Interim Results

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

28 September 2012

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

Interim Results

North River Resources plc, the AIM listed resource company focussed on Southern Africa, is pleased to announce its interim results for the six months ended 30 June 2012.

Overview

·; Key objectives achieved across Namibian multi-commodity portfolio, yielding encouraging operational results

·; Excellent progress made at Namib Lead-Zinc Mine:

o Dewatering of historic mine completed

o 600 metres of channel sampling of key exposures completed

o 12.6% zinc stope discovered still in situ - reinforces the Board's confidence that the previous mining operation did not cease due to the exhaustion of mineable resources

o Grade and density of the sulphide veins/shoots increases with depth

o Initial metallurgical work highlights high recoveries, fast float times and achieve a 56% zinc concentrate

o Results from an Engineering Study and a helicopter borne electromagnetic survey expected in the coming weeks

·; Positive progress at Malachite Pan Copper Project demonstrates the potential to develop a profitable mining operation:

o Maiden JORC inferred and indicated resources of 2.6Mt @ 1.36% copper for 35,699t contained copper and 2.4Mt @ 1.11% copper for 26,402t contained copper respectively

o Excellent copper and silver recoveries achievable using froth flotation testing - demonstrates encouraging economic potential

o 1,770m drill programme completed - plans to advance technical studies on the basis of the new resource estimate when available

·; Awarded two contiguous Exclusive EPL's covering 859.7 sq km of tectono-stratigraphic terrain, considered prospective for gold mineralisation and rare earth elements

·; Defined active development plan being carried out - regular news flow anticipated

North River Managing Director David Steinepreis said, "We have made excellent progress on all fronts in developing our portfolio towards production and building our asset base. With our two advanced projects yielding results which indicate their production potential, and the issuance of more ground, we are confident that our value proposition is increasing. We have supportive partners and an excellent in-country team which we believe is crucial as we advance our development plans towards production."

Managing Director's Statement

The Company has continued to advance its key assets up the development curve, predominately focusing on the previously producing Namib Lead-Zinc Project ('Namib Mine') and the Malachite Pan copper deposit ('Malachite Pan'). Work programmes across both projects have yielded encouraging results and the Company is now in a strong position to progress these assets towards production.

The Company delivered on key operational objectives during the period, including the publication of a maiden inferred and indicated JORC compliant resource for Malachite Pan of 2.6Mt @ 1.36% copper ('Cu') for 35,699t contained Cu and 2.4Mt @ 1.11% Cu for 26,402t contained Cu respectively. Metallurgical testwork demonstrated that recoveries of up to 92.8% Cu and 83.5% silver ('Ag') were achievable. These encouraging results suggest that the Malachite Pan project may be developed into a profitable mining operation. With this objective in mind, the Company initiated further drilling at the project and may advance technical studies on the basis of the new resource estimate when it is available.

Progress continued at the Company's previously producing Namib Lead-Zinc Project. The mine has been dewatered and 600m of channel sampling completed. Results from the channel sampling demonstrated that both grade and widths increased at depth and the discovery of a fully developed 12.6 % zinc stope still in situ reinforced the Board's confidence that the previous mining operation did not cease due to the exhaustion of mineable resources.

The Company's primary focus remains on the development of these two key assets through the remainder of the year.

During the period, the Company was pleased to appoint Mr. Zuyuan He and Mr. Zhiping Yu to the Board of North River as Non-Executive Chairman and Non-Executive Director respectively. Mr. He and Mr. Yu are representatives of Taurus Mineral Limited ('Taurus'), a company formed at the direction of CGNPC Uranium Resources Co., Ltd ('CGNPC-URC') and the China-Africa Development Fund for the purpose of acquiring the entire issued and to be issued share capital of Kalahari Minerals Plc ('Kalahari'), which holds an approximate 38% interest in North River. Accordingly, Mr. Mark Hohnen and Professor Glyn Tonge, who previously represented the interest of Kalahari, stepped down from the Board in June 2012.

I would like to take this opportunity to thank Mr. Hohnen and Professor Tonge for their long standing support for the development of North River, and look to Mr. He and Mr. Yu's extensive experience as we take the Company into its next phase of growth.

Namibia

Namib Lead-Zinc Project

Considerable progress has been made at the Namib Lead-Zinc Project ('NLZM'). The mine is now free of water and a total of 600 metres of channel sampling of key exposures has been completed. This is predominantly in the lowest parts of the mine in the Junction and South sections and on strike extensions to the mineralisation at higher levels of the mine.

A structural geology survey covering the surface of EPL2902 and the dewatered underground areas of the mine has been completed. This has resulted in the development of an updated model for the controls on the mineralisation, which is supported by underground and surface observations and investigations.

The underground mapping in the lowest portions of the South and Central parts of the mine also indicates that the intensity or density of the sulphide veins/shoots increases with depth.

The revised structural model for the mineralisation setting and genesis, coupled with underground mapping and sampling has given added confidence that mineralisation continues down-plunge in the South section of the mine. Previous underground drilling by the Company into two of the Junction lodes also indicated that significant semi-massive to massive zinc-lead mineralisation continues below the previously mined areas.

Preliminary metallurgical testwork was completed on grab samples retrieved from newly exposed mining areas. These samples were selected at random and were submitted for analysis and flotation testing. The total sample was small and may not be representative of the eventual run of mine ore however the results have been outstanding with high recoveries, fast float times and achieving a 56% zinc concentrate. Only two tests were run due to the small sample size and so there is considerable scope to improve both recoveries and concentrate grades.

Engineering study work is continuing. At this stage the Company is contemplating starting underground exploration development in order to develop drill positions to allow the bringing of known ore into resource and reserve categories and to explore extensions to the ore shoots at depth. This work is subject to the conclusions of the engineering study which will seek to estimate capital and operating costs for the mine and thus define the resources needed to re-open the mine.

The Company completed a 1,572km helicopter borne electromagnetic survey over the NLZM licence area in July 2012 and interpreted results are expected in the coming weeks. It is hoped that the survey will delineate a number of surface exploration targets as well as provide indications of the depth potential under the existing mine.

Witvlei and Dordabis Copper Projects ('Witvlei and Dordabis') - 100% owned

On 2 February 2012, North River announced a maiden JORC Compliant Resource for the Malachite Pan deposit on its Witvlei Copper Project, and an upgrade of the Koperberg deposit JORC compliant resource on its Dordabis Copper Project subsequent to the end of the period. The JORC resources were calculated by The MSA Group in South Africa.

Using a 0.5% Cu cut-off grade the current JORC compliant resources are detailed in the table below:

Since this resource was announced the Company has appointed CSA Global to take over all resource calculation work.

In order to increase confidence in the model the surface outcrop at Malachite Pan has been re-mapped and the previous drill results re-interpreted. This work was completed by Baltica Consulting. A number of areas were identified for further testing and a diamond drilling programme commenced in late April 2012. A total of approximately 1,770 metres were drilled. The drilling is now complete and the site has been rehabilitated. The Company is awaiting final laboratory assays before completing final resource calculations. The Company will make a decision on next steps for development at Malachite Pan once the new resource statement is completed and a preliminary pit shell has been designed.

The Company received encouraging results from metallurgical test work completed on samples from Malachite Pan. Flotation tests yielded recoveries of 82.4% copper and 77.7% silver from the oxide sample and recoveries of 92.8% copper and 83.5% silver were achieved from the sulphide sample.

A 2,952 km airborne magnetic survey was completed over parts of the Witvlei licence area. The Company is waiting for interpreted results, which are expected shortly.

Brandberg Energy

Brandberg Energy has completed a 1,500 metre drill programme to test two uranium targets identified by horizontal loop electromagnetic ('HLEM') surveys completed in 2011.

Results from the drill programme demonstrated the presence of minor secondary mineralisation in the area. The mineralisation is restricted to the top few metres (

These results have shown that the identified mineralisation does not constitute an economically exploitable secondary uranium deposit and therefore no further work is planned. The Joint Venture remains in place and should the application to add nuclear fuels to EPL 3139 ('Ubib') be granted, Brandberg Energy will commence exploration for uranium on that EPL.

Outjo Project

Post period end North River was awarded two contiguous Exclusive EPL's covering 859.7 sq km of tectono-stratigraphic terrain, considered prospective for gold mineralisation and rare earth elements.

The two EPLs, 4560 and 4561, which together form the Outjo Project, are located approximately 15km east of the regional town of Outjo, 280km north of the capital of Windhoek. The area is largely underlain by rocks of the Damara Supergroup and straddles the boundary between the Northern/Outjo Zone and the Northern Margin of the Damara Orogen. This setting is considered prospective for gold mineralisation in the Karibib Formation, similar to other known gold deposits in Namibia. This includes AuryxGold Namibia's Otjikoto gold project, which has a current indicated resource of approximately 1.2 million ounces and is, reportedly, being brought into production during 2014.

The Outjo Project also contains a number of discrete magnetic anomalies which are interpreted to be possible alkaline-carbonatite intrusive complexes prospective for rare earth elements.

Exploration will commence with the compilation and review of available data and initial reconnaissance visits to the field area. Initial field programmes will commence with field mapping, soil sampling and ground geophysical surveys aimed at identifying targets for testing in 2013.

Hero Project

The Hero Project comprises three contiguous licences, EPL4487, EPL4488 and EPL4489, located to the east of Grootfontein and the established mining town of Tsumeb in the Grootfontein and Rundu Regions of Northern Namibia.

The geology of the area is underlain by the Cenozoic Kalahari Group and unconsolidated sands of the Kalahari Desert. The area is considered prospective for extensions of the Neoproterozoic Damara Supergroup, which host significant deposits such as the Tsumeb polymetallic deposit, the Kombat Copper Mine, the Berg Aukas Lead-Zinc Mine. These extensions continue under the Kalahari sand cover sequences and are believed to be between 50m and 200m thick.

Existing regional airborne geophysical data was acquired and reinterpreted. This work resulted in two target areas being identified.

Mozambique

Whilst North River and its Mozambique joint venture partners, Baobab Resources Plc and Jacana Resources Ltd, continue to progress their respective work programmes at the Monte Muande and Mavuzi licences, the Company is progressing the regulatory approval process in respect of the transfer of these licences to North River, and partial transfer of such interest to Baobab Resources and Jacana Resources, in accordance with the terms of the Heads of Agreement announced on the 15 November 2010 and 2 February 2011. Whilst this formal approval process has taken longer than anticipated, North River is confident of obtaining the necessary approvals. A further update will be provided in due course.

Kalahari Minerals Plc

Kalahari Minerals Plc ('Kalahari') is North River's largest shareholder, holding approximately 38 per cent of the Company's issued share capital.

On 8 December 2011, a recommended cash offer ('the Offer') for Kalahari by Taurus Mineral Limited ('Taurus'), a Company formed at the direction of CGNPC Uranium Resources Co Ltd and the China-Africa Development Fund, was announced, and the Offer completed on 28 February 2012.

The Board welcomes Taurus, which we believe will be a long term strategic shareholder of North River and welcomes Mr. He and Mr. Yu, representatives of Taurus, to the Board.

Outlook

The Company continues to focus on the development of its key assets, the Namib Lead-Zinc Project and Malachite Pan Copper Project, which the Board believes to have the potential to deliver substantial value to shareholders. This will take the form of drilling and scoping studies during 2012, and we look forward to providing further details in this regard in the coming months.

We have done extensive and diligent work on our projects during the year which has taken some time to deliver results to shareholders. We believe this approach has provided the desired results for all our projects. We are continuing this professional approach to the studies on Namib Lead-Zinc in particular and believe we will be providing exciting results in the next few months leading to a production decision.

In addition, the Company awaits results from the joint venture with Baobab Resources in Mozambique as well as commencement of drilling on the Jacana joint venture.

I would like to take this opportunity to thank our shareholders for their continued support and my fellow board members for their tireless efforts in growing North River and building the value of its it portfolio of assets.

David Steinepreis

Managing Director

27 September 2012

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

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD FROM 1 JANUARY 2012 TO 30 JUNE 2012

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2012

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD FROM 1 JANUARY 2012 TO 30 JUNE 2012

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE PERIOD FROM 1 JANUARY 2012 TO 30 JUNE 2012

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

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 2012 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 year ended 31 December 2011. The financial statements for the year ended 31 December 2011 have been delivered to the Registrar of Companies and the auditor's 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 2012 (UNAUDITED)

Geographical Segment - Group 30 June 2011 (UNAUDITED)

Geographical Segment - Group 31 December 2011 (AUDITED)

At the end of 31 December 2011, the Group had not commenced commercial production from its exploration sites and therefore had no turnover for the period.

3. LOSS PER SHARE

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

4. GOODWILL AND BUSINESS COMBINATIONS

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"). 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.

Goodwill impairment review

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 2012.

5. INTANGIBLE ASSETS

6. PROPERTY, PLANT AND EQUIPMENT

7. INVESTMENT IN JOINT VENTURE

The following entity meets the definition of a joint venture and has been equity accounted in the consolidated financial statements:

Brandberg Energy (Proprietary) Limited ('Brandberg') is a 50:50 JV with Extract Resources Ltd ('Extract') and NRR Energy Minerals Limited. NRR Energy Minerals Limited transferred US$800,000 to Brandberg to acquire its share. The principal assets of Brandberg are EPL 3327 and EPL 3328, pursuant to which Brandberg has the rights to explore for nuclear fuel minerals. Located west and north respectively of the historic tin mining centre of Uis in western Namibia, previous exploration activity, undertaken by Brandberg, has shown that these licences have the potential to host secondary uranium deposits associated with palaeodrainages of the Orawab and Ugab ephemeral river systems. The Subscription Funds are being used by Brandberg to expedite further uranium exploration on these licences.

Summarised financial statement information (50% share) of the equity accounted jointly controlled entity is disclosed below:

Note: no comparative information has been presented as the investment in Brandberg took place in January 2012.

Carrying value of investment in joint venture

8. INVESTMENT IN ASSOCIATED COMPANY

The following entity meets the definition of an associate and has been equity accounted in the consolidated financial statements: