Annual Financial Report

29 August 2014

NAMIBIAN RESOURCES PLC

RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2014

Namibian Resources plc ("the Company") is pleased to present its results for the year ended 28 February 2014. A copy of the annual report and accounts will be posted to shareholders today and will also be available on the Company's website, http://www.namibianresources.com/

Together with the annual report and accounts, the Company is posting to shareholders a notice of its annual general meeting which will take place at 11 am on 29 September 2014 at Craven House, West Street, Farnham, Surrey, GU9 7EN.

Enquiries:

CHAIRMAN'S STATEMENT

This is my first statement since Lord Sheppard and Tony Carlton resigned as directors of the Company and I took over as chairman. I would like to thank both of them for their work on behalf of the Company.

Agreement with J&J Group

On 9 May 2013, the Company signed a management agreement with Southern Goshawk Resources (Pty) Limited ("SG"), the natural resources arm of the J&J Group, a South African based investment holding and management company. Under this agreement SG was to manage the Company's mining assets in Southern Africa, initially the Sonnberg diamond mine in Namibia, and subsequently other mining in Southern Africa, and provide the services of David Johnson and Mike Solomon as directors. Progress on bringing in new assets was extremely slow, and David Johnson and Mike Solomon have now left SG, which cannot therefore provide their services. It has therefore been agreed that the management agreement be cancelled, including any provisions for issuing new shares to SG. David Johnson and Mike Solomon remain directors of the Company and are increasing their efforts to identify projects to be brought into the Company.

Operations

Production at the Group's Sonnberg diamond mine has remained suspended. Following a detailed review of the economic viability, the directors have decided that the cost of reopening the mine and upgrading equipment at Sonnberg is not justified. In these circumstances a decision has been made to fully impair the residual value of the intangible assets in this period. The refurbishment of the plant has now been completed, which has underpinned its value. A decision can now be made as to future utilization, either by sale or in another project at a new location. In the latter case the directors believe that plant may be valued at materially more than the £260,264 which is its current carrying value, and represents the amount for which the directors believe it could reasonably be sold. The agreement under which Sonnberg previously mined is open to differing interpretations regarding rehabilitation costs. Sonnberg has contributed a percentage of the value of diamonds mined to a fund held by Namdeb, but the adequacy of this fund is uncertain. The directors have therefore provided a further £70,000 to cover this contingent liability.

Financial

During the period the Company reports a consolidated loss from operating activities, before and after tax, of £531,758 (2013 loss: £1,318,332), shown after the impairment charge of £185,887 (2013: £1,009,722) and the provision for rehabilitation of £70,000 referred to above. After adjusting for exchange differences, the total comprehensive loss for the period, before and after tax, was £685,908 (2013 loss: £1,515,804). During the year the directors continued to provide finance to the Company by way of loans. Since the year end, the Company has raised £146,600 by a placing of new shares. Separate financing will be sought for new projects, which is likely to be by way of both equity and project finance.

Future prospects

The slow progress on expansion is very much to be regretted. However, with the cancellation of the Southern Goshawk agreement and the direct involvement of the South African based directors, I believe that the Company is now well placed to move forward. In addition to coal projects, the directors are evaluating a small copper project in Northern Cape Province, South Africa, which could bring early positive cash flow as well as providing a stepping stone to other copper projects in that area.

Brian Moritz (Chairman)

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 28 FEBRUARY 2014

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 28 FEBRUARY 2014

The financial statements of Namibian Resources plc were approved by the Board of Directors and authorised for issue on 29 August 2014. They were signed on its behalf by Brian Moritz.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 28 FEBRUARY 2014

The currency translation reserve comprises all foreign currency differences arising from the translation of the financial statements of the foreign operation.

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 28 FEBRUARY 2014

NOTES

1 General information

The financial information set out above does not comprise statutory accounts for the purposes of Section 434 of Companies Act 2006.

The balance sheet at 28 February 2014, the income statement and the cash flow statement for the year then ended have been extracted from the Company's statutory financial statements upon which the auditor's opinion is unqualified and does not include any statement under Section 498 of the Companies Act 2006.

2 Basis of preparation

The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ('IFRS') as issued by the International Accounting Standards Board and as adopted by the European Union..

3 Going concern

Since the end of the year, the group has raised approximately £146,600 subscribed for new shares in the Company. Taking this into account, and after making enquiries, the directors have formed a judgement that, as at the date of approving the financial statements, there is a reasonable expectation that the Group and the Company have adequate resources to continue in operational existence for the foreseeable future. For this reason, the directors have adopted the going concern basis in preparing the accounts. In forming this judgement the directors have taken account of there being no outstanding liabilities other than in the normal course of business. There are no borrowings other than from the directors, who have continued to provide loans for working capital. The Company will seek additional finance to expand its operations. The directors believe that the Company and the Group will be able to meet its liabilities as they fall due.

4 Loss per share

The calculation of loss per share at 28 February 2014 is based on the loss for the year from operating activities attributable to ordinary shareholders of £531,758 (2013: £1,318,332), and a weighted average number of ordinary shares in issue of 61,821,352 (2013: 61,821,352).