Final Results

27 May 2014

HUNTER RESOURCES PLC

("Hunter" or the "Company")

Final Results for the year to 31 December 2013

Final Results

Hunter Resources Plc (AIM: HUN), today announces its final results for the year to 31 December 2013, which are published below. The Company's annual report and audited accounts for the year have been published on the Company's website http://www.hunter-resources.com/ in accordance with the Company's articles of association, and are available to shareholders.

Enquiries:

Report of the Executive Chairman

Dear Shareholder,

I am pleased to announce the results of the Hunter Resources Plc ('Hunter' or the 'Company') group (the 'Group') for the year ended 31 December 2013.

Update on the implementation of the Company's Investing Policy and Reverse Takeover discussions

Since becoming an Investment Company, the Board of Directors (the 'Board' or the 'Directors') has reviewed a large number of investment opportunities in natural resource exploration and development projects, focussed initially in South America and later more specifically in Peru. Peru became of particular focus for Hunter due to the resource potential that it offers, its established mining regulatory regime and the presence of many of the world's largest mining companies, operating mines for a range of minerals. Hunter also identified an outstanding management team with the technical and financial management capabilities needed to see a project through development and into operation (the 'Management Team'), with extensive experience in South America and in particular Peru.

The Management Team, through Global Pearl Limited ('GPL'), a company they control, had already independently secured an interest in a potentially high grade, gold and silver project, with some base metal credits, consisting of 36 veins identified from surface outcrops ('Project Pampamali'). The high-grade veins have mapped outcrops of between 100 and 2,000 meters in length, with widths ranging from 0.20 to over 3.00 metres. Project Pampamali consists of 8 exploration concessions with a total area of 3,500 hectares and is located in central Peru in the Department of Huancavelica, approximately 550 km by road from the City of Lima.

The Management team has negotiated a deal under a farm in structure, which includes a combination of cash payments to the existing owners of Project Pampamali and carrying out additional investment in exploration activities on the property, whereby over time and in various stages an economic interest of up to 80% can be acquired. This allows for a proper assessment of the property before a significant outlay has been incurred.

In addition to Project Pampamali, the Management Team has identified a strong pipeline of other opportunities in Peru which are under negotiation.

As announced on 30 December 2013, the Company entered into a Memorandum of Understanding (the 'MOU') with GPL pursuant to which the Company may acquire 100% of the issued share capital of Gold Hunter S.A.C ('GH'), a 100% owned Peruvian subsidiary company of GPL, in exchange for an issue of Ordinary Shares in Hunter equating to 10% of its Ordinary Share capital at the date of completion of the transaction (the 'Potential Transaction'). The MOU is subject, inter alia, to (1) GH entering into a joint venture agreement with the existing owners of Project Pampamali, and (2) the Company raising new capital of between £1.00m and £1.25m to fund the initial cash requirements of Project Pampamali.

The detailed terms of the Potential Transaction are being finalised. Subject to satisfactory terms being agreed on all material matters, Hunter hopes to publish a new Admission Document containing all details of the proposed funding and the Proposed Transaction as soon as possible in order to complete the Potential Transaction in the near future.

Funding

In order to provide funds for the initial implementation of the Company's Investment Policy, Hunter raised £310,000 in January 2013 through a combination of an underwritten subscription of Ordinary Shares and the issue of a convertible loan note (refer respectively to notes 21.1 and 15 to the Financial Statements). Subsequent interim funding for the Potential Transaction has been obtained from the Company's largest shareholder, Marine Investments (WA) Pty Limited ('Marine') by way of two convertible loan facilities totalling up to £0.19m. Further details on these facilities are provided in note 21.1 to the Financial Statements. The Directors anticipate that, subject to the Company raising equity funds of between £0.81m and £1.06m through the issue of new Ordinary Shares to provide the capital required to commence the development of Project Pampamali, this funding will be sufficient to complete the Proposed Transaction in accordance with its terms.

Outlook

With funding provided by the two convertible loan facilities, the Board is confident of moving forward to completion of the Potential Transaction as soon as possible and for the Company's shares to be re-admitted to trading on AIM. This will provide access to the necessary liquidity to raise additional funding for both the development of Project Pampamali and to progress the strong pipeline of opportunities which the Management Team has identified. With this team, a strong board going forward and the potential high value of Project Pampamali, we are confident that the Company can generate significant value for shareholders.

Consolidated and Company Statements of Profit or Loss

and Other Comprehensive Income

for the year ended 31 December 2013

The loss and the total comprehensive loss for the current and preceding financial years are wholly attributable to equity holders of the parent Company.

Consolidated and Company Statements of Financial Position

as at 31 December 2013

These financial statements were approved by the Board of Directors and authorised for issue on 20 May 2014. Signed on behalf of the Board of Directors by:

Consolidated and Company Cash Flow Statements

for the year ended 31 December 2012

1. GENERAL INFORMATION

Hunter Resources Plc is a company incorporated and domiciled in the Isle of Man, under the Companies Acts 1931 to 2004, with registered number 115011C. Further details, including the address of the registered office, are given in the section of this report entitled 'Company Information and Advisers'. The nature of the Company and Group's operations and its principal activities are set out in the Directors' Report. Details of the Company's dormant subsidiary, including the name, country of incorporation, operation and ownership interest are given in note 12.

As permitted by the AIM Rules for Companies, the financial statements have been prepared in accordance with IFRSs as issued by the IASB as they apply to the financial statements of the Company and Group for the year ended 31 December 2013.

The consolidated financial information is a consolidation of the Company and its subsidiary. These financial statements are presented in thousands of Pounds Sterling. Foreign operations are included in accordance with the policies set out in note 3.5.

2. ADOPTION OF NEW AND REVISED STANDARDS AND INTERPRETATIONS

2.1. New Standards and Interpretations adopted with no significant effect on the financial statements

The following new and revised Standards and Interpretations have been adopted in these financial statements. Their adoption has not had any significant impact on the amounts reported in these financial statements, but may impact the accounting for future transactions and arrangements.

2.2. New Standards and Interpretations in issue but not yet effective

At the date of authorisation of these financial statements, the following Standards and Interpretations are in issue but not yet effective (and in some cases had not yet been adopted by the EU):

The Directors do not anticipate that the adoption of these Standards and Interpretations will have a material impact on the Group's financial statements in the period of initial application.

3. SIGNIFICANT ACCOUNTING POLICIES

3.1. Basis of preparation

The Group's and the Company's financial statements are prepared on the historical cost basis. The Group's and the Company's accounting policies have been consistently applied to the results, gains and losses, assets, liabilities and cash flows of entities included in the financial statements.

3.2. Critical accounting judgments and sources of estimation uncertainty

The preparation of financial statements in conformity with IFRSs requires the Directors to make judgements, estimates and assumptions that affect the application of policies and the reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that year or in the year of the revision and future periods if the revision affects both current and future years. Other than as discussed in note 3.2.1there are no critical accounting judgments or estimates that are considered to be material by the Directors.

3.2.1. Critical accounting judgements

The following are the critical judgements that the Directors have made in the process of applying the Group's accounting policies and that have the most significant effect on the amounts recognised in the financial statements.

3.2.1.1. Going concern

The Company's (and by extension the Group) financial statements have been prepared on a going concern basis, which contemplates the continuity of business activity. As described in the Chairman's Statement on page 4, the company entered into a Memorandum Of Understanding (MOU) to acquire 100% of the share capital of Gold Hunter S.A.S and enter into a joint venture agreement with the existing owner of Peruvian gold and silver project (the Proposed Transaction).

As at the date of this report the Company has available cash balances of approximately £6,500 and undrawn lending facilities under the New Loan Notes (as defined and more fully described in note 21.1) of approximately £80,000 which are sufficient for the foreseeable working capital requirements of the Company (for a period of at least 12 months from the date these financial statements are signed), including the interim funding required to take the Proposed Transaction to completion stage. This assumes that the existing Loan Note and New Loan Notes, which are due to be repaid on 31 December 2014 and 30 June 2014 respectively, are not required to be repaid within 12 months of the date of which these financial statements have been signed. Having consulted with the existing Loan Note and New Loan Notes holder, Marine Investments (WA) pty Ltd, the directors are confident that the existing Loan Note and New Loan Notes will not require repayment before 30 June 2015.

The Company's available cash balances and undrawn lending facilities are insufficient to fund the full implementation of the Proposed Transaction which requires the Company to access up to £1,250,000 of additional new funding by 30 June 2014, which in all likelihood will involve the issue of additional new Ordinary Shares or convertible loan notes. The attractiveness of the Company's Ordinary Shares and convertible loan notes as an investment opportunity will depend on a number of factors, including but not limited to, the quality and experience of its management team, the nature of the projects it identifies, the liquidity of the Company's equity instruments and the anticipated return available to Shareholders.

The Directors believe that the Proposed Transaction will provide attractive returns to investors and, having consulted with the Company's financial advisers, the Directors believe that the Company will be able to raise the additional funding to complete the Proposed Transaction by 30 June 2014. While the Directors have been successful in securing funding in March 2014 (refer to note 21.1), there can however be no certainty that additional funding will be available, or if available, whether the terms will be acceptable to the Company. There can also be no certainty that the final terms of the Proposed Transaction will be agreed, or if agreed, that the Proposed Transaction will be completed within the necessary timeframe to 30 June 2014, after which the listing of the Company's Ordinary Shares on AIM would be cancelled which would in all likelihood prevent the Company from raising additional funds from the issue of new Ordinary Shares or convertible loan notes. Consequently, there is a material uncertainty which may cast significant doubt on the Company's ability to continue as a going concern beyond 12 months of the date of signing these financial statements. Further, if the existing Loan Note and New Loan Notes holder was to require repayment of the loans prior to 30 June 2015, there is a material uncertainty which may cast significant doubt on the Company's ability to continue as a going concern within 12 months of the date of signing these financial statements.

3.2.1.2. Convertible Loan Notes - initial measurement

In January 2013 the Company issued £26,000 (pre issue expenses) of Convertible Loan Notes (the 'Loan Note'). While in legal form the Loan Note is a liability of the Company, IFRSs requires the Group to identify the equity and liability component parts of the instrument and assign a value to each. Identification and valuation of the components requires management to exercise judgment. Further details are provided in note 15.

3.2.1.3. Warrants

Warrants issued in the period to the Directors and certain providers of services are accounted for as share based payments. The fair value of the warrants is measured at their grant date using a valuation model. The valuation is sensitive to the inputs in the valuation model, some of which require judgment. The warrants do not create any obligation on the Company other than to deliver Ordinary Shares in the Company for a fixed price at the option of the holder, over the life of the warrants. Further details are provided in note 17.

3.3. Basis of consolidation and discontinued operations

The Consolidated financial statements (comprising the balances and transactions identified as 'Group' within these financial statements) incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries) made up to 31 December. Control is achieved where the Company has the power to govern the financial and operating policies of an investee entity so as to obtain benefits from its activities.

The results of subsidiaries acquired or disposed of during the year are included in the Consolidated Statement of Profit or Loss and Other Comprehensive Income from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by the Group.

All intra-group transactions, balances, income and expenses are eliminated on consolidation.

The acquisition of subsidiaries is accounted for using the purchase method. The cost of the acquisition is measured at the aggregate of the fair values, at the date of exchange, of assets given, liabilities incurred or assumed, and equity instruments issued by the Group in exchange for control of the acquiree, plus any costs directly attributable to the business combination. The acquiree's identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under IFRS 3 are recognised at their fair value at the acquisition date, except for non-current assets (or disposal groups) that are classified as held for resale in accordance with IFRS 5, Non-Current Assets Held for Sale and Discontinued Operations, which are recognised and measured at fair value less costs to sell.

Goodwill arising on acquisition is recognised as an asset and initially measured at cost, being the excess of the cost of the business combination over the Group's interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised. If, after reassessment, the Group's interest in the net fair value of the acquiree's identifiable assets, liabilities and contingent liabilities exceed the cost of the business combination, the excess is recognised immediately in profit or loss.

During the period ended 31 December 2012, the Group abandoned its Jatropha Operations principally undertaken through its subsidiary company in Madagascar. The Jatropha Operations represented a single, identifiable cash generating unit of the Group being the major component of the Group's operations as at the date they were discontinued. As required by IFRS 5, the results of the Jatropha Operations were presented within discontinued operations in the Consolidated Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2012. There have been no further results, cash flows or transactions with respect to these discontinued operations during the year ended 31 December 2013.

3.4. Revenue recognition

The Group did not recognise any revenue from the sale of goods or services in either period presented. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount.

3.5. Foreign currencies

In preparing the financial statements of the individual companies in the Group, transactions in currencies other than the entity's functional currency (foreign currencies) are recorded at the rates of exchange prevailing on the dates of the transactions. At each balance sheet date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the balance sheet date. Non-monetary items carried at fair value that are denominated in foreign currencies are translated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

Exchange differences are recognised in profit or loss in the year in which they arise except for:

· exchange differences which relate to assets under construction for future productive use, which are included in the cost of those assets when they are regarded as an adjustment to interest costs on foreign currency borrowings; and

· exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither planned nor likely to occur, which form part of the net investment in a foreign operation, and which are recognised in the foreign currency translation reserve and recognised in profit or loss on disposal of the net investment.

For the purpose of presenting consolidated financial statements, the assets and liabilities of the Group's non GBP functional currency entities are translated at exchange rates prevailing on the balance sheet date. Income and expense items are translated at the average exchange rates for the year, unless exchange rates fluctuate significantly during that year, in which case the exchange rates at the date of transactions are used. Exchange differences arising, if any, are classified as other comprehensive income and transferred to the Group's translation reserve. Such translation differences are recognised as income or as expenses in the year in which the operation is disposed of, or abandoned. Translation differences arising on the Jatropha Operations (as defined in Note 4) were accordingly recognised within the loss for discontinued operations for the year ended 31 December 2012. There has been no further translation differences in the year ended 31 December 2013.

Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate.

3.6. Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the Statement of Profit or Loss and Other Comprehensive Income because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates, and interests in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax is calculated at the tax rates that are expected to apply in the year when the liability is settled or the asset is realised. Deferred tax is charged or credited in the statement of comprehensive income, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis.

3.7. Property, plant and equipment

Items of property, plant and equipment are initially recorded at cost, being the fair value of consideration paid plus incidental costs, including an amount for dismantling costs where applicable. Items of plant and equipment, including motor vehicles, fixtures and fittings and leasehold improvements are depreciated from the date of acquisition using the straight line method over their estimated useful lives. Depreciation rates are reviewed annually.

The depreciation rates used for each class of asset are as follows:

Motor vehicles 25%

Fixtures and equipment 5% - 40%

As at 31 December 2013 and 31 December 2012 the Group had no items of property, plant and equipment.

3.8. Investment in subsidiary

The investment in subsidiary undertakings in the Company only financial statements is stated at cost, less any provision for impairment.

3.9. Impairment of assets

At each reporting date, the Group reviews the carrying amounts of its tangible and intangible assets and biological assets, and the Company further reviews the carrying amount of its investment in subsidiary undertakings, to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where the asset does not generate cash flows that are independent from other assets, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Goodwill, intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually and whenever there is an indication that the asset may be impaired. An impairment of goodwill is not subsequently reversed.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised in profit or loss immediately.

Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (cash-generating unit) in prior years. A reversal of an impairment loss is recognised in profit or loss immediately.

3.10. Financial instruments

Financial assets and financial liabilities are recognised on the balance sheet when the Group becomes a party to the contractual provisions of the instrument.

3.10.1. Loans and other receivables

Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment. Interest income is recognised by applying the effective interest rate, except for short-term receivables when recognition of interest would be material.

All of the Group's financial instruments are classified as 'loans and receivables'.

3.10.2. Other financial liabilities

Trade payables and other payables are carried at amortised cost and represent liabilities for goods and services provided to the Group prior to the end of the financial year that are unpaid and arise when the Group becomes obliged to make future payments in respect of the purchase of these goods and services.

3.10.3. Compound instruments

The component parts of compound instruments, comprising convertible loan notes issued by the Company, are classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangement. At the date of issue, the fair value of the liability component is estimated. For convertible loan notes, this amount is recorded as a liability on an amortised cost basis using the effective interest method until extinguished upon conversion or at the instrument's maturity date. The equity component is determined by deducting the amount of the liability component on initial measurement from the fair value of the compound instrument as a whole. This is recognised and included in equity and is not subsequently re-measured.

3.10.4. Impairment of financial assets

The Group assesses at the end of each reporting period whether there is objective evidence that a financial asset or group of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a 'loss event') and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated.

For the loans and receivables category, the amount of the loss is measured as the difference between the asset's carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset's original effective interest rate. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the reversal of the previously recognised impairment loss is recognised in the consolidated income statement.

3.11. Share-based payments

Equity-settled share-based payments with employees and others providing similar services, which include share options, warrants and other similar instruments, are measured at the fair value of the equity instrument at the grant date. Fair value is measured by use of an appropriate valuation model, generally Black-Scholes or Bi-nomial. The expected life used in the model has been adjusted, based on management's best estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations.

The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Group's estimate of equity instruments that will eventually vest. Where there is no vesting period, the fair value is expensed immediately.

At each reporting date, the Group revises its estimate of the number of equity instruments expected to vest. The impact of the revision of the original estimates, if any, is recognised in profit or loss over the remaining vesting period, with corresponding adjustment to the equity-settled employee benefits reserve.

Equity-settled share-based payment transactions with other parties are measured at the fair value of the goods and services received, except where the fair value cannot be estimated reliably, in which case they are measured at the fair value of the equity instruments granted, measured at the date the entity obtains the goods or the counterparty renders the service.

For cash-settled share-based payments, a liability equal to the portion of the goods or services received is recognised at the current fair value determined at each reporting date.

4. SEGMENT REPORTING

IFRS 8, Operating Segments, requires operating segments to be identified on the basis of internal reports of the Group that are regularly reviewed by the Group's chief operating decision maker ('CODM'). The CODM of the Group is considered to be the Board. Until 12 April 2012, the Directors considered that the primary reporting format for the Group was by business segment. The Directors considered there to be one business segment, being the management of Jatropha plantations to produce oil based fruit, principally for the production of biodiesel (the 'Jatropha Operations'). All administrative expenditure of the Group, and all assets and liabilities, were allocated to this segment. The Group abandoned the Jatropha Operations on 12 April 2012. The directly identifiable income and expenditure related to the Jatropha Operations are presented within discontinued operations in note 10. Following the approval by the Company's shareholders at the Annual General Meeting of the Company held in (the '2012 AGM') of the new Investing Policy (refer to section 2 of the Directors' Report), the Company became an Investing Company on AIM. All income and expenditure for continuing activities is now allocated to this activity which accounts for all of the Group's assets and liabilities as at 31 December 2013 and 31 December 2012 and all of the Group's results and cash flows for the 12 month period ended 31 December 2013.

5. LOSS BEFORE TAXATION

Loss before taxation from continuing operations is stated after charging / (crediting):

6. STAFF NUMBERS AND COSTS

The average number of persons employed (including Executive Directors) during the year, by category, was as follows:

The costs incurred in respect of these employees, all of which relate to continuing operations in both periods presented, were:

Staff costs exclude non-executive Director's emoluments. Information on the remuneration of the Directors, including executive and non-executive Directors is provided in note 7.

7. REMUNERATION OF DIRECTORS AND KEY MANAGEMENT

The Directors' remuneration (who are the key management personnel) in respect of both the Group and the Company is as follows:

8. NET FINANCE (EXPENSE) / INCOME

9. INCOME TAX EXPENSE

The Income Tax (Amendment) Act 2006 provides that a standard zero rate of income tax applies to the Company in the Isle of Man for 2006/07 and subsequent years of assessment. Therefore no provision for liability to Isle of Man income tax has been included in these accounts. The Group's continuing operations are all resident for tax purposes in the Isle of Man.

The Company's subsidiary pays tax at a rate of 23% on its taxable profits. No tax charge has been recorded in the current or preceding financial year within discontinued operations in respect of the operations of the subsidiary because it has not incurred any income or expenditure in the year and accordingly has no taxable result.

Due to the above factors, there is no difference between the statutory tax rate applicable to the Group from continuing operations and the effective tax rate.

10. DISCONTINUED OPERATIONS

In April 2012 the Group abandoned the Jatropha Operations following a detailed assessment of the commercial viability of these operations which is more fully described in the financial statements for the year ended 31 December 2012. The Jatropha Operations were principally conducted through the Company's subsidiary in Madagascar, which is now dormant (note 12).

The Jatropha Operations represented the major business segment of the Group at the date of abandonment and accordingly, as required by IFRS 5, the results of the Jatropha Operations were presented as discontinued operations within the Consolidated Statement of Profit or Loss and Other Comprehensive Income for the financial year ended 31 December 2012. The results of the discontinued Jatropha Operations, which have been included in the Consolidated Statement of Profit or Loss and Other Comprehensive Income, were as follows:

During the year ended 31 December 2012, the Jatropha Operations contributed a cash outflow of £29,000 to the Group's net operating cash outflows. There were no further cash flows arising from the Jatropha Operations in either period presented.

11. LOSS PER ORDINARY SHARE

There is no difference between the diluted loss per share and the basic loss per share presented as the Group and Company are loss making in all periods presented and instruments that are in issue which could result in the issue of new Ordinary Shares, being the warrants disclosed in note 17, are anti-dilutive.

11.1. From continuing and discontinued operations

The calculation of basic and diluted loss per share from continuing and discontinued operations is based on the following data:

11.2. From continuing operations

The calculation of basic and diluted loss per share from continuing operations is based on the following data:

12. INVESTMENTS IN SUBSIDIARY UNDERTAKINGS

The Company has one direct, 100% owned dormant subsidiary undertaking, Green Energy Madagascar sarl ('Green Energy'), a company incorporated in Madagascar. In all periods presented the Company's investment at cost in Green Star amounts is £2,169,000. The investment is fully provided against such that the carrying value of 'Investments in subsidiary undertakings' within the Company only financial statements is £nil as at 31 December 2013 and 31 December 2012.

13. PROPERTY, PLANT AND EQUIPMENT

14. TRADE AND OTHER PAYABLES

The amounts reported above principally comprise amounts outstanding for recurring expenditure of the Company, such as audit, accounting and company secretarial fees (2012: principally comprise amounts outstanding for Directors and ex-employees and recurring expenditure of the Company). The amounts are stated at their invoiced value, or amount payable based on the Directors assessment of obligations incurred but not yet invoiced.

15. CONVERTIBLE LOAN NOTES

15.1. Carrying value

The following summarises the movements in the convertible loan notes liability and equity components for the Company and Group during the period:

15.2. Initial measurement

In January 2013, the Company secured the placing of £26,000 of convertible loan notes (the 'Loan Note') with Marine Investments (WA) Pty Ltd ('Marine') raising gross proceeds of £26,000 before expenses. The Loan Note carries no interest charge, is unsecured and was repayable within one year and is convertible (in part or in full) into Ordinary Shares in the Company at the holders request at any time and at a conversion price of £0.001 per Ordinary Share. By mutual agreement between the Company and Marine, the fees and Underwriting Warrants due to Marine under the Underwriting Agreement (refer to notes 16.2 and 17.4.1) were extended to the Loan Note as if the Loan Note were a subscription of new Ordinary Shares in the Company. Accordingly, fees of £1,000 were allocated to the issue of the Loan Note. Further and by mutual agreement between the Company and Marine, the term of the Loan Note was extended on 3 March 2014 to 31 December 2014 (refer to note 21.1).

While in legal form the Loan Note is a liability of the Company, the Loan Note includes components with liability and equity features as defined under IFRS. IAS 32, 'Financial Instruments: Presentation', requires the Group to identify the equity and liability component parts of the instrument and assign a value to each. The material components have been identified as the host debt contract and a holder call option to convert to Ordinary Shares. The fair value of the host debt component has been determined at £21,000 based on the present value of the contractual stream of future cash flows (being the redemption amount) discounted at the market rate of interest that would have applied to an instrument of comparable credit quality with substantially the same cash flows, on the same terms, but without the conversion feature. The relevant market interest rate applicable to the Company has been estimated at 25%. The balance of the gross proceeds received of £5,000 has been established as the equity component of the Loan Note. After allocation of the £1,000 issue expenses pro-rata to the carrying value of each component, the liability component was initially recorded at £20,000 and the equity component at £5,000. The liability component is subsequently measured at amortised cost using the effective interest rate method and an effective interest rate of 31.58%. The equity component is not re-measured.

16. SHARE CAPITAL, SHARE PREMIUM AND RESERVES

16.1. Authorised share capital and rights attaching to shares

The authorised share capital of the Company as at 31 December 2013 and 31 December 2012 is comprised of the following:

The Company's Ordinary Shares carry no right to fixed income. Each Ordinary Share carries the right to one vote at the general meetings of the Company. The Company's Deferred Shares do not carry voting rights or a right to receive a dividend. The holders of Deferred Shares do not have the right to receive notice of any general meeting of the Company, nor have any right to attend, speak or vote at any such meeting. In addition, holders of Deferred Shares will only be entitled to a payment on a return of capital or on a winding up of the Company after each of the holders of Ordinary Shares has received a payment of £100,000 in respect of each Ordinary Share. Accordingly, the Deferred Shares have no economic value. The Deferred Shares are not admitted to trading on any stock exchange.

16.2. Shares in issue, Share capital and Share premium

The table below presents a reconciliation of the Company's Ordinary Shares and Deferred Shares in issue and the Company's Share capital and Share premium accounts:

On 7 January 2013 the Company raised £284,000 (pre issue expenses) through a subscription (the 'Subscription') of 284,131,944 new Ordinary Shares (the 'Subscription Shares') at a price of £0.001 per Subscription Share. The Subscription, in combination with the issue of the Loan Note (refer to note 15) was completed to provide funds to the Company for working capital purposes and to commence implementing its Investing Policy.

The Subscription was underwritten by Marine by way of an underwriting agreement (the 'Underwriting Agreement') dated 4 December 2012. In accordance with the terms of this agreement, Marine undertook to subscribe for new Ordinary Shares at £0.001 per Ordinary Share (the 'Subscription Price') in respect of the amount by which the aggregate proceeds of the Subscription (before expenses) received by the Company were less than £250,000. The Subscription was therefore underwritten by Marine to the extent required to result in the Company raising a minimum of £250,000 (before expenses) pursuant to the Subscription. In consideration for underwriting the Subscription and conditional on Marine performing its obligations under the Underwriting Agreement, the Company agreed to pay a fee of 5 per cent of the total gross proceeds of the Subscription and to issue the Underwriting Warrants (refer to note 17) to Marine. To provide additional funds to the Company, by mutual agreement between the Company and Marine, and following the Subscription raising in excess of the underwritten amount, Marine agreed to subscribe (in addition to £108,000 through the Subscription) for the Loan Notes (refer to note 15) and the terms of the Underwriting Agreement were extended to the issue of the Loan Notes as if the Loan Notes were a subscription of Ordinary Shares by Marine. Marine was accordingly due a fee in cash of £16,000 (the 'Fee') in connection with the Subscription and Loan Notes which was settled from the proceeds of the Subscription and a further 62,000,000 Underwriting Warrants which were issued in accordance with the terms of that agreement (refer to note 17.4.1). The Fee was allocated between the issue of Ordinary Shares and the Loan Notes in proportion to the relative gross proceeds received by the Company, with £15,000 charged to the Share premium account.

16.3. Agreements with Marine

In addition to the Underwriting Agreement (refer to note 16.2) and by way of separate agreement dated 4 December 2012, the Company has agreed that Marine will receive a fee if Marine identifies a transaction for the Company as a result of which the Company is subject to a reverse takeover pursuant to the AIM Rules. If such a transaction arises, the Company will pay a fee to Marine equal to £50,000 in cash and the issue for no additional consideration of 20,000,000 Ordinary Shares. In the event that the Proposed Transaction is successful, this fee will become payable to Marine.

16.4. Share Premium reserve

The Share Premium reserve represents the premium over the nominal value of Ordinary Shares raised on the issue of Ordinary Shares by the Company, less expenses incurred directly in connection with the issue of new Ordinary Shares.

16.5. Currency translation reserve

For the purpose of presenting consolidated financial statements, the assets and liabilities of the Group's non GBP functional currency entities are translated at exchange rates prevailing at the balance sheet date. Income and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuate significantly during that period, in which case the exchange rates at the date of the transactions are used. Exchange differences arising are taken to the 'Currency translation reserve'. Following the abandonment of the Jatropha Operations during the year ended 31 December 2012, exchange differences accumulated in the currency translation reserve related to those operations conducted through Green Energy were recycled to profit and loss from discontinued operations (refer to note 10). The amounts reported in the 'Currency translation reserve' as at 31 December 2013 and 31 December 2012 relate to the parent Company and arose prior to 1 January 2012, the date on which the Company's functional currency was changed from US$ to GBP. From that date the Company's functional currency and presentation currency are both GBP and accordingly no movements will occur on the 'Currency translation reserve' until either the Company's operations are disposed of, or the Company's functional currency or Group's presentation currency, are changed.

17. SHARE-BASED PAYMENTS

17.1. Equity-settled share options and warrants

The Company and Group have two share option schemes for Directors and executives of the Group. Options and warrants over Ordinary Shares in the Company are also issued to Directors for services rendered and certain service providers. These instruments are not granted under the terms of the Share Plan.

17.2. Charge in the period

The total charge recorded in profit and loss within continuing operations for share based payments in the year ended 31 December 2013 was £76,000 (31 December 2012: £nil) of which £69,000 arises in respect of the 36,000,000 Directors Warrants (refer to note 17.4.3below) and £7,000 arises in respect of the 3,000,000 Allenby Warrants (refer to note 17.4.2below). A further £151,000 was charged to the Share premium account for expenses incurred in respect of the Subscription for underwriting services provided by Marine (refer to note 17.4.1below). All amounts recorded in the current period relate to warrants issued outside of the share option schemes by the Company.

17.3. Summary of share options and warrants accounted for as share based payments

Details of the number of Ordinary Shares that may be issued to satisfy share options and warrants which are accounted for as share based payments are as follows:

Details of exercisable share options and warrants which are accounted for as share based payments are as follows:

The outstanding and exercisable options and warrants and bonus shares that are accounted for as share based payments could result in the issue of new Ordinary Shares at the following prices: