Final Results

Rambler Metals & Mining PLC 24 October 2005 RAMBLER METALS AND MINING PLC PRELIMINARY RESULTS FOR THE PERIOD ENDED 31 AUGUST 2005 I am very pleased to be able to write this inaugural Chairman's overview of Rambler Metals and Mining PLC ('Rambler' or the 'Company') for the period ended 31 August 2005. The Company, which quoted its shares on London's AIM market in April 2005, was founded in 2004 to explore and develop base metals projects located principally in countries and regions that have mining traditions and low political risk. The Company's strategy is guided by it's view that over the medium term the resource industry will retreat to countries that can provide the stability required to deliver appropriate long term returns in a cyclical industry. The Company's Directors have a range of experience in the natural resource and mining sector that includes exploration, mining and marketing, as well as experience in the legal and corporate finance areas. The Company was fortunate to include in its founding Altius Minerals Corporation ('Altius'), a Newfoundland and Labrador based mining company, which contributed to the Company's asset base with an option to acquire and develop the Rambler copper and gold property in Newfoundland and Labrador, Canada. The Rambler property had been a former copper and gold producer that ceased production when the deposit reached a then third-party property boundary. The neighbouring property was subsequently consolidated with the original mine property and acquired by Altius before being brought into the Company. The Company is encouraged by the substantial existing infrastructure and support available to the Rambler project as these factors could allow mining, if ultimately warranted by results, to begin more quickly and cost-effectively than competing projects that are less favourably located. Existing underground infrastructure includes a shaft and a decline, power and roads are in place and a port is nearby. Adjacent towns, including Baie Verte, have a long history and culture of mining and available workforces. Community and provincial government based responses to the initiatives of the Company to date have been positive and supportive. Operational Between the years of 2001 and 2004, several deep drilling programs designed by Altius probed the deposit with encouraging results. In spring of 2005, following the quotation of Rambler, the Company commenced a 28,000 meter drill program to follow up on these results and other exploration targets. We have now completed the drilling of the first 10,500 meters of this program and we are pleased to report that to date the drill program is on budget and ahead of schedule. To date the drill holes have attempted to delineate the potential broader scope of the mineralizing system as per the recommendations in the Competent Person's Report that was prepared in advance of the Company's listing. Much of the remainder of the first phase drilling program will focus on more detailed drilling of the projected main mineralization trend, including both the Ming massive sulphide deposit (gold and copper) and the Ming Footwall deposit (copper). Only two of the holes completed during this phase have been drilled within the projected mineralization trend and both have encountered thick intersections of copper mineralization from the Footwall Zone including highlight intersections of 40 feet at 1.92 per cent copper and 0.19 grams per tonne gold from hole 8 and 23 feet at 1.62 per cent copper and 0.17 grams of gold per tonne from hole 9). These results are comparable with mineralization encountered in two shallower tests of this trend (holes 3 and 4) last year and described in the Company's AIM Admission Document dated 31 March 2005. One of these holes also encountered five separate intervals of massive sulphide mineralization along the Ming massive sulphide deposit. The presence of five zones of massive sulphide mineralization was unexpected based upon historical results as was the much higher than usual gold grades associated with some of the mineralization. A best interval of 19.5 feet at 1.70 percent copper and 7.3 grams per tonne gold was returned from hole 8. Ongoing geophysical surveys and drilling should allow effective testing of the potential of this gold-rich mineralization as part of the remaining stage 1 drilling program. In view of the regional scoping part of the phase 1 drilling program having advanced ahead of schedule, the Company has accordingly advanced its decision making timeline with respect to undertaking the more detailed stages of delineation of the project's copper and gold mineralization. It is presently evaluating the options of surface based directional drilling and / or dewatering the old mine to facilitate underground drilling. Both options should facilitate quicker evaluation of the mineralization by limiting the amount of cover rock that is required to be drilled per test. Financial The consolidated net loss after taxation of the Company in respect of the period ended 31 August 2005 amounted to Â£31,313 (a loss per share of 0.2p). The Company's only source of income during the period was bank deposit interest, which amounted to Â£103,743. The net assets of the Company amounted to Â£7,823,628 as at the period end which includes intangible assets amounting to Â£1,096,817. Intangible assets consists of accumulated deferred exploration expenditures in the Company's copper gold Rambler property. The Company's policy is to capitalize these costs pending determination of the feasibility of the project. In April 2005, in conjunction with the Company's quotation on the AIM market in London, the Company completed a private placement of shares with institutional and other investors to raise Â£8 million before expenses. During the year it has become increasingly obvious that, in a climate of rising metal prices, the mining industry as a whole has found itself facing shortages of equipment and trained personnel, which it will have difficulty overcoming in the short term. On a personal note I would like to give my thanks for the hard work of the Altius exploration staff and the officers and directors of the Company who have tackled many of these problems over the past year with a large measure of success. D H W DOBSON CHAIRMAN PRELIMINARY STATEMENT This preliminary statement was approved by the Board of Directors on 21 October 2005 and has been agreed by the auditors. It does not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985. The statutory accounts will be sent to shareholders shortly and will be filed following the Company's Annual General Meeting. The Auditors have reported on these accounts; their report is unqualified and does not contain statements under section 237(2) or (3) of the Companies Act 1985. GROUP PROFIT AND LOSS ACCOUNT PERIOD FROM 14 APRIL 2004 TO 31 AUGUST 2005 Period from 14 Apr 04 to 31 Aug 05 Â£ GROUP TURNOVER - Administrative expenses 135,056 ------------------------------------ OPERATING LOSS (135,056) Interest receivable 103,743 ------------------------------------ LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION (31,313) Tax on loss on ordinary activities - ------------------------------- RETAINED LOSS FOR THE FINANCIAL PERIOD (31,313) =============================== Earnings per share (pence) - basic and diluted (Note 3) (0.2) ==================== All of the activities of the group are classed as continuing. GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES PERIOD FROM 14 APRIL 2004 TO 31 AUGUST 2005 Period from 14 Apr 04 to 31 Aug 05 Â£ Loss for the financial period (31,313) Foreign exchange gains and losses 170,026 ------------------------------------ Total recognised gains and losses for the financial period 138,713 ==================================== GROUP BALANCE SHEET 31 AUGUST 2005 31 Aug 05 Â£ Â£ FIXED ASSETS Intangible assets 1,096,817 CURRENT ASSETS Debtors 152,251 Investments 6,865,272 Cash at bank 40,648 ---------------------------------------------- 7,058,171 CREDITORS: Amounts falling due within one 331,350 year ---------------------------------------------- NET CURRENT ASSETS 6,726,821 ---------------- TOTAL ASSETS LESS CURRENT LIABILITIES 7,823,638 ================ CAPITAL AND RESERVES Called-up share capital 400,300 Share premium account 7,164,625 Other reserves 120,000 Profit and loss account 138,713 ---------------- EQUITY SHAREHOLDERS' FUNDS 7,823,638 ================ GROUP CASH FLOW STATEMENT PERIOD FROM 14 APRIL 2004 TO 31 AUGUST 2005 Period from 14 Apr 04 to 31 Aug 05 Â£ Â£ NET CASH OUTFLOW FROM OPERATING ACTIVITIES (159,302) RETURNS ON INVESTMENTS AND SERVICING OF FINANCE Interest received 73,094 ------------- NET CASH INFLOW FROM RETURNS ON INVESTMENTS AND SERVICING OF FINANCE 73,094 CAPITAL EXPENDITURE Payments to acquire intangible fixed assets (557,758) ------------- NET CASH OUTFLOW FROM CAPITAL EXPENDITURE (557,758) ACQUISITIONS Purchase of 51190 Newfoundland and Labrador Inc (65,065) ------------- NET CASH OUTFLOW FROM ACQUISITIONS (65,065) ------------- CASH OUTFLOW BEFORE USE OF LIQUID RESOURCES AND FINANCING (709,031) MANAGEMENT OF LIQUID RESOURCES Cash placed in other liquid investments (6,865,272) ------------- NET CASH OUTFLOW FROM MANAGEMENT OF LIQUID RESOURCES (6,865,272) FINANCING Issue of equity share capital 7,444,925 ------------- NET CASH INFLOW FROM FINANCING 7,444,925 ------------- NET CASH OUTFLOW IN PERIOD (Notes 4 and 5) (129,378) ============= RECONCILIATION OF OPERATING LOSS TO NET CASH OUTFLOW FROM OPERATING ACTIVITIES Period from 14 Apr 04 to 31 Aug 05 Â£ Operating loss (135,056) Increase in debtors (121,602) Increase in creditors 97,356 ------------------------------------ Net cash outflow from operating activities (159,302) ==================================== 1. Nature of operations and going concern The Company is in an early stage of development, and while it currently has significant cash resources, it does not generate any significant revenues and its success will depend largely upon the outcome of its exploration and evaluation programmes. In April 2005, the Company completed a public placing of its shares and was admitted to trade on AIM. The placing raised Â£8,000,000, before expenses, through the issue of 16,000,000 ordinary shares at 50p per share. The Directors currently believe that the Company has sufficient finance to fund the planned exploration project and its general overheads to the end of 2006. The Company may require, in due course, additional finance for its operations. 2. ACCOUNTING POLICIES (a) Basis of accounting The financial statements have been prepared under the historical cost convention, and in accordance with applicable accounting standards. (b) Basis of consolidation and accounting for goodwill The Group accounts consolidate the accounts of Rambler Metals and Mining PLC and all its subsidiary undertakings. The acquisition method of accounting is adopted where relevant conditions are fulfilled. The purchase consideration is allocated to the assets and liabilities on the basis of fair value at the date of acquisition. Goodwill arising on consolidation is capitalised and shown within fixed assets. Amortisation of goodwill arising from the acquisitions is deferred until production occurs, when it will be charged over the expected production period of the project. Where a project is abandoned or is determined to not be economically viable, the goodwill is written off. The acquisition by the Company of Rambler Mines Limited in February 2005 was accounted for in accordance with the principles of merger accounting set out in FRS 6 on 'Acquisitions and Mergers'. Accordingly, the consolidated financial statements include the results of the Company since incorporation on 14 April 2004 and are presented as if Rambler Mines Limited had been controlled by the Company throughout the period from its incorporation. (c) Deferred exploration and evaluation costs These comprise costs directly incurred in exploration and evaluation as well as the cost of mineral licences. They are capitalised as intangible assets pending determination of the feasibility of the project. When the existence of economically recoverable reserves is established the related intangible assets are transferred to tangible fixed assets and the exploration and evaluation costs are amortised on a depletion percentage basis. Where a project is abandoned or is determined to not be economically viable, the related costs are written off. The recoverability of deferred exploration and evaluation costs is dependent upon a number of factors common to the natural resource sector. These include the extent to which the Company can establish economically recoverable reserves on its properties, the ability of the Company to obtain necessary financing to complete the development of such reserves and future profitable production or proceeds from the disposition thereof. 3. EARNINGS PER SHARE Period from 14 Apr 04 to 31 Aug 05 pence Earnings per ordinary share (0.2) ============= ======= Earnings per share have been calculated on the net basis of loss on ordinary activities after taxation of Â£31,313 on 13,579,000 shares being the weighted average of shares in issue. There were no dilutive potential ordinary shares outstanding at the end of the period. 4. RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS 31 Aug 05 Â£ Â£ Decrease in cash in the period (129,378) Cash used to increase liquid resources 6,865,272 ----------- 6,735,894 ----------- Change in net funds 6,735,894 Effect of foreign exchange rate 170,026 differences Net funds at 14 April 2004 - ----------- Net funds at 31 August 2005 6,905,920 =========== 5. ANALYSIS OF CHANGES IN NET FUNDS At Cash Exchange At 14 April flows translation 31 Aug 2004 2005 Â£ Â£ Â£ Â£ Net cash: Cash in hand - (129,378) 170,026 40,648 and at bank ---------- ---------- ---------- ---------- Liquid resources: Current - 6,865,272 - 6,865,272 asset investments ---------- ---------- ---------- ---------- Net funds - 6,735,894 170,026 6,905,920 ========== ========== ========== =========== Current asset investments are money market deposits. This information is provided by RNS The company news service from the London Stock Exchange

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