Statement re International Financial Reporting ...

BISICHI MINING PLC                               

Bisichi Mining PLC announces that the effect of International Financial 
Reporting Standard on its financial reporting are as follows:

Introduction

On 7 June 2002, the European Parliament approved a Regulation requiring all
listed companies in the European Union to prepare consolidated financial
statements under International Financial Reporting Standards ('IFRS') for
financial periods beginning on or after 1 January 2005. Bisichi Mining PLC
('Bisichi') will report its results under IFRS for the year ending 31 December
2005; its first results to be reported under the new standards will be for the
six months ended 30 June 2005.

In order to comply with IFRS, Bisichi will need to provide comparative numbers.
The purpose of this paper is to show how balance sheets and income statements
previously prepared under UK generally accepted accounting practice ('UK GAAP')
will change under IFRS, and to explain the adjustments to reconcile the figures
from one basis of accounting to the other. The main reconciling items and their
effects on the balance sheet and income statement are set out as follows:

Appendix 1 - Balance Sheet at 31 December 2004

Appendix 2 - Income Statement for the year ended 31 December 2004

Appendix 3 - Balance Sheet at 30 June 2004

Appendix 4 - Income Statement for the six months ended 30 June 2004

Basis of Preparation

The figures have been restated on the basis of our interpretation of all IFRS
currently applicable, and are unaudited. It is possible that conventions which
differ from our current interpretation will evolve within our sector, and
International Financial Reporting Standards are subject to ongoing amendment;
accordingly, the amounts disclosed in this paper may be subject to revision.

Key Changes

The main differences between UK GAAP and IFRS for the financial statements
under

review are:

  * Property revaluations - surpluses or deficits on investment property
    revaluations are shown on the face of the income statement rather than as a
    movement in reserves; only a valuation movement above the cost of a
    development property is still taken direct to the revaluation reserve;
   
  * Financial instruments - the fair value of derivatives are recorded in the
    balance sheet and the movement in their value is taken to reserves or to
    the income statement;
   
  * Share based payments - In accordance with IFRS 2 'Share Based Payment',
    Bisichi has recognised a charge to the income statement representing the
    fair value of outstanding share options granted. The fair value of
    outstanding share options granted has been calculated using the Binomial
    options valuation model. The fair value is charged to income over the
    relevant option's vesting period, adjusted to reflect actual and expected
    levels of vesting;
   
  * Events after the balance sheet date - a proposed dividend is no longer
    considered to be an adjusting post-balance sheet event, but is instead a
    deduction from reserves in the year in which it is paid; and
   
  * Deferred tax - contingent capital gains tax implicit within a property
    valuation is accrued as a deferred tax liability.
   
Transitional arrangements

IFRS 1 'First-time Adoption of International Financial Reporting Standards'
sets out the procedures that the Group must follow when it adopts IFRS for the
first time as the basis for preparing its consolidated financial statements. In
general, the Group is required to determine its IFRS accounting policies and
apply these retrospectively to determine its opening balance sheet as at 1
January 2004 ('the transition date') under IFRS. The standard allows a number
of exceptions to this general principle to assist groups in the transition to
reporting under IFRS. Where Bisichi has taken advantage of these exemptions
they are noted below.

  * Business Combinations that occurred before the opening IFRS balance sheet
    date (IFRS 3 'Business Combinations').
   
Bisichi has elected not to apply IFRS 3 retrospectively to business
combinations that took place before the date of 1 January 2004. As a result,
all prior business combination accounting has been frozen at the transition
date. This includes any goodwill that was previously recognised as a deduction
from equity.

  * Share-based Payments (IFRS 2 'Share-based Payment')
   
Bisichi has elected only to apply IFRS 2 to all share option schemes where
options have been granted since 7 November 2002 and were not fully vested at 1
January 2005.

  * Exchange differences arising on consolidation (IAS 21 'Foreign Currencies')
   
Bisichi has elected to deem the cumulative amount of exchange differences
arising on consolidation of the net investments in subsidiaries at 1 January
2004 to be zero.

  * Financial Instruments: Recognition and Measurement (IAS 39)
   
The comparative periods have not been restated for IAS39, particularly in
respect of derivative financial instruments. The fair value of these
instruments at the start of 2005 was passed through reserves, and the
subsequent movement in the first half of 2005 is reported in the group income
statement. The group has not applied the hedge accounting treatment that would
allow such movements to be deferred in equity.

Presentation of Financial Statements

Under IFRS, the profit and loss account is renamed the income statement, but
there is no set format or layout of financial statements prepared under IFRS
akin to those of Schedule 4 Companies Act 1985; these will develop over time
through industry practice. Accordingly, the presentations set out in Appendices
1 to 4 do not necessarily represent how the income statements and balance
sheets will look, but have been designed to demonstrate as clearly as possible
the specific differences between UK GAAP and IFRS.

Performance Reporting

The effect of adopting IFRS as at 31 December 2004, and for the year then
ended, on our key performance measures are set out below:

Cash Flow

The introduction of IFRS will not affect the cash flows of the business. The
presentation of the cash flow statement for Bisichi will not differ
significantly from that under UK GAAP and, therefore, an analysis of the cash
flow statement does not fall within the scope of this paper.

Taxation

As the financial statements of Bisichi and each of its subsidiary undertakings
will continue to be prepared under UK GAAP or South African GAAP as
appropriate, the introduction of IFRS will have no impact on the taxation
status or tax payments of the Group.

Contact:

Bisichi Mining plc

Robert Corry 020 7415 5030

Bisichi Mining Plc Appendix 1

Adoption of IFRS

Consolidated balance sheet

                        31 December 2004           IFRS Notes       31 December
                                                                           2004
                                 UK GAAP    Adjustments                    IFRS
                                   £'000          £'000                   £'000
                                                                               
Assets                                                                         
                                                                               
Non-current assets                                                             
                                                                               
Value of properties               14,990                                 14,990
attributable to group                                                          
                                                                               
Fair value of head                     -            343    2                343
lease                                                                          
                                                                               
Property                          14,990            343                  15,333
                                                                               
Plant and equipment                5,046                                  5,046
                                                                               
Investments in joint               1,536                   8              1,536
ventures                                                                       
                                                                               
Other investments                    384                                    384
                                                                               
Deferred tax                                        243    3                243
                                                                               
                                  ______                                 ______
                                                                               
Total non-current                 21,956                                 22,542
assets                                                                         
                                                                               
Current assets                                                                 
                                                                               
Inventories                           36                                     36
                                                                               
Trade and other                    2,776          (243)    3              2,533
receivables                                                                    
                                                                               
Financial assets -                   403                                    403
held for trading                                                               
investments                                                                    
                                                                               
Cash and cash                        950                                    950
equivalents                                                                    
                                                                               
                                   4,165                                  3,922
                                                                               
Liabilities                                                                    
                                                                               
Current liabilities                                                            
                                                                               
Financial liabilities                                                          
                                                                               
- Borrowings                     (1,490)                                (1,490)
                                                                               
Trade and other                  (3,838)            209    5            (3,629)
payables                                                                       
                                                                               
Current tax                        (315)                                  (315)
liabilities                                                                    
                                                                               
                                 (5,643)                                (5,434)
                                                                               
Non-current                                                                    
liabilities                                                                    
                                                                               
Financial liabilities                                                          
                                                                               
- borrowings                     (5,580)                                (5,580)
                                                                               
Provisions                             -          (343)    2              (343)
                                                                               
Deferred tax                        (58)        (1,990)    3            (2,048)
                                                                               
Net assets                        14,840        (1,781)                  13,059
                                                                               
                                                                               
                                                                               
Equity                                                                         
                                                                               
Share capital                      1,045                                  1,045
                                                                               
Revaluation reserve                9,663        (9,663)    2                  -
                                                                               
Share option reserve                   -              6    6                  6
                                                                               
Translation reserve                    -            278    7                278
                                                                               
Other reserves                        86                                     86
                                                                               
Retained earnings                  3,712          7,598                  11,310
                                                                               
                                  14,506        (1,781)                  12,725
                                                                               
Minority interest                    334         ______                     334
                                                                               
                                  14,840        (1,781)                  13,059
                                                                               
                                                                               

Bisichi Mining Plc Appendix 2

Adoption of IFRS

Income statement for the year ended 31 December 2004

                                Year ended          IFRS Notes    Year ended
                               31 December   Adjustments         31 December
                                      2004                              2004
                                                                            
                                   UK GAAP                              IFRS
                                                                            
                                     £'000         £'000               £'000
                                                                            
Group & share of joint              13,267                            13,267
venture turnover                                                            
                                                                            
Less: joint ventures               (1,719)                           (1,719)
                                                                            
                                                                            
                                                                            
Group turnover                      11,548                            11,548
                                                                            
Operating costs                    (9,164)            47    1        (9,117)
                                                                            
                                                                            
                                                                            
Operating profit before              2,384                             2,431
adjustments                                                                 
                                                                            
Increase in value of                     -         1,868    2          1,868
investment property - Group                                                 
                                                                            
- Joint venture                                      192    2            192
                                                                            
Share based payments charge              -           (6)    6            (6)
                                                                            
Share of operating (loss)/            (34)                              (34)
profit in joint venture                                                     
                                                                            
Interest receivable                     25                                25
                                                                            
Interest payable                     (399)                             (399)
                                                                            
                                                                            
                                                                            
Profit before taxation               1,976         2,101               4,077
                                                                            
Taxation - Group                     (300)         (488)    3          (788)
                                                                            
- Joint venture                        (7)             -                 (7)
                                                                            
                                                                            
                                                                            
Profit after taxation                1,669         1,613               3,282
                                                                            
Minority interest                    (437)             -               (437)
                                                                            
                                                                            
                                                                            
Profit for the financial             1,232         1,613               2,845
year                                                                        
                                                                            
Dividend                             (209)           209    5              -
                                                                            
                                                                            
                                                                            
Retained profit for the              1,023         1,822               2,845
financial year                                                              
                                                                            
                                                                            
                                                                            

Bisichi Mining Appendix 3

Adoption of IFRS

Consolidated balance sheet

                             30 June 2004           IFRS Notes     30 June 2004
                                  UK GAAP    Adjustments                   IFRS
                                                                               
                                    £'000          £'000                  £'000
                                                                               
Assets                                                                         
                                                                               
Non-current assets                                                             
                                                                               
Goodwill                                5            (5)    1                 -
                                                                               
Value of properties                13,092                                13,092
attributable to group                                                          
                                                                               
Fair value of head lease                -            359    2               359
                                                                               
Property                           13,092            359                 13,451
                                                                               
Plant and equipment                 3,814                                 3,814
                                                                               
Investments in joint                1,442                   8             1,442
ventures                                                                       
                                                                               
Other investments                     352                                   352
                                                                               
Deferred tax                            -            232    3               232
                                                                               
                                   ______                                ______
                                                                               
Total non-current assets           18,705                                19,291
                                                                               
Current assets                                                                 
                                                                               
Inventories                            33                                    33
                                                                               
Trade and other                     2,259          (232)    3             2,027
receivables                                                                    
                                                                               
Financial assets - held               453                                   453
for trading investments                                                        
                                                                               
Cash and cash equivalents             246                                   246
                                                                               
                                    2,991                                 2,759
                                                                               
Liabilities                                                                    
                                                                               
Current liabilities                                                            
                                                                               
Financial liabilities                                                          
                                                                               
- borrowings                        (608)                                 (608)
                                                                               
Deferred tax liabilities                -                                     -
                                                                               
Trade and other payables          (4,214)                               (4,214)
                                                                               
Current tax liabilities             (621)                                 (621)
                                                                               
                                   ______                                ______
                                                                               
                                  (5,443)                               (5,443)
                                                                               
Non-current liabilities                                                        
                                                                               
Financial liabilities                                                          
                                                                               
- Borrowings                      (4,523)                               (4,523)
                                                                               
Provisions                              -          (359)    2             (359)
                                                                               
Deferred tax                         (56)        (1,524)    3           (1,580)
                                                                               
Net assets                         11,674        (1,529)                 10,145
                                                                               
                                                                               
                                                                               
Capital & reserves                                                             
                                                                               
Share capital                       1,045                                 1,045
                                                                               
Revaluation reserve                 7,573        (7,573)    2                 -
                                                                               
Share option reserve                    -                                     -
                                                                               
Translation reserve                     -            147    7               147
                                                                               
Other reserves                         86                                    86
                                                                               
Retained earnings                   3,110          5,897                  9,007
                                                                               
Total shareholders' equity         11,814          1,529                 10,285
                                                                               
Minority interest                   (140)        _____ _                  (140)
                                                                               
                                   11,674        (1,529)                 10,145
                                                                               
                                                                               

Bisichi Mining Plc Appendix 4

Adoption of IFRS

Income statement for the six months ended 30 June 2004

                              Six months            IFRS Notes       Six months
                                   ended                                  ended
                                             Adjustments                       
                            30 June 2004                           30 June 2004
                                                                               
                                 UK GAAP                                   IFRS
                                                                               
                                   £'000           £'000                  £'000
                                                                               
Group & share of joint             5,117                                  5,117
venture turnover                                                               
                                                                               
Less: joint ventures                   -                                      -
                                                                               
Group Turnover                     5,117                                  5,117
                                                                               
                                                                               
                                                                               
Operating costs                  (4,234)              42    1           (4,192)
                                                                               
                                                                               
                                                                               
Operating profit                     883                                    925
                                                                               
Share of operating                    45                                     45
(loss)/profit in joint                                                         
venture                                                                        
                                                                               
Interest receivable                    8                                      8
                                                                               
Interest payable                   (210)                                  (210)
                                                                               
                                                                               
                                                                               
Profit before taxation               726              42                    768
                                                                               
Taxation - Group                   (234)                                  (234)
                                                                               
- Joint venture                     (10)                                   (10)
                                                                               
Profit after Taxation                482              42                    524
                                                                               
Minority interest                     16                                     16
                                                                               
                                                                               
                                                                               
Profit for the Financial             498              42                    540
Year                                                                           
                                                                               
Dividend                               -           (188)    5             (188)
                                                                               
                                                                               
                                                                               
Retained Profit for the              498           (146)                    352
financial year                                                                 
                                                                               
                                                                               
                                                                               

Bisichi Mining Plc

Adoption of IFRS

Notes

1 Goodwill

On the transition to International Financial Reporting Standards, the company
reviewed the carrying value of its goodwill at 1 January 2004 and determined
that the unamortized balance should be written down to zero as at that date.

2 Revaluation surplus reported in the group income statement

IAS40, Investment Property, requires that the surplus or deficit on the
revaluation of investment properties is reported in the group income statement.
This includes the revaluation of the group's investment properties, and, for
2004, the group's share of the revaluation surplus on a property held in a
joint venture

The group balance sheet in appendices 1 and 3 show the consequent
reclassification of the UK GAAP revaluation reserve to the retained profit
reserve. This change in accounting will not affect distributable reserves.

Previously, revaluation surpluses or deficits, to the extent that any deficit
was not permanent, were reported as a movement in the revaluation reserve.

Deferred tax previously classified as debtors falling due in more than one year
are reported as non-current assets.

3 Deferredtax on the revaluation surplus reported as part of the tax charge

IAS12, Income Taxes, requires a provision for the tax that would be payable if
the portfolio was sold. This is included within deferred tax and is a reduction
in net assets. The movement in this provision in any reporting period is
reported as part of the tax charge in the group income statement.

Previously under UK GAAP, FRS19, Deferred Tax, specifically prohibited this
provision being made.

4 Fair value of derivative financial instruments

IAS39, Financial Instruments: Recognition and Measurement, requires the
interest rate hedging instruments, which the group uses to manage interest rate
risk, to be carried at fair value. Movements in fair value are reported in the
group income statement. The hedge accounting treatment that would allow such
movements to be deferred in equity has not been applied.

Previously, the fair value of these financial instruments was only disclosed in
the notes to the financial statements.

Listed investments which were previously held at cost have been revalued under
the requirements of IAS 39 to fair value at the balance sheet date.

The group has taken advantage of the provisions of IAS 39 which permit
prospective application of this standard from 1 January 2005.

5 Dividends not declared by the period end

IAS10, Events after the Balance Sheet Date, requires that dividends not
declared by the end of the accounting period are excluded from the results.
Previously, dividends declared after the end of the accounting period were
included as a deduction from profit for the period.

6 Share option expense

IFRS2, Share-based Payment, requires an expense to be reported in the group
income statement, based on the fair value of the options granted to directors
and employees of the group, to be spread over the vesting period of the
options. The group has taken advantage of the exemption allowed by IFRS1,
First-time adoption of IFRS, to only apply this to options granted after 7th
November 2002 and which were not fully vested at 1 January 2005.

7 Foreign currency translation

IAS 21, The effects of changes in foreign exchange rates, requires net exchange
differences arising on the translation of foreign entities to be separately
tracked within equity and the cumulative amounts disclosed. The group has taken
advantage of the exemption allowed by IFRS 1 to deem the cumulative exchange
adjustment at 1 January 2004 to be zero.

8 Joint ventures single line equity accounting

This is a presentational change only. The interest in, and share of results of,
joint ventures is shown as a single line in the income statement and on the
group balance sheet, including the group's share of the revaluation surplus.