Anglo Pacific Group PLC

INTERIM RESULTS FOR THE SIX MONTHS ENDED 30th JUNE 2008

CHAIRMAN'S STATEMENT

Anglo Pacific Group PLC, the natural resources royalties company, today announces its interim results for the six months ended 30th June 2008. In the half year under review the Group has again produced record results with both an increase in earnings and a significant valuation uplift in the Group's royalty, mining and exploration interests.

Commenting on the Interim Results, Peter Boycott, Chairman of Anglo Pacific Group PLC said:

"I am pleased to report record results for the first six months of 2008 and the acquisition of new royalties to enhance future cashflows in due course. The Board expects increased royalty receipts in the second half of 2008 after an increase in the underlying royalty rate and the over threefold increase in coking coal prices earlier on in the year."

"Recent market setbacks and the Group's increased cash position now present the Board with more opportunities to expand the Group's royalty and strategic mining interests."

"The Group will continue to pay a substantial proportion of its earnings as dividends to shareholders."

Enquiries:

Brian Wides / Peter Boycott / Matthew Tack                                                      Anglo Pacific Group PLC

                                                                                                                                        020 7318 6360

Chris Bowman / Katherine Burgdorf                                                                                Liberum Capital

                                                                                                                                        020 3100 2000

Stephen Scott / James Harris / James O'Shaughnessy                                                                Scott Harris

                                                                                                                                        0207 653 0030

Website    www.anglopacificgroup.com

  Review and Results for six months ended 30th June 2008

The first six months of 2008 have seen volatility in the banking and property sectors spreading into the broader economy. Combined with the strong rise in the oil price, this has increased the prospect of weaker growth across the western economies.  Stock markets are now adjusting to the prospect of continuing soft and hard commodity price inflation.

Although consolidation and takeover activity has continued amongst the mining majors, the erosion of confidence in world stock markets, driven by increasing liquidity problems, has resulted in sharp setbacks in both the major and junior sectors of the mining market.  Nevertheless, in the first half of 2008, the Chinese economy grew at an annualised rate of over ten percent and mining sources expect similar growth rates for the next five or more years.  This and commodity demand pressures from other developing countries has resulted in coking and steaming coal prices increasing over threefold between June 2007 and June 2008.

These price rises, together with the change from 1st July 2008 to the Queensland coking coal royalty rate from seven to ten percent on coal prices above US$100 per ton, have resulted in the Group's coal royalty interests being independently valued at 30th June 2008 at £96.8 million compared to £60.9 million at 31st December 2007 and £59 million at 30th June 2007.  Royalty receipts in the first half were lower due to worker access problems as a result of flooding, reduced output at the Crinum mine and port constraints.

More recently the price of uranium has started to increase again after the falls experienced earlier in the year caused mainly by hedge fund liquidation.  During the period the prices of gold and other precious metals maintained their high levels and gold again threatened to breach the US$1,000 per ounce mark.

These buoyant metal markets have enabled the Group to realise record capital gains of £13.5 million for the period from the sale of non-core interests.  After royalty receipts, this has produced record earnings of 14.14p per share for the half year.

The value of the Group's private mining interests and quoted stakes in mining projects increased to £101.5 million at 30th June 2008 compared to £87.1 million a year ago.

Furthermore, the Group had no borrowings and nearly £23.5 million of cash in the bank at 30th June 2008.

These record results reflect the Group's policy of focusing on energy, coking coal and precious metal projects, whilst continuing to actively support management in the development of these opportunities.

Strategy and Progress

Despite the volatility of world markets the Group's overall corporate strategy remains unchanged.  The Group aims to increase the total value of its mining interests in order to maximise shareholder value and develop new royalty flows.

In the period under review the Group's cash and strategic investments increased in value to £124.9 million.  Together with the recent valuation of the Group's coal royalty at £96.8 million, the Group's total assets at 30th June 2008 were in excess of £221 million with no debt. Furthermore, this did not include any increase in value over cost attributable to the real value of the Group's expanding private coal interests in Canada where, during the period, the Group acquired a shareholding in an unlisted company developing a number of coking coal projects.  The Groundhog and Trefi coalfields in British Columbia remain on the balance sheet at cost and are now the focus of the Group's expanded in-house mining and technical team.

The Group's quoted equity interests disclosed on the LSE, ASX and TSX, where initial equity stake disclosure levels are 3%, 5% and 10% respectively, amount to £70 million in twenty three different holdings. The balance of quoted holdings of £23 million is made up of a further twenty eight incubator investments. The split of the Group's strategic interests by commodity is now on the Group's website at www.anglopacificgroup.com where links to all the equity disclosures can be accessed.

The Group continues its policy of maintaining a substantial level of liquidity to finance early-stage mining developments and further royalty purchases.  Following its acquisition in August 2007 of a package of Canadian uranium royalty interests, the Group reached agreement in March 2008 to acquire a 2.5% royalty for C$7.5 million from Kinbauri Gold Corp. on its gold deposit in northern Spain.  Recent encouraging drill results point to an increasing resource to which this royalty will apply.

The Group still remains committed to a strategy of paying a substantial proportion of its earnings as dividends to shareholders. On 1st August 2008 a final cash dividend of 4.35p per share for the year ended 31st December 2007 was paid. The Board has now decided to bring forward the announcement and payment of both interim and final dividends. The Group will announce its interim dividend for the year ending 31st December 2008 in October 2008, when a scrip dividend alternative will again be available to shareholders. The payment date will now be in mid December 2008. The final dividend will be announced as usual with the 2008 prelims at the end of February 2009 with payment in mid June 2009.

Outlook

The Group expects substantially increased royalty flows in the second half of 2008 following both an increase in the royalty rate and the sharp rise in coking coal prices.  Energy and coking coal prices are expected to remain buoyant despite the recent correction in mining markets.  The Board remains confident of the Group's ability to exploit the mining finance opportunities that are increasingly available. 

P. M. Boycott

Chairman

29th August 2008

In accordance with Disclosure and Transparency Rules (DTRs), Periodic Financial Reporting DTR 4.2.7R, the Group confirms that the principal risks and uncertainties that could affect the Group's performance have not changed. These are: a major slow down in the world economy; a reduction in commodity prices; a tightening of interest rates and; currency volatility. For more information regarding these risks and uncertainties please refer to page 10 of the 2007 Annual Report.

No related party transactions occurred in the first six months of the year that would require disclosure in accordance with DTR 4.2.8R.

We confirm to the best of our knowledge:

The condensed set of financial statements has been prepared in accordance with IAS 34 'Interim Financial Reporting' and give a true and fair view of assets and liabilities, financial position and profit and loss;

the interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and

the interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related parties transactions and changes therein).

By order of the Board

M. J. Tack

Finance Director

29th August 2008

CONSOLIDATED INCOME STATEMENT

FOR THE SIX MONTHS ENDED 30th JUNE 2008

CONSOLIDATED BALANCE SHEET

AS AT 30th JUNE 2008