Geiger Counter Ltd : Release of Interim Account...

GEIGER COUNTER LIMITED

Date of Announcement: 11/06/2012

RELEASE OF INTERIM REPORT AND FINANCIAL STATEMENTS

The Directors announce the release of the Interim Report and Financial Statements for the Six Months to 31 March 2012.

CHAIRMAN'S STATEMENT

Your Company's net asset value ended the six month period under review unchanged at 68 pence
per share; its share price fell by 7% as the discount at which its shares trade to net asset value widened somewhat.

These bald facts do not do justice to a period that showed real promise, only to end in a disappointment that has deepened since the quarter end.

It was not until the start of 2012 that we left the post-Fukushima lows behind us, but in January and
February better world economic news coincided with a marked change in sentiment towards uranium
and uranium mining stocks and the Company's net asset value responded strongly. It increased by
more than 20% in January, and the long awaited consummation of the apparently interminable
Chinese Kalahari romance in February saw further progress and seemed to mark a turning point.

March saw renewed weakness, however, a weakness that was especially frustrating because it
attached so little to the fundamentals of the uranium space and so much to the macro backdrop,
with mixed news from China, renewed doubt over the strength of the US recovery and, above all, the
renewal of the eurozone crisis dragging markets lower.

There is encouragement to be found. Through it all the uranium spot price has remained virtually
unchanged at a little over USD50/lb, and it feels as though a firm floor has been established. Japan's
last operating nuclear reactor may have been closed for compulsory inspection, but there is increasing evidence of local government support for a programme of plant re-opening; it remains Germany's stated intention to close its nuclear plants, but Frau Merkel has yet to indicate the source of the replacement power, and if M Hollande is less than supportive of older nuclear technologies, he has re-stated his support for the new EPR and Generation IV fast breeder projects. China's commitment to the nuclear project remains unshakeable, and closer to home it is interesting to note that Turkey has entered into collaboration with an enthusiastic China to develop a nuclear programme.

A short term dominated by fears of a worldwide recession originating in the eurozone may present an
unpromising backdrop, but the reality is that nuclear power remains attractive to any country without
other traditional energy resources. The medium term case for the Company's focus on the uranium industry remains as valid as ever, while the authority granted by shareholders to diversify up to 30% of our assets into other resource related activities is particularly useful at times like the present.

George Baird

Chairman
8 June 2012
INVESTMENT ADVISER'S REPORT

As I look back over the last six months, the uranium space has been incredibly interesting. There are
some key things which I would like to highlight.

The back drop for the last six months has been poor for equity and other risk markets. However, when
looking at uranium prices, they have been encouraging, holding steady around USD52/lb. The term prices eased but they stabilised at USD60/lb over the last 3 months.

The macro news over that period has also been reasonably positive for uranium. We have seen positive news out of Australia, where the Queensland state election threw out the incumbent Australian Labour Party, which has impeded the permitting of uranium mining for the state. Instead, the Liberal National Party was elected and they are pro-uranium mining. In Japan, the country shut down the remaining nuclear power stations as part of safety reviews. Whilst this could be perceived as negative, a country which generates 30% of its power needs from nuclear, is unlikely to keep the power stations turned off especially as it approaches the summer which is a time of peak power demand. I would expect to hear the re-start of the nuclear power stations soon in Japan which could see an improvement in the spot prices of uranium as they re-start their buying programmes.

In the M&A space, Cameco made a bid for Hathor, a uranium explorer in the Athabasca Basin.
Cameco were unsuccessful in their approach as Rio Tinto came in with a higher counter bid. Extract
Resources was also successful in obtaining a mining licence for their project in Namibia. Subsequent
to that announcement, China Guangdong Nuclear Power Group made an offer for Kalahari and a
compulsory offer for Extract Resources. What these two cases demonstrate is an appetite for good
quality assets. It is likely that further deals will take place, particularly as the issue of security of supply
and access to long term supply becomes an increasing focus of market participants.

In individual company news, we continue to see progress made by companies in improving their
specific positions. We have seen US uranium plays make progress in licensing. For example, Ur-Energy and Uranerz got closer to the finish line in obtaining licenses. We also noted the rational re-structuring of assets by companies. Denison has sold their US producing assets together with their mill to Energy Fuels. This is a great move, as it helps Energy Fuels to accelerate their production schedule as they no longer need to permit a mill but use the one from Denison.

In summary, while equity markets may not have rewarded these improvements, eventually value
will out. Fukushima still casts a shadow yet green shoots are appearing everywhere. Perhaps spring is approaching.

John Wong

CQS Asset Management Limited
8 June 2012
   

For further information, please contact:

Lisa Neil
New City Energy Limited
Telephone number: [phone]
Email: [e-mail]

Beth Harris
Threadneedle Communications
Telephone number: [phone]
Email: [e-mail]

Interim Accounts

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Source: Geiger Counter Ltd via Thomson Reuters ONE

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