Interim Management Statement

LONDON, UNITED KINGDOM--(Marketwired - May 16, 2013) - Anglo Pacific Group PLC (the "Group") (LSE:APF)(TSX:APY) today releases its interim management statement for the period January 1, 2013 to May 15, 2013.

The market background has remained challenging during the first three months of 2013. Demand for commodities remained weak as a result of slower economic growth figures worldwide. However, more recently commodity prices have stabilised and buoyant stock markets are signalling renewed economic confidence. Against this background, the Group has been encouraged with the level of royalty income earned in the first quarter.

Royalty Income

Production at the Group's main asset, the Kestrel coking coal mine, has been encouraging, despite Rio Tinto declaring a temporary force majeure at the end of January due to infrastructure damage as a result of flooding. The Group earned income of A$4.2m on sales of 796k tonnes during the quarter. This represents a significant increase on the previous quarter.

Income from the Amapá iron ore mine in Brazil was also encouraging at £0.5m in the first quarter. The mine is adjacent to Tucano, one of the Group's development royalties. The operator of Tucano, Beadell Resources Limited, has recently announced a serious incident at the loading port used by Amapá for all shipments of iron concentrate due to a landslip which has damaged the ship loading infrastructure. Until this is resolved cash flows from the Amapá royalty are expected to be disrupted. This income is not lost, and will be recovered once shipping resumes. For more information see www.beadellresources.com.au.

The El Valle-Boinás/Carlés gold mine in Spain continues its ramp up to full production. As the new mine shaft has helped improve mining efficiency, the Group received £0.6m in the first three months of the year. The debenture has now been redeemed and all receipts now represent royalty income and not repayments of principal, and as such will be reflected in the Group's income statement.

Acquisitions and Disposals

In March and April 2013 the Group has made two US$5m advances to Hummingbird Resources PLC in accordance with the term of the royalty financing agreement signed in December 2012. The final US$5m will be paid on completion of a scoping study and further infill drilling when the sums advanced will convert to a 2% NSR royalty on its gold project.

Financial Performance

Royalty income for the first quarter has been above both the preceding quarter and the comparable quarter in 2012.

The Group continues to manage the performance of its strategic mining interests, exiting from certain investments where it no longer considered that a royalty would be forthcoming. This has resulted in a loss of £3.9m on disposal in the first quarter.

Financial Position

The Group remains debt free and ended the first quarter with cash in the bank of £17.7m spread around a number of currencies. The Group also has potential further liquidity in its strategic mining investment portfolio.

Board Appointments

The Group continues to take steps to strengthen its team with the appointment of Mr Michael Blyth as a non-executive director of the Group on March 20, 2013.

Mr Blyth has had a distinguished career as a Chartered Accountant with extensive experience in audit and corporate governance matters. He will make a valuable addition to the Board.

Dividends

Subject to approval at the Annual General Meeting, the Board proposes to pay the final dividend for the financial year ending December 31, 2012 of 5.75p per share on August 7, 2013 to shareholders on the Group's share register at the close of business on June 7, 2013. The shares will be quoted ex-dividend on the London Stock Exchange and the Toronto Stock Exchange on June 5, 2013. As with previous dividends, depending on the share price at the time, the Board will consider whether shareholders will be given the opportunity to elect to receive new shares instead of cash. Should this alternative be offered, the price will be calculated on the basis of the average mid-market closing price of the ordinary shares for the five business days commencing June 5, 2013. The last date for elections under such an alternative, if offered, will be July 19, 2013.

Outlook

Although there are some signs of economic recovery, lower commodity prices have resulted in reduced investor demand for mining stocks. Alternative financing has therefore become increasingly important for junior developers. The Group remains well placed to benefit from these difficult markets and to add significant shareholder value by building and diversifying its royalty portfolio.

Notes to editors:

About Anglo Pacific Group PLC

Anglo Pacific Group PLC is a global natural resources royalties company. The Company's strategy is to expand its mineral royalty interests in long-life mining assets. The Company achieves this through both direct acquisition and investment in projects at the development and production stage. It is a continuing policy of the Company to pay a substantial proportion of these royalties to shareholders as dividends.

Important notice

This news release contains forward-looking statements based on assumptions and reflects Anglo Pacific Group PLC's expectations, estimates and projections of future events as of the date of this release. Forward-looking statements include, without limitation, statements regarding the performance, prospects, opportunities, priorities, targets, goals, objectives, strategies, growth and outlook of Anglo Pacific Group PLC. Often, but not always, forward-looking statements can be identified by the use of words such as "expects", "anticipates", "plans", "believes", "estimates", "seeks", "intends", "targets", "projects", "forecasts", or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.

Forward-looking statements are based upon certain material factors and assumptions that were applied in drawing a conclusion or making a forecast or projection, including assumptions and analyses made by Anglo Pacific Group PLC in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors that are believed to be appropriate in the circumstances. Also, forward-looking statements involve known and unknown risks, uncertainties and other factors that are beyond the Company's control and which may cause the actual results, performance or achievement to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such material factors and assumptions and risks and uncertainties include, among others, those described in the Company's annual information form dated as at June 29, 2010 (available on Anglo Pacific Group PLC's website and at www.sedar.com), which are incorporated by reference into this release and qualify any and all forward-looking statements made in this release.

Although Anglo Pacific Group PLC has attempted to identify factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. There can be no assurance that actual results will be consistent with these forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements herein relate only to events or information as of the date on which the statements are made and, except as specifically required by law, Anglo Pacific Group PLC undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, estimates or opinions, future events or results or otherwise.