Preliminary Final Results

Praetorian Resources (AIM: PRAE) is pleased to announce its preliminary audited results for the period from incorporation to 31 March 2013. The financial information set out below does not constitute the statutory audited accounts for the period ended 31 March 2013 but is derived from those accounts. The full Annual Report and Accounts, including the audit report, will soon be posted to applicable shareholders and available on the Company's website: www.praetorianresources.com.

Commenting on the preliminary statements the Company's Chairman Robert King - said "It is with much regret that our inaugural financial statements are so disappointing.

"As you are aware investment timing is a critical part of an investment strategy and with the benefit of hindsight we were premature in anticipating a cyclical upturn in the natural resources sector.

"With specific regard to the Praetorian Resources portfolio, after an unquestionably tough start our strategy has been to concentrate the portfolio into six key positions where we will continue to take a hands on approach with management to maximize these opportunities. These six core investee companies now equate to approx. 75% of the NAV and utilising our collective skills the Directors are determined to restore lost shareholder funds. The Directors have looked carefully at the central costs of the Company and these are being reduced to reflect our current position.

"Looking to the immediate future, our specific challenge is building on the July 2012 IPO by procuring a second round of additional finance to scale up our contrarian investment activities. The Company remains under capitalised in the current attractively priced environment."

Contact:

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Registered Office: 11 New Street, St Peter Port, Guernsey, GY1 2PF

Chairman's Report

Dear Shareholder

It is with much regret that our inaugural financial statements are so disappointing. At the period end our net assets attributable to the Ordinary Shareholders was £16,128,166 resulting in a Net Asset Value per Ordinary Share of 32 pence a decline of 34% from the initial launch price. The Net Asset Value per Ordinary Share as at 30 June 2013 has fallen further, to 19 pence, a decline of 41% since period end and a total of 61% since launch.

As you are aware investment timing is a critical part of an investment strategy and with the benefit of hindsight we were premature in anticipating a cyclical upturn in the natural resources sector. We believed and still do that launching a contrarian investment vehicle following a major collapse in stock prices in our target sectors was a low risk strategy albeit caveated by the possibility that we may still face one final market capitulation. We did not however anticipate the further substantial indiscriminate decline that has destroyed share prices of many of the sector's emerging stars.

As we write the only certainty is continued uncertainty with valuations remaining at demoralised levels and prudence dictates that the contrarian approach should in time prove to be a highly lucrative strategy. We believe exceptional investment opportunities lie ahead and if investors are not yet "contrarian" at this stage then they risk missing out on a spectacular upswing that could mark a historic bottom and one that may herald in one of the best money making periods in this particular commodity space for several decades. It is becoming increasingly apparent to the Directors and their peers that the next twelve months may witness the greatest washout of junior mining stocks that the resources sector has ever seen and it is highly likely that a substantial number of the smaller exploration companies will simply not be around this time next year. The severe capital funding drought currently plaguing the sector may not abate until the cyclical changes in the commodity space turn upwards again.

Paradoxically this will be a fertile time for Praetorian Resources' Investment and Advisory Team to exercise its proven skills as some excellent assets are being trapped in the shakeout providing new and potentially rewarding investment opportunities. Inevitably a new wave of mergers and acquisitions and other corporate activity will also help values to improve. There are still far too many juniors scrambling around the globe looking for bonanza grades absorbing vast amounts of investors' cash with very little to show for their efforts. They have clogged up investment portfolios and as a result have left a sour taste in the mouth of both managers and their investors. Moreover the discovery cycle, which is usually in full swing by now following a period of frenzied exploration spending, still stubbornly refuses to help kick-start the sector. After some savage declines in explorers' share prices in the last two years perhaps today's low cost entry point is going to prove very astute compared to the high cost entry point in 2010. So far the decimation of market caps has failed to attract the usual bottom feeders.

The drought of liquidity has been extreme and the substantial recovery in the general equity markets worldwide has also taken the emphasis away from the resources sector. Logically if the investor is making significant gains from the wider markets there is little reason to keep supporting the one sector that is in decline.

We believe that not every penny resources stock casualty has a bad project - on the contrary many of those that have crashed still have some excellent projects in the development phase but admittedly desperately bereft of new capital. They are temporarily trapped in the current shake out, and this is where the true distressed value investors with the necessary consummate skills will be rewarded. A remarkable opportunity has arisen for the money which is traditionally used for bargain basement and fundamental value investing. Previous extreme bear markets in juniors have seen wild upswings from the bottom as the better management teams and better projects jump out of the pack to claim another chance of returning significant capital gains.

Short term volatility should never detract from medium to long term investing. And whilst mining and exploration shares have suffered such a dramatic shift in market sentiment, investment companies are provided with a renewed opportunity to take advantage of the heavily oversold positions, which we believe now boast exceptional intrinsic values. There are numerous share price anomalies that have arisen in this rout which are undoubtedly there to be exploited and seldom has such intrinsic value been so obvious.

The future trend of course depends on the big picture. China and the other BRIC's still have the major influential effect on global commodity prices while Quantitative Easing, the Eurozone, currency wars and other geopolitical factors also weigh heavily on the outlook for growth which will ultimately determine the course of renewed inflation. Unless a 'black swan' event dictates otherwise it still looks like 18 months down the track before any meaningful inflation kicks in.

With specific regard to the Praetorian Resources portfolio, after an unquestionably tough start our strategy has been to concentrate the portfolio into six key positions where we will continue to take a hands on approach with management to maximize these opportunities. These six core investee companies now equate to approx. 75% of the NAV and utilising our collective skills the Directors are determined to restore lost shareholder funds.

As part of our immediate strategy for the Company and following our difficult first year the Directors have looked carefully at the central costs of the Company and these are being reduced to reflect our current position. Mr Andrew Ferguson and Mr Malcolm Burne voluntarily resigned from the Board for no compensation with effect from 27 June 2013. Mr Burne will retain his position on the Company's Advisory and Execution Team alongside Charles Cannon-Brookes. Mr Burne and Mr Cannon-Brookes have each agreed to defer any future fees or personal entitlements due to them until further notice in order to minimise cash payments out of the Company. These deferred fees and entitlements will be accrued and reflected within the Company's NAV. Furthermore the remaining Directors have either reduced the level of their fees or deferred the payment of their fees until further notice. A further review of the cost of Praetorian Resources' third party service providers will also be undertaken. In aggregate these changes should reduce the annual central administrative costs by in excess of £200,000, which the Directors believe better reflects the challenging conditions that we are all facing.

Looking to the immediate future, our specific challenge is building on the July 2012 IPO by procuring a second round of additional finance to scale up our contrarian investment activities. The Company remains under capitalised in the current attractively priced environment.

Robert King - Chairman

Consolidated Statement of Comprehensive Income for the period from incorporation on 22 February 2012 to 31 March 2013

All activities derive from continuing operations.

All income is attributable to the holders of the Ordinary Shares of the Company.

Consolidated Statement of Financial Position as at 31 March 2013

Consolidated Statement of Changes in Equity for the period 22 February 2012 to 31 March 2013

Consolidated Statement of Cash Flows for the period from incorporation on 22 February 2012 to 31 March 2013

1. FINANCIAL INFORMATION

The financial information set out above does not constitute the Company's statutory audited accounts for the period ended 31 March 2013 but is derived from those accounts. The full Annual Report and Accounts, including the audit report, will soon be posted to applicable shareholders and available on the Company's website: www.praetorianresources.com.

2. SIGNIFICANT ACCOUNTING POLICIES

Basis of preparation

The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") which comprise standards and interpretations as issued and approved by the International Accounting Standards Board ("IASB"), and International Accounting Standards Interpretations Committee's interpretations approved by the International Accounting Standards Committee ("IASC") that remain in effect, and to the extent that they have been adopted by the European Union, and reflect the following policies, which have been adopted and applied consistently.

Basic and diluted deficit per ordinary share

 £

Loss for the period

(8,549,735)

Weighted average number of ordinary shares in issue

48,625,982

EPS (pence)

(17.58)

The earnings per share is based on the loss for the period and on the weighted average number of ordinary shares in issue for the period.

The Group's subscription shares could potentially dilute the earnings per share in the future.

£

Net assets

16,128,166

Ordinary shares in issue

50,093,901

Net asset value per share (pence)

32.20

Level 1

Level 3

Total

 £

 £

 £

Additions at cost - in specie

 14,713,092

 1,314,499

 16,027,591

Additions at cost - cash

 11,160,840

-

 11,160,840

Disposals proceeds

 (3,873,013)

-

 (3,873,013)

Net realised gain on disposal of investments

131,432

-

131,432

Closing portfolio cost

 22,132,351

 1,314,499

 23,446,850

Net unrealised loss on investments

 (7,208,780)

(912,227)

 (8,121,007)

Closing valuation

 14,923,571

402,272

 15,325,843

Net unrealised loss on investments

 (7,208,780)

(912,227)

 (8,121,007)

Net realised gain on disposal of investments

131,432

-

131,432

Net capital loss on fair value of financial assets designated at fair value through profit or loss

 (7,077,348)

(912,227)

 (7,989,575)

Investment income

25,735

-

25,735

Total losses on Financial Assets at fair value through profit or loss

 (7,051,613)

(912,227)

 (7,963,840)

There were no transfers of financial assets between fair value hierarchy levels during the period.