Interim results for six months ended 31 July 2013

Amedeo Resources Plc

Interim results for the six months ended 31 July 2013

Amedeo Resources Plc (AIM: AMED) ("Amedeo", the "Group", or the "Company"), the resource and resource-infrastructure and asset investment company (previously known as Creon Resources Plc), today announces its interim results for the six months ended 31 July 2013.

Period highlights:

· Net profit of £245,000, (net loss of £317,000 for the six months ended 31 July 2012).

· First rig order, Le Tourneau Super 116E Class rig, specification and price increased.

· Acquired 49% of MGR for US$49,900, and received first dividend of US$210,000 (£138,000).

Post - period highlights:

· Jiangsu Yangzijiang Offshore Engineering Co Ltd ("YZJOE") "strikes steel" on Le Tourneau Super 116E Class rig.

· Board strengthened.

Glen Lau, CEO of Amedeo, commented:

"We are pleased with the progress we have made at Amedeo having achieved a significant turnaround by posting a net profit in the first six months of this year compared to a net loss in first six months of last year. Firm foundations have been laid and our investments are progressing and paying dividends. As we continue to build Amedeo, we are now exploring opportunities in the verticals associated with our investments."

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

For further information please contact:

Amedeo Resources Plc is an investment company whose policy is to invest principally, but not exclusively, in the resource and resource infrastructure and asset sectors. Amedeo has a deep and broad global network and wide contact base in these sectors, including in East Asia, South East Asia and the Middle East which it leverages to source and make investments. These sectors exhibit high growth and are strategically important. Amedeo is a proactive investor which assists its investee companies to grow by providing investment, expertise and contacts.

DIRECTORS' REPORT

Introduction

Amedeo continues to build upon the foundations laid last year. During the period, progress continued apace at YZJOE, the new offshore rig building yard. An investment was made into ferrous metals broker MGR Resources PTE Ltd ("MGR"), which has already paid its first substantial dividend. After the period end, the Company's Board was strengthened and latterly, the Company name was changed to Amedeo Resources Plc. The necessary components to build Amedeo into a significant resource, infrastructure and asset company are in place. The Board looks to the future with confidence.

Operational review

YZJ Offshore

Amedeo's largest investment is its 46.5% stake in YZJ Offshore Engineering PTE Ltd ("YZJ Offshore") which has a 40% stake in YZJOE, the new offshore rig building yard.

In December 2012, we reported that YZJOE had secured its first rig order of US$170m for a Le Tourneau Super 116E Class self-elevating rig scheduled for delivery in mid-2015. Progress on the rig is proceeding to schedule, and the customer is pleased with both the rate and quality of the build. In July, with the customer's confidence in YZJOE's ability growing, it increased the specification of the rig, with a corresponding increase in price to US$175m.

In late August, we reported that YZJOE was ready to "strike steel" on the Le Tourneau Super Enhanced 116e Class self-elevating rig. This followed several months of detailed technical engineering work. The rig is being built to the most modern and stringent international engineering standards.

Rigs of this type, which are able to go deeper and are more efficient, are in short supply and in high demand, particularly with the oil majors. Discussions are already underway with a number of potential new customers for potential new rig orders.

Progress on building the YZJOE yard also continues on schedule, with wharf building expected to commence shortly and the slipway expected to be completed around mid to late next year.

The macro environment for offshore rigs is buoyant. Based on current stock, rig build pipelines and the phasing out of existing rigs over the next few years (it is estimated that over half of the current fleet of offshore jack up rigs is over 30 years old), undersupply could be as much as 200 rigs by 2020. In addition, offshore activity is expected to expand as onshore fields are at, or past, their peak.

MGR

As reported in April 2013, Amedeo invested US$49,900 for 49% equity interest in Singapore based MGR. Amedeo also provided a three year unsecured 15% convertible loan to MGR of US$1.95 million to assist MGR to increase its trading operations. Since the investment, Amedeo has provided various services to MGR including assisting it source and secure contracts.

We are pleased to report that, with Amedeo's help, MGR is performing well and is building a reputation for sourcing and amalgamating ferrous metals from a variety of sources. Indeed, MGR made its first dividend payment to Amedeo of US$210,000 (£138,000) at the end of July, just before the end of the period under review. Further payments are expected from MGR in the second half. Furthermore, Amedeo expects to charge MGR for the services that it has been, and is, providing to MGR.

MGR, again with Amedeo, is in discussions to source long term iron ore supplies with attendant vertical supply chain and economic benefits. MGR is also studying opportunities in the chromium, nickel and copper markets.

Financial review

Amedeo recorded a net profit on ordinary activities of £245,000 for the six month period compared to a loss of £317,000 in the corresponding period last year.

Revenue of £1,000 (2012: £ nil) was recorded as a result of providing various services to YZJOE. Gross costs were also £1,000 (2012: £ nil). Administrative costs were reduced by 21% to £193,000 (2012: £243,000). Non-cash share based payment charges amounted to £12,000 (2012: £nil).

Amedeo's aggregate share of net losses from its associates was £14,000 (2012: nil). YZJ Offshore's loss for the period was £152,000, which is in line with the share of loss of £148,000 recorded in the period from the date of Amedeo's investment in YZJ Offshore in July 2012 to the end of the last financial year in January 2013. Pleasingly, Amedeo's share of MGR's profit for the period was £138,000, all of which was distributed by MGR in the form of dividends shortly before the end of July.

Further payments from MGR are expected to be received in the second half of the year.. Amedeo, has been providing significant input into MGR's operations and business development such that Amedeo anticipates receiving revenues for management services in addition to dividend income from MGR.

With the depreciation of the US$ against the £Sterling during the period, there was a foreign exchange gain of £464,000 (2012: loss of £74,000) primarily due to a gain on the Group's investment in YZJ Offshore. While the gain is welcome, the Board is considering hedging against future currency movements.

Overall, as mentioned above, Amedeo recorded an unaudited profit on ordinary activities of £245,000 for the six month period, a significant turnaround from the loss of £317,000 in the corresponding period last year, resulting in a profit per share of 0.01p (2012: loss per share of 0.03p).

The Group ended the period with net assets of £11.5 million (Jan 13: £11.2 million), principally comprising the investments in YZJ Offshore of £9.8 million (Jan 13: £9.5 million) and MGR of £0.03 million (Jan 13: nil), together with loans made to MGR of £1.3 million (Jan 13: nil) and net cash of £0.5 million (Jan 13: £1.8 million).

Liabilities at the period end were £0.2 million (Jan 13: £0.08 million), all of which have now been paid. Net asset value per share as at 31 July 2013 stood at 0.42p (Jan 13: 0.41p).

Board changes

A number of Board changes were made post the period end. In September, Mr Zafarullah (Zafar) Karim joined the Board as an executive director and Mr Philippe Petitpierre joined as a non-executive director. Mr Guus Berting and Mr Aamir Quraishi stepped down as non-executive directors during September. We would also like to take this opportunity to thank Guus and Aamir for their services to the Company.

Zafar has over two decades of business and financial experience, including investment banking, investment and risk management, financial strategy and growing and restructuring companies. Philippe, a Swiss national, has a wealth of experience and expertise in the energy sector. He represents Switzerland on the Board of IGU (International Gas Union) and is a member of the Board of Directors of EUROGAS in Brussels. Philippe is also vice-chairman of the SWISSGAS Company and of the Swiss Gas Industry Association.

We are delighted that both Zafar and Philippe have decided to join the Board of Amedeo as we continue to grow.

Change of name

Post the period end, on 17 October, as part of relaunching the Company, shareholders approved a change of name from Creon Resources Plc to Amedeo Resources Plc.

Outlook

Amedeo has built upon the foundations laid last year. The current investments are progressing well and, in the case of MGR, already paying dividends which are expected to be recurring. With both YZJOE and MGR performing well, Amedeo is exploring ways to take advantage of vertical opportunities associated with its investments. Additional opportunities in the resource sector, including the renewable sector are also being explored.

Following our relaunch, we expect progress to continue at an increasing rate and look confidently to the future.

AMEDEO RESOURCES PLC

Group statement of comprehensive income

for the six months ended 31 July 2013 (unaudited)

Consolidated unaudited statement of financial position

As at 31 July 2013 (unaudited)

Unaudited consolidated cash flow statement

for the six months ended 31 July 2013 (unaudited)

NOTES TO THE INTERIM ACCOUNTS

1. Share based payments

On 23 June 2013, the Company awarded 109,544,786 warrants over ordinary shares of 0.1 pence each ("Ordinary Shares") to Zafar Karim. All of the Warrants have an exercise price of 0.5 pence each and a 10 year exercise period from 23 June 2013. 16,431,718 of the warrants were vested immediately. The remainder of the warrants have various share price, milestone and time vesting conditions.

2. Share of loss of associates

The Company holds a 46.5% stake in YZJ Offshore and 49% of MGR. YZJ Offshore reported an unaudited loss for the 6 months to 31 July 2013 of £328,000 and £152,000 represents Amedeo's share of YZJ Offshore's loss (7 July 2012 to 31 January 2013: share of loss of £148,000).

MGR reported a profit of £282,000 for the period to 31 July 2013, of which £138,000 represented Amedeo's share of MGR's profit. MGR paid out all of its profits for the period under review to shareholders, such that Amedeo received a dividend of £138,000 from MGR in late July 2013.

3. Profit per share

The basic and diluted profit per share for the period ended 31 July 2013 was 0.01p (2012: 0.06p). The calculation of profit per share is based on the profit of £245,336 for the period ended 31 July 2013 (2012: £317,343 loss) and the weighted average number of shares in issue during the period for calculating the basic profit per share is 2,738,619,633 shares (2012: 575,848,847), and for the diluted profit per share is 2,935,164,422.

4. Preparation of interim report

This report was approved by the Directors on 23 October 2013.