Final Results for the Year Ended 31 December 2015

27 May 2016

 W Resources Plc

Final Results for the Year Ended 31 December 2015

W Resources Plc (AIM:WRES), the tungsten, copper and gold exploration and development company with assets in Spain and Portugal, announces its audited financial results for the year ended 31 December 2015.

In 2015, W Resources Plc (the "Company" or "W") made encouraging progress in the development of its flagship tungsten mine at La Parrilla in Spain and Régua in Portugal.

Highlights

· La Parrilla Mine: a 2,900 metre ("m") drilling programme led to a new Joint Ore Reserves Committee ("JORC") compliant mineral resource estimate indicating an increase of 16% in contained tungsten tri-oxide ("WO3")

· W exercised the option to fully acquire La Parrilla and made all option payments and has full title to La Parrilla Mining Concession, as 100% titleholder and owner

· Régua: extension drilling delivered significant high-grade results which were incorporated into an updated JORC mineral resource estimate indicating a significant 76% increase in the indicated resource tonnage

· Completed a successful 1,058 m exploration drilling campaign at CAA / Portalegre, and signed an agreement which increased the project exploration licence by 101.7 km² to 289.75 m² incorporating the highly prospective São Martinho gold project

· Trench sampling at Tarouca showed high-grade tungsten results with 15 out of 126 samples exceeding 0.5% WO3, including 0.8m at 11.4% WO3 (TTR063)

· Funding: raised £3.8 million through placings during 2015

· The US$800,000 convertible note facility with Bergen, which was drawn in October 2014, was fully repaid in April 2015 and the facility terminated

 Post year-end

· £850,000 has been raised since the date of the balance sheet

Chairman of W, Michael Masterman commented: "2015 has been a productive year for W, with advances made in Spain and Portugal. I am delighted with the progress made to date and achieving major milestones with the resource upgrades on both projects significantly increasing the prospectivity of these flagship projects. The La Parrilla mine plan is progressing well, and we anticipate to finalise this in mid-2016, and in parallel, we are continuing our discussions with regard to financing the mine at asset level and are encouraged by the response to date. These factors, combined with the Full Mine approval, see the FTM construction on-track ahead of the ramp-up to full production in 2017.

At Régua, metallurgical results to date have been encouraging and this, combined with process flowsheet updates will enable us to start work on the definition development study."

"With the momentum achieved in 2015 we look forward to prospering with the development work as we head towards the ramp-up of production at La Parrilla in early 2017 following construction of the project this year."

Financial Statements for the Year Ended 31 December 2015

A full copy of the W Resources Consolidated Financial Statements for the year ended 31 December 2015 is available on the Company's website at www.wresources.co.uk and an extract of the Consolidated Financial Statements for the year ended 31 December 2015 is presented below.

Enquiries:

About W

In 2012, W Resources Plc (AIM:WRES) made the successful transition into a tungsten production exploration and development company with projects in Spain and Portugal, following two acquisitions. Projects now include La Parrilla, a tungsten project in Spain and Régua and Tarouca Tungsten projects and the CAA / Portalegre copper-gold project in Portugal.

The Company's deposits and tungsten mine developments offer a low cost, high margin resource development opportunity due to a strong market following for Tungsten, increased trading and a forecast shortage of supply. The price of tungsten has more than doubled in past three years and is in the top 5 critical metals list.

The Board is focused to explore further opportunities in the region with a view to building a mid-tier minor metal producer.

The Company was incorporated in England and Wales in 2004.

W RESOURCES PLC

CHAIRMANS STATEMENT

In 2015, W Resources Plc (the "Company" or "W") made encouraging progress at its flagship tungsten development projects: La Parrilla in Spain and Régua in Portugal.

At La Parrilla a 2,900 metre ("m") drilling programme led to a new Joint Ore Reserves Committee ("JORC") compliant mineral resource estimate indicating an increase of 16% in contained tungsten tri-oxide ("WO3"). Critical path geological, metallurgical, approval, and project design culminated in the delivery of a three-stage low-incremental cost development plan which will deliver 5,000 tonnes per annum ("tpa") of tungsten and 440 tonnes of tin (Sn) in a low capital and operating cost venture once at full production levels, targeted for 2018.

In parallel at Régua, extension drilling delivered significant high-grade results, which exceeded expectations, in particular in the northeast and northwest and in the target open pit mining area in the centre of the orebody. These positive results were incorporated into an updated JORC mineral resource estimate indicating a significant 76% increase in the indicated resource tonnage.

In addition to the progress at La Parrilla and Régua, W completed a successful exploration drilling campaign at CAA / Portalegre, drilling five holes with significant intersections and signed an agreement which increased the project exploration licence by 101.7 km² to 289.75 m² incorporating the highly prospective São Martinho gold project at minimal cost.

La Parrilla, Spain

The La Parrilla definition study, which was completed in June 2015, outlined a low capital and operating cost project, targeting annual production of 5,000 tonnes of tungsten (WO3) and 440 tonnes of tin (Sn) concentrate.

In September 2015, W completed a drilling programme comprising 1,302 m diamond core and 1,594 m of grade control reverse circulation drilling in the Fast Track Mine ("FTM") area. This returned strong assay results which were located near surface including: 40 m at 0.32% WO3 from surface in Hole IRC1-40 and 56.20 m at 0.21% WO3 from 47.5 m in Hole IP-21. The drilling programme at La Parrilla West also delivered solid results with the new Hole IP-25 reporting 28.40 m at 0.25% WO3 from 43.2 m.

An updated JORC mineral resource estimate was completed in February 2016, confirming La Parrilla to be one of the largest tungsten deposits in the Western World:

· The total resources estimate for La Parrilla increased to 51 million tonnes ('mt') at 0.096% WO3 and 0.108% Sn. This represents a substantial increase of 16% in contained WO3 and a 7% increase in average WO3 grade

· A large increase of 29% contained Sn and a 19% increase in Sn grade

· Importantly, the classification of the resource also increased, with an indicated resource of 36 mt which equates to 70% of the total resource estimate, up from zero in the previous 2013 estimate

Metallurgical testing, plant design and expansion planning work advanced in 2015, which determined that the La Parrilla plant will be constructed in three stages allowing for low-cost incremental expansion to supply the anticipated steady growth in market demand.

Initial production at the FTM will target 1,300 tpa of 66% WO3 concentrate and 110 tonnes of 52% Sn concentrate, at an estimated cost of US$16 million. The FTM is on-track for first production in late 2016.

Phase two will see the FTM being scaled up in 2017 / 2018 to 2,600 tpa at the low incremental cost of US$6.0 million. In Phase three, at an estimated cost of US$30 million, the final Full Mine ("FM") will incorporate ore sorters and duplicate the processing plant expanding the capacity to 5,000 tpa, transforming W into a large profitable mining company delivering approximately US$90 million per annum revenue (based on an APT price of $320), with low operating costs of just US$121 / mtu.

Following the receipt of the environmental approval for La Parrilla in July 2015, W received the Mines Department authorisation (the main approval required to fully develop the FTM towards production) in November 2015. This was received just eight months after submission of the formal environmental and development documentation, and is particularly encouraging as it gives W strong confidence in support from the Spanish Regional Government for the La Parrilla project. Full Mine development and environmental approvals are advancing, whilst the Company makes good progress on this exciting asset.

Régua, Portugal

W continued development at Régua during 2015 and in August the Company completed a 2,067 m diamond drilling and bulk sampling campaign to appraise lateral and depth extensions to existing mineralisation. The drilling programme further defined high-grade extensions to the northeast (Hole RGD023 - 6.30 m at 0.47% from 122.44 m plus 10.48 m at 0.61% from 132.72 m) and in addition, a step-out hole identified a significant new extension of the orebody to northwest (Hole RGD026A - 6.45 m at 0.35% WO3 from 206.55 m). Five short holes drilled in the centre of the orebody highlighted the potential for an initial open pit mining area with multiple levels of higher-grade tungsten mineralisation at surface or close to surface with limited cover (Hole RGD028 - 4.35 m at 0.83% WO3 from 16.50 m).

The Régua 4 tonne bulk surface sample returned assays of 0.33% to 1.0% WO3 and the drilling results highlighted 6 zones (compared to the expected 3) of tungsten bearing skarn, including 10 m at 0.6% WO3.

These positive results were incorporated into an updated JORC compliant mineral resource estimate, issued in October 2015, with the total resource tonnage increasing by 22% to 5.46 mt at a grade of 0.28% WO3, up from 4.46 mt, and notably the indicated resource tonnage increasing by 76% to 3.76 mt at 0.304% WO3 (2012: 2.14 mt @ 0.367% WO3).

Mine development planning is now advanced and on-track for completion during mid-2016. Metallurgical and plant design work for an initial shallow open-pit mine design, as well as a second phase for a larger scale high-grade underground operation are also in progress.

The Régua deposit remains open at depth and on all sides, with significant potential resource growth to the northeast including a 10 m thick tungsten intersection.

Tarouca Exploration, Portugal

In 2015, trench sampling at the Tarouca project showed high-grade tungsten results with 15 out of 126 samples exceeding 0.5% WO3, including 0.8 m at 11.4% WO3 (TTR063). Together with the 15 holes drilled in 2014, this confirms an outstanding exploration target in the north eastern area of the licence. W has consolidated the data and will review timing for further targeted drilling later during 2016.

Tarouca is located 133 km east of Porto and W has an exploration licence on this project.

Copper-Gold Exploration: CAA / Portalegre, Portugal

In May 2015, W completed a 1,058 m scout diamond drilling programme at the CAA / Portalegre gold and base metal exploration licence in Portugal, which delivered encouraging results. Hole CAAD-05 intersected 16 m of gold (Au) at 1.37 grams per tonne ("g/t") between 124 m and 140 m, which is the most significant result in the CAA / Portalegre programme.

The results delineated the strong potential for extensions at CAA / Portalegre and with the project now at an advanced stage of exploration, the Company's priority is now to translate the results into a discovery in the next phase of gold exploration.

W signed an agreement with the Portuguese Department of Energy and Geology (DGEG), in October 2015 to increase its CAA / Portalegre exploration licence by 101.7 km². As a result, the project now includes the highly prospective São Martinho gold project with a non-compliant resource estimate of 328,621oz at an average grade of 1.37 g/t Au. The expanded licence agreement has resulted in the CAA / Portalegre project now covering 289.75 km².

The Board considers it logical and a strategic advantage to farm-out the gold and base metals project to the right partner, and evaluating this process will commence during the course of 2016.

CAA / Portalegre is located 200 km east of Lisbon, comprising two gold exploration licences.

Finance

During 2015, W completed capital placements totalling £3,775,000. The funds raised were predominantly used to progress development at the Régua Project and the La Parrilla FTM (including the completion of the environmental approval). In addition, the Company completed a drilling campaign at its prospective CAA / Portalegre gold exploration project.

The Company recorded an after tax loss £606,000 in 2015, compared to a loss of £641,000 in 2014; due largely to lower finance costs and includes a full year of plant depreciation.

W Resources has exercised the option to fully acquire La Parrilla and made all option payments. W Resources, as 100% titleholder and owner, now has full title to La Parrilla Mining Concession.

The US$800,000 convertible note facility with Bergen, which was drawn in October 2014, was fully repaid in April 2015 and the facility terminated.

Outlook

2015 has been a productive year for W, with advances made in Spain and Portugal. I am delighted with the progress made to date and achieving major milestones with the resource upgrades on both projects significantly increasing the prospectivity at both of these flagship projects. The La Parrilla mine plan is progressing well, and we anticipate to finalise this in mid-2016, and in parallel, we are continuing our discussions with regard to financing the mine at asset level and are encouraged by the response to date. These factors, combined with the Full Mine approval, see the FTM on-track for first production in late Q4 2016, and ramp-up in early 2017.

At Régua, metallurgical results to date have been encouraging and this, combined with process flowsheet updates will enable us to start work on the definition development study.

On behalf of the board I would like to thank our hardworking teams in Spain and Portugal and our valued shareholders for their continued support during 2015 and we look forward to prospering with the development work as we head towards production by the end of 2016.

Mr M Masterman

Chairman

W Resources Plc

27 May 2016

"Some of the technical information contained in the W Resources Plc Chairman's Statement was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported."

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2015

2015 2014

Notes £'000 £'000

CONTINUING OPERATIONS

Revenue 2 82 964

Cost of sales (100) (1,098)

GROSS LOSS (18) (134)

Depreciation and amortisation (184) (102)

Administrative expenses (386) (251)

OPERATING LOSS (588) (487)

Finance costs 4 (18) (155)

Finance income 4 - 1

Income tax 6 - -

LOSS FOR THE YEAR (606) (641)

OTHER COMPREHENSIVE INCOME

Item that will not be reclassified to profit or loss:

Translation reserve (439) (754)

Loss attributable to:

Owners of the parent (606) (641)

Total comprehensive income attributable to:

Owners of the parent (1,045) (1,395)

Loss per share expressed

in pence per share: 8

Basic -0.02 -0.03

Diluted -0.02 -0.03

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

31 DECEMBER 2015

2015 2014

Notes £'000 £'000

ASSETS

NON-CURRENT ASSETS

Intangible assets 9 8,250 6,942

Property, plant and equipment 10 1,809 2,037

Investments 11 - -

10,059 8,979

CURRENT ASSETS

Inventories 12 - 52

Trade and other receivables 13 574 848

Cash and cash equivalents 14 864 283

1,438 1,183

TOTAL ASSETS 11,497 10,162

EQUITY

SHAREHOLDERS' EQUITY

Called up share capital 15 3,694 2,420

Share premium 16 20,316 17,913

Share Warrant Reserve 16 77 77

Merger Reserve 16 909 909

Translation Reserve 16 (1,292) (853)

Retained earnings 16 (13,337) (12,731)

TOTAL EQUITY 10,367 7,735

LIABILITIES

CURRENT LIABILITIES

Trade and other payables 17 986 1,914

Financial liabilities - borrowings

1,130 2,427

TOTAL LIABILITIES 1,130 2,427

TOTAL EQUITY AND LIABILITIES 11,497 10,162

The financial statements were approved by the Board of Directors on 27 May 2016 and were signed on its behalf by:

M G Masterman

Chairman

COMPANY STATEMENT OF FINANCIAL POSITION

31 DECEMBER 2015

2015 2014

Notes £'000 £'000

ASSETS

NON-CURRENT ASSETS

Intangible assets 9 - -

Property, plant and equipment 10 - -

Investments 11 1,520 1,520

1,520 1,520

CURRENT ASSETS

Trade and other receivables 13 10,593 7,774

Cash and cash equivalents 14 145 65

10,738 7,839

TOTAL ASSETS 12,258 9,359

EQUITY

SHAREHOLDERS' EQUITY

Called up share capital 15 3,694 2,420

Share premium 16 20,316 17,913

Share Warrant Reserve 16 77 77

Merger Reserve 16 909 909

Translation Reserve 16 (98) (98)

Retained earnings 16 (12,889) (12,538)

TOTAL EQUITY 12,009 8,683

LIABILITIES

CURRENT LIABILITIES

Trade and other payables 17 249 163

Financial liabilities - borrowings

249 676

TOTAL LIABILITIES 249 676

TOTAL EQUITY AND LIABILITIES 12,258 9,359

The financial statements were approved by the Board of Directors on 27 May 2016 and were signed on its behalf by:

M G Masterman

Chairman

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2015

Called up

Share Retained Share

Capital Earnings Premium

£'000 £'000 £'000

Balance at 1 January 2014 2,087 (12,090) 16,075

Changes in equity

Issue of share capital 333 - 1,838

Total comprehensive income - (641) -

Balance at 31 December 2014 2,420 (12,731) 17,913

Changes in equity

Issue of share capital 1,274 - 2,403

Total comprehensive income - (606) -

Balance at 31 December 2015 3,694 (13,337) 20,316

Share

Warrant Merger Translation Total

Reserve Reserve Reserve Equity

£'000 £'000 £'000 £'000

Balance at 1 January 2014 - 909 (99) 6,882

Changes in equity

Issue of share capital - - - 2,171

Total comprehensive income - - (754) (1,395)

Balance at 31 December 2014 77 909 (853) 7,735

Changes in equity

Issue of share capital - - - 3,677

Total comprehensive income - - (439) (1,045)

Balance at 31 December 2015 77 909 (1,292) 10,367

COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2015

Called up

Share Retained Share

Capital Earnings Premium

£'000 £'000 £'000

Balance at 1 January 2014 2,087 (11,988) 16,075

Changes in equity

Issue of share capital 333 - 1,838

Total comprehensive income - (550) -

Balance at 31 December 2014 2,420 (12,538) 17,913

Changes in equity

Issue of share capital 1,274 - 2,403

Total comprehensive income - (351) -

Balance at 31 December 2015 3,694 (12,889) 20,316

Share

Warrant Merger Translation Total

Reserve Reserve Reserve Equity

£'000 £'000 £'000 £'000

Balance at 1 January 2014 - 909 (98) 6,985

Changes in equity

Issue of share capital - - - 2,171

Total comprehensive income - - - (550)

Balance at 31 December 2014 77 909 (98) 8,683

Changes in equity

Issue of share capital - - - 3,677

Total comprehensive income - - - (351)

Balance at 31 December 2015 77 909 (98) 12,009

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2015

2015 2014

Notes £'000 £'000

Cash flows from operating activities

Cash absorbed by operations 1 (974) (1,050)

Interest paid (18) -

Finance costs paid - (155)

Tax paid - (14)

Net cash from operating activities (992) (1,219)

Cash flows from investing activities

Purchase of intangible fixed assets (1,720) (2,016)

Purchase of tangible fixed assets (15) (745)

Interest received - 1

Net cash from investing activities (1,735) (2,760)

Cash flows from financing activities

New loans in year 165 512

Loan repayments in year (533) -

Amount introduced by directors - 156

Share issue 1,274 333

Share Issue Premium 2,501 1,909

Share Issue Costs (99) (71)

Net cash from financing activities 3,308 2,839

COMPANY STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2015

2015 2014

Notes £'000 £'000

Cash flows from operating activities

Cash absorbed by operations 1 (3,479) (3,990)

Interest paid (18) (5)

Finance costs paid - (155)

Net cash from operating activities (3,497) (4,150)

Cash flows from investing activities

Interest received 413 295

Net cash from investing activities 413 295

Cash flows from financing activities

New loans in year - 512

Loan repayments in year (512) -

Share issue 1,274 333

Share Premium 2,501 1,909

Share issue costs (99) (71)

Net cash from financing activities 3,164 2,683

NOTES TO THE STATEMENTS OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2015

Group

2015 2014

£'000 £'000

Loss before income tax (606) (641)

Depreciation charges 184 102

Share based payment - 77

Foreign exchange loss 32 (188)

Finance costs 18 155

Finance income - (1)

(372) (496)

Decrease/(increase) in inventories 52 (52)

Decrease/(increase) in trade and other receivables 274 (249)

Decrease in trade and other payables (928) (253)

Company

2015 2014

£'000 £'000

Loss before income tax (351) (550)

Share based payments - 77

Increase in inter-group loans (2,785) (3,341)

Finance costs 18 160

Finance income (413) (295)

(3,531) (3,949)

(Increase)/decrease in trade and other receivables (35) 4

Increase/(decrease) in trade and other payables 87 (45)

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statements of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Group Company

Year ended 31 December 2015

31.12.15 1.1.15 31.12.15 1.1.15

£'000 £'000 £'000 £'000

Cash and cash equivalents 864 283 145 65

Year ended 31 December 2014

31.12.14 1.1.14 31.12.14 1.1.14

£'000 £'000 £'000 £'000

Cash and cash equivalents 283 1,423 65 1,237

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2015

2. SEGMENTAL REPORTING

By Business Segment:

8,211 (476) 7,735

By Business Segment:

4. NET FINANCE COSTS

2015 2014

£'000 £'000

Finance income:

Deposit account interest - 1

Finance costs:

Other interest 18 -

Share based payment charge - 77

Commencement fees - 78

18 155

Net finance costs 18 154

5. LOSS BEFORE INCOME TAX

The loss before income tax is stated after charging/(crediting):

2015 2014

£'000 £'000

Cost of sales 100 1,098

Other operating leases 4 4

Depreciation - owned assets 129 65

Intangible assets amortisation 54 36

Auditors' remuneration 21 19

6. INCOME TAX

Analysis of tax expense

No liability to UK corporation tax arose on ordinary activities for the year ended 31 December 2015 nor for the year ended 31 December 2014.

Factors affecting the tax expense

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2015 2014

£'000 £'000

Effects of:

Tax expense - -

8. LOSS PER SHARE

Basic loss per share is calculated by dividing the losses attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period.

Diluted loss per share is calculated using the weighted average number of shares adjusted to assume the conversion of all dilutive potential ordinary shares.

Reconciliations are set out below.

2015

Weighted

average

number Per-share

Loss of amount

£'000 shares pence

Basic LPS

Effect of dilutive securities - - -

Diluted LPS

Adjusted Loss (606) 3,290,674,856 -0.02

2014

Weighted

Average

Number Per-share

Loss of Amount

£'000 Shares Pence

Basic LPS

Effect of dilutive securities - - -

Diluted LPS

Adjusted loss (641) 2,216,948,161 -0.03

9. INTANGIBLE ASSETS

Group

Intangible

Assets

£'000

COST

At 1 January 2015 6,990

Additions 1,720

Exchange differences (361)

At 31 December 2015 8,349

AMORTISATION

At 1 January 2015 48

Exchange differences (3)

At 31 December 2015 99

NET BOOK VALUE

At 31 December 2015 8,250

9. INTANGIBLE ASSETS - Continued

Group

Intangible

Assets

£'000

COST

At 1 January 2014 5,450

Additions 2,016

Exchange differences (476)

At 31 December 2014 6,990

AMORTISATION

At 1 January 2014 13

Exchange differences (1)

At 31 December 2014 48

NET BOOK VALUE

At 31 December 2014 6,942

The above represents capitalised testing works and concessions costs acquired.

10. PROPERTY, PLANT AND EQUIPMENT

Group

Fixtures

Plant and and Motor

Machinery Fittings Vehicles Totals

£'000 £'000 £'000 £'000

COST

At 1 January 2015 2,161 13 6 2,180

Additions 15 - - 15

Exchange differences (122) - - (122)

At 31 December 2015 2,054 13 6 2,073

DEPRECIATION

At 1 January 2015 124 13 6 143

Exchange differences (8) - - (8)

At 31 December 2015 245 13 6 264

NET BOOK VALUE

At 31 December 2015 1,809 - - 1,809

10. PROPERTY, PLANT AND EQUIPMENT - Continued

Group

Fixtures

Plant and and Motor

Machinery Fittings Vehicles Totals

£'000 £'000 £'000 £'000

COST

At 1 January 2014 1,512 13 6 1,531

Additions 745 - - 745

Exchange differences (96) - - (96)

At 31 December 2014 2,161 13 6 2,180

DEPRECIATION

At 1 January 2014 64 13 6 83

Exchange differences (5) - - (5)

At 31 December 2014 124 13 6 143

NET BOOK VALUE

At 31 December 2014 2,037 - - 2,037

11. INVESTMENTS

Company

Shares in

Group

Undertakings

£'000

COST

At 1 January 2015

and 31 December 2015 1,520

NET BOOK VALUE

At 31 December 2015 1,520

At 31 December 2014 1,520

Shares in

Group

Undertakings

£'000

COST

At 1 January 2014

and 31 December 2014 1,520

NET BOOK VALUE

At 31 December 2014 1,520

11. INVESTMENTS - Continued

Company

The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following:

Subsidiaries

Iberian Resources Spain SL

Country of incorporation: Spain

Nature of business: Tungsten mining, production, exploration

%

Class of shares: holding

Ordinary 100.00

2015 2014

£'000 £'000

Aggregate capital and reserves (576) (589)

Australian Iron Ore Plc (Group)

Nature of business: Tungsten mining exploration, development

%

Class of shares: holding

Ordinary 100.00

2015 2014

£'000 £'000

Aggregate capital and reserves 293 402

Iberian Resources Portugal, Recursos Minerais, Unipessoal, Lda

Country of incorporation: Portugal

Nature of business: Mineral Exploration

%

Class of shares: holding

Australian Iron Ore Plc owns 100.00

2015 2014

£'000 £'000

Aggregate capital and reserves 181 282

Caspian USA Inc

Country of incorporation: United States of America

Nature of business: Oil Exploration

%

Class of shares: holding

Ordinary 100.00

Associated company

Black Gold of Kentucky Inc

Country of incorporation: United States of America

Nature of business: Oil Exploration

%

Class of shares: holding

Ordinary 50.00

12. INVENTORIES

Group

2015 2014 £'000 £'000

Concentrate for re-sale - 52

13. TRADE AND OTHER RECEIVABLES

Group Company

2015 2014 2015 2014

£'000 £'000 £'000 £'000

Current:

Trade debtors - 40 - -

Amounts owed by group undertakings - - 10,538 7,754

Other debtors 488 779 36 7

Prepayments 86 29 19 13

574 848 10,593 7,774

14. CASH AND CASH EQUIVALENTS

Group Company

2015 2014 2015 2014

£'000 £'000 £'000 £'000

Bank accounts 864 283 145 65

15. CALLED UP SHARE CAPITAL

Allotted and issued:

1,274,166,660 Ordinary Shares of 0.1p were issued during the year for cash as follows:

- On 26 January 2015, 466,666,664 Ordinary Shares of 0.1p each were issued at a share price of 0.30p raising £1,400,000.

- On 25 March 2015, 187,500,000 Ordinary Shares of 0.1p each were issued at a share price of 0.20p raising £375,000.

- On 2 April 2015, 100,000,000 Ordinary Shares of 0.1p each were issued at a share price of 0.20p raising £200,000.

- On 2 July 2015, 399,999,996 Ordinary Shares of 0.1p each were issued at a share price of 0.30p raising £1,200,000.

- On 10 November 2015, 120,000,000 Ordinary Shares of 0.1p each were issued at a share price of 0.50p raising £600,000.

16. RESERVES

Group

Share

Retained Share Warrant

Earnings Premium Reserve

£'000 £'000 £'000

At 1 January 2015 (12,731) 17,913 77

Deficit for the year (606) - -

Cash share issue - 2,502 -

Share issue costs - (99) -

At 31 December 2015 (13,337) 20,316 77

Group

Merger Translation

Reserve Reserve Totals

£'000 £'000 £'000

At 1 January 2015 909 (853) 5,315

Deficit for the year - - (606)

Cash share issue - - 2,502

Share issue costs - - (99)

Trans to translation reserve - (439) (439)

At 31 December 2015 909 (1,292) 6,673

Company

Share

Retained Share Warrant

Earnings Premium Reserve

£'000 £'000 £'000

At 1 January 2015 (12,538) 17,913 77

Deficit for the year (351) - -

Cash share issue - 2,502 -

Share issue costs - (99) -

At 31 December 2015 (12,889) 20,316 77

Company

Merger Translation

Reserve Reserve Totals

£'000 £'000 £'000

At 1 January 2015 909 (98) 6,263

Deficit for the year - - (351)

Cash share issue - - 2,502

Share issue costs - - (99)

At 31 December 2015 909 (98) 8,315

17. TRADE AND OTHER PAYABLES

Group Company

2015 2014 2015 2014

£'000 £'000 £'000 £'000

Current:

Trade creditors 399 1,343 69 26

Amounts owed to group undertakings - - 115 116

Other creditors 371 390 4 -

Accrued expenses 67 25 61 21

Directors' loan accounts 149 156 - -

986 1,914 249 163

18. FINANCIAL LIABILITIES - BORROWINGS

In February 2015, a loan of £165,380 was granted by the Banco Bilbao Vizcaya to Iberian Resources Spain SL secured against the VAT receivable at that time. Repayment of this loan in 12 equal instalments commenced in December 2015 and the balance outstanding at 31 December 2015 was £143,914.

The company issued a Convertible Zero interest Security with a nominal value of $800,000 (£513,000) to Bergen Global Opportunity Fund LP ("Bergen") a New York based institutional investment fund in 2014. This security may have been converted at the option of Bergen into Ordinary Shares, but before any such conversion occurred, the amount was fully repaid during the year.