Interim Results

Minco Reports Interim Results for the Six Months Ended June 30, 2010

Dublin, 30 September, 2010 - Minco Plc (AIM | MIO), the AIM quoted exploration and development company is pleased to report its interim results for the six months ended June 30, 2010.

REPORT ON OPERATIONS

Minco is directly involved in exploration and development activities in Ireland at its Pallas Green zinc-lead project, a Joint Venture with Xstrata Zinc, and in exploring and developing silver and zinc projects in Central Mexico through its 40% shareholding in Xtierra Inc. (Toronto Stock Exchange TSXV | XAG).

The Pallas Green Project

The first six months of 2010 have been extremely busy and successful for Minco, and its joint venture partner Xstrata Zinc, as work on the Pallas Green zinc lead exploration project in Ireland continues to yield positive results, including the discovery of several new lenses of mineralisation at Knockroe, the West-northwest Extension and the Northwest Extension areas of the previously defined Tobermalug deposit.

Potential World-Class Resource

Xstrata, in its 2010 Half Yearly Results announced on August 4, 2010, referring to the Pallas Green deposit commented that "recent discoveries continue to show encouraging signs of a potential world-class resource."

In August 2010, Xstrata publically reported an updated resource estimate for the various deposits in the Caherconlish area of 24,100,000 tonnes grading 7.85% zinc and 1.35% lead in the inferred resource category. A year previously, Xstrata had reported an inferred resource of 11,300,000 tonnes grading 10.2% zinc and 1.9% lead (Tobermalug zone only) . 

In a presentation on Project details, released with its 2010 Half Yearly Results, Xstrata has indicated a potential start‐up date of 2017 for the Pallas Green project ,with an indicated annual production of 160,000 tonnes of zinc, (equivalent to about 6,000 tonnes of daily mine production) and with an indicative capital cost of US$300 million. 

Exploration Drilling continued aggressively in 2010. To the end of August, 41,000 metres had been drilled with 118 holes completed or in progress.

Several distinct lenses of massive zinc‐lead sulphide mineralisation have now been discovered in the Caherconlish area, including a major zone of mineralisation at Tobermalug. A new zone of sulphide mineralisation was discovered in 2010 at Knockroe, approximately 1.5 to 2 kilometres west of Tobermalug, where five recent drill holes intersected high grade zinc mineralisation.

Sixteen drill rigs have been operating throughout 2010 to delineate the full extent of the Caherconlish area deposits as part of the 2010 exploration programme . Most of the drilling is being concentrated to the northwest of the Tobermalug deposit and to the west, at Knockroe. Some infill drilling has also been carried out within the Tobermalug deposit. Three more rigs have recently been added, bringing the total number of drilling rigs to nineteen to complete 70,000 metres by the end of the year.

The exploration potential remains open in almost all directions. The joint venture partners have not yet determined the level of continuing exploration planed for 2011 which will be decided during Q4 2010.

The Pallas Green project is a 23.6% / 76.4% joint venture between Minco and Xstrata Zinc.

Xtierra Inc.

Minco holds 30 million shares, or approximately 40%, of Xtierra Inc, listed on the Toronto Stock Exchange (TSXV | "XAG").

Xtierra has interests in base and precious metal mineral deposits on properties located in the Central Mexican Silver Belt, in and around the States of Zacatecas and San Luis Potosi, Mexico. This area represents the bulk of Mexico's historic silver production from the early colonial period to the present day and hosts many world-class silver and base metal deposits.

Bilbao Feasibility Study

Xtierra's principal focus is the Bilbao project, a polymetallic sulphide and oxide prospect upon which the Company is currently conducting a full feasibility study for an open pit zinc, silver, lead, copper mine.

The feasibility study on Bilbao includes metallurgical testwork and process optimization of the oxide, mixed oxide/sulphide and sulphide ores, environmental baseline studies, hydrological studies, geotechnical studies (rock mechanics) and mine design for both open pit and underground extraction methods, together with other engineering and financial studies.

In July 2010, Xtierra retained Dowding, Reynard and Associates (DRA), a recognized leader in the field of mine design, mine engineering, mineral process design, project management and mine construction to lead the feasibility study. DRA has particular expertise in Process Plant Design, Metallurgical Process Engineering, and Metallurgical Consulting and will be intimately involved in the preparation for and commissioning and operation of the pilot plant designed to test the recovery process for the near surface oxide ores at Bilbao. DRA will now be involved in oversight of all of the component parts of the feasibility study which was originally initiated by Xtierra last year as a two-phase, in-house managed study. Xtierra has also retained Golder Associates for tailings disposal design work related to the Bilbao development.

Resource Estimate Increase

In February 2010, an independent resource estimate, compliant with Canadian National Instrument 43-101, was completed at Bilbao which shows a 169% increase from the November 2008 estimate in the Indicated resource category to 9.68 million tonnes and an increase of 68% in the Inferred resource category to 4.04 million tonnes.

The following table summarises the overall results of the resource estimation completed for the Bilbao Deposit, using a 3% ZnEq cut off (includes sulphide, oxide and mixed ore categories):

As part of the final phase of the Feasibility Study additional drilling for resource categorization and engineering, and additional step-out drilling, has recently been completed with excellent results.

In September 2010, Xtierra reported twenty-nine holes were completed at Bilbao for a total of 6,077 metres in four distinct parts: (1) step-out drilling to the south and southwest of the existing silver-zinc-lead-copper deposit to define additional sulfide resources and to follow up previously intersected high grade silver vein mineralization; (2) in-fill drilling within the current oxide resource to upgrade resource categorization and for geotechnical data; (3) condemnation drilling in the area of the proposed mine installations; and (4) initial exploration drilling at other identified prospects within the vicinity of Bilbao.

Results of drilling completed in the first three parts of the program indicate that the Bilbao resource extends further to the south, west and northwest of the existing resource and, importantly, remains open to the southwest. The additional mineralization discovered will add to the existing resource base. Of particular note are the higher grades of zinc and lead encountered in the southwest area and the discovery of high grade silver and gold mineralization along the western flank of the deposit. Drilling also confirmed the presence of thick zones of oxide mineralization near to surface and amenable to open-pit extraction in the northern part of the deposit.

Laguna Project

The Laguna Project comprises a silver rich tailings deposit located near the city of Zacatecas, Mexico, derived from historical mine processing waste and tailings located some distance away. In January 2006 Micon International completed a bankable Feasibility Study and in February 2008 prepared a revised reserve estimate of 6,799,000 tonnes contained an average of 57.92 g/t silver, 0.31 g/t gold and 328.92 g/t mercury.

In November 2009, Xtierra entered into an Option and Sale Agreement with Indo Gold Limited of Queensland, Australia with regard to the Laguna project. Under the terms of the Agreement, IGL paid $150,000 on signing and had the option to conduct due diligence. Subsequent to December 31, 2009, IGL requested and was granted extensions to August 30, 2010 when IGL informed Xtierra that it is ceasing its interest in developing the Laguna Project.Xtierra will now seek to advance the Laguna Project through additional metallurgical testing or permitting, either directly or through other farm-out or joint venture arrangements.

Qualified Person

The above information has been reviewed and verified by Mr. Terence N McKillen, B.A. (MOD), M.A., M.Sc., P.Geo, Chief Executive Officer. Mr. McKillen is the Qualified Person for the purposes of the AIM Guidance Note on Mining, Oil and Gas Companies dated March 2006. Mr. McKillen is a graduate in Natural Sciences (Geology) from Trinity College Dublin and holds a Master of Science degree in Mineral Exploration and Mining Geology from the University of Leicester. He has 40 years of exploration experience in Ireland and internationally.

FINANCIAL RESULTS

Minco Plc reported a consolidated loss for the six months ended 30 June, 2010 of US$869,000, up from US$542,000 in the same period in 2009. The main components of the loss are general and administrative expenses in the amount US$1,075,000, which included stock-based compensation in the amount US$430,000, partially offset by a gain on derivative financial instruments of US$201,000.

Total group assets increased by US$5.5 million from US$27.8 million at 31 December, 2009 to US$33.3 million at 30 June, 2010, largely as a result of the increase in cash and cash equivalents following two financings by Minco plc and financings by Xtierra Inc. Group cash and cash equivalents increased from US$1.7 million at December 31, 2009 to US$5.7 million at 30 June, 2010. Intangible assets increased from US$24.3 million to US$25.8 million.

At 30 June, 2010, the Group had working capital of US$3.1 million, compared to a deficit of US$1.3 million at 31 December, 2009. 

Approval by Directors

The Interim Report for the six months to 30 June 2010 was approved by the Directors on 28 September 2010.

Copies of this announcement will be posted on the Company's website at www.minco.ie and will be available for inspection at the Company's registered office at Connaught House, Burlington Road, Ballsbridge, Dublin 4, Ireland.

About Minco

Minco Plc is an AIM quoted precious and base metals exploration and development company engaged in zinc exploration on the Pallas Green property in Ireland in a 23.6%/76.4% joint venture with Xstrata Zinc and investments in zinc-silver projects in Mexico through its shareholding in Xtierra Inc. listed on the TSX Venture Exchange (Toronto) under the symbol "XAG".

Click on, or paste the following link into your web browser, to view the financial statements for the six months ended 30 June 2010:

http://www.rns-pdf.londonstockexchange.com/rns/5425T_-2010-9-29.pdf