Interim Results to 31 August 2017

15 November 2017

MetalNRG PLC
(the "Company" or “MetalNRG”)

Unaudited Interim Results to 31st August 2017

MetalNRG plc (NEX:MNRG), the natural resource investing company quoted on the NEX Exchange Growth Market in London, announces its unaudited interim results for the 6 months period ended 31st August 2017.

CHAIRMAN'S STATEMENT:

During the period to 31st August 2017, and post the half-year end to 31st October 2017, MetalNRG has been highly active and whilst much of the work undertaken has necessarily been in the background, we have been able to articulate to the market a number of major steps forward.

We have invested in the Pilbara region of Western Australia with two licence applications over areas that we considered were prospective for cobalt, a highly attractive and increasingly valuable energy metal used primarily in battery technologies. Fortune favours the brave and we have benefitted from good fortune in that the licence application areas are also in a region where many companies are now actively prospecting for conglomerate hosted gold. As a result, our investment in the Pilbara region is attracting the interest of numerous third parties and we, as a company, are looking at the potential for joint ventures or disposals, whilst also looking at the prospect of self-funding our licence areas and building the value of our interests through work on the ground.

Regarding the Pilbara region, as announced on 27th October and 12th October 2017, currently Palomino comprise one project area under application (Palomino Project) and one further project area under application (Palomino North) which is the subject of a forthcoming ballot (i.e. another company has also submitted an application in respect of the same ground applied for by MetalNRG’s Australian working partner and thus a ballot is held to determine the successful applicant, unless the parties reach suitable agreement as to how the joint application is to be handled prior to the ballot). The Company will update shareholders as and when it is known that the application, for Palomino North has been successful or not. In addition to the Pilbara opportunities, during the period to 31st August 2017, and post the half-year end to 31st October 2017, the Company has also invested in US Cobalt Pty Limited, taking an immediate stake of 18.18%, through a cash investment of AUD$200,000 (approximately GBP 118,000) and with an option to acquire the remainder, as per the announcement of 12th July 2017.

This opportunity is focused on Nevada, USA and a highly mineralised region where our work has demonstrated, through assays, high grade zinc, lead, copper and cobalt. We are finalising our plans as to how to take this interest forward and expect to update the market in the very near term.

Alongside the Pilbara interests and our investment in US Cobalt Pty Limited, the Company is in advanced discussions with regard to additional North American and Australian Cobalt opportunities, a uranium production opportunity and various potentially high grade gold opportunities.

MetalNRG has a reasonable but modest amount of cash, and as a result it must be innovative in cash utilisation. Fortunately, the Board has agreed to provide its services at no remuneration for now thus allowing us to focus our expenditure on investing with minimal operating costs. That decision reflects the approximately 40% of the Company’s issued share capital being held by the directors and thus means we are aligned with all the Company’s shareholders.

We have spent a considerable period of time considering the best way to improve the profile, trade-ability and value of the Company's share capital and will very shortly outline to market our plans.

These plans will see MetalNRG adopt a hub and spoke approach to create a network of companies in which we are invested with discreet business interests in each. MetalNRG will sit as a holding Company in the centre and this approach will allow us to create numerous value generative events for investors from the currently announced investments and as yet unannounced business opportunities that we have spent considerable time building over 2017.

To the MetalNRG team and advisors I would like to thank them for their commitment. The Board would also like to thank our shareholders. We trust that in the near term all shareholders will see the rewards from the extensive work programme we have been undertaking and we thank you all for your support.

The Directors do not recommend the payment of a dividend.

The Directors have agreed to continue to waive their fees as previously announced.

The interim results to 31st August 2017 have been reviewed by the Company’s auditor.

Christopher Latilla-Campbell
Chairman
15th November 2017

The Directors of the Company accept responsibility for the contents of this announcement.

Contact details:

MetalNRG plc 
Paul Johnson (Chief Executive Officer) +44 (0) 7766 465617

NEX Exchange Corporate Adviser +44 (0) 20 7469 0930 
PETERHOUSE CORPORATE FINANCE LIMITED 
Guy Miller/Mark Anwyl

Corporate Broker 
SI CAPITAL +44 (0) 1483 413500 
Nick Emerson/Andy Thacker

UNAUDITED ACCOUNTS FOR THE SIX MONTHS TO 31st AUGUST, 2017

PROFIT & LOSS ACCOUNT
for the period to 31st August, 2017

GBP GBP

Six months ended 31st Six months ended 31st August 
August 2017 2016

Income

Unrealised Foreign Exchange (4,616) 5,743 
Gains/(Losses)

Interest receivable - -

Other Income 320 101

Total 4,296 387

Expenses

Salaries & fees - -

Legal & Professional Fees (38,619) (25,756)

Travelling and Research (7,712) -

General Expenses (16,837) (3,164)

Total (63,168) (28,920)

Loss for the Period (58,872) (23,076)

BALANCE SHEET
At 31st August, 2017

GBP GBP

As at 31st August 2017 As at 31st August 2016

Current Assets

Unlisted Investments 175,470 -

Bank Balances 273,170 146,726

Debtors 27,639 18,131

476,279 164,857

Current Liabilities

Creditors (13,339) (6,552)

462,940 158,305

Equity

Share Capital 250,709 243,563

Share Premium 1,095,221 715,361

Prior Year Reserves (815,525) (777,542)

Profit & Loss Account (67,465) (23,077)

462,940 158,305

Number of shares in issue as at 13th November 2017 - 139,326,404

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

Notes for Editors:

MetalNRG is quoted on the NEX Exchange Growth Market in London with the stock code MNRG and is a natural resource investing company. Its website is: www.metalnrg.com

NEX Exchange:

Investors wishing to consider trading in NEX Exchange Growth Market quoted shares can access this market from numerous brokers, a full list of which can be accessed through the following link:

https://www.nexexchange.com/for-investors/find-a-broker/

The list accessed through the link above includes certain brokers offering online trading of NEX Exchange quoted shares.

The Investing Policy of the Company is as follows:

The Company’s Investing Policy is to invest in and/or acquire companies and/or projects within the natural resources and/or energy sector with potential for growth and value creation, over the medium to long term. The Company will also consider opportunities in other related sectors if the Board considers there is an opportunity to generate an attractive return for Shareholders. This will include natural resource technologies and fintech opportunities offering leverage to resource identification, processing, recording, storage and trading businesses.

Where appropriate, the Board may seek to invest in businesses where it may influence the business at a board level, add their expertise to the management of the business, and utilise their significant industry relationships.

The Company’s interests in a proposed investment and/or acquisition may range from a minority position to full ownership and may comprise one investment or multiple investments. The proposed investments may be in either quoted or unquoted companies; be made by direct acquisitions or farm-ins; and may be in companies, partnerships, earn-in joint ventures, debt or other loan structures, joint ventures or direct or indirect interests in assets or projects.

The Board may focus on investments where intrinsic value can be achieved from the restructuring of investments or merger of complementary businesses. The Board expects that investments will typically be held for the medium to long term, although short term disposal of assets cannot be ruled out if there is an opportunity to generate an attractive return for Shareholders. The Board will place no minimum or maximum limit on the length of time that any investment may be held. The Company may be both an active and a passive investor depending on the nature of the individual opportunity.

Where the Company builds a portfolio of related assets it is possible that there may be cross-holdings between such assets. The Company does not currently intend to fund any investments with debt or other borrowings, but may do so if appropriate. Investments in early stage assets are expected to be mainly in the form of equity, with debt potentially being raised later to fund the development of such assets. Investments in later stage assets are more likely to include an element of debt to equity gearing. The Board may also offer new Ordinary Shares by way of consideration as well as cash, thereby helping to preserve the Company’s cash for working capital and as a reserve against unforeseen contingencies including, for example, delays in collecting accounts receivable, unexpected changes in the economic environment and operational problems.

The Board will conduct initial due diligence appraisals of potential business or projects and, where they believe further investigation is warranted, intend to appoint appropriately qualified persons to assist. The Proposed Board believes its expertise will enable it to determine quickly which opportunities could be viable and so progress quickly to formal due diligence. The Company will not have a separate investment manager. The Company proposes to carry out a comprehensive and thorough project review process in which all material aspects of a potential project or business will be subject to rigorous due diligence, as appropriate.

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