Half Yearly Report

15 December 2015

KODAL MINERALS PLC

UNAUDITED INTERIM RESULTS

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2015

Kodal Minerals Plc ("Kodal Minerals" or the "Company" and, with its subsidiaries, the "Group") the mineral development and exploration company owning extraction and exploration licences in Norway, announces to shareholders today its unaudited interim results for the six months ended 30 September 2015.

It continues to be a very difficult time for mining and exploration companies. The market prices of most major commodities have continued to fall and appetite for funding exploration and development work is very limited.

During the 6 months to 30 September 2015, the Group completed the drilling programme on the Grimeli Project, a copper zinc deposit in western Norway. The results of this programme were announced in March 2015 and August 2015 with the highest grades reported being 8.39% copper and 6.98% zinc. The Group has continued to analyse the results from the drilling programme as well as the historic data and believes there is a good case for further exploration work in the area. A work programme involving ground based geophysics is being developed which may be implemented once general market conditions improve and further funding is available.

As was reported in September 2015, the Board conducted an impairment review of the carrying value of the Kodal Project and, in the audited results for the year to 31 March 2015, recognised an impairment charge of £3,412,000 relating to exploration and evaluation costs relating to the Kodal Project which had previously been capitalised in accordance with the Group's accounting policy. In the period to 30 September 2015, the Group has recognised a further impairment charge on the Kodal Project of £41,000 representing exploration and evaluation costs capitalised in the period prior to the completion of the impairment review in September 2015 and the write off of property, plant and equipment associated with the Kodal Project for which an alternative use has not been identified.

Since the date of the impairment review, no further expenditure is being incurred on the Kodal Project other than the costs of maintaining the extraction and exploration licences and limited consulting work to advance the Norwegian planning application.

The Group has recorded a loss for the 6 month period to 30 September 2015 of £270,000 compared to £262,000 for the 6 months to 30 September 2014 and £3,956,000 for the year to 31 March 2015.

Cash balances as at 30 September were £283,000 compared to £996,000 at 30 September 2014 and £307,000 at 31 March 2015.

In this environment, the Board has focused on controlling expenditure and making efficient use of the Group's resources. Management continues to seek and evaluate other projects to add to the Group's portfolio.

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CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2015

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2015

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2015

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2015

NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2015

General information

Kodal Minerals plc is a public limited company incorporated and domiciled in England & Wales. The Company's shares are publicly traded on the AIM market of the London stock exchange. Kodal Minerals Plc and its subsidiaries are involved in mineral development and exploration in Norway and own extraction and exploration licences for a phosphate and iron ore project in southern Norway (the "Kodal Project") and exploration licences for a copper project in western Norway (the "Grimeli Project").

Basis of preparation

These unaudited condensed consolidated interim financial statements for the six months ended 30 September 2015 were approved by the board and authorised for issue on 14 December 2015.

The basis of preparation and accounting policies set out in the Annual Report and Accounts for the year ended 31 March 2015 have been applied in the preparation of these condensed consolidated interim financial statements. These interim financial statements have been prepared in accordance with the recognition and measurement principles of the International Financial Reporting Standards ('IFRS') as adopted by the EU that are expected to be applicable to the consolidated financial statements for the year ending 31 March 2015 and on the basis of the accounting policies expected to be used in those financial statements.

The figures for the six months ended 30 September 2015 and 30 September 2014 are unaudited and do not constitute full accounts. The comparative figures for the year ended 31 March 2015 are extracts from the 2015 audited accounts, which are available on the Company's website, and have been delivered to the Registrar of Companies, and do not constitute full accounts. The independent auditor's report on the 2015 accounts was unqualified and did not contain statements under sections 498(2) or (3) (accounting records or returns inadequate, accounts not agreeing with records and returns or failure to obtain necessary information and explanations) of the Companies Act 2006.

Going Concern

The Group is not yet revenue generating as it is still in the exploration and development phases of its business. The operations of the Group are currently being financed from funds which the Company has raised from the issue of new shares.

As at 30 September 2015, the Group held cash balances of £282,535.

The Directors have prepared cash flow forecasts for the period ending 31 December 2016. The forecasts identify unavoidable third party running costs of the Group and assume that during the period the Group will be able to raise sufficient cash as required to enable it to continue its operations, and continue to meet, as and when they fall due, its liabilities for at least the next twelve months from the date of approval of these interim financial statements. Accordingly, the accounts have been prepared on a going concern basis.

The Directors plan to secure the necessary financing through the issue of new equity. Nevertheless there can be no assurance that any such initiative will be successful.

1. SEGMENTAL REPORTING

The operations and assets of the Group are focused in the United Kingdom and Norway and comprise one class of business: the exploration and evaluation of mineral resources. The Directors have determined that the Group has two operating segments being the Kodal Project and the Grimeli Project. The parent Company acts as a holding company. At 30 September 2015, the Group had not commenced commercial production from its exploration sites and therefore had no revenue for the period.

As described in note 3 to these interim financial statements, the Board conducted an impairment review of the carrying value of the Kodal Project in September 2015 and, in the audited results for the year to 31 March 2015, recognised an impairment charge of £3,411,664 relating to exploration and evaluation costs relating to the Kodal Project which had previously been capitalised in accordance with the Group's accounting policy. In the period to 30 September 2015, the Group has recognised a further impairment charge on the Kodal Project of £41,338 representing exploration and evaluation costs capitalised in the period prior to the completion of the impairment review in September 2015 and the write off of property, plant and equipment associated with the Kodal Project for which an alternative use has not been identified.

2. OPERATING LOSS

 The operating loss before tax is stated after charging:

3. IMPAIRMENT CHARGE

The Group's accounting policy under IFRS 6 (Exploration for and Evaluation of Mineral Resources) is that, upon obtaining legal rights to explore in a project area, the fair value of the consideration paid for acquiring those rights and subsequent exploration and evaluation costs are capitalised as exploration and evaluation assets. The costs of exploring for and evaluating mineral resources are accumulated with reference to appropriate cost centres being project areas or groups of project areas. The Group has identified two project areas being the Kodal Project and the Grimeli Project.

As set out more fully in the Group's audited financial statements for the year ended 31 March 2015 which were issued in September 2015, the Board conducted an impairment review in September 2015 of the carrying cost of the Kodal Project by performing a value in use calculation.

The review identified that using iron ore and phosphate prices based on the then prevailing prices, the economic model for the mine indicated that the project was no longer economic under prevailing market conditions and accordingly the Board determined to impair in full the carrying value of the exploration and evaluation assets relating to the Kodal Project. This resulted in an impairment charge in the year to 31 March 2015 of £3,411,664.

In the 6 months ended 30 September 2015, the Group has recognised a further impairment charge in relation to the Kodal Project of £41,338 (30 September 2014: £nil) representing exploration and evaluation expenditure incurred in the period prior to the completion of the impairment review in September 2015 and the write off of property, plant and equipment assets associated with the Kodal Project for which an alternative use has not been identified.

At 30 September 2015, the carrying value of the Kodal Project was £nil (30 September 2014: £2,921,137 and 31 March 2015: £74,827) - see note 1 to these interim financial statements.

Since the date of the impairment review, no further expenditure is being incurred on the Kodal Project other than the costs of maintaining the extraction and exploration licences and limited costs relating to the ongoing planning process in Norway.

The impairment charge comprises

4. LOSS PER SHARE

Basic loss per Share is calculated by dividing the loss for the period attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the period.

The following reflects the income and share data used in the basic EPS computations:

Diluted loss per Share is calculated by dividing the loss attributable to ordinary equity holders of the parent by the weighted average number of ordinary Shares outstanding during the period plus the weighted average number of ordinary Shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary Shares. Options in issue are not considered diluting to the earnings per Share as the Group is currently loss making. Diluted loss per Share is therefore the same as the basic loss per Share.

5. SHARE BASED PAYMENTS

The share-based payment reserve is used to recognise the value of equity-settled share-based payments provided to employees, including key management personnel, as part of their remuneration.

A share based payment charge of £23,778 for the period to 30 September 2015 (6 months to 30 September 2014: £56,111, year to 31 March 2014: £88,555) has been recognised in the profit and loss in relation to these options.

6. TAXATION

There is no taxation charge for the period to 30 September 2015 (6 months to 30 September 2014: £nil, year to 31 March 2015: £nil) as the group continues to incur losses.

No deferred tax asset has been recognised in respect of losses as the timing of their utilisation is uncertain at this stage.

7. INTANGIBLE ASSETS

Segment analysis of exploration and evaluation assets:

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8. PROPERTY, PLANT AND EQUIPMENT

9. SUBSIDIARY ENTITIES

The consolidated financial statements include the following subsidiary companies: