Interim Results

29 March 2012

LP Hill Plc

 ("LP Hill" or the "Company")

Interim Results for the six months ended 31 December 2011

LP Hill (AIM: LPH), the AIM listed uranium, thorium, base and precious metals and gemstones exploration and development company operating in Madagascar, announces its unaudited interim results for the six months ended 31 December 2011. 

Highlights:

·; Phase 2 of the Company's planned work programme on its Marodambo Project in Madagascar remains on hold, pending full assessment of the results from Phase 1 and receipt of the requisite environmental clearances.

·; Identification and evaluation of further attractive mineral exploration projects ongoing, in order to potentially expand the Company's asset portfolio.

Events subsequent to the period end:

·; On 2 March 2012, in order to provide additional working capital for the group, a new corporate investor agreed to subscribe for £200,000 of unsecured convertible loan notes due 2015.

·; Appointment of Mr. Roy Spencer as Chief Executive Officer to assist in leading the Company's future development focusing on the discovery, analysis and exploitation of, inter alia, base and precious metals and gemstones, the latter being an area in which he has particular expertise.

Commenting on the interim results, Gerry Nealon, Executive Chairman, said:

"Phase 2 of the work programme for our Marodambo Project remains on hold as we still await the appropriate environmental clearances, whilst also seeking to conserve our limited cash resources in the current difficult global economic climate. 

The Board continues to actively seek and evaluate further opportunities to expand the Company's asset portfolio including the potential acquisition of more advanced revenue generating or near revenue generating projects. The Company anticipates raising additional equity and / or debt finance in due course, to ensure that the group maintains an appropriate capital structure and is able to fund its ongoing working capital requirements."

For further information, please contact:

Ocean Equities Limited Tel: +44 (0) 20 7786 4370

Guy Wilkes

Justin Tooth

Chairman's Statement

I have pleasure in presenting the unaudited interim results for LP Hill in relation to the six month period ended 31 December 2011.

As reported previously, further to its reverse acquisition of Tranomaro Mineral Development Corporation Limited ("Tranomaro") in December 2009, the Company undertook and completed Phase 1 of its planned work programme on the Marodambo Project in Madagascar. The Phase 1 activities related mainly to the review of data, a desktop study, geological reconnaissance and mapping, along with soil, stream sediment and rock chip sampling. The Company is still awaiting receipt of the requisite environmental clearances and approvals from the relevant Madagascan government authorities, before potentially embarking on Phase 2. 

The second phase of the exploration programme is likely to involve further petro-mineralogical studies, rotary air blast or diamond drilling and costeaning (trenching) of selected anomalies, analytical chemistry and sample assessment. The initial two phase work programme was designed to be conducted over an approximate eighteen month to two year period at a budgeted cost of US$250,000 (approximately £158,000). A formal decision on whether to proceed with the second phase has still to be taken following the ongoing assessment of the results obtained from Phase 1, whilst also seeking to conserve our limited cash resources in the current difficult global economic climate. Since completing the acquisition of Tranomaro, the Company has to date expended, in aggregate, approximately £212,000 on its exploration activities on the Marodambo Project.

Reflecting exploration expenditure and the ongoing costs associated with conducting the necessary due diligence on potential new attractive project opportunities, the Company incurred a loss after tax for the six month period ended 31 December 2011 of approximately £74,000 (31 December 2010: loss of £158,000).

On 2 March 2012, in order to provide additional working capital for the group, a new corporate investor agreed to subscribe £200,000 for unsecured convertible loan notes 2015 with a conversion price of 6 pence per share which, unless converted, shall fall due for repayment on 27 February 2015.

On the same date, the Company also announced the appointment of Mr. Roy Spencer as Chief Executive Officer to assist in leading the Company's future development as it continues to actively seek and evaluate further attractive and suitably priced mineral exploration projects focusing on the discovery, analysis and exploitation of, inter alia, base and precious metals and gemstones, the latter being an area in which Roy has particular expertise.

The Company anticipates raising additional equity and/or debt finance in due course to ensure that the group maintains an appropriate capital structure and is able to fund its ongoing working capital requirements.

I would once again like to take this opportunity to thank all of our shareholders for their continuing support and patience as we endeavour to identify and secure a suitable opportunity to deliver long term shareholder value.

Gerard A. Nealon

Executive Chairman

28 March 2012

Consolidated Statement of Comprehensive Income

For the six months ended 31 December 2011

Consolidated Statement of Financial Position as at 31 December 2011

Consolidated Statement of Changes in Equity

For the six months ended 31 December 2011

Consolidated Cash Flow Statement

For the six months ended 31 December 2011

Notes to the Interim Financial Information

For the six months ended 31 December 2011

1. General information

LP Hill Plc is a public limited company incorporated in England and Wales with company number 05980987 and quoted on the AIM market of the London Stock Exchange Plc.

2. Basis of preparation

The interim financial information, which incorporates the financial information of the Company and its subsidiary undertakings (the "Group"), has been prepared using the historical cost convention, on a going concern basis and in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union ("EU"). The interim financial information for the six months ended 31 December 2011, complies with IAS 34 'Interim Financial Reporting' and was approved by the Board on 28 March 2012.

3. Significant accounting policies

Except as described below, the accounting policies applied are consistent with those set out in the Company's annual report and financial statements for the year ended 30 June 2011.

Basis of consolidation

The consolidated interim financial information incorporates the financial statements of the Company and entities controlled by the Company (its subsidiaries). Control is achieved where the Company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The results of subsidiaries acquired or disposed of during the period are included in the consolidated income statement from the effective date of acquisition or up to the effective date of disposal, as appropriate.

Where necessary, adjustments are made within the financial statements of subsidiaries to bring the accounting policies used into line with those used by the Group.

All intra-group transactions, balances, income and expenses are eliminated on consolidation.

Business combinations

The acquisition of subsidiaries is accounted for using the purchase method. The cost of the acquisition is measured at the aggregate of the fair values, at the date of exchange, of assets given, liabilities incurred or assumed, and equity instruments issued by the Group in exchange for control of the acquired entity, plus any costs directly attributable to the business combination. The acquiree's identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under IFRS 3 are recognised at their fair values at the acquisition date, except for non - current assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5 Non Current Assets Held for Sale and Discontinued Operations, which are recognised and measured at fair value less costs to sell.

The interest of minority shareholders in the acquiree is initially measured at the minority's proportion of the net fair value of the assets, liabilities and contingent liabilities recognised.

Goodwill

Goodwill arising on the acquisition of a subsidiary or a jointly controlled entity represents the excess of the cost of acquisition over the Group's interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the subsidiary or jointly controlled entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and subsequently measured at cost less any accumulated impairment losses.

Taxes

Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual earnings.

Standards and Interpretations adopted with no material effect on the interim financial statements

The following new and revised Standards and Interpretations have been adopted in these financial statements. Their adoption has not had any significant impact on the amounts reported in these interim financial statements but may effect the accounting for future transactions and arrangements.

Title Issued Effective date

IFRS 1 - IFRS First-time Adoption of International

Financial Reporting Standards (amendment) Dec 10 01/07/2012

Standards and Interpretations issued but not effective for these interim financial statements

The following new and revised Standards and Interpretations have not been adopted in these interim financial statements as they are not yet effective in the period being reported on.

Title Issued Effective date

IAS 1 - Presentation of items of other

Comprehensive income Jun 11 01/07/2012

IAS 19 - Employee Benefits (Revised) Jun 11 01/01/2013

IFRS 7 - Financial instruments: disclosures (amendment) Dec 11 01/01/2013

IFRS 9 - Financial instruments: classification and measurement Aug 11 01/01/2015

4.   Segmental analysis

The Group's primary reporting format is business segments and its secondary format is geographical segments. The Group currently only operates in a single business and geographical segment. Accordingly, no segmental information by business segment or geographical segment is required.

5.   Losses per share

Losses per ordinary share have been calculated using the weighted average number of shares in issue during the relevant financial period. The weighted average number of equity shares in issue was basic and diluted 27,992,780 as at 31 December 2010, 30 June 2011 and 31 December 2011. The loss for the financial period was £74,000 (loss 31 December 2010: £158,000; loss 30 June 2011: £320,000).

6. Reconciliation of operating (loss) to net cash outflow from operating activities

7. Called up share capital

The issued ordinary share capital as at 30 June 2011 and 31 December 2011 was 27,992,780 ordinary shares of £0.001 each.

8. Post balance sheet events

On 2 March 2012, Fisherstreet Management Limited, agreed to subscribe £200,000 for convertible unsecured loan notes (the "Convertible Loan Notes") which bear an interest rate of 2 per cent. per annum above the Royal Bank of Scotland's base rate from time to time. Interest accrues on the Convertible Loan Notes until 27 February 2015 (the "Final Repayment Date") or, if earlier, the date of redemption or conversion.

The Company has the option to redeem the Convertible Loan Notes, in whole or in part, at any time prior to 27 February 2015, subject to the consent of Strand Hanson Limited, the Company's nominated adviser, such consent not to be unreasonably withheld or delayed. Unless converted or redeemed, the Convertible Loan Notes are repayable on the Final Repayment Date. A redemption premium of 20 per cent. of the principal amount is to be paid by the Company in the event of any early repayment by the Company prior to 27 February 2015 or on any balance of the Convertible Loan Notes not ultimately converted into new ordinary shares. The noteholder is entitled to convert all or part of the principal loan amount advanced into new ordinary shares at a conversion price of 6 pence per ordinary share at any time until the Final Repayment Date. The notes are transferable in minimum tranches of £5,000 subject to certain limited restrictions. 

On 2 March 2012, the Company announced the appointment of Mr Roy Spencer as Chief Executive Officer with immediate effect. Roy's appointment as CEO will assist in leading the Company's future development as it continues to actively seek further attractive mineral exploration projects focusing on the discovery, analysis and exploitation of, inter alia, precious and base metals and gemstones, the latter being an area in which he has particular expertise and experience.

9. The unaudited interim financial information for the period ended 31 December 2011 does not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006. The comparative figures for the year ended 30 June 2011 are extracted from the statutory financial statements which have been delivered to the Registrar of Companies and which contained an unqualified audit report and did not contain statements under Sections 498 to 502 of the Companies Act 2006.

10. A copy of these unaudited interim results will be available from the Company's registered office at 30 Portland Place, London W1B 1LZ during normal business hours on any weekday. The interim financial information will also be made available on the Company's website at: www.lphill.com.au.