Loan Facility

29 October 2012

Strategic Natural Resources PLC

("SNR" or the "Company")

New Loan Facility of up to £10 million

SNR, the AIM listed natural resources developer operating in South Africa, is pleased to announce that it has entered into a short-term unsecured loan facility of up to £10 million (the "New Loan Facility") with Land Consultants Limited ("LCL"), which will provide short term additional finance to support the achievement of the Company's short term goals. 

The New Loan Facility is for a term of up to 12 months and can be drawn down in amounts of not less than £1 million. Interest is payable on amounts drawn down at a rate of 20 per cent. per annum (subject to a minimum amount payable of six months interest on all such amounts drawn down). LCL has the right (for a period of 12 months after the relevant drawdown date) to convert such amounts that have been drawn down and remain outstanding into new ordinary shares of 1p each in the Company ("New SNR Shares") at a conversion price of 25 pence per New SNR Share.

The Company intends drawing the minimum amount operationally required under this facility only and, on account of LCL's ability to convert the amounts drawn down into New SNR Shares, the SNR board will only draw down such amounts which, on conversion, would not exceed the Company's authority to allot New SNR Shares from time to time.

SNR Chief Executive David Nel said, "We are pleased to have finalised this facility, which gives SNR flexibility, accessibility to cash if needed and the necessary financial capability to achieve our production and delivery targets, without encumbering any of SNR's assets. The New Loan Facility is a bridging facility that will assist us in achieving our goals in the short term, whilst we continue to negotiate longer term debt solutions. "

About LCL: Land Consultants Limited is an Isle of Man based private investment vehicle, owned and managed by Simon Cooper and Simon McNally. LCL's investment focus is on near term revenue projects across a spectrum of commercial interests.

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