LP Hill Plc : Final Results

15 November 2012

LP Hill Plc

("LP Hill" or the "Company")

Final Results for the year ended 30 June 2012

LP Hill (AIM: LPH), the AIM listed uranium, thorium, base, precious metals and gemstones exploration and development company operating in Madagascar, announces its audited final results for the year ended 30 June 2012.

Chairman's Statement

I am pleased to report on the Company's results for the financial year ended 30 June 2012.

During the reporting period, the Board has continued to actively seek and evaluate additionalattractive mineral exploration projects focusing on the discovery, analysis and exploitation of mineral resources involving base metals, precious metals and also gemstones. More specifically, the Company has concentrated on those projects relating to gold, copper, manganese, lead, zinc and the platinum group metals, to develop to at least the level of an independent indicated or measured JORC compliant resource estimate.

Although a number of interesting early stage projects were identified with promising exploration potential, the prospective vendors were predominantly found to have unrealistic valuation expectations which the Board believed was inconsistent with the prevailing uncertain and challenging global economic and financing environment. Accordingly, the Board has yet to identify an opportunity at a sensible valuation in which it has sufficient confidence to be able to present it to potential investors in order to raise funding to cover both the cash element of the acquisition consideration and the requisite working capital to pursue an appropriate exploration work programme.

As reported previously, further to its reverse acquisition of Tranomaro Mineral Development Corporation Limited in December 2009, the Company undertook and completed its Phase 1 exploration activities on its Marodambo Project in Madagascar. The Company is primarily still awaiting receipt of the requisite environmental clearances and approvals from the relevant Madagascan government authorities, before being able to embark on Phase 2 of the planned exploration programme, subjectalso to sufficient funds being available at that time. Whilst the Company continues to satisfy the ongoing annual licence fees and associated essential administration costs, the project is for the time being effectively being held on a care and maintenance basis.

As a result of the ongoingexpenditure associated with conducting the necessary due diligence on potential new projects and general listing and administration costs, the Company incurred a loss after tax for the year ended 30 June 2012 of £213,839 (2011: loss of £320,364).

As announced on 2 March 2012, in order to provide additional working capital for the Group, Fisherstreet Management Limited, a Hong Kong based private investment vehicle, agreed to subscribe £200,000 for unsecured loan notes of the Company which fall due for repayment on 27 February 2015.  On the same date, the Company was also pleased to announce the appointment of Mr. Roy Spencer as Chief Executive Officer, to assist in leading the Company's future development and the sourcing and evaluation of attractive new projects.

On 1 November 2012, the Company allotted 2,145,026 new ordinary shares to Hereford Group Limited, an existing significant shareholder, in respect of the conversion in full of its 2012 unsecured loan note and the satisfaction of accrued interest thereon.

Notwithstanding the difficulty in identifying and securing an appropriately valued target project(s), the Board remains confident in the longer term fundamentals for the natural resources sector and its ability to raise additional equity and/or debt finance in due course to ensure that the Group maintains sufficient working capital and an appropriate capital structure and is able to fund potential future development opportunities.

I would like to take this opportunity to once again thank all of our shareholders, advisers and other stakeholders for their continuing support and patience as we seek to further the Company's development and generate long term shareholder value.

Gerard A. Nealon

Executive Chairman

15 November 2012

Consolidated Statement of Comprehensive Income

For the year ended 30 June 2012

Consolidated Statement of Financial Position

As at 30 June 2012

Consolidated Statement of Changes in Equity

For the year ended 30 June 2012

Consolidated Statement of Cash Flow

For the year ended 30 June 2012

For the year ended 30 June 2012

1.General information

LP Hill Plc is currently a mineral exploration company. The Company is a public limited company listed on AIM, a market operated by the London Stock Exchange plc, and is incorporated in England and Wales with company number 05980987. The address of the registered office of the Company is 30 Portland Place, London W1B 1LZ.

The financialinformation has been prepared on a going concern basis (see Note 8 below).

2.Basis of preparation and accounting policies

These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS), including IFRS 6 'Exploration for and Evaluation of Mineral Resources' and IFRIC interpretations issued by the International Accounting Standards Board (IASB) as adopted by the European Union and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS.

The audited financial information contained in this announcement does not constitute the Company's full financial statements for the year ended 30 June 2012 or 2011, but is derived from those financial statements, approved by the board of directors. The auditors' report on the 2012 accounts was (i) unqualified but did include an emphasis of matter paragraph relating to going concern and (ii) did not contain any statement under section 498(2) or (3) of the Companies Act 2006.  The full audited financial statements for the year ended 30 June 2012 will be delivered to the Registrar of Companies and filed at Companies House following the Company's forthcoming annual general meeting.

The group's principal accounting policies have been consistently applied. 

3.     Taxation

The Company has excess management expenses to carry forward of £656,808 (2011: £542,549) and non trading deficits carried forward of £18,542 (2011: £6,615). Deferred tax assets arising at 20% (2011: 29.75%) from these losses of £135,000 (2011: £162,765) have not been provided for as their recovery is not probable in the foreseeable future.

4.Losses per share

Losses per ordinary share have been calculated using the weighted average number of shares in issue during the relevant financial year. The weighted average number of shares in issue was basic 27,992,780 (2011: 27,992,780). The fully diluted weighted average number of shares was 34,481,512 (2011: 31,275,398). The loss for the financial year was £213,839 (2011: £320,364).

5.   Share capital

Number of outstanding existing Warrants at 30 June 2012:

Number of outstanding existing Warrants at 30 June 2011:

There is a share based payment charge of £50,467 in respect of the new warrants issued in the period to 30 June 2010 and £Nil for the periods to 30 June 2011 and 30 June 2012.

No warrants were granted or exercised in the year.

6.     Operating loss

The average number of people (including executive directors) employed during the year was:

7.   Post-balance sheet events

Save for the allotment of 2,145,025 new ordinary shares on 1 November 2012 in respect of the conversion in full of the Convertible Loan Note 2012 and satisfaction of accrued interest thereon, there were no events after the reporting period that are required to be disclosed.

8.    Going concern

These financial statements have been prepared on the assumption that the Group is a going concern which the Directors believe to be appropriate.  When assessing the foreseeable future, the Directors have considered a period of twelve months from the date of approval of the financial statements. The Directors acknowledge that the Group will be likely to continue making operating losses for the foreseeable future and therefore the Group and Company remain reliant upon their ability to raise finance through other means. The Group is still at an early stage with respect to its Marodambo exploration project in the Tranomaro area of Madagascar and the Directors are currently exploring options to raise further funds to finance the Group's projected working capital requirement over the next twelve month period. The uncertainty as to the timing and amount of such a fund raising exercise requires the Directors to consider the Group's ability to continue as a going concern. During this reporting period, the directors raised an additional £200,000 of cash funding by way of the issue of a new convertible loan note.

The support of the Group's shareholders has been evident in the recent past and continues to be of significant importance. Notwithstanding the aforementioned uncertainty, the Directors are confident that sufficient support will be received from existing shareholders and potential new investors to enable the funding requirement to 30 November 2013 to be satisfied. The Directors will continue to carefully manage the Group's existing resources and control costs at all times.

Accordingly, the Directors are confident that the going concern basis is appropriate and are satisfied that new financing and/or investment will be forthcoming in the period as and when required.

Were the Group to be unable to continue as a going concern, adjustments may have to be made to the balance sheet of the Group to reduce the balance sheet values of assets to their recoverable amounts, to provide for future liabilities that might arise and to reclassify non-current assets and long-term liabilities as current assets and liabilities.

9.   Related party transactions

The Company charged a management fee of £10,720 (2011: £36,344) to Tranomaro Mineral Development Corporation Limited ("TMDC") in the year and, at the financial year end, TMDC had a balance of £483,994 (2011: £444,511) payable to the Company.

10.  Availability of Annual Report and Financial Statements

Copies of the Company's full Annual Report and Financial Statements are being posted to shareholders today and, once posted, will also be made available to download from the Company's website atwww.lphill.com.au.

The Annual Report and Financial Statements will also be made available for inspection at the Company's registered office during normal business hours on any weekday.  LP Hill Plc is registered in England and Wales with registered number 05980987. The registered office is at 30 Portland Place, London W1B 1LZ. 

11.  Annual General Meeting

The Company's next Annual General Meeting ("AGM") will be held at 10.30 a.m. on 7 December 2012 at the offices of Joelson Wilson LLP, 30 Portland Place, London W1B 1LZ and a formal Notice of AGM is set out at the end of the Annual Report and Financial Statements being posted to shareholders today.

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