Half Yearly Report

RNS Number : 1425Q

Golden Prospect Precious Metals Ltd

13 October 2011

GOLDEN PROSPECT PRECIOUS METALS LIMITED

("Golden Prospect" "GPPM" or "the Company")

Interim Report and Financial Statements

for the period ended 30 June 2011

Golden Prospect Precious Metals Limited today announces its interim results for the six-month period ended 30 June 2011.

Highlights

· GPPM NAV outperformance of Philadelphia Gold and Silver index (-7.5% versus -11.2%) for period

Post Period Highlights

• One for two bonus issue of subscription shares to all shareholders of the Company

o Provides an instrument which may be traded on-market and gives shareholders the opportunity to participate in any future net asset growth of the Company

• Intention to raise up to £115 million (gross) via the placing of New Ordinary Shares

o Net proceeds will be invested in accordance with the Company's investment objective

The fund's objective is to provide investors with capital growth, from a portfolio of companies involved in the precious metals sector. The Interim Report will shortly be circulated to shareholders and will also be available on the investment manager's website at http://www.ncim.co.uk/gppm_top.php

Malcolm Burne, Chairman of CPPM, commented:

"I am extremely encouraged with Golden Prospect's performance over the period. We have seen a significant downward correction in financial and investment markets, particularly in the last few months and this has created a challenging and volatile environment in which to operate. However, I believe that the outlook for gold and gold shares for the second half of the year remains very encouraging. Against the backdrop of higher gold prices, it is expected that gold mining companies will start producing increased cash flows and profits as their margins expand. I expect this to have a positive impact on the Company by way of larger dividend payouts and increasing premium values as a result of greater M&A activity. This combined with the Proposed Placing, puts Golden Prospect in a strong position for the foreseeable future."

Enquiries:

Legis Fund Services Limited

Hannah Girard

Tel: +44(0) 1481 732 191

Singer Capital Markets Limited

James Maxwell

Jennifer Wyllie

Tel: +44(0) 20 3205 7500

Threadneedle Communications

Beth Harris

Tel: +44(0) 20 7653 9855

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