Namibian Resources PLC
27 September 2006



Namibian Resources Plc - Six Monthly Progress Report to 31st August 2006

27 September 2006

Production

Production has been concentrated on the East Saltztel and has far exceeded our
expectations.

During the first six months of the current financial year the following results
have been achieved.

(1)    A total of 6,650 stones have been recovered for a total of 4,391 carats
       with an average size of €66 carats per stone.

(2)    A total of 766 stones were in excess of 1 carat including 31 stones
       between 2 and 7 carats.

(3)    The average grade was 27€75 carats per 100 tons gross.

The comparative figures for the first six months of 2005 were:-

Stones 5,576, carats 3,276, average size €59 carats and grade 23 carats per
hundred tons gross.

Production in percentage terms compared to the first 6 months of 2005 has
increased as follows:

            Stones produced have increased by 20%
            Carats produced have increased by 34%
            Average size has increased by 12%
            Grade i.e. carats per hundred tons gross has increased by 20%

This production has been achieved despite the worst rainstorm since records
began which occurred in March.  Many of our areas were severely flooded and
access tracks washed away.  Part of the East Saltztal is still flooded but the
water is gradually evaporating.  We estimate that a further 3,000 carats might
remain on this particular resource but mainly under water.  We intend therefore
to carry out a sampling programme on the Annatal just north of the East Saltztal
where past records show that stones of between €25 and 1 carats were recovered
in the early 1900's.  We will return to the East Saltztal when the sampling
programme is complete in approximately six weeks time.  It is encouraging to
note that carat production for the first six months of this financial year is
only 533 carats less than for the whole of the financial year ended on 28th
February 2006.

Saltztal West

This resource at present is deeply under water but the areas mined initially are
still exposed.  Bedrock clearing of residue gravel should provide additional
production. We are now entering the period of high winds for the next 2 to 3
months and this will cause some periodical downtime when winds reach as high as
90kmh.  However, high temperatures during the summer months will assist in
drying out those areas which, are still under water and with the identified
mining areas production during the remaining six months of this financial year
should be satisfactory.

Overview

The total resources available for exploration are 120 square kilometers.  Our
experience over the last four years has resulted in all cases in production well
in excess of the historical mining results achieved by the German miners of the
early 1900's.  This is due to the fact that mining in those days was extremely
primitive.  Hand digging and screening of dry material has resulted in
considerable residual diamonds being available to us in untouched and previously
mined areas.  It is also considered that economic diamond resources are
available in the old tailing dumps, which are present throughout the area.

Our half-yearly results to 31/08/06 will be released before the end of October.
A further progress report will be given in late December.

A C A Carlton
Chief Executive Officer

Namibian Resources Plc.  Tel: 020 8726 0900



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