Resource Update

25 October 2012

Strategic Natural Resources plc

("SNR" or the "Company")

Resource Update

SNR is pleased to announce an increase in the SAMREC compliant coal resource of its 74% owned subsidiary, Elitheni Coal (Pty) Ltd ("Elitheni") of 77%, taking the measured, indicated and inferred resource from 150.1Mt to 266.29Mt.

In July 2010, the Company announced a gross in situ resource of 150.1Mt, followed by an update in February 2012, where the Company believed based on a conservative internal assessment, there would be a minimum of 53Mt of coal added to this figure, which would have taken the total resource to 203.1Mt. The Company subsequently engaged Minxcon in July 2012 to have this figure independently verified. Minxcon was selected as the competent person to verify the estimates given its resource modelling ability, as well as its ability to assist in reserve calculations according to the SAMREC code and provide independent technical expertise to the Company. The results of the resource update show that the actual increase in the resource is 116.19Mt, taking the total to 266.29Mt. Minxcon have assessed the additional drilling areas using a method known as Kriging under the SAMREC code, which assesses the data set as a whole through a process of inter-correlation between boreholes.

The total area covered by the Minxcon resource estimate is 10,471ha out of Elitheni's total prospecting and mining rights area of 184,000ha and relates to additional drilling of 13,106.57m. A summary of the results of the resource update is as follows:

Further to the announcement made by SNR on 17 October 2012, this constitutes the first results of the CPR update by Minxcon. The updated reserve estimate for the Elitheni coalfield will be published in the near future.

David Nel, SNR's Chief Executive, said; "I am delighted to report such a substantial increase to the coal resource at the Elitheni coalfield. This represents significant additional potential value for shareholders, notwithstanding that this represents less than 6% of Elitheni's total prospecting and mining rights area and substantiates that we are developing not just a coal mine but a coalfield."

Competent Person

The information regarding Elitheni's gross in-situ coal resources, in this announcement has been reviewed and approved by Mr Charles Muller, Resource Director and full time employee of Minxcon, the Company's consultant geologists. Mr Muller is a Member of the Geological Society of South Africa (GSSA) and the South African Council for Natural Scientific Professions (Pr Sci Nat) and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the type of activity which he is undertaking to qualify as a Competent Person as defined in the June 2009 Edition of the AIM Note for Mining and Oil & Gas Companies. Mr Muller consents to the inclusion in the announcement of the matters based on their information in the form and context in which it appears and confirms that this information is accurate and not false or misleading.

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For further information about Strategic Natural Resources plc please visit www.snrplc.co.uk