Interim Results

North River Resources plc / Ticker: NRRP / Index: AIM / Sector: Mining

5 September 2011

North River Resources plc ('North River' or 'the Company')

Interim Results

North River Resources plc, the AIM listed resource company, announces its results for the six months to 30 June 2011.

Overview

·; Significant progress made across Namibian portfolio of assets resulting from ongoing comprehensive work programme

·; High grade intercepts indentified following underground drilling at Namib Lead-Zinc Project - prioritised to advance towards recommencement of production

·; Drilling on two copper projects completed - preliminary test results from Koperberg positive, final report expected shortly

·; Updated resource on Dordabis copper target and maiden resource from Malachite Pan copper target expected Q4 2012

·; Total Namibian land position increased to 5,459km2 following grant of four additional exclusive prospecting licences

·; Strong cash position of circa £5 million to be utilised for additional exploration and development campaigns across Namibian portfolio

North River Managing Director, David Steinepreis, said, "The recent drill results from the Namib project returned some higher grades than we were anticipating based on available historic data. Most importantly we have now confirmed that the mineralisation continues immediately below the current base of mining which has added credibility to historic intersections at similar depths in other ore bodies in the mine.

"The results from the Namib project have underpinned the high prospectivity of this previously producing asset and have demonstrated its potential to become a stand-alone project. In line with this, the Company has commenced a conceptual engineering study of the project. This study will form the basis of a pre-feasibility study should exploration work demonstrate sufficient resource/reserve numbers.

"In tandem with our Namib development schedule, work continues on the Koperberg and Malachite Pan surface copper projects. We are looking forward to receiving the results of ongoing metallurgical studies from both projects. Preliminary flotation results from Koperberg are positive with higher than expected oxide recoveries from the upper section of the deposit.

"Our exploration programs are continuing with regional exploration of our Witvlei and Dordabis projects ramping up over the remainder of 2011, as we remain focussed on advancing both the Namib project and our copper assets in order to realise our strategy of building a significant southern African resource company."

Operations Statement

2011 is proving to be a defining year for North River. Positive drill results from the Namib Lead-Zinc Project have reinforced the potential for this asset to return to production. In addition, the drilling campaigns conducted at our Witvlei and Dordabis Copper Projects have intersected mineralisation as anticipated and we await the results of metallurgical testwork being carried out on those samples. Accordingly I believe we are now at a point where we can begin to translate the work we have put into our projects into appreciated shareholder value.

A key development for North River was the successful underground drilling campaign at the Namib Lead-Zinc Project. The identification of high grade intersections, which included 5.00m @ 19.64% zinc ('Zn'), 14.32% lead ('Pb'), 317g/t silver ('Ag'), 144ppm indium ('In') and 8.93m @ 5.77% Zn, 7.83% Pb, 134g/t Ag, 36ppm In, has provided further support for the development of the Namib project, and in line with this, we have commenced a conceptual engineering study on the project. These highly encouraging results, which demonstrated extensions of mineralisation at depth and higher than expected grades in the main junction ore zone, have led to an increased focus on Namib, which we believe has considerable potential value to North River and could progress to be a stand-alone project.

Our 2011 work programme has also focussed on our copper projects, which include the Witvlei and Dordabis Copper Projects in central Namibia. The work programme on our copper assets has included drilling and sampling ahead of metallurgical test work. Encouragingly, initial results on samples from the Koperberg target within the Dordabis Project show that the oxide material in the upper section of the ore body responds more positively than expected to flotation. The Company is waiting to receive the final report on this metallurgical test work, the results of which will be announced in due course. An updated resource estimate on the Koperberg target and a maiden resource estimate on the Malachite Pan target of the Witvlei Project, are underway.

In addition to the work programme carried out on our existing Namibian portfolio, the Company was also granted four additional exclusive prospecting licences ('EPLs'), providing the Company with a total land position in Namibia of 5,459km2. This significant land holding in Namibia, which hosts one of the largest and most unique concentrations of mineralised terrains in Africa, provides North River with a strong position from which to develop the Company's portfolio of highly prospective assets towards production in the mid-term.

Namibia

Namib Lead & Zinc Mine ('Namib')

The Company recently completed an underground drilling campaign at the previously producing Namib project. A total of approximately 1,300m was drilled, with the target being extensions to two ore shoots in the Junction Ore Body area.

Assay results for twelve of the drill-holes have already been received from the Bureau Veritas laboratory in Swakopmund and the results from the remaining four holes are expected shortly.

The current results and historic records tend to support statements made in 1992, at the time of the mine's closure, that there was 1,000,000 tonnes of high grade ore remaining. It is thought that this claim refers to reserves from the base of historic mining at 7 Level (approx 200m below surface) down to the base of historic drill records, at approximately 10 Level (300m below surface).

North River has commenced dewatering operations with the installation of pumps. Pumping will start once a discharge permit is received. Once the lower levels of the mine are accessible they will be made safe, cleared and surveyed to support a conceptual engineering study on the project. Completion of this exercise will enable the Company to establish the level of reserves/resources required to justify re-opening the mine and will form the basis of any decision to commence underground development to facilitate further exploration.

Further underground drilling will be completed if suitable drill platforms can be identified.

Witvlei and Dordabis Copper Projects ('Witvlei and Dordabis')

Dordabis Copper Project

Located 90km south-east of the Namibian capital, Windhoek, the Dordabis Copper Project, covering over 473km², contains four known copper deposits.

A 485m drilling programme at the Koperberg target on the project was completed on 4 June 2011, with all nine holes (KBDD001-9) intersecting moderate to good mineralisation based on visual estimates. Sampling was completed in June 2011 and 278 samples were cut, bagged and dispatched for preliminary metallurgical test-work at Kupfermelt Metal Processing in South Africa in July 2011. Bulk density measurements will now be made on the core at the Company's warehouse in Windhoek.

A preliminary structural map of the outcrop area at Koperberg has been compiled. This mapping will be supplemented by incorporating structural observations from cores and a ground magnetic survey, which is scheduled for completion in September 2011.

It is now anticipated that the Company will obtain an updated resource statement for Koperberg from an external consultant, which is expected to be completed in Q4 2011.

A regional programme to explore the remaining potential on the Dordabis licence area is being planned, including field visits to known mineralisation areas, re-assessment of previous drilling results and identification of additional targets for follow-up if required.

A mining consultancy is to be appointed to conduct a preliminary pit design over the Koperberg, RK and RK West deposits to facilitate economic analysis.

Witvlei Copper Project

The Witvlei Copper Project covers five known copper deposits located over a region of 550km².

A 700m drilling programme commenced at the Malachite Pan target on the project in June 2011, aimed at acquiring samples for metallurgical test-work. The programme has been completed with all holes intersecting mineralisation, as targeted, of dominantly malachite and mixed copper sulphides in the oxidised zone and bornite-chalcopyrite-chalcocite-malachite in the un-oxidised rock. Bulk density measurements will be made on the core once it has been transported to the Company's warehouse in Windhoek and detailed structural measurements will also be recorded to assist with upgrading the geological model for the area, this work will be completed by the Company's geologists. The Company is in the process of obtaining a resource statement for Malachite Pan from an external consultant, which should be completed in Q4 2011.

A regional programme to explore remaining potential on the Witvlei Project is currently being planned. Previous exploration programmes by the Company (and, historically, by third parties) have largely focussed on the known copper occurrences, with little work on regional targets that might not have been detected by conventional surface soil geochemistry. The main focus of the regional targeting is a revised structural interpretation of the area.

Ubib Copper/Gold Project ('Ubib')

The Ubib Copper/Gold Project is located 15km south-west of Namibia's longest producing gold mine, the four million ounce Navachab Gold Mine, owned by AngloGold Ashanti.

The recently completed soil sampling programme at Ubib covered the Tsawichas target, a consistent ground magnetic anomaly over a 2.5km strike length, which correlates well with previous regional gold in soil sampling results, rock chip sampling of outcrop and limited drilling carried out by the Company in 2008. A total of 1,624 samples have been dispatched for analysis by Genalysis Laboratory Services in Perth, Australia.

The soil sampling programme covered the priority part of the ground magnetic survey area at 50m line and 25m sample spacing and is anticipated that the results will indicate whether the gold in soil anomaly is consistent over the entire 2.5km strike length of the magnetic anomaly and whether there are additional drill targets worth testing immediately or after additional ground geophysics (e.g. induced polarisation geophysical imaging to identify subsurface materials).

Reconnaissance soil sampling and mapping at the Bergrus and Tsawisis targets, approximately 25km southwest of the Tsawichas target, is expected to be completed in September 2011.

Brandberg Energy - JV with Extract Resources Limited ('Extract')

Work to date has involved interpretation of regional data acquired by Extract and a reconnaissance field visit to assess the area, by mapping out areas of outcrop and overburden, for future ground geophysical surveys. Access to the licence areas is good.

The main target is for secondary uranium mineralisation hosted within concealed calcretised palaeochannels that drain known primary uranium bearing lithologies in the area.

The reconnaissance visit highlighted a number of historical sampling pits, some of which show evidence of secondary uranium mineralisation in the exposed spoil and percussion drill hole collars. Results for the historical exploration work are not known.

New Licences

Hero

Exploration at the Hero Project, prospective for base and precious metals, is targeting extensions to the extensively mineralised Northern Marginal Zone and Northern Platform areas of the Damaran Belt in northern Namibia. The project lies to the east of known deposits at Tsumeb, Kombat, Berg Aukas and Khusib Springs, amongst others.

Regional 200m line spacing airborne magnetic data, conducted by the Namibian Geological Survey indicates that numerous structures of the Damaran rock units continue under the Kalahari cover sequences and also that the Kalahari sequences are not as thick as previously interpreted.

An airborne electromagnetic survey (VTEM system) was flown by the government of the Republic of Namibia in 2008 and the data is in the process of being acquired by the Company. The VTEM survey covers approximately 40% of the project area and will be used to target areas for future ground geophysical surveys prior to drill testing.

The Company is reprocessing the airborne magnetic data prior to a full data interpretation.

Kamkas

The Kamkas Project is targeting base and precious metals mineralisation in an area underlain by extensive Neoproterozoic Nama Group sediments. The targeting was based on anomalous base and precious metals (Cu, Zn, Pb, Ag) values obtained from the drilling of a water borehole in the area in the last five years, the location of which falls on the boundary of a distinctive deep-seated magnetic feature which occurs at the intersection of numerous regional structural lineaments.

Repeat tests of drill cuttings, (conducted in 2011) from the historic hole did not support the previous analysis and reported no significant results.

The Company is to conduct a relatively low cost reconnaissance exercise, including geophysics down the existing water borehole and water sampling from regional water bores.

Mozambique

The Company recently signed two JVs in regard to its Mozambican assets in order to accelerate development of the licences and deliver value to shareholders.

Monte Muande - JV with Baobab Resources plc ('Baobab')

Baobab is advancing the development of the Monte Muande project in the Tete province of Mozambique, which is prospective for magnetite/phosphorus, base and precious metals.

An iron and phosphate exploration target of 200Mt-250Mt has been published, which demonstrates the potential of the project, and the shallow depth of the current modelling suggests that further mineralisation may be delineated following deeper drilling programmes.

A diamond drilling programme of approximately 2,000 metres is under way with approximately 1,250 metres completed. Results are expected in October.

Further details relating to the agreement between North River and Baobab are set out in the announcement dated 15 November 2010.

Mavuzi - JV with Jacana Resources Limited ('Jacana')

The Mavuzi licence is prospective for uranium and rare earth elements ('REEs') and covers 54,580ha in the Tete province of Mozambique. The licence hosts the Castro and Inhatobui targets as well as the previously producing Mavuzi and Castro uranium mines, where the initial discovery of uranium in 1948 resulted in the reported production of 50 tonnes of uranium between 1948 and 1950, with uranium mining continuing until 1974.

A work programme was initiated in May 2011 by Jacana. This anticipated re-establishing the exploration grid over the undrilled Castro and Inhatobui targets through rock chip sampling of outcropping mineralisation and lithological sampling of all exposed lithologies.

The Mavuzi and Mavuzi East Fault Zones, being the currently known hosts for uranium mineralisation, will initially form the principal target areas. Jacana will conduct systematic sediment sampling initially in the environs of the Mavuzi historic mine but ultimately to cover the entire licence, in order to delineate potentially mineralised targets outside the vicinity of the Mavuzi Fault and the Mavuzi East Zone.

Further details relating to the agreement between North River and Jacana are set out in the announcement dated 2 February 2011.

Outlook

The comprehensive work programme that we initiated at the beginning of 2011 is continuing, and we look forward to the receipt of further results. The progress at Namib is very encouraging as is the preliminary metallurgical work at Dordabis.

The Company anticipates further results from development work at Dordabis, Witvlei and Namib during Q4 2011, as well as results from the numerous exploration programmes currently underway.

David Steinepreis

Managing Director

2 September 2011

For further information please visit www.northriverresources.com or contact:

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD FROM 1 JANUARY 2011 TO 30 JUNE 2011

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2011

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD FROM 1 JANUARY 2011 TO 30 JUNE 2011

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE PERIOD FROM 1 JANUARY 2011 TO 30 JUNE 2011

Cash and cash equivalents comprise cash on hand and bank balances.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD FROM 1 JANUARY 2011 TO 30 JUNE 2011

1. BASIS OF PREPARATION

The condensed consolidated financial statements are prepared in accordance with the International Financial Reporting Standard 34, Interim Financial Reporting.

These interim results for the six months ended 30 June 2011 are unaudited and do not constitute statutory accounts as defined in section 434 of the Companies Act 2006. They have been prepared using accounting bases and policies consistent with those used in the preparation of the financial statements of the Company and the Group for the 18 month period ended 31 December 2010. The financial statements for the 18 months ended 31 December 2010 have been delivered to the Registrar of Companies and the auditors' report on those financial statements was unqualified and did not contain a statement made under Section 498(2) or Section 498(3) of the Companies Act 2006.

2. SEGMENT REPORTING

For the purposes of segmental information, the operations of the Group are focused in the United Kingdom, Namibia and Mozambique and comprise one class of business: the exploration and evaluation of mineral resources.

The Company acts as a holding company.

The Group's operating loss for the period arose from its operations in the United Kingdom, Namibia and Mozambique. In addition, all the Group's assets are based in the United Kingdom, Namibia and Mozambique.

Geographical Segment - Group 30 June 2011 (UNAUDITED)

Geographical Segment - Group 30 June 2010 (UNAUDITED)

Geographical Segment - Group 31 December 2010 (AUDITED)

At 30 June 2011, the Group had not commenced commercial production from its explorations sites and therefore had no turnover for the period. In the period to 31 December 2010 other income relates to the sale of scrap metal arising from the removal of the old mine head at the Namib Lead and Zinc mine in Namibia.

3. LOSS PER SHARE

Options in issue are not considered diluting to the earnings per share as the Group is currently loss making.

4. GOODWILL AND BUSINESS COMBINATIONS

In accordance with the Share Purchase Agreement (dated 5 October 2009) entered into with Kalahari Gold Ltd, Kalahari Diamonds Ltd and Kalahari Minerals plc, the Company acquired, on 20 November 2009, the entire issued share capital in, and the shareholder loans to, West Africa Gold Exploration (Namibia) (Pty) Ltd ('WAGE') and Namib Lead and Zinc Mining (Pty) Ltd ('Namib Lead'), formerly Craton Diamonds (Pty) Ltd. The consideration paid by the Company for these two Namibian entities and the shareholder loans was satisfied by the allotment of 266,666,667 Ordinary shares of £0.002 ('Ordinary shares') each at 3 pence per Ordinary share.

The combined loss for WAGE and Namib Lead since the acquisition date and included in the Consolidated Statement of Comprehensive Income for the reporting period is £1,864,916.

The acquisition of the two Namibian entities has been accounted for using acquisition accounting ("the purchase method"). The aggregate assets and liabilities were as follows:

Note a:

Following the acquisition of WAGE, on 2 March 2010, the Company issued 2,200,000 Ordinary shares at 3 pence per Ordinary share to two individuals in exchange for the royalty contracts of WAGE's future earnings owned by the individuals.

It is the Directors' view that whilst the acquisition of the royalty contracts increases the value of WAGE to the Group no separately identifiable asset has been created, accordingly an increase to goodwill has been recognised.

Goodwill impairment

The Directors are of the opinion that the Goodwill acquired in respect of WAGE and Namib Lead in November 2009 represents the value of the Licence Areas held by WAGE and Namib Lead at 30 June 2011. At the time of the acquisition of WAGE and Namib Lead, the Licence Areas were subject to an external review by MSA Geosciences of South Africa whose employee Mike Venter acted as a Competent Person, as disclosed in the AIM re-admission document.

The continued exploration and development work within the Licence Areas since acquisition has not revealed anything that would suggest that there has been a value change to the Goodwill position set out in the AIM listing document.

In reviewing the Goodwill value, it is noted that the commodity prices for the commodities that WAGE and Namib Lead are exploring for in Namibia have increased since November 2009. Copper prices have moved from approximately US$6,500 per tonne in November 2009 to approximately US$9,500 per tonne in June 2011 as well as the increase in gold, lead and zinc prices over that time.

On the date the Licence Areas were acquired, the Goodwill was allocated to the exploration areas in proportion to the historic exploration costs associated with the areas. See below. Management consider this to be an appropriate basis on which to recognise the goodwill purchased.

5. INTANGIBLE ASSETS

6. PROPERTY, PLANT AND EQUIPMENT