1st Quarter Results

FOR: RAMBLER METALS & MINING PLC TSX VENTURE SYMBOL: RAB AIM SYMBOL: RMM November 30, 2007 Rambler Metals and Mining PLC 1st Quarter Results LONDON, ENGLAND and BAIE VERTE, NEWFOUNDLAND AND LABRADOR--(Marketwire - Nov. 30, 2007) - Rambler Metals and Mining PLC (TSX VENTURE:RAB)(AIM:RMM) (the "Company") today reports its 1st Quarter results for the three months ended 31 October 2007. The principal activity of the Company is carrying out development and exploration on the Rambler Property, a mineral exploration property located on Newfoundland and Labrador's Baie Verte Peninsula. Operational & Exploration Highlights: - Surface exploration drilling activity continued and a total of 4,344 metres was drilled in the quarter compared to 4,294 metres drilled in Q1 2007. The diamond drilling continues to intersect mineralization while extending the recently discovered zones of the 1807 zone and Upper Ming Footwall Zone. Drilling intersections returned grades of 5.9% copper with 1.5 g/T gold, the largest intersection on the 1807 zone to date. Following the award of a 20,000m underground drilling program the company's first underground drill arrived on site in late October and our underground drilling program began in November 2007. - As of 23 November 2007 121 million US gallons had been pumped out with the water level now situated on the 1100 Level. The ground conditions are good and very little rehabilitation work has been required to date. As the water level recedes, air, water and electrical infrastructure is being installed which will allow a more cost effective and faster resumption of mining operations than competing projects. - On 1 September 2007 a contract was entered with SRK Consulting, Toronto to conduct a scoping study for the mine to help form the basis of an economic analysis for the project. The scoping study is underway and is proceeding well and is expected to be complete in Q3 2008. - The headcount has remained constant with 33 employees working on the project during Q1 2008 with zero turnover and no requirement to hire additional employees. Financial Highlights: - Compared to the quarter ending 31 October 2006, net losses increase Pounds Sterling 84,582 to Pounds Sterling 135,296 and the loss per share increased from 0.13p to 0.27p. Losses were higher as administration expenses increased Pounds Sterling 94,417 to Pounds Sterling 188,449. Staff costs were the primary driver for this change. - Cash flows used for operating activities increased by Pounds Sterling 189,795 substantially as a result of increased operating losses. Cash flows used for investing activities also increased by Pounds Sterling 796,553 primarily as a result of a more aggressive exploration programme and mine rehabilitation. Cash flows used for financing activities were Pounds Sterling 43,933 being capital payments on new finance leases. - Total assets include accumulated deferred exploration expenditures and mine rehabilitation costs increased Pounds Sterling 7,641,760 to Pounds Sterling 15,902,570. This increase was substantially funded from cash deposits and an increase in creditors. - The cash at the end of the period was Pounds Sterling 5,161,546. George Ogilvie, Chief Operating Officer commented: "Delineation and exploration drilling has progressed well and the mine continues to produce exciting high grade drill results. We are pleased that the underground drill delineation program has commenced and plan to publish a compliant reserve/ resource in fiscal 2008. We continue to operate on track; the dewatering programme is now 60% complete and on target to be completed by March 2008. We aim to transform the Ming Mine into a producing mine over the coming year, and remain very positive while continuing to explore untapped areas." About the Company Rambler was founded in 2004 when Altius Minerals Corporation ("Altius"), a Newfoundland and Labrador based resource company, contributed to the Company's asset base an option to acquire and develop the Rambler property. The Rambler property had been a former underground copper and gold producing property that ceased production when the deposit reached a then third party property boundary. This neighbouring property was subsequently consolidated before being brought into the Company. The Company now owns a 100% interest in the property. RAMBLER METALS AND MINING PLC MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FIRST QUARTER The following management's discussion and analysis ("MD&A") of Rambler Metals & Mining plc (the "parent company") and its subsidiaries (the "Group" or "Rambler") contains forward-looking statements that involve numerous risks and uncertainties. Our actual results could differ materially from those discussed in such forward-looking statements as a result of these risks and uncertainties, including those set forth in this MD&A. The following discussion provides information that management believes is relevant to an assessment and understanding of our consolidated results of operations and financial condition for the quarter ended 31 October 2007. This discussion should be read in conjunction with our audited financial statements for the year ended 31 July 2007 and the related notes thereto. These consolidated statements have been prepared in accordance with International Financial Reporting Standards (IFRS). This MD&A, which has been prepared as of 29 November 2007, is intended to supplement and complement our audited consolidated financial statements and notes thereto for the year ended 31 July 2007 prepared in accordance with International Financial Reporting Standards (IFRS). Unless otherwise stated, all reported amounts are stated in British Pounds. OUR BUSINESS & OPERATIONS REVIEW The parent company was incorporated as Fortress Metals and Mining plc on 14 April 2004 and changed its name to Rambler Metals and Mining plc on 17 March 2005. The parent company's Ordinary Shares were admitted for trading on the London AIM market on 8 April 2005 under the symbol "RMM" and were listed on the TSX Venture Exchange on 7 February 2007 under the symbol "RAB". The principal activity of the Group is carrying out development and exploration on the Rambler Property a mineral exploration property located on Newfoundland and Labrador's Baie Verte Peninsula. Operational highlights include: - Exploration Drilling- surface exploration drilling activity continued with a total of 4,344 metres drilled in the quarter compared to 4,294 metres drilled for the same period in 2007. The diamond drilling continues to intersect mineralization while extending the recently discovered zones of the 1807 zone and Upper Ming Footwall Zone. The focus of the company's two surface exploration drills has been to complete delineation drilling of the footwall deposit below the historical old workings while exploring the 1807 zone. Following the award of a 20,000m underground drilling program the company's first underground drill arrived on site in late October and our underground drilling program began in November 2007. - Mine Dewatering- at 31 October 2007, 103 million US gallons of water had been pumped out of the mine with the water level receding to the 920 Level. As of 23 November 2007 121 million US gallons had been pumped out with the water level now situated on the 1100 Level. The ground conditions are good and very little rehabilitation work has been required to date. As the water level recedes, air, water and electrical infrastructure is being installed which will allow a more cost effective and faster resumption of mining operations than competing projects. - Scoping Studies- on 1 September 2007 a contract was entered with SRK Consulting, Toronto to conduct a scoping study for the mine. The scoping study is underway and is proceeding well. The purpose of the scoping study will be to provide a conceptual design for the mine and mill with anticipated production rates. A capital and operating cost estimate to within +/- 25% will also be part of the work scope study. The above will form the basis of an economic analysis for the project. The scoping study is expected to be complete in Q3 2008. - Manpower - the headcount of 33 people remained stable during the quarter and there is no requirement to hire additional employees at this time. SELECTED FINANCIAL INFORMATION The following selected financial information has been derived from the consolidated financial statements of the Group for the periods indicated and should be read in conjunction with such statements and notes thereto. /T/ --------------------------------------------------------------------------- --------------------------------------------------------------------------- Selected Financial Information All amounts in Pounds Sterling, 3 months ended 3 months ended except shares and per share figures 31 October 2007 31 October 2006 --------------------------------------------------------------------------- --------------------------------------------------------------------------- Revenue - - Administrative Expenses 188,449 94,032 Bank Interest Receivable 64,726 43,318 Net (loss) (135,296) (50,714) Loss per share in pence (basic and diluted) (0.27p) (0.13p) Cash Flow (used) for operating activities (269,230) (79,435) Cash Flow (used) for investing activities (1,566,010) (769,457) Cash Flow (used) for financing activities (43,933) - Net (decrease) in cash (1,879,173) (848,892) Cash & Cash Equivalents at end of period 5,161,546 4,630,080 Total Assets 15,902,570 8,260,810 Total Liabilities 1,628,708 581,228 Working Capital 4,419,092 4,166,758 Weighted average number of shares outstanding 55,358,200 40,030,000 --------------------------------------------------------------------------- --------------------------------------------------------------------------- /T/ Review of quarter ending 31 October 2007 The Group's only source of income since incorporation has been bank deposit interest. Compared to the quarter ending 31 October 2006, net losses increased Pounds Sterling 84,582 to Pounds Sterling 135,296 and the loss per share increased from 0.13p to 0.27p. Losses were higher as administration expenses increased Pounds Sterling 94,417 to Pounds Sterling 188,449. Staff costs were the primary driver for this change increasing Pounds Sterling 339,942 to Pounds Sterling 410,712 of which Pounds Sterling 78,058 was treated as revenue expense and Pounds Sterling 332,654 was capitalised as it related directly to the Group's ongoing exploration and mine development activities. This increase in costs was partially offset by interest income which was Pounds Sterling 21,408 higher at Pounds Sterling 64,726 as a result of higher cash balances. Cash flows used for operating activities increased by Pounds Sterling 189,795 substantially as a result of increased operating losses. Cash flows used for investing activities also increased by Pounds Sterling 796,553 primarily as a result of a more aggressive exploration programme and mine rehabilitation. Cash flows used for financing activities were Pounds Sterling 43,933 being primarily capital payments on new finance leases. Total assets include accumulated deferred exploration expenditures and mine rehabilitation costs increased Pounds Sterling 7,641,760 to Pounds Sterling 15,902,570. This increase was substantially funded from cash deposits and an increase in creditors. The reasons or explanations for movements in costs, balance sheet accounts or cash flows compared to the fourth quarter of fiscal 2007 are consistent with explanations given above. SUMMARY OF QUARTERLY RESULTS As only the quarterly financial statements for the quarter ending 31 October 2006 were prepared by the Group prior to the parent company becoming a reporting issuer in the provinces of British Columbia and Alberta, the Company is not presently required under applicable Canadian securities law to provide any additional quarterly results other than as provided below. /T/ Quarterly Results (all amounts in British Pounds except per share figures) Fiscal 2008 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter ----------- Revenue - Net Loss (135,296) Loss per share Basic & diluted (in pence) (0.27) Fiscal 2007 ----------- Revenue - - - - Net Loss (87,557) (191,441) (339,517) (50,714) Loss per share -Basic & diluted (in pence) (0.14) (0.48) (0.85) (0.13) /T/ Net losses for the first three quarters of 2007 are stated in accordance UK GAAP. An increase in administrative expenses as well as one-off costs associated with pursuing a secondary listing for the shares of the parent company and completing a fund raising are key factors behind the increase in net losses for the second and third quarters of Fiscal 2007. Options were also granted during the second quarter of Fiscal 2007 resulting in a share based payment expense. SUBSEQUENT EVENT On 12 November 2007, 534,000 options were granted to an officer and employees of the Group at CAN$1.10 per share. OUTLOOK The Group continues to: - Drill off the mineralized zones with holes on 50 metre centres so that a NI 43-101 compliant reserve/ resource can be published in fiscal 2008. - Pursue an aggressive exploration programme while continuing to delineate the footwall deposit from underground. - Dewater the mine - management estimates the dewatering programme is now 60% complete and on target with original estimates to reach the 200 M US gallon milestone in March 2008. - Make good progress with underground mining, mill and environmental scoping studies. - An additional Project Geologist will have to be hired in fiscal Q2 2008 to provide adequate resources for the expected increase in core due to the start of the underground drilling programme. - Continue to invest in plant and equipment to support mine rehabilitation activities. LIQUIDITY, CAPITAL RESOURCES AND FINANCIAL POSITION To date, the Group has relied on shareholder funding to finance its operations. With finite cash resources and no material income, the liquidity risk is significant and is managed by controls over expenditure. Success will depend largely upon the outcome of ongoing and future exploration and evaluation programmes. The majority of the Group's expenses are incurred in Canadian Dollars. The Group's principal exchange rate risk is therefore related to movements between the Canadian Dollar and the British Pound. The Group's cash resources are held in British Pounds and Canadian dollars. The Group has a downside risk to any strengthening of the Canadian Dollar as this would increase expenses in British Pound terms. Any weakening of the Canadian Dollar would however result in the reduction of expenses in British Pound terms and preserve cash resources. Additionally, any such movements would affect the Consolidated Balance Sheet when the net assets of the Canadian subsidiary are translated into British Pounds. Cash balances in Canadian Dollars are kept under constant review and surplus funds are held on deposit on the most advantageous terms of deposit available up to three month's maximum duration. Floating rate financial assets comprise interest earning bank deposits at rates set by reference to the prevailing LIBOR or equivalent prime rate. Fixed rate financial assets are cash held on fixed term deposit. Cash and short terms deposits (expressed in British Pounds) were as follows: /T/ --------------------------------------------------------------------------- --------------------------------------------------------------------------- At 31 October 2007 Fixed Rate Assets Floating Rate Assets Total Currency --------------------------------------------------------------------------- --------------------------------------------------------------------------- British Pound 825,000 44,286 869,286 --------------------------------------------------------------------------- --------------------------------------------------------------------------- Canadian Dollars - 4,292,260 4,292,260 --------------------------------------------------------------------------- --------------------------------------------------------------------------- --------------------------------------------------------------------------- --------------------------------------------------------------------------- At 31 October 2006 Fixed Rate Assets Floating Rate Assets Total Currency --------------------------------------------------------------------------- --------------------------------------------------------------------------- British Pound 2,804,519 21,342 2,825,861 --------------------------------------------------------------------------- --------------------------------------------------------------------------- Canadian Dollars 1,776,649 27,570 1,804,219 --------------------------------------------------------------------------- --------------------------------------------------------------------------- /T/ The Group also entered into leases for mining and other equipment. At 31 October 2007, the Group has outstanding obligations, including interest, relating to these leases of Pounds Sterling 755,025. The Group utilised Pounds Sterling 269,230 (2006: Pounds Sterling 79,435) to finance operating cash flows during the quarter. This material increase was primarily a result of increased operating losses on higher costs discussed above. Cash outflows from investing activities increased to Pounds Sterling 1,566,010 (2006: Pounds Sterling 769,457) as a result of a Pounds Sterling 636,268 increase in evaluation and exploration activities. Expenditure on plant and equipment to support the increase in activity also increased significantly to Pounds Sterling 360,069. Cash outflows relating to financing activities were Pounds Sterling 43,933 (2006: Pounds Sterling nil) and relates to payments made under finance leases. Interest received increased in line with higher cash balances on deposit compared to the same quarter last year. Cash at the end of the period stood at Pounds Sterling 5,161,546. In order to fund the next stage of the project, the directors have agreed to progress a financing plan during the second quarter. The directors remain confident that a further fundraising will be successfully completed before 31 July 2008. At 29 November 2007, the Company has Pounds Sterling 4,799,572 in cash. Commitments As at 31 October 2007 commitments included: /T/ --------------------------------------------------------------------------- All commitments in Canadian Dollars $ --------------------------------------------------------------------------- --------------------------------------------------------------------------- Surface & underground drill programmes 2,700,000 --------------------------------------------------------------------------- Capital Leases 1,140,000 --------------------------------------------------------------------------- Engineering Studies 290,690 --------------------------------------------------------------------------- Mine Rescue Equipment 205,515 --------------------------------------------------------------------------- Toyota Landcruiser 78,900 --------------------------------------------------------------------------- --------------------------------------------------------------------------- TOTAL 4,415,105 --------------------------------------------------------------------------- /T/ Financial Instruments The board of directors determines, as required, the degree to which it is appropriate to use financial instruments and hedging techniques to mitigate risks. The main risks for which such instruments may be appropriate are foreign exchange risk, interest rate risk and liquidity risk. There are no perceived credit risks as the Group has no trade receivables and there were no derivative instruments outstanding at 31 October 2007. Related Party Transactions The parent company has a related party relationship with its subsidiary, and with its directors and executive officers. Directors of the parent company and their immediate relatives control 20% of the voting shares of the parent company. Brian Dalton and John Baker, directors of the company are also directors of Altius Resources Inc ("Altius"), a 24% shareholder in the parent company. A total of Pounds Sterling 55,341 (2006: Pounds Sterling 16,400) was paid to key management personnel during the period. Additionally, according to the terms of a service contract dated 7 March 2005, Altius continues to provide certain and limited services to the Group. All costs are recharged to Rambler and Altius receives a 7% management fee on all expenditures. This arrangement was entered into as Rambler had limited exploration staff and Altius, being the previous owner of the Rambler property, had personnel with the necessary knowledge and experience to conduct the exploration programs and this arrangement is now being wound down. The Group was invoiced Pounds Sterling 8,286 in the quarter (2006: Pounds Sterling 658,102) by Altius and at the end of the quarter, Altius were owed Pounds Sterling 4,340 (2006: Pounds Sterling 503,362). The following expenses reimbursements were payable to directors at 31 October 2007: /T/ S Neamonitis Pounds Sterling 1,073 (2006: Pounds Sterling 1,073) B Hinchcliffe Pounds Sterling 2,313 (2006: Pounds Sterling nil) The following consultancy fees were payable to Altius Mineral Corporation for the quarter ended 31 October 2007 for the consultancy services of: J Baker & B Dalton Pounds Sterling 3,300 (2006: Pounds Sterling 3,300) /T/ An amount of Pounds Sterling 20,900 (2006: Pounds Sterling 8,800) was outstanding in respect of these fees at the period end. Going Concern The Group's ability to continue as a going concern, and the recoverability of its mineral properties, is dependent on the copper price, its ability to fund its development and exploration programs, and to manage and generate positive cash flows from operations in the future. These financial statements do not reflect the adjustments to carrying values of assets and liabilities and the reported expenses and balance sheet classifications that would be necessary should the going concern assumption be inappropriate, and these adjustments could be material. In common with many exploration companies, the Group raises finance for its exploration and appraisal activities in discrete tranches. The directors have agreed to progress a financing plan during the second quarter and remain confident that a fundraising will be successfully completed before 31 July 2008. The directors have therefore concluded that the Group is a going concern. Impairment Assessments of Development Projects and Exploration Properties The carrying value of assets are reviewed and tested when events or changes in circumstances suggest that the carrying amount may not be recoverable. A comparison of the carrying value of the assets of the mine or project is compared to the expected future cash flows associated with the project. Expected future cash flows are based on a probability-weighted approach applied to potential outcomes and a reduction of assets is made to fair value as a charge to earnings if the discounted expected future cash flows are less than the carrying amount. Fair value is estimated by discounting the expected future cash flows using a discount factor that reflects the risk free rate of interest for a term consistent with the period of expected cash flows. Stock Based Compensation In the 2007 fiscal years, the parent company granted a number of individuals employee stock options. The number of share options being granted is considered by the directors to be consistent with companies of a similar size and profile to Rambler. The parent company is likely to grant individuals employee stock options again in the future. The Group calculates the cost of share based payments using the Black-Scholes model. Inputs into the model in respect of the expected option life and the volatility are subject to management estimate and any changes to these estimates may have a significant effect on the cost. MI 52-109 COMPLIANCE Disclosure Controls and Procedures The Chief Executive Officer and Chief Financial Officer evaluated the effectiveness of the Group's disclosure controls and procedures as at the financial year ended 31 October 2007. Based on that evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that the design of these disclosure controls and procedures were effective as at 31 October 2007 to provide reasonable assurance that material information relating to the Group would be made known to them by others within the Group. Internal controls over financial reporting As at 31 October 2007, the Chief Executive Officer and Chief Financial Officer evaluated the design of the Group's internal controls over financial reporting. Based on that evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that the design of internal control over financial reporting was effective as at 31 October 2007 to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS. International Financial Reporting Standards that have recently been issued or amended but are not yet effective have not been adopted for the annual reporting period ended 31 July 2007: /T/ IFRS Title Application date Application date /Amendment of standard for Group --------------------------------------------------------------------------- IFRS 8 Operating segments 1 January 2009 1 August 2009 --------------------------------------------------------------------------- IAS 23 Borrowing costs 1 January 2009 1 August 2009 amendment --------------------------------------------------------------------------- IFRIC 12 Service concession arrangements 1 January 2008 1 August 2008 --------------------------------------------------------------------------- /T/ Management have reviewed the impact of the above standards and have determined that they do not result in any changes to accounting policies. OUTSTANDING SHARE DATA /T/ As at the date of this MD&A the following securities are outstanding: Ordinary Shares 49,725,000 Warrants 4,675,000 Compensation options 478,200 Options 1,014,000 ------------ Total 55,892,200 ------------ /T/ Further information Additional information relating to the Group is on SEDAR at www.sedar.com and on the Group's web site at www.ramblermines.com. RAMBLER METALS AND MINING PLC UNAUDITED CONSOLIDATED FINANCIAL INFORMATION FOR THE THREE MONTHS ENDED 31 OCTOBER 2007 The accompanying financial information for the three months ended 31 October 2007 and 31 October 2006 have not been reviewed or audited by the Group's auditors and has an effective date of 29 November 2007. /T/ RAMBLER METALS AND MINING PLC CONSOLIDATED INCOME STATEMENT (Unaudited) Three months ended 31/10/07 31/10/06 Pounds Sterling Pounds Sterling Administrative expenses 188,449 94,032 ---------------- ---------------- Operating loss (188,449) (94,032) ---------------- ---------------- Bank interest receivable 64,726 43,318 Finance lease interest payable (11,573) - ---------------- ---------------- 37,118 - ---------------- ---------------- Loss before tax (135,296) (50,714) Taxation - - ---------------- ---------------- Loss after tax (135,296) (50,714) ---------------- ---------------- Basic and diluted loss per ordinary share (0.27)p (0.13)p ---------------- ---------------- The accompanying notes are an integral part of these consolidated financial statements RAMBLER METALS AND MINING PLC CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE (Unaudited) Three months ended 31/10/07 31/10/06 Pounds Sterling Pounds Sterling Foreign exchange differences 1,176,993 (42,933) Loss for the period (135,296) (50,714) ---------------- ---------------- Total recognised income and expense for the period 1,176,993 (93,647) ---------------- ---------------- ---------------- ---------------- The accompanying notes are an integral part of these consolidated financial statements. RAMBLER METALS AND MINING PLC CONSOLIDATED BALANCE SHEET 31/10/07 31/07/07 Unaudited Audited Pounds Sterling Pounds Sterling ASSETS Property, plant and equipment 2,584,248 2,137,086 Deferred exploration costs 7,949,661 5,941,947 ---------------- ---------------- Total non-current assets 10,533,909 8,079,033 ---------------- ---------------- Other receivables and prepayments 207,115 203,534 Cash and cash equivalents 5,161,546 6,590,372 ---------------- ---------------- Total current assets 5,368,661 6,793,906 ---------------- ---------------- Total assets 15,902,570 14,872,939 ---------------- ---------------- ---------------- ---------------- EQUITY Issued share capital 497,250 497,000 Share premium account 13,366,456 13,356,081 Merger reserve 120,000 120,000 Translation reserve 1,214,600 37,607 Accumulated losses (924,444) (789,148) ---------------- ---------------- Total equity 14,273,862 13,221,540 ---------------- ---------------- LIABILITIES Interest bearing loans and borrowings 604,433 539,271 Deferred tax liabilities 74,706 68,159 ---------------- ---------------- Total non-current liabilities 679,139 607,340 ---------------- ---------------- Interest bearing loans and borrowings 150,474 183,536 Trade and other payables 799,095 860,433 ---------------- ---------------- Total current liabilities 949,569 1,043,969 ---------------- ---------------- Total liabilities 1,628,708 1,651,399 ---------------- ---------------- Total equity and liabilities 15,902,570 14,872,939 ---------------- ---------------- ---------------- ---------------- The accompanying notes are an integral part of these consolidated financial statements. The comparative information has been restated in accordance with IFRS. RAMBLER METALS AND MINING PLC CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) Three months ended 31/10/07 31/10/06 Pounds Sterling Pounds Sterling Cash flows used for operating activities Operating loss (188,449) (94,032) Depreciation 3,742 2,467 (Increase)/decrease in receivables (958) 430 Increase/(decrease) in payables (71,992) 11,700 ---------------- ---------------- Cash generated from operations (257,657) (79,435) Interest paid (11,573) - ---------------- ---------------- Net cash (used) for operating activities (269,230) (79,435) ---------------- ---------------- Cash flows used for investing activities Interest received 62,103 35,329 Balance paid for acquisition of Rambler Metals And Mining Canada Limited - (138,797) Acquisition of evaluation and exploration assets (1,268,044) (631,776) Acquisition of property, plant and equipment (360,069) (34,213) ---------------- ---------------- Net cash (used) for investing activities (1,566,010) (769,457) ---------------- ---------------- Cash flows used for financing activities Proceeds from the issue of share capital 10,625 - Capital element of finance lease payments (54,558) - ---------------- ---------------- Net cash (used) for financing activities (43,933) - ---------------- ---------------- Net (decrease) in cash and cash equivalents (1,879,173) (848,892) Cash and cash equivalents at beginning of period 6,590,372 5,499,008 Effect of exchange rate fluctuations on cash held 450,347 (20,036) ---------------- ---------------- Cash and cash equivalents at end of period 5,161,546 4,630,080 ---------------- ---------------- ---------------- ---------------- The accompanying notes are an integral part of these consolidated financial statements. RAMBLER METALS AND MINING PLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) /T/ 1 NATURE OF OPERATIONS AND GOING CONCERN The principal activity of the Group is the development and exploration programme that the Group is carrying out at the Rambler copper and gold property in Baie Verte, Newfoundland, Canada. The accompanying interim consolidated financial information is prepared by management in accordance with accounting policies consistent with the principles of International Financial Reporting Standards ("IFRS") and its interpretations adopted by the International Accounting Standards Board ("IASB") which are the same as those adopted by the European Union and with parts of the Companies Act 1985 applicable to companies reporting under IFRS. This interim consolidated financial information has been prepared on the basis of a going concern, which contemplates the realisation of assets and settlement of liabilities in the normal course of business as they come due. The Group's ability to continue as a going concern, and the recoverability of its mineral properties, is dependent on the copper price, its ability to fund its development and exploration programmes, and to manage and generate positive cash flows from operations in the future. These financial statements do not reflect the adjustments to carrying values of assets and liabilities and the reported expenses and balance sheet classifications that would be necessary should the going concern assumption be inappropriate, and these adjustments could be material. In common with many exploration companies, the Group raises finance for its exploration and appraisal activities in discrete tranches. The directors have agreed to progress a financing plan during the second quarter and remain confident that a fundraising will be successfully completed before 31 July 2008. The directors have therefore concluded that the Group is a going concern. The accounting policies and methods of computation used in the preparation of the unaudited consolidated financial information are the same as those described in the Company's audited consolidated financial statements and notes thereto for the year ended 31 July 2007. In the opinion of management, the accompanying interim financial information includes all adjustments considered necessary for fair and consistent presentation of financial statements. These interim consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes for the year ended 31 July 2007. The financial information for the twelve months ended 31 July 2007 has been derived from the Group's audited financial statements for the period as filed with the Registrar of Companies. It does not constitute the financial statements for that period. The auditors' report on the statutory financial statements for the year ended 31 July 2007 was unqualified and did not contain any statement under Section 237(2) or (3) of the Companies Act 1985. 2 PROPERTY, PLANT AND EQUIPMENT /T/ Land and Plant and Other Buildings Equipment Assets Total Pounds Pounds Pounds Pounds Sterling Sterling Sterling Sterling Cost Balance at 1 August 2006 - - 3,245 3,245 Additions 242,972 1,881,274 128,143 2,252,389 Effect of movements in foreign exchange (2,835) (21,950) (1,517) (26,302) --------------- --------------- --------------- --------------- Balance at 31 July 2007 240,137 1,859,324 129,871 2,229,332 --------------- --------------- --------------- --------------- Balance at 1 August 2007 240,137 1,859,324 129,871 2,229,332 Additions 78,373 284,622 25,886 388,881 Effect of movements in foreign exchange 26,831 192,269 13,391 232,491 --------------- --------------- --------------- --------------- Balance at 31 October 2007 345,341 2,336,215 169,148 2,850,704 --------------- --------------- --------------- --------------- Depreciation Balance at 1 August 2006 - - 361 361 Depreciation charge for period 17,059 54,064 21,843 92,966 Effect of movements in foreign exchange (199) (631) (251) (1,081) --------------- --------------- --------------- --------------- Balance at 31 July 2007 16,860 53,433 21,953 92,246 --------------- --------------- --------------- --------------- Balance at 1 August 2007 16,860 53,433 21,953 92,246 Depreciation charge for period 19,508 129,948 8,408 157,864 Effect of movements in foreign exchange 2,556 11,374 2,416 16,346 --------------- --------------- --------------- --------------- Balance at 31 October 2007 38,924 194,755 32,777 266,456 --------------- --------------- --------------- --------------- Carrying amounts At 1 August 2006 - - 2,884 2,884 --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- At 31 July 2007 223,277 1,805,891 107,918 2,137,086 --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- At 1 August 2007 223,277 1,805,891 107,918 2,137,086 --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- At 31 October 2007 306,417 2,141,460 136,371 2,584,248 --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- 3 EXPLORATION AND EVALUATION COSTS Total Pounds Sterling Cost Balance at 1 August 2006 2,894,278 Additions 3,195,472 Effect of movements in foreign exchange (147,803) ---------------- Balance at 31 July 2007 5,941,947 ---------------- Balance at 1 August 2007 5,941,947 Additions 1,371,103 Effect of movements in foreign exchange 636,611 ---------------- Balance at 31 October 2007 7,949,661 ---------------- Carrying amounts At 1 August 2006 2,894,278 ---------------- ---------------- At 31 July 2007 5,941,947 ---------------- ---------------- At 1 August 2007 5,941,947 ---------------- ---------------- At 31 October 2007 7,949,661 ---------------- ---------------- 4 CAPITAL AND RESERVES Share Share Accumulated Translation Merger Total Capital Premium losses reserve reserve equity Pounds Pounds Pounds Pounds Pounds Pounds Sterling Sterling Sterling Sterling Sterling Sterling Balance at 1 August 2006 400,300 7,164,625 (220,866) 191,428 120,000 7,655,487 Total recognised income and expense - - (669,229) (153,821) - (823,050) Share-based payments - 58,191 100,947 - - 159,138 Share issues 96,700 6,629,676 - - - 6,726,376 Costs of share issues - (496,411) - - - (496,411) -------- ---------- ----------- ----------- -------- ----------- Balance at 31 July 2007 497,000 13,356,081 (789,148) 37,607 120,000 13,221,540 -------- ---------- ----------- ----------- -------- ----------- Balance at 1 August 2007 497,000 13,356,081 (789,148) 37,607 120,000 13,221,540 Total recognised income and expense - - (135,296) 1,176,993 - 1,041,697 Share issues 250 10,375 - - - 10,625 -------- ---------- ----------- ----------- -------- ----------- Balance at 31 October 2007 497,250 13,366,456 (924,444) 1,214,600 120,000 14,276,862 -------- ---------- ----------- ----------- -------- ----------- /T/ The company issued 25,000 ordinary shares of 1p each at a premium of 41.5p per share. At 31 October 2007 the Company had 480,000 share options, 478,200 compensation options and 4,675,000 share warrants in issue. These may have a dilutive effect on the basic earnings or loss per share in the future. 5 RELATED PARTY TRANSACTIONS Brian Dalton and John Baker, directors of the company are also directors of Altius Resources Inc ("Altius"), a 24% shareholder in the company. According to the terms of a service contract dated 7 March 2005, Altius continues to provide certain services to the company. All costs are recharged to Rambler and Altius receives a 7% management fee on all expenditures. The company has recruited its own team and as a result, this arrangement is now being wound down. The arrangement was entered into as Rambler had limited exploration staff and Altius, being the previous owner of the Rambler property, had personnel with the necessary knowledge and experience to conduct the exploration programs. The Group was invoiced Pounds Sterling 8,286 for the three months ended 31 October 2007 (31 October 2006: Pounds Sterling 658,102) by Altius and at the end of the period, Altius were owed Pounds Sterling 4,340 (31 July 2007: Pounds Sterling nil). The following expenses reimbursements were payable to directors at 31 October 2007: /T/ S Neamonitis Pounds Sterling 1,073 (31 July 2007: Pounds Sterling 2,940) B Hinchcliffe Pounds Sterling 2,313 (31 July 2007: Pounds Sterling 2,313) /T/ Consultancy fees were payable to Altius Mineral Corporation for the three months ended 31 October 2007 for the consultancy services of J Baker & B Dalton amounting to Pounds Sterling 3,300 (31 October 2006: Pounds Sterling 3,300). At 31 October 2007 the company owed Pounds Sterling 20,900 (31 July 2007: Pounds Sterling 18,700) to Altius in respect of these fees. 6 SHARE BASED PAYMENTS Rambler Metals and Mining PLC has established a share option scheme with the purpose of motivating and retaining qualified management and to ensure common goals for management and the shareholders. For options granted the vesting period is generally up to three years. If the options remain unexercised after a period of 10 years from the date of grant, the options expire. Furthermore, options are forfeited if the employee leaves the Company. As at 31 October 2007, ordinary share options held by employees were as follows: /T/ Outstanding Weighted average Exercisable number of remaining number of Exercise price Options contractual life options 32p 100,000 8.58 100,000 42.5p 380,000 9.17 380,000 ----------- ----------- 480,000 480,000 ----------- ----------- /T/ During the periods ended 2007 and 2006, director and employee stock options were granted, exercised and cancelled as follows: /T/ Weighted average exercise price contractual life Options At 1 August 2006 32p 100,000 Granted 42.5p 405,000 -------- At 31 July 2007 40.4p 505,000 Exercised 42.5p (25,000) -------- At 31 October 2007 40.3p 480,000 -------- -------- /T/ The exercise of the outstanding stock options would be anti-dilutive in the loss per share calculation. -30- FOR FURTHER INFORMATION PLEASE CONTACT: Rambler Metals & Mining Plc George Ogilvie VP & COO (709) 532-4990 OR Rambler Metals & Mining Plc Leslie Little Company Secretary 020 7661 8104 Website: www.ramblermines.com OR Insinger de Beaufort Nandita Sahgal 020 7190 7000 OR Pelham Public Relations Chelsea Hayes 020 7743 6675 -0- Rambler Metals & Mining Plc

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Rambler Metals & Mining (RMM)
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