Interim Results

30 March 2011

LP Hill Plc

 ("LP Hill" or the "Company")

Interim Results for the six months ended 31 December 2010

LP Hill (AIM: LPH), the AIM listed uranium, thorium, base and precious metals exploration and development company operating in Madagascar, announces its unaudited interim results for the six months ended 31 December 2010. 

Highlights:

·; Restructuring of the Company now successfully completed.

·; Phase 1 work programme at the Company's Marodambo Project completed and assessment of results obtained ongoing.

·; Environmental clearances still awaited for proposed Phase 2 of the work programme. A decision on whether to progress with the Phase 2 work programme will be taken once an assessment of the results from the Phase 1 work programme has been completed.

·; Identification and assessment of additional mineral exploration projects ongoing in order to potentially expand the Company's asset portfolio.

Events subsequent to the results period:

·; On 14 March 2011, in order to provide additional working capital for the group, an existing significant shareholder agreed to subscribe £300,000 for convertible unsecured loan notes 2014.

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

"We are pleased to have completed Phase 1 of our work programme on the Marodambo Project in Madagascar and are continuing to assess the results obtained therein before deciding whether to sanction the proposed second phase of the work programme. 

On 14 March 2011, we announced the subscription by Hereford Group Limited of £300,000 of additional convertible unsecured loan notes 2014. We are delighted with the continuing support provided by Hereford and look forward to them remaining a long term shareholder of the Company. These additional funds will allow the Company to continue to actively seek out and assess other promising opportunities to expand its project portfolio including the potential acquisition of more advanced exploration projects and income producing assets".

For further information, please contact:

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

Justin Tooth

Guy Wilkes

Chairman's Statement

I have pleasure in presenting the unaudited interim results for LP Hill in respect of the six month period ended 31 December 2010.

Following the successful reverse acquisition of Tranomaro Mineral Development Corporation Limited ("Tranomaro") in December 2009, the Company has now completed its Phase 1 exploration activities in Madagascar. These 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 currently awaiting receipt of the requisite environmental clearances and approvals from the relevant government authorities, before potentially undertaking Phase 2 of the exploration programme. 

The second phase is likely to involve further petro-mineralogical studies, rotary air blast or diamond drilling and further costeaning (trenching) of selected anomalies, analytical chemistry and sample assessment. The initial planned work programme was designed to be conducted over an approximate eighteen month to two year period and was initially budgeted at US$250,000 (approximately £155,000), with the formal decision upon the second phase still to be taken following the ongoing assessment of the results obtained from Phase 1. Since the acquisition of Tranomaro in December of 2009, the Company has already expended approximately £152,000 in total on its exploration activities in Madagascar on its Marodambo Project, whilst now awaiting the necessary environmental clearances in assessing whether to progress on to Phase 2.

Reflecting the above exploration expenses and the ongoing costs associated with conducting the necessary due diligence on potential new projects, the Company incurred a loss after tax for the six month period ended 31 December 2010 of approximately £158,000 (2009: loss of £146,000).

In order to provide additional working capital for the enlarged group, an existing significant shareholder in the Company, the Hereford Group Limited, agreed to subscribe a further £300,000 for convertible unsecured loan notes post the results period end which, unless converted, falls due for repayment on 14 March 2014.

In addition to the Company's ongoing early-stage exploration activities in Madagascar, the Board continues to actively seek further attractive mineral exploration projects focusing on the discovery, analysis and exploitation of projects involving other precious and base metals, specifically those relating to the platinum group metals, gold, copper, manganese and zinc.

The Company expects to raise additional equity and/or debt finance in due course to ensure that the group maintains an appropriate capital structure and thus is able to fund its ongoing working capital requirements, along with potential future development opportunities.

I would like to take this opportunity to thank all of our shareholders for their continuing support and patience and look forward to reporting further progress in due course.

Gerard Nealon

Executive Chairman

30 March 2011

Consolidated Statement of Comprehensive Income

For the six months ended 31 December 2010

Consolidated Statement of Financial Position as at 31 December 2010

Consolidated Statement of Changes in Equity

For the six months ended 31 December 2010

Consolidated Cash Flow Statement

For the six months ended 31 December 2010

Notes to the Interim Financial Information

For the six months ended 31 December 2010

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

This interim report, 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, using accounting policies which are consistent with those set out in the Company's Annual Report and Financial Statements for the year ended 30 June 2010. This interim financial information for the six months ended 31 December 2010, complies with IAS 34 'Interim Financial Reporting' and was approved by the Board on 29 March 2011.

3. Significant Accounting Policies

Except as described below, the accounting policies applied are consistent with those of the annual financial statements for the year ended 30 June 2010 and as described in those annual financial statements.

Basis of consolidation

The consolidated financial statements incorporate 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 these 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 financial statements but may effect the accounting for future transactions and arrangements.

Title Issued Effective date

IFRIC 19 Extinguishing Financial Liabilities Nov 09 Accounting periods beginning

With Equity Instruments on or after 1 July 2010

Standards and Interpretations issued but not effective for these financial statements

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

Title Issued Effective date

IFRIC 14 (Amendment) Prepayments of a minimum Nov 09 Accounting periods beginning funding requirement on or after 1 January 2011

Revised IAS 24 Related Party Disclosures Nov 09 Accounting periods

beginning

on or after 1 January 2011

IAS 32 (Amendment) Financial Instruments: Oct 09 Accounting periods

beginning

Presentation - Classification of Rights Issue 2010 on or after 1 February 2010

Standards and Interpretations issued but not yet EU approved

The following new and revised Standards and Interpretations have not been approved but may have on impact on future accounting periods.

Title Issued Effective date

IFRS 9 Financial Instruments Nov 09 Accounting periods

beginning

on or after 1 January 2013

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 for business segment or geographical segment is required.

5. Earnings/(loss) per Share

Earnings and 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, (31 December 2009: basic and diluted 16,568,976; 30 June 2010: basic and diluted 23,168,068 . The loss for the financial period was £158,000 (31 December 2009: £146,000; 30 June 2010: £786,000.

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

7. Called up share capital

The issued ordinary share capital as at 30 June 2010, per the audited accounts, was 27,992,780 ordinary shares of £0.001 each. At 31 December 2009 there were 27,992,780 ordinary shares of £0.001 each and as at 31 December 2010 there were 27,992,780 ordinary shares of £0.001 each.

8. Post balance sheet events

On 14 March 2011, Hereford Group Limited, an existing significant shareholder in the Company, agreed to subscribe £300,000 for additional convertible unsecured loan notes (the "Convertible Loan Notes") which bear interest at a 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 14 March 2014 (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 14 March 2014, 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 14 March 2014 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 10 pence per share at any time until the Final Repayment Date. The notes are transferable in minimum tranches of £5,000 subject to certain limited restrictions.

9. The unaudited interim financial information for the period ended 31 December 2010 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 2010 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 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 report will also be made available on the Company's website at: www.lphill.com.au.