Interim results for six months ended 31 July 2012

For immediate release: 31 October 2012

Creon Resources Plc

Interim results for the six months ended 31 July 2012

Creon Resources Plc (AIM: CRO) ("Creon", the "Group", or the "Company"), the resources and resources-infrastructure investment company, today announces its interim results for the six months ended 31 July 2012.

Period highlights:

·; Raised £12.1 million through an open offer to all shareholders to implement its investment policy (the "Open Offer"); and

·; Completed its first investment in the offshore oil and gas infrastructure sector with US$15.3 million (c£9.8 million) joint venture with multi-billion dollar China based shipbuilding giant, Yangzijiang Shipbuilding (Holdings) Ltd (the "JV Investment").

Post-period highlights:

·; Mr Ghanim Al Saad joins board as non-executive Chairman; and

·; Mr Glen Lau joins board as Chief Executive Officer.

Glen Lau, CEO of Creon, commented:

"Creon has been transformed over the last 6 months and we are pleased to have secured the financial future of the Company through the successful Open Offer. The JV Investment was the culmination of a great deal of hard work and we are delighted to be able to call upon Mr Ghanim Al Saad as our chairman. We remain cautiously optimistic about the Company's future."

Full copies of the unaudited interim results are available to view and download from the Company's website: www.creonresources.com.

For further information please contact:

DIRECTORS' REPORT

Introduction

The first half of the current financial year witnessed significant changes for the Company, culminating in the transformational joint venture agreement ("JV Agreement") announced in July 2012 with Yangzijiang Shipbuilding (Holdings) Ltd ("YZJ Holdings"). During the period under review the Company significantly strengthened its balance sheet through the successful completion of an open offer to all shareholders which raised £12.1 million (the "Open Offer"). 2012 has also seen some changes to the board and we were delighted to welcome Ghanim Al Saad and Glen Lau onto the board over the last few months.

Operational review

At the beginning of the period under review, the directors set out with two key objectives: (i) to strengthen the Company's balance sheet to enable it to execute its investment strategy; and (ii) to identify and execute a suitable investment.

Pleasingly, the Company was able to announce the Open Offer in June and, during July, the Company entered the JV Agreement with multi-billion dollar China based shipbuilding giant, YZY Holdings ("JV Investment").

Open Offer to raise £12.1 million

In June 2012, the Company successfully raised £12.1 million through an open offer to all shareholders issuing 2,416,429,088 new ordinary shares of 0.1p each ("Ordinary Shares") at 0.5p each. Any Ordinary Shares not taken up by the then existing shareholders of the Company were subscribed for by Qatar Investment Corporation ("QIC"), a company ultimately controlled by Mr Ghanim Al Saad. As a result of the Open Offer, QIC now holds approximately 72.8 per cent. of the Company's Ordinary Shares.

JV Agreement

As previously announced, under the terms of the JV Agreement, Creon and YZJ Holdings have invested approximately US$15.3 million and US$16.2 million, respectively, into YZJ Offshore Engineering Pte Ltd ("YZJ Offshore"), to enable YZJ Offshore to be become a leading player in the design and construction of marine offshore oil and gas vessels (jack-up and semi-submersible rigs). Since signing the JV Agreement, YZJ Offshore has been steadily building up its operations in order to provide marketing, procurement, front end engineering and design, and management consultancy services for the construction, fabrication and repair of oil and gas marine vessels and platforms.

During the period under review, the Company set up a wholly owned Singapore incorporated subsidiary, Creon Resources (Asia) PTE Ltd ("Creon Asia"), to become the registered holder of its investment in the YZJ Offshore. The JV Investment was transferred to Creon Asia post period end.

Financial review

No revenue was generated during the period as the directors' efforts were focussed on raising investment funds and executing the JV Agreement. Administrative expenses of £243,000 incurred during the first half (2011: £135,000) included approximately £140,000 of legal and professional fees associated with the Open Offer and the JV Agreement. The Company also incurred a foreign exchange loss of approximately £74,000 during the period on the JV Investment. The net loss for the period was £317,000 (2011: £135,000) and the loss per share was 0.06p (2011: 0.31p).

The Group ended the period with net assets of £11.84 million (31/1/12: £0.07 million), comprised of principally the JV Investment of £9.78 million and net cash of £2.12 million. Net asset value per share as at 31 July 2012 stood at 0.43p (31/1/12: 0.02p).

Board changes

Mr Ghanim Al Saad joined the board as non-executive chairman on 4 October 2012 and Glen Lau joined as chief executive office on 18 September 2012, replacing Jeswant Natarajan who stepped down on the same day.

Current trading and prospects

YZJ Offshore, through its 40% owned associate company, Jiangsu Yangzijiang Offshore Engineering Co. Ltd. ("YZJOE China"), has now secured the land rights to approximately 1.6 million square metres of prime shorefront land in Taicang, Jiangsu Province on China's east coast, some 50 miles north of Shanghai ("Land"). The board of Creon understand that the Land is the ideal location for the construction of YZJ Offshore's new rig yard ("New Yard") due to its deep water and absence of bridges en route to the open sea. In addition to the ownership and construction of the New Yard, YZJOE China will undertake the business of turnkey construction, fabrication and repair of offshore oil and gas marine vessels and platforms.

Creon continues to monitor closely its investment in YZJ Offshore and the board is confident that YZJ Offshore will secure at least one significant order for a new offshore marine vessel before the end of the current financial year. In addition to the JV Agreement Creon is currently in discussions over a number of other investments in the oil and gas sector, including a potential strategic stake in a resource trading business. Further updates will be made in due course.

The Company remains well capitalised with a strong balance sheet. The board would like to thank its shareholders for their continued support and remain cautiously optimistic about the Company's future.

CREON RESOURCES PLC

Group statement of comprehensive income

for the six months ended 31 July 2012

Consolidated unaudited statement of financial position

Unaudited consolidated cash flow statement

NOTES TO THE INTERIM ACCOUNTS

1. Loss per share

The basic and diluted loss per share for the period ended 31 July 2012 was 0.06p (2011: 0.3p). The calculation of loss per share is based on the loss of £317,343 for the period ended 31 July 2012 (2011: £135,186 loss) and the weighted average number of shares in issue during the period of 575,848,847 (2011: 44,016,700).

2. Investment in unquoted equity

This represents a holding of 15,330,000 shares of US$1 each in YZJ Offshore Engineering Pte Ltd (Company Registration No. 201100098M), a company incorporated in the Republic of Singapore, the subject of the JV Agreement.

3. Preparation of interim report

This report was approved by the Directors on 30 October 2012.