21 August 2015

ALBA MINERAL RESOURCES PLC

HALF-YEARLY REPORT

CHAIRMAN'S STATEMENT

The Board of Alba Mineral Resources plc (the "Company" or "Alba" or collectively with its Subsidiary Companies, the "Group") is pleased to report the Company's interim results for the six months ended 31 May 2015. They incorporate the results of its subsidiary companies Aurum Mineral Resources Limited ("AMR"), Mauritania Ventures Limited ("MVL") and Alba Mineral Resources Sweden AB ("Alba Sweden") (collectively the "Subsidiary Companies").

INTRODUCTION

Alba is a committed, technically driven explorer. The Group's overall corporate and exploration strategy will continue to be one of developing a portfolio of well-researched, promising and prospective exploration properties within the natural resources sector that will be pursued further, either in the Group's own right or in conjunction with other parties.

RESULTS FOR THE PERIOD

The Group made a loss attributable to equity holders of the parent for the period, after taxation, of £232,118. The basic and diluted loss per share was 0.04 pence.

REVIEW OF ACTIVITIES

Corporate

On 16 February 2015, the Company announced that it had raised £270,000 (before expenses) in an oversubscribed placing, through the issue of 108,000,000 new ordinary shares at a price of 0.25 pence per ordinary share.

On 16 March 2015, the Company announced that it had raised £500,000 (before expenses) in an oversubscribed placing, through the issue of 200,000,000 new ordinary shares at a price of 0.25 pence per ordinary share.

On 1 May 2015, the Company announced that it issued 18,000,000 new ordinary shares at a price of 0.50 pence per ordinary share in settlement of fees for professional services.

Horse Hill

The Horse Hill-1 well ("HH-1") is located within onshore exploration licence PEDL 137, on the northern side of the Weald basin near Gatwick Airport. Alba owns a 10% direct interest in Horse Hill Developments Limited ("HHDL"). HHDL is a special purpose company that owns a 65% participating interest and operatorship of Licence PEDL137 and the adjacent Licence PEDL246 in the UK Weald Basin. The remaining 35% participating interests in the PEDL137 and PEDL246 licences are held by US-based Magellan Petroleum Corporation.

On 8 April 2015, the Company completed the acquisition of the 5% shareholding in HHDL held by Regency Mines Plc ("Regency") for a total cash consideration of £300,000. Additionally, on completion the Company paid the outstanding cash calls issued to Regency by HHDL, being a total of £60,000. During the period, a further cash call payment of £60,000 to HHDL was made by the Company to HHDL pursuant to the terms of the HHDL shareholders' agreement.

On 13 May 2015, the Company announced that it had been informed by HHDL that the exploration stage of the PEDL137 licence had been extended by the Oil & Gas Authority ("OGA", formerly the Department of Energy & Climate Change) to 30 September 2016.

The exploration stage of the PEDL246 licence expires on 30 June 2019.

Ireland

As part of a review of our Irish project which is scheduled to take place prior to the end of the financial year, the Board intends to have all existing available data reviewed and placed in a regional context, particularly with respect to Glencore Plc's Pallas Green project.

Following completion of this review, an action plan will be drawn up that will have three potential outcomes:

1)     Continue investigation by drilling and downhole geophysics;

2)     Look for potential JV partners; or

3)     Relinquish the licence.

Mauritania

The Group holds one exploration permit, No 1328, in northern Mauritania for uranium and other radioactive materials. The permit covers an area of 545 km² and lies within the eastern half of a former permit in relation to which Alba had previously announced several high-tenor uranium anomalies.

The Board continues to review exploration models on the permit area and intends to apply to the relevant Mauritanian Authorities to take out a new permit over the reduced area when compared to the original permit area which will include the centre of the previously discovered anomaly. This will be the second time the Company has reduced the permit area as our knowledge of the ground increases.  The Company will then consider its options with regards to funding the next stage of exploration, either directly or with the existing or a new JV partner.

Other Development Projects

Alba continues to review and discuss other project or investment opportunities, which have been brought to us by the Board, management, advisers or other contacts that may have value-enhancing potential.

Post Period End

On 5 June 2015, the Company announced that Schlumberger, one of the leading suppliers of technology, integrated project management and information solutions to customers working in the global oil and gas industry, had independently assessed the petrophysics of HH-1, located in PEDL137.

On 8 June 2015, the Company announced that Chade van Hatch had been appointed to the Board as Chief Financial Officer and Company Secretary with immediate effect.

On 12 June 2015, the Company announced that it had raised £355,000 (before expenses) in a placing through the issue of 71,000,000 new ordinary shares at a price of 0.50 pence per ordinary share.

On 18 June 2015, the Company announced that Nutech had provided an independent report of the oil initially in place ("OIP") contained within 55 square miles covered by the Horse Hill licences (PEDL137 and PEDL246).

Outlook

The positive developments in relation to Horse Hill over the past several months - notably the publication of independent reports by Schlumberger and Nutech and the extension granted in respect of PEDL 137 - have provided further justification for Alba's decision to invest further into Horse Hill in April.

Aside from Horse Hill, the Board continues to assess its projects in Mauritania and Ireland and we are also actively considering other projects and investment opportunities which may bolster the Company's portfolio of assets and provide further value and interest for our shareholders.

George Frangeskides

20 August 2015

Chairman

For further information please visit the Company's website, www.albamineralresources.com or contact:

UNAUDITED CONSOLIDATED INCOME STATEMENT

FOR THE SIX MONTHS ENDED 31 MAY 2015

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 MAY 2015

FOR THE SIX MONTHS ENDED 31 MAY 2015

NOTES TO THE HALF-YEARLY FINANCIAL INFORMATION

1.             Basis of preparation

The Group consolidates the financial statements of the Company and its subsidiary undertakings.

The financial information has been prepared under the historical cost convention in accordance with International Financial Reporting Standards (IFRSs). The financial information set out in this half-yearly report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The same accounting policies, presentation and methods of computation are followed in this interim condensed consolidated report as were applied in the Group's annual financial statements for the year ended 30 November 2014. The auditor's report on those financial statements was unqualified and did not contain any statements under section 498(2) or section 498(3) of the Companies Act 2006. The auditor's report for the year ended 30 November 2014 did include emphasis of matter paragraphs relating to the uncertainty as to whether the Group can raise sufficient funds to continue to develop the Group's exploration assets.

2.             Going Concern   

Further to the fund raising completed after the period end, after making enquiries, the directors have a reasonable expectation that the Group has adequate resources to meet its current committed expenditure and recurring outgoings for the foreseeable future, although the current level of funding is not sufficient to enable the Company to significantly develop the Group's exploration assets. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements

3.             Taxation

No charge for corporation tax for the period has been made due to the expected tax losses available.

4.             Continuation of exploration activities

Notwithstanding the Directors' going concern considerations set out above, to continue to develop the Group's exploration assets, with a carrying value of £613,787 and support the Company's value of the investment in subsidiaries supported by those assets, with a carrying value of £1,576,685, the Group is dependent on securing further funds to continue exploration activities.

If it is not possible to raise sufficient funds, the carrying value of the exploration assets of the Group and the investment of the Company in its subsidiaries are likely to be impaired.

5.             (Loss)/earnings per share

Basic loss per share is calculated by dividing the loss attributable to ordinary shareholders of £232,118 (May 2014: £64,648; November 2014: £234,001) by the weighted average number of shares of 542,338,783 (May 2014: 260,355,087; November 2014: 394,547,002) in issue during the period.  The diluted loss per share calculation is identical to that used for basic loss per share as the exercise of warrants would have the effect of reducing the loss per ordinary share and therefore is not dilutive under the terms of Financial Reporting Standard 22 "Earnings Per Shares".