Operational Update

Strategic Natural Resources PLC

("SNR" or the "Company")

Operational update

Following on from the Company's recent resources and related reserves update and announcement of its interim results, announced on 29 and 30 November 2012 respectively, the Company is today providing the following operational update.

Underground mining commenced in November 2012 with the encouraging news that initial coal seam thickness is greater than predicted by Minxcon in the recent resources and related reserves update. This will greatly assist the Company in achieving its forecast production rates. Staff recruitment and training is on target and additional mining equipment, which will allow the Company to increase it's mining capacity, is due to arrive in January 2013, as scheduled.

The wash plant at the Elitheni mine commenced operation on the 21st of November, but is experiencing commissioning teething problems and, as a result has not yet achieved predicted output rates. The manufacturer, PJ Technologies, have their experts on site and have informed the Company that they are confident that they can get the wash plant up to predicted output rates during January 2013.

While sufficient coal has been mined by the Company at the Elitheni Mine to fulfill the first sales cargo, given the delays in achieving predicted wash plant output levels, the board of SNR has today taken the decision to delay the shipment of the first cargo of SNR coal to late January/February 2013 in order to ensure the wash plant is operating at optimal capacity before exporting through East London. As a result, SNR will satisfy its contractual commitment for a late December/early January cargo through coal trading.

David Nel CEO said: "I am very pleased overall with the operational progress made at the Elitheni mine. Whilst the wash plant output rate is not yet at peak production, I am confident, based on the commitment of the manufacturer, PJ Technologies, that this will be fixed in January. I am optimistic, based on what has been achieved during 2012, that the coming year will be a successful one for the Company and its shareholders."

24 December 2012