24th Sep 2007 07:01
Triple Plate Junction Plc24 September 2007 For Immediate Release 24 September 2007 Triple Plate Junction PLC ("TPJ" or the "Company") Preliminary Results for the Year ended 31 March 2007 Triple Plate Junction PLC (AIM : TPJ), the gold exploration company is pleasedto announce preliminary results for the year ended 31 March 2007. Summary of key points: Vietnam • Increase of licensing package from 154 sq.km to 369 sq. km • Airborne geophysical survey completed, being actively followedup with intensive field programmes. • Mapping and systematic sampling of gold-bearing structurescontinued • Explorer MD drill rig commissioned Papua New Guinea • Fast tracking of Otibana project - identifying over 9km ofstrike • Promising results from other prospects including Manus Islandwhere diamond drill programme is expected Q4 2007 Africa • Initial 1 MVA capacity electric arc furnace operation in Zambiahas poured high purity blister copper Capital expenditure • Total of £4.4m was spent on exploration activities in Vietnam(£1.1m), Papua New Guinea (£1.8m) and the construction of electric arc furnacesand copper ore procurement in Africa £1.5m). Ian Gowrie-Smith, Chairman, commented: "During 2006/7 TPJ has continued to focus on the Otibanda Prospect in PNG andhas delineated significant length on the three lodes. This prospect continuesto grow in size and scale. The Company has poured high purity blister copperfrom its furnaces in Africa and has continued an aggressive explorationprogramme with Newmont Mining Corporation in Vietnam. "It is the philosophy of TPJ to concentrate mainly on the discovery ofworld-class deposits with multi-million ounce potential for gold or goldequivalent. We believe that the progress made and the results achieved to datemean that TPJ has a good chance of proving up at least one of these very largedeposits." For further information please contact: Triple Plate Junction PLC 020 73409970Geoff Walsh, Chief ExecutiveDavid Lees, Finance Director Buchanan Communications 020 7466 5000Tim Anderson, Isabel Podda Arbuthnot Securities 020 7012 2000John Prior Chairman's Statement Triple Plate Junction Plc (TPJ) has again been extremely active in the year toMarch 2007 having received very encouraging exploration results in both Vietnamand Papua New Guinea. It is the philosophy of TPJ to concentrate mainly on the discovery ofworld-class deposits with multi-million ounce potential for gold or goldequivalent. We believe that the progress made and the results achieved to datemean that TPJ has a good chance of proving up at least one of these very largedeposits. Concurrent with our exploration programs, the Company decided to invest indeveloping its own smelting operation in Zambia to take advantage of the highprices of copper and what were relatively abundant quantities of very richcopper from artesianal miners and eventually from our own deposits. Theobjective in pursuing this investment was to create a cash flow to fund theexploration efforts in Papua New Guinea and Vietnam. Therefore, our focus has been in three main areas: Continued exploration and drilling at our highly prospective Otibanda goldprospect in Papua New Guinea (PNG) while maintaining exploration programmes onmany other prospects; Expansion of exploration activities in Vietnam and opening up of the Upper NamDich alkalic porphyry copper-gold system following our analysis of the airbornegeophysical and radiometric survey carried out over its Pu Sam Cap project; and Continued development of our smelter operations in Central Africa. Capital expenditure to 31 March 2007 of £4.4m was spent on explorationactivities in Vietnam (£1.1m), Papua New Guinea (£1.8m) and the construction ofelectric arc furnaces and copper ore procurement in Africa (£1.5m). Vietnam - During the year, TPJ added significantly to its licence package at thePu Sam Cap project by increasing the area held from 154 sq.km to 369 sq.km withthe issue of a new prospecting licence surrounding the existing explorationlicences. The Company has continued to work closely with its joint venturepartner Newmont Vietnam Pty Ltd, a wholly owned subsidiary of Newmont MiningCorporation, atPu Sam Cap The Company has also maintained a close level ofcooperation with Vietnamese government departments and the success of thiscooperation is reflected in the issue of the new licence, the first prospectingor exploration licence to be granted to a foreign company in Vietnam since TPJreceived its Pu Sam Cap exploration licences in March 2005. Working from the Company's regional office in Lai Chau Province, field teamshave successfully maintained an active exploration programme throughout theyear, which included scout drilling programs using the Company-owned Explorer MDman portable rig. The field programmes have been following up a number of theanomalies highlighted by the airborne geophysical survey completed in 2006 incooperation with Newmont. This work has led to the discovery of the Upper NamDich large volume alkalic porphyry copper-gold anomaly within the Pu Sam Capmineralised system. Methodical mapping and geochemical sampling has defined anarea of at least 800 metres by 800 metres of anomalous gold, copper, molybdenumand silver values in soil and rock. Drilling is underway to better define theanomaly. Other noteworthy results include some excellent metal values returnedfrom surface channel sampling at the T-Bowl prospect area near the Upper NamDich anomaly. A 100 metre long structure with a width of 2-5 meters has beenexposed. Channel sampling of this exposure has given an average width of 2.8metres over the 100 metre strike length grading 6.96% copper and 72g/t silverwith gold credits of 0.3g/t. Exploration work continues to focus on extendingthis structure with drilling planned in the near future. Results to date have been extremely encouraging and the Company is confidentthat its continued systematic and thorough approach to the exploration at Pu SamCap has a high chance to make a very significant discovery for the region.Our exploration team has capitalised on the experience gained during previousexploration seasons and the team, consisting of both Vietnamese and expatriategeologists, is well seasoned and continues to undertake high quality explorationin difficult terrain. Papua New Guinea - The Company has five active field programmes, the largest andmost exciting of which is the Otibanda project in the Wau-Morobe mineralprovince. The Company has focused the majority of its PNG resources on thisproject in the last year due to the enormous potential of the project and has asubstantial team in the field with an active drill programme underway.Management feel that progress to date has justified this focus and it continuesto remain a high priority for the Company going forward. To date the Companyhas identified three main gold-bearing lodes with multiple smaller lodes whichtotal over 9km of strike length. Both porphyry copper style mineralisation andepithermal gold overprint have been recognised. The drill programme has provedthe continuation of grade at depth on the first lode, the Otibanda lode, andthis bodes well for the discovery of a significant ore body. Drilling has yetto start on the other two lodes. The Company has continued exploration with promising results starting to emergefrom some of its many other prospects and targets in PNG including the ManusIsland project where a diamond drill programme is expected to follow up in thelast quarter of 2007 on recently completed field work. In relation to otherprospects in the portfolio where the Company does not have the resources becauseof its current priorities and commitments, but which warrant high expenditureassessment programs, the company will seek to enter into farmout arrangementsto accelerate exploration.. In addition, new tenements will be sought asappropriate over prospective ground where the Company has established astrategic exploration advantage. Africa - The project to develop an initial 1 MVA capacity electric arc furnaceoperation in Zambia consisting of two 500kva AC electric arc water-cooledfurnaces continues. These furnaces have the capacity to smelt both copper oxideores and cobalt ores and the operation has poured high purity blister copperdespite some significant delays as a result of poor weather conditions anddesign complications which management believe have now been overcome. TPJ iscontinuing to build its copper-ore production base through licence applicationand acquisition. Summary - During 2006/7 TPJ has continued to focus on the Otibanda Prospect inPNG and has delineated significant length and depth extension on the threelodes. This prospect continues to grow in size and scale. Drilling willcommence soon on Manus Island. The Company has poured high purity blister copperfrom its furnaces in Africa and has continued an aggressive explorationprogramme with Newmont Mining Corporation in Vietnam. My thanks go to the management and staff for their exceptional dedication, oftenin trying field conditions, and to you the shareholders for making it allpossible. I also wish to especially thank two Non-Executive Directors, JimBunyan and Baden Gowrie-Smith who are retiring at the forthcoming AGM, for theirgenerous contributions during TPJ's formative years. Ian Gowrie-SmithChairman21 September 2007 REPORT OF DIRECTORS The directors present their report together with the financial statements forthe year ended 31 March 2007. Principal activity The Company's principal activity is a gold, copper-gold and other mineralexploration company. Further details are given in the Chairman's Statement. Business review A review of the business during the year and an indication of likely futuredevelopments may be found in the Chairman's Statement. The consolidated loss for the financial year after taxation and minorityinterest amounted to £894,000 (Restated 2006: £796,000). Risk Factors The exploration for and development of natural resources is a speculativeactivity that involves a high degree of risk. The Directors believe that, inparticular, readers of this report should be aware of the following risks anduncertainties. If any of these risks and uncertainties, together with possibleadditional risks and uncertainties of which the Directors are currently unawareor which they consider not to be material in relation to the Company's business,actually occur, the Company's business, financial position or operating resultscould be materially and adversely affected. It should be noted that the list isnot exhaustive and that certain other risk factors may apply. Geology and Reserves The exploration for minerals involves significant uncertainties and the Group'soperations will be subject to all of the hazards and risks normally associatedin such activities. Environmental Regulations The Company's operations are subject to the extensive environmental risksinherent in the exploration and mining industry. Although the Directors believe that the Group is in compliance in all materialrespects with any applicable environmental laws and regulations, there arecertain risks inherent in their activities and those that the Group couldundertake in the future, including without limitation risks of accidentalspills, leakages or other unforeseen circumstances, which could subject theCompany to additional liability. Capital Expenditure The Group's business requires significant capital expenditures. In the eventthat the Group will not be able to raise the financing required for the Group'splanned capital expenditures, the Group will have to reduce its planned capitalexpenditures. Vietnam Risk Vietnam is in the process of implementing far-reaching economic and legalreforms and it is difficult to predict or anticipate future developments, as theVietnamese legal structure is expected to undergo substantial change in thefuture. On 11 January 2007 Vietnam became a member of the World TradeOrganisation. The economy of Vietnam is substantially less developed than thoseof other geographic regions such as Western Europe and the United States, and assuch the laws and regulatory apparatus are in an early stage of development. In addition, the time taken to obtain approvals to undertake business activitiesin Vietnam may be substantial. The Vietnamese tax code and tax assessment,collection and crediting systems are under development and give local officialsconsiderable leverage and discretion in fixing the level and amount of tax towhich an investment may be subject. Papua New Guinea Risk As an emerging market Papua New Guinea does not possess a fully developedbusiness and regulatory infrastructure that would generally exist in a moremature market economy. The current Government is attempting to address these issues and has many openforums on the reforms that the Group actively participates in. However, it hasnot yet fully implemented the reforms necessary to create banking, judicial andregulatory systems that usually exist in more developed markets. As a result,operations in Papua New Guinea involve risks that are not typically associatedwith those in more developed markets. The environment is such that thelandowners and other interested parties can attempt to obstruct the normalbusiness of a company. Accordingly, the stability and success of the Group'sbusiness will depend upon the Government's ability to institute supervisory,judicial and other regulatory reforms. Zambia Risk Zambia has established a solid track record of performance after 5 years ofliberal economic reforms, improved economic performance and substantive percapita growth. However, corruption remains problematic at the political andadministrative levels and also in relations between companies and publicofficials. The prosecution of former president Chiluba in 2006 for hisinvolvement in major corruption scandals during his time in office is by manyseen as a major shift in the fight against corruption. There remain significant fiscal imbalances and high inflation rates result inunpredictable price fluctuations and high interest rates. Zambia suffers fromlong and complicated administrative procedures however many new initiatives areaimed at reducing excess bureaucracy. A significant obstacle for doing businessin Zambia, however, is the regulatory uncertainty surrounding the administrativeprocedures, public officials' interpretations of regulations are inconsistentand unpredictable. Frequent changes in Zambian tax policy can often leave staffoperating without clear guidelines. Regulatory uncertainty can be problematicwhen applying for licenses necessary for operating in Zambia as are the frequentand unpredictable changes to policies affecting the private sector General The risks noted above do not necessarily comprise all those potentially facedby the Company and are not intended to be presented in any assumed order ofpriority. Directors The directors holding office during the year are set out below: I R Gowrie-SmithG WalshW J S HowellD J LeesJ BunyanB J Gowrie-Smith Biographic details Ian Roderick Gowrie-Smith (Non-Executive Chairman) (aged 59) Ian Gowrie-Smith has been founder and developer of mining and pharmaceuticalpublic companies over the past 31 years. In 1984 he listed TiO2 Corporation, acompany that was responsible for the largest ilmenite deposit in WesternAustralia and which continues to be one of the largest in the world. He ischairman of the board of Tiberon Minerals Limited, a Toronto listed publiccompany developing the Nui Phao project in Vietnam which will make Tiberon theworlds largest primary Tungsten producer. He is chairman of Rift Oil plc, acompany with oil exploration acreage in Papua New Guinea. He was founder of SkyePharma plc, a UK domiciled drug delivery company. Priorto establishing SkyePharma, Ian Gowrie-Smith was the founder and ManagingDirector of Medeva plc. Both Medeva plc and SkyePharma plc have been 'FTSE 250'companies. Geoff Walsh (Chief Executive) (aged 40) Geoff Walsh holds a Masters Degree in Business Administration from CranfieldSchool of Management. From 1991 to 1995 he worked with Lonrho plc as part oftheir FSU focused projects team. During this period he worked closely with theLonrho/Gencor Joint Venture focusing on identification, negotiation anddevelopment of CIS gold resources. In 1995 Geoff co-founded Resource Management& Finance Company Ltd which works with junior exploration companies providingstrategic advice and sourcing both projects and capital. He remains anon-executive director of that company. William John Selwood Howell (Bill Howell) (Exploration Director) (aged 63) Bill Howell has a BSc (Hons) degree in geology from the University ofSouthampton and has more than 37 years experience in all aspects of explorationmanagement and mineral project evaluation with major international corporationsand small innovative companies. Bill Howell is a Fellow of the AustralasianInstitute of Mining and Metallurgy and Chartered Professional (Management). Hehas managed and led teams to a number of mineral discoveries, including therecent major (+5 Moz) gold discovery at Martabe, Indonesia. Bill Howell hasheld senior management positions with BHP (now BHP Billiton), Normandy andNewmont where he was Managing Director of South East Asia exploration from 1995to 2003. From 1993 to 1995 he became primarily involved in managing goldprojects in Vietnam on behalf of Australian and Malaysian investors. Oneproject led to the granting of a Foreign Investment Licence, one of a few tohave been issued for gold mining projects. David John Lees (Finance Director) (aged 60) David is a qualified chartered accountant with many years' experience in thepublic company arena. He has been a founding director of several publiccompanies (such as Medeva plc, SkyePharma plc, Names.co Internet plc). He iscurrently a director of Rift Oil plc (Oil exploration in PNG), The AccidentExchange plc (vehicle hire while car in accident repair), Metis Biotechnologiesplc (biotech in food testing), Network Estates Limited (Industrial Property) andDeal Group Media plc (Internet Marketing). James Bunyan (Non-Executive Director) (aged 60) James Bunyan holds a Masters Degree in Business Administration from WarwickUniversity and a BSc in Bio-chemistry from Heriot Watt University. Hespecialises in corporate development with international business developmentexperience across a broad range of industrial and commercial sectors worldwide.James Bunyan has proven skills in strategic business planning, mergers,acquisitions, disposals, turnarounds and fundraising. He has particularexperience in the international mining industry. James Bunyan was for fiveyears a director of Tiberon Minerals Limited, which developed the Nui Phaodeposit in Vietnam from an exploration concept to one of the largest Tungstenpolymetallic deposits in the world. He is a director of Alhambra ResourcesLimited, Alexander Mining plc and Madison Energy Limited. He intends to resignat the 2007 AGM. Baden Jerome Gowrie-Smith (Non-Executive Director) (aged 25) Baden Gowrie-Smith holds a Masters Degree in Economics from Sydney University.He intends to resign at the 2007 AGM. Substantial shareholders At 20 September 2007 the following had notified the Company of a disclosableinterest in 3% or more of the nominal value of the Company's shares. Beneficial interests Shareholding % Thornaby Limited 20,990,294 22.2%RAB Special Situations (Master) Fund Ltd. 10,900,000 11.5%Gartmore Investment Limited 6,837,472 7.2%Merlin Group Securities Limited 3,526,286 3.7%ING Bank NV 2,950,000 3.1% Thornaby Limited is a company wholly owned by the trustees of the I RGowrie-Smith Family Settlement, of which both I R and B J Gowrie-Smith arebeneficiaries. Financial risk management Information relating to the group's financial risk management is set out in note12 of the financial statements. Creditors payment policy and practice It is the Company's policy to settle the terms of payment with suppliers whenagreeing the terms of the transaction, to ensure that suppliers are aware ofthese terms and endeavour to abide by them. Trade creditors at the year endamount to 36 days (2006: 42 days) average supplies for the year. Dividend The Directors do not recommend the payment of any dividends. Key Performance Indicators The key performance indicators used by management in the year were as follows: • Surface mapping and sampling in PNG has significantly increased thesize and scope of the of Otibanda project; • Analysis of survey data for Vietnam and Papua New Guinea; • Additional prospecting licence granted in Vietnam increasing groundunder licence from 154 square km to 369 square km. • Construction of an electric arc furnace in Zambia. International Financial Reporting Standards ("IFRS") Reporting under IFRS will be mandatory for the Group from the year ending 31March 2008 onwards. A project team has been set up to manage the Group'stransition from UK GAAP to IFRS and to ensure successful implementation withinthe required timeframe. Directors' responsibilities The directors are responsible for preparing the Annual Report and the financialstatements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for eachfinancial year. Under that law the directors have elected to prepare financialstatements in accordance with United Kingdom Accounting Standards (UnitedKingdom Generally Accepted Accounting Practice). The financial statements arerequired by law to give a true and fair view of the state of affairs of thecompany and of the profit or loss of the company for that period. In preparingthese financial statements, the directors are required to: • select suitable accounting policies and then apply them consistently • make judgments and estimates that are reasonable and prudent • state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping proper accounting records thatdisclose with reasonable accuracy at any time the financial position of thecompany and enable them to ensure that the financial statements comply with theCompanies Act 1985. They are also responsible for safeguarding the assets ofthe company and hence for taking reasonable steps for the prevention anddetection of fraud and other irregularities. In so far as the directors are aware: • there is no relevant audit information of which the company's auditors are unaware; and • the directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. The directors are responsible for the maintenance and integrity of the corporateand financial information included on the company's website. Legislation in theUnited Kingdom governing the preparation and dissemination of financialstatements may differ from legislation in other jurisdictions. Auditors Grant Thornton UK LLP offer themselves for reappointment as auditors inaccordance with section 385 of the Companies Act 1985 and a resolution tore-appoint Grant Thornton UK LLP as auditors will be put to the Annual GeneralMeeting. ON BEHALF OF THE BOARD D J LeesDirector21 September 2007 REMUNERATION REPORTFor the year ended March 2007 Directors' emoluments Emoluments Benefits Total Pension contributions 2007 2006 2007 2006 2007 2006 2007 2006 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Executive directors D J Lees 88 43 2 2 90 45 - 4 G Walsh 124 96 3 3 127 99 - 10 W J S Howell 80 50 - - 80 50 - - Non-executivedirectors I R Gowrie-Smith 30 20 - - 30 20 - - J Bunyan 30 23 - - 30 23 - - B J Gowrie-Smith 10 10 - - 10 10 - - 362 242 5 5 367 247 - 14 Contributions were made to 0 (2006: 2) directors' personal pension plans. Service contracts The executive directors have contracts with a six month notice period on eitherside. The non-executive directors have contracts with a two month notice periodon either side. Remuneration policy for executive directors The company's policy on executive director remuneration is to: • attract and retain high quality executives bypaying competitive remuneration packages relevant to each director's role andexperience and the external market. The packages include employment relatedbenefits; and • incentivise directors to maximise shareholdervalue through share options. Executive share option schemes The interests of the directors and other staff in the options of the company at31 March 2007 were: Price (p) Exercise Expiry At Grant Lapsed At Date date 1 April 31 March 2007 2006DirectorsD J Lees 100.0 26/09/00 16/11/09 80,000 - - 80,000 17.5 23/01/05 23/01/12 80,000 - - 80,000 15.0 30/01/06 30/01/13 70,000 - - 70,000 30.0 19/12/06 18/12/13 200,000 - - 200,000 39.5 05/10/07 04/10/14 466,667 - - 466,667 29.5 30/01/08 30/01/13 1,100,000 - - 1,100,000G Walsh 30.0 19/12/06 18/12/13 480,000 - - 480,000 39.5 05/10/07 04/10/14 1,120,000 - - 1,120,000 29.5 19/12/06 18/12/13 1,200,000 - - 1,200,000 30.0 19/12/06 18/12/13 400,000 - 400,000 W J S Howell - 39.5 05/10/07 04/10/14 933,333 - - 933,333 29.5 19/12/06 18/12/13 1,200,000 - - 1,200,000Other 115.0 01/10/03 30/09/10 42,500 - - 42,500 17.5 23/01/05 23/01/12 75,000 - - 75,000 15.0 30/01/06 30/01/13 57,500 - - 57,500 39.5 05/10/07 04/10/14 280,000 - - 280,000 29.5 19/12/06 18/12/13 600,000 - (400,000) 200,000 21.0 09/01/10 08/01/17 - 1,400,000 - 1,400,000 8,385,000 1,400,000 (400,000) 9,385,000 During the year 1,400,000 options were granted under the Executive Share OptionScheme (2006: 4,100,000 options were granted). The options may only be exercised between the third and tenth anniversaries ofthe date of grant by a person who remains a director or employee and for alimited period following cessation of employment. The exercise of options underthe Executive Share Option Scheme may be subject to satisfaction of certainperformance criteria. No options were exercised and 400,000 were cancelled during the year ended 31March 2007 (2006: 0 exercised; 0 lapsed). The market price of the ordinary shares at 31 March 2007 was 24.75p the rangeduring the year was 14.25p to 26.25p. REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF TRIPLE PLATE JUNCTION PLC We have audited the group and parent company financial statements (the''financial statements'') of Triple Plate Junction Plc for the year ended 31March 2007 which comprise the principal accounting policies, the consolidatedprofit and loss account, the consolidated and company balance sheets, theconsolidated cash flow statement and notes 1 to 22. These financial statementshave been prepared under the accounting policies set out therein. This report is made solely to the company's members, as a body, in accordancewith Section 235 of the Companies Act 1985. Our audit work has been undertakenso that we might state to the company's members those matters we are required tostate to them in an auditors' report and for no other purpose. To the fullestextent permitted by law, we do not accept or assume responsibility to anyoneother than the company and the company's members as a body, for our audit work,for this report, or for the opinions we have formed. Respective responsibilities of directors and auditors The directors' responsibilities for preparing the Annual Report and thefinancial statements in accordance with United Kingdom law and AccountingStandards (United Kingdom Generally Accepted Accounting Practice) are set out inthe Statement of Directors' Responsibilities. Our responsibility is to audit the financial statements in accordance withrelevant legal and regulatory requirements and International Standards onAuditing (UK and Ireland). We report to you our opinion as to whether the financial statements give a trueand fair view and are properly prepared in accordance with the Companies Act1985. We also report to you whether in our opinion the information given in theDirectors' Report is consistent with the financial statements. The informationgiven in the Directors' Report includes that specific information presented inthe Chairman's Statement that is cross referred from the Business Review sectionof the Directors' Report. In addition we report to you if, in our opinion, the company has not kept properaccounting records, if we have not received all the information and explanationswe require for our audit, or if information specified by law regardingdirectors' remuneration and other transactions is not disclosed. We read other information contained in the Annual Report, and consider whetherit is consistent with the audited financial statements. This other informationcomprises only the Directors' Report, the Remuneration report and the Chairman'sStatement. We consider the implications for our report if we become aware ofany apparent misstatements or material inconsistencies with the financialstatements. Our responsibilities do not extend to any other information. Basis of audit opinion We conducted our audit in accordance with International Standards on Auditing(UK and Ireland) issued by the Auditing Practices Board. An audit includesexamination, on a test basis, of evidence relevant to the amounts anddisclosures in the financial statements. It also includes an assessment of thesignificant estimates and judgments made by the directors in the preparation ofthe financial statements, and of whether the accounting policies are appropriateto the group's and company's circumstances, consistently applied and adequatelydisclosed. We planned and performed our audit so as to obtain all the information andexplanations which we considered necessary in order to provide us withsufficient evidence to give reasonable assurance that the financial statementsare free from material misstatement, whether caused by fraud or otherirregularity or error. In forming our opinion we also evaluated the overalladequacy of the presentation of information in the financial statements. Opinion In our opinion: • the financial statements give a true and fairview, in accordance with United Kingdom Generally Accepted Accounting Practice,of the state of the group's and the parent company's affairs as at 31 March 2007and of the group's loss for the year then ended; • the financial statements have been properlyprepared in accordance with the Companies Act 1985; and • the information given in the Directors' Reportis consistent with the financial statements for the year ended 31 March 2007. Emphasis of matter - going concern basis of preparation In forming our opinion on the financial statements, which is not qualified, wehave considered the adequacy of the disclosures made in the 'basis ofpreparation - going concern' accounting policy on page 13 of the financialstatements. This concerns the uncertainty over the ability of the group to raisefurther equity to fund its operations if required. In view of the significanceof these uncertainties we consider that they should be drawn to your attention,but our opinion is not qualified in this respect. GRANT THORNTON UK LLPREGISTERED AUDITORSCHARTERED ACCOUNTANTS GATWICK21 September 2007 PRINCIPAL ACCOUNTING POLICIES Basis of preparation The financial statements have been prepared in accordance with United Kingdomapplicable accounting standards and under the historical cost convention. TheCompany has adopted FRS20 with effect from 1 April 2006, the impact of which isset out in Note 15. Going concern The group meets its day to day working capital requirements through a positivecash balance and has no borrowing facilities at present. The group has incurredlosses in the year. In common with other junior mining companies, Triple PlateJunction (TPJ) is reliant on raising further funds periodically through equityfinance or possibly debt facilities. The company set up an operation in Zambia in the year and is in the process ofre-commissioning a smelter there. This process was delayed by a fire at thesmelter but the Board anticipate revenues commencing in October 2007 whichshould result in positive cash flow to the group by December 2007 from theZambian operation which should fund the exploration activities in Vietnam andPapua New Guinea. The nature of the group's business is such that there can be considerableunpredictable variation in the timing of cash flows. Bearing this in mind, thedirectors' have prepared projected cash flow information for the period ending30 September 2008. The projections also include revenue from the smelter fromOctober 2007. On the basis of the directors' projections, the directors consider that thegroup will continue to operate within the currently available funds includingthose from future fundraising. The margin of facilities over requirements is notlarge and there can be no certainty that an issue of equity shares would besuccessful. Nevertheless, the directors consider it is appropriate to preparethe financial statements on the going concern basis. The financial statements donot include any adjustments that would result from the inability to raiseadditional funding. Share based payments The Group has adopted FRS20 with effect from 1 April 2006. FRS20 requires therecognition of a charge to the profit and loss account for all applicable sharebased payments including share options. The Group has equity-settled share based payments in respect of employees but nocash-settled share based payments. All share based payment awards granted after7 November 2002 which had not vested prior to 1 April 2006 are recognised in thefinancial statements at their fair value at the date of grant. All goods and services received in exchange for the grant of any share-basedpayment are measured at their fair values. Where employees are rewarded usingshare-based payments, the fair values of employees' services are determinedindirectly by reference to the fair value of the instruments granted to theemployee. This fair value is appraised at the grant date and excludes theimpact of non-market vesting conditions. All equity-settled share based payments are ultimately recognised as an expensein the profit and loss account with a corresponding credit to 'other reserves'. If vesting periods or non-market based vesting conditions apply, the expense isallocated over the vesting period, based on the best available estimate of shareoptions expected to vest. Estimates are revised subsequently if there is anyindication that the number of share options expected to vest differs fromprevious estimates. Any cumulative adjustment prior to vesting is recognised inthe current period. Any adjustment for options which lapse prior to vesting isrecognised in the current period. Upon exercise of share options, the proceeds received net of attributabletransaction costs are credited to share capital, and where appropriate sharepremium. The adoption of FRS20 requires a prior period adjustment to be made for awardsgranted before 1 April 2006. This has created an opening balance within theoption valuation reserve at 1 April 2006 of £814,000. Group financial statements The group financial statements consolidate those of the company and itssubsidiary undertakings drawn up to 31 March 2007. All intra-group transactionsare eliminated on consolidation. Acquisitions of subsidiaries are dealt with bythe acquisition method of accounting. Fixed assets Deferred exploration costs: Mineral exploration licence costs and licenceapplication costs Exploration and evaluation expenditure comprise costs which are directlyattributable to researching and analysing existing exploration data. It alsoincludes the costs incurred in acquiring mineral rights, the entry premiums paidto gain access to areas of interest and amounts payable to third parties toacquire interests in existing projects. When it has been established that amineral deposit has development potential, all costs (direct and applicableoverhead) incurred in connection with the exploration and development of themineral deposits are capitalised until either production commences or theproject is not considered economically viable. In the event of productioncommencing, the capitalised costs are amortised over the expected life of theore reserves on a unit of production basis. Other pre-trading expenses arewritten off as incurred. Where a project is abandoned or is considered to be ofno further interest the related costs are written off. Tangible assets Tangible fixed assets are stated at cost, net of deprecation and any provisionfor impairment. Depreciation and amortisation are calculated to write down thecost of all tangible fixed assets over their expected useful lives on a straightline basis. The periods generally applicable are: Long leasehold property 2%Motor vehicles 25%Office and computer equipment 25%Camp, field and geological equipment 25% Assets under construction are not depreciated until they are brought into use. Investments Investments are stated at cost less amounts written off. Contributions to defined contribution pension schemes The pension costs charged against profits represent the amount of thecontributions payable to the scheme in respect of the accounting period. Thecompany operates a defined contribution pension scheme for the benefit of theemployees. The assets of the scheme are administered by trustees, in a fundindependent from those of the group. Foreign currency transactions Transactions in foreign currencies are recorded at the rate ruling at the dateof the transaction or at the contracted rate if the transaction is covered by aforward exchange contract. Monetary assets and liabilities denominated inforeign currencies are retranslated at the rate of exchange ruling at thebalance sheet date or if appropriate at the forward contract rate. The accountsof overseas subsidiary undertakings are translated at the rate of exchangeruling at the balance sheet date. The exchange difference arising on theretranslation of opening net assets is taken directly to reserves. All othertranslation differences are taken to the profit and loss account with theexception of differences on foreign currency borrowings to the extent that theyare used to finance or provide a hedge against group equity investments inforeign enterprises, which are taken directly to reserves together with theexchange difference on the net investment in these enterprises. Deferred tax Deferred tax is recognised on all timing differences where the transactions orevents that give the group an obligation to pay more tax in the future, or aright to pay less tax in the future, have occurred by the balance sheet date.Deferred tax assets are recognised when it is more likely than not that theywill be recovered. Deferred tax is measured using rates of tax that have beenenacted or substantively enacted by the balance sheet date. Deferred taxbalances are not discounted. Leased assets Assets held under finance leases are capitalised in the balance sheet anddepreciated over their estimated useful economic lives. All other leases are regarded as operating leases and the payments made underthem are charged to the profit and loss account on a straight-line basis overthe lease term. Financial instruments Financial assets are recognised in the balance sheet at the lower of cost andnet realisable value. Provision is made for diminution in value whereappropriate. Income and expenditure arising on financial instruments isrecognised on the accruals basis and credited or charged to the profit and lossaccount in the financial period to which it relates. Liquid resources Cash balances which require more than 24 hours notice to access is included asliquid resources in the cash flow statement. CONSOLIDATED PROFIT AND LOSS ACCOUNTFor the year ended 31 March 2007 Note 2007 2006 £'000 £'000 RestatedTurnover 1 - - Administrative expenses (1,202) (1,221) Operating loss 1 (1,202) (1,221) Net interest 2 308 425 Loss on ordinary activities before 1 (894) (796)taxation Tax on loss on ordinary activities 4 - - Loss on ordinary activities after taxation 14,16 (894) (796) Basic and diluted loss per share 6 (0.95)p (0.88)p All operations are continuing. There were no recognised gains or losses other than the loss for the financialyear. BALANCE SHEETSAT 31 MARCH 2007 Note Group Group Company Company 2007 2006 2007 2006 £'000 £'000 £'000 £'000 Restated RestatedFixed assetsIntangible assets 7 16,598 13,353 - -Tangible assets 8 1,865 292 35 37Investments 9 - - 9,611 9,611 18,463 13,645 9,646 9,648Current assetsDebtors 10 556 265 9,739 4,714Cash at bank and in hand 3,908 9,284 3,827 9,049 4,464 9,549 13,566 13,763Creditors: amounts falling due within one 11 (670) (394) (221) (203)year Net current assets 3,794 9,155 13,345 13,560 Total assets less current liabilities 22,257 22,800 22,991 23,208 Capital and reservesCalled up share capital 13 944 944 944 944Share premium account 14 16,969 16,969 16,969 16,969Profit and loss account 14 3,187 4,081 3,913 4,481Share Option Reserve 15 1,165 814 1,165 814Minority interest (8) (8) - -Shareholders' funds 16 22,257 22,800 22,991 23,208 The financial statements were approved by the Board of Directors on 21 September2007. D J LeesDirector CONSOLIDATED CASH FLOW STATEMENTFor the year ended 31 March 2007 Note 2007 2007 2006 2006 £'000 £'000 £'000 £'000 Net cash outflow from operating 17 (712) (506)activities Returns on investments and servicing offinanceInterest received 308 425Net cash inflow from returns on 308 425investments and servicing of finance Capital expenditurePurchase of tangible fixed assets (1,727) (253)Purchase of intangible fixed assets (3,245) (2,547)Net cash outflow from capital (4,972) (2,800)expenditure Management of liquid resourcesSale / (Purchase) of short term deposits 7,500 (7,500) FinancingIssue of ordinary share capital - 11,735Expenses paid in connection with share - (815)issuesNet cash inflow from financing - 10,920 Increase in cash 18,19 2,124 539 NOTES TO THE FINANCIAL STATEMENTSFor the year ended 31 March 2007 1 TURNOVER AND LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION No segmental analysis of net assets has been provided, as the assets andliabilities attributable to overseas activities are not separately identified.The activity was due to one segment and hence no segmental analysis is required. The loss on ordinary activities before taxation is stated after charging: 2007 2006 £'000 £'000 Operating lease rentals on land and buildings 77 35Auditors' remuneration- audit services 28 22- non audit services - tax compliance services 12 17 Depreciation- tangible fixed assets, owned 144 81 2 NET INTEREST 2007 2006 £'000 £'000 Bank interest receivable 308 425 3 DIRECTORS AND EMPLOYEES Staff costs Staff costs during the year (including directors' emoluments) were as follows: 2007 2006 £'000 £'000 Wages and salaries 662 312Social security costs 51 46Pension costs 6 25 719 383 The average number of employees of the Group (including directors) during theyear was 119 (2006:68). The total Directors' emoluments for the year were £367,000 (2006: £247,000). Inaddition directors total pension contributions in 2006 were £14,000. The emoluments of the highest paid director were £127,000 (2006: £99,000). 4 TAX ON LOSS ON ORDINARY ACTIVITIES There is no tax charge or credit for the year. An explanation of the taxposition compared to the group reported results is set out below: 2007 2006 £'000 £'000 Restated Loss on ordinary activities before taxation (894) (796) Loss on ordinary activities before taxation multiplied by small (170) (151)companies corporation tax rate of 19% Effect of:Expenses not deductible 135 119Movement in general provisions - (3)Tax losses not recognised 35 35Current tax charge for the year - - There are tax losses of approximately £1,080,000 (2006: £899,000) to carryforward and use against future profits of the same trade. 5 LOSS FOR THE FINANCIAL YEAR The company has taken advantage of section 230 of the Companies Act 1985 and hasnot included its own profit and loss account in these financial statements. Theparent company's loss after tax for the year was £568,000 (2006: £240,000). 6 LOSS PER SHARE The calculation for the basic loss per share is based upon the loss attributableto ordinary shareholders divided by the weighted average number of shares inissue during the year. Reconciliation of the loss and weighted average number of shares used in thecalculations are set out below: 2007 2006 RestatedBasic and diluted loss per shareLoss on ordinary activities before tax (£'000) (894) (796) Weighted average number of shares ('000) 94,415 90,924 Amount of loss per share (pence) (0.95) (0.88) The options and warrants are anti-dilutive so there is no diluted loss pershare. 7 INTANGIBLE FIXED ASSETS Group Mineral exploration licence costs £'000Cost and net book amountAt 1 April 2006 13,353Additions 3,245 At 31 March 2007 16,598 8 TANGIBLE FIXED ASSETS Group Long Motor Camp, field Office and Total leasehold vehicles and computer Mining asset property geological equipment under equipment construction £'000 £'000 £'000 £'000 £'000 £'000CostAt 1 April 2006 - 66 121 69 140 396Additions 1,263 - 155 251 58 1,727Disposals - - (13) - (2) (15)At 31 March 2007 1,263 66 263 320 196 2,108 DepreciationAt 1 April 2006 - 2 34 21 47 104Charge for the year - 1 63 30 50 144Disposals - - (4) - (1) (5)At 31 March 2007 - 3 93 51 96 243 Net book amount at 31 March 2007 1,263 63 170 269 100 1,865 Net book amount at 31 March 2006 - 64 87 48 93 292 Company Office and computer equipment £'000CostAt 1 April 2006 60Additions 15At 31 March 2007 75 DepreciationAt 1 April 2006 23Charge for the year 17At 31 March 2007 40 Net book amount at 31 March 2007 35 Net book amount at 31 March 2006 37 9 INVESTMENTS Company Investments in subsidiary undertaking £'000Cost and net book valueAt 1 April 2006 and 31 March 2007 9,611 At 31 March 2007 the subsidiary undertakings were: Subsidiary undertaking Country of Class of share Proportion Portion held by incorporation held held by Parent Company Group Crater Mountain Resources Limited British Virgin Islands Ordinary 68% 68% Larchland Limited* British Virgin Islands Ordinary 100% 100% Triple Plate Junction (PNG) Limited British Virgin Islands Ordinary 100% 100% Vietnam Resources Corporation Australia Ordinary 100% -(PSC Holdings) Pty Ltd (a subsidiary ofLarchland Limited)* Takara Limited (a subsidiary of Larchland Bahamas Ordinary 100% -Limited)* Terenure Limited (a subsidiary of Triple Plate Papua New Guinea Ordinary 100% -Junction (PNG) Limited) Triple Plate Junction Limited (a subsidiary of British Virgin Islands Ordinary 51% -Vietnam Resources Corporation (PSC Holdings) PtyLtd* Triple Plate Junction Africa Limited British Virgin Islands Ordinary 100% 100% Triple Plate Junction Zambia Limited (a Zambia Ordinary 90% -subsidiary of Triple Plate Junction AfricaLimited) Triple Plate Junction Smelting Limited (a Zambia Ordinary 90% -subsidiary of Triple Plate Junction ZambiaLimited) Vietnam Resources Corporation (PSC) Pty Ltd (a Australia Ordinary 100% -subsidiary of Vietnam Resources Corporation (PSCHoldings) Pty Ltd)* The only subsidiaries which traded during the year were Terenure Limited, TriplePlate Junction Limited and Triple Plate Junction Zambia Limited. All the othersubsidiaries were management companies incurring administrative expenses. \* These companies form the Larchland group. 10 DEBTORS Group 2007 2006 £'000 £'000 VAT recoverable 101 30Prepayments 114 77Other debtors 341 158 556 265 Company 2007 2006 £'000 £'000 Amounts owed by group undertakings 9,493 4,590VAT recoverable 20 30Prepayments 106 31Other debtors 120 63 9,739 4,714 11 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Group 2007 2006 £'000 £'000 Trade creditors 387 222Social security and other taxes 44 43Accruals and deferred income 239 129 670 394 Company 2007 2006 £'000 £'000 Trade creditors 113 132Social security and other taxes 9 8Other creditors - -Accruals and deferred income 99 63 221 203 12 FINANCIAL INSTRUMENTS The group uses financial instruments comprising only cash balances that arisefrom its operations. The main purpose of these financial instruments is toraise finance for the group's operations and new acquisitions. Short-term debtors and creditors Short-term debtors and creditors have been excluded from all the followingdisclosures, other than the currency risk disclosure. Currency risk The group operates within the UK, Papua New Guinea (PNG), Zambia and Vietnam andall transactions are denominated in sterling, PNG kinas, Vietnamese dong,Australian dollars or US dollars. As such the company is exposed to transactionforeign exchange risk. The mix of currencies and terms of trade is such thatthe directors believe that the company's exposure is minimal and consequentlythey do not specifically seek to hedge that exposure. At 31 March 2007, thecompany had cash balances of £119,000 (2005: £21,000) in US dollars, £24,000(2005: £125,000) in PNG kinas and £ 3,000 (2005: Nil) in Vietnamese dong. Mostof the group's funds are in sterling with only sufficient funds held overseas tomeet local costs. Funds are periodically transferred overseas to meet localcosts when required. Fair values The fair values of the group's instruments are considered not materiallydifferent to the book value. Liquidity risk Liquidity risk is the risk that the group will have insufficient funds to meetits liabilities as they fall due. The directors monitor cash flow on a dailybasis and at monthly board meetings in the context of their expectations for thebusiness to ensure sufficient liquidity is available to meet foreseeable needs. Interest rate risk The directors do not consider that the business is exposed to material interestrate risk as it has no borrowings. The group finances its operations throughcash reserves. The cash reserves held by the group during the year have negatedthe need to use any interest bearing short-term borrowings. The director'spolicy on surplus cash is to invest it safely to obtain the best rate of returnand ensure it is available for operations when necessary. The cash is investedwith 2 or 3 banks at any one time and accrues interest at a floating rate. 13 SHARE CAPITAL Company 2007 2006 £'000 £'000Authorised187,855,557 ordinary shares of 1p each 1,879 1,879 Allotted, called up and fully paid94,414,795 (2006: 94,414,795) ordinary shares of 1p each 944 944 14 SHARE PREMIUM ACCOUNT AND RESERVES Group Share premium Profit and account loss account Share option reserve £'000 £'000 £'000 At 1 April 2006 - as previously stated 16,969 - 4,895Prior year adjustment - 814 (814)At 1 April 2006 - as restated 16,969 814 4,081Retained loss for the year - - (894)Share option expense - 351 -At 31 March 2007 16,969 1,165 3,187 Company Share premium Profit and account loss account Share option reserve £'000 £'000 £'000 At 1 April 2006 - as previously stated 16,969 - 5,295Prior year adjustment - 814 (814)At 1 April 2006 - as restated 16,969 814 4,481Retained loss for the year - (568)Share option expense 351At 31 March 2007 16,969 1,165 3,913 15 SHARE-BASED PAYMENT The Group recognised a charge of £351,000 (2006: £415,000) in the profit andloss accounts in respect of its share-based payment plans. These are based on the requirements of FRS20 on share-based payments. Thevolatility measured at the standard deviation of expected share price return isbased on the average volatility of Triple Plate Junction Plc over the last 3years and the discount applied is 82%. For this purpose, the weighted averageestimated fair value for the share option granted was calculated usingBlack-Scholes option pricing model in respect of options. The expected life ofthe option was 10 years from the date of grant being the last exercise date. The Company has a share option scheme for all employees (including Directors).Options are exercisable at a price equal to the average market price of thecompany's shares on the date of grant. The vesting period is usually 3 years. Ifthe options remain unexercised after a period of 10 years from the date ofgrant, the options expire. Options are forfeited if the employee leaves theCompany before the options vest. Options granted 29 January 2003 The inputs into the Black-Scholes model are as follows: Number of options granted 70,000Weighted average share price 22.5Weighted average exercise price 15.0Expected volatility percent 66Expected life in years 10Risk free rate percent 3.98Expected dividend yields percent 0Weighted average fair value at grant date pence per share 14.85 Options granted 18 December 2003 The inputs into the Black-Scholes model are as follows: Number of options granted 1,080,000Weighted average share price 30.0Weighted average exercise price 30.0Expected volatility percent 66Expected life in years 10Risk free rate percent 4.58Expected dividend yields percent 0Weighted average fair value at grant date pence per share 17.94 Options granted 18 December 2003 The inputs into the Black-Scholes model are as follows: Number of options granted 1,200,000Weighted average share price 30.0Weighted average exercise price 29.5Expected volatility percent 66Expected life in years 10Risk free rate percent 4.58Expected dividend yields percent 0Weighted average fair value at grant date pence per share 17.76 Options granted 19 December 2003 The inputs into the Black-Scholes model are as follows: Number of options granted 1,200,000Weighted average share price 30.0Weighted average exercise price 29.5Expected volatility percent 66Expected life in years 10Risk free rate percent 4.62Expected dividend yields percent 0Weighted average fair value at grant date pence per share 17.77 Options granted 04 January 2004 The inputs into the Black-Scholes model are as follows: Number of options granted 2,520,000Weighted average share price 30.0Weighted average exercise price 39.5Expected volatility percent 66Expected life in years 10Risk free rate percent 4.68Expected dividend yields percent 0Weighted average fair value at grant date pence per share 16.26 Options granted 15 October 2004 The inputs into the Black-Scholes model are as follows: Number of options granted 280,000Weighted average share price 38.5Weighted average exercise price 39.5Expected volatility percent 66Expected life in years 10Risk free rate percent 4.64Expected dividend yields percent 0Weighted average fair value at grant date pence per share 22.71 Options granted 29 January 2005 The inputs into the Black-Scholes model are as follows: Number of options granted 1,100,000Weighted average share price 40.4Weighted average exercise price 29.5Expected volatility percent 66Expected life in years 10Risk free rate percent 4.47Expected dividend yields percent 0Weighted average fair value at grant date pence per share 26.03 Options granted 13 June 2005 The inputs into the Black-Scholes model are as follows: Number of options granted 475,000Weighted average share price 28.5Weighted average exercise price 29.5Expected volatility percent 66Expected life in years 10Risk free rate percent 4.2Expected dividend yields percent 0Weighted average fair value at grant date pence per share 16.65 Options granted 09 January 2007 The inputs into the Black-Scholes model are as follows: Number of options granted 1,400,000Weighted average share price 21.5Weighted average exercise price 21.0Expected volatility percent 61Expected life in years 10Risk free rate percent 4.96Expected dividend yields percent 0Weighted average fair value at grant date pence per share 12.36 Expected volatility for all the options granted was based on the weightedaverage volatility of the Company over the 3 years preceding the grant. 16 RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS Group 2007 2006 £'000 £'000 Restated Loss for the financial year (894) (1,221)Issue of shares - 11,735Issue costs - (815)Share Option reserve 351 415Minority interest - -Net decrease in shareholders' funds (543) 10,539Shareholders' funds at 1 April 22,800 12,261Shareholders' funds at 31 March 22,257 22,800 17 NET CASH OUTFLOW FROM OPERATING ACTIVITIES 2007 2006 £'000 £'000 Operating loss (1,202) (806)Loss on disposal of assets 10 -Depreciation 144 81(Increase)/decrease in debtors (291) 52Share option expense 351 415Increase in creditors 276 167Net cash outflow from operating activities (712) (506) 18 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS 2007 2006 £'000 £'000 Increase in cash in the year 2,124 539(Sale)/purchase of short term deposit liquid resources (7,500) 7,500Change in net funds during the year (5,376) 8,039Net funds at 1 April 9,284 1,245Net funds at 31 March 3,908 9,284 19 ANALYSIS OF CHANGES IN NET FUNDS At 1 April Cash flow At 31 March 2006 2007 £'000 £'000 £'0000 Cash in hand and at bank 1,784 2,124 3,908Liquid Resources 7,500 (7,500) - 9,284 (5,376) 3,908 20 CAPITAL COMMITMENTS The Group had capital commitments of £500,000 at 31 March 2007, relating tolicence expenditure. (2006: None) 21 CONTINGENT LIABILITIES There were no contingent liabilities at 31 March 2007 or 31 March 2006 otherthan contingent deferred consideration estimated at £10 million (2006: £10million) which becomes payable if either of the following events crystallise: a. any member of the Larchland group having discovered a proven deposit of atleast three million ounces of gold or gold equivalent and such deposit havingbeen proven to be capable of extraction by bulk-mining methods; or b. a bona fide takeover offer having been made for the entire issued sharecapital of the company which values the company at no less than £133,333,333 In the event either of the above events crystalise any liability would besettled by further payment in the form of a share issue equal to the lesser of: • 33,333,333 consideration shares of 1p each issued at the market valueat the date of issue; or • such number of consideration shares as will be equal to 7.5% of thenumber of ordinary shares in issue. As the likelihood of these events happening is presently considered remote thedeferred consideration has not been recognised as a liability. The contingency arose when the company acquired the Larchland Group from thevendors in the year ended 31 March 2005 and was part of the terms of the saleand purchase agreement. 22 RELATED PARTY TRANSACTIONS During the year the group entered into transactions with the followingorganisations, which were related by virtue of common directors and officers: During the year Namesco Limited, a company in which director D J Lees was adirector and shareholder, charged the company £5,000 (2006: £4,000) for ITservices. Included in other creditors was an amount of £49,000 (2006: £49,000) due toThornaby Limited, a company controlled by a director, I R Gowrie Smith. During the year Rift Oil Plc, a company in which directors I Gowrie-Smith and DJ Lees are directors and shareholders was charged an amount of £44,000 (2006:Nil) for office management services. The balance was outstanding at the yearend. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Tethyan Resources