Preliminary Results

MAPLE ENERGY PLC

("MAPLE" OR THE "COMPANY")

Preliminary results

for the twelve months ended 31 December 2011

Maple Energy plc (AIM: MPLE, LIMA: MPLE), an integrated independent energy company with assets and operations in Peru, today announces its preliminary financial results for the twelve months ended 31 December 2011. Highlights are set forth below:

Key Financial Highlights for the twelve months ended 31 December 2011

·; Revenues increased to US$87.0 million in 2011 compared with US$71.2 million in 2010 primarily due to increases in international hydrocarbon prices

·; Gross profit for 2011 was US$28.6 million compared with US$21.1 million in 2010

·; Adjusted EBITDA (defined below) for 2011 was US$16.7 million compared to US$11.8 million in 2010

·; Depreciation and amortisation expense was US$4.8 million in 2011 compared with US$6.9 million in 2010

·; Net profit after taxes was US$12.7 million in 2011 (US$0.081 per share) compared to US$0.2 million in 2010 (US$0.001 per share)

Other Financial Highlights for the twelve months ended 31 December 2011

·; Made additional investment in the Ethanol Project during 2011 totalling US$84 million

·; The second, third, and fourth disbursements under the senior secured debt financing for the Ethanol Project (the "Ethanol Project Debt Financing") of US$40 million, US$25 million, and US$11.5 million occurred in January, July, and October 2011, respectively

·; Maple entered into a US$6.0 million, three-year credit facility with Banco Internacional del Peru (" Interbank") in July 2011 and drew down the full available amount to fully repay the outstanding indebtedness of an existing medium-term facility with Banco de Credito del Peru

·; Renewed in July 2011 a stand-by letter of credit from Interbank in the amount of US$12.5 million to guarantee the funding of any future cost over-runs or other necessary expenditures for the Ethanol Project in excess of budgeted amounts

·; In October 2011, Maple executed lease financing agreements with Leasing Peru S.A. in the amount of US$3.5 million and Banco Financiero in the amount of US$4.0 million

Ethanol Project Highlights (Maple Etanol S.R.L. and Maple Biocombustibles S.R.L.)

·; The 36-kilometer, 60-kilovolt transmission line to interconnect with the national power grid was completed and placed into service during May 2011

·; 6,006 hectares were planted in the plantation by the end of 2011, and over 6,500 hectares have been planted to date

·; As of the fourth quarter of 2011, the Macacara and El Arenal pump stations were both completed and in operation extracting water from the Chira River for delivery through a pipeline and canal system to the 660,000 cubic metre Macacara Reservoir and the 110,000 cubic metre El Arenal Reservoir

·; As of the fourth quarter of 2011, the approximate 43-kilometre water pipeline system that forms part of the main water delivery system was completed and in service

·; The drip irrigation systems for the Ethanol Project were installed in approximately 7,129 hectares of the plantation, including the systems for the seed cane farm, as of year-end

·; The Company commenced harvesting and processing its sugar cane at the end of March 2012

·; Early in April 2012, Maple confirmed the substantial completion of the Ethanol Plant except for certain works primarily related to the commissioning of the 37-megawatt power plant, which is substantially completed and expected to be fully commissioned and placed into operation during the middle of 2012

·; A substantial portion of the ethanol storage, loading, and shipping facility, including the storage facility which is now available for use, is completed, and the entire facility is expected to be placed into operation in the second quarter of 2012

·; Total Ethanol Project costs are currently estimated in the range of US$275 million to US$280 million, including interest paid during construction, a debt service reserve account, and certain value-added taxes, and excluding assets acquired under finance leases

·; In April 2012, Maple commenced the production of ethanol

Hydrocarbon Production, Refining, and Marketing Highlights (Maple Gas Corporation del Peru S.R.L.)

·; Refinery feedstock averaged approximately 1,935 barrels per day ("bpd") in 2011 compared to 2,073 bpd in 2010, consisting of natural gasolines supplied by Aguaytia Energy del Peru S.R.L. ("Aguaytia Energy") and crude oil from Maple´s oilfields

·; Average daily sales of refined products were 1,868 bpd in 2011 compared to 2,004 bpd in 2010

·; Average daily crude oil production in December 2011 was approximately 485 bpd compared with approximately 505 bpd in December 2010

·; Performed six fracture stimulation works on existing wells in the Agua Caliente oilfield and two such works in the Maquia oilfield. As a result of these works, Agua Caliente and Maquia production increased with additional production of approximately 72 bpd and 23 bpd on average, respectively, during the last six months of 2011

Board Changes

·; On 11 January 2012, Mr. Francisco Mesquita Neto was appointed as an independent, non-executive director on the Company´s Board of Directors

Nigel Christie, Chairman of Maple, commented today: "We are delighted to be producing ethanol, and enormous credit should go to management and employees who have worked tirelessly to complete the largest ethanol project in Peru. It is however only the beginning, and this year will be very important to Maple as we strive to become one of the lowest-cost producers of fuel-grade ethanol globally.

We are also very pleased with the results of our hydrocarbon business where we achieved a substantial increase in profitability in 2011 as compared to 2010."

For further information, please contact

Maple Energy plc (+ 51 1 611 4000)

Nigel Christie, Chairman of the Board and Independent Non-Executive Director

Rex W. Canon, Chief Executive Officer, President, and Executive Director

Cenkos Securities plc

Jon Fitzpatrick +44 20 7397 8900

Ken Fleming +44 131 220 6939

Mirabaud Securities Ltd (+44 20 7321 2508)

Peter Krens

Rory Scott

Buchanan (+44 20 7466 5000)

Mark Edwards

Ben Romney

Earnings Call

Rex W. Canon, Chief Executive Officer, and James L. Pontiff, Chief Financial Officer, will host a conference call to present and discuss the Company's results for the year ended 31 December 2011 on Thursday, 3 May 2012 at 3:00 pm BST (9:00 a.m. Peruvian time). The call can be accessed by dialling: 020 3140 0693 (within the UK), 1 631 510 7490 (within the US) or +442031400693(International including Peru). Call participants will be asked for their full name, company details, and pass code. The pass code for this call is: 605262#. A recording of the conference call will be available shortly thereafter on Maple's website at www.maple-energy.com.

2011 Operating Results

For the year ended 31 December 2011, revenues increased to US$87.0 million compared with US$71.2 million in 2010. The Company's gross profit for the year ended 31 December 2011 was US$28.6 million compared with US$21.1 million for the year ended 31 December 2010.

Maple realised a net profit after taxes of US$12.7 million in 2011 (US$0.081 per share) compared to US$0.2 million in 2010 (US$0.001 per share). Adjusted EBITDA (as defined below), a key performance indicator for measuring Maple's underlying financial operating performance, was US$16.7 million in 2011 compared to US$11.8 million in 2010. The following items, after excluding depreciation and amortisation, contributed to a higher Adjusted EBITDA in 2011 compared to Adjusted EBITDA in 2010: higher gross profit by US$6.3 million offset by a gain on sale of drilling rig recognised in 2010 by US$1.8 million.

The table below shows Maple's (i) historical consolidated financial data for the year ended 31 December 2011; (ii) historical consolidated financial data for the year ended 31 December 2010, and (iii) other financial and operating data.

 (1) Adjusted earnings before interest, taxation, depreciation, and amortisation ("Adjusted EBITDA") is calculated as operating income plus depreciation, amortisation, Base Logistica Ucayali ("BLU Camp") impairment, and employee termination cost.  

Shown below is a reconciliation of operating income to Adjusted EBITDA:

(1) Unaudited.

Outlook for 2012

Maple expects 2012 to be one of the most important years in its history with the commencement of the harvesting of sugar cane from Maple's plantation and the start-up of the Ethanol Plant in March 2012. These events as well as the commencement of the production of ethanol in April 2012 marked key milestones for the Company in its initiative to develop the largest ethanol project in Peru with the goal of being a low-cost, globally competitive ethanol producer. These milestones are an important part of the Company's strategy of building a leading integrated energy company in Peru.

The timing and completion of the Company's 2012 operating and investing activities are subject to a number of factors including availability of services and equipment as well as the obtention of governmental approvals. As a result of these and other factors, Maple may increase or decrease planned activities or priortise certain projects over others during 2012. The Company's capital programme for 2012, which includes the execution of the key initiatives outlined below, is currently expected to be primarily funded through the Company's available cash from operations, the remaining disbursements under the Ethanol Project Debt Financing, and additional working capital facilities to support the operations of the Company.

Ethanol Business

Agricultural Development and Operations

As of today, Maple has installed drip irrigation tape in approximately 7,280 hectares, including the seed cane farm, and planted over 6,500 hectares of the main estate. The Company currently expects to achieve a plantation size of over 7,000 hectares this year. During 2012, which will include a "ramp up" period during the initial phase of operations, Maple currently expects to harvest and process approximately 900,000 tonnes of sugar cane from its plantation with an expected average yield of approximately 150 tonnes of sugar cane per hectare on an annual basis.

The Company plans to begin the development of the second phase of the plantation later this year with a goal of further expanding the plantation. The second phase of the development of the Company's plantation includes land clearing and preparation works, the installation of additional main water delivery and drip irrigation systems, the planting of additional sugar cane, and the purchase of more rolling stock. Maple will continue evaluating new and promising sugar cane varieties suitable for ethanol production, mechanized harvesting, and the specific climate of the area near the Ethanol Project with the aim of increasing the yields of sugar cane production and ethanol on a per hectare basis.

A key part of the Company's strategy for 2012 and 2013 is to secure additional sugar cane in order to maximise the utilisation of the installed processing capacity of the Ethanol Plant. In addition, Maple will continue evaluating other opportunities for ethanol projects in Peru in order to expand its ethanol business unit.

Industrial Development and Operations

The Company has achieved the substantial completion of the Ethanol Plant except for certain works primarily related to the commissioning of the electric power generation facilities. The cane reception and preparation equipment, the cane and juice extraction equipment, the bagasse conveyors, and the juice treatment equipment supplied by Uni-systems, Inc. ("Uni-systems") have been commissioned and placed into service. The steam generation facilities supplied by Uni-sytems and Allsoft Engenharia e Informatica Industrial Limitada (also known as "Mitre") as well as the fermentation, distillation, and dehydration equipment supplied by Praj Industries Limited have also been commissioned and placed into service. The amounts of sugar cane harvested and processed as well as ethanol produced are expected to gradually increase during the second quarter of 2012 during the initial phase of operations. It is expected that on average more than 20 gallons of ethanol will be recovered from each tonne of sugar cane delivered to and processed at the Ethanol Plant.

The power generation facilities supplied by Siemens, which are not necessary to produce ethanol, are expected to be fully commissioned and placed into operation during the middle of 2012. Until the power generation facility is started up and begins producing sufficient electricity for the Ethanol Project, Maple will purchase electrical energy required for its agricultural and industrial operations from third party suppliers. The Company plans to install separation equipment at the Ethanol Plant to extract sugar cane leaves for use as fuel for the steam generation facilities in addition to bagasse, resulting in additional steam available for power generation. Maple expects to complete the installation and commissioning of the separation equipment in second half of 2012.

Sales and Marketing

The initial production of ethanol is expected to be sold into the local market and/or stored for later sale into the export market. Ethanol for the export market will be stored at the ethanol storage, loading, and shipping facility, which is being developed by Penta Tanks Terminals S.A. ("Penta"). A substantial portion of the facility, including the storage facility which is now available for use, is completed, and the entire facility is expected to be placed into operation in the second quarter of 2012. Exports of ethanol pursuant to the Sales Agreement with Mitsui are planned to begin during the middle of this year, and the Company currently expects that such export sales in 2012 will be destined primarily to the market in the European Union.

Hydrocarbon Production, Refining, and Marketing Business

The Company expects to maintain its cash flow from hydrocarbon operations through the continued optimisation of its hydrocarbon production, refining, and marketing activities and the continued savings generated by the cost reduction programmes implemented in 2009 and 2010. Based on the success of the fracture stimulation works performed on six oil wells in Agua Caliente and two oil wells in Maquia in 2011, the Company currently plans to perform an additional 12 well fracture stimulations in the Agua Caliente and Maquia oilfields during 2012 with the aim of increasing oil production for delivery to the Pucallpa refinery. Maple does not plan to drill any additional wells in its oilfields during 2012.

In order to advance its shale gas opportunity in Block 31-E, Maple is seeking to identify a potential joint venture partner with relevant industry experience in the development of unconventional hydrocarbon resources such as shale gas. By joint venturing with an industry partner, the Company plans to utilise such partner's expertise in further evaluating and pursuing the opportunity while also substantially reducing the Company's capital requirements by having the joint venture partner fund a substantial portion of the costs.

The execution of the 2012 operating plan by Maple's dedicated team of employees is expected to add significant value to the Company. By commencing commercial operations of the Ethanol Project and optimising the hydrocarbon production and refining activities, Maple will further its mission of being a leading integrated energy company in Peru. Maple appreciates the support of its shareholders and other stakeholders and looks forward to a successful 2012.

Material Factors Affecting Operating Results

Maple's results of operations have historically been materially impacted by certain factors, including (i) the international price of oil, (ii) volumes of hydrocarbons produced by Maple and Aguaytia Energy and delivered as feedstock to the Pucallpa refinery, and (iii) the level of the Company's total operating and administrative costs. These factors are operational or financial in nature, and certain of these factors are beyond the Company's ability to control them. Set forth below is a brief description of each of these factors and its impact on Maple's results of operations in 2011.

Commodity Prices

The international price of crude oil impacts the market prices in Peru and therefore the price for which Maple sells its refined products. As a result, increases or decreases in the international price of oil and other commodities can materially impact Maple's overall revenues. The international price of crude oil increased from US$79 per barrel during 2010 to US$95 per barrel during 2011 based on the average of spot prices for West Texas Intermediate crude oil. As a result of these higher crude oil prices, Maple was able to realise higher sales prices and gross profit from the sale of its refined products in 2011 as compared to 2010. Specifically, Maple generated an average of US$41.90 of gross profit per barrel of refined product sold in 2011 compared with an average of US$28.82 in 2010. This increase in gross profit per barrel of refined product sold materially and positively impacted Maple's 2011 financial results.

Refinery Feedstock

Maple's primary source of revenues during 2011 was derived from its sales of hydrocarbons and refined products produced and sold from the Pucallpa refinery. The volume of refined products that the Pucallpa refinery is able to produce and sell to customers impacts the Company's cash flow and results of operations. The Pucallpa refinery's ability to produce refined products is directly impacted by the volume of feedstock that is delivered to the facility for refining. Since Maple and Aguaytia Energy currently provide all of the feedstock for the Pucallpa refinery, a decrease in the volumes of this feedstock due to declining production levels, or otherwise, can have a material adverse impact on the Company's results of operations.

Total refinery feedstock volumes delivered to the Pucallpa refinery decreased from an average of 2,073 bpd in 2010 to an average of 1,935 bpd in 2011. The reduction in feedstock was largely a result of production declines in the volumes of natural gasolines produced by Aguaytia Energy and lower production levels from the Maquia and Pacaya oilfields offset by increased production from the Agua Caliente oilfield. The most significant reduction in feedstock volumes relates to natural gasolines produced by Aguaytia Energy which were affected by normal production decline as well as lower consumption of residual gas in the power plant. Additional volumes of hydrocarbons may be produced to offset normal production declines or increase the total feedstock delivered to the Pucallpa refinery with continued successful fracture stimulations in the producing oil fields. If Maple is unable to increase the volume of feedstock from its own internal production activities, or if the refinery is unable to source additional feedstock from third parties, including Aguaytia Energy, the total volume of refined products produced and sold will continue to decline, which could materially impact future results of operations of its hydrocarbon production, refining, and marketing business.

Cost of Sales

Cost of sales for the year ended 31 December 2011 was US$58.4 million compared to US$50.1 million in 2010. Cost of sales was higher in 2011 primarily due to increases in the cost of natural gasolines purchased from Aguaytia Energy and royalty payments paid to the Peruvian government. The most significant factor increasing Maple's cost of sales was the cost of the natural gasoline purchased from Aguaytia Energy, which increased due to higher commodity prices during 2011 in comparison with the previous year. During 2011, the average cost per barrel of natural gasolines purchased was US$70.66 compared to an average cost per barrel of US$52.09 during 2010. Another significant factor affecting cost of sales was the royalty paid by Maple to the Peruvian government for its production from its producing fields. During 2011, Maple's total royalty payments increased to US$6.4 million compared to US$4.9 million in 2010 as a result of higher commodity prices.

Administrative Expenses

Administrative expenses decreased to US$12.8 million in 2011 compared to US$14.8 million in 2010. The decrease in administrative expenses can primarily be attributed to: a) lower amortisation due to higher proved producing reserves by US$0.8 million, b) an exchange rate gain of US$0.6 million, and c) the cost reduction programme implemented in 2010.

The Company's subsidiaries had 460 employees as of 31 December 2011 compared to 343 on 31 December 2010. Maple Gas del Peru S.R.L. ("Maple Gas") reduced its employee headcount from 250 as of 31 December 2010 to 249 as of 31 December 2011, whereas Maple Etanol S.R.L. ("Maple Etanol") increased its employee headcount from 93 as of 31 December 2010 to 211 as of 31 December 2011.

Non-Operating Results

Finance costs decreased from US$4.1 million in 2010 to US$1.7 million for 2011. This decrease was primarily a result of the change in the fair value of the preferred shares derivative of US$1.8 million due to the change in valuation of Maple Energy plc shares and lower finance charges under finance leases by US$0.6 million.

Forward-Looking Statements

Except for the historical information contained in this announcement, statements contained in this document, particularly those regarding possible, projected, or assumed future performance and results, including growth outlook, forecasted economics, operations, production, contracting, costs, prices, earnings, returns and potential growth, are or may include forward-looking statements. Such statements relate to future events and expectations and as such involve known and unknown risks and uncertainties. These risks and uncertainties include, among other things, market conditions, the price of hydrocarbons and ethanol, weather risks, economic and political risks, and other factors discussed in Maple Energy plc's Admission Document available on the Company's website (www.maple-energy.com). Forward-looking statements are not guarantees of future performance or an assurance that Maple's current assumptions and projections are valid. Actual results, actions, and developments may differ materially from those expressed or implied by those forward-looking statements depending on a variety of factors. Furthermore, any forward-looking statements presented are expressed in good faith and are believed to have a reasonable basis as of the date of this announcement for the year ended 31 December 2011. These forward-looking statements speak only as at the date of this announcement, and Maple Energy plc does not assume any obligation to update any forward-looking statements contained herein, whether as a result of new information, future events, or otherwise.

 CONSOLIDATED INCOME STATEMENT

for the year ended 31 December 2011

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the year ended 31 December 2011

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as at 31 December 2011

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the year ended 31 December 2011

CONSOLIDATED STATEMENT OF CASH FLOWS

for the year ended 31 December 2011

1. BASIS OF PREPARATION

The consolidated financial information presented in this preliminary report has been prepared in accordance with the Group's accounting policies under IFRS as adopted for use in the EU on a basis consistent with prior years (except as outlined in Note 4 below) and on an historical cost basis except for derivative financial instruments, available for sale financial assets and biological assets that have been measured at fair value. The consolidated financial information is presented in U.S. dollars, and all values are rounded to the nearest thousand (US$'000), except where otherwise indicated.

2. CORPORATE INFORMATION

Maple Energy plc ("the Company") was incorporated in the Republic of Ireland on 18 October 2006. On 12 February 2007, the Company re-registered as a public limited company. The Company is domiciled in the Republic of Ireland.

Prior to 30 November 2006, the group of companies (the "Maple Group"), which now form the consolidated financial statements of Maple Energy plc and its subsidiaries (collectively, "Maple" or the "Group"), was organised as two separate groups of companies under common control: The Maple Companies, Limited ("MCL") and The Maple Gas Corporation del Perú Ltd ("Maple BVI"), both companies registered in the British Virgin Islands. Effective 30 November 2006, a series of transactions were undertaken whereby these entities were re-organised such that MCL acquired Maple BVI and its related entities. MCL also acquired various non-controlling interests. This business combination was accounted for using the purchase method of accounting.

On 7 February 2007, the Company entered into a share exchange agreement (the "Share Exchange Agreement") with the shareholders of MCL, whereby in return for the issuance of 48,581,113 Ordinary Shares of US$0.01 each, the Company acquired 1,619,371 shares of US$0.01 each of MCL, representing its entire issued shared capital at that time, and became the ultimate holding company of the Maple Group. This group re-organisation was accounted for using the pooling of interests method. The purpose of this re-organisation was to implement a more efficient group structure to facilitate the raising of capital on the Alternative Investment Market ("AIM") of the London Stock Exchange.

3. GOING CONCERN

The Group is currently in the advanced stages of executing the Ethanol Project.

The Group has prepared forecasts and cash flow projections which have been prepared in detail through to 30 September 2013 and support the conclusion of the Directors that the Group will be able to operate as a going concern within the level of its current resources and those anticipated in the future.

The cash flow projections are dependent on the Group substantially achieving its forecast EBITDA. These projections are dependent on the currently envisaged timing of first sale of ethanol, the future price of ethanol, sugar cane yields and other factors. On the Group's oil and gas activities, the assumptions are also dependent on the price of oil over the period of the projections in addition to the Group's continued management of costs.

After making enquiries and considering the uncertainties described above, the Directors are currently confident that the Group and the Company have and will continue to have adequate resources to continue in operation for the foreseeable future. For these reasons, the financial statements of the Group and the Company have been prepared on a going concern basis.

4. ACCOUNTING POLICIES

IFRS and IFRIC Interpretations adopted during the financial year

The Group has adopted the following new and amended IFRS and IFRIC interpretations in respect of the 2011 financial year-end:

There were no significant changes necessary arising from the above amendments to the Company during the year.

5. SEGMENT INFORMATION

Operating segments

For management purposes, the Group is organised into business units for which it may earn revenues and incur expenses and has three operating segments as follows:

- Exploration, Production and Marketing

- Ethanol

- Other and Corporate

The Chief Operating Decision Maker (hereinafter "CODM") of Maple reviews the information of these segments on an individual basis. Ethanol mainly refers to Maple Etanol S.R.L. and Maple Biocombustibles S.R.L. which are separate entities that manage the Ethanol Project. Exploration, Production and Marketing are managed through Maple Gas Corporation del Peru S.R.L. ("Maple Gas") and Acer Comercial S.R.L. ("Acer"), both separate entities, information for which is reviewed by the CODM together. The other segment includes investment holding companies.

Reportable segments

The Company considers that the operating segments and the Reportable Segments in the financial statements are the same. For the operating segments mentioned above, Maple presents the following information in accordance with IFRS 8:

·; Segment Revenue: the Company only includes revenues that are directly attributed to a specific segment together with the relevant portion of revenue that can be allocated to it on a reasonable basis.

·; Segment Result: The Company includes operating income/(loss) resulting from the operating activities of the specific segments. Finance revenue, finance costs and income tax expenses are also included in the specific operating segment.

·; Segment Assets: Management includes all assets used in the operating activities of the specific segment, property, plant & equipment, assets held for sale, and intangible assets. Goodwill is presented in a separate line of the corresponding segment.

·; Segment Liabilities: Management includes all liabilities incurred in the operating activities of the specific segment.

1. Inter-segment revenues are eliminated on consolidation.

2. Inter-segment loans are eliminated on consolidation.

1. Inter-segment revenues are eliminated on consolidation.

2. Inter-segment loans are eliminated on consolidation.

Geographical information

Revenues from external customers

All external customers are located in Peru. Revenue from one customer amounted to US$15,604,000 (2010: US$11,965,000) arising from sales by the exploration, production and marketing segment.

Non-current assets

Non-current assets are allocated based on where the assets are located:

Non-current assets for this purpose consist of property, plant and equipment, other intangible assets, exploration and evaluation assets and biological asset.

6. INCOME TAX

(a) Income tax regulations

The Company is subject to Irish tax regulations. Subsidiaries incorporated in the British Virgin Islands are not subject to income tax. Peruvian subsidiaries of the Company are subject to the Peruvian Tax System.

Corporation tax in Ireland is 12.5% on trading activities and 25% on non-trading activities. Exploitation activities of hydrocarbons in Blocks 31-B and 31-D are subject to the Peruvian tax regulations in force as of 30 March 1994 (30%). Exploration activities in Block 31-E are subject to the Peruvian tax regulations in force as at 6 March 2001 (22%). Refining and commercial activities of hydrocarbons are subject to the current Peruvian tax regime (30%).

(b) Income tax

(c) Movement of deferred income tax

At 31 December 2011 and 2010, there was no recognised deferred tax liability for taxes that would be payable on the unremitted earnings of certain of the Group's subsidiaries as:

·; the Group is able to control the timing of the reversal of the temporary difference; and

·; the Group has determined that undistributed profits of its subsidiaries will not be distributed in the foreseeable future.

The Group has recognised a deferred income tax asset related to exploration costs and tax losses expected to be utilised in 2012 and 2013 based on the current year forecasts and projections and on the basis that the utilisation of tax losses carry forward commenced in 2010.

(d) Reconciliation between income tax credit and the profit/(loss) before tax multiplied by the standard tax rate

7. EARNINGS PER SHARE

Basic earnings per share amounts are calculated by dividing net profit for the year attributable to equity holders of the parent by the weighted average number of Ordinary Shares outstanding during the year. Diluted earnings per share amounts are calculated by dividing the net profit for the year attributable to ordinary equity holders of the parent by the weighted average number of Ordinary Shares outstanding during the year plus the weighted average number of Ordinary Shares that would be issued on the conversion of all the dilutive potential Ordinary Shares into Ordinary Shares.

The following reflects the loss and share data used in the basic and diluted loss per share computations:

To calculate earnings per share amounts for the discontinued operation, the weighted average number of ordinary shares for both basic and diluted amounts is as per the table above. The following table provides the loss figures used: