Interim Results

Vane Minerals PLC
05 September 2005



                               VANE Minerals Plc

                 Interim Report - Six Months to 30th June 2005



Highlights

  • All work programmes proceeding under budget
  • Diablito gold-silver mine underground development and construction of ore
    production stopes commenced
  • Phase I drilling programme completed at prospective Guadalcazar gold
    prospect in Mexico
  • Phases II & III drilling programmes completed at Mina Charay gold-silver
    prospect in Mexico
  • Mineral Investigation Permits covering 3,445 square kilometres granted in
    Paraguay
  • As at 30th June the Group had cash balances of £1.53m
  • Exciting uranium prospects acquired in North America



Post Period End Highlights:

  • Agreement signed on Choix Copper prospect in Mexico, containing many
    surface samples assaying between 1-3% copper
  • Diablito second phase development continues and ore production commenced



Chairman's Statement

I am pleased to present this review of your Company's activities for the six
months to 30th June, 2005.

In January, we announced a further extension, to 30 June 2006, of the agreement
with Freeport- McMoRan Copper and Gold Inc. which gives VANE exclusive access to
Freeport's global exploration database (excluding Indonesia).  This provides one
of the cornerstones of VANE Minerals' ('VANE' or the Company') exploration
strategy: over 85% of the Freeport files have now been examined and a number of
attractive potential prospects are being pursued.

In addition to project generation from both the database and from VANE's highly
experienced team of geologists - as well as general corporate activity -
exploration and development work during the first half of 2005 focused on six
projects in Mexico, the US and Paraguay.

Diablito

Mining operations commenced during the period at the high-grade Diablito
gold-silver project, located in Nayarit, west-central Mexico.  VANE Minerals had
determined the early generation of cash flow from this operation as a primary
strategic objective for the Company.

A haulage/development tunnel has been driven into the Diablito vein, to produce
ore for mill testing in order to subsequently generate positive cash flow and
thus contribute to covering development costs. The tunnel has been extended 200
metres from the portal and stope development/mining of the 13,000 tonnes
situated above the tunnel is now underway.

The first 330-tonne test shipment has been successfully concentrated at the
Cosala mill, and 11 dry tonnes of concentrates have been delivered to the
Torreon smelter. Under the revised milling/smelting arrangement, VANE will be
mining a larger tonnage of slightly lower grade ore than originally scheduled.
This material will be shipped a shorter distance, now only 350 km, from the mine
to the Cosala mill and a much smaller tonnage of concentrate will be trucked the
remaining 750km, from the mill to the Torreon smelter. The net financial result
will differ only slightly from that expected originally from transporting the
higher grade flux ore a greater distance, 1,350 km, from the mine to the
Nacozari smelter.

We are pleased with the progress now being made. A further 1,300 tonnes of ore
have been transported to the Cosala mill for processing. The mining contractors
are currently working three faces of ore, so that the target production of 1,875
tonnes per month is now achievable and there will now be regular shipments of
ore and concentrates to the Cosala mill and the Torreon smelter respectively.

Guadalcazar

Evaluation of the Guadalcazar project in San Luis Potosi, Mexico, continued
during this period.  This is an opportunity from the Freeport database.  On
completion of the initial geological appraisal, a 12-hole diamond drilling
programme was carried out.  From the 1,222 metres drilled, samples of sawn drill
core were analysed for gold, silver, tin and mercury. Although the analysis did
not indicate economic viability, the gold and silver values (and particularly
mercury) were found to be consistently anomalous.  These results have directed
us towards a number of additional targets which we plan to drill this autumn.

Mina Charay

The Mina Charay Project near Los Mochis, Sinaloa, Mexico, continues to provide
very encouraging results.  An initial seven-hole drilling programme confirmed
very strong gold mineralisation locally, in a structurally complex vein system.

A detailed ground geophysical survey (self-potential) was then carried out prior
to a second round of drilling which began in March.  This, together with a third
round of drilling, completed a 27 hole programme, which was finished by the end
of June.  The nearly vertical vein system was intersected in 19 of the 27
inclined holes, providing 32 mineralised intercepts over a strike length of some
240 metres. The mineralised intercepts averaged 1.7 metres in width and
contained an average of 13 g/t gold and 93 g/t silver.  While the deepest
intercepts of the vein system are some 50 metres below surface, the system
remains open at depth.

The drilling and analytical data being evaluated by IMC of Tucson, Arizona, will
provide the basis for a resource estimate and another small round of drilling
which may be required to complete a preliminary feasibility report.

Choix

The Choix copper prospect in Sinaloa, Mexico, was acquired after the period
under review in July 2005, following a prospect examination and a review of
previous work done by Cambior Corporation.  Choix is an undrilled copper target
located at the southern end of the prolific Arizona-Mexico porphyry copper belt.
Despite easy access and outcrops showing strong (1% to 3%) copper
mineralisation, the area appears to have never been systematically evaluated or
drilled. Field work - including mapping and sampling, followed by drilling - is
scheduled to commence in September.

Paraguay Project

Despite its geological prospectivity, Paraguay is significantly under-explored
in comparison with its South American neighbours. Having applied for the mineral
rights to three large blocks of land in south-eastern Paraguay in November 2004,
three Investigation Permits for gold exploration were finally issued by the
Government in July 2005. Preliminary field investigations have confirmed
observations made during a previous exploration programme that detrital gold
exists in a number of streams.  The Company now expects to move ahead with
systematic stream and soil sampling to define drilling targets.

Uranium Programme

VANE's entry into uranium exploration is a reflection of the Company's belief in
the renewed strength of the uranium market and growing predictions of long-term
supply shortages.  The Company has identified a number of high-quality projects
in the south-western US.  Including a number of previously drilled properties,
17 target areas have been acquired in the breccia pipe district of northern
Arizona. Advanced negotiations are underway to acquire additional attractive
properties in southern Utah, at least two of which are believed to contain a
defined uranium resource.

In addition to our aggressive programme of property acquisition, work is in
progress to utilise satellite imagery to define targets in areas not previously
considered conducive to the recognition of pipe structures and to develop
geochemical techniques to recognise mineralised breccia pipes.

Outlook

VANE Minerals remains on course towards achieving the strategic goals set at the
time of listing on AIM in June, 2004.  Exploration work is proceeding on
schedule for all of our properties in Mexico as well as in Paraguay and the US.
With an excellent portfolio of projects and dedicated field teams we anticipate
further busy and successful operations in the months ahead.

At the end of June 2005, the Company's cash resources stood at £1.53 million.
The rate of Group expenditure meanwhile is currently running at £143,000 per
month. The move towards development and production of saleable concentrate at
Diablito is therefore very gratifying.   Production is now expected to increase
rapidly in the coming months and, with the redefined ore sales procedure, to
provide a secure and growing source of cash flow which it is anticipated will
substantially offset exploration spending.

The movement in VANE Minerals' share price in recent months has reflected
volatile conditions in the AIM market. This period has seen an unprecedented
flow of new listings, keen competition for funds and ever closer market
scrutiny.  Under these conditions, your Company's market performance can be
judged as encouraging.  Underpinned by solid institutional support, we are
confident the share price will progressively reflect more accurately the growing
importance of the many attractive projects which are advancing satisfactorily.

Michael Spriggs

Chairman

2nd September 2005



Enquiries:


VANE Minerals plc                Seymour Pierce Limited             Parkgreen Communications
Matthew Idiens                   Sarah Wharry                       Justine Howarth / Cathy Malins
020 7667 6322                    020 7107 8000                      020 7493 3713





                      Consolidated Profit and Loss Account


£'000's                                     Notes    Unaudited                Unaudited                  Audited

                                                      6 months                 6 months                15 months
                                                         ended                    ended                    ended
                                                     30-Jun-05                30-Sep-04                31-Dec-04

Administrative Expenses                                  (315)                    (316)                    (638)
Operating Loss                              3            (315)                    (316)                    (638)
    Interest receivable and similar                         80                       29                       41
income
    Interest payable and similar charges                   (1)                      (1)                      (2)
Loss on ordinary activities before                       (236)                    (288)                    (599)
taxation
  Taxation                                                   -                        -                       36
Loss on ordinary activities after                        (236)                    (288)                    (563)
taxation
Loss per share
  Basic and Diluted                         4          (0.16p)                 (0.213p)                  (0.52p)



                 Statement of Total Recognised Gains and Losses


£'000's                                     Notes    Unaudited                Unaudited                  Audited

                                                      6 months                 6 months                15 months
                                                         ended                    ended                    ended
                                                     30-Jun-05                30-Sep-04                31-Dec-04

Loss for the Financial Period                            (236)                    (288)                    (563)
Currency translation differences on                        114                        9                     (67)
foreign subsidiaries
Total recognised gains and losses                        (122)                    (279)                    (630)
relating to the period


                 Consolidated Balance Sheet

£'000's                                     Notes    Unaudited                Unaudited                  Audited

                                                      6 months                 6 months                15 months
                                                         ended                    ended                    ended
                                                     30-Jun-05                30-Sep-04                31-Dec-04

Fixed Assets
  Intangible fixed assets                               12,036                   11,473                   11,504
Current Assets
  Debtors                                                  308                      103                      116
  Cash at bank                                           1,532                    2,639                    2,344
                                                         1,840                    2,742                    2,460
Creditors: amounts falling due within 1                  (100)                     (89)                     (66)
year
Net Current Assets                                       1,740                    2,653                    2,394
Total assets less current liabilities                   13,776                   14,126                   13,898
Capital and Reserves
  Called up share capital                               14,614                   14,614                   14,614
  Profit and Loss Account                                (838)                    (488)                    (716)
Equity Shareholders' funds                              13,776                   14,126                   13,898


                 Consolidated Cash Flow Statement

£'000's                                     Notes    Unaudited                Unaudited                  Audited
                                                      6 months                 6 months                15 months
                                                         ended                    ended                    ended

                                                     30-Jun-05                30-Sep-04                31-Dec-04
Net cash outflow from operating             6            (472)                    (332)                    (584)
activities
Returns on investment and servicing of
finance
  Interest received                                         80                       29                       41
  Interest or similar charges paid                         (1)                      (1)                      (2)
Net cash flow from returns on investment                    79                       28                       39
and servicing of finance
Capital expenditure and financial
investment
    Purchase of intangible fixed assets                  (533)                    (400)                    (382)
Net cash flow from capital expenditure                   (533)                    (400)                    (382)
and financial investment
Acquisitions and disposals
    Cash acquired with subsidiary                                                                            107
    Acquisition of subsidiary                                -                        -                     (50)
Net Cash Flow from acquisitions and                          -                        -                       57
disposals
Management of Liquid Resources                             896                  (2,523)                  (2,286)
Financing
Proceeds of share issue                                      -                    3,705                    3,705
Expenses of share issue                                      -                    (417)                    (423)
Net cash flow for financing activities                       -                    3,288                    3,282
(Decrease) / increase in cash for the                     (30)                       61                      126
period
Reconciliation of net cash flow to
movement in net funds
  (Decrease) / increase in cash in                        (30)                       61                      126
period
    Translation Difference                                 114                        9                     (68)
    Management of Liquid Resources                         896                    2,523                    2,286
  Opening net funds                                      2,344                       46                        -
  Closing net funds                                      1,532                    2,639                    2,344


Notes to the Accounts

1.        The financial information contained in this interim report does not
constitute statutory accounts within the meaning of section 240 of the Companies
Act 1985.

The consolidated financial statements incorporate those of VANE Minerals Plc and
its subsidiary undertakings for the period.

The six months figures for the period ended 30th June 2005, which have not been
audited, use accounting policies that are consistent with those adopted in the
accounts for the period ended 31 December 2004 and with those that will be
adopted in the accounts for the year ended 31 December 2005. The interim
accounts were approved by the Directors on 2nd September 2005.

2.        The comparative figures are for the 6-month period to September 2004
as these were the figures contained in the company's last Interim Report prior
to the year-end being changed to 31st December.

3.        The Group's operating loss is derived from its continuing operations
where the principal activity is the evaluation, acquisition and development of
mineral exploration targets, principally gold and silver targets abroad, from
its base in the United Kingdom.

4.        The calculation of the basic and diluted loss per ordinary share is
based on the loss after taxation of £236,000 (30 September 2004: £288,000, 31
December 2004: £563,000) and on the weighted average number of ordinary shares
in issue during the period of 146,143,823  (30 September 2004: 134,916,549, 31
December 2004: 107,745,590).

5.        Reconciliation of Movement in Equity Shareholders' Funds

£'000's                               Unaudited      Unaudited         Audited

                                       6 months       6 months       15 months
                                          ended          ended           ended
                                      30-Jun-05      30-Sep-04       31-Dec-04

Loss for Period                           (236)          (203)           (563)
Effect of currency exchange                 114              9            (68)
movements
Share Issue                                   -          3,705          14,951
Expenses of share issue not shown             -          (422)           (422)
in Profit and Loss Account
Net increase / (decrease) in              (122)          3,089          13,898
shareholders' funds
Opening Shareholders' Funds              13,898         11,037               -
Closing Shareholders' Funds              13,776         14,126          13,898

6.        Reconciliation of operating loss to operating cash flow

£'000's                               Unaudited      Unaudited         Audited

                                       6 months       6 months       15 months
                                          ended          ended           ended
                                      30-Jun-05      30-Sep-04       31-Dec-04

Operating loss                            (315)          (236)           (638)
Increase in debtors                       (192)           (79)             143
Increase / (decrease) in creditors           35           (17)            (89)
Operating cash flow                       (472)          (332)           (584)




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