Deutsche Rohstoff AG: Weiter starkes Wachstum erwartet

65 cents proposed dividend for 2017/preliminary quarterly figures released

Mannheim. During the financial year 2017 Deutsche Rohstoff Group generated revenues of EUR 53.7 million (previous year: EUR 9.2 million), an EBITDA of EUR 36.1 million and a net profit of EUR 7.7 million (all numbers according to German GAAP and audited). Management and supervisory board will propose a further increased dividend of EUR 0.65 per share (previous year: EUR 0.60) to the Annual General Meeting, which will be held in Mannheim on 10 July 2018.

For the full year 2018, management expects a revenue of EUR 75 to 85 million and an EBITDA of EUR 65 to 70 million. This forecast is based on the assumption of an annual average oil price of USD 65/bbl and a EUR/USD exchange rate of 1.22. The forecast includes reduced revenues and profits from the recently announced sale of Salt Creek Oil & Gas which will only contribute to revenues until the end of May. Sales in the US oil and gas business are reported after deduction of minority interests, royalties and production-related taxes. For the definition of the term EBITDA please refer to DRAG's homepage.

In the first quarter of 2018, the Group achieved sales of EUR 15.6 million, an EBITDA of EUR 10.6 million and a net profit of EUR 1.1 million according to preliminary figures (German GAAP, unaudited). It should be noted that sales of around EUR 2 million can only be booked by Elster Oil & Gas in the second quarter. Elster markets its own oil and due to the limited offtake capacity of the contractor, to which Elster sells the oil, the company did not sell the full entitlement of production during the 1st quarter. The missing quantities will be delivered in the coming months. Due to high initial production, there may be corresponding delays in the first few months.

Full quarterly figures will be released on 9 May.

Thomas Gutschlag, CEO of Deutsche Rohstoff, commented: 'In 2017, we significantly accelerated our growth and invested strongly in new drilling in the US. Particularly from the second quarter of 2018 on, these high investments will have an impact on sales and earnings. We are facing another year of strong growth, which is also reflected in our forecast. The sale of Salt Creek and the expected cash flows from Elster provide us with sufficient cash and cash equivalents to continue to invest in the expansion of our US business. '

The Consolidated Financial Statement of the Deutsche Rohstoff Group is now available on the Company's homepage, as well as the Annual Report 2017. Currently only a German version is available, the English version will follow shortly.

Mannheim, 7 May 2018

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Deutsche Rohstoff identifies, develops and divests attractive resource projects in North America, Australia and Europe. The focus is on the development of oil and gas opportunities within the United States. Metals, such as gold, copper, rare earth elements, tungsten and tin complete our portfolio. For more information please visit www.rohstoff.de.