Resources Update

22 February 2012

Strategic Natural Resources Plc

("SNR" or the "Company")

Resources update

The Board of SNR is pleased to report on progress being made in South Africa by its 74% owned subsidiary, Elitheni Coal (Pty) Ltd ("Elitheni").

The Company has completed its internal assessment of the resource update based on the 2011 drilling season on Elitheni's Phase 1-4 exploration areas. The Company is pleased to report that it has identified an additional circa 53 million tonnes of coal resource which will be added to the existing 150 million tonnes modelled and independently verified by Golder Associates in 2010. The additional 53 million tonnes of coal based on the 2011 drilling season comprises approximately 883,000 tonnes on a measured basis, 21 million tonnes on an indicated basis and 31.8 million tonnes on an inferred basis. Although this resource update comprises an internal assessment, the Company has engaged Golder Associates to update the Competent Persons Report ("CPR") accordingly and expect these numbers to be verified during the second quarter of this year.

The Company is also making good progress on the commencement of its Phase 5 exploration programme. Given the enormity of the area (c. 119,000Ha in total), the Company has adopted an initial strategy of tracing and marking all outcrops and old shaft entrances which will guide the invasive drilling program. In the first week of exploration, the Company has already confirmed 14 such outcrops and informally accessed shaft entrances on only 5 of the 299 farms in Phase 5. An update on the progress in the Phase 5 exploration area will be included in the updated CPR.

In addition, the Company is pleased to report that it is engaged in active negotiation on the finalisation of its funding programme and is intent on finalising the best deal for all shareholders. The funding programme is being structured in order to allow SNR to deliver the first coal shipments to Trasteel by the middle of 2012. A further update on the funding programme will be made at the appropriate time.

David Nel, CEO for SNR said: "We are pleased to provide this brief insight into these promising results identifying an increase of approximately 33% in our resource calculation. The approximate 200 million tonne coal resource we now estimate exists on only 8,500 hectares, which is less than 5% of our total 184,000 hectare rights area. Mr. Connan Hempel, our senior geologist, and his team have done a superb job drilling in arduous conditions. We are grateful to our highly qualified and committed geological and drilling team for the results they have been able to deliver in 2011."

The information regarding Elitheni's coal reserves in this announcement has been reviewed and approved by Mr. Connan Hempel, Elitheni's Senior Geologist with over 13 years experience in the field of Geology and a registered Professional Natural Scientist with the South African Council for Natural Scientific Professions (SACNASP), in the category, Geological Sciences. Mr Hempel is a qualified person as defined in the London Stock Exchange's Guidance Note for Mining and Oil and Gas Companies.

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