Interim Results

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

13 September 2013

North River Resources plc

('North River' or 'the Company')

Interim Results for the six months ended 30 June 2013

North River Resources plc, the AIM listed resource company focussed on Namibia, is pleased to announce its unaudited interim results for the six months ended 30 June 2013.

Overview:

· Strategy to transform North River from a loss-making explorer into profitable revenue-generator from lead, zinc and silver production at Namib

· Significant progress on the development of North River's flagship asset, the brownfield Namib Lead Zinc Project ('Namib')

· New EPL granted to significantly expand near mine exploration area by 12,395ha

· Strengthened Board and management team with industry and corporate specialists

· Exploration campaign supported by £1 million placing with new and existing investors

· Concluded "proof-of-concept" work to assess the potential for deep ore at Namib which returned encouraging results

· Initiated second phase of development at Namib which focusses on the completion of a full feasibility study

· Snowden Mining Industry Consultants (UK) ('Snowden') appointed to lead feasibility study work and requisite resource definition, in preparation for a Mining Licence application

Managing Director's Statement

I am pleased to report that North River has made solid progress on its flagship Namib Lead Zinc Project ('Namib') in the short period since my last update on 27 June 2013, and we remain focused on re-opening this previously producing mine. In the first half of 2013, the new management team reviewed the Company's strategy in detail and the Company is now well positioned to develop the full potential of Namib. In addition to our achievements on the ground, we strengthened the board and management team with high calibre individuals, whom I am confident have the requisite skills to successfully implement North River's strategy of transforming from a loss-making explorer into profitable revenue-generator.

Operational Developments

The work conducted at Namib during 2011 and 2012 provided a foundation for a more comprehensive development programme in 2013 and beyond. This development programme was broken in three stages; with the first "proof of concept" work for deep mineralisation under the historic mine structure commencing in June 2013. This initial work programme included deep drilling under the old mine, surface drilling, geophysics and geochemistry of new near-mine targets, appraising the potential to re-process tailings in addition to exploration of a recently awarded Exclusive Prospecting Licence ('EPL') adjacent to the mine.

The new EPL covers an area contiguous to the existing Namib EPL and represents a significant expansion to the Company's exploration area, from 4,523 ha to 16,918 ha. Previous exploration of the area, which includes a significant amount of drilling and surface geochemistry, has highlighted numerous surface gossans that are similar in size to the one that led to the discovery of the Namib Mine. Additionally, historic exploration has provided positive indications that lead and zinc ore are present within the EPL and this is underpinned by the presence of the Karib Formation host marble, containing lead, zinc, silver ore, which folds and widens within the licence area. The historic data indicates that previous explorers only drilled shallow exploration holes, and thus significant ore may have been missed at depth.

The first phase of work, being the "proof of concept" campaign, was completed following drilling and analysis of its down-hole electromagnetic survey ('DHEM') post period end in early September 2013. The work demonstrated encouraging results including a mineralisation intercept at 382m below surface on the Junction ore-body, the deepest intercept yet encountered at the project. Furthermore, there was evidence of multiple DHEM contacts, with interpretation down to approximately 700m below surface, or 500m below previously mined levels highlighting the significant ore present below the historic mine. In addition, the first near-mine target generated by the Versatile Time-Domain Electromagnetic ('VTEM') survey target was drilled, which intercepted mineralisation at 112m below surface demonstrating the potential for resource expansion in the wider mine area.

As a consequence, North River is now moving ahead with its Stage Two programme, which is targeting the completion of a comprehensive Feasibility Study on Namib. To facilitate this, North River has signed a consultancy package with Snowden Mining Industry Consultants (UK) ('Snowden'), which encompasses all aspects of the project through to the application for a Mining Licence. This includes important near-term work to increase the Resource at Namib, which currently stands at 668,000 tonnes grading at 6.6 % zinc, 2.5 % lead and 46 g/t silver using a cut-off grade of 1% combined lead and zinc.

Snowden has already commenced work and a team is expected on site in mid-September. Early work will involve desktop reviews of the tailings dump, ore in-situ within the historic mine structure and of the Northern ore lodes, to ascertain resources on each. The work programme also incorporates reviewing tailings retreatment, designing drill programmes for resource enhancement in and around the mine, mine design and scheduling, ventilation, metallurgy, process flowsheets, and a detailed cash flow model, to draw together a project-wide feasibility study.

This year our geological team also located substantial historical production data relating to Namib, which will be invaluable as we continue development. We have ascertained that the mine produced at least 104,000 tonnes of concentrate, worth in excess of US$100 million in revenue at today's commodity prices and normal recovery returns. This concentrate was extracted from approximately 700,000 tonnes of ore and mined to a depth of around 200m. We calculate that the head grade would have been about 10% combined lead and zinc contained metal.

Corporate Developments

During the period under review, I was delighted to welcome two new non-executive directors: Mr. Brett Richards, formerly CEO of Avocet Mining plc and currently CEO of Octea Mining, a large diamond producer in Sierra Leone; and Ms. Qi Yu, CEO of Extract Resources Limited. Qi is based in London and through her position as CEO of Extract Resources, which is also owned by Taurus Mineral Limited, our major shareholder, is able to act as liaison with our Beijing based Board members.

In addition, in February we bolstered our operational team significantly through the appointment of Dominic Claridge as project manager for the Namib project. Dominic had previously worked for AIM listed Weatherly International plc, developing a similar lead zinc mine in Namibia and so is uniquely qualified for this position I believe. His presence on the team has already yielded results for the Company, and I look forward to working with him closely in the future as we develop Namib.

In order to support our immediate development objectives at Namib, we raised approximately £1 million through a share placing with new and existing investors in April 2013. In addition to strengthening our balance sheet, this placing also importantly brought new investors to our share register.

Financial Review

The Company reduced its loss before taxation for the year by 95% to £772,515 (2012: loss of £1,508,981) due to the streamlining of operational and administrative costs. Due to the Company's heightened focus on Namib, its expenditure on its additional assets has been substantially reduced, and the Company focussed primarily on low-cost desk-top studies at Namib during the period. The Company has worked hard to minimise administrative overhead. With the acceleration of exploration and development programmes at Namib post period end, a theme which is anticipated to continue over the course of the 2013, operational expenditure is expected to rise in line with the level of activity on the ground at Namib.

The Company's cash position at the end of the period was £1,089,843.

Outlook

I am encouraged by the progress that we have made so far in 2013, and the performance of our new board and management team. We have a great deal of milestones, both operational and corporate, to reach over the course of the next 12 months, and I believe this has the potential to add significant value to our Company and key asset at Namib.

The coming months are therefore set to be very busy for North River as we work towards the recommencement of lead, zinc and silver production from this prospective brownfield site.

Martin French

Managing Director

13 September 2013

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

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD FROM 1 JANUARY 2013 TO 30 JUNE 2013

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2013

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD FROM 1 JANUARY 2013 TO 30 JUNE 2013

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE PERIOD FROM 1 JANUARY 2013 TO 30 JUNE 2013

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

NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL INFORMATION

FOR THE SIX MONTHS ENDED 30 JUNE 2013

1. BASIS OF PREPARATION

The condensed consolidated interim financial information has been prepared in accordance with International Financial Reporting Standard 34, Interim Financial Reporting.

These interim results for the six months ended 30 June 2013 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 2012. The financial statements for the year ended 31 December 2012 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 focussed 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 of the Group's assets are based in the United Kingdom, Namibia and Mozambique.

Geographical Segment - Group 30 June 2013 (UNAUDITED)

At the end of June 2013, the Group had not yet commenced commercial production from its exploration sites and therefore had no turnover for the period.

Geographical Segment - Group 30 June 2012 (UNAUDITED)

Geographical Segment - Group 31 December 2012 (Audited)

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 each ("Ordinary shares") at a price of 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 2013. However, this goodwill has been written down by £92,782 being the value of the Ubib Exclusive Prospecting Licences (EPL) 3139 which, was relinquished in April 2013.

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 interim financial information:

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 in the JV in January 2012. The principal assets of Brandberg were EPL 3327 and EPL 3328, pursuant to which Brandberg had 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 were used by Brandberg to expedite further uranium exploration on these licences. The exploration activity to discover uranium was unsuccessful and in January 2013 the licences were relinquished. The decision was made to close Brandberg and return any assets to its shareholders by way of a dividend.

Aggregated amounts relating to the joint venture are as follows:

Carrying value of investment in joint venture

The joint venture had no contingent liabilities or capital commitments as at 30 June 2013.

8. INVESTMENT IN ASSOCIATED COMPANY

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

North River Resources (Murrupula) Limitada ('Murrupula') is a company that was registered in Mozambique on 27 January 2011. The Group's 40% interest in Murrupula is jointly held by North River Resources Plc (20%) and NRR Mozambique Limited (20%). It is the beneficial owner of two exploration licences, which are in the process of being registered in the name of the company by the Ministry of Mines in Mozambique. The licences and Murrupula are the subject of a joint venture ("JV") agreement between Baobab Resources Limited ("Baobab") and North River Resources Plc. Under the JV agreement Baobab was entitled to a 60% participation interest in Murrupula on completing an agreed level of exploration expenditure before 13 November 2011. Baobab has completed the agreed exploration work and is now entitled to 60% ownership of Murrupula. Due to the fact that the exploration licences have not yet been registered in the name of Murrupula, legal control over Murrupula has not yet passed to Baobab, however effective control has passed. Accordingly, this consolidated interim financial information has been prepared on the basis that control has passed and that Murrupula is treated as an associate as from 1 October 2011.

Aggregated amounts relating to the associated company are as follows:

Carrying value of investment in associate

9. ORDINARY SHARES

Allotted, issued and fully paid:

10. SUBSIDIARY ENTITIES

The consolidated interim financial information includes the following group companies:

The acquisition of WAGE and Namib Lead is covered in detail under Note 4 'Goodwill and Business Combinations'.

NRR Energy Minerals Limited and NRR Mozambique Limited act as holding companies to associates, joint venture companies and subsidiaries in Namibia and Mozambique respectively.

11. SHARE BASED PAYMENTS

Share options outstanding