Power Capital Global Limited (AIM:PCGB), the People's Republic of China-focused natural resources trading and logistics group, has today published its unaudited results for the six months ended 30 June 2011.

During the period under review, the Company made good progress in transforming itself into a PRC focused natural resources trading and logistics Group.

The Company commenced its coal trading operations during the first half of 2011. The first shipment of approximately 35,000 metric tonnes of Indonesian steam coal was contracted through a non-related entity and financed by a profit-linked loan provided to the non-related entity by a wholly owned subsidiary of the Company, PCG Coal Limited ("PCG Coal"). The trade was completed with a buyer in the People's Republic of China ("PRC") and PCG Coal fully recovered its loan during the period under review without any profit or loss. The second shipment of approximately 35,000 metric tonnes of Indonesian steam coal was contracted directly by PCG Coal and delivered to a buyer in Taiwan. The shipment was rejected on arrival in Taiwan for failure to meet stringent quality standards and ownership of the coal inventory remains with the Company. Management intends to liquidate this coal inventory during the second half of 2011, seeking to benefit from coal prices that traditionally rise with winter seasonal demand. The carrying value of the coal has been written down in the first half of 2011 to provide for its lower grade calorific value. The provision of £611,000, a non cash item, is included in the overall loss for the half year. Management has temporarily ceased steam coal export operations from Indonesia pending revision to supply chain arrangements and improvement in credit security delivered from end producers.

The Company continues to seek approval for a corporate presence in the PRC by setting up a representative office in Beijing and incorporating a wholly owned subsidiary in Datong, Shanxi province. Management currently expects that all necessary governmental approvals to complete this exercise will be secured before the end of the current year.

The Company continues to prepare for the commencement of the Company's domestic coal trading business in China once all the necessary business operating approvals have been secured.

Due to the impact of set up costs and initial trading of its Indonesian operations, the Company recorded a loss for the six months ended 30 June 2011 of £1,508,419 (2010: loss of £26,000) and as at 30 June 2011 had cash resources of £699,200 with net liabilities of £213,042.

The Company nevertheless enjoys the continued financial support of its majority shareholder. On 14 September 2011, the Company secured agreement for a US$2.0m twelve month loan facility from Power Capital Forex Management Limited, a company under the control of Mr Lin Kung-Min, the ultimate controlling shareholder of the Company, to be drawn by the Company to fund its operating expenditure requirements. This loan facility bears interest at LIBOR plus 3% and replaces an existing US$0.9m facility from the same lender which is fully drawn; the incremental US$1.1 million facility is currently drawn as to approximately US$20,000.   The US$2.0m loan facility is deemed to be a related party transaction under Rule 13 of the AIM Rules for Companies.

The directors, other than Mr Lin Kung-Min who has taken no part in the Board's consideration of the loan facility, consider, having consulted with Northland Capital Partners Limited, the Company's Nominated Adviser, that the terms of the transaction with Mr Lin Kung-Min are fair and reasonable so far as the shareholders of the Company are concerned.

The Board looks forward to continuing to build out its natural resources trading and logistics operations in PRC.

Simon Dewhurst

Chief Executive Officer

28 September 2011

The announcement can be downloaded in Adobe Acrobat PDF format by clicking the following link: