Container Finance Leasing Agreement

22 October 2012

Strategic Natural Resources Plc

("SNR" or the "Company")

Container Finance Leasing Agreement

The Board of SNR is pleased to announce that the Company's 74% owned subsidiary, Elitheni Coal (Pty) Ltd ("Elitheni") has entered in to an agreement with Thelo Rolling Stock Leasing (Pty) Limited ("Thelo") for the lease of rolling stock containers (the "Lease Agreement"). Under the terms of the Lease Agreement, which is for an initial term of six years, Thelo shall make available to Elitheni up to 1,500 steel rolling stock containers to be used for the shipping of coal from the Elitheni Mine in the Eastern Cape of South Africa. Thelo, which is 50% owned by Thelo Rolling Stock Partnership and 50% owned by the Industrial Development Corporation, a South African government owned institution focused on promoting economic growth and industrial development in the country, are using Transnet Rail Engineering for the supply of the containers. Rental of the containers is calculated on a per container per month basis and full production of them is underway. Elitheni anticipate receiving the first batch of containers during the first half of November 2012, which will enable the Company to deliver its first shipments under the Trasteel off take agreement.

David Nel, CEO of SNR, commented "We are delighted to have secured this agreement with Thelo, which will result in a significant reduction in our short term capital requirements associated with bringing the Elitheni Mine in to full operation, and fulfilling our shipping commitments under the off take agreement with Trasteel."

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For further information about Strategic Natural Resources plc please visit www.snrplc.co.uk