Rambler Metals & Mining Plc
LSE : RMM

Rambler Metals & Mining Plc

October 28, 2009 03:00 ET

Rambler Metals and Mining Financial Results Year Ended 31 July 2009

FOR:  RAMBLER METALS & MINING PLC

TSX VENTURE SYMBOL:  RAB
AIM SYMBOL:  RMM

October 28, 2009

Rambler Metals and Mining Financial Results Year Ended 31 July 2009

LONDON, ENGLAND and BAIE VERTE, NEWFOUNDLAND AND LABRADOR--(Marketwire - Oct. 28, 2009) - Rambler Metals and
Mining PLC (TSX VENTURE:RAB)(AIM:RMM) ("Rambler" or the "Company") today reports its financial results and
operational highlights for the year ended 31 July 2009. The principal activity of the Company is carrying out
development and exploration on the Rambler Property, a gold and copper property located on Newfoundland and
Labrador's Baie Verte Peninsula.

Operational Highlights:

- Underground development continued to provide access for pre-production of the Ming Mine and to provide
platforms for exploration drilling.

- The release of an updated NI 43-101 compliant resource at the Ming Mine estimating an equivalent of 80,823
tonnes of contained copper, 161,335 ounces of contained gold and 922,107 ounces of contained silver in the
measured and indicated categories with a further 25,836 tonnes of contained copper, 98,740 ounces of contained
gold and 450,673 ounces of contained silver in the inferred category. This resource update increased in the
higher grade gold rich massive sulphides and was concluded using a commodity price of $1.92 lb Cu, $800 oz Au
and $10 oz Ag.

- Metallurgical testing on the 1807 Zone was completed with copper concentrate grade averaging 29.1% and
average copper recovery at 92.4% with a range between 88.4% and 97%. Precious metal recovery of 67.5% gold and
52.5% silver within the copper concentrate. Further metallurgical testing is planned to optimize the recovery
of precious metals, including any "free gold".

- Exploration drilling continued until 7 January 2009. During fiscal 2009 a total of 5,642 metres was drilled
(2008: 25,323 metres). Primary drilling was carried out on the newly discovered 1806 Zone. Drilling was reduced
due to a Cost Reduction Programme to preserve working capital.

- Completion of an underground engineering study by CSI Mining and Engineering Inc incorporating a mine plan,
schedule and capital programme for the first seven years of the mine. This study formed the basis for the
preparation of a business plan for the Group.

Subsequent Events since Year End:

- Rambler acquired the Nugget Pond gold milling facility from Crew Gold Corporation
(TSX:CRU)(OSLO:CRU)(FRANKFURT:KNC)(OTCBB:CRUGF) for Can$ 3.5 million on 27 October 2009.

- Rambler announced that it is taking a proactive approach in searching for potential gold properties in the
Baie Verte Peninsula. On 21 September 2009, the Company announced it has entered into an option agreement with
Seaside Realty Ltd to earn up to a 50% undivided interest in the Corkscrew/Big Bear Property. On the same date
Rambler also announced that it had signed a confidentiality agreement with Tenacity Gold Mining Company Ltd to
evaluate the potential of developing the Deer Cove deposit.

- On 29 September 2009, Rambler announced the conditional placement of 27,500,000 Ordinary Shares at 20 pence
each to raise approximately Pounds Sterling 5.5 million before expenses. The net proceeds of this fundraising
has been used to fund the acquisition of the Nugget Pond mill, associated engineering and ongoing working
capital requirements.

- On 20 October 2009, during an Extraordinary General Meeting, the shareholders granted authority to the
directors to issue up to 59,385,000 Ordinary Shares in order to allow the directors to issue the shares for the
private placement.

- Rambler is currently engaged in discussions with a number of third parties, with which it holds
confidentiality agreements with, for further project financing.

Financial Highlights:

- There was a net loss for the year ended 31 July 2009 of Pounds Sterling 1,073,929, which is an increase of
Pounds Sterling 339,124 from the year ending 31 July 2008 and the loss per share increased to 1.8p from 1.4p.
Losses were higher as administrative expenses increased Pounds Sterling 139,670 to Pounds Sterling 1,088,439,
mainly due to administrative staff costs which increased Pounds Sterling 181,728 to Pounds Sterling 627,281 due
to the addition of two senior management positions in the first quarter of 2009.

- Cash flows used for operating activities reduced slightly by Pounds Sterling 34,366 to Pounds Sterling
875,143 also as a result of reduced level of cash operating losses. Cash flows used for investing activities
decreased by Pounds Sterling 2.5m to Pounds Sterling 3.4m as a result of the cost reduction programme which
resulted in the suspension of underground drilling and pre-development work.

- Total assets which include accumulated deferred exploration expenditures which increased Pounds Sterling 1.1m
to Pounds Sterling 21.1m. This increase was funded from cash deposits.

- At 27 October 2009, the Group has Pounds Sterling 3.8 million in cash and cash equivalents.

George Ogilvie, President and Chief Executive Officer, commented:

"Rambler achieved some key operational developments throughout the fiscal year which includes an updated NI 43-
101 compliant resource and the completion of the underground engineering study. In addition the Company is
extremely pleased to have negotiated the acquisition of the Nugget Pond mill and carried out a successful
placing to raise Pounds Sterling 5.5m over the past month.

These developments put Rambler on track to reach its goal of becoming a major gold and base metal producer on
the Baie Verte Peninsula. We are confident that Rambler's excellent team of people will be finalising plans to
resume exploration, pre-production development and construction and will succeed in bringing the Ming Mine into
production during fiscal 2011."

The financial results for the year ended 31 July 2009 are available on the Rambler website:
www.ramblermines.com

About the Company

Rambler was founded in 2004 when Altius Minerals Corporation ("Altius"), a Newfoundland and Labrador based
resource company, contributed to the Company's asset base an option to acquire and develop the Rambler
property.

The Rambler property had been a former underground copper and gold producing property that ceased production
when the deposit reached a then third party property boundary. This neighbouring property was subsequently
consolidated before being brought into the Company. The Company now owns a 100% interest in the property.

The principal activity of the Group is carrying out development and exploration on the Rambler Property a
mineral exploration property located on Newfoundland and Labrador's Baie Verte Peninsula.



                             REGISTERED NUMBER: 05101822 (ENGLAND AND WALES)


REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2009 FOR

RAMBLER METALS AND MINING PLC


RAMBLER METALS AND MINING PLC

CONTENTS OF THE FINANCIAL STATEMENTS
                                                         Page

Company Information                                         1

Chairman's Statement                                        2

Management's Discussion and Analysis                        3

Report of the Directors                                    18

Statement of Directors' responsibilities                   20

Corporate Governance                                       21

Independent Auditors' reports                              22

Consolidated income statement                              25

Consolidated statement of recognised income and expenses   26

Company statement of recognised income and expenses        26

Consolidated balance sheet                                 27

Company balance sheet                                      27

Consolidated statement of cash flows                       28

Company statement of cash flows                            28

Notes to the financial statements                          29


RAMBLER METALS AND MINING PLC

COMPANY INFORMATION

FOR THE YEAR ENDED 31 JULY 2009


Directors:          D H W Dobson
                    G Ogilvie
                    B Hinchcliffe
                    S Neamonitis
                    B F Dalton
                    J A Baker
                    L D Goodman
                    J M Roberts
                    J S Thomson (appointed 20 October 2008)

Secretary:          L Little

Registered office:  Salatin House
                    19 Cedar Road
                    Sutton
                    Surrey
                    SM2 5DA

Registered number:  5101822 (England and Wales)

Auditors:           PKF (UK) LLP
                    20 Farringdon Road
                    London
                    EC1M 3AP


RAMBLER METALS AND MINING PLC

CHAIRMAN'S STATEMENT FOR THE YEAR ENDED 31 JULY 2009



We are pleased to report the results for the year ended 31 July 2009.

The principal activity of the Group is the development and exploration of the Rambler copper and gold property
located on Newfoundland and Labrador's Baie Verte Peninsula.

The parent Company's Ordinary Shares were admitted to trading on the London AIM market on 8 April 2005 under
the symbol "RMM" and were listed on the TSX Venture Exchange on 7 February 2007 under the symbol "RAB".

OPERATIONAL HIGHLIGHTS

Key achievements during the year include:

- Underground development to provide platforms for exploration drilling as well as provide access for
preproduction.

- Completion of a Titan geophysical survey producing positive results.

- The release of an updated NI 43-101 compliant resource estimated with combined measured and indicated
resources equivalent to 80,823 tonnes of contained copper, 161,335 ounces of contained gold and 922,107 ounces
of contained silver.

- Completion of an underground engineering study incorporating a mine plan, schedule and capital programme for
the first seven years of the mine. This study formed the basis for the preparation of a business plan for the
Group.

FINANCIAL HIGHLIGHTS

The Consolidated loss after taxation of the Group in respect of the year ended 31 July 2009 amounted to Pounds
Sterling 1,073,929 (a loss per share of 1.8p) versus a loss of Pounds Sterling 734,805 for the year ended 31
July 2008 (a loss per share of 1.4p)

The Group's only source of income during the period was bank interest which amounted to Pounds Sterling 43,137.

The net assets of the Group amounted to Pounds Sterling 20,241,608 as at the end of the year. This includes
intangible assets amounting to Pounds Sterling 17,611,282. Intangible assets consist of accumulated deferred
exploration expenditures in the copper and gold property in Newfoundland and Labrador. The Group's policy is to
capitalise these costs as intangibles until the feasibility of the project is determined

On 29 September 2009, the Group announced the conditional placement of 27,500,000 Ordinary Shares at 20 pence
each to raise approximately Pounds Sterling 5.5 million before expenses. The net proceeds of this fundraising
has been used to fund the acquisition of the Nugget Pond Mill, associated engineering and ongoing working
capital requirements. Subsequently, on 20 October 2009, during an Extraordinary General Meeting, the
shareholders granted authority to the directors to issue up to 59,385,000 Ordinary Shares in order to allow the
directors to (i) issue up to 27,500,000 Ordinary Shares for the private placement; and (ii) provide the
directors with the flexibility to seek further finance. This financing will be adequate to carry the Group for
the forthcoming 12 months.

Management has been successful in meeting key milestones and is well positioned to continue moving the project
forward. My thanks to our employees, officers and directors of the Group for the progress which has been made
during the year and I am optimistic that the 2010 fiscal year will see further encouraging developments.

DHW Dobson

Chairman

27 October 2009

RAMBLER METALS AND MINING PLC

MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED 31 JULY 2009

The following management's discussion and analysis ("MD&A") of Rambler Metals & Mining plc (the "parent
Company") and its subsidiaries (the "Group" or "Rambler") contains forward-looking statements that involve
numerous risks and uncertainties. Our actual results could differ materially from those discussed in such
forward-looking statements as a result of these risks and uncertainties, including those set forth in this
MD&A.

The following discussion provides information that management believes is relevant to an assessment and
understanding of our consolidated results of operations and financial condition. This discussion should be read
in conjunction with our audited financial statements for the year ended 31 July 2009 and the related notes
thereto. These consolidated statements have been prepared in accordance with International Financial Reporting
Standards ("IFRS") and their interpretations adopted by the International Accounting Standards Board ("IASB"),
as adopted by the European Union and with IFRS and their interpretations adopted by the IASB.

This MD&A, which has been prepared as of 27 October 2009, is intended to supplement and complement our audited
consolidated financial statements and notes thereto for the year ended 31 July 2009 prepared in accordance with
IFRS. The presentation currency is British Pounds.

OUR BUSINESS & OPERATIONS REVIEW

The principal activity of the Group is the development and exploration of the Rambler copper and gold property
located on Newfoundland and Labrador's Baie Verte Peninsula.

The parent Company's Ordinary Shares were admitted to trading on the London AIM market on 8 April 2005 under
the symbol "RMM" and were listed on the TSX Venture Exchange on 7 February 2007 under the symbol "RAB".

Operational highlights include:

- The start of a pre-production development phase focusing on high grade resources that could be mined during
an initial start up and early production years. A total of 531 metres of development was carried out during the
period (2008: nil). The main focus was on the 1807 zone with development headings being driven out to the top
and bottom of the known ore resource to establish if the zone extends both up-plunge and down-plunge.

- Cost Reduction Programme - on 7 January 2009, operations at the Ming Mine were scaled back in order to
preserve working capital. As a result, all underground drilling and pre-development work was suspended and
headcount was reduced from 41 employees to 23.

- Exploration Drilling - drilling continued with only one crew until 7 January 2009. During fiscal year2009 a
total of 5,642 metres was drilled (2008: 25,323 metres). During the first quarter, the manpower resource
associated with drilling was reduced to one crew in order to preserve cash. Primary drilling was carried out on
the newly discovered 1806 Zone.

- Positive results from a Titan geophysical survey completed over the Rambler Property during July and August,
2008 were received with 77 separate anomalies of varying significance being identified on the nine survey
profiles. These results will narrow the Group's focus and benefit future exploration drilling plans.

- Metallurgical testing on the 1807 Zone was completed and included the following highlights:

-- The copper concentrate grade averaged 29.1%.

-- The average copper recovery was 92.4% with a range between 88.4% and 97%.

-- A defined precious metal recovery of 67.5% gold and 52.5% silver within the copper concentrate. Further
metallurgical testing is planned to optimize the recovery of precious metals including any "free gold".

-- Batch floatation residence time was between 15 and 20 minutes for each stage.

-- The optimum reagent scheme was un-complex and common for base metal concentrators. All deleterious materials
including zinc, lead, arsenic, bismuth and mercury were below maximum allowable values for a typical copper
concentrate.

-- Test results will allow for the design of a process concentrator that will optimize the recovery of copper
and rejection of zinc.

-- Standard waste management systems will be employed to assure environmental compliance.

- On 26 February 2009 the Company released an updated NI 43-101 Resource Estimate which showed:

-- Measured Resources: 1,151,000 tonnes of ore @ 2.14% copper, 2.40 g/t gold, 14.11 g/t silver, 0.78% Zinc

-- Indicated Resources: 2,500,000 tonnes of ore @ 2.25% copper, 0.9 g/t gold, 4.97 g/t silver. 0.21% Zinc

-- Inferred Resources: 1,498,000 tonnes of ore @ 1.72% copper, 2.05 g/t gold, 9.36 g/t silver, 0.63% Zinc

-- Total Resources (measured and indicated): 3,651,000 tonnes of ore @ 2.21% copper, 1.37 g/t gold, 7.86 g/t
silver, 0.39% Zinc

This resource update was concluded using adjusted commodity price assumptions that better reflect the reality
of the mining environment today i.e. US$1.92 lb copper, US$800 oz gold and US$10 oz silver. Importantly the
resource update increased in the higher grade gold rich massive sulphides when compared to the first resource
estimate, which was issued in April 2008. This development improves the company's initial mining plan which
targets areas of higher grade mineralization until commodity prices improve allowing the Company to then bulk
mine the footwall deposit.

On 8 April 2009 the Company filed the NI 43-101 Technical Report.

- Underground Engineering Study - in May 2009 the Company's Underground Engineering was completed by CSI Mining
and Engineering Inc. This study incorporates a mine plan and schedule, a capital program including recommended
equipment and cost estimates for the first seven years of the mine where a high grade, low tonnage scenario is
envisaged. This study formed the basis for the Business Plan and Economic Analysis to be used in any future
fund raising by the Company.

- Headcount - personnel at the end of the fiscal year was 23 employees (2008: 45). This decrease was the result
of the Cost Reduction Programme implemented in January 2009.

SELECTED FINANCIAL INFORMATION

The following selected financial information should be read in conjunction with the Group's consolidated
financial statements.



----------------------------------------------------------------------------
Selected Annual Financial Information     12 months   12 months   12 months
All amounts in Pounds Sterling,               ended       ended       ended
 except shares and per share figures        31 July     31 July     31 July
                                               2009        2008        2007
----------------------------------------------------------------------------
Revenue                                           -           -           -
Administrative Expenses                   1,088,439     948,769     861,114
Bank Interest Receivable                     43,137     185,607     148,793
Net loss                                 (1,073,929)   (734,805)   (669,229)
Per share (basic and diluted)                 (1.8p)      (1.4p)      (1.6p)
Cash Flow used for operating activities    (875,143)   (909,509)   (638,246)
Cash Flow used for investing activities  (3,365,319) (5,886,095) (4,748,642)
Cash Flow (used for)/provided from
 financing activities                       (65,127)  5,248,651   6,241,769
Net (decrease) increase in cash          (4,305,589) (1,546,953)    854,881
Cash & Cash Equivalents at end of period  1,168,727   5,107,509   6,590,372
Total Assets                             21,111,161  20,043,834  14,872,939
Total Liabilities                           869,553   1,311,233   1,651,399
Working Capital                             835,740   4,440,031   5,749,937
Weighted average number of shares
 outstanding                             59,385,000  51,516,712  41,939,754
----------------------------------------------------------------------------



Review of years ending 31 July 2009 and 31 July 2008

The Group's only source of income since incorporation has been bank deposit interest.

The Group reported a net loss for the year ended 31 July 2009 of Pounds Sterling 1,073,929 which is an increase
of Pounds Sterling 339,124 from the year ending 31 July 2008. As a consequence the loss per share increased to
1.8p from 1.4p. Losses were higher as administrative expenses increased Pounds Sterling 139,670 to Pounds
Sterling 1,088,439. Administrative staff costs increased Pounds Sterling 181,728 to Pounds Sterling 627,281.
These costs included the addition of two senior management positions in the first quarter of 2009, the General
Manager and Financial Controller and an increase in share based payment charges of Pounds Sterling 36,476.
Legal and professional fees reduced by Pounds Sterling 95,763 compared to fiscal 2008 due to one-off legal fees
associated with investigating if the Company could take advantage of 'flow-through' financing rules in Canada
and depreciation charges increased by Pounds Sterling 53,254 due to an increase in the value of fixed assets.
Interest income was Pounds Sterling 142,470 lower at Pounds Sterling 43,137 as a result of lower cash balances
and reductions in interest rates.

Cash flows used for operating activities reduced slightly by Pounds Sterling 34,366 to Pounds Sterling 875,143
also as a result of reduced level of cash operating losses. Cash flows used for investing activities decreased
by Pounds Sterling 2,520,776 to Pounds Sterling 3,365,319 as a result of the cost reduction programme which
resulted in the suspension of underground drilling and pre-development work. Cash flows (used for)/provided by
financing activities decreased by Pounds Sterling 5,313,778 to Pounds Sterling 65,127 due to a placing during
the quarter ended 30 April 2008.

Total assets which include accumulated deferred exploration expenditures which increased Pounds Sterling
1,067,327 to Pounds Sterling 21,111,161. This increase was funded from cash deposits.

Review of the quarter ending 31 July 2009 compared to the quarter ended 31 July 2008:



----------------------------------------------------------------------------
Selected Quarterly Financial Information           3 months        3 months
All amounts in Pounds Sterling, except                ended           ended
 shares and per share figures                       31 July         31 July
                                                       2009            2008
----------------------------------------------------------------------------
Revenue                                                   -               -
Administrative Expenses                             253,335         236,526
Bank Interest Receivable                                286          40,910
Net (loss)                                         (255,360)       (133,674)
Loss per share in pence (basic and diluted)          (0.43p)         (0.20p)
Cash Flow (used) for operating activities          (143,873)       (248,240)
Cash Flow (used) for investing activities          (473,114)     (1,445,842)
Cash Flow (used) for financing activities            (7,488)        (70,099)
Net (decrease) in cash                             (624,475)     (1,764,181)
----------------------------------------------------------------------------



- Administrative expenses increased slightly by Pounds Sterling 16,909 to Pounds Sterling 253,335 mainly as a
result of an increased share based payment charge of Pounds Sterling 13,953 arising from the grant of
additional share options in November 2008.

- The Group recorded a loss of Pounds Sterling 255,360 for the quarter ended 31 July 2009, an increase of
Pounds Sterling 121,686. Losses were higher mainly as a result of a reduction in deferred tax credits of Pounds
Sterling 64,210 and bank deposit interest of Pounds Sterling 40,624.

- Cash flow used for operating activities reduced by Pounds Sterling 104,367 to Pounds Sterling 143,873 as a
result of reduced cash operating losses and trade payables.

- Cash flow used for investing activities reduced by Pounds Sterling 972,728 as a result of the cost reduction
programme reducing expenditure on evaluation and exploration by Pounds Sterling 670,259 and on related
property, plant and equipment by Pounds Sterling 342,747.

- Cash flow used for financing activities reduced by Pounds Sterling 62,611 as a result of reduced finance
lease repayments.

- Cash and Cash equivalents decreased Pounds Sterling 624,475 during the quarter, a reduction of Pounds
Sterling 1,139,706 reflecting the suspension of underground drilling and pre-development work.

Compared to the third quarter 2009:

- Administrative expenses reduced slightly by Pounds Sterling 13,819 to Pounds Sterling 253,335.

- Cash and Cash equivalents decreased Pounds Sterling 652,920 to Pounds Sterling 1,168,727 reflecting an
increase in intangible assets of Pounds Sterling 663,929 to Pounds Sterling 17,611,282 as the Group continued
to invest in exploration activity during the quarter.



SUMMARY OF QUARTERLY RESULTS

Quarterly Results (all amounts in British Pounds except per share figures)

                                    4th         3rd         2nd         1st
Fiscal 2009                     Quarter     Quarter     Quarter     Quarter
-----------
Revenue                               -           -           -           -
Net loss                       (255,360)   (273,148)   (332,879)   (212,542)
Loss per share basic &
 diluted (in pence)               (0.43)      (0.45)      (0.56)      (0.36)

Fiscal 2008
-----------
Revenue                               -           -           -           -
Net Loss                       (131,375)   (229,757)   (238,377)   (135,296)
Loss per share basic &
 diluted (in pence)               (0.23)      (0.45)      (0.48)      (0.27)



In the second quarter of Fiscal 2008 administrative expenses increased as a result of a share based payment
charge associated with the grant of share options. The reduction in losses for the fourth quarter of 2008 is
due to a deferred tax credit of Pounds Sterling 70,303 and the increase in losses in the second quarter of 2009
is due to a reduction in bank interest received and an increase in administrative salaries together with the
issue of additional share options. Losses for the third and fourth quarters of 2009 started to reduce as a
result of a cost reduction programme implemented by the Company.

OUTLOOK

In the near future management expects to:

- Complete the detailed engineering and retrofit of the Nugget Pond mill, located 40 km from the Ming Mine to
process base metal sulphides from the Mine.

- Prepare and submit documentation for Environmental approval.

- Finalise plans to resume exploration, pre-production development and construction and to bring the mine into
production during fiscal 2011.

LIQUIDITY, CAPITAL RESOURCES AND FINANCIAL POSITION

To date, the Group has relied on shareholder funding to finance its operations. With finite cash resources and
no material income, the liquidity risk is significant and is managed by controls over expenditure. Success will
depend largely upon the outcome of ongoing and future exploration and evaluation programmes. Given the nature
of the Group's current activities the entity will remain dependent on a mixture of debt and equity funding in
the short to medium term until such a time as the Group becomes self-financing from the commercial production
of mineral resources.

The majority of the Group's expenses are incurred in the Canadian dollar. The Group's principal exchange rate
exposure is therefore related to movements between the Canadian Dollar and Sterling.

The Group's cash resources are held in Sterling and Canadian Dollars. The Group has a downside exposure to any
strengthening of the Canadian Dollar as this would increase expenses in Sterling terms. This risk is mitigated
by reviewing the holding of cash balances in Canadian Dollars. Any weakening of the Canadian Dollar would
however result in the reduction of the expenses in Sterling terms and preserve the Group's cash resources. In
addition, any such movements would affect the Consolidated Balance Sheet when the net assets of the Canadian
Subsidiary are translated into Sterling.

As a result of the Group's main assets and its subsidiary being held in Canada which has a functional currency
different to the presentational currency, the Group's balance sheet may be affected significantly by movements
in the GB pound to the Canadian Dollar. The Group does not hedge its exposure of foreign investments held in
foreign currencies. There is no significant impact on profit or loss from foreign currency movements associated
with the Canadian subsidiary's assets and liabilities as the foreign currency gains or losses are recorded in
the translation reserve.

Exchange rate fluctuations may adversely affect the Group`s financial position and results. The following table
details the Group`s sensitivity to a 10% strengthening and weakening in the Canadian Dollar against the GB
Pound. 10% represents management's assessment of the reasonable possible exposure.



----------------------------------------------------------------------------
                                                    Equity
                                 -------------------------------------------
                                               2009                    2008
----------------------------------------------------------------------------
                                    Pounds Sterling         Pounds Sterling
----------------------------------------------------------------------------
10% weakening of Canadian Dollar         (2,029,441)             (1,589,116)
----------------------------------------------------------------------------
10% strengthening of Canadian Dollar      2,254,933               1,748,249
----------------------------------------------------------------------------



Credit risk

With effect from July 2007, the Group has held the majority of its cash resources in Canadian Dollars given
that the majority of the Group's outgoings are denominated in this currency. As at 31 July 2009, 81% of the
Group's cash resources were invested in short term deposit. Given the current climate, the Group has taken a
very risk averse approach to management of cash resources and closely monitors events and associated risks on a
continuous basis. There is little perceived credit risk in respect of trade and other receivables. The Group's
maximum exposure to credit risk at 31 July 2009 was represented by receivables and cash resources.

Interest rate risk

The Group's policy is to retain its surplus funds on the most advantageous term of deposit available up to
twelve month's maximum duration.

If the interest rate on deposits were to fluctuate by 1% there would be no material effect on the Group's
reported result.

Cash, short terms deposits and Canadian Government Treasury Bills (expressed in British Pounds) were as
follows:



----------------------------------------------------------------------------
At 31 July 2009                   Fixed Rate         Floating         Total
Currency                              Assets      Rate Assets
----------------------------------------------------------------------------
British Pound                              -           22,746        22,746
----------------------------------------------------------------------------
Canadian Dollars                     951,171          194,810     1,145,981
----------------------------------------------------------------------------
Total                                951,171          217,556     1,168,727
----------------------------------------------------------------------------

----------------------------------------------------------------------------
At 31 July 2008                   Fixed Rate         Floating         Total
Currency                              Assets      Rate Assets
----------------------------------------------------------------------------
British Pound                      1,200,000           98,387     1,298,387
----------------------------------------------------------------------------
Canadian Dollars                   3,176,010          633,112     3,809,122
----------------------------------------------------------------------------
Total                              4,376,010          731,499     5,107,509
----------------------------------------------------------------------------



At 31 July 2009, the Group had outstanding obligations, including interest, relating to bank loans and leases
of Pounds Sterling 586,790.

The Group utilised Pounds Sterling 875,143 (2008:  Pounds Sterling 909,509) to finance operating cash flows
during the year.

Cash flows used by investing activities decreased by Pounds Sterling 2,520,776 to Pounds Sterling 3,365,319
primarily as a result of the cost reduction programme which resulted in the suspension of underground drilling
and pre-development work.

Cash flows (used for) provided by financing activities decreased by Pounds Sterling 5,313,778 to Pounds
Sterling 65,127 due to a placing during the quarter ended 30 April 2008.

Interest received reduced in line with lower cash balances on deposit during the last quarter of the year.
Average interest rates were 0.35% and 0.84% on British Pound and Canadian Dollar deposits respectively. (2008:
5.02%, 2.36%)

Management believes that the Group has sufficient flexibility to manage expenditure to fund operations for the
next 12 months.

At 27 October 2009, the Group has Pounds Sterling 3.8 million in cash and cash equivalents (with the proportion
invested in short term deposits remaining consistent with year end).

SUBSEQUENT EVENTS

On 9 September 2009, the company signed a sale and purchase agreement to acquire the Nugget Pond mill for Can$
3.5 million.

On 21 September 2009, the company signed a confidentiality agreement with Tenacity Gold Mining Company Ltd to
evaluate the potential of developing the Deer Cove deposit. The deposit is located on the Baie Verte Peninsula
of Newfoundland, just 50 kilometres from the Nugget Pond mill.

On 21 September 2009, the company announced it has entered into an option agreement with Seaside Realty Ltd
(Seaside) to earn up to a 50% undivided interest in the Corkscrew/Big Bear Property, also located on the Baie
Verte Peninsula. As outlined in the agreement Rambler will assume project management of the property for two
years. During which time Rambler will be responsible for all geologic compilation and exploration management
while Seaside will be responsible for all diamond drilling related costs.

On 29 September 2009, the Group announced the conditional placement of 27,500,000 Ordinary Shares at 20 pence
each to raise approximately Pounds Sterling 5.5 million before expenses. Subsequently, on 20 October 2009,
during an Extraordinary General Meeting, the shareholders granted authority to the directors to issue up to
59,385,000 Ordinary Shares in order to allow the directors to issue the shares for the private placement and to
provide them with the flexibility to seek further finance. Some of the proceeds from this fundraising was used
to complete the acquisition of the Nugget Pond mill on 27 October 2009. The remainder of the proceeds will be
used to finance ongoing engineering projects and fund working capital requirements.

COMMITMENTS



As at 31 July 2009 capital commitments included:
----------------------------------------------------------
                                           Pounds Sterling
----------------------------------------------------------

----------------------------------------------------------
Pumps                                               25,738
                                                    ------
----------------------------------------------------------

----------------------------------------------------------
TOTAL                                               25,738
                                                    ------
----------------------------------------------------------



FINANCIAL INSTRUMENTS

The Board of Directors determines, as required, the degree to which it is appropriate to use financial
instruments and hedging techniques to mitigate risks. The main risks for which such instruments may be
appropriate are foreign exchange risk, interest rate risk, credit risk and liquidity risk. With effect from
July 2007, the Group has held the majority of its cash resources in Canadian Dollars given that the majority of
the Group's outgoings are denominated in this currency. The directors take a very risk averse approach to
management of cash resources and continue to closely monitoring events and associated risks. There were no
derivative instruments outstanding at 31 July 2009.

RELATED PARTY TRANSACTIONS

The parent company has a related party relationship with its subsidiary, and with its Directors and executive
officers. Brian Dalton and John Baker, directors of the Group are also directors of Altius Resources Inc
("Altius"), a 14% shareholder in the parent company.

A total of Pounds Sterling 269,409 (2008: Pounds Sterling 266,889) was paid to key management personnel during
the year. Payments of fees to non-executive directors were suspended during the year in order to preserve cash.
At 31 July 2009 fees of Pounds Sterling 22,267 remained outstanding (2008: Pounds Sterling 6,267)

The following expenses reimbursements were payable to directors at 31 July 2009:



S Neamonitis   Pounds Sterling nil (31 July 2008: Pounds Sterling 1,073)
B Hinchcliffe  Pounds Sterling nil (31 July 2008: Pounds Sterling 1,313)



Brian Dalton and John Baker, directors of the company are also directors of Altius Resources Inc ("Altius"), a
20% shareholder in the company.

Consultancy fees were payable to Altius Mineral Corporation for the year ended 31 July 2009 for the consultancy
services of J Baker & B Dalton amounting to Pounds Sterling 13,200 (31 July 2008: Pounds Sterling 13,200). This
balance was accrued at the period end.

CRITICAL ACCOUNTING ESTIMATES AND POLICIES

Going Concern

The Group's ability to continue as a going concern, and the recoverability of its mineral properties, is
dependent on the copper and gold prices, its ability to fund its development and exploration programs, and to
manage and generate positive cash flows from operations in the future. These financial statements do not
reflect the adjustments to carrying values of assets and liabilities and the reported expenses and balance
sheet classifications that would be necessary should the going concern assumption be inappropriate, and these
adjustments could be material.

In common with many exploration companies, the Group raises finance for its exploration and appraisal
activities in discrete tranches. On 20 October 2009, during an Extraordinary General Meeting, the shareholders
granted authority for the private placement of 27,500,000 Ordinary Shares at 20 pence each to raise
approximately Pounds Sterling 5.5 million before expenses. The net proceeds of this fundraising has been used
to fund the acquisition of the Nugget Pond mill referred to in the subsequent events section above, associated
engineering and ongoing working capital requirements. In addition to this private placement, the Directors and
management are currently evaluating a number of debt financing proposals in order to finance the project
through into production. The Directors are confident the funds provided by closing of the private placement
will be sufficient to maintain current operations for the forthcoming 12 months and therefore have concluded
that the Group is a going concern.

Impairment Assessment of Exploration Properties

The Directors have assessed whether the exploration and evaluation costs have suffered any impairment by
considering the Group's business plan which includes resource estimates, future processing capacity, the
forward market and longer term price estimates for copper and gold. Management's estimates of these factors are
subject to risk and uncertainties affecting the recoverability of the Group's exploration and evaluation costs.
Any changes to these estimates may result in the recognition of an impairment charge with a corresponding
reduction in the carrying value of such assets.

Stock Based Compensation

In the 2009 fiscal year, the parent company granted a number of individual's employee stock options. The number
of share options being granted is considered by the directors to be consistent with companies of a similar size
and profile to Rambler. The parent company is likely to grant individuals employee stock options again in the
future. The Group calculates the cost of share based payments using the Black-Scholes model. Inputs into the
model in respect of the expected option life and the volatility are subject to management estimate and any
changes to these estimates may have a significant effect on the cost.

CHANGES IN ACCOUNTING POLICIES

There is no material impact or standards adopted in the year. In addition, there have been no standards issued
but not yet effective that have been early adopted.

International Financial Reporting Standards that have recently been issued or amended but are not yet effective
have not been adopted for the annual reporting period ended 31 July 2009:



                          Nature of
                          change to            Application     Application
IFRS       Title          accounting           date of         date for
/Amendment                policy               standard        Group
----------------------------------------------------------------------------
IAS 1      Presentation   No change to         1 January 2009  1 August 2009
revised/   of financial   accounting policy,
amended    statements     therefore, no impact
----------------------------------------------------------------------------
IAS 7     Statement of    No change to         1 January 2010  1 August 2010
amendment cash flows      accounting policy,
                          therefore, no impact
----------------------------------------------------------------------------
IAS 16    Property, plant No change to         1 January 2009  1 August 2009
amendment and equipment   accounting policy,
                          therefore, no impact
----------------------------------------------------------------------------
IAS 17    Leases          No change to         1 January 2010  1 August 2010
amendment                 accounting policy,
                          therefore, no impact
----------------------------------------------------------------------------
IAS 23    Borrowing costs Finance costs        1 January 2009  1 August 2009
amendment                 directly related to
                          non-current assets
                          will be capitalised
----------------------------------------------------------------------------
IAS 27    Consolidated    No change to         1 January 2009  1 August 2009
amendment and separate    accounting policy,
          financial       therefore, no impact
          statements
----------------------------------------------------------------------------
IAS 32    Financial       No change to         1 January 2009  1 August 2009
amendment instruments:    accounting policy,
          Presentation    therefore, no impact
----------------------------------------------------------------------------
IAS 36    Impairment      No change to         1 January 2009  1 August 2009
amendment of assets       accounting policy,
                          therefore, no impact
----------------------------------------------------------------------------
IAS 39    Financial       No change to         1 January 2009  1 August 2009
amendment instruments     accounting policy,
                          therefore, no impact
----------------------------------------------------------------------------
IFRS 3/   Business        No change to         1 July 2009     1 August 2009
IAS 27    combinations/   accounting policy,
revised   consolidated    therefore, no impact
          and separate
          financial
          statements
----------------------------------------------------------------------------
IFRS 1    First time      No change to         1 January 2009  1 August 2009
amended   adoption of     accounting policy,
          IFRS            therefore, no impact
----------------------------------------------------------------------------
IFRS 2    Share-based     No change to         1 January 2009  1 August 2009
amended   payment         accounting policy,
                          therefore, no impact
----------------------------------------------------------------------------
IFRS 7    Financial       No change to         1 January 2009  1 August 2009
revised   instruments:    accounting policy,
          Disclosures     therefore, no impact
----------------------------------------------------------------------------
IFRS 8    Operating       No change to         Supersedes      1 August 2009
          segments        accounting policy,   IAS 14 from
                          therefore, no impact 1 January 2009
----------------------------------------------------------------------------
IFRIC 16  Hedges of a     No change to         1 October 2008  1 August 2009
          net investment  accounting policy,
          in a foreign    therefore, no impact
          operation
----------------------------------------------------------------------------
IFRIC 17  Distribution    No change to         1 July 2009     1 August 2009
          of non-cash     accounting policy,
          assets to       therefore, no impact
          owners
----------------------------------------------------------------------------
IFRIC 18  Transfers of    No change to         1 July 2009     1 August 2009
          assets from     accounting policy,
          customers       therefore, no impact
----------------------------------------------------------------------------



Management have reviewed the impact of the above standards and interpretations and have concluded that they
will not result in any material changes to reported results.



OUTSTANDING SHARE DATA

As at the date of this MD&A the following securities are outstanding:

Ordinary Shares                 86,885,000

Compensation options               478,200

Options                          3,313,000
                                 ---------

Total                           90,676,200
                                ----------



Further information

Additional information relating to the Group is on SEDAR at www.sedar.com and on the Group's web site at
www.ramblermines.com.

FORWARD-LOOKING INFORMATION

This MD&A contains "forward-looking information" which may include, but is not limited to, statements with
respect to the future financial or operating performance of the Group, its subsidiaries and its projects,
exploration expenditures, costs and timing of the development of new deposits, costs and timing of future
exploration, requirements for additional capital, government regulation of mining exploration, environmental
risks, title disputes or claims and limitations of insurance coverage. Often, but not always, forward-looking
statements can be identified by the use of words such as "plans", "expects", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" 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 involve known
and unknown risks, uncertainties and other factors which may cause the actual results, performance or
achievements of the parent company and/or its subsidiaries to be materially different from any future results,
performance or achievements expressed or implied by the forward-looking statements. Such factors include, among
others, general business, economic, competitive, political and social uncertainties; the actual results of
current exploration activities; conclusions of economic evaluations; fluctuations in the relative value of
United States dollars, Canadian dollars and British Pounds; changes in planned parameters as plans continue to
be refined; future prices of metals and commodities; possible variations of ore grade or recovery rates;
failure of equipment; accidents and other risks of the mining exploration industry; political instability,
insurrection or war; delays in obtaining governmental approvals or financing or in the completion of
development or construction activities, as well as those factors discussed in the section entitled "Risk
Factors" in this MD&A. Although the Group has attempted to identify important 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.
Forward-looking statements contained herein are made as of the date of this MD&A and the Group disclaims any
obligation to update any forward-looking statements, whether as a result of new information, future events or
results or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as
actual results and future events could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking statements.

RISK FACTORS

An investment in Rambler should be considered highly speculative due to its present stage of development, the
nature of its operations and certain other factors. An investment in Rambler's securities should only be made
by persons who can afford the total loss of their investment. The risk factors which should be taken into
account in assessing Rambler's activities and an investment in securities of Rambler include, but are not
limited to, those set out below. Should any one or more of these risks occur, it could have a material adverse
effect on the value of securities of Rambler and the business, prospects, assets, financial position or
operating results of Rambler, any one of which may have a significant adverse effect on the price or value of
any securities of Rambler.

The risks noted below do not necessarily comprise all those faced by Rambler and are not intended to be
presented in any assumed order of likelihood or magnitude of consequences.

Dependence on a Single Property

Rambler's activities are focused primarily on the Rambler Property. Any adverse changes or developments
affecting this property would have a material and adverse effect on Rambler's business, financial condition,
results of operations and prospects.

Success of Current and Future Exploration Cannot be Assured

The exploration and development of mineral deposits involves significant financial risks over a prolonged
period of time, which even a combination of careful evaluation, experience and knowledge cannot eliminate.
While discovery of a mineral structure may result in substantial rewards, few properties which are explored are
ultimately developed into producing mines. Major expenditure may be required to establish mineral reserves by
drilling and to construct mining and processing facilities at a site. It is impossible to ensure that
exploration will result in the discovery of new or further economically viable mineral deposits or in
additional profitable commercial mining operations.

Liquidity and Investment Risk

The share prices of publicly quoted companies can be volatile. The price of shares is dependent upon a number
of factors some of which are general or market or sector specific and others that are specific to the Group.

Although the Ordinary Shares are traded on AIM and TSX-V, this should not be taken as implying that there will
be a liquid market for them. An investment in the Ordinary Shares may be difficult to realize. Accordingly,
each prospective investor should view his purchase of the Ordinary Shares as a long-term investment and should
not consider such purchase unless he is certain he will not have to liquidate his investment for an indefinite
period of time.

The value of the Ordinary Shares may go down as well as up. Investors may therefore realise less than their
original investment, or sustain a total loss of their investment.

The Directors, their associates and Altius control approximately 24.8 % of the Group's share capital. As a
result, these shareholders will be able to exercise significant influence or control over matters requiring
shareholder approval, including the election of directors and approval of significant corporate transactions.

Copper and Gold Price Volatility

Rambler's revenues, if any, are expected to be derived from the extraction and sale of copper and gold
concentrate. The prices of copper and gold have fluctuated widely, particularly in recent years, and are
affected by numerous factors beyond Rambler's control including international, economic and political trends,
expectations of inflation, currency exchange fluctuations, interest rates, global or regional consumption
patterns, speculative activities and increased production due to new extraction developments and improved
extraction and production methods. In recent years the price of copper has been affected by changes in the
worldwide balance of copper supply and demand, largely resulting from economic growth and political conditions
in China and other major developing economies. While this demand has resulted in higher prices for copper in
recent years, if Chinese economic growth slows, it could result in lower demand for copper. The effect of these
factors on the price of copper and gold cannot be accurately predicted. Any material decrease in the prevailing
price of copper in particular for any significant period of time would have an adverse and material impact on
the economic evaluations contained in this MD&A and on Rambler's results of operations and financial condition.

Exploration, Mining and Processing Licences

The Group's proposed exploration, mining and processing activities are dependent upon the grant of appropriate
licences, concessions, leases, permits and regulatory consents, which may be withdrawn or made subject to
limitations. There is no guarantee that, upon completion of any exploration a mining licence or lease will be
granted with respect to exploration territory. There can be no assurance that any exploration licence will be
renewed or if so, on what terms.

These licences place a range of past, current and future obligations on the Group. In some cases there could be
adverse consequences for breach of these obligations, ranging from penalties to, in extreme cases, suspension
or termination of the relevant licence or related contract.

Short Operating History

The Group does not have a long established trading record. The Group is at an early stage of development and
success will depend upon its ability to manage the exploration of the Rambler Property and to identify and take
advantage of further opportunities that may arise.

The Group has not earned profits to date and there is no assurance that it will do so in the future.

The Group plans to explore and develop its properties through the use of third party contractors and
consultants. However, there can be no assurance that it will be able to complete its exploration programmes on
time or to budget, or that the current personnel, systems, procedures and controls will be adequate to support
the Group's operations. Any failure of management to identify problems at an early stage could have an adverse
impact on the Group's financial performance.

Dependence on Key Personnel

The Group relies on a limited number of key directors and personnel. However, there is no assurance that the
Group will be able to retain such key directors and personnel. If such personnel do not remain active in the
Group's business, its operations could be adversely affected.

Dependence on Third Parties

The Group makes use of independent consultants and contractors in the development of its business and
operations. Accordingly, the success of the Group's operations will be dependent upon the performance of
services by such third parties, and failure to do so may seriously affect or prevent the Group from fulfilling
its planned operational goals.

Acquisition Strategy

It is the intention of the Group to grow through the development of the Rambler Property and through
acquisition. However, there can be no assurance that the Group will be able to successfully identify and
acquire other base metal properties business beyond the Rambler Property.

Although it is the Group's intention to utilize the issuance of new Ordinary Shares to satisfy all or part of
any consideration payable for acquisitions, prospective vendors may not be prepared to accept these shares.

The ability of the Group to make appropriate acquisitions is dependent upon suitable opportunities becoming
available to the Group.

Additional Requirement for Capital

The Group will need to raise additional capital in due course to fund anticipated future operations. Future
development of the Rambler Property, future acquisitions, base metal prices, environmental rehabilitation or
restitution, revenues, taxes, capital expenditures and operating expenses and geological and processing
successes are all factors which will have an impact on the amount of additional capital required.

Any additional equity financing may be dilutive to shareholders and debt financing, if available, may involve
restrictions on financing and operating activities. There is no assurance that additional financing will be
available on terms acceptable to the Group. If the Group is unable to obtain additional financing as needed, it
may be required to reduce the scope of its operations or anticipated expansion, forfeit its interests in some
or all of its properties, incur financial penalties and reduce or terminate its operations.

Geological Risks

Geological conditions can only be predicted with a certain degree of accuracy. Any base metal exploration
programme entails risks relating to the location of economic ore bodies and the development of appropriate
metallurgical processes. While the Group has had the benefit of a review of the Rambler Property by a qualified
independent geologist, no assurance can be given that any exploration programme on the Rambler Property or on
any properties acquired by the Group will result in any new commercial mining operation or in the discovery of
new resources.

Currency

Fluctuations in currency exchange rates may adversely affect the Group's financial position. Management has
determined the British pound as the Group's reporting currency. Fluctuations in currency exchange rates,
particularly equipment acquisition costs denominated in currencies other than British Pounds, may significantly
impact the Group's financial position and results. The Group does not have in place a policy for managing or
controlling foreign currency risks since, to date, the Group's primary activities have not resulted in material
exposure to foreign currency risk.

Currency fluctuations may affect the cash flow that the Group hopes to realize from its operations, as minerals
and base metals are sold and traded on the world markets in United States Dollars. The Group's anticipated
costs will be incurred primarily in British Pounds sterling and Canadian Dollars.

Environmental Regulations

The Group is subject to substantial environmental and other regulatory requirements and such regulations are
becoming more stringent. All phases of our development operations are subject to environmental regulations.
Environmental legislation is evolving in a manner which will require stricter standards and enforcement,
increased fines and penalties for non-compliance, more stringent environmental assessments of proposed projects
and a heightened degree of responsibility for companies and their officers, directors and employees. There is
no assurance that future changes in environmental regulation, if any, will not adversely affect our operations.
Environmental hazards currently unknown to the Group may exist on the properties in which interests are held
and which may have been caused by previous or existing owners or operators of the properties.

The Group's operations are subject to environmental regulation inherent in the mineral exploration, mining and
processing industry (including regular environmental impact assessments and permitting). Environmental
legislation and permitting are likely to evolve in a manner which will require stricter standards and
enforcement, increased fines and penalties for non-compliance, more stringent environmental assessments of
proposed projects and a heightened degree of responsibility for companies and their directors and employees.
Ineffective environmental management or accidental spillage of toxic materials could result in a significant
environmental disaster resulting in large clean-up costs, potential fines or mine closure.

The Group is unable to predict the effect of additional environmental law and regulations which may be adopted
in the future, and the cost of the Group's operations may be increased by changes in legislative requirements
or increased legal liabilities within the jurisdictions in which the Group operates or will operate.

Lack of Earnings and Dividend Record

The Group has no earnings or dividend record. No dividends on Ordinary Shares have been paid since
incorporation and the Group does not anticipate doing so for the foreseeable future. Payments of any dividends
will be at the discretion of the Board of Directors after taking into account many factors, including the
Group's financial condition and current and anticipated cash needs.

Uninsurable Losses

The Group as a participant in exploration and mining programmes may become subject to liability for hazards
that cannot be insured or against which it may elect not to be insured because of high premium costs.

RAMBLER METALS AND MINING PLC

REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 JULY 2009

The Directors present their report with the audited financial statements of the Group for the year ended 31
July 2009.

PRINCIPAL ACTIVITY

The principal activity of the Group is the development and exploration programme of the Rambler copper and gold
property in Baie Verte, Newfoundland, Canada. The principal activity of the parent company is that of a holding
company.

REVIEW OF BUSINESS

A review of the Group's business and prospects is set out in the Management's Discussion and Analysis.

FUTURE DEVELOPMENTS

The Group is looking forward to completing the detailed engineering and retrofit of the Nugget Pond mill,
located 40 km from the Ming Mine to process base metal sulphides from the Mine and finalising its plans to
resume exploration, pre-production development and construction and to bring the mine into production during
2010.

DIVIDENDS

No dividends will be distributed for the year ended 31 July 2009.

DIRECTORS

The Directors during the period under review were:



J A Baker
B F Dalton
D H W Dobson
S Neamonitis
G Ogilvie
J M Roberts
L D Goodman
B Hinchcliffe
J Thomson (appointed 20 October 2008)



POLICY ON PAYMENT OF CREDITORS

It is the Group's and Company's policy to settle all amounts due to creditors in accordance with agreed terms
of supply and market practice in the relevant country.

The Group's average creditor payment period at 31 July 2009 was 21 days (2008: 24 days). The Company's average
creditor payment period at 31 July 2009 was 20 days (2008: 16 days).

POLITICAL AND CHARITABLE CONTRIBUTIONS

During the year, the Group made charitable donations of Pounds Sterling 52 (2008: Pounds Sterling 2,942) to a
charity in the Baie Verte area.

SUBSTANTIAL SHARE INTERESTS

At 27 October 2009 the parent Company was aware of the following substantial share interests:



                              Number of Ordinary Shares   % of Share Capital

CDS & Co                                     14,348,422               16.51%
Altius Resources Inc.                        12,000,000               13.81%
Zila Corporation                              6,499,999                7.48%
SVM Asset Management                          4,360,000                5.02%
Credit Suisse Client Nominees
 (UK) Limited                                 2,000,000                2.30%
Vidacos Nominees Limited                      1,900,001                2.18%



FINANCIAL INSTRUMENTS

The Board of Directors determines, as required, the degree to which it is appropriate to use financial
instruments and hedging techniques to mitigate risks. The main risks for which such instruments may be
appropriate are foreign exchange risk, interest rate risk, credit risk and liquidity risk each of which is
discussed in note 18 to the Financial Statements. There were no derivative instruments outstanding at 31 July
2009.

SUBSEQUENT EVENTS

Details of subsequent events are set out in the Management's Discussion and Analysis.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

All of the current Directors have taken all the steps that they ought to have taken to make themselves aware of
any information needed by the Group's Auditors for the purposes of their audit and to establish that the
Auditors are aware of that information. The Directors are not aware of any relevant audit information of which
the Auditors are unaware.

AUDITORS

The auditors, PKF (UK) LLP, will be proposed for re-appointment in accordance with Section 489 of the Companies
Act 2006.

ON BEHALF OF THE BOARD:

L Little, Company Secretary

27 October 2009

RAMBLER METALS AND MINING PLC

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the directors' report and the financial statements in accordance
with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the
directors have, as required by the AIM Rules of the London Stock Exchange, elected to prepare the group
financial statements in accordance with International Financial Reporting Standards as adopted by the European
Union and have also elected to prepare the parent company financial statements in accordance with those
standards. Under company law the directors must not approve the financial statements unless they are satisfied
that they give a true and fair view of the state of affairs of the company and the group and of the profit or
loss of the group for that period. In preparing these financial statements the directors are required to:

- select suitable accounting policies and then apply them consistently;

- make judgments and estimates that are reasonable and prudent;

- state whether the financial statements have been prepared in accordance with IFRSs as adopted by the European
Union

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the
company and the group will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain
the company's transactions and disclose with reasonable accuracy at any time the financial position of the
company and the group and enable them to ensure that the financial statements comply with the Companies Act
2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking
reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the corporate and financial information
included on the company's website. Legislation in the United Kingdom governing the preparation and
dissemination of the financial statements and other information included in annual reports may differ from
legislation in other jurisdictions.

RAMBLER METALS AND MINING PLC

CORPORATE GOVERNANCE REPORT FOR THE YEAR ENDED 31 JULY 2009

In formulating the Group's corporate governance procedures the Board of Directors takes due regard of the
principles of good governance set out in the Revised Combined Code issued by the Financial Reporting Council in
June 2008 (as appended to the Listing Rules of the Financial Services Authority) and the size and development
of the Group. The Group also has regard to the Quoted Companies Alliance (QCA) Guidelines on Corporate
Governance for AIM Companies.

The Board of Rambler Metals and Mining PLC is made up of one executive Director and seven non-executive
Directors. D H W Dobson is the senior non-executive director and G Ogilvie is the Group's President and Chief
Executive. It is the Board's policy to maintain independence by having at least half of the Board comprising
non-executive directors. The structure of the Board ensures that no one individual or group dominates the
decision making process.

The Board ordinarily meets no less than quarterly providing effective leadership and overall control of the
Group's affairs through the schedule of matters reserved for its decision. This includes the approval of
budgets and business plans, items of major capital expenditure, risk management policies and the approval of
the financial statements. Formal agendas, papers and reports are sent to the directors in a timely manner,
prior to Board meetings. The Board also receives a summary financial report before each Board meeting. The
Board delegates certain of its responsibilities to Board committees which have clearly defined terms of
reference. Between the Board meetings, the executive Director, the part-time Chief Financial Officer and some
of the non-executive directors meet on a regular basis to review and discuss progress.

All Directors have access to the advice and services of the company secretary, who is responsible for ensuring
that all Board procedures are followed. Any Director may take independent professional advice at the Group's
expense in the furtherance of his duties.

The Audit Committee meets not less than quarterly and considers the Group's financial reporting (including
accounting policies) and internal financial controls, is chaired by J M Roberts, the other members being L
Goodman and J A Baker. The committee receives reports from management and from the Group's auditors. The Group
has in place a series of procedures and controls designed to identify and prevent the risk of loss. These
procedures are formally documented and are reported on regularly. The Audit Committee has reviewed the systems
in place and considers these to be appropriate.

The Remuneration Committee meets at least once a year and is responsible for making decisions on directors'
remuneration packages is chaired by L Goodman. J M Roberts and J A Baker are the other committee members.

Remuneration of executive Directors is established by reference to the remuneration of executives of equivalent
status both in terms of time commitment, level of responsibility of the position and by reference to their job
qualifications and skills. The Remuneration Committee will also have regard to the terms which may be required
to attract an executive of equivalent experience to join the Board from another company. Such packages include
performance related bonuses and the grant of share options.

The Board attaches importance to maintaining good relationships with all its shareholders and ensures that all
price sensitive information is released to all shareholders at the same time in accordance with AIM and Toronto
Stock Exchange-Venture market rules. The Group's principal communication is through the Annual General Meeting
and through the annual report and accounts, quarterly and interim statements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF RAMBLER METALS AND MINING PLC

We have audited the financial statements of Rambler Metals and Mining plc for the year ended 31 July 2009 which
comprise the consolidated income statement and the consolidated and company balance sheets, cash flow
statements and statements of recognised income and expense and the related notes. The financial reporting
framework that has been applied in their preparation is applicable law and International Financial Reporting
Standards (IFRSs) as adopted by the European Union and, as regards the parent company financial statements, as
applied in accordance with the provisions of the Companies Act 2006.

This report is made solely to the company's members, as a body, in accordance with sections 495 and 496 of the
Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those
matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's
members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of directors and auditors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the
preparation of the financial statements and for being satisfied that they give a true and fair view. Our
responsibility is to audit the financial statements in accordance with applicable law and International
Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices
Board's Ethical Standards for Auditors.

Scope of the audit

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient
to give reasonable assurance that the financial statements are free from material misstatement, whether caused
by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the
group's and the parent company's circumstances and have been consistently applied and adequately disclosed; the
reasonableness of significant accounting estimates made by the directors; and the overall presentation of the
financial statements.

Opinion on financial statements

In our opinion;

- the financial statements give a true and fair view of the state of the group's and the parent company's
affairs as at 31 July 2009 and of the group's loss for the year then ended;

- the group financial statements have been properly prepared in accordance with IFRSs as adopted by the
European Union;

- the parent company financial statements have been properly prepared in accordance with IFRSs as adopted by
the European Union as applied in accordance with the provisions of the Companies Act 2006; and

- the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.

Separate opinion in relation to IFRSs

As explained in Note 2 to the group financial statements the group, in addition to applying IFRSs as adopted by
the European Union, has also applied IFRSs as issued by the International Accounting Standards Board (IASB).

In our opinion the group financial statements comply with IFRSs as issued by the IASB.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion the information given in the directors' report for the financial year for which the financial
statements are prepared is consistent with the financial statements.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to
report to you if, in our opinion:

- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have
not been received from branches not visited by us; or

- the parent company financial statements are not in agreement with the accounting records and returns; or

- certain disclosures of directors' remuneration specified by law are not made; or

- we have not received all the information and explanations we require for our audit.

Emphasis of matter - availability of project finance

In forming our opinion, which is not qualified, we have considered the adequacy of the disclosures made in note
1 to the financial statements concerning the requirement of the company to raise further finance in relation to
the continuing evaluation and development of the Rambler mine and ultimate production. If the company is unable
to secure such additional funding, this may have a consequential impact on the carrying value of the related
assets and the investment of the parent company in the subsidiary undertaking. The outcome of any future
financing cannot presently be determined, and no adjustments to asset carrying values that may be necessary
should the company be unsuccessful have been recognised in the financial statements.



Nicole Kissun (Senior statutory auditor)                    London
for and on behalf of PKF (UK) LLP, Statutory auditors       27 October 2009



RAMBLER METALS AND MINING PLC

INDEPENDENT AUDITORS' REPORT TO THE DIRECTORS OF RAMBLER METALS AND MINING PLC IN RESPECT OF COMPATIBILITY WITH
CANADIAN GAAS

In accordance with the requirement contained in National Instrument 52-107 we report below on the compatibility
of Canadian Generally Accepted Auditing Standards ("Canadian GAAS") and International Standards on Auditing (UK
and Ireland).

We conducted our audit for the year ended 31 July 2009 in accordance with International Standards of Auditing
(UK and Ireland). There are no material differences in the form or content of our audit report, except as noted
below, as compared to an auditors' report prepared in accordance with Canadian GAAS and if this report were
prepared in accordance with Canadian GAAS it would not contain a reservation.

An audit report issued in accordance with Canadian GAAS does not require the Emphasis of Matter paragraph that
is included in the United Kingdom Independent Auditors' Report for the year ended 31 July 2009 given above. In
all other respects, there are no material differences in the form and content of the above noted auditors'
report.



PKF (UK) LLP
London, UK
27 October 2009


RAMBLER METALS AND MINING PLC

CONSOLIDATED INCOME STATEMENT

For the Year Ended 31 July 2009
                                       Note            2009            2008
                                            Pounds Sterling Pounds Sterling

Revenue                                                   -               -
Cost of sales                                             -               -
                                                  --------------------------
Gross profit                                              -               -

Administrative expenses                          (1,088,439)       (948,769)
                                                  --------------------------
Operating loss                            4      (1,088,439)       (948,769)
                                                  --------------------------

Bank interest receivable                             43,137         185,607
Finance costs                                       (34,720)        (41,946)
                                                  --------------------------
Net financing income                                  8,417         143,661
                                                  --------------------------

Loss before tax                                  (1,080,022)       (805,108)

Income tax credit                         6           6,093          70,303
                                                  --------------------------
Loss for the period                              (1,073,929)       (734,805)
                                                  --------------------------
                                                  --------------------------

Loss per share

                                       Note            2009            2008
                                            Pounds Sterling Pounds Sterling

Basic and diluted loss per share (p)     15           (1.8p)          (1.4p)
                                                  --------------------------


RAMBLER METALS AND MINING PLC

CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE

For the Year Ended 31 July 2009
                                                     2009              2008
                                          Pounds Sterling   Pounds Sterling

Foreign exchange translation
 differences                                    2,444,100           706,947

Loss for the period                            (1,073,929)         (734,805)

                                               -----------------------------
Total recognised income and expense
 for the period                                 1,370,171           (27,858)
                                               -----------------------------
                                               -----------------------------


COMPANY STATEMENT OF RECOGNISED INCOME AND EXPENSE

For the Year Ended 31 July 2009
                                                     2009              2008
                                          Pounds Sterling   Pounds Sterling

Loss for the period                              (420,043)         (503,182)

                                               -----------------------------
Total recognised income and expense for
 the period                                      (420,043)         (503,182)
                                               -----------------------------
                                               -----------------------------


RAMBLER METALS AND MINING PLC

BALANCE SHEETS

As at 31 July 2009
                      Note      Group      Company      Group       Company
                                 2009         2009       2008          2008
                               Pounds       Pounds     Pounds        Pounds
                             Sterling     Sterling   Sterling      Sterling

Assets
 Property, plant and
  equipment              8  2,254,506          658  2,621,367         1,410
 Intangible assets       9 17,611,282            - 12,125,573             -
 Investments            10          -   17,811,784          -    16,904,669
                           -------------------------------------------------
Total non-current
 assets                    19,865,788   17,812,442 14,746,940    16,906,079
                           -------------------------------------------------

 Trade and other
  receivables           12     76,646       21,948    189,385        36,111
 Cash and cash
  equivalents           13  1,168,727       22,746  5,107,509     1,310,153
                           -------------------------------------------------
Total current assets        1,245,373       44,694  5,296,894     1,346,264
                           -------------------------------------------------
Total assets               21,111,161   17,857,136 20,043,834    18,252,343
                           -------------------------------------------------
                           -------------------------------------------------

Equity
 Issued capital               593,850      593,850    593,850       593,850
 Share premium             18,699,659   18,699,659 18,699,659    18,699,659
 Merger reserve               120,000            -    120,000             -
 Translation reserve        3,188,654            -    744,554             -
 Accumulated losses        (2,360,555)  (1,534,523)(1,425,462)   (1,136,526)
                           -------------------------------------------------
Total equity            14 20,241,608   17,758,986 18,732,601    18,156,983
                           -------------------------------------------------

Liabilities
 Interest-bearing loans
  and borrowings        17    459,920            -    454,370             -
                           -------------------------------------------------
Total non-current
 liabilities                  459,920            -    454,370             -
                           -------------------------------------------------

 Interest-bearing loans
  and borrowings        17    147,037            -    136,667             -
 Trade and other
  payables              16    262,596       98,150    720,196        95,360
                           -------------------------------------------------
Total current
 liabilities                  409,633       98,150    856,863        95,360
                           -------------------------------------------------
Total liabilities             869,553       98,150  1,311,233        95,360
                           -------------------------------------------------
Total equity and
 liabilities               21,111,161   17,857,136 20,043,834    18,252,343
                           -------------------------------------------------
                           -------------------------------------------------

ON BEHALF OF THE BOARD:

Director
Approved and authorised for issue by the Board on 27 October 2009


RAMBLER METALS AND MINING PLC

STATEMENTS OF CASH FLOWS

For the Year Ended 31 July 2009

                                Group      Company      Group       Company
                                 2009         2009       2008          2008
                               Pounds       Pounds     Pounds        Pounds
                             Sterling     Sterling   Sterling      Sterling
Cash flows from
 operating activities
Operating loss             (1,088,439)    (433,444)  (948,769)     (557,731)
Depreciation                   59,389        1,016      6,135         1,134
Share based payments          134,967       18,177     98,491         1,861
Decrease in debtors           110,737       12,161     13,218        24,414
(Decrease)/increase in
 creditors                    (63,170)       2,790    (36,638)      (58,680)
                            ------------------------------------------------
Cash utilised in operations  (846,516)    (399,300)  (867,563)     (589,002)
Interest paid                 (34,720)           -    (41,946)            -
Tax received                    6,093            -          -             -
                            ------------------------------------------------
Net cash from operating
 activities                  (875,143)    (399,300)  (909,509)     (589,002)
                            ------------------------------------------------

Cash flows from investing
 activities
Interest received              45,139       15,403    186,538        55,481
Loans to subsidiaries               -     (907,115)         -    (4,607,749)
Acquisition of evaluation
 and exploration assets    (2,957,207)           - (4,934,892)            -
Acquisition of property,
 plant and equipment         (453,251)        (264)(1,137,741)            -
                            ------------------------------------------------
Net cash from investing
 activities                (3,365,319)    (891,976)(5,886,095)   (5,886,095)
                            ------------------------------------------------

Cash flows from financing
 activities
Proceeds from the issue
 of share capital                   -            -  5,806,625     5,806,625
Payment of transaction
 costs                              -            -   (366,197)     (366,197)
Proceeds from issue of
 share options                  3,869        3,869          -             -
Capital element of finance
 lease payments               (68,996)           -   (191,777)            -
                            ------------------------------------------------
Net cash from financing
 activities                   (65,127)       3,869  5,248,651     5,440,428
                            ------------------------------------------------

Net (decrease)/increase
 in cash and cash
 equivalents               (4,305,589)  (1,287,407)(1,546,953)      299,158
Cash and cash equivalents
 at beginning of period     5,107,509    1,310,153  6,590,372     1,010,995
Effect of exchange rate
 fluctuations on cash held    366,807            -     64,090             -
                            ------------------------------------------------
Cash and cash equivalents
 at end of period           1,168,727       22,746  5,107,509     1,310,153
                            ------------------------------------------------
                            ------------------------------------------------


RAMBLER METALS AND MINING PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS



1. Nature of operation and going concern

The principal activity of the Group is the development and exploration programme of the Rambler copper and gold
property in Baie Verte, Newfoundland, Canada.

The Group's ability to continue as a going concern, and the recoverability of its mineral properties, is
dependent on the copper and gold prices, its ability to fund its development and exploration programs, and to
manage and generate positive cash flows from operations in the future. These financial statements do not
reflect the adjustments to carrying values of assets and liabilities and the reported expenses and balance
sheet classifications that would be necessary should the going concern assumption be inappropriate, and these
adjustments could be material.

In common with many exploration companies, the Group raises finance for its exploration and appraisal
activities in discrete tranches. On 29 September 2009, the Group announced the conditional placement of
27,500,000 Ordinary Shares at 20 pence each to raise approximately Pounds Sterling 5.5 million before expenses.
Subsequently, on 20 October 2009, during an Extraordinary General Meeting, the shareholders granted authority
to the directors to issue up to 59,385,000 Ordinary Shares in order to allow the directors to issue the shares
for the private placement and to provide them with the flexibility to seek further finance. On 27 October 2009,
some of the proceeds from this fundraising were used to complete the acquisition of the Nugget Pond mill
referred to in the subsequent events note 21. The remainder of the proceeds will be used to finance ongoing
engineering projects and fund working capital requirements. In addition to this private placement, the
Directors and management are currently evaluating a number of debt financing proposals in order to finance the
project through into production. The Directors are confident the funds provided by closing of the private
placement will be sufficient to maintain current operations for the forthcoming 12 months and therefore have
concluded that the Group is a going concern.

2. Significant accounting policies

Rambler Metals and Mining Plc (the "Company") is a company registered in England and Wales. The consolidated
financial statements of the Company for the year ended 31 July 2009 comprise the Company and its subsidiaries
(together referred to as the "Group").

(a) Statement of compliance

The consolidated financial statements of Rambler Metals and Mining plc have been prepared in accordance with
International Financial Reporting Standards ("IFRS") and their interpretations adopted by the International
Accounting Standards Board ("IASB"), as adopted by the European Union and with IFRS and their interpretations
adopted by the IASB. There are no material differences on application to the Group. The consolidated financial
statements have also been prepared in accordance with those parts of the Companies Act 2006 applicable to
companies reporting under IFRS.

There is no material impact or standards adopted in the year. In addition, there have been no standards issued
but not yet effective that have been early adopted.

International Financial Reporting Standards that have recently been issued or amended but are not yet effective
have not been adopted for the annual reporting period ended 31 July 2009:



                          Nature of
                          change to            Application     Application
IFRS       Title          accounting           date of         date for
/Amendment                policy               standard        Group
----------------------------------------------------------------------------
IAS 1      Presentation   No change to         1 January 2009  1 August 2009
revised/   of financial   accounting policy,
amended    statements     therefore, no impact
----------------------------------------------------------------------------
IAS 7      Statement of   No change to         1 January 2010  1 August 2010
amendment  cash flows     accounting policy,
                          therefore, no impact
----------------------------------------------------------------------------
IAS 16     Property,      No change to
amendment  plant and      accounting policy,
           equipment      therefore, no impact
----------------------------------------------------------------------------
IAS 17     Leases         No change to         1 January 2010  1 August 2010
amendment                 accounting policy,
                          therefore, no impact
----------------------------------------------------------------------------
IAS 23     Borrowing      Finance costs        1 January 2009  1 August 2009
amendment  costs          directly related
                          to non-current assets
                          will be capitalised
----------------------------------------------------------------------------
IAS 27     Consolidated   No change to         1 January 2009  1 August 2009
amendment  and separate   accounting policy,
           financial      therefore, no impact
           statements
----------------------------------------------------------------------------
IAS 32     Financial      No change to         1 January 2009  1 August 2009
amendment  instruments:   accounting policy,
           Presentation   therefore, no impact
----------------------------------------------------------------------------
IAS 36     Impairment of  No change to         1 January 2009  1 August 2009
amendment  assets         accounting policy,
                          therefore, no impact
----------------------------------------------------------------------------
IAS 39     Financial      No change to         1 January 2009  1 August 2009
amendment  instruments    accounting policy,
                          therefore, no impact
----------------------------------------------------------------------------
IFRS 3/    Business       No change to         1 July 2009     1 August 2009
IAS 27     combinations/  accounting policy,
revised    consolidated   therefore, no impact
           and separate
           financial
           statements
----------------------------------------------------------------------------
IFRS 1     First time     No change to         1 January 2009  1 August 2009
amended    adoption of    accounting policy,
           IFRS           therefore, no impact
----------------------------------------------------------------------------
IFRS 2     Share-based    No change to         1 January 2009  1 August 2009
Amended    payment        accounting policy,
                          therefore, no impact
----------------------------------------------------------------------------
IFRS 7     Financial      No change to         1 January 2009  1 August 2009
revised    instruments:   accounting policy,
           Disclosures    therefore, no impact
----------------------------------------------------------------------------
IFRS 8     Operating      No change to         Supersedes IAS  1 August 2009
           segments       accounting policy,   14 from 1
                          therefore, no impact January 2009
----------------------------------------------------------------------------
IFRIC 16   Hedges of a    No change to         1 October 2008  1 August 2009
           net investment accounting policy,
           in a foreign   therefore, no impact
           operation
----------------------------------------------------------------------------
IFRIC 17   Distribution   No change to         1 July 2009     1 August 2009
           of non-cash    accounting policy,
           assets to      therefore, no impact
           owners
----------------------------------------------------------------------------
IFRIC 18   Transfers      No change to         1 July 2009     1 August 2009
           of assets      accounting policy,
           from customers therefore, no impact
----------------------------------------------------------------------------



Management have reviewed the impact of the above standards and interpretations and have concluded that they
will not result in any material changes to reported results.

(b) Basis of preparation

The financial statements are presented in British pounds, rounded to the nearest pound.

The preparation of financial statements in conformity with IFRS requires management to make judgements,
estimates and assumptions that affect the application of policies and reported amounts of assets and
liabilities, income and expenses. The estimates and associated assumptions are based on historical experience
and various other factors that are believed to be reasonable under the circumstances, the results of which form
the basis of making the judgements about carrying values of assets and liabilities that are not readily
apparent from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimate is revised if the revision affects only that period, or in
the period of the revision and future periods if the revision affects both current and future periods.

Judgements made by management in the application of IFRS that have a significant effect on the financial
statements and estimates with a significant risk of material adjustment in the next year are discussed in note
22.

The accounting policies set out below have been applied consistently to all periods presented in these
consolidated financial statements.

The accounting policies have been applied consistently by Group entities.

(c) Basis of consolidation

(i) Subsidiaries

Subsidiaries are entities controlled by the Company. Control exists when the Company has the power, directly or
indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its
activities. In assessing control, potential voting rights that presently are exercisable or convertible are
taken into account. The financial statements of subsidiaries are included in the consolidated financial
statements from the date that control commences until the date that control ceases.

(ii) Transactions eliminated on consolidation

Intragroup balances and any unrealised gains and losses or income and expenses arising from intragroup
transactions, are eliminated in preparing the consolidated financial statements.

(d) Foreign currency

(i) Foreign currency transactions

Transactions in foreign currencies are translated to the functional currency at the foreign exchange rate
ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the
balance sheet date are translated to the functional currency at the foreign exchange rate ruling at that date.
Foreign exchange differences arising on translation are recognised in the income statement. Non-monetary assets
and liabilities that are measured in terms of historical cost in a foreign currency are translated using the
exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in foreign
currencies that are stated at fair value are translated to the functional currency at foreign exchange rates
ruling at the dates the fair value was determined.

(ii) Financial statements of foreign operations

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on
consolidation, are translated to British pounds at foreign exchange rates ruling at the balance sheet date. The
revenues and expenses of foreign operations are translated to British pounds at rates approximating to the
foreign exchange rates ruling at the dates of the transactions.

(iii) Net investment in foreign operations

Exchange differences arising from the translation of the net investment in foreign operations are taken to
translation reserve. They are released into the income statement upon disposal.

(e) Property, plant and equipment

(i) Owned assets

Items of property, plant and equipment are stated at cost. The cost of self-constructed assets includes the
cost of materials, direct labour, the initial estimate, where relevant, of the costs of dismantling and
removing the items and restoring the site on which they are located.

Where parts of an item of property, plant and equipment have different useful lives, they are accounted for as
separate items of property, plant and equipment.

(ii) Leased assets

Leases in terms of which the Group assumes substantially all the risks and rewards of ownership are classified
as finance leases.

(iii) Subsequent costs

The Group recognises in the carrying amount of an item of property, plant and equipment the cost of replacing
part of such an item when that cost is incurred if it is probable that the future economic benefits embodied
with the item will flow to the Group and the cost of the item can be measured reliably. All other costs are
recognised in the income statement as an expense as incurred.

(iv) Depreciation

Depreciation is charged to the income statement or capitalised as part of the exploration and evaluation costs
where appropriate, on a straight-line basis over the estimated useful lives of each part of an item of
property, plant and equipment. Land is not depreciated. The estimated useful lives are as follows:



- buildings                            5 to 10 years
- plant and equipment                  2 to 5 years
- motor vehicles                       3 years
- computer equipment                   3 years
- fixtures, fittings and equipment     3 years



The estimated useful lives and residual values of the assets are considered annually and restated as required.

(f) Intangible assets

(i) Exploration and evaluation costs

These comprise costs directly incurred in exploration and evaluation as well as the cost of mineral licences.
They are capitalised as intangible assets pending determination of the feasibility of the project. When the
existence of economically recoverable reserves and the availability of finance is established the related
intangible assets are transferred to property, plant and equipment and the exploration and evaluation costs are
amortised on a depletion percentage basis. Where a project is abandoned or is determined not to be economically
viable, the related costs are written off.

The recoverability of deferred exploration and evaluation costs is dependent upon a number of factors common to
the natural resource sector. These include the extent to which the Group can establish economically recoverable
reserves on its properties, the ability of the Group to obtain necessary financing to complete the development
of such reserves and future profitable production or proceeds from the disposition thereof.

(ii) Impairment of exploration and evaluation costs

Impairment reviews for exploration and evaluation costs are carried out on a project by project basis, with
each project representing a potential single cash generating unit. An impairment review is undertaken when
indicators of impairment arise but typically when one of the following circumstances apply:

- unexpected geological occurrences that render the resource uneconomic;

- title to the asset is compromised;

- variations in metal prices that render the project uneconomic; and

- variations in the exchange rate for the currency of operation.

(g) Investments

Investments are stated at their cost less impairment losses (see accounting policy j).

(h) Trade and other receivables

Trade and other receivables are stated at their cost less impairment losses (see accounting policy j).

(i) Cash and cash equivalents

Cash and cash equivalents comprise cash balances and call deposits. Bank overdrafts that are repayable on
demand and form an integral part of the Group's cash management are included as a component of cash and cash
equivalents for the purpose of the statement of cash flows.

(j) Impairment

The carrying amounts of the Group's assets (except deferred exploration and evaluation costs (see accounting
policy (f)(ii)) and deferred tax assets (see accounting policy 2(o)), are reviewed at each balance sheet date
to determine whether there is any indication of impairment. If any such indication exists, the asset's
recoverable amount is estimated (see accounting policy 2(j)(i)).

An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit exceeds
its recoverable amount. Impairment losses are recognised in the income statement.

Impairment losses recognised in respect of cash-generating units are allocated first to reduce the carrying
amount of any goodwill allocated to cash-generating units (group of units) and then, to reduce the carrying
amount of the other assets in the unit (group of units) on a pro rata basis.

(i) Calculation of recoverable amount

Receivables with a short duration are not discounted.

The recoverable amount of other assets is the greater of their net selling price and value in use. In assessing
value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of money and the risks specific to the asset.
For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for
the cash-generating unit to which the asset belongs.

(ii) Reversals of impairment

An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable
amount.

An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying
amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been
recognised.

(k) Provisions

A provision is recognised in the balance sheet when the Group has a present legal or constructive obligation as
a result of a past event, and it is probable that an outflow of economic benefits will be required to settle
the obligation. If the effect is material, provisions are determined by discounting the expected future cash
flows at a pre-tax rate that reflects current market assessments of the time value of money and, where
appropriate, the risks specific to the liability.

(l) Trade and other payables

Trade and other payables are stated at amortised cost.

(m) Expenses

(i) Operating lease payments

Payments made under operating leases are recognised in the income statement on a straight-line basis over the
term of the lease. Lease incentives received are recognised in the income statement as an integral part of the
total lease expense.

(ii) Finance lease payments

Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding
liability. The finance charge is allocated to each period during the lease term so as to produce a constant
periodic rate of interest on the remaining balance of the liability.

(iii) Borrowing costs

Borrowing costs are recognised in the income statement.

(n) Equity settled share based payments

All share based payments are recognised in the financial statements.

All goods and services received in exchange for the grant of any share-based remuneration are measured at their
fair values. Fair values of employee services are determined indirectly by reference to the fair value of the
share options awarded. Their value is appraised at the grant dates and excludes the impact of non-market
vesting conditions.

All share-based remuneration is ultimately recognised as an expense in the income statement with a
corresponding credit to the accumulated losses in the balance sheet.

If vesting periods apply, the expense is allocated over the vesting period, based on the best available
estimate of the number of share options expected to vest. Estimates are subsequently revised if there is any
indication that the number of share options expected to vest differs from previous estimates. Any cumulative
adjustment prior to vesting is recognised in the current period. No adjustment is made to any expense
recognised in prior periods if the number of share options ultimately exercised is different to that estimated
on vesting. Upon exercise of share options the proceeds received net of attributable transaction costs are
credited to share capital.

(o) Income tax

Income tax on the profit or loss for the year comprises current and deferred tax. Income tax is recognised in
the income statement except to the extent that it relates to items recognised directly in equity, in which case
it is recognised in equity.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or
substantially enacted at the balance sheet date, and any adjustment to tax payable in respect of previous
years.

Deferred tax is provided using the balance sheet liability method, providing for temporary differences between
the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for
taxation purposes. The following temporary differences are not provided for: goodwill not deductible for tax
purposes, the initial recognition of assets or liabilities that affect neither accounting nor taxable profit,
and differences relating to investments in subsidiaries to the extent that they will probably not reverse in
the foreseeable future. The amount of deferred tax provided is based on the expected manner of realisation or
settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted
at the balance sheet date. A deferred tax asset is recognised only to the extent that it is probable that
future taxable profits will be available against which the asset can be utilised. Deferred tax assets are
reduced to the extent that it is no longer probable that the related tax benefit will be realised.

3. Segment reporting

A segment is a component of the Group distinguishable by economic activity (business segment) or by its
geographical location (geographical segment) which is subject to risks and returns that are different from
those of other segments.

The Group's only business segment is the exploration for, and development of, copper and gold deposits. All the
Group's activities are related to the exploration for, and development of, copper and gold in Newfoundland,
Canada with support provided from the UK. The business segment is the primary reporting format. In presenting
information on the basis of geographical segments, segment assets and the cost of acquiring them are based on
the geographical location of the assets. Segment capital expenditure is the total cost incurred during the
period to acquire segment assets and where the assets are located. There was no Group turnover during the
period (2008: Pounds Sterling nil).



                                                    2009               2008
                                         Pounds Sterling    Pounds Sterling
Total assets
Canada                                        21,065,809         18,696,160
UK                                                45,352          1,347,674
                                         -----------------------------------
Total                                         21,111,161         20,043,834
                                         -----------------------------------
                                         -----------------------------------

                                                    2009               2008
                                         Pounds Sterling    Pounds Sterling
Capital expenditure on deferred
 exploration and evaluation costs
Canada                                         3,612,120          5,638,837
UK                                                     -                  -
                                         -----------------------------------
Total                                          3,612,120          5,638,837
                                         -----------------------------------
                                         -----------------------------------

Capital expenditure on property, plant
 and equipment
Canada                                           424,200          1,072,786
UK                                                   264                  -
                                         -----------------------------------
Total                                            424,464          1,072,786
                                         -----------------------------------
                                         -----------------------------------

Result for the year
Canada                                          (653,886)          (231,624)
UK                                              (420,043)          (503,181)
                                         -----------------------------------
Total                                         (1,073,929)          (734,805)
                                         -----------------------------------
                                         -----------------------------------

4. Operating loss

The operating loss is after
 charging/(crediting):
                                                    2009               2008
                                         Pounds Sterling    Pounds Sterling
Depreciation - owned assets                       59,389              6,135
Directors' emoluments (see note 20)              180,736             98,422
Auditors' remuneration:
 Audit of these financial statements              23,500             29,201
 Fees payable to the auditor for
  other services:
 Audit of accounts of associates of
  the Company pursuant to legislation              2,500              3,000
 Other services related to tax                     9,150             42,675
 Other services relating to corporate
  finance                                              -              2,000
 Other services                                    1,250              2,900
Operating lease rentals                           41,624             42,833
Foreign exchange differences                      (1,548)                94
                                         -----------------------------------
                                         -----------------------------------



The Audit Committee reviews the nature and extent of non-audit services to ensure that independence is
maintained.

In addition to the depreciation charge shown above, depreciation of Pounds Sterling 987,982 (2008: Pounds
Sterling 731,933) was capitalised within exploration and evaluation assets.

5. Personnel expenses



Salary costs
                                       Group    Company     Group   Company
                                        2009       2009      2008      2008
                                      Pounds     Pounds    Pounds    Pounds
                                    Sterling   Sterling  Sterling  Sterling

Wages and salaries                 1,369,857    142,400 1,482,703   148,400
Share based payments                 134,967     18,177    98,491     1,861
Compulsory social security
 contributions                        95,919     10,484   109,393    12,468
                                   -----------------------------------------
                                   1,600,743    171,061 1,690,587   162,729
                                   -----------------------------------------
                                   -----------------------------------------

Salary costs of Pounds Sterling 1,004,619 (2008: Pounds Sterling 1,302,809)
were capitalised as exploration and evaluation costs during the year.

Number of employees

The average number of employees during the year was as follows:

                                    Group     Company     Group     Company
                                     2009        2009      2008        2008

Directors                               8           8         7           7
Administration                          6           2         3           2
Exploration and evaluation             26           -        36           -
                                    ----------------------------------------
                                       40          10        46           9
                                    ----------------------------------------
                                    ----------------------------------------



During the year the Group granted share options to key personnel to purchase shares in the entity. The options
are exercisable at the market price of the shares at the date of grant and vest immediately.

The number and weighted average exercise prices of share options are as follows:



                              Weighted                Weighted
                               average                 average
                              exercise       Number   exercise       Number
                                 price   of options      price   of options
                                  2009         2009       2008         2008

Outstanding at the beginning
 of the period                   47.9p    1,245,000      40.4p      505,000
Granted during the period        11.2p    2,121,000      52.9p      765,000
Exercised during the period          -            -      42.5p      (25,000)
Cancelled during the period      46.9p     (155,000)         -            -
                                          ---------               ---------
Outstanding and exercisable
 at the end of the period        23.3p    3,211,000      47.9p    1,245,000
                                          ---------               ---------
                                          ---------               ---------



Share-based payments

The options outstanding at 31 July 2009 have an exercise price in the range of 10p to 55p and a weighted
average remaining contractual life of 9 years (2008: 8 years).

The fair value of services received in return for share options granted are measured by reference to the fair
value of share options granted. The estimate of the fair value of the services received is measured based on
the Black-Scholes model. The contractual life of the option (10 years) is used as an input into this model.
Expectations of early exercise are incorporated into the Black-Scholes model.



Fair value of share options
 and assumptions                                     2009              2008
                                          Pounds Sterling   Pounds Sterling
Fair value at measurement date                    134,967            98,491
                                                  --------------------------

Share price (weighted average)                      23.3p             47.9p
Exercise price (weighted average)                   23.3p             47.9p
Expected volatility (expressed as
 weighted average volatility used
 in the modelling under
 Black-Scholes model)                                65.3%             63.2%
Expected option life                                    5                 5
Expected dividends                                      0                 0
Risk-free interest rate (based on
 national government bonds)                          4.30%             4.30%



The expected volatility is based on the historic volatility (calculated based on the weighted average remaining
life of the share options), adjusted for any expected changes to future volatility due to publicly available
information.



There are no service or market conditions associated with the share option
grants.
                                                    2009               2008
                                         Pounds Sterling    Pounds Sterling
Share options granted in 2008                     82,859             98,491
Share options granted in 2009                     52,108                  -
                                                 -------            -------
Total expense recognised as employee costs       134,967             98,491
                                                 -------            -------
                                                 -------            -------


6. Income tax credit

Recognised in the income statement
                                                    2009               2008
                                         Pounds Sterling    Pounds Sterling
Current tax expense
Current year                                           -                  -
                                                 -------            -------
                                                       -                  -

Deferred tax credit
Origination and reversal of
 temporary differences                           201,596            210,094
Benefit of tax losses recognised                (201,596)          (270,589)
Tax losses surrendered for tax credit             (6,093)                 -
Effect of change in tax rates                          -             (9,808)
                                                 -------            -------
Total income tax credit in income statement       (6,093)           (70,303)
                                                 -------            -------
                                                 -------            -------


Reconciliation of effective tax rate
                                                    2009               2008
                                         Pounds Sterling    Pounds Sterling
Loss before tax                               (1,080,022)          (805,108)
                                              ------------------------------
                                              ------------------------------

Income tax using the domestic
 corporation tax rate of
 28% (2008: 29.33%)                             (302,406)          (236,139)
Effect of tax rates in foreign
 jurisdictions (rates increased)                  (6,600)            (6,731)
Non-deductible expenses                           39,499             32,126
Effect of tax losses carried forward             263,414            146,402
Overprovision in previous years                        -             (5,961)
                                              ------------------------------
                                                  (6,093)           (70,303)
                                              ------------------------------
                                              ------------------------------



7. Loss of parent company

As permitted by section 408 of the Companies Act 2006, the profit and loss account of the parent company is not
presented as part of these financial statements. The parent company's loss for the financial year was Pounds
Sterling 420,043 (2008: Pounds Sterling 503,182).



8. Property, plant and equipment - group
                                              Fixtures,
                                              fittings
                Land and    Motor  Plant and       and  Computer      Total
               buildings vehicles  equipment equipment equipment
                  Pounds   Pounds     Pounds    Pounds    Pounds     Pounds
                Sterling Sterling   Sterling  Sterling  Sterling   Sterling
Cost
Balance at 1
 August 2007     240,137   70,293  1,859,324    12,480    47,098  2,229,332
Acquisitions     211,916   20,588    763,624     4,617    72,041  1,072,786
Effect of
 movements in
 foreign
 exchange         22,482    5,235    145,579       960     5,177    179,433
               -------------------------------------------------------------
Balance at 31
 July 2008       474,535   96,116  2,768,527    18,057   124,316  3,481,551
               -------------------------------------------------------------
               -------------------------------------------------------------

Balance at 1
 August 2008     474,535   96,116  2,768,527    18,057   124,316  3,481,551
Acquisitions      37,313   37,297    212,444     9,034   128,376    424,464
Disposals              -  (77,479)         -         -         -    (77,479)
Effect of
 movements in
 foreign
 exchange         61,626   10,224    386,609     3,037    24,876    491,072
               -------------------------------------------------------------
Balance at 31
 July 2009       578,174   66,158  3,367,580    30,128   277,568  4,319,608
               -------------------------------------------------------------
               -------------------------------------------------------------

Depreciation
 and impairment
 losses
Balance at 1
 August 2007      16,860    7,468     53,433     2,440    12,045     92,246
Depreciation
 charge for
 the period      104,504   14,356    592,750     4,667    21,791    738,068
Effect of
 movements in
 foreign
 exchange          4,489      951     22,723       310     1,397     29,870
               -------------------------------------------------------------
Balance at
 31 July 2008    125,853   22,775    668,906     7,417    35,233    860,184
               -------------------------------------------------------------
               -------------------------------------------------------------

Balance at 1
 August 2008     125,853   22,775    668,906     7,417    35,233    860,184
Depreciation
 charge for
 the year        141,000   11,871    823,023     8,570    62,907  1,047,371
On disposals           -  (26,448)         -         -         -    (26,448)
Effect of
 movements in
 foreign
 exchange          26,408   2,082    145,300     1,573     8,632    183,995
               -------------------------------------------------------------
Balance at 31
 July 2009        293,261  10,280  1,637,229    17,560   106,772  2,065,102
               -------------------------------------------------------------
               -------------------------------------------------------------
Carrying
 amounts
At 1 August
 2007             223,277  62,825  1,805,891    10,040    35,053  2,137,086
               -------------------------------------------------------------
               -------------------------------------------------------------
At 31 July 2008   348,682  73,341  2,099,621    10,640    89,083  2,621,367
               -------------------------------------------------------------
               -------------------------------------------------------------

At 1 August
 2008             348,682  73,341  2,099,621    10,640    89,083  2,621,367
               -------------------------------------------------------------
               -------------------------------------------------------------
At 31 July 2009   284,913  55,878  1,730,351    12,568   170,796  2,254,506
               -------------------------------------------------------------
               -------------------------------------------------------------



Leased plant and machinery

The Group leases production equipment under a number of finance lease agreements. At the end of each lease the
Group has the option to purchase the equipment at a beneficial price. At 31 July 2009, the net carrying amount
of leased plant and machinery was Pounds Sterling 280,931 (2008: Pounds Sterling 507,976). The leased equipment
secures lease obligations (see note 17).



8. Property, plant and equipment - company
                                                   Computer
                                                  equipment
                                            Pounds Sterling

Cost
Balance at 1 August 2007                              3,405
Acquisitions                                              -
                                                     -------
Balance at 31 July 2008                               3,405
                                                     -------
                                                     -------

Balance at 1 August 2008                              3,405
Acquisitions                                            264
                                                     -------
Balance at 31 July 2009                               3,669
                                                     -------
                                                     -------

Depreciation and impairment losses
Balance at 1 August 2007                                861
Depreciation charge for the period                    1,134
                                                     -------
Balance at 31 July 2008                               1,995
                                                     -------
                                                     -------

Balance at 1 August 2008                              1,995
Depreciation charge for the year                      1,016
                                                     -------
Balance at 31 July 2009                               3,011
                                                     -------
                                                     -------

Carrying amounts
At 1 August 2007                                      2,544
                                                     -------
                                                     -------
At 31 July 2008                                       1,410
                                                     -------
                                                     -------

At 1 August 2008                                      1,410
                                                     -------
                                                     -------
At 31 July 2009                                         658
                                                     -------
                                                     -------

9. Intangible assets - group
                                                Exploration
                                                        and
                                                 evaluation
                                                      Costs
                                            Pounds Sterling

Cost

Balance at 1 August 2007                          5,941,947
Acquisitions                                      5,638,837
Effect of movements in foreign exchange             544,789
                                                 ----------
Balance at 31 July 2008                          12,125,573
                                                 ----------
                                                 ----------

Balance at 1 August 2008                         12,125,573
Acquisitions                                      3,612,120
Effect of movements in foreign exchange           1,873,589
                                                 ----------
Balance at 31 July 2009                          17,611,282
                                                 ----------
                                                 ----------
Carrying amounts
At 1 August 2007                                  5,941,947
                                                 ----------
                                                 ----------
At 31 July 2008                                  12,125,573
                                                 ----------
                                                 ----------

At 1 August 2008                                 12,125,573
                                                 ----------
                                                 ----------
At 31 July 2009                                  17,611,282
                                                 ----------
                                                 ----------



Consideration of impairment for exploration and evaluation costs

The directors have assessed whether there are any indicators of impairment in respect of exploration and
evaluation costs. In making this assessment they have considered the Group's business plan which includes
resource estimates, future processing capacity, the forward market and longer term price outlook for copper and
gold. The directors do not consider that there are any indicators that exploration and evaluation costs are
impaired ay the year end.

10. Investments - company



                             Investment in
                                Subsidiary            Loans            Total
                           Pounds Sterling  Pounds Sterling  Pounds Sterling

Cost

Balance at 1 August 2007           240,000       12,056,920       12,296,920
Advances                                 -        4,607,749        4,607,749
                                   -----------------------------------------
Balance at 31 July 2008            240,000       16,664,669       16,904,669
                                   -----------------------------------------
                                   -----------------------------------------

Balance at 1 August 2008           240,000       16,664,669       16,904,669
Advances                                 -          907,115          907,115
                                   -----------------------------------------

Balance at 31 July 2009            240,000       17,571,784       17,811,784
                                   -----------------------------------------
                                   -----------------------------------------



The company has interests in the following material subsidiary undertakings, which are included in the
consolidated financial statements.



Name                  Class          Holding          Activity    Country of
                                                               Incorporation
Rambler Mines
 Limited           Ordinary              100%  Holding company       England
Rambler Metals
 and Mining                              100%
 Canada Limited      Common       (indirectly)     Exploration        Canada



The aggregate value of shares in subsidiary undertakings is stated at cost less any amounts provided for
impairment as deemed necessary by the directors.

The loans to the subsidiary undertakings are interest free.

11. Deferred tax assets and liabilities

Recognised deferred tax assets and liabilities

Deferred tax assets and liabilities are attributable to the following:



                            Assets          Liabilities           Net
                        2009      2008     2009     2008     2009     2008
                      Pounds    Pounds   Pounds   Pounds   Pounds   Pounds
                    Sterling  Sterling Sterling Sterling Sterling Sterling
Property, plant
 and equipment       (44,111)        -        -   44,910  (44,111)  44,910
Intangible assets          -         -  697,563  375,537  697,563  375,537
Tax value of loss
 carry-forwards
 recognised         (653,452) (420,447)                - (653,452)(420,447)
                    -------------------------------------------------------
Net tax (assets)/
 liabilities        (697,563) (420,447) 697,563  420,447        -        -
                    -------------------------------------------------------
                    -------------------------------------------------------



Unrecognised deferred tax assets

Deferred tax assets have not been recognised in respect of the following items:



                                                 2009                 2008
                                      Pounds Sterling      Pounds Sterling
Deductible temporary differences                 (103)                 (74)
UK tax losses                                 348,615              246,174
Canadian tax losses                           167,799                3,897
                                              ----------------------------
                                              516,311              249,997
                                              ----------------------------
                                              ----------------------------



The tax losses and deductible temporary differences do not expire under current tax legislation. Deferred tax
assets have not been recognised in respect of these items because it is not probable that future taxable profit
will be available against which the Group can utilise the benefits there from.



Movement in temporary differences during the year

                                Recogn-   Effect of    Exchange
                     Balance    ised in   change in  difference     Balance
                    1 Aug 07     income    tax rate               31 Jul 08
                      Pounds     Pounds      Pounds      Pounds      Pounds
                    Sterling   Sterling    Sterling    Sterling    Sterling
Property, plant
 and equipment        71,539    (20,976)     (9,316)      3,663      44,910
Intangible assets    147,190    231,070     (19,167)     16,444     375,537
Tax value of loss
 carry-forwards     (150,570)  (270,589)     18,675     (17,963)   (420,447)
                    --------------------------------------------------------
                      68,159    (60,495)     (9,808)      2,144           -
                    --------------------------------------------------------
                    --------------------------------------------------------

                                Recogn-   Effect of    Exchange
                     Balance    ised in   change in  difference     Balance
                    1 Aug 08     income    tax rate               31 Jul 09
                      Pounds     Pounds      Pounds      Pounds      Pounds
                    Sterling   Sterling    Sterling    Sterling    Sterling

Property, plant
 and equipment        44,910    (85,200)     (3,872)         51     (44,111)
Intangible assets    375,537    286,796     (32,381)     67,611     697,563
Tax value of loss
 carry-forwards     (420,447)  (201,596)     36,253     (67,662)   (653,452)
                    --------------------------------------------------------
                           -          -           -           -           -
                    --------------------------------------------------------
                    --------------------------------------------------------


12. Trade and other receivables
                                  Group     Company       Group     Company
                                   2009        2009        2008        2008
                                 Pounds      Pounds      Pounds      Pounds
                               Sterling    Sterling    Sterling    Sterling
Other receivables                 1,416       1,135      46,694      12,579
Sales taxes recoverable          23,575       2,782     110,146       8,197
Prepayments and accrued
 income                          51,655      18,031      32,545      15,335
                                --------------------------------------------
                                 76,646      21,948     189,385      36,111
                                --------------------------------------------
                                --------------------------------------------


13. Cash and cash equivalents
                                  Group     Company       Group     Company
                                   2009        2009        2008        2008
                                 Pounds      Pounds      Pounds      Pounds
                               Sterling    Sterling    Sterling    Sterling
Canadian Government Treasury
 Bills                          951,171           -   3,176,010           -
Bank balances                   217,556      22,746   1,931,499   1,310,153
                              ----------------------------------------------
Cash and cash equivalents in
 the statement of cash flows  1,168,727      22,746   5,107,509   1,310,153
                              ----------------------------------------------
                              ----------------------------------------------


14. Capital and reserves

Reconciliation of movement in capital and reserves - group

Group

                                    Accumu-
                 Share      Share     lated Translation   Merger      Total
               capital    premium    losses     reserve  reserve     equity
                Pounds     Pounds    Pounds      Pounds   Pounds     Pounds
              Sterling   Sterling  Sterling    Sterling Sterling   Sterling
Balance at 1
 August 2007   497,000 13,356,081  (789,148)     37,607  120,000 13,221,540

Total
 recognised
 income and
 expense            -           -  (734,805)    706,947        -    (27,858)
Share-based
 payments           -           -    98,491           -        -     98,491
Share issues   96,850   5,709,775         -           -        -  5,806,625
Costs of share
 issues             -    (366,197)        -           -        -   (366,197)
              --------------------------------------------------------------
              --------------------------------------------------------------
Balance at 31
 July 2008    593,850  18,699,659(1,425,462)    744,554  120,000 18,732,601
              --------------------------------------------------------------
              --------------------------------------------------------------

Balance at 1
 August 2008  593,850  18,699,659(1,425,462)    744,554  120,000 18,732,601
Total
 recognized
 income and
 expense            -           -(1,073,929)  2,444,100        -  1,370,171
Share-based
 payments           -           -   138,836           -        -    138,836
              --------------------------------------------------------------
Balance at 31
 July 2009    593,850  18,699,659(2,360,555)  3,188,654  120,000 20,241,608
              --------------------------------------------------------------
              --------------------------------------------------------------



Merger reserve

The merger reserve arose from the acquisition of Rambler Mines Limited by Rambler Metals and Mining PLC. This
acquisition was accounted for in accordance with the merger accounting principles set out in UK Financial
Reporting Standard 6 and the Companies Act 1985, which continue under the Companies Act 2006, whereby the
consolidated financial statements were presented as if the business previously carried out through Rambler
Mines Limited had always been owned and controlled by the Company. The transition provisions of IFRS 1 allow
all business combinations prior to 1 September 2005 to continue to be accounted for under the requirements of
UK GAAP at that time. Accordingly this acquisition has not been re-stated in accordance with that standard.

Translation reserve

The translation reserve comprises all foreign exchange differences arising from the translation of the
financial statements of subsidiaries that have a different functional currency from the presentation currency.
Exchange differences arising are classified as equity and transferred to the Group's translation reserve. Such
translation differences are recognised in the income statement in the period of disposal of the operation.



Reconciliation of movement in capital and reserves - company

                              Share        Share    Accumulated       Total
                            capital      premium        losses
                             Pounds       Pounds        Pounds       Pounds
                           Sterling     Sterling      Sterling     Sterling
Balance at 1
 August 2007                497,000   13,356,081      (635,205)  13,217,876
Loss for the year                 -           -       (503,182)    (503,182)
Share-based payments              -                      1,861        1,861
Share issues                 96,850    5,709,775             -    5,806,625
Cost of share issues              -     (366,197)            -     (366,197)
                           -------------------------------------------------
Balance at 31 July 2008     593,850   18,699,659    (1,136,526)  18,156,983
                           -------------------------------------------------
                           -------------------------------------------------

Balance at 1 August 2008    593,850   18,699,659    (1,136,526)  18,156,983
Loss for the year                 -            -      (420,043)    (420,043)
Share-based payments              -            -        22,046       22,046
                           -------------------------------------------------
Balance at 31 July 2009     593,850   18,699,659    (1,534,523)  17,758,986
                           -------------------------------------------------
                           -------------------------------------------------


Share capital and share premium - group and company

                                                        Number
In issue at 1 August 2007                           49,700,000
Issued for cash                                      9,685,000
                                                    ----------
In issue at 31 July 2008                            59,385,000
                                                    ----------
                                                    ----------

In issue at 1 August 2007                           59,385,000
Issued for cash                                              -
                                                    ----------
In issue at 31 July 2009                            59,385,000
                                                    ----------
                                                    ----------



At 31 July 2009, the authorised share capital comprised 1,000,000,000 ordinary shares of 1p each.

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled
to one vote per share at meetings of the Company.

Details of shares issued during the year ended 31 July 2008 are as follows:

On 21 March 2008 the company received monies to subscribe for 25,000 shares for 42.5p each, raising Pounds
Sterling 10,625 as the result of the exercise of an option.

On 23 May 2008 the company received monies to subscribe for 9,660,000 shares for 60p each, raising a total of
Pounds Sterling 5,429,803 net of expenses.

The Group's objectives when managing capital are to safeguard the entity's ability to continue as a going
concern so that it can continue to increase the value of the entity for the benefit of the shareholders. Given
the nature of the Group's current activities the entity will remain dependent on a mixture of debt and equity
funding in the short to medium term until such a time as the Group becomes self-financing from the commercial
production of mineral resources.

Details of employee share options outstanding are set out in note 5.

15. Loss per share

Basic loss per share

The calculation of basic loss per share at 31 July 2009 was based on the loss attributable to ordinary
shareholders of Pounds Sterling 1,073,929 and a weighted average number of ordinary shares outstanding during
the period ended 31 July 2009 of 59,385,000 calculated as follows:



Loss attributable to ordinary shareholders
                                                      2009             2008
                                           Pounds Sterling  Pounds Sterling
Loss for the period                             (1,073,929)        (734,805)
                                                ----------------------------
Loss attributable to ordinary shareholders      (1,073,929)        (734,805)
                                                ----------------------------
                                                ----------------------------


Weighted average number of ordinary shares

                                                      Number
At 1 August 2007                                  49,700,000
Effect of shares issued during the year            1,816,712
                                                  -----------
At 31 July 2008                                   51,516,712
                                                  -----------
                                                  -----------


In issue at 1 August 2008                         59,385,000
Effect of shares issued during year                        -
                                                  -----------
Weighted average number of ordinary shares
 at 31 July 2009                                  59,385,000
                                                  -----------
                                                  -----------



There is no difference between the basic and diluted loss per share. At 31 July 2009 there were 3,313,000
(2008: 1,270,000) share options, 478,200 (2008: 478,200) compensation options and nil (2008: 4,675,000) share
warrants in issue which may have a dilutive effect on the basic earnings or loss per share in the future.



16. Trade and other payables
                                  Group      Company      Group      Company
                                   2009         2009       2008         2008
                                 Pounds       Pounds     Pounds       Pounds
                               Sterling     Sterling   Sterling     Sterling
Trade payables                   28,801        4,602    516,165       23,317
Non trade payables               13,327          381     67,498       27,417
Accrued expenses                220,468       93,167    136,533       44,626
                                --------------------------------------------
                                262,596       98,150    720,196       95,360
                                --------------------------------------------
                                --------------------------------------------



17. Interest-bearing loans and borrowings

This note provides information about the contractual terms of the Group's interest-bearing loans and
borrowings. For more information about the Group's exposure to interest rate and foreign currency risk, see
note 18.



                                             2009         2008
                                           Pounds       Pounds
                                         Sterling     Sterling
Non-current liabilities
Bank loan                                  18,348            -
Finance lease liabilities                 441,572      454,370
                                          --------------------
                                          459,920      454,370
                                          --------------------
                                          --------------------


Current liabilities
Current portion of bank loan                1,818            -
Current portion of finance
 lease liabilities                        145,219      136,667
                                          --------------------
                                          147,037      136,667
                                          --------------------
                                          --------------------


Finance lease liabilities

Finance lease liabilities are payable as follows:

                  Minimum                       Minimum
                    lease                         lease
                 Payments Interest Principal   Payments Interest Principal
                     2009     2009      2009       2008     2008      2008
                   Pounds   Pounds    Pounds     Pounds   Pounds    Pounds
                 Sterling Sterling  Sterling   Sterling Sterling  Sterling

Less than
 one year         187,074   41,855   145,219    167,170   30,503   136,667
Between one and
 five years       464,947   23,375   441,572    494,536   40,166   454,370
                 ---------------------------------------------------------
                  652,021   65,230   586,791    661,706   70,669   591,037
                 ---------------------------------------------------------
                 ---------------------------------------------------------



Under the terms of the lease agreements, no contingent rents are payable.

18. Financial risk management

The Group's principal financial assets comprise: cash and cash equivalents and other receivables. In addition
the Company's financial assets include amounts due from subsidiaries. The Group and Company's financial
liabilities comprise: trade payables; other payables; and accrued expenses. The Group's financial liabilities
also include interest bearing loans and borrowings.

All of the Group's and Company's financial liabilities are measured at amortised cost and their financial
assets are classified as loans and receivables.

The board of directors determines, as required, the degree to which it is appropriate to use financial
instruments and hedging techniques to mitigate risks. The main risks for which such instruments may be
appropriate are foreign exchange risk, interest rate risk, credit risk and liquidity risk each of which is
discussed below. There were no derivative instruments outstanding at 31 July 2009.

Foreign currency risk

The majority of the Group's expenses are incurred in the Canadian dollar. The Group's principal exchange rate
exposure is therefore related to movements between the Canadian Dollar and Sterling. The Group's cash resources
are held in Sterling and Canadian Dollars. The Group has a downside exposure to any strengthening of the
Canadian Dollar as this would increase expenses in Sterling terms. This risk is mitigated by reviewing the
holding of cash balances in Canadian Dollars. Any weakening of the Canadian Dollar would however result in the
reduction of the expenses in Sterling terms and preserve the Group's cash resources. In addition, any such
movements would affect the Consolidated Balance Sheet when the net assets of the Canadian Subsidiary are
translated into Sterling.

The policy in relation to the translation of foreign currency assets and liabilities is set out in note 2(d),
'Accounting Policies Foreign Currencies' to the consolidated financial statements.

As a result of the Group's main assets and its subsidiary being held in Canada which has a functional currency
different to the presentational currency, the Group's balance sheet can be affected significantly by movements
in the GB pound to the Canadian Dollar. The Group does not hedge its exposure of foreign investments held in
foreign currencies. There is no significant impact on profit or loss from foreign currency movements associated
with the Canadian subsidiary's assets and liabilities as the foreign currency gains or losses are recorded in
the translation reserve.

Exchange rate fluctuations may adversely affect the Group's financial position and results. The following table
details the Group's sensitivity to a 10% strengthening and weakening in the Canadian Dollar against the GB
Pound. 10% represents management's assessment of the reasonable possible exposure.



                                                    Equity
                                             2009             2008
                                  Pounds Sterling  Pounds Sterling
10% weakening of Canadian Dollar       (2,029,441)      (1,589,116)
10% strengthening of Canadian Dollar    2,254,933        1,748,249
                                        --------------------------
                                        --------------------------



Liquidity risk

To date the Group has mainly relied on shareholder funding to finance its operations. As the Group has finite
cash resources, no material income and given the recent turmoil in the world financial system, the liquidity
risk is significant and is managed by controls over expenditure and cash resources. The liabilities of the
parent company are due within one year. The parent company has adequate financial resources to meet the
obligations existing at 31 July 2009.

The Group's and Company's trade payables, other payables and accrued expenses are generally due between one and
three months and the Group's financial liabilities are due as follows:

Financial liabilities

At the year end the analysis of finance leases, hire purchase contracts and bank loans which were all due in
Canadian Dollars and are at fixed interest rates was as follows:



Fixed rate liabilities
                                                 2009              2008
                                      Pounds Sterling   Pounds Sterling
Due within one year                           147,037           136,667
Due within one to two years                   223,802           175,923
Due within two to three years                 201,147           148,366
Due within three to four years                 11,545           130,081
Due within four to five years                  12,346                 -
Due after five years                           11,080                 -
                                              -------------------------
                                              606,957           591,037
                                              -------------------------
                                              -------------------------



The average fixed interest rate for the finance leases and hire purchase contracts outstanding at 31 July 2009
was 5.50%.

Credit risk

With effect from July 2007, the Group has held the majority of its cash resources in Canadian Dollars given
that the majority of the Group's outgoings are denominated in this currency. As at 31 July 2009, 81% of the
Group's cash resources were invested in a short term deposit. Given the current climate, the Group has taken a
very risk averse approach to management of cash resources and closely monitors events and associated risks on a
continuous basis. There is little perceived credit risk in respect of trade and other receivables (see note
12). The Group's maximum exposure to credit risk at 31 July 2009 was represented by receivables and cash
resources.

Interest rate risk

The Group's policy is to retain its surplus funds on the most advantageous term of deposit available up to
twelve month's maximum duration. Details of the Group's borrowings are described in note 17.

If the interest rate on deposits were to fluctuate by 1% there would be no material effect on the Group's
reported result.

Commodity price risk

Commodity price risk is the risk that the Group's future earnings will be adversely impacted by changes in the
market prices of commodities. The Group is exposed to commodity price risk as its future revenues will be
derived based on contracts with customers at prices that will be determined by reference to market prices of
copper at the delivery date.

Financial assets

The floating rate financial assets comprise interest earning bank deposits at rates set by reference to the
prevailing LIBOR or equivalent to the relevant country. Fixed rate financial assets are cash held on fixed term
deposit.

At the year end the cash and short term deposits were as follows:



                   Fixed rate  Floating                 Average      Average
                       assets      rate              period for     interest
                                 Assets      Total  which rates    rates for
                                                      are fixed   fixed rate
At 31 July 2009        Pounds    Pounds     Pounds                    assets
                     Sterling  Sterling   Sterling       Months            %
Sterling                    -    22,746     22,746            -            -
Canadian $            951,171   194,810  1,145,981            2         0.84
                     -----------------------------
                      951,171   217,556  1,168,727
                     -----------------------------
                     -----------------------------

At 31 July 2008        Pounds    Pounds     Pounds
                     Sterling  Sterling   Sterling       Months            %
Sterling            1,200,000    98,387  1,298,387            1         5.02
Canadian $          3,176,010   633,112  3,809,122            1         2.36
                    ------------------------------
                    4,376,010   731,499  5,107,509
                    ------------------------------
                    ------------------------------



Fair values

In the directors' opinion there is no material difference between the book value and fair value of any of the
group's financial instruments.

19. Capital and operating lease commitments



At 31 July 2009, the Group had the following capital commitments:

                                                  2009               2008
                                       Pounds Sterling    Pounds Sterling
In respect of:
Property, plant and equipment                   25,738             29,591
Exploration and evaluation costs                     -            252,512
                                                -------------------------
                                                25,738            282,103
                                                -------------------------
                                                -------------------------


At 31 July 2009 the company had the following operating lease commitments:

                                                  2009               2008
                                       Pounds Sterling    Pounds Sterling
In respect of land and buildings
Payable within one year                              -             16,260
                                                -------------------------
                                                -------------------------
Other
Payable within one year                          8,892                  -
Payable within one to two years                  8,892                  -
Payable within two to three years                2,224                  -
                                                -------------------------
                                                20,008                  -
                                                -------------------------
                                                -------------------------



20. Related parties

Identity of related parties

The Group has a related party relationship with its subsidiaries (see note 10) and with its directors and
executive officers.

Transactions with key management personnel

Directors of the Company and their immediate relatives control 20% per cent of the voting shares of the
Company.



The directors' compensations were as follows:
                                                  2009               2008
                                       Pounds Sterling    Pounds Sterling
Salary - executive
G Ogilvie (director from 3 March 2008)         104,851             42,022
J Thomson (director from 20 October 2008)       46,685                  -
S Neamonitis (became non-executive
 on 3 March 2008)                                    -             17,600

Fees - non-executive
D H W Dobson                                         -                  -
J M Roberts                                      8,000              8,000
L D Goodman                                      8,000              8,000
B F Dalton                                       1,400              1,400
J A Baker                                        1,400              1,400
B D Hinchcliffe (includes additional
 fees of Pounds Sterling 2,400
 (2007: Pounds Sterling 12,000))                10,400             20,000
                                               --------------------------
                                               180,736             98,422
                                               --------------------------
                                               --------------------------



D H W Dobson waived his entitlement to director's fees for the current and preceding periods. In addition to
their fees B F Dalton and J A Baker provide consultancy services through Altius Resources Inc. ("Altius") (see
below for details). The payment of fees to non-executive directors was suspended during the year in order to
preserve cash. At 31 July 2009 fees of Pounds Sterling 22,267 (2008: Pounds Sterling 6,267) remained
outstanding.



Total key management personnel compensations were as follows:

                                                  2009               2008
                                       Pounds Sterling    Pounds Sterling
Salaries                                       215,251            212,703
Share based payments                            54,158             54,186
                                               --------------------------
                                               269,409            266,889
                                               --------------------------
                                               --------------------------



Transactions with subsidiary undertakings

Details of loans advanced to subsidiary undertakings are included in note 10.

Other related party transactions

Brian Dalton and John Baker, directors of the company are also directors of Altius Resources Inc ("Altius"), a
14% shareholder in the company.

The following expenses reimbursements were payable to directors at 31 July 2009:

S Neamonitis    Pounds Sterling nil (31 July 2008: Pounds Sterling 1,073)

B Hinchcliffe   Pounds Sterling nil (31 July 2008: Pounds Sterling 1,313)

Consultancy fees were payable to Altius Mineral Corporation for the year ended 31 July 2009 for the consultancy
services of J Baker & B Dalton amounting to Pounds Sterling 13,200 (31 July 2008: Pounds Sterling 13,200).

This balance was accrued at the period end.

21. Subsequent events

On 9 September 2009, the company signed a sale and purchase agreement to acquire the Nugget Pond mill for Can$
3.5 million.

On 21 September 2009, the company signed a confidentiality agreement with Tenacity Gold Mining Company Ltd to
evaluate the potential of developing the Deer Cove deposit. The deposit is located on the Baie Verte Peninsula
of Newfoundland, just 50 kilometres from the Nugget Pond mill.

On 21 September 2009, the company announced it has entered into an option agreement with Seaside Realty Ltd
(Seaside) to earn up to a 50% undivided interest in the Corkscrew/Big Bear Property, also located on the Baie
Verte Peninsula. As outlined in the agreement Rambler will assume project management of the property for two
years. During which time Rambler will be responsible for all geologic compilation and exploration management
while Seaside will be responsible for all diamond drilling related costs.

On 29 September 2009, the Group announced the conditional placement of 27,500,000 Ordinary Shares at 20 pence
each to raise approximately Pounds Sterling 5.5 million before expenses. Subsequently, on 20 October 2009,
during an Extraordinary General Meeting, the shareholders granted authority to the directors to issue up to
59,385,000 Ordinary Shares in order to allow the directors to issue the shares for the private placement and to
provide them with the flexibility to seek further finance. Some of the proceeds from this fundraising was used
to complete the acquisition of the Nugget Pond mill on 27 October 2009. The remainder of the proceeds will be
used to finance ongoing engineering projects and fund working capital requirements.

22. Critical accounting estimates and judgements

The details of the Group's accounting policies are presented in accordance with International Financial
Reporting Standards as set out in Note 2 to the financial statements. The preparation of financial statements
in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts
of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the year.

The following estimates are considered by management to be the most critical for investors to understand some
of the processes and reasoning that go into the preparation of the Company's financial statements, providing
some insight also to uncertainties that could impact the Company's financial results.

Going Concern

The risks associated with going concern are explained in note 1.

Exploration and Evaluation Costs

The directors have assessed whether there are any indicators of impairment in respect of exploration and
evaluation costs. In making this assessment they have considered the Group's business plan which includes
resource estimates, future processing capacity, the forward market and longer term price outlook for copper and
gold. Resource estimates have been based on the most recently filed NI43-101 report and metal prices were
conservatively set below current market consensus. Management's estimates of these factors are subject to risk
and uncertainties affecting the recoverability of the Group's exploration and evaluation costs. Any changes to
these estimates may result in the recognition of an impairment charge with a corresponding reduction in the
carrying value of such assets. After consideration of the above factors, the directors do not consider that
there are any indicators that exploration and evaluation costs are impaired at the year end.

Share-based payments

The Group calculates the cost of share based payments using the Black-Scholes model. Inputs into the model in
respect of the expected option life and the volatility are subject to management estimate and any changes to
these estimates may have a significant effect on the cost. The assumptions used in calculating the cost of
share based payments are explained in note 5.



FOR FURTHER INFORMATION PLEASE CONTACT:

Rambler Metals and Mining PLC
George Ogilvie
President & CEO
+1 (709) 532 4990

OR

Rambler Metals and Mining PLC
Leslie Little
Company Secretary
+44 (0) 14-8341-9942

OR

Seymour Pierce Limited
Nandita Sahgal
+44 (0)20 7107 8000

OR

Pelham Public Relations
Chelsea Hayes
+44 (0)20 7337 1523

OR

Pelham Public Relations
Klara Kaczmarek
+44 (0)20 7337 1524

OR

Ocean Equities Limited
Guy Wilkes
+44 (0)20 786 4370

Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts
responsibility for the adequacy or accuracy of this release.

Contact Information

  • Rambler Metals & Mining Plc