falling due within one year 12 (1,655,939) (1,374,244) Net current assets 3,549,609 3,456,031 Total assets less current liabilities 10,124,984 7,290,186 Minority interests Equity interests 95,925 43,929 10,220,909 7,334,115 Capital and reserves Called up share capital 13 786,489 699,228 Share premium account 14 11,859,073 8,256,314 Profit and loss account 15 (2,424,653) (1,621,427) Shareholders' funds 16 10,220,909 7,334,115 The financial statements were approved by the Board of Directors on 2 November 2006. C Bird Chief Executive Officer The accompanying accounting policies and notes form an integral part of these financial statements. COMPANY BALANCE SHEET AS AT 30 JUNE 2006 Year ended Year ended 30 June 2006 30 June 2005 Note £ £ Fixed assets Intangible assets 7 30,925 30,925 Tangible assets 8 1,649 2,889 Investments 9 3,426,212 388 3,458,786 34,202 Current assets Debtors 11 4,907,362 4,049,453 Cash at bank and in hand 4,266,303 3,681,894 9,173,665 7,731,347 Creditors: amounts falling due within one year 12 (1,621,297) (86,136) Net current assets 7,552,368 7,645,211 Total assets less current liabilities 11,011,154 7,679,413 Capital and reserves Called up share capital 13 786,489 699,228 Share premium account 14 11,859,073 8,256,314 Profit and loss account 15 (1,634,408) (1,276,129) Shareholders' funds 16 11,011,154 7,679,413 The financial statements were approved by the Board of Directors on 2 November 2006. C Bird Chief Executive Officer CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2006 Year ended Year ended 30 June 30 June 2006 2005 Note £ £ Net cash outflow from operating activities 17 (1,147,523) (869,591) Returns on investments and servicing of finance Interest received 275,812 230,401 Foreign exchange difference 279,996 9,925 555,808 240,326 Capital expenditure and financial investment Purchase of intangible fixed assets 7 (1,125,800) (596,807) Purchase of tangible fixed assets 8 (13,635) (24,669) (1,139,435) (621,476) Acquisitions and disposals Investment in associate - (2,906,977) - (2,906,977) Movement in liquid resources Funds placed on deposit (4,537,519) (4,079,481) Funds removed from deposit 4,079,481 3,050,000 (458,038) (1,029,481) Financing Increase in loans 19 1,500,000 1,224,233 Issue of shares and warrants 13 264,196 4,766,295 Expenses of share issues 14 - (310,218) 1,764,196 5,680,310 Increase in cash 18 (424,992) 493,111 The accompanying accounting policies and notes form an integral part of these financial statements NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2006 1 LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION The loss on ordinary activities is stated after: 2006 2005 £ £ Auditors' remuneration - statutory audit services 10,500 10,977 - tax compliance fees 1,500 1,500 Payments under operating leases - land and buildings 12,500 24,500 Depreciation 9,937 7,670 Foreign exchange gain 2,636 - 2 SEGMENTAL ANALYSIS The group has one business segment, that of mineral exploration. An analysis of loss on ordinary activities before taxation and net assets by geographical area is given below: 2006 2005 £ £ Profit/(loss) on ordinary activities (adjusted for minority interests) United Kingdom (110,042) (19,127) South Africa (321,461) (235,982) Madagascar (67,475) (44,746) (498,978) (299,855) Net assets United Kingdom 11,011,154 7,679,413 South Africa (684,562) (303,073) Madagascar (105,683) (42,225) 10,220,909 7,334,115 3 DIRECTORS AND EMPLOYEES Staff costs during the year were as follows: 2006 2005 £ £ Wages and salaries 227,804 225,457 Social security costs 23,830 21,962 251,634 247,419 Remuneration in respect of Directors was as follows: 2006 2005 £ £ Emoluments 139,833 134,118 Emoluments disclosed above include the following amounts paid to the highest paid director: 2006 2005 £ £ Emoluments 92,980 56,901 The average monthly number of employees during the year was seven (2005: 7) including the four Directors, none of whom (2005: None) participate in company pension schemes. 4 TAX ON LOSS ON ORDINARY ACTIVITIES 2006 2005 £ £ (620,747) (334,065) Loss for the year (186,224) (100,220) Loss for the year multiplied by standard rate of UK corporation tax 30% Effect of: UK expenses not deductible for tax purposes 2,538 4,630 Increase in UK tax losses - 71,104 South African losses at 30% 153,505 24,486 Other tax adjustments 30,181 - Tax charge - - Unprovided deferred tax asset: UK tax losses carried forward multiplied by standard rate of UK corporation tax 30%, recoverable only when the Company has generated taxable profits 239,576 239,576 5 PROFIT FOR THE FINANCIAL YEAR The Company has taken advantage of Section 230 of the Companies Act 1985 and has not included its own profit and loss account in these financial statements. The Company loss for the year was £44,287 (2005: £19,125). 6 LOSS PER SHARE The calculation of the basic loss per share is based on the loss for the financial year divided by the weighted average number of shares being 74,355,295 (2005:64,687,342) in issue during the year. The fully diluted loss per share is based on the loss for the financial year divided by the weighted average number of shares and potential shares being 76,411,257 (2005: 66,463,756) in issue during the year. 2006 2005 £ £ Ordinary shares 74,355,295 64,687,342 Effect of options issued at fair value 2,055,962 1,776,414 76,411,257 66,463,756 7 INTANGIBLE FIXED ASSETS Goodwill on Exploration The Group consolidation expenditure Total £ £ £ Cost At 1 July 2005 - 909,204 909,204 Foreign Exchange Adjustments - (80,473) (80,473) Additions 2,318,911 1,125,800 3,444,711 Amortisation (65,755) (304,388) (370,143) At 30 June 2006 2,253,156 1,650,143 3,903,299 The Company Exploration expenditure £ Cost At 1 July 2005 30,925 Additions - At 30 June 2006 30,925 8 TANGIBLE FIXED ASSETS The Group Office equipment £ Cost At 1 July 2005 35,866 Foreign exchange adjustments 23,423 Additions 13,635 At 30 June 2006 72,924 Depreciation At 1 July 2005 11,353 Charge for the year 9,937 At 30 June 2006 21,290 Net book amount at 30 June 2006 51,634 Net book amount at 30 June 2005 24,513 The Company Office equipment £ Cost At 1 July 2005 8,139 Additions 577 At 30 June 2006 8,716 Depreciation At 1 July 2005 5,249 Charge for the year 1,818 At 30 June 2006 7,067 Net book amount at 30 June 2006 1,649 Net book amount at 30 June 2005 2,889 9 FIXED ASSET INVESTMENTS The Company Shares in Shares in Group Group undertakings undertakings 2006 2005 £ £ Cost At 1 July 2005 388 273 Additions 3,425,824 141 Disposals - (26) At 30 June 2006 3,426,212 388 The Company issued 7,447,443 Ordinary 1p shares at 46p per share on 5 December 2005 to New Africa Mining Fund as consideration for acquiring the 12.52% minority interest in Windsor Platinum Investments (Pty) Ltd ('Windsor'). Windsor is now a 100% owned subsidiary of the Company. At 30 June 2006 the Company held more than 20% of the following subsidiary undertakings: Name of undertaking Country of Principal activity Proportion of equity capital incorporation held By the Company By the Group Dullstroom Plats (Pty) Ltd South Africa Mineral exploration 100% Maude Mining and Exploration (Pty) Ltd South Africa Mineral exploration - 65% Mineral Resources of Madagascar Sarl Madagascar Mineral exploration 85% - Windsor Platinum Investments (Pty) Ltd South Africa Mineral exploration 100% - Emanuel Mining and Exploration (Pty) Ltd South Africa Mineral exploration 90% - Mokopane Mining and Exploration (Pty) Ltd South Africa Mineral exploration 90% - 10 INVESTMENT IN ASSOCIATE Tjate Platinum Corporation (Proprietary) Limited 2006 £ Share of turnover - Share of operating loss for the year (25,110) Share of assets Share of current assets 2,290 Share of non-current assets 2,742,886 2,745,176 Share of liabilities Share of current liabilities 352 Share of non-current liabilities 124,382 124,734 Share of net assets 2,620,442 Jubilee Platinum plc owns 25% of the issued ordinary share capital of Tjate Platinum Corporation (Proprietary) Limited which is engaged in the exploration and exploitation of natural resources. The associate has an unsecured loan from Windsor Platinum Investments (Pty) Limited, a subsidiary within the Jubilee group, of £497,529 with no fixed repayment terms, bearing an interest rate of 2% above the prime lending rate. 11 DEBTORS Group Company 2006 2005 2006 2005 £ £ £ £ Amounts due from Group undertakings - - 4,888,092 4,010,748 Other debtors 532,871 176,324 14,792 21,656 Prepayments and accrued income 4,478 18,798 4,478 17,049 537,349 195,122 4,907,362 4,049,453 The loans to group members are unsecured and bear interest at base rate +2%. 12 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Group Company 2006 2005 2006 2005 £ £ £ £ Other loan - 1,274,325 - - Convertible loan notes 1,500,000 - 1,500,000 - Social security and other taxes - - - 5,297 Other creditors 63,966 24,839 30,188 7,981 Accruals and deferred income 91,973 75,080 91,109 72,858 1,655,939 1,374,244 1,621,297 86,136 On 27 January 2006, the Company issued £1,500,000 8% Convertible Loan Notes to City Natural Resources High Yield Trust Plc to assist with the funding of working capital costs of its exploration and development programmes in South Africa and Madagascar. The loan notes are convertible at the option of the holder at any time prior to the maturity date, after 12 months from the issue date at a price of £0.70 (conversion price) into approximately 2,142,857 Ordinary 1p shares in the Company. The loan notes will mature on 26 January 2010. After the initial 12 month period, if the 20-day average closing price of the Company's shares at any time attains £0.85 or more, the Company may call the Convertible Loan Notes for conversion into the Company's Ordinary shares at the conversion price. 13 SHARE CAPITAL Group and Company 2006 2005 £ £ Authorised 500,000,000 ordinary shares of 1p each 5,000,000 5,000,000 Allotted, called up and fully paid 786,489 699,228 78,648,974 (2005: 69,922,828) ordinary shares of 1p each The Company allotted 8,726,146 Ordinary 1p shares with an aggregate nominal value of £87,261 during the year as follows: Price Number of shares Aggregate Date of issue per share consideration £ - 12 December 2005 46p 7,447,443 3,425,824 - 7 March 2006 16p 470,000 75,200 - 7 March 2006 20p 30,000 6,000 - 31 March 2006 20p 646,600 129,320 - 31 March 2006 16p 4,144 663 - 31 March 2006 33p 48,485 16,000 - 31 March 2006 45p 74,474 33,513 - 31 March 2006 70p 5,000 3,500 8,726,146 3,690,020 The Company has granted options to subscribe for Ordinary 1p shares as follows: Date granted Period exercisable Exercise price Number of per share options (pence) 24 July 2002 24 July 2004 to 24 July 2012 16 1,770,000 24 October 2003 24 October 2005 to 24 October 2013 20 175,000 24 October 2003 24 October 2005 to 24 October 2013 28 100,000 9 February 2004 9 February 2004 to 9 February 2007 31 650,000 2 August 2004 2 August 2004 to 1 August 2009 20 646,600 20 December 2004 20 December 2006 to 20 December 2014 28 1,100,000 20 July 2005 20 July 2007 to 20 July 2015 38 110,000 1 March 2006 1 March 2006 to 1 March 2011 50 100,000 14 June 2006 14 June 2008 to 14 June 2016 75 15,000 20 April 2006 20 April 2008 to 20 April 2016 95 115,000 30 June 2006 30 June 2008 to 30 June 2016 85 1,200,000 1,278,703 options were exercised during the year. The highest and lowest price of the Company's shares during the year was 99.33p and 32.75p respectively. The share price at the year end was 69p. 14 SHARE PREMIUM ACCOUNT Group and Company 2006 2005 £ £ At 1 July 2005 8,256,314 4,007,864 Premium on allotments in the year 3,602,759 4,558,668 Expenses of share issues - (310,218) At 30 June 2006 11,859,073 8,256,314 15 PROFIT AND LOSS ACCOUNT Group Company £ £ At 1 July 2005 (1,621,427) (1,276,129) Profit/(loss) for the year (498,978) (44,288) Translation differences on foreign currency net investments (304,248) (313,991) At 30 June 2006 (2,424,653) (1,634,408) 16 RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS Group Company 2006 2005 2006 2005 £ £ £ £ Profit/(loss) for the financial year (498,978) (299,855) (44,287) (252,445) Foreign exchange difference (304,248) (233,320) (313,991) - Issue of shares (net of expenses) 3,690,020 4,456,078 3,690,020 4,456,078 Net increase in shareholders' funds 2,886,794 3,922,903 3,331,742 4,203,633 Shareholders' funds at 1 July 2005 7,334,115 3,411,212 7,679,412 3,475,780 Shareholders' funds at 30 June 2006 10,220,909 7,334,115 11,011,154 7,679,413 17 NET CASH OUTFLOW FROM OPERATING ACTIVITIES Group 2006 2005 £ £ Operating loss (827,528) (558,563) Depreciation 9,937 7,670 Amortisation of goodwill 65,755 - Amounts written off exploration expenditure 234,800 - Exchange movement (304,248) (233,320) Increase in debtors (356,547) (140,164) Increase in creditors 30,308 54,786 Net cash outflow from continuing operating activities (1,147,523) (869,591) 18 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS Group 2006 2005 £ £ Increase in cash in the year (424,992) 493,111 Increase in liquid resources 458,038 1,029,481 Increase in loans (225,675) (1,224,233) Increase in net funds (192,629) 298,359 Net funds at 1 July 2005 3,360,828 3,062,469 Net funds at 30 June 2006 3,168,199 3,360,828 19 ANALYSIS OF NET FUNDS Group 2006 Cash Movement 2005 £ £ £ Cash at bank 4,668,199 33,046 4,635,153 Other loans (1,500,000) (225,675) (1,274,325) Net funds 3,168,199 (192,629) 3,360,828 20 FINANCIAL INSTRUMENTS The Group uses financial instruments, other than derivatives, comprising borrowings, cash, liquid resources and various items such as sundry debtors and creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the Group's operations. The main risks arising from the Group's financial instruments are liquidity risk and currency risk. The Directors review and agree policies for managing these risks and these are summarised below. Short-term debtors and creditors have been excluded from all the following disclosures. Liquidity risk The Group seeks to manage financial risk, to ensure sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. This is achieved by placing surplus funds on deposit. At the balance sheet date the Group had £100,000 on seven-day deposit at an interest rate of 4.29% and £4,100,000 on monthly deposit at an interest rate of 4.45%. Currency risk The functional currencies of the companies in the group are Sterling, South African Rand, and Madagascan Ariary. The Group does not hedge against the effects of movement in exchange rates. These risks are monitored by the board on a regular basis. Borrowing facilities and interest rate risk The Group finances its operations through the issue of equity share capital. There is no significant borrowing and therefore no exposure to interest rate fluctuations. Fair values The fair values of the Group's financial instruments are considered equal to the book value. 21 CAPITAL COMMITMENTS Neither the Group nor the Company had any capital commitments at 30 June 2006 or 30 June 2005. 22 FINANCIAL COMMITMENTS The Company had the following commitments under non-cancellable operating leases as at 30 June 2006: Land and buildings 2006 2005 £ £ Within 1 year 12,000 18,250 23 CONTINGENT LIABILITIES There were no contingent liabilities at 30 June 2006 or 30 June 2005. 24 TRANSACTIONS WITH DIRECTORS No Director had, during or at the end of the year, a material interest in any contract which was significant in relation to the Group's business. 25 CONTROL The directors consider the Company to have no ultimate controlling party. 26 POST BALANCE SHEET EVENTS (1) The Company has granted options to subscribe for Ordinary 1p shares as follows: Date granted Period exercisable Exercise price Number of per share options (pence) 6 September 2006 6 September 2006 to 6 September 2014 78p 25,000 11 September 2006 11 September 2006 to 11 September 2009 80p 200,000 11 September 2006 11 September 2006 to 11 September 2009 100p 120,000 (2) On 15 September 2006, the Company announced that it has received the appropriate regulatory approvals to embark on the first phase of exploration drilling on its prospective nickel-copper-PGE Ambodilafa project in Madagascar. (3) On 4 October 2006, Jubilee entered into a Project Agreement with TransAsia Minerals Limited ('TransAsia') with regards to its Londokomanana and the Itsindro property. TransAsia has agreed an aggregate expenditure of US$10,000,000 - US$7,000,000 on Londokomanana and US$3,000,000 on Itsindro - on exploration over a three-year period to acquire an undivided 51% interest in the above properties. As part of its funding commitment Trans-Asia subscribed for US$1,000,000 worth of Jubilee shares equivalent to 490,000 Ordinary 1p shares at £1.10 per share and also advanced further cash of US$1,000,000 for Londokomanana and Itsindro. -------------------------- This information is provided by RNS The company news service from the London Stock Exchange FR FSFFAESMSEFF

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