Settlement of Contingent Liability

Weatherly International plc ('Weatherly' or the 'Company')

Settlement of Contingent Liability

In November 2008, Weatherly became aware of a potential claim in the amount of £3.5 million against the Company from a third party in relation to an alleged previously unknown financial obligation. In pursuance of that claim, Barclays Bank plc issued proceedings against Weatherly on 18 September 2009.

Weatherly is pleased to announce that it has reached a full and final settlement with Barclays Bank plc of all claims and counterclaims relating to the litigation. Weatherly has made a payment to Barclays Bank plc without admission of liability at a level which is significantly below the value of the claim against the Company and which the Directors consider favourable to secure legal certainty.

Rod Webster, CEO of Weatherly, commented:

"I am pleased that we have been able to reach a settlement which removes a significant contingent liability from our balance sheet at an important time for the Company while we seek to finalise our financing plans and other arrangements for the restart of our mining operations."

For further information please contact:

Rod Webster, Chief Executive Officer Weatherly International Plc

+44 (0) 20 7917 2989

Richard Greenfield, Ambrian Partners Limited

+44 (0) 20 7634 4710