Half Yearly Report

FOR IMMEDIATE RELEASE

EAST WEST RESOURCES PLC

Interim Report for the Six months to 30 June 2012

LONDON, 28 September 2012 - East West Resources plc ("EWR" or the "Company") today announces its unaudited consolidated results for the six months ended 30 June 2012.

Financial highlights

·; Against the backdrop of a challenging economic environment, the solid performance of the metal trading division has laid a foundation to expanding the Group's future footprint.

·; Total income for the period was affected predominantly by lower average metals' prices, a significantly eroded EU biodiesel demand and a weakening British pound against the US dollar. As a result total income reported by the Group amounted to £2.33 million for H1 2012 (H1 2011: £6.02 million (restated)).

·; Group loss before tax for the period from continuing operations was £1.26 million (H1 2011: loss of £0.79 million (restated)), primarily reflecting lower premiums and volumes achieved in the biofuel operations, write-downs in the Group's investment portfolio and legacy corporate overheads.

·; Net loss per share for the period from continuing operations was 1.32p (H1 2011: net loss 1.04p (restated)).

·; Net asset value per share was 17.8p as at 30 June 2012 (19.8p as at 31 December 2011).

Commenting on the results, Robert Ashley, chief executive, stated:

"Despite difficult markets our metal trading division continued to perform well with healthy volume growth and a diversification from copper into other base metals. Following the recent change in our shareholder base, we look forward to forging a new and strong relationship with our shareholders in supporting management's efforts in restructuring the Group and focusing future development on its trading franchise."

Enquiries

Notes to Editors

EWR is primarily active in the physical trading of base metals (primarily copper) and biofuel. It sources and supplies a variety of commodities to end users all over the world. Supported by its offices in London, Hamburg and Shanghai and a network of agents in North and South America, Asia and the Middle East, EWR provides producers and consumers with its marketing insight whilst emphasizing the financing and risk management aspect of its trading activities. EWR also holds and manages a number of equity investments. EWR is quoted on the AIM section of the London Stock Exchange under the ticker symbol EWR.

Further information on East West Resources plc is available on the Company's website: www.ewrplc.com

Results

Subdued growth outlook in most developed and emerging markets resulted in the Group's H1 2012 performance contrasting notably with the same period in 2011. Against this backdrop, average period-on-period prices for the metal commodities traded by the Group fell between 15% and 20%. EU biodiesel demand has been eroded by soy based biodiesel imports. Reduced premiums have also contributed to very poor margins in the biofuel operations. As a result of the foregoing, total income from continuing operations was £2.33 million for H1 2012 (H1 2011: £6.02 million (restated)).

The loss attributable to shareholders from continuing operations before tax was £1.26 million, compared with a loss of £0.79 million (restated) for the same period last year. The biofuel division contributed a trading loss due to lower margins and turnover. Period-on-period unallocated costs have been reduced but continue to include certain legacy costs that have yet to be reduced so as to be commensurate with the Group's current operating base. Finally the write-downs which have affected the investment portfolio are a function of poor market conditions for the small cap stocks. As the Group's investment portfolio has been wound down substantially, future impairments, if any, in the value of the portfolio are expected to have only a marginal effect on the Group's results going forward.

In July 2012, the Company agreed to dispose of its asset management subsidiary, Ambrian Asset Management Limited, for net asset value. The disposal is subject to the approval of the Financial Services Authority ("FSA"). Once obtained, the Group will have no FSA regulated business left.

Metal trading

Owing to its efforts in diversifying from copper metal and increasing volumes, the metal trading operations reported for the period under review £1.09 million profit before tax (£1.14 million for H1 2011). For H1 2012, approximately 150,000 tonnes of metal were sold, a 32% increase in tonnage over the same period last year. Despite challenging market conditions, gross margins were improved overall by nearly 9%.

Despite lower revenues reported of £2.67 million for H1 2012 (H1 2011: £3.85 million), profit before tax was £1.09 million for the period under review, compared with £1.14 million for the same period in 2012.

The first half of 2012 saw volatile copper prices per tonne beginning in January at $7,600, reaching a first half high in early February of $8,765 and then retreating to a low in early June of $7,219 before closing the half year at $ 7,685. However, the high premiums achieved for deliveries into the Chinese market during the last quarter of 2011 were carried into the New Year with spot premiums rising from circa $40 a tonne CIF Shanghai in July 2011 to a high of $130 in early January 2012. A further build-up in Shanghai-bonded stocks coupled with the copper price rising by some $1,000 shortly after Chinese New Year in late January substantially curtailed demand in the division's most significant market, resulting in premiums falling back to a $40 to $60 a tonne level by the end of June 2012.

Demand in the Middle East remained consistent with many end users entering into additional long-term frame contracts from March 2012 onwards after liquidating excess inventory at the start of the year that had been built up as a result of economic and political tensions in the region.

Eurozone difficulties contributed to a slowdown with nearly all producers of wire-rod and cable reporting under budget sales, very much a function of reduced manufacturing and building activities throughout the European Community.

Biofuel trading

Total income in our biofuel operations for the period was a loss of £0.05 million (H1 2011: revenues of £2.27 million) and the division reported a loss before tax of £0.94 million for H1 2012 (H1 2011: profit of £1.81 million). This disappointing performance was attributable to extremely poor market conditions. The biodiesel market in Europe had a turbulent first half year being exposed to the downturn in the global economy as well as price volatility caused by political tensions in the Middle East and crop failure in some feedstocks.  Uncertainty in the biofuel sector was compounded by many of the EU member states not yet implementing favourable terms for second generation products as they transition to the use of certified products under the Renewable Energy Directive. These difficult market conditions were further compounded by soy based biodiesel imports from South America.

In this environment, the biofuel operations sought to limit forward purchase orders in order to contain inventory to levels commensurate with conservative projections of future off-takes. Consequently, turnover and the portfolio of stored and blended product were substantially reduced impacting the division's flexibility in distributing a variety of products and trading on arbitrage opportunities. Reduced revenues resulted in the Group being unable to cover the division's overheads and storage commitments. However, the biofuel operations are well positioned to benefit from a market that will soon require mainly certified product with a preference for second generation biofuels that are derived from environmentally sustainable sources and conditions.

Fossil fuels

During the period under review, the Group closed its fossil fuels business. The net loss attributable to this closure was £0.4 million and included £0.8 million for redundancies and contract termination penalties and revenues of £0.4 million on contracts completed.

Investment portfolio

The investment portfolio recorded a loss before tax of £0.47 million (H1 2011: loss of £0.58 million). This reflects a reduction of 19.1% in the value of the investment portfolio since 31 December 2011.

Since the beginning of the year, the portfolio has been returned to cash where possible given the on-going economic climate and the volatility of the stock market. The majority of the loss in the first half of the year was attributed to the share price performance of legacy positions severely affected by the downturn in the small cap sector of the stock market.

The total value of the investment portfolio (excluding cash and the holding in Consolidated General Minerals plc ("CGM")) at 30 June 2012 was £0.88 million of which unlisted investments represent approximately £0.44 million. This compares with a principal investment portfolio valued at £1.73 million (excluding cash and the CGM holding) at 31 December 2011 of which £0.45 million represented unlisted investments. The Company continues to hold a 12.5% interest in CGM valued at £1.56 million at 30 June 2012. CGM continues to focus on developing its clinker grinding mill and cement packing plant in Beira, Mozambique. CGM's last reported cash position was $19.7 million and in July 2012, CGM acquired a 29.9 per cent interest in the issued share capital of the Company.

Expenses

Group administrative expenses were £3.59 million in H1 2012 (H1 2011: £6.81 million (restated)), of which £0.94 million (H1 2011: £3.17 million) were represented by unallocated central costs.

Total headcount at 30 June 2012 was 25, a reduction of 5 since 31 December 2011.

Balance Sheet

Total assets decreased to £233.58 million at 30 June 2012 from £258.91 million at 31 December 2011, principally as a result of lower inventories reflecting primarily lower valuations in the metal trading division and a reduction of biofuel stocks in Belgium.

The Group's cash resources, net of amounts due to clients totalled £6.91 million at 30 June 2012 compared with £15.38 million at 31 December 2011. The principal reason for the reduction was the use of cash within the metals and biofuel divisions for margin and working capital requirements.

Shareholders' equity was £17.94 million at 30 June 2012 compared with £19.89 million at 31 December 2011. Tangible net asset value per share was 17.8p per share, representing a reduction of 10.1% from 31 December 2011. Tangible net asset value per share is based on 100,251,864 ordinary shares outstanding at 30 June 2012 (excluding treasury shares and shares held by the Ambrian Capital Employee Benefit Trust).

Significant shareholder change

Following CGM's acquisition of shares in the Group, Mr Nicolas Rouveyre, who is a significant shareholder in and associated with CGM, has joined the Board of the Company as a non executive director. Nicolas has spent most of his working life in the metals industry. For many years he was a highly successful metals trader and was a founding partner of Glencore International AG. With this background, EWR looks forward to Nicolas providing impetus in developing the strategic direction of the Group.

CGM has expressed its support for the metal trading operations and has offered to provide additional funding to this division if required to assist the development of its activities.

Outlook

Along with a challenging trading environment in commodities, the costs associated with the withdrawal from certain businesses are again a factor in the half year loss. Also, the results for the biofuel trading division have been particularly poor. However, this must be viewed in the context of a reduction in activity in a business that had already contracted as a result of a sharp drop in demand.

Since 30 June 2012, there has been no material change in the general trading environment affecting our markets but we enter the renewal season for our metal contracts looking to expand the business. Work continues on reducing the Group's central cost base. Management is dealing pragmatically with the infrastructure costs inherent to the previously larger organisation and as a matter of urgency, intends to reduce the Group's property costs and outside sourced services that are now clearly surplus to the Group's requirements.

During the period under review, management has continued the rationalisation of the Group's operating entities and disposal of investments. The trading business has continued as the cornerstone revenue producer of the Group. We are committed to consolidating its franchise and revenue potential but will review the Group's commodity mix diversification and the robustness of its marketing business so as to define a clear strategy to increase our trading footprint whilst improving the visibility and quality of our future results.

Robert Ashley

Chief Executive

EAST WEST RESOURCES PLC

INTERIM FINANCIAL STATEMENTS FOR THE PERIOD ENDED

30 JUNE 2012

Condensed consolidated statement of comprehensive income

Condensed consolidated statement of financial position

Condensed consolidated interim statement of changes in equity

Condensed consolidated cash flow statement

Notes to the condensed consolidated interim financial statements

1. Basis of preperation

The condensed consolidated interim financial statements have been prepared in accordance with the accounting policies previously adopted for the year ended 31 December 2011 are based on the recognition and measurement principles of IFRS in issue as adopted by the European Union (EU) and are effective at 31 December 2011.

The interim financial statements are for the six months ended 30 June 2012. They do not include all of the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 December 2011.

The interim financial statements have been prepared under the historical cost convention, except for revaluation of certain financial assets.

The consolidated statement of financial position as at 30 June 2011 has been restated to show the effect the prior year adjustment included in the financial statements for the year ended 31 December 2011, full details of which are set out in note 5 to those financial statements.

The accounting policies have been applied consistently throughout the Group for the purposes of preparation of the interim financial statements.

The financial information set out in these interim financial statements does not constitute statutory accounts as defined in Section 434(3) of the Companies Act 2006 and is unaudited. The Group's statutory financial statements for the year ended 31 December 2011, prepared under IFRS, have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

These interim financial statements have neither been audited nor reviewed by the Group's external auditors.

The interim financial statements were approved by the Directors on 28 September 2012 and copies are available to the public free of charge from the company at Old Change House, 128 Queen Victoria Street, London EC4V 4BJ during normal office hours, Saturdays, Sundays and Bank Holidays excepted, for 14 days from today.

2. Segmental Analysis

The Group has three reportable segments attributable to its continuing operations and unallocated central:

·; Physical metals: comprises Ambrian Metals Limited, a physical metals merchant.

·; Biofuels : comprises Ambrian Energy GmbH, a biofuels trader.

·; Investment portfolio : comprises the Group's principal investment portfolio held in Ambrian Principal Investments Limited and includes the activities of Ambrian Asset Management Limited

·; Unallocated central : principally relates to overheads incurred in operating the public limited company and include the share-based payment charges in relation to the staff share option schemes and the remuneration of the Directors of East West Resources plc. This segment also includes the activities of Ambrian Resources AG.

The Fossil Fuels division, comprising Ambrian Energy Limited and Strategic Energy Bank, was closed down during the period and has therefore been treated as discontinued activity. For comparative periods, discontinued activities comprise, in addition to the Fossil Fuels Division, Corporate Finance and Equities and LME futures broking.

Total income disclosed below includes investment and other income. The investment portfolio includes realised and unrealised gains on financial assets.

3. Administrative expenses

Administrative expenses amounting to £3,591,288 (30 June 2011: £6,811,384 and 31 December 2011: £6,434,422) include an impairment charge of intangible assets of £nil (30 June 2011: £2,150,109 and 31 December 2011: £nil - as the impairment charge of intangible assets was included within Loss on discontinued operations before taxation).

4. Cash at bank and in hand

Own cash resources included in cash at bank and in hand amounted to £6,909,481 as at 30 June 2012 (30 June 2011: £11,094,027 and 31 December 2011: £15,378,657).

5. Earnings per share

The calculation of the basic earnings per share is based on the earnings attributable to ordinary shareholders divided by the weighted average number of shares in issue during the year, excluding shares held in the Employee Benefit Trust on 30 June 2012 of 6,609,286 (2011: 6,851,524) and Treasury shares 30 June 2012 of 4,500,058 (2011: 4,500,058).

Reconciliations of the earnings and weighted average number of shares used in the calculations are set out below.

The loss attributable to the owners of the company for continuing and discontinued operations used in the above calculations is that presented in the condensed consolidated statement of comprehensive income. The loss attributable to the owners of the company for continuing operations is derived from the loss from continuing operations which is adjusted for the loss for the period attributable to the non-controlling interest.

The diluted earnings per share for each reporting period is the same as the basic earnings per share.

6. Post balance sheet event

On 18 July 2012, East West Resources plc entered into a conditional agreement to sell its regulated asset management subsidiary, Ambrian Asset Management Limited.

7. Minority interest

The minority interest disclosed in the interim statement of comprehensive income and interim statement of financial position represents a 20% minority interest in Ambrian Resources AG held by shareholders other than East West Resources plc.

Ambrian Resources AG, a private equity business, was established in February 2010 in partnership with a team of three former executives from Glencore who hold 20% of the share capital of the company.