ORACLE COALFIELDS PLC

("Oracle" or the "Company" or the "Group")

UNAUDITED INTERIM RESULTS FOR THE 6 MONTHS TO 30 JUNE 2015

Oracle Coalfields PLC (AIM:ORCP), the UK energy developer of a combined lignite coal mine and mine mouth power plant located in the Thar desert in the south-eastern Sindh Province of Pakistan, today announces its unaudited interim results for the six months ended 30 June 2015.

Period Highlights

·     Formal confirmation of lease restoration, in February, following its cancellation in November 2014;

·     An equity placing of £3,369,500 (gross) in February 2015;

·     Confirmation of inclusion of the project in the China-Pakistan Economic Corridor;

·     Incorporation of Thar Electricity (Private) Limited to build, own and operate the power plant.

Post Period Highlights

·    Admission by the Thar Coal and Energy Board of a Coal Price Petition, at US$76.48/tonne, averaged over the thirty year period of the lease.

Shahrukh Khan, CEO of Oracle, said,

"The power shortage in Pakistan remains acute and the Government remains steadfast in its objective of dealing with the country's energy crisis. The Government continues to support the Company in the development of the coal mine and power project.

"In preparation for financial closure, we are currently finalising details of the Engineering Procurement and Construction contracts with our Chinese partners for both the mine and the power plant, and also debt financing supported by Sinosure the state-owned China Export and Credit Insurance Corporation.

"We are grateful for the investor support the Company has received to date and remain on course in our ambition to develop Pakistan's first large scale coal mining and power plant project in the private sector."

A copy of the interim results will be made available on the Company's website at www.oraclecoalfields.com.

For further information:

ORACLE COALFIELDS PLC GROUP OF COMPANIES

News Release

CHAIRMAN'S STATEMENT FOR THE 6 MONTHS TO 30 JUNE 2015

Chairman's Statement

I am pleased to present the Company's results for the six months ended 30 June 2015.

Operational update pre and post interim results

The Company has made good progress in a number of critical matters this year, notably the equity placing in February, inclusion in the China-Pakistan Economic Corridor, admission  by the Thar Coal and Energy Board ("TCEB") of a Coal Price Petition and formation of Thar Electricity (Private) Limited ("TEPL"). 

The Company continues to work towards financial closure.  Detailed discussion on the Engineering Procurement and Construction ("EPC") contracts is currently underway with our Chinese partners the Shangdong Electric Power Corporation ("SEPCO") and we hope, to sign an EPC term sheet with SEPCO, marking agreement on a number of key issues ahead of the full EPC contracts. Discussion has commenced on financing with Sinosure, the China Export and Credit Insurance Corporation. 

TEPL has registered its 600 MW mine-mouth power plant project with the Private Power and Infrastructure Board, Ministry of Water and Power, Government of Pakistan.  This will include entering into a Power Purchase Agreement (PPA) with the National Transmission and Despatch Company (the state owner of the National Power Grid) and a Government of Pakistan guarantee for power delivery payments and also leads to determination of the electricity tariff.  This is in addition to the Company's continuing arrangement with K-Electric, one of the largest private sector utilities in Pakistan, on the PPA and power plant development.  The Environmental and Social Impact Assessment for the power plant is being finalised and work on resettlement of project affected people has been initiated. 

Summary of Results

As expected for a mining company at our stage of development, our financial results for the six months to the 30 June 2015 show an operational loss for Oracle Coalfields PLC Group of Companies after taxation of £528,476 (2014: loss of £377,966). At the period end, the Group had cash and cash equivalents of £1,469,573 (2014: £127,797) and total assets less current liabilities of £6,706,723 (2014: £3,850,316).  The basic loss per share was 0.07p (2014: loss 0.12p). 

Funding

During February 2015, an issue of equity was made in order to provide working capital funding for the Company, which should take the project to financial closure. The aggregate funds raised were £3,369,500 (gross) through an issue of a total of 522,773,633 new ordinary shares at a price of 0.65 pence.   Within the total share issue, 4,389,033 ordinary shares were subscribed by the Directors and senior employees of the Company.

Looking Ahead

The power shortage in Pakistan remains acute and the Government remains steadfast in its objective of dealing with the country's energy crisis.  The Government continues to support the Company in the development of the coal mine and power project.

The Board extends its appreciation to the Thar Coal Energy Board, the Energy Department, the Sindh Coal Authority and Government of Sindh, as well as the Ministry of Water and Power (Government of Pakistan) for their continued support. The Board also continues to be very grateful for the patience and support of our shareholders.

Adrian Loader

Chairman of the Board - Oracle Coalfields PLC

Date: 23 September 2015

CONSOLIDATED INCOME STATEMENT

FOR THE 6 MONTHS ENDED 30 JUNE 2015

                                                                              (Unaudited)       (Unaudited)           (Audited)

                                                                             6 months to       6 months to       Year ended

                                                                           30 June 2015     30 June 2014     31 Dec 2014

                                                                                           £                      £                      £

CONTINUING OPERATIONS

Revenue                                                                                 -                       -                       -

Other operating income                                                        768                   491                  491

Administrative expenses                                               (531,781)          (379,827)          (712,016)

OPERATING LOSS                                                     (531,013)          (379,336)          (711,525)

Finance costs                                                                         -                       -                       -

Finance income                                                                2,537                1,370                2,046

LOSS BEFORE TAX                                                    (528,476)          (377,966)          (709,479)

Tax                                                                                        -                       -                       -

LOSS FOR THE PERIOD                                             (528,476)          (377,966)          (709,479)

Loss attributable to:

Owners of the parent                                                    (528,476)          (377,966)          (709,479)

Non-controlling interests                                                           -                       -                       -

                                                                                  (528,476)          (377,966)          (709,479)

Loss per share attributable to the ordinary equity

 holders of the parent:

Basic and diluted (pence)                                                  (0.07)                (0.12)               (0.21)

STATEMENT OF COMPREHENSIVE INCOME

FOR THE 6 MONTHS ENDED 30 JUNE 2015

                                                                              (Unaudited)       (Unaudited)           (Audited)

                                                                             6 months to       6 months to       Year ended

                                                                           30 June 2015     30 June 2014     31 Dec 2014

                                                                                           £                      £                      £

LOSS FOR THE PERIOD                                             (528,476)          (377,966)          (709,479)

OTHER COMPREHENSIVE INCOME                                                                                        

Item that may be reclassified subsequently

 to profit or loss:

Exchange difference arising on translation of foreign

 operations                                                                    (23,503)             35,535           (121,645)

Income tax relating to components of other

 comprehensive income                                                            -                       -                       -

OTHER COMPREHENSIVE INCOME

 FOR THE PERIOD, NET OF INCOME TAX                     (23,503)             35,535           (121,645)

TOTAL COMPREHENSIVE INCOME

 FOR THE PERIOD                                                      (551,979)          (342,431)          (831,124)

Total comprehensive income attributable to:

Owners of the parent                                                    (551,979)          (342,431)          (831,124)

Non-controlling interests                                                           -                       -                       -

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2015

                                                                              (Unaudited)       (Unaudited)           (Audited)

                                                                                       As at                As at                As at

                                                                           30 June 2015     30 June 2014     31 Dec 2014

                                                               Notes                    £                      £                      £

ASSETS

NON-CURRENT ASSETS

Intangible assets                                                        3,960,131          3,841,101         3,809,019

Property, plant and equipment                                           1,688                1,067                  934

                                                                                3,961,819          3,842,168         3,809,953

CURRENT ASSETS

Trade and other receivables                                         1,020,411              59,118              66,816

Cash and cash equivalents                                          1,469,573            127,797            383,063

Restricted bank deposits                                 3            360,000                       -                       - 

                                                                                2,849,984            186,915            449,879

TOTAL ASSETS                                                        6,811,803          4,029,083         4,259,832

EQUITY

SHAREHOLDERS' EQUITY

Share capital                                                  4            911,783            327,009            389,009

Share premium                                                         10,897,723          7,672,130         8,346,733

Share scheme reserve                                                   149,782              63,070              63,070

Translation reserve                                                       (163,167)             13,074           (144,106)

Accumulated losses                                                  (5,095,127)        (4,230,696)       (4,562,209)

                                                                                6,700,994          3,844,587         4,092,497

Non-controlling interest                                                     5,729                5,729                5,729

TOTAL EQUITY                                                         6,706,723          3,850,316         4,098,226

LIABILITIES

CURRENT LIABILITIES

Trade and other payables                                               105,080            178,767            161,606

TOTAL LIABILITIES                                                     105,080            178,767            161,606

TOTAL EQUITY AND LIABILITIES                             6,811,803          4,029,083         4,259,832

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE 6 MONTHS ENDED 30 JUNE 2015

                                                                                                                                      Share

                                                               Share     Accumulated               Share            scheme

                                                              capital              losses           premium             reserve

                                                                   £                      £                      £                      £

Balance at 31 December 2013             327,009        (3,852,730)         7,672,130              63,070

Changes in equity

Loss for the period                                           -           (377,966)                      -                       -

Other comprehensive income                            -                       -                       -                       -

Balance at 30 June 2014                     327,009        (4,230,696)         7,672,130              63,070

Changes in equity

Issue of share capital                               62,000                       -            713,000                       -

Costs associated with share issue                    -                       -             (38,397)                      -

Loss for the period                                           -           (331,513)                      -                       -

Other comprehensive income                            -                       -                       -                       -

Balance at 31 December 2014             389,009        (4,562,209)         8,346,733              63,070

Changes in equity

Issue of share capital                             522,774                       -          2,875,255                       -

Costs associated with share issue                    -                       -           (324,265)             86,712

Loss for the period                                           -           (528,476)                      -                       -

Other comprehensive income                            -               (4,442)                      -                       -

Balance at 30 June 2015                     911,783        (5,095,127)       10,897,723            149,782

                                                       Translation                          Non-controlling                 Total

                                                             reserve                 Total             interest               equity

                                                                   £                      £                      £                      £

Balance at 31 December 2013              (22,461)        4,187,018                5,729         4,192,747

Changes in equity

Loss for the period                                           -           (377,966)                      -           (377,966)

Other comprehensive income                   35,535              35,535                       -              35,535

Balance at 30 June 2014                       13,074         3,844,587                5,729         3,850,316

Changes in equity

Issue of share capital                                       -            775,000                       -            775,000

Costs associated with share issue                    -             (38,397)                      -             (38,397)

Loss for the period                                           -           (331,513)                      -           (331,513)

Other comprehensive income                 (157,180)          (157,180)                      -           (157,180)

Balance at 31 December 2014            (144,106)        4,092,497                5,729         4,098,226

Changes in equity

Issue of share capital                                       -         3,398,029                       -         3,398,029

Costs associated with share issue                    -           (237,553)                      -           (237,553)

Loss for the period                                           -           (528,476)                      -           (528,476)

Other comprehensive income                  (19,061)            (23,503)                      -             (23,503)

Balance at 30 June 2015                    (163,167)        6,700,994                5,729         6,706,723

CONSOLIDATED CASHFLOW STATEMENT

FOR THE 6 MONTHS ENDED 30 JUNE 2015

                                                                              (Unaudited)       (Unaudited)           (Audited)

                                                                             6 months to       6 months to       Year ended

                                                                           30 June 2015     30 June 2014     31 Dec 2014

                                                               Notes                    £                      £                      £

Cash flows from operating activities

Cash generated from operations                       1           (590,188)          (352,875)          (655,341)

Net cash from operating activities                                  (590,188)          (352,875)          (655,341)

Cash flows from investing activities

Purchase of intangible fixed assets                                (175,869)            (55,872)          (200,746)

Purchase of tangible fixed assets                                        (948)                      -                       -

Cash placed on restricted deposit                                  (360,000)                      -                       -

Interest received                                                               2,537                1,065                2,046

Net cash from investing activities                                   (534,280)            (54,807)          (198,700)

Cash flows from financing activities

Share issue                                                               2,449,109                       -            738,397

Cost of share issue                                                      (237,553)              (4,022)            (42,419)

Net cash from financing activities                                 2,211,556               (4,022)           695,978

(Decrease)/Increase in cash

 and cash equivalents                                              1,087,088           (411,704)          (158,063)

Cash and cash equivalents at beginning

 of period                                                        2            383,063            538,789            538,789

Effect of foreign exchange rate changes                               (578)                  712                2,337

Cash and cash equivalents at end of period            1,469,573            127,797            383,063

NOTES TO THE CASH FLOW STATEMENT

FOR THE 6 MONTHS ENDED 30 JUNE 2015

1. RECONCILIATION OF LOSS BEFORE TAX TO CASH GENERATED FROM OPERATIONS

                                                                              (Unaudited)       (Unaudited)           (Audited)

                                                                             6 months to       6 months to       Year ended

                                                                           30 June 2015     30 June 2014     31 Dec 2014

                                                                                           £                      £                      £

Loss before tax                                                            (528,476)          (377,966)          (709,479)

Depreciation                                                                            -                    83                  165

Shares issued in lieu of remuneration                                        -                       -              36,603

Impairment of accrued interest receivable                                   -                   305                       -

Finance income                                                               (2,537)              (1,370)              (2,046)

                                                                                  (531,013)          (378,948)          (674,757)

(Increase)/Decrease in trade and

 other receivables                                                            (4,729)            (18,096)            (25,808)

(Decrease)/Increase in trade and

 other payables                                                              (54,446)             44,169              45,224

Cash generated from operations                               (590,188)          (352,875)          (655,341)

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the cash flow statement in respect of cash and cash equivalents are in respect of the statement of financial position amounts:

Period ended 30 June 2015

                                                                                                      (Unaudited)           (Audited)

                                                                                                               As at                As at

                                                                                                    30 June 2015     31 Dec 2014

                                                                                                                   £                      £

Cash and cash equivalents                                                                  1,469,573            383,063

Period ended 30 June 2014

                                                                                                      (Unaudited)           (Audited)

                                                                                                               As at                As at

                                                                                                   30 June 2014     31 Dec 2013

                                                                                                                   £                      £

Cash and cash equivalents                                                                    127,797            538,789

Period ended 31 December 2014

                                                                                                         (Audited)           (Audited)

                                                                                                               As at                As at

                                                                                                    31 Dec 2014     31 Dec 2013

                                                                                                                   £                      £

Cash and cash equivalents                                                                    383,063            538,789

Cash and cash equivalents consist of cash in hand and balances with banks.

NOTES TO THE FINANCIAL STATEMENTS UNAUDITED RESULTS

FOR THE 6 MONTHS ENDED 30 JUNE 2015

1. Basis of preparation

These interim financial statements for the six month period ended 30 June 2015 have been prepared using the historical cost convention, on a going concern basis and in accordance with applicable International Financial Reporting Standards as adopted by the European Union ("IFRS") and with those parts of the UK Companies Act 2006 applicable to companies reporting under IFRS as adopted by the European Union. They have also been prepared on a basis consistent with the accounting policies expected to be applied for the year ending 31 December 2015, and which are also consistent with the accounting policies applied for the year ended 31 December 2014 except for the adoption of any new standards and interpretations.

These interim results for the six months ended 30 June 2015 are unaudited and do not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The financial statements for the year ended 31 December 2014 have been delivered to the Registrar of Companies and filed at Companies House and the auditors' report on those financial statements was unqualified and did not contain a statement made under Section 498(2) or Section 498(3) of the Companies Act 2006.

2. Loss per share

Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares of 736,490,500 (30 June 2014 - 327,009,493 and 31 December 2014 - 345,014,973) outstanding during the period. There is no difference between the basic and diluted loss per share.

3. Restricted bank deposits

In February 2015, £360,000 was placed on deposit with Habib Bank as security for a performance bond. The deposit is repayable on compliance with the conditions of the bond.

4. Called up share capital

                                                                              (Unaudited)       (Unaudited)           (Audited)

                                                                           30 June 2015     30 June 2014     31 Dec 2014

                                                                                           £                      £                      £

Allotted, called up and fully paid

911,783,126 Ordinary shares of 1p each                         911,783            327,009            389,009

The number of shares in issue was as follows:

                                                                                                                                   Number
                                                                                                                                 of shares

Balance as 31 December 2013                                                                             327,009,493

Issued during the period                                                                                                          -

Balance at 30 June 2013                                                                                      327,009,493

Issued during the period                                                                                           62,000,000

Balance at 31 December 2014                                                                             389,009,493

Issued during the period                                                                                          522,773,633

Balance at 30 June 2015                                                                                      911,783,126

5. Post balance sheet events

There are no post balance sheet events to report.