INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUN...

25/09/2008
                                                                        GB00B23JN426/GBP/PLUS-exn

                   ORACLE COALFIELDS PLC ("Oracle Coalfields" or "the Company")

INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2008

HIGHLIGHTS

*  Drilling  has  defined a JORC Compliant Measured Resource of 1.4 billion tonnes  and  a  Proved
Reserves  of  371 million tonnes at the Block VI licence, Thar Coalfield, Tharparkar, Province  of
Sindh, Pakistan

* Coal is of lignite quality and suitable for combustion in power generation

*  Work programme for a Bankable Feasibility Study on the Block VI licence planned to commence  in
fourth Quarter 2008.

* Private placing completed in June 2008 with Orbis Equity Partners Limited raising GBP453,750

*  Chairman,  Shahrukh  Khan,  presented  at a World Bank and  International  Finance  Corporation
Investor Roundtable on Pakistan's Power Sector in Washington D.C. during July 2008

CHAIRMAN'S STATEMENT

The  first  six  months of the year have been of great significance to the development  of  Oracle
Coalfields.  The  most  notable milestone that we have achieved has been  the  completion  of  the
exploration work programme at Block VI of the Thar Coalfield, which has enabled the licence to  be
taken to the internationally recognised JORC (Joint Ore Reserve Committee) status.

Prior  to  the  Block VI licence being awarded to our 80% owned Pakistan subsidiary, Sindh  Carbon
Energy  Ltd, there was a substantial amount of work carried out by the China North East Geological
Survey  Bureau  ("CNGB")  contracted by the Sindh Coal Authority, which in  2006  completed  a  35
borehole  drilling programme. Accordingly, the seven borehole drilling programme that we undertook
validated  all  historic drilling results, and enabled our UK-based independent coal  consultants,
Dargo  Associates Ltd, to define a 1.423 billion measured JORC resource and a proved JORC  reserve
of  371  million tonnes across the prospective mine area at Block VI.  In February-April  2008,  a
series  of  seven  boreholes were drilled to depths of 200-240m, four of which were  openholed  to
100m,  the other three being fully cored. The drilling was carried out by Deep Rock Drilling (Pvt)
Ltd.  of  Karachi  and the geophysical logging was performed by Geoscience Associates  of  Lahore.
These  boreholes were logged using calliper, density, resistivity and radioactivity  sondes.   The
results  of  the drilling programme have confirmed the presence of the main lignite seam  of  2-7m
thickness,  with a total lignite thickness in the seven boreholes of 20-30 meters.  The overburden
thickness and lignite thickness confirm the findings of the CNGB drilling. These results  validate
the  CNGB  borehole data and can now be used together with this recent drilling by us to enable  a
lignite resource/reserve assessment to be made.  The mining area at our licensed block at Thar  is
amenable to opencast mining.

As  discussed previously, the coal at the Block VI licence is of a lignite quality, ensuring  that
it  is  most suited to combustion in power generation. Further coal tests were carried out by  TES
Bretby  Ltd  in  the UK, and the Fuel Research Centre, part of Pakistan Council of Scientific  and
Industrial  Research  (PCSIR), Karachi, which confirmed the coal quality  is  suitable  for  power
generation  and  industry, especially for the cement sector.  Rock samples were tested  by  Strata
Surveys  Ltd of the UK.  It is intended that we will undertake an integrated coal mine  and  power
plant  project,  giving due consideration to the benefits that a partner on the power  plant  side
could bring to the project.

Since  announcing the JORC classifications for Block VI in May 2008 we have been  working  on  the
strategy  to  take  the licence forward toward production. Accordingly, we  will  now  be  working
towards  the completion of a Bankable Feasibility Study ("BFS"), the work for which is planned  to
start  in  the  fourth  Quarter  of 2008. Work for the BFS will commence  with  subcrop  drilling,
followed by hydrogeology and geotechnical and geophysical reports and mine design.  An independent
Environmental Impact Assessment will also be commissioned complying with World Bank guidelines and
Equator  Principals and power plant study. We look forward to keeping investors regularly  updated
on the progress of the BFS.

Meanwhile,  it  is planned that drilling will recommence at the Indus East licence  in  the  first
quarter  of 2009, and a drilling programme is in the process of being mapped out.  Three boreholes
have  so  far  been drilled out of the 12 boreholes planned in the licence area. The drilling  was
carried  out  by  Deep  Rock  Drilling (Pvt) Ltd. and the geophysical  logging  was  performed  by
Geoscience  Associates.  Up to 300 meters depth drilling was carried out in each of the  boreholes
of  which  100  meters of non-core drilled depth and the rest core drilled up to the final  depth.
The  cumulative lignite thickness encountered ranged between 2.28 meters to 4.62 meters in two  of
the  boreholes.   Two  boreholes were geophysically logged using spontaneous  potential  (SP)  and
single  point  resistance  (SPR),  natural  gamma and gamma-gamma  density.   The  log  suite  was
restricted  as  logging could only take place in the cased part of the boreholes; the  surrounding
sediments  were  not  self supporting.  The deposit is deep and can only be mined  by  underground
methods. Coal samples were also taken and analysed by PCSIR in Karachi.  Due to the acquisition of
the  exploration licence for Block VI, Thar Coalfield, the drilling activities were moved to  Thar
but with the intention of returning to Indus East to complete the original exploration programme.

In  June  2008,  we  raised  GBP453,750 through a placing of 5,500,000 shares  with  Orbis  Equity
Partners  Ltd  ("Orbis")  at  8.25p. Additionally, 5,500,000 warrants  have  been  issued  to  the
investors  that took part in the placing through Orbis and are exercisable at 14p in whole  or  in
part at any time until 31 May 2010.  The response to the placing far exceeded our expectations and
is testament to the progress the company has made to date and the strategy that the Company has in
place, particularly to bring the Thar project into development.

Pakistan  is  aware of the importance that its indigenous coal resources will play in  easing  the
strains  on the existing electrical capacity within the country, and this was highlighted  by  the
World  Bank and International Finance Corporation Investor Roundtable in Washington D.C.  in  July
2008,  which was instigated to develop Pakistan's strategy for power generation. Notable political
figures  from  Pakistan  were present, including the Prime Minister, His Excellency,  Yousuf  Raza
Gilani, and His Excellency the Chief Minister, Government of Sindh, Syed Qaim Ali Shah as well  as
international  financial institutions and companies with interest in mining and  energy.   On  the
invitation  of the World Bank to attend the Investor Roundtable, I had the opportunity to  present
the Company and our plans for the future development of Block VI, Thar Coalfield to the high level
delegation  of  the  Government of Pakistan at the Roundtable.  It was evident at  the  Investors'
Roundtable  that  the government of Pakistan has a real urgency to bring the Thar  coalfield  into
production and become the key fuel for electricity in the country.

PAKISTAN POWER MARKET

As per our previous commentary, Pakistan continues to experience widespread power shortages across
the  country.   Over  2006-2007, Pakistan generated 19,420 MW of electricity,  of  which  37%  was
generated  by  natural  gas  and  less than 1% was generated by  coal.   Current  total  installed
generating  capacity is expected to be enlarged to some 82,000 MW by 2025. Coal's contribution  to
the  total generating capacity is expected to rise to 17%, comparing favourably with oil and  gas,
which are expected to see a decrease in their market share.

INTERNATIONAL COAL MARKET

The first half of 2008 saw gains for the coal sector of 60%, although more recently the sector has
pulled  back,  giving back the bulk of the gains seen during the first half  of  the  year.  China
continues  to  have  an unrelenting demand for coal, being both the world's largest  producer  and
consumer.  In  2007,  China's demand for coal increased by 9%, and this  year  the  Transportation
Association  of  China has forecast the country's consumption will increase by a further  5.3%  to
2.76 billion tons. Notably, coal powers 80% of China's electricity supply.

Both  during,  and  in the run up to the summer Olympic Games in Beijing, China slashed  its  coal
production,  restricted  consumption and substantially reduced electrical output  from  coal-fired
power stations. Available statistics show that coal imports were cut by 36% from May to June,  and
that  coal  imports in June were down 32% year-on-year. However, now that the Olympic  Games  have
been  completed,  those power stations that had temporary restrictions on their  output  will  now
return  to  their  original output prior to the Games, and seek to stockpile  coal  ahead  of  the
ensuing  winter. There is likelihood that China will become a net importer of coal to  ensure  its
economic growth continues.

In  addition  to  China's demand for coal for power plants, steel, and cement,  there  is  also  a
substantial  demand  from India, which has substantially reduced its export  of  coal  this  year.
Meanwhile,  Australia has been the victim of severe flooding in many of its mines, and Vietnam  is
anticipated to reduce its exports by up to a third this year.

In  light  of  the  global demand for coal, most notably from China and India,  coupled  with  the
curtailing  of  exports from key producers such as Indonesia, Vietnam, and Australia,  we  foresee
prices for coal strengthening with an increased global demand. In summation, the outlook for  coal
prices remains positive.

FINANCIALS

The  financial  results  for  the six months to 30 June 2008 show a loss  of  GBP  194,948  (2007:
GBP108,558). The basic loss per share was 0.1788p. The loss is attributable to the development  of
the Company's coal licences in Pakistan and administrative expenses.

OUTLOOK

I  believe that the outlook for Oracle Coalfields is most positive, and that the Company is placed
to  deliver further growth for shareholders. We have now been listed on PLUS for a little  over  a
year,  and in that time have achieved a great deal, the value of which has been reflected  in  the
more  than  doubling of the share price. Having taken our flagship property, Block VI, to  a  JORC
classification,  the focus is now on working diligently towards completing a Bankable  Feasibility
Study,  the  work  for which is planned to commence in fourth Quarter of 2008. I look  forward  to
keeping  shareholders regularly updated on the Company's progress, and would  like  to  take  this
opportunity to thank our shareholders for their patience and support, and also our local  partners
in Pakistan for their invaluable support in our progress in Pakistan.

Shahrukh Khan,
Chairman,
25 September, 2008

ORACLE COALFIELDS PLC GROUP OF COMPANIES

UNAUDITED RESULTS FOR THE 6 MONTHS TO 30 JUNE 2008

INCOME STATEMENT

                                                       6 MONTHS TO                      6 MONTHS TO
                                                       30/06/2008                       30/06/2007
                                                            £                               £
CONTINUING OPERATIONS                                                                                    
Revenue                                                       -                               -

Administrative expenses                                (199,280)                       (108,912)
                                                       _________                       _________

OPERATING LOSS                                         (199,280)                       (108,912)

Finance costs                                                 -                               -

Finance income                                            4,332                             354
                                                       _________                       _________

LOSS BEFORE TAX                                        (194,948)                       (108,558)

Taxation                                                      -                               -
                                                       _________                       _________

LOSS FOR THE PERIOD                                    (194,948)                       (108,558)
                                                       _________                       _________

Basic loss per share                                   (0.1788p)                        (0.2150p)

Diluted loss per share                                 (0.1510p)                                 

Notes

1.       The financial information for the period ended 30 June 2008 has not been audited and does
    not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985, it
    has however been subject to a review by the company's auditors.

2.       Basic  loss per share has been calculated using the weighted average number of shares  of
    109,060,071 (2007 - 50,604,395).   Diluted loss per share has been calculated using the weighted
    average number of shares of 129,140,071 (2007 - Nil).

3.      The Directors of the issuer accept full responsibility for this announcement.

The Directors of the Issuer accept responsibility for this announcement.

ENQUIRIES:

ORACLE COALFIELDS PLC
SHAHRUKH KHAN, CHAIRMAN
TELEPHONE: [phone]
EMAIL: [e-mail]

CORPORATE ADVISERS

ST HELEN'S CAPITAL PLC
BARRY HOCKEN, DIRECTOR
TELEPHONE: [phone]
EMAIL: [e-mail]

Oracle Coalfields PLC

Oracle Coalfields plc