LP Hill Plc : Interim Results

RNS Number : 2850A

LP Hill PLC

29 March 2012

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29 March 2012

LP Hill Plc

("LP Hill" or the "Company")

Interim Results for the six months ended 31 December 2011

LP Hill (AIM: LPH), the AIM listed uranium, thorium, base and precious metals and gemstones exploration and development company operating in Madagascar, announces its unaudited interim results for the six months ended 31 December 2011.

Highlights:

· Phase 2 of the Company's planned work programme on its Marodambo Project in Madagascar remains on hold, pending full assessment of the results from Phase 1 and receipt of the requisite environmental clearances.

· Identification and evaluation of further attractive mineral exploration projects ongoing, in order to potentially expand the Company's asset portfolio.

Events subsequent to the period end:

· On 2 March 2012, in order to provide additional working capital for the group, a new corporate investor agreed to subscribe for £200,000 of unsecured convertible loan notes due 2015.

· Appointment of Mr. Roy Spencer as Chief Executive Officer to assist in leading the Company's future development focusing on the discovery, analysis and exploitation of, inter alia, base and precious metals and gemstones, the latter being an area in which he has particular expertise.

Commenting on the interim results, Gerry Nealon, Executive Chairman, said:

"Phase 2 of the work programme for our Marodambo Project remains on hold as we still await the appropriate environmental clearances, whilst also seeking to conserve our limited cash resources in the current difficult global economic climate.

The Board continues to actively seek and evaluate further opportunities to expand the Company's asset portfolio including the potential acquisition of more advanced revenue generating or near revenue generating projects. The Company anticipates raising additional equity and / or debt finance in due course, to ensure that the group maintains an appropriate capital structure and is able to fund its ongoing working capital requirements."

For further information, please contact:

Ocean Equities Limited Tel: +44 (0) 20 7786 4370

Guy Wilkes

Justin Tooth

Chairman's Statement

I have pleasure in presenting the unaudited interim results for LP Hill in relation to the six month period ended 31 December 2011.

As reported previously, further to its reverse acquisition of Tranomaro Mineral Development Corporation Limited ("Tranomaro") in December 2009, the Company undertook and completed Phase 1 of its planned work programme on the Marodambo Project in Madagascar. The Phase 1 activities related mainly to the review of data, a desktop study, geological reconnaissance and mapping, along with soil, stream sediment and rock chip sampling. The Company is still awaiting receipt of the requisite environmental clearances and approvals from the relevant Madagascan government authorities, before potentially embarking on Phase 2.

The second phase of the exploration programme is likely to involve further petro-mineralogical studies, rotary air blast or diamond drilling and costeaning (trenching) of selected anomalies, analytical chemistry and sample assessment. The initial two phase work programme was designed to be conducted over an approximate eighteen month to two year period at a budgeted cost of US$250,000 (approximately £158,000). A formal decision on whether to proceed with the second phase has still to be taken following the ongoing assessment of the results obtained from Phase 1, whilst also seeking to conserve our limited cash resources in the current difficult global economic climate. Since completing the acquisition of Tranomaro, the Company has to date expended, in aggregate, approximately £212,000 on its exploration activities on the Marodambo Project.

Reflecting exploration expenditure and the ongoing costs associated with conducting the necessary due diligence on potential new attractive project opportunities, the Company incurred a loss after tax for the six month period ended 31 December 2011 of approximately £74,000 (31 December 2010: loss of £158,000).

On 2 March 2012, in order to provide additional working capital for the group, a new corporate investor agreed to subscribe £200,000 for unsecured convertible loan notes 2015 with a conversion price of 6 pence per share which, unless converted, shall fall due for repayment on 27 February 2015.

On the same date, the Company also announced the appointment of Mr. Roy Spencer as Chief Executive Officer to assist in leading the Company's future development as it continues to actively seek and evaluate further attractive and suitably priced mineral exploration projects focusing on the discovery, analysis and exploitation of, inter alia, base and precious metals and gemstones, the latter being an area in which Roy has particular expertise.

The Company anticipates raising additional equity and/or debt finance in due course to ensure that the group maintains an appropriate capital structure and is able to fund its ongoing working capital requirements.

I would once again like to take this opportunity to thank all of our shareholders for their continuing support and patience as we endeavour to identify and secure a suitable opportunity to deliver long term shareholder value.

Gerard A. Nealon

Executive Chairman

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This press release was issued by LP Hill plc and was initially posted at http://online.hemscottir.com/ir/lph/ir.jsp?page=news-item&item=971107138040933 . It was distributed, unedited and unaltered, by noodls on 2012-03-29 09:52:38 AM. The issuer is solely responsible for the accuracy of the information contained therein.