Issue of equity and trading update

11 February 2011

Strategic Natural Resources PLC

("SNR" or the "Company")

Issue of equity and trading update

Issue of equity

The Board of Strategic Natural Resources plc (AIM:SNRP) is pleased to announce that the Company has completed the conditional placing of 5.0 million new ordinary shares of 1p each (the "Placing Shares") at a price of 21.6 pence per share, raising £1,080,000 for the Company (the "Placing"). All of the Placing Shares have been subscribed for by Cooch 1095 Limited, a Company nominated in accordance with an agreement between SNR's black economic empowerment partner, Rapitrade 644 (Pty) Ltd (''Rapitrade''), and SNR's 74 per cent. owned subsidiary, Elitheni Coal (Pty) Limited, (further details of which were announced on 24 January 2011). The Placing is conditional only upon the admission of the Placing Shares to trading on AIM ("Admission"). The proceeds of the Placing have been received by SNR and will be used by the Company to fund the continued development and commercialisation of the Company's coal mining assets in the Eastern Cape of the Republic of South Africa. The Placing follows an initial investment by Rapidtrade of 10.0 million ordinary shares of 1p each in the Company, announced on 24 January 2011.

Trading update

The Board are pleased to announce that the Company is making good progress in executing its strategy of commercialising its coal mining assets in the Eastern Cape, including the commencement of a new drilling programme. The Company is currently engaged in advanced discussions with interested parties in connection with an off take agreement and the Board anticipates being in a position to announce further details in connection with this upon completion of these discussions.

In addition the Company is looking to strengthen its management team and expects to announce certain appointments over the coming months.

David Nel, CEO of SNR, commented: "We are delighted that Rapitrade, through their appointed nominee, have decided to increase their holding in SNR. The proceeds of the Placing will enable us to continue our development in the Eastern Cape. We are also pleased to be involved in active discussions with potential off take partners."

Application has been made for the Placing Shares to be admitted to trading on AIM and it is expected that Admission will take place on or around 14 February 2011. On Admission the Placing Shares will represent 4.58 per cent. of the enlarged share capital of SNR and will be registered in the name of Cooch 1095 Limited. Following Admission, Rapitrade will have a total beneficial interest in 15,000,000 ordinary shares in SNR, equivalent to 13.75 per cent. of the Company's enlarged share capital. The total enlarged issued share capital of SNR following Admission will be 109,103,333 ordinary shares of 1 pence each in the Company. The above figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Disclosure and Transparency Rules.

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For further information about Strategic Natural Resources plc please visit www.snrplc.co.uk.

About Black Economic Empowerment

Black Economic Empowerment is a programme launched by the South African government with the aim of redressing the inequalities of Apartheid by giving previously disadvantaged groups economic opportunities previously not available to them. It includes measures such as Employment Equity, skills development, ownership, management, socioeconomic development and preferential procurement.