Interim Results

Vane Holdings PLC
17 November 2004


                                Vane Holdings Plc
                        Interim Report - September 2004
                                   Highlights
                                        
   • Listed on AIM in June 2004 raising £3.288m net of expenses
   • At the reporting end, group has cash balances of £2.64m
   • All work programmes are on schedule and under budget
   • Completed 38-hole drilling programme on Diablito gold-silver prospect in
     Mexico
   • First production planned for Q1 2005
   • Follow-up exploration work at prospective Guadalcazar gold prospect in
     Mexico significantly progressed
   • Drilling on Guadalcazar scheduled to commence early in 2005
   • Option acquired on the Mina Charay gold-silver prospect in Mexico

Chairman's Statement

It gives me great pleasure to report VANE Holdings' first interim financial
results following your Company's successful flotation on to AIM in June 2004.
During this time we have made significant progress towards achieving our
objectives as set out when listing.

In our prospectus we stated that our primary intention would be to confirm the
existence of a suitable grade and tonnage in order to fast track the Diablito
gold-silver prospect in Nayarit, Mexico, for early production.

Since June, our efforts have been focused on completing a 38-hole drilling
programme on Diablito and mineralised quartz vein material was intersected at
all but two locations drilled. Holes at locations No. 4 and 5 collared in post
mineral alluvium were inadvertently placed in the footwall of the 40 degrees
south-dipping quartz vein. The core has been split and assayed for gold and
silver content. Check assays continue to confirm the original results that were
published in two separate press releases dated 29th September 2004 and 25th
October 2004. I am pleased to report that the values obtained confirm the
continuity and extent of the mineralisation, and indicate that, as anticipated,
Diablito represents a small but very high dollar value prospect which remains
open at depth.

At present we intend to initiate production of siliceous ore suitable for use as
smelter flux early in the first quarter of 2005. By shipping ore directly to a
smelter, we will minimise capital requirements by eliminating the need for an
on-site concentrating (milling) facility.

Follow-up exploration of our Guadalcazar gold prospect in San Luis Potosi,
Mexico has continued. The work completed to date includes pitting and
geochemical rock chip, water and mesquite tree sampling. A programme of ground
geophysics has been completed, which included magnetics, VLF (very low
frequency) and gravity surveys. The results of these work programmes are being
analysed to identify drilling targets. Drilling is planned to commence early in
2005.

During the 3rd quarter ending September 30th, VANE secured an option on the Mina
Charay gold-silver prospect in Sinaloa, Mexico. This is an un-drilled prospect
where the work to date has indicated the presence of primarily gold-silver
mineralisation both in veins and in larger brecciated areas having the potential
to be mined as an open-pit operation. The geology of Mina Charay is
characterised by a thick sequence of volcanic rocks of Tertiary age. This
sequence is cut by a steep fault zone believed to be the same structure that
controls the gold-silver mineralisation. This structure extends into a zone of
brecciated andesite and rhyolite which is intensely silicified, fractured and
cut by a stockwork of quartz veinlets carrying values in gold and silver as well
as geochemically anomalous values of lead, zinc, molybdenum and mercury. Other
veins, known to occur in the immediate area, some parallel with the Mina Charay
vein, have not yet been explored. Surface sampling has been completed and has
exposed previously unknown mineralisation. Upon receipt of analytical results a
drill programme will be formalised with drilling scheduled to begin in November.

The listing in June raised a total of 3.288 million net of expenses and, at the
reporting period end, with all our work programmes on schedule and under budget,
the group had cash balances of £2.64 million, well within the budgeted
expenditure. We continue to fund the ongoing programme of exploration and
development and we have sufficient cash resources to maintain the tempo of this
programme until Diablito enters production and begins to generate revenue for
the group.

Having brought together an experienced team of explorationists and operators,
established excellent local working relationships in the areas under
investigation in Mexico and given the results described above, we believe that
the Company's share price performance since listing has failed to reflect the
developing value of our exploration projects in Mexico. We are fortunate to be
able to anticipate early cash flow from gold and silver production at Diablito,
and possibly early production from Mina Charay, while Guadalcazar's promising
potential as a multi-million ounce gold deposit has yet to be drill tested.

We are committed to our strategy of early cash flow to help fund the next major
mineral discovery. Meanwhile, we wish to record our thanks for the patient and
continuing support of all of our shareholders.

Michael Spriggs
Chairman
16th November 2004

Consolidated Profit and Loss Account

£'000's                                             Unaudited        Unaudited
                                      Notes    6 months ended   6 months ended
                                                    30-Sep-04        31-Mar-04

Administrative Expenses                                 (316)            (208)
                                                     --------         --------
Operating Loss                            3             (316)            (208)
Interest receivable and similar
income                                                    29                1
Interest payable and similar charges                      (1)              (2)
                                                     --------         --------
Loss on ordinary activities before
taxation                                                (288)            (209)
Taxation                                                   -                -
                                                     --------         --------
Loss on ordinary activities after
taxation                                  4             (288)            (209)
                                                     --------         --------
Loss per share
Basic and Diluted                                     (0.213p)         (0.186p)
                                                     --------         --------

Statement of Total Recognised Gains and Losses

£'000's                                            Unaudited         Unaudited
                                              6 months ended    6 months ended
                                                   30-Sep-04         31-Mar-04
       
Loss for the Financial Period                          (288)             (209)
Currency translation differences on foreign
exchange currency investments                             9                 -
                                                     --------         --------
Total recognised gains and losses relating
to the period                                          (279)             (209)
                                                     --------         --------

Consolidated Balance Sheet

£'000's                                                Unaudited    Unaudited
                                              Notes        As at        As at
                                                       30-Sep-04    31-Mar-04
Fixed Assets
Intangible fixed assets                           5       11,473       11,073

Current Assets
Debtors                                                      103           24
Cash at bank                                               2,639           46
                                                        --------     --------
                                                           2,742           70

Creditors: amounts falling due within 1 year                 (89)        (106)
                                                        --------     --------
Net Current Assets                                         2,653          (36)
                                                        --------     --------
Total assets less current liabilities                     14,126       11,037
                                                        --------     --------
Capital and Reserves
Called up share capital                           6       14,614       11,246
Share Premium                                     7            -            -
Profit and Loss Account                                     (488)        (209)
                                                        --------     --------
Equity Shareholders' funds                                14,126       11,037
                                                        --------     --------

Consolidated Cash Flow Statement

£'000's                                               Unaudited      Unaudited
                                                       6 months       6 months
                                                          ended          ended
                                                      30-Sep-04      31-Mar-04
Net cash outflow from operating activities                 (323)          (250)
                                                        --------       --------
Returns on investment and servicing of finance
Interest received                                            29              1
Interest paid                                                (1)            (2)
                                                        --------       --------
Net cash flow from returns on investment and
servicing of finance                                         28             (1)
Taxation                                                      -              -
Capital expenditure and financial investment
Purchase of intangible fixed assets                        (400)             -
                                                        --------       --------
Net cash flow from capital expenditure and
financial investment                                       (400)             -
                                                        --------       --------
Financing
Proceeds of share issue                                   3,705              -
Expenses of share issue                                    (417)             -
                                                        --------       --------
Net cash flow for financing activities                    3,288              -
                                                        --------       --------
Increase / (decrease) in cash for the period              2,593           (251)
                                                        --------       --------
Reconciliation of net cash flow to movement in net
funds                                                   
Increase / (decrease) in cash in period                   2,593           (251)
Opening net funds                                            46            297
                                                        --------       --------
Closing net funds                                         2,639             46
                                                        --------       --------

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 Holdings Plc and
its subsidiary undertakings for the period.

The six months figures for the period ended 30th September 2004 and 31st March
2004, which have not been audited, use the same accounting policies as used by
the Group for the year ended 30 September 2003. The interim accounts were
approved by the Directors on 16th November 2004.

2.    The figures for the 6 month period to March 2004 are presented for
consistency of comparison as if the Company was the head company for the whole
of the period. In fact Vane Minerals Limited and its subsidiaries were acquired
by Vane Holdings Plc as part of a capital restructuring in December 2003.

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. The operating loss includes £80,392 of expenses charged
to the Profit and Loss account in respect of non-recurring costs of the listing.

4.    The calculation of the basic and diluted loss per ordinary share is based
on the loss after taxation of £288,000 (31 March 2004: loss £209,000) and on the
weighted average number of ordinary shares in issue during the period of
134,916,549 (31 March 2004: 112,462,000).

5.    Intangible assets include adjustment for fair value on acquisition of
subsidiaries (AVEN Associates LLC in the United States and Vane Minerals Limited
in the UK) and capitalisation of property development costs incurred by
Minerales Vane S.A. de C.V., the Mexican subsidiary of Vane Minerales Limited.

AVEN Associates LLC
                                     Value               Adj            at Acq
Net assets acquired                      £                 £                 £

Intangible fixed assets                  -            49,783            49,783
Cash at bank                           217                 -               217
                                  --------          --------          --------
Net assets                             217            49,783            50,000
                                  --------          --------          --------
Consideration
Cash paid                                                               50,000
                                                                      --------
Vane Minerals Limited
                              Initial book        Fair value        Fair value
                                     value               Adj            at Acq
Net assets acquired                      £                 £                 £

Intangible fixed assets            184,000        10,888,000        11,072,000
Current assets                     330,000                 -           330,000
Current liabilities               (156,000)                -          (156,000)
                                  --------        ----------        ----------
Net assets                         358,000        10,888,000        11,246,000
                                  --------        ----------        ----------
Consideration
Shares issued at par                                                11,246,000
                                                                    ----------

6.    The company was admitted to AIM on June 2nd 2004, and on the same date a
total of 33,681,823 shares were placed at 11p per share.

7.    The share premium account was used in its entirely to offset the placing
and admission costs.

8.    Reconciliation of Movement in Equity Shareholders' Funds

£'000's                                           Unaudited         Unaudited
                                             6 months ended    6 months ended
                                                  30-Sep-04         31-Mar-04

Loss for Period                                        (288)             (209)
Effect of currency exchange movements                     9                 -
Share Issue                                           3,705                 -
Expenses of share issue not shown in Profit
and Loss Account                                       (337)                -
                                                    -------           -------
Net increase / (decrease) in shareholders'
funds                                                 3,089              (209)
Opening Shareholders' Funds                          11,037            11,246
                                                    -------           -------
Closing Shareholders' Funds                          14,126            11,037
                                                    -------           -------

9.    Reconciliation of operating loss to operating cash flow

£'000's                                       Unaudited             Unaudited
                                         6 months ended        6 months ended
                                              30-Sep-04             31-Mar-04

Operating loss                                     (316)                 (208)
Increase in debtors                                 (79)                    9
Decrease in creditors                               (17)                  (51)
Share issue costs written off                        80                     -
Exchange difference                                   9                     -
                                                 -------               -------
Operating cash flow                                (323)                 (250)


The interim results are being posted to shareholders today and will be available
to the public, free of charge, from the offices of Seymour Pierce Limited, 
Bucklersbury House, 3 Queen Victoria Street, London EC4N 8EL.


                      This information is provided by RNS
            The company news service from the London Stock Exchange