Agricola Resources plc
LSE : AGRI

May 29, 2009 10:38 ET

CORRECTION: Final results for the year ended 31 December 2008

                                                                                    GB0003046835/GBP/PLUS-exn
                                                                                                  29 May 2009



                                                 AGRICOLA RESOURCES PLC
                                              ("Agricola" or "the Company")
                                                            
          

                                    Final results for the year ended 31 December 2008
          
          CHAIRMAN'S STATEMENT
          
          The  Board  of  Agricola Resources plc ("Agricola") is pleased to report the audited final  results
          for  the  year to 31 December 2008, which show a loss for the period of £186,979 (2007 - £115,554).
          Agricola  is  continuing its exploration effort in the Baltic countries, with a major  emphasis  on
          Sweden.
          
          The  highlight  of  2008  was  the  reporting on 16 September 2008 of  Agricola's  maiden  Inferred
          Resource  estimate  that was completed to JORC code reporting standard for the  Lulepotten  copper-
          gold  deposit  on  the Ballek Joint Venture project, located in the Norrbotten region  of  Northern
          Sweden.  An  Inferred  Resource  of 5.4 Mt@ 0.8% copper and 0.3  grams  per  tonne  gold  has  been
          estimated for this deposit, containing 43,000 tonnes copper metal and 52,000 ounces gold.
          
          On  31  May  2007 Agricola signed a joint venture with Beowulf Mining plc ("Beowulf")  under  which
          Agricola  may earn a 51% interest in the Ballek copper-gold-uranium exploration permits that  cover
          110  square  kilometers in the Arjeplog municipality, northern Sweden. To earn  this  interest  the
          agreement  required Agricola to complete ground geophysics and 3,000 m of diamond drilling  on  the
          Ballek  tenements prior to 31 December 2008. Agricola was also granted the option to  increase  its
          equity to 70% through sole funding a further exploration program totalling US$500,000.
          
          On  22 January 2009, the terms of the agreement were revised such that the deadline for the initial
          51%  interest  earn-in was extended to 31 March 2010 and the drilling requirement was increased  to
          3,200  m. It is intended that Beowulf will incorporate a new subsidiary company to hold the  Ballek
          exploration permits and that, following completion of the agreed work programme, Agricola  will  be
          given  a  51%  shareholding in this Company. After completion of the additional  US  $500,000  work
          programme  and Agricola attaining a 70% interest, subsequent expenditure on the Ballek  exploration
          permits  would  be according to equity, subject to adjustment in the event that one  party  chooses
          not to fund their proportion of such expenditure.
          
          In  addition  to  the  uranium interest in the Ballek joint venture Agricola  has  four  additional
          licences  with uranium interest. They are Geddaur 1, 2 and 3 and Manakjaure No 1, also in  northern
          Sweden.
          
          The  fundamentals for nuclear power have never been stronger and continue to strengthen  with  more
          applications  and plans for new nuclear reactors being submitted.  From the 439 reactors  currently
          in  operation  in  30  countries,  significant further capacity is  also  being  created  by  plant
          upgrading and plant life extension programmes.
          
          As  I write there are 40 new reactors being built in Russia and South East Asia with another 70 new
          plants  to  be  operational  within the next 15 years. Indeed the nuclear  renaissance  is  gaining
          ground  globally  with Italy, alongside the UK and Sweden the latest country to  come  out  of  the
          nuclear  thaw  by commissioning a new plant to be built by ENEL. In the USA there are  applications
          for  31  reactors now lodged with the US nuclear regulatory commission. Currently the  world  mines
          only  about  60%  of the uranium required to power all these plants, with the bulk of  the  balance
          supplied  from  conversion  of former weapons material to nuclear fuel  rods  (the  "  Megatons  to
          Megawatts programme"). The agreement behind this secondary supply of former weapons grade  material
          expires in 2013 with no clear indication to date that this will extend beyond 2013.
          
          Thus  the  pressure  to discover new uranium deposits is mounting and to quote  the  World  Nuclear
          Association 'Between now and 2050 as the world population swells from 6.6 billion toward 9  billion
          humankind  will  consume more energy than the combined total used in all previous history.'  It  is
          widely  predicted that if we continue on the current path of fossil fuel dependency  the  resulting
          increase  in  green  house  gas emissions will be catastrophic affecting hundreds  of  millions  of
          citizens mainly in the developing world.
          
          The  current  global  financial crisis has caused monetary depreciation  across  almost  all  asset
          classes  with U308 spot prices dropping from $70 per lb to a low of $43 over the past year. However
          there  are signs that some prices may have seen a bottom particularly in the energy sector and  the
          precious  metals complex. The decision by central governments to deploy quantative easing (printing
          money)  to  unblock  the global credit log jam will ensure that inflationary  pressures  will  once
          again  come  to the fore in the not too distant future stimulating commodity prices in  the  energy
          sector.  An  additional  positive  development  is  the  recent  Swedish  and  German  Governments'
          announcements  indicating  a  renewed willingness to consider  further  nuclear  power  generation:
          Agricola with its potential uranium assets is well placed to benefit from any such developments.
          On  23 July 2008 the Directors were sad to have to announce the resignation, due to ill health,  of
          Mr  Richard Newstone. Richard is thanked for his significant contribution to the Company  over  the
          past years.
          
          In  2008  confidence has ebbed away in World financial markets as economies moved  into  recession.
          Share  and  commodity prices have dropped. The future depends on government action to  support  the
          markets.  On  a more positive note, commentators cite Chinese plans for stimulating growth  in  its
          domestic economy and its earthquake damage reconstruction work, with the consequent impact  on  its
          future copper and iron ore requirements.
          
          The Directors do not recommend the payment of a dividend.
          
          
          
          
          PROFIT AND LOSS ACCOUNT
          FOR THE YEAR ENDED 31 DECEMBER 2008
          
                                                                                   2008                            2007
                                                                                     £                              £
          
          TURNOVER                                                                      -                           -
          
          Cost of sales                                                            89,278                       32,415
                                                                                                                  
          GROSS LOSS                                                              (89,278)                     (32,415)
          
          Administrative expenses                                                 110,630                      105,175
                                                                                                                  
                                                                                 (199,908)                    (137,590)
          
          Other operating income                                                    8,632                       14,040
                                                                                                                  
          OPERATING LOSS                                                         (191,276)                    (123,550)
          
          Interest receivable and similar income                                    4,432                        7,996
                                                                                                                  
                                                                                 (186,844)                    (115,554)
          
          Interest payable and similar charges                                        135                            -
                                                                                                                  
          LOSS ON ORDINARY ACTIVITIES
          BEFORE TAXATION                                                        (186,979)                    (115,554)
           
          Tax on loss on ordinary activities                                            -                           -
                                                                                                                  
          LOSS FOR THE FINANCIAL YEAR
          AFTER TAXATION                                                         (186,979)                    (115,554)
                                                                                                                  
          
          Earnings per share expressed
          in pence per share:
          Basic                                                                     -0.12                        -0.08
          Diluted                                                                   -0.09                        -0.07
                                                                                                                           
          
          
          
          BALANCE SHEET
          31 DECEMBER 2008
          
                                                                         2008                            2007
                                                                     £              £               £               £
          FIXED ASSETS
          Intangible assets                                                       250,960                      114,758
          Tangible   assets                                                            -                             1
                                                                                                                                                                                                      
                                                                                  250,960                      114,759
          
          CURRENT ASSETS
          Debtors                                                   51,357                          6,254
          Investments                                                  447                         53,377
          Cash at bank                                               4,965                        285,508
                                                                                                
                                                                    56,769                        345,139
          CREDITORS
          Amounts falling due within one year                       85,934                         51,124
                                                                                                
          NET CURRENT (LIABILITIES)/ASSETS                                         (29,165)                    294,015
                                                                                                               
          TOTAL ASSETS LESS CURRENT
          LIABILITIES                                                              221,795                     408,774
                                                                                                               
          
          CAPITAL AND RESERVES
          Called up share capital                                                1,564,555                   1,564,555
          Share premium                                                            200,252                     200,252
          Profit and loss account                                               (1,543,012)                 (1,356,033)
                                                                                                               
          SHAREHOLDERS' FUNDS                                                      221,795                     408,774
                                                                                                               
          
          
          Emphasis of matter - Going concern
          
          In  forming our opinion on the financial statements, which is not qualified, we have considered the
          adequacy  of the disclosures made to the financial statements concerning the company's  ability  to
          continue as a going concern.  The ability of the company to continue to trade is dependent  on  the
          company  being able to raise sufficient funds from the PLUS market.  Based on the current  economic
          climate  there  exists a material uncertainty which may cast significant doubt as  to  whether  the
          company  will be able to generate sufficient funds and therefore the company's ability to  continue
          as  a  going  concern.  The  financial statements do not include  the  adjustments  that  would  be
          necessary if the company was unable to continue as a going concern.
          
          
          The above information has been extracted from the audited financial statements of the Company.
          
          The Directors of the Company accept responsibility for the contents of this announcement.
          
          
          
          For further information, please contact :
          
          The Company:
          Agricola Resources Plc
          Dr. Robert Young
          Chairman                          +44 (0)1353 649 379
          
          
          Corporate Adviser:
          St Helen's Capital Plc
          Barry Hocken/Duncan Vasey         +44 (0)20 7628 5582

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