Interim Results

Eurasia Mining PLC
30 September 2005

Eurasia Mining PLC


Interim Report 2005
Interim Statement

  • Drilling commences at West Kytlim
  • AngloGold Ashanti Strategic Alliance initiated
  • New Project areas identified

The first six months of 2005 have seen the first fruits of our re-orientation of
the Company. We have an exciting new joint venture with AngloGold Ashanti in
gold exploration based on our groundwork over the past eighteen months with
several specific prospects under joint investigation and negotiation. We have
continued to work with Anglo Platinum on our Urals platinum group metals (PGM)
joint venture and expect to report encouraging results from the initial work on
West Kytlim shortly. In addition we have expended a lot of effort in developing
a number of new projects of which shareholders will hear in the coming quarters.

The Urals (PGM)

The administrative delays that had held up our work for two years at West Kytlim
were resolved during the summer and field work commenced immediately. In this
project we are operating in conjunction with a Russian partner who is currently
producing platinum by means of dredging on another project nearby. Drilling is
underway as part of our feasibility study on the first of three target areas and
will continue through the winter. Together the targets are for a large potential
alluvial platinum resource, based on early results from the area. The target
areas comprise river terraces potentially containing un-mined platinum-bearing
sediments, as well as the 'tailings' of earlier mining operations that can be
reworked to recover residual platinum using modern processing technologies.

There are three drainage systems with potential for economic platinum
mineralization, two on the Tylai River and the other one on the Kosva. Previous
results have given values of up to 500 milligrams per cubic metre (mg/m3), well
above the 180 mg/m3 required to be economic. The first drilling programme
commenced on the upper reaches of the Tylai and will work down the valley over
the winter. In parallel, a bulk test sample is planned before the end of the
field season, both to assess the platinum potential of one of the targets and to
test the performance of a mobile concentrator rig constructed by the Eurasia
Urals team.

Next year the Kosva River will also form part of the feasibility study work.
Here the target will be for economic zones of partially worked sediments as well
as gravel terraces above the main valley which have not been worked in the past.
Most mined river systems have been worked three or more times in the past as
technology improved, but tailings at Kosva have only been reworked once
previously.

The Urals has been an important source of platinum metal over the past 150
years. The Urals was the largest producing area until the discovery of the
Bushveld and is estimated to have produced at least 16 million ounces over this
period. Production continues today from small producers. From EurasiaOs previous
assessment work, West Kytlim is the last area of major potential remaining in
the central Urals.

The alluvial programme in the Urals forms part of the Anglo Platinum joint
venture, in which Anglo is earning a 50% interest through funding work to
completion of a feasibility study.

Also in the Urals, the company has applied for a new reduced licence area to
cover the drill defined bedrock PGM and gold discoveries at Kluevsky and
Baronskoye. Assessment work on metallurgical and mining characteristics of
potential near surface bulk mineable low grade resources is underway.

East Siberia (Gold)

On 15th April 2005 Eurasia signed a Heads of Agreement for an exploration
alliance with AngloGold Ashanti Limited, the world's number two gold producer,
covering gold and related mineral exploration and possible development projects
in eastern Siberia. The alliance combines our country experience and exploration
management skills in the region with Anglo Gold Ashanti's resources.

The Eastern Siberian geological environment, particularly in the vicinity of the
intersection of the Siberian and Mongolia/China tectonic plate margins
represents one of the best endowed, yet least systematically explored regions of
the world for hard rock gold deposits. Historic production in the region was
dominated by placer mining of alluvial gold. Since the mid 20th Century a number
of large hard rock deposits have been explored and developed. Total resources in
these deposits, including previous production and known reserves, stands well in
excess of 65 million ounces, or 2,000 tonnes of Gold.

The new agreement gives Anglo Gold Ashanti the exclusive right to participate
in projects proposed by Eurasia, which has been appraising potential prospects
over a period of 18 months in conjunction with local companies and government in
the region. Anglo Gold Ashanti will pay an entry fee in recognition of Eurasia's
past costs, and fund the first $2 million of exploration spending. Subsequent
spending will be shared equally.

Our objective is to participate in the rapid advancement of a number of projects
towards feasibility study. The exploration alliance very considerably extends
the range and type of projects that Eurasia can gain a participation in, in this
highly prospective but increasingly more competitive environment for gold
project development. A number of projects are forming the core of our joint
activities this summer and we hope to update shareholders on success in the near
future.

Kola (PGM)

Eurasia is continuing its plan to acquire three exploration licences on the Kola
Peninsula in north-west Russia, where early exploration results indicate the
presence of potentially commercial grades of PGM. Negotiations have been
protracted and the Company will only agree to final acquisition terms that offer
good value for shareholders.

New Projects

For some time Eurasia has been working on the identification and acquisition of
advanced projects, which will provide a boost to the capitalization of the
company. These efforts are being made both independently and in conjunction with
Russian partners, focused on advanced projects at or near production. The
Company has invested considerable time and funds in the detailed evaluation of
several projects and we believe that this work will come to fruition in the
relatively near future. Your Board looks forward to being able to make
announcements of new developments at the earliest opportunity.

Michael Martineau
Chairman





29 September 2005




Consolidated Profit and Loss Account
For the six months ended 30 June 2005
                                                              6 months to   6 months to  12 months to
                                                                  30 June       30 June   31 December
                                                                     2005          2004          2004
                                                              (unaudited)   (unaudited)     (audited)
                                                                        £             £             £
Impairment of assets
continuing operations                                            (58,942)      (71,941)   (1,008,003)
discontinued operations                                                 -             -     (453,374)
                                                                 (58,942)      (71,941)   (1,461,377)

Other administrative expenses - continuing operations           (540,481)     (325,748)     (726,811)
Total administrative expenses and operating loss                (599,423)     (397,689)   (2,188,188)
Gain on disposal of subsidiaries

continuing operations                                                   -             -       569,627

discontinued operations                                                 -             -       199,992

                                                                        -             -       769,619

Loss after disposal of subsidiary
continuing operations                                           (599,423)     (397,689)   (1,165,187)
discontinued operations                                                 -             -     (253,382)
                                                                (599,423)     (397,689)   (1,418,569)
Net Interest (payable) / receivable & similar items
Net Interest receivable                                             4,554        10,079        12,763
Foreign exchange gain / (loss)                                     69,101       (8,575)      (82,002)
Loss on ordinary activities before taxation                     (525,768)     (396,185)   (1,487,808)

Taxation                                                                -             -             -
Loss on ordinary activities after taxation                      (525,768)     (396,185)   (1,487,808)
Minority interest                                                (11,481)         1,657        16,018
Retained loss for the period                                    (537,249)     (394,528)   (1,471,790)
Loss per share                                                    (0.57)p       (0.47)p       (1.74)p


Consolidated statement of total recognised gains and losses
For the six months ended 30 June 2005
                                                           6 months to   6 months to  12 months to
                                                               30 June       30 June   31 December
                                                                  2005          2004          2004
                                                           (unaudited)   (unaudited)     (audited)
                                                                     £             £             £
Loss for the financial period                                 (537,249)    (394,528) (1,471,790)
Exchange adjustments on foreign currency net investments       41,617       (11,665)    (88,511)
                                                               
Total recognised gains and losses for the period              (495,632)    (406,193) (1,560,301)



Shareholders' Funds
For the six months ended 30 June 2005

                                                          6 months to   6 months to  12 months to
                                                              30 June       30 June   31 December
                                                                 2005          2004          2004
                                                          (unaudited)   (unaudited)     (audited)
                                                                    £             £             £
Total recognised gains and losses for the                 (495,632)    (406,193)   (1,560,301)
period
New share capital issued                                    871,500            -        48,000

Net addition / (reduction) in shareholdersO funds           375,868    (406,193)   (1,512,301)
Opening shareholders' funds                               2,180,149    3,692,450     3,692,450

Closing shareholders' funds                               2,556,017    3,286,257     2,180,149


Consolidated Balance Sheet

As at 30 June 2005


                                                                 30 June 2005   31 December 2004
                                                                  (unaudited)          (audited)
                                                                            £                  £
Fixed assets
Intangible - exploration, development and production              1,383,275            1,316,485
interests
Tangible                                                             40,729               40,160
Interest in joint venture                                           670,680              628,280
Other investments                                                   110,059              154,018
Total fixed assets                                                2,204,743            2,138,943
Current assets

Debtors                                                             300,222              247,074
Cash at bank                                                        265,387               83,162
Total current assets                                                  565,609            330,236
Creditors - amounts falling due within one year                     (147,398)          (237,442)

Net current assets                                                    418,211             92,794


Total assets less current liabilities                               2,622,954          2,231,737


Creditors - amounts falling due after more than one year             (88,911)           (82,390)

Net assets                                                          2,534,043          2,148,447


Capital and reserves

Called-up share capital                                             5,188,086          4,250,586
Share premium account                                               7,034,374          7,100,374
Capital redemption reserve                                          3,539,906          3,539,906
Profit and loss account                                          (13,206,349)       (12,710,717)
Equity shareholdersO funds                                          2,556,017          2,180,149
Minority interest                                                    (21,974)           (31,702)

                                                                    2,534,043          2,148,447


Consolidated Cash Flow Statement

For the six months ended 30 June 2005
                                                              6 months to   6 months to  12 months to
                                                                  30 June       30 June   31 December
                                                                     2005          2004          2004
                                                              (unaudited)   (unaudited)     (audited)
                                                                        £             £             £

Net cash outflow from operating activities                      (680,188)     (368,586)     (697,149)
Returns on investments and servicing of finance                     4,554        10,079        12,763
Capital expenditure and financial investment                     (60,288)     (254,434)     (443,584)
Acquisitions and disposals                                         43,968             -       157,500
Net cash outflow before financing                               (691,954)     (612,941)  (970,470)
Financing:
Issue of ordinary shares                                          871,500             -        48,000
Increase / (decrease) in cash in the period                       179,546     (612,941)     (922,470)

Reconciliation of net cash flow to movement in net funds
Net funds at beginning of period                                   83,162     1,005,632     1,005,632
Change in net funds resulting from cash flows                     179,546     (612,941)     (922,470)
Exchange difference                                                 2,679             -             -
Net funds at end of period                                        265,387       392,691        83,162
Reconciliation of operating loss to operating cash flows
Operating loss                                                  (599,423)     (397,689)   (2,188,188)
Depreciation charges                                                2,561         7,030        46,139
Impairment charge                                                  58,942        71,941     1,461,377
(Increase)/decrease in debtors                                   (52,076)      (55,441)      (27,960)
Increase/(decrease) in creditors                                 (90,192)         5,573        11,483
Net cash outflow from operating activities                      (680,188)     (368,586)     (697,149)


Notes:

1    No dividend is proposed in respect of the period.

2    The results for the period are derived from continuing activities.

3    The calculations of loss per share have been based on the retained loss
after taxation for the period and on a weighted average of 94,210,224 ordinary
shares in issue during the period.

4    The unaudited results have been prepared on a going concern basis and on
the basis of the accounting policies adopted in the audited accounts for the
year ended 31 December 2004.

5    The interim report is unaudited and does not constitute Statutory Accounts
as defined in section 240 of the Companies Act 1985.  A copy of the GroupOs 2004
Statutory Accounts has been filed with the Registrar of Companies.  The
auditorsO opinion on these Statutory Accounts was unqualified.

6    The Interim Report for the six months to 30 June 2005 was approved by the
Directors on 29September 2005.



Company Information                                       Advisers

Directors                                                 Auditors

J A Mitchell          (Non Executive Chairman)            Grant Thornton UK LLP
M P Martineau         (Executive Deputy Chairman)         Manor Court
C Schaffalitzky       (Managing Director)                 Barnes Wallis Road
                                                          Segensworth
W B Anderson          (Operations Director)               Fareham
G C Fitzgerald        (Non Executive)                     Hampshire PO15 5GT
                                                          
Secretary
                                                          Registrars

M J de Villiers                                           Capita IRG Plc
                                                          The Registry
                                                          34 Beckenham Road
                                                          Beckenham
Head Office and Registered Office                         Kent BR3 4TU
                                                          
14-16 Regent Street
London SW1Y 4PH
Telephone: [phone]
Facsimile: [phone]                           Bankers
E-mail: [e-mail]                        National Westminster Bank plc
www.eurasia-mining.plc.uk                                 1 Princes Street
                                                          London EC2R 8PH
Russian Office

194 Lunacharsky Street                                    Solicitors
Ekaterinburg                                              Eversheds LLP
Russia                                                    Senator House
Telephone: +(7) 3432 615187                               85 Queen Victoria Street
Facsimile: +(7) 3432 615924                               London EC4V 4JL
                                                          
Company Number 3010091


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