Final Results - Preliminary Statement

Leed Resources Plc

("Leed" or the "Company")

Preliminary statement

for the year ended 30 June 2012

Leed, the AIM quoted natural resource investment company, is pleased to announce its preliminary final results for the year ended 30 June 2012.

Chairman's statement

As shareholders will be aware, Leed is now an investing company, focused on investments in the energy and other natural resources sectors. This resulted from the failure of the previous US oil and gas operations and the subsequent reconstruction in which the Company raised £2.435 million and changed its activities, as described in my last Chairman's Statement. The loss for the period under review amounted to £372,000, which includes some costs relating to the previous year's restructuring and refinancing.

Since that time, the Company has made an investment in Manas Coal LLC ("Manas"), a coal exploration company with a licence at Kok Kiya, Kyrgyzstan where significant quantities of good quality coal are thought to be located.

As announced on 9 August 2012, Manas have been notified of a rival claim in relation to a part of the Kok Kiya licence, and this claim remains under dispute. Manas have assured us that, based on local legal advice, they expect to have their full licence area restored in due course but that in any event a significant and viable coal deposit exists in the undisputed area. In view of this claim, however, they have suspended the work programme pending resolution of the dispute. On 30 November 2012 the Kok Kiya licence expired in accordance with its terms. Manas are now in the process of applying for a renewal of the licence, and they have taken the necessary steps to secure the renewal, initially for the part of the licence which is not in dispute. They believe that the renewal process will be completed in the coming weeks.

The Directors have reviewed the investment in Manas in light of the above and believe that this should continue to be held at cost. We will keep the situation under review.

We have also made investments in a number of sizeable AIM-listed oil and gas companies. In addition, we have reviewed a range of investment/reverse takeover opportunities. We continue to review and pursue potential value enhancing reverse takeover and other opportunities.

As a result of our investment activities we have now successfully implemented our investment policy, so maintaining our status as an AIM investment company.

Since the year end, the Company raised a further £959,000 providing it with significantly enhanced cash resources to enable it to meet its objectives of securing a major reverse or investment transaction.

While market conditions remain challenging, we are optimistic of being able to complete such a transaction during the current financial year.

Peter Redmond

Chairman

20 December 2012

Note: The 2011 comparative figures are stated in £GBP and relate to the company only. In the 2011 financial statements the figures were stated in $USD and related to the Consolidated Group.

* - The comparative figures for 2010 and 2011 have been restated in GBP. The amounts in the financial statements for 2011 were stated in USD. (see Note 1 for further details)

* - The comparative figures for 2011 have been restated in GBP. The amounts in the financial statements for 2011 were stated in USD. (see Note 1 for further details)

Statement of cash flows

* - The comparative figures for 2011 have been restated in GBP. The amounts in the financial statements for 2011 were stated in USD. (see Note 1 for further details)

1. General information

Leed Resources PLC is a publicly quoted company registered in the United Kingdom. The address of its registered office is 31 Harley Street, London, W1G 9QS.

The Company disposed of its subsidiary during the prior year and therefore the comparative amounts now only include the operations of the Company and not the former consolidated figures. The investment in the subsidiary had been written off at the time of the disposal.

Change in accounting policy

The Company's functional and presentational currency in the prior period was the US dollar but following the disposal of its US subsidiary the functional and presentational currency has been changed to Pound Sterling. As this represents a change in accounting policy the comparative period figures have been restated in Pound Sterling. The exchange rate used for the restatement of the financial period ended 30 June 2011 was $1.60135.

2. Loss per Ordinary Share

A recap of loss per ordinary share and weighted average shares outstanding for the years ended 30 June 2012 and 2011, respectively, follows:

3. Investments

LEVEL 1 - Where financial instruments are traded in active financial markets, fair value is determined by reference to the appropriate quoted market price at the reporting date. Active markets are those in which transactions occur in significant frequency and volume to provide pricing information on an on-going basis.

LEVEL 3 - Valuations in this level are those with inputs that are not based on observable market data.

4. Share capital

The share capital is as follows:

The deferred shares have restricted rights such that they have no economic value.

On 22 December 2011, 166,666,667 shares of 0.1p were issued at par as part consideration for the acquisition of a 17.5% interest in Manas Coal Limited, representing a total value of £166,667.

5. Post year end events

On 9 August 2012 the Company announced that it had been advised by Manas that a third party company which holds a licence over an adjoining area to the Kok Kiya Licence might have an interest in part of the Kok Kiya Licence area. The third party is claiming that that its licence covers part of the area held by the Kok Kiya Licence.

The Company has been informed by Manas that the overlapping area does not represent all of the prospective part of the Kok Kiya Licence area, but is thought to comprise a material part. However, Manas has stated that it would still wish to continue to hold its Kok Kiya Licence even if it were determined that the overlapping area did not comprise part of its licence. Manas has informed the Company that it has made a court application to resolve this issue.

Manas has therefore delayed the continuation of the work programme planned for the Kok Kiya Licence area, which is now unlikely to occur until 2013. It is possible that in the meantime Manas may carry out some exploration activities in the area of the licence which is not within the overlapping area but no definitive decision has been made on this at the present time.

The exploration licence was originally issued to Kurmanbek LLC and dated 30 November 2010. In August 2011 the licence was transferred to Manas and was due for renewal on 30 November 2012. In accordance with the provisions of the licence, in December 2012 Manas submitted the necessary documentation to the State Agency for Natural Resources to have the licence renewed. As at the date of signing these financial statements the renewal of the licence has not been completed. However, the Directors have been informed that the State Agency has confirmed that renewal of the undisputed part of the licence area should be completed in the next few weeks.

On 18 October 2012 the Company completed a placing of 227,272,727 new ordinary shares of 0.1 pence each at a price of 0.22 pence per share, raising gross proceeds of £500,000.

On 24 October 2012 the Company completed a placing of 208,636,363 new ordinary shares of 0.1 pence each at a price of 0.22 pence per share raising gross proceeds of £459,000.