Final Results

21 November 2011

LP Hill Plc

("LP Hill" or the "Company")

Final Results for the year ended 30 June 2011

LP Hill (AIM: LPH), the AIM listed uranium, thorium, base and precious metals exploration and development company operating in Madagascar, announces its audited final results for the year ended 30 June 2011.

Chairman's Statement

As reported previously, further to its reverse acquisition of Tranomaro Mineral Development Corporation Limited ("Tranomaro") in December 2009, the Company undertook and completed its Phase 1 exploration activities in Madagascar. These activities related mainly to the review of data, a desktop study, geological reconnaissance and mapping, along with soil, stream sediment and rock chip sampling. The Company is still currently awaiting receipt of the requisite environmental clearances and approvals from the relevant government authorities, before potentially embarking on Phase 2 of the planned exploration programme.

The second phase is likely to involve further petro-mineralogical studies, rotary air blast or diamond drilling and costeaning (trenching) of selected anomalies, analytical chemistry and sample assessment. The initial planned work programme was designed to be conducted over an approximate eighteen month to two year period and was initially budgeted at US$250,000 (approximately £158,000). A formal decision on whether to proceed with the second phase has still to be taken following the ongoing assessment of the results obtained from Phase 1. Since the acquisition of Tranomaro in December 2009, the Company has expended, in aggregate, approximately £208,500 on its exploration activities on the Marodambo Project in Madagascar, whilst currently awaiting the necessary environmental clearances in assessing whether to progress to Phase 2.

Reflecting the aforementioned exploration expenses and the ongoing costs associated with conducting the necessary due diligence on potential new project opportunities, the Company incurred a loss after tax for the twelve month period ended 30 June 2011 of approximately £320,364 (2010: loss of £786,358).

In order to provide additional working capital for the group, an existing significant shareholder in the Company, Hereford Group Limited, agreed to subscribe a further £300,000 for convertible unsecured loan notes with a conversion price of 10 pence per share which, unless converted, fall due for repayment on 14 March 2014.

In addition to the Company's ongoing early-stage exploration activities in Madagascar, the Board continues to actively seek further attractive mineral exploration projects focusing on the discovery, analysis and exploitation of projects involving precious and base metals, specifically those relating to the platinum group metals, gold, copper, manganese and zinc. The Company has reviewed a number of such projects with promising exploration potential, but regrettably the vendor(s) in each case were seeking purchase prices well above that considered acceptable to the Board in these current uncertain and volatile economic conditions.

Notwithstanding the potential identification of more suitably valued target project(s), the Company expects to raise additional equity and/or debt finance in due course to ensure that the group maintains an appropriate capital structure and is able to fund its ongoing working capital requirements, along with potential future development opportunities.

I would like to take this opportunity to thank all of our shareholders for their continuing support and patience and look forward to reporting progress in the year ahead.

Gerard A. Nealon

Chairman

18 November 2011 

Consolidated Statement of Comprehensive Income

For the year ended 30 June 2011

Consolidated Statement of Financial Position

As at 30 June 2011

Consolidated Statement of Changes in Equity

For the year ended 30 June 2011

Consolidated Statement of Cash Flow

For the year ended 30 June 2011

Notes forming part of the financial information

For the year ended 31 June 2011

1. General information

LP Hill Plc is currently a mineral exploration company. The Company is a public limited company listed on AIM, a market operated by the London Stock Exchange plc, and is incorporated in England and Wales with company number 05980987. The address of the registered office of the Company is 30 Portland Place, London W1B 1LZ.

The financial statements have been prepared on a going concern basis (see Note 8 below).

2. Basis of preparation and accounting policies

These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS), including IFRS 6 'Exploration for and Evaluation of Mineral Resources' and IFRIC interpretations issued by the International Accounting Standards Board (IASB) as adopted by the European Union and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS.

The audited financial information contained in this announcement does not constitute the Company's full financial statements for the year ended 30 June 2011 or 2010, but is derived from those financial statements, approved by the board of directors. The auditors' report on the 2011 accounts was (i) unqualified but did include an emphasis of matter paragraph relating to going concern and (ii) did not contain any statement under section 498(2) or (3) of the Companies Act 2006. The full audited financial statements for the year ended 30 June 2011 will be delivered to the Registrar of Companies and filed at Companies House following the Company's forthcoming annual general meeting.

The group's principal accounting policies have been consistently applied.

3. Taxation

The Company has unused losses to carry forward of £542,549 (2010: £361,688). Deferred tax assets arising from these losses of £162,765 (2010: £107,602) have not been provided for in these financial statements as their recovery is not probable in the foreseeable future.

4. Losses per share

Losses per ordinary share have been calculated using the weighted average number of shares in issue during the relevant financial year. The weighted average number of shares in issue before the exceptional item was basic 27,992,780 (2010: 23,168,068) adjusted for the historic share reorganisation and consolidation. Fully diluted the weighted average number of shares was 31,275,398 (2010: 25,544,796). The loss for the financial year before exceptional income was £320,364 (2010: £786,358).

5. Share capital

Number of outstanding existing Warrants at 30 June 2011:

Number of outstanding existing Warrants at 30 June 2010:

There is a share based payment charge of £50,467 in respect of the new warrants issued in the period to 30 June 2010 and £Nil for the period to 30 June 2011.

No warrants were granted in the year.

6. Operating loss

The average number of people (including executive directors) employed during the year was:

7. Post-balance sheet events

There were no events after the reporting period that are required to be disclosed.

8. Going concern

These financial statements have been prepared on the assumption that the Group is a going concern which the Directors believe to be appropriate. When assessing the foreseeable future, the Directors have considered a period of twelve months from the date of approval of these financial statements. The Directors acknowledge that the Group will be likely to continue making operating losses for the foreseeable future and therefore the Group and Company remain reliant upon their ability to raise finance through other means. The Group is still at an early stage with respect to its Maradambo exploration project in the Tranomaro area of Madagascar and the Directors are currently exploring options to raise further funds to finance the Group's projected working capital requirement over the next twelve month period. The uncertainty as to the timing and amount of such a fund raising exercise requires the Directors to consider the Group's ability to continue as a going concern. During this reporting period, the directors raised an additional £300,000 of cash funding by way of a new convertible loan note.

The support of the Group's shareholders has been evident in the recent past and continues to be of significant importance and, notwithstanding the aforementioned uncertainty, the Directors are confident that sufficient support will be received from existing shareholders and potential new investors to enable the funding requirement to 30 November 2012 to be satisfied. The Directors will continue to carefully manage the Group's existing resources and control costs at all times. Accordingly, the Directors are confident that the going concern basis is appropriate and are satisfied that new investment will be forthcoming in the period as and when required.

Were the Group to be unable to continue as a going concern, adjustments may have to be made to the balance sheet of the Group to reduce the balance sheet values of assets to their recoverable amounts, to provide for future liabilities that might arise and to reclassify non-current assets and long-term liabilities as current assets and liabilities.

9. Related party transactions

The Company charged a management fee of £36,344 (2010: £200,000) to Tranomaro Mineral Development Corporation Limited ("TMDC") in the year and, at the year end, TMDC had a balance of £444,511 (2010: £307,793) payable to the Company.

10. Availability of Annual Report and Financial Statements

Copies of the Company's full Annual Report and Financial Statements are being posted to shareholders today and, once posted, will also be made available to download from the Company's website at www.lphill.com.au.

The Annual Report and Financial Statements will also be made available for inspection at the Company's registered office during normal business hours on any weekday. LP Hill Plc is registered in England and Wales with registered number 05980987. The registered office is at 30 Portland Place, London W1B 1LZ. 

11. Annual General Meeting

The Company's next Annual General Meeting ("AGM") will be held at 10.30 a.m. on 14 December 2011 at the offices of Joelson Wilson LLP, 30 Portland Place, London W1B 1LZ and a formal Notice of AGM is set out at the end of the Annual Report and Financial Statements being posted to shareholders today.

For further information, please contact:

LP Hill Plc +61 8 9368 1566

Gerry Nealon, Executive Chairman +61 4 1654 1873

Bernard Olivier, Non-Executive Technical Director +61 4 0894 8182

Strand Hanson Limited +44 (0) 20 7409 3494

James Harris

Matthew Chandler

David Altberg

Ocean Equities Limited +44 (0) 20 7786 4370

Justin Tooth

Guy Wilkes

Or visit: www.lphill.com.au