Hochschild Mining : Interim Results

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16 August 2016

Hochschild Mining plc

Interim Results for the six months ended 30 June 2016

Strong financial results

• Revenue of $339.3 million (H1 2015: $190.3 million)
• Adjusted EBITDA of $170.3 million (H1 2015: $39.3 million)
• Profit before income tax of $60.3 million (H1 2015: $43.4 million loss)
• Adjusted earnings per share of $0.05 (H1 2015: $(0.09))
• Interim dividend of 1.38 US cents per share ($7 million)

H1 2016 operational delivery ahead of expectations

• H1 2016 AISC per silver equivalent ounce from operations reduced by 27% to $10.9 exceeding guidance
• Inmaculada AISC per silver equivalent ounce significantly below guidance at $8.2
• Half year production of 17.0 million attributable silver equivalent ounces exceeding guidance
• Balanced gold and silver production profile (51% gold/49% silver)

Improved financial position

• Cash balance of $102.8 million as at 30 June 2016 (31 December 2015: $84.0 million)
• $70 million of debt repaid year-to-date (as at 16 August 2016)
• Net debt of $266.5 million as at 30 June 2016 (31 December 2015: $350.5 million)
• Net debt/Annual adjusted EBITDA of 1.0x as at 30 June 2016 (31 December 2015: 2.5x)

H2 2016 Outlook

• Record attributable production target increased from 32.0 million to 34.0 million silver equivalent ounces
• AISC now expected to be $11.0-11.5 per silver equivalent ounce (previous guidance of $12.0-12.5 per ounce)

Capital Markets Event

• Capital Markets Event to be held on 6 September 2016 in London

Commenting on the results, Eduardo Hochschild, Chairman said:

'Our long term investment strategy has now started to deliver strong results with an impressive operational performance combined with more positive precious metal prices which has in turn led to our re-entry into the FTSE 250. The Company has returned to profitability, materially reduced its debt position and is investing primarily in brownfield growth. In this constructive environment, the Board has decided to pay a dividend of 1.38 US cents per share, representing approximately 25% of net earnings, which we believe is an appropriate payout at this early stage of the cycle.'

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A live conference call & audio webcast will be held at 2.30pm (London time) on Tuesday 16 August 2016 for analysts and investors. Details as follows:

For a live webcast of the presentation please click on the link below:

http://edge.media-server.com/m/p/b8f2u9fv

Conference call dial in details:

UK: +44(0)20 3427 1900(Please use the following confirmation code: 6331446).

A recording of the conference call will be available for one week following its conclusion, accessible from the following telephone number:

UK: (0)20 3427 0598(Access code: 6331446)

The On Demand version of the webcast will be available within two hours after the end of the presentation and is accessible using the same webcast link.

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Enquiries:

Hochschild Mining plc

Charles Gordon +44 (0)20 3714 9044

Head of Investor Relations

Hudson Sandler

Charlie Jack +44 (0)207 796 4133

Public Relations

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About Hochschild Mining plc:

Hochschild Mining plc is a leading precious metals company listed on the London Stock Exchange (HOCM.L / HOC LN) with a primary focus on the exploration, mining, processing and sale of silver and gold. Hochschild has over fifty years' experience in the mining of precious metal epithermal vein deposits and currently operates four underground epithermal vein mines, three located in southern Peru and one in southern Argentina. Hochschild also has numerous long-term projects throughout the Americas.

CHIEF EXECUTIVE OFFICER'S STATEMENT

A year ago, as Inmaculada began its ramp-up process, we envisioned a more positive future for the Company with the prospect of a steady state contribution from this new low cost flagship mine. Today we can report that the Company has delivered better than expected operational results and Hochschild is now successfully delivering on the organic investment strategy that has been implemented over the last few years. The combination of a strong production performance, an intense focus on cost control and an encouraging precious metal price environment has been a powerful driver for the Company's return to profitability. We are confident that the foundations are in place to continue delivering robust results and that this momentum can be maintained.

H1 operational performance

Hochschild's mines delivered a very good first half with both Inmaculada and Arcata performing above expectations. The Company, as a whole, produced 118 thousand ounces of gold and 8.2 million ounces of silver which, when converted to the silver equivalent number of 17 million ounces, confirms that the run rate is ahead of the original full year target of 32 million ounces. Inmaculada was the key driver with grade and recoveries running ahead of plan and the plant consistently outperforming its design capacity. This led to production of 111 thousand gold equivalent ounces at an all-in sustaining cost of around $600 per ounce which places the mine in the bottom decile of the industry cost curve. In addition, Arcata enjoyed its finest half for over five years with production improving by 15% versus the same period of 2015. San Jose in Argentina has continued to deliver remarkably consistent output in an improved domestic economic environment. With the Company's overall cost position substantially lowered, all operations generated strong cashflow and we can look forward to a further boost at Pallancata when the transition to feed from the new Pablo vein is completed.

Financial position

The Company's strategy of de-risking the balance sheet has continued in 2016 with a further $70 million of medium and short term debt repaid to date following on from the $105 million executed in 2015. These ongoing measures have been facilitated by the Company's strong free cashflow generation resulting from the operational performance mentioned above. The cash balance at the half year remained above $100 million despite the debt repayments whilst capital expenditure was in line across all operations. Our net debt position has now been reduced by almost 40% in the last twelve months and we are confident that the maturity of our remaining long term debt is adequately profiled. The ratio of net debt to annual adjusted EBITDA currently stands at approximately 1.0x. The precious metal hedge positions carried out to protect the balance sheet and ensure ongoing debt repayment have amounted to a $3.1 million negative impact in the first half and there are currently no plans to hedge 2017 production.

Growth

A key aspect of Hochschild's growth strategy going forward is our brownfield exploration programme with our team of in-house geologists firmly believing in the potential for resource gains both in terms of quality and quantity at all our deposits. The obvious example has been the discovery and incorporation of the Pablo vein into the long term mine plan at Pallancata. In this regard, good developmental progress was made in the first half and remaining work is on schedule whilst initial underground geological assessment of the Pablo structure indicates the potential for further upside from surrounding veins. Furthermore, the overall improved financial position of the Company has facilitated a new five year brownfield exploration programme in both Peru and Argentina. The Company also currently has over 3,000 tonnes per day of spare plant capacity at our Selene, Arcata and Ares plants in Peru so there is an exciting opportunity to generate significant value for the Company even before the longer term expansion options at Inmaculada, for example, are assessed.

H1 financial performance

The 63% half-on-half increase in total production led to revenue rising by 78% versus the first half of 2015. Adjusted EBITDA rose by 333% to $170 million principally driven by the addition of substantially higher margin production from Inmaculada as well as an increased contribution from our other operations. As we have predicted, the strong cashflows from Inmaculada have offset the finance costs arising from our bond issue in January 2014 to fund its construction and this has helped the Company to record a very healthy pre-exceptional earnings per share of $0.05 which is a material improvement on the loss of $0.09 recorded in the first half of 2015.

Outlook

The Company's production target for the year has increased by over 6% to 34.0 million silver equivalent ounces following the good performances at Inmaculada and Arcata in the first half. All-in sustaining cost expectations for the Company have also been revised following a strong first half and are now expected to be between $11.0 and $11.5 per silver equivalent ounce which compares very favourably to our original guidance of between $12.0 and $12.5.

The recent market environment for precious metals has been far more positive than any time in the last three years but the Company remains fully prepared for any further volatility arising from macroeconomic or political events. We are confident that our strategy of ongoing cost reduction, investment in our brownfield exploration programme and strict balance sheet management will continue to deliver shareholder value throughout the remainder of the year and for the foreseeable future.

Ignacio Bustamante, Chief Executive Officer

15 August 2016

OPERATING REVIEW

OPERATIONS

Note: silver/gold equivalent production figures assume an average gold/silver ratio of 74:1.

Production

In the first half of 2016, the Company delivered attributable production of 229.1 thousand gold equivalent ounces or 17.0 million silver equivalent ounces, including 8.2 million ounces of silver and 118.1 thousand ounces of gold. The overall attributable production target for 2016 has been revised from 32.0 million silver equivalent ounces to 34.0 million ounces. This is expected to consist of approximately 16 million ounces from Inmaculada, approximately 7 million attributable ounces from the 51% owned San Jose and the balance from the remaining two Peruvian operations.

Total group production

*Total production includes 100% of all production, including production attributable to Hochschild's joint venture partner at San Jose.

Attributable group production

Attributable production includes 100% of all production from Arcata, Inmaculada, Pallancata and 51% from San Jose.

Costs

The Company's all-in sustaining cost from operations in H1 2016 was reduced by 27% to $10.9 per silver equivalent ounce mainly driven by the impact of Inmaculada with a very competitive $8.2 per silver equivalent ounce.The reduction versus H1 2015 is due to better than expected grades, higher silver recoveries and operational efficiency initiatives. Please see pages 8-10 of the Financial Review for further details on costs.

The all-in sustaining cost per silver equivalent ounce forecast for 2016 has been revised downwards to be between $11.0 and $11.5 with Inmaculada costs expected to be between $8 and $9 per ounce.

Inmaculada (Peru)

The 100% owned Inmaculada underground operation is located in the Department of Ayacucho in southern Peru. It commenced commissioning in June 2015.

Production

Inmaculada delivered a strong half with grades and silver recoveries better than expected in the original mine plan and, combined with higher tonnage per day being processed through the plant, H1 2016 production was able to reach 111 thousand gold equivalent ounces (8.2 million silver equivalent ounces).

Costs

The all-in sustaining costs were lower than forecast at $8.2 per silver equivalent ounce. This was driven by higher than expected production as well as operational efficiencies versus the original plan. Overall all-in sustaining costs for 2016 are expected to be between $8 and $9 in 2016.

Arcata (Peru)

The 100% owned Arcata underground operation is located in the Department of Arequipa in southern Peru. It commenced production in 1964.

Production

At Arcata, production was a very solid 3.7 million silver equivalent ounces, a 15% improvement on the same period of 2015 (H1 2015: 3.3 million ounces). This was driven by better than expected mined tonnage resulting from the success of the Company's 2015 brownfield exploration programme in addition to higher silver recoveries.

Costs

In H1 2016, all-in sustaining costs fell by 4% to $13.0 per silver equivalent ounce (H1 2015: $13.5 per ounce) - substantially below the forecast of $14.5 per ounce (as well as the overall 2015 result of $14.3 per ounce) due to the increased tonnage mentioned above as well rising gold grades and operational efficiencies.

Brownfield exploration

At Arcata, 2,135 metres were drilled in the first half to test North-South structures in the central area of the mine. The plan for the remainder of the year is to drill in the Tunel 4 zone to extend existing structures and identify new ones. Some highlights are presented below:

Pallancata (Peru)

The 100% owned Pallancata silver/gold property is located in the Department of Ayacucho in southern Peru. Pallancata commenced production in 2007. Ore from Pallancata is transported 22 kilometres to the Selene plant for processing.

Production

At Pallancata, as expected, tonnage through the plant in the first half was lower than the average 2015 rate with operations in a transitionary period before the introduction of feed from the new Pablo vein. Production in H1 2016 was 1.3 million ounces of silver and 6,370 ounces of gold bringing the silver equivalent total to 1.7 million ounces (H1 2015: 2.6 million).

Costs

All-in sustaining costs at Pallancata in the first half were at $15.9 per silver equivalent ounce (H1 2015: $15.5 per ounce) with the moderate increase versus the same period of 2015 due to the aforementioned significant fall in tonnage affecting cost per tonne. This was partially offset by increased grades and operational efficiencies. The all-in sustaining cost at the operation excluding capital expenditure on the Pablo development was $13.5 per silver equivalent ounce. Costs are expected to fall substantially when the Pablo vein begins production.

Brownfield exploration

At Pallancata, a drilling campaign has begun to the north and south of the Pablo structure to test anomalies and add potential resources (parallel to Pablo). So far, 698 metres have been drilled.

San Jose (Argentina)

The San Jose silver/gold mine is located in Argentina, in the province of Santa Cruz, 1,750 kilometres south-southwest of Buenos Aires. San Jose commenced production in 2007 and is a joint venture with McEwen Mining Inc. Hochschild holds a controlling interest of 51% in the mine and is the mine operator.

The Company has a 51% interest in San Jose

Production

The San Jose operation delivered yet another solid half with production of 3.1 million ounces of silver and 43,490 ounces of gold resulting in silver equivalent production of 6.4 million ounces, a 5% improvement on H1 2015 (6.1 million ounces) mostly due to better than planned grades and higher than expected tonnage.

Costs

At San Jose, all-in sustaining costs were reduced by 24% versus H1 2015 to $11.7 per silver equivalent ounce mainly driven by the significant fiscal changes in Argentina in the first half. These included the elimination of export taxes and the restoration of the Patagonian port rebate.

Brownfield exploration

At San Jose 1,240 metres has been drilled mainly in the Aguas Vivas area with the programme ongoing.

FINANCIAL REVIEW

The reporting currency of Hochschild Mining plc is U.S. dollars. In discussions of financial performance the Group removes the effect of exceptional items, unless otherwise indicated, and in the income statement results are shown both pre and post such exceptional items. Exceptional items are those items, which due to their nature or the expected infrequency of the events giving rise to them, need to be disclosed separately on the face of the income statement to enable a better understanding of the financial performance of the Group and to facilitate comparison with prior years.

Revenue

Gross revenue

Gross revenue from continuing operations rose by 74% to $353.3 million in H1 2016 (H1 2015: $202.5 million) primarily driven by the substantial increase in production at Inmaculada.

Silver

Gross revenue from silver increased 32% in H1 2016 to $172.7 million (H1 2015: $131.3 million) as a result of a 30% increase in the total amount of silver ounces sold to 10,085 koz (H1 2015: 7,785 koz) driven by the increase from new production at Inmaculada as well as half-on-half increases at Arcata and San Jose.

Gold

Gross revenue from gold increased by 154% in H1 2016 to $180.5 million (H1 2015: $71.2 million) as a result of a 152% rise in the total amount of gold ounces sold in H1 2016 (146.1 koz). The increase in gold sales came from sales from the new Inmaculada operation as well as increases at Arcata and San Jose.

Gross average realised sales prices

The following table provides figures for average realised prices (which are reported before the deduction of commercial discounts and include the effects of the existing hedging agreements)and ounces sold for H1 2016 and H1 2015:

Commercial discounts

Commercial discounts refer to refinery treatment charges, refining fees and payable deductions for processing concentrates, and are deducted from gross revenue on a per tonne basis (treatment charge), per ounce basis (refining fees) or as a percentage of gross revenue (payable deductions). In H1 2016, the Group recorded commercial discounts of $14.1 million (H1 2015: $12.3 million). The increase is explained by an increase in concentrate sold from Arcata. The ratio of commercial discounts to gross revenue in H1 2016 decreased to 4% (H1 2015: 6%).

Net revenue

Net revenue increased by 78% to $339.3 million (H1 2015: $190.3 million), comprising silver revenue of $163.1 million and gold revenue of $176.0 million. In H1 2016, silver accounted for 48% and gold 52% of the Company's consolidated net revenue with the strong increase in the gold percentage versus H1 2015 being due to a full contribution from the primarily gold producing Inmaculada mine.

Revenue by mine

Costs

Total pre-exceptional cost of sales increased to $238.7 million in H1 2016 (H1 2015: $174.5 million). The direct production cost was $139.0 million (H1 2015: $111.7 million) with the increase due to the addition of the new Inmaculada mine since H1 2015. Depreciation in H1 2016 was $88.5 million (H1 2015: $57.0 million) with the increase mainly due to the addition of Inmaculada depreciation. Other items, which in H1 2015 principally included the costs associated with stoppages in Argentina, decreased to $(0.08) million in H1 2016 (H1 2015: $4.9 million), as there have been no stoppages at the mine. Change in inventories was $11.3 million in H1 2016 (H1 2015: $1.0 million) with the difference explained by finished goods from December 2015 being sold in January 2016.

Unit cost per tonne

The Company reported unit cost per tonne at its main operations of $108.7 in H1 2016, a significant fall versus the same period of last year (H1 2015: $138.3). For further explanation on the increase in unit cost per tonne please refer to page 6 of the Operating Review.

Unit cost per tonne by operation (including royalties)

Cash costs

Cash costs include cost of sales, commercial deductions and selling expenses before exceptional items, less depreciation included in cost of sales.

Cash cost reconciliation

Cash costs are calculated based on pre-exceptional figures. Co-product cash cost per ounce is the cash cost allocated to the primary metal (allocation based on proportion of revenue), divided by the ounces sold of the primary metal. By-product cash cost per ounce is the total cash cost minus revenue and commercial discounts of the by-product divided by the ounces sold of the primary metal.

All-in sustaining cost reconciliation

All-in sustaining cash costs per silver equivalent ounce

Six months to 30 June 2016

Six months to 30 June 2015

Administrative expenses

Administrative expenses before exceptional items increased to $22.2 million (H1 2015: $18.8 million) primarily due to increased personnel expenses.

Exploration expenses

In H1 2016, pre-exceptional exploration expenses were broadly flat at $4.0 million (H1 2015: $4.1 million). In addition, the Group capitalises part of its brownfield exploration, which mostly relates to costs incurred converting potential resource to the Inferred or Measured and Indicated category. In H1 2016, the Company capitalised $0.3 million relating to brownfield exploration compared to $0.7 million in H1 2015, bringing the total investment in exploration for H1 2016 to $4.3 million (H1 2015: $4.8 million).

Selling expenses

Selling expenses decreased by 39% versus H1 2015to $7.1 million (H1 2015: $11.6 million) mainly due to the elimination of export duties at San Jose. Selling expenses in H1 2016 consisted mainly of logistic costs for the sale of concentrate in addition to approximately 1.5 months of final export duties on concentrate. Previously, export duties in Argentina were levied at 10% of revenue for concentrate and 5% of revenue for dore.

Other income/expenses

Other income before exceptional items was $12.9 million (H1 2015: $2.6 million). The increase is mainly due to the impact of the Patagonian port benefit ($8.4 million) reintroduced towards the end of 2015 and incremental revenue from logistic services provided to third parties. Other expenses before exceptional items was $6.2 million (H1 2015: $4.6 million) with the rise due to costs associated with energy contract renegotiation and costs to reorganise land concessions.

Adjusted EBITDA

Adjusted EBITDA increased by 333% over the period to $170.3 million (H1 2015: $39.3 million) driven by the substantial positive effects of the new low-cost Inmaculada contribution.

Adjusted EBITDA is calculated as profit from continuing operations before exceptional items, net finance costs and income tax plus non-cash items (depreciation and amortisation) and exploration expenses other than personnel and other exploration related fixed expenses.

Finance income

Finance income before exceptional items of $0.5 million was similar to H1 2015 ($0.6 million) and mainly includes interest received on deposits.

Finance costs

Finance costs before exceptional items increased from $14.6 million in H1 2015 to $17.4 million in H1 2016 principally due to the expensing of interest on the Senior Notes that was previously capitalised during the construction of Inmaculada in line with the IFRS standards and costs related to the Company's precious metal hedge agreements. These effects offset the fall in interest due to the repayment of debt since H1 2015.

Foreign exchange losses

The Group recognised a foreign exchange gain of $0.4 million (H1 2015: $1.2 million loss) as a result of exposures to currencies other than the functional currency, specifically the Peruvian Nuevo Sol and Argentinean Peso.

Income tax

The Group's pre-exceptional income tax charge was $21.4 million (H1 2015: $1.8 million). The substantial increase in the charge is explained by the Company's significant increase in profitability in the period for reasons explained above.

Exceptional items

Exceptional items in H1 2016 totalled $1.8 million profit after tax (H1 2015: $(6.1) million). Exceptional items principally included: a $2.7 million gain on the reversal of the mining reserve tax in Argentina in addition to the reversal of the associated interest on the reserve tax ($1.0 million); the effect of a donation to Universidad de Ingenieria y Tecnología financed with a gain on sale of Asociación Sumac Tarpuy of ($0.2 million) net; and a property, plant and equipment write-off of $0.5 million. These items excluded the exceptional tax effect that amounted to a $1.1 million tax charge (H1 2015: $1.3 million tax credit).

Cash flow and balance sheet review

Cash flow:

Operating cash flow increased from $18.3 million in H1 2015 to $144.6 million in H1 2016, mainly due to the cash contribution from the Inmaculada mine. Net cash used in investing activities decreased to $(54.8) million in H1 2016 from $(119.2) million in H1 2015 mainly due to the completion of the Inmaculada mine since H1 2015. Finally, cash generated from financing activities decreased to $(70.8) million from an inflow of $70.2 million in H1 2015 primarily due to the repayment of $65 million of debt in H1 2016 versus the raising of $75 million of short term debt in Peru in H1 2015. As a result, total cash inflow increased from a $(30.7) million outflow in H1 2015 to $19.0 million in H1 2016 ($49.7 million difference).

Working capital

The Group's working capital position improved by $93.4 million to $(60.0) million in H1 2016 from $33.3 million in H1 2015. This was primarily explained by: lower trade and other receivables ($(33.6) million) due to VAT recoveries of $20 million in H2 2015 and $12 million in H1 2016; lower net financial assets ($21.2 million) primarily due to the hedge liability position in H1 2016 versus an asset position in H1 2015; and higher trade and other payables and provisions ($(18.9) million).

Net debt

The Group's reported net debt position was $266.5 million as at 30 June 2016 (H1 2015: $455.6 million). The reduction includes the net effect of: the equity rights issue ($95 million) in H2 2015; the prepayment of the Scotiabank medium term loan (($100) million); the repurchase of Senior Notes (($55) million); the repayment of pre-shipment loans ($15m) in H1 2016; the cash generated mainly in Inmaculada and the other units; and the final cash outflow required to complete the construction of Inmaculada.

Capital expenditure

H1 2016 capital expenditure of $59.2 million (H1 2015: $132.2 million) mainly comprised operational capex of $55.3 million (H1 2015: $30.3 million), an increase versus H1 2015 due the commissioning of Inmaculada in H2 2015.

Forward looking Statements

This announcement contains certain forward looking statements, including such statements within the meaning of Section 27A of the US Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In particular, such forward looking statements may relate to matters such as the business, strategy, investments, production, major projects and their contribution to expected production and other plans of Hochschild Mining plc and its current goals, assumptions and expectations relating to its future financial condition, performance and results.

Forward-looking statements include, without limitation, statements typically containing words such as 'intends', 'expects', 'anticipates', 'targets', 'plans', 'estimates' and words of similar import. By their nature, forward looking statements involve risks and uncertainties because they relate to events and depend on circumstances that will or may occur in the future. Actual results, performance or achievements of Hochschild Mining plc may be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Factors that could cause or contribute to differences between the actual results, performance or achievements of Hochschild Mining plc and current expectations include, but are not limited to, legislative, fiscal and regulatory developments, competitive conditions, technological developments, exchange rate fluctuations and general economic conditions. Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser.

The forward looking statements reflect knowledge and information available at the date of preparation of this announcement. Except as required by the Listing Rules and applicable law, Hochschild Mining plc does not undertake any obligation to update or change any forward looking statements to reflect events

RISKS
The principal risks and uncertainties facing the Company in respect of the year ended 31 December 2015 are set out in detail in the Risk Management & Viability section of the 2015 Annual Report and in Note 36 to the 2015 Consolidated Financial Statements.

The key risks disclosed in the 2015 Annual Report (available atwww.hochschildmining.com) are categorised as:

o Financial risks which include commodity price risk and refinancing risk;

o Operational risks including the risks associated with operational performance, delivery of projects, business interruption, exploration & reserve and resource replacement and personnel risks;

o Macro-economic risks which include political, legal and regulatory risks; and

o Sustainability risks including risks associated with health and safety, environmental and community relations.

These risks continue to apply to the Company in respect of the remaining six months of the financial year.

RELATED PARTIES TRANSACTION

Related parties transactions are disclosed in note 18 to the condensed set of financial statements.

GOING CONCERN

The Company's business activities, together with the factors likely to affect future development, performance and position are set out in the Operating Review on pages 4 to 7. The financial position of the Company, its cash flow and liquidity position are described in the Financial Review on pages 8 to12.

The Directors believe that the financial resources available at the date of the issue of these condensed interim financial statements are sufficient for the Company to manage its business risks successfully.

The Company's forecasts and projections, taking into account reasonably possible changes in operational performance and in particular the price of gold and silver, and other mitigating actions described in the Risks section above, show that there are reasonable expectations that the Company will be able to operate on funds currently held and those generated internally, for the foreseeable future.

After making enquiries and considering the above, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future and consider the going concern basis of accounting to be appropriate. As a result they continue to adopt the going concern basis of accounting in preparing the condensed interim financial statements.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The Directors confirm that, to the best of their knowledge, the interim condensed consolidated financial statements have been prepared in accordance with IAS 34 'Interim Financial Reporting' as adopted by the European Union and that the interim management report includes a fair review of the information required by Disclosure and Transparency Rules 4.2.7 and 4.2.8.

A list of current Directors and their functions is maintained on the Company's website.

For and on behalf of the Board