Interim Results

RNS Number:8391I
Angus & Ross PLC
30 November 2007


                                ANGUS & ROSS PLC

           INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2007

Highlights

  * New Black Angel resource statement shows 66% increase in metal content
  * Expanded exploration programme being planned
  * Start of mining on schedule for 2008
  * Trial mining at Sta Elena in Brazil
  * Cash and bank balances of #7,418,298
  * Loss for the period amounts to # 2,434,166



Chairman's Statement

Dear Shareholder,

This is an appropriate opportunity to provide an update on progress on various
fronts.   Firstly, I am happy to report the good news that an updated resource
statement has now been received for Black Angel and the surrounding area in
Greenland; further details are given below.  Two other reports, namely the
feasibility study for the removal of ore from the pillars at the Black Angel and
the Resource statement from Brazil are still eagerly awaited.

In July the Company drew down  the first tranche - $12.5 million  - of the
facility negotiated with Cyrus Capital Partners earlier in the year and as a
result and in addition to this year's exploration programme, engineering work at
the Black Angel has been able to proceed at an accelerated pace.

During the period under review, a further #0.5 million was also raised in equity
as the result of a small private placing.

FINANCIAL

The loss for the period amounts to #2,434,166, compared to #1,963,221 in the
same period last year. The great majority of this is accounted for by the active
exploration programmes being carried out in both Greenland and Brazil.

At 31 August, our cash and bank balances amounted to #7,418,298 compared with
#5,468,568 at 31 August 2006. As mentioned above, this consists largely of
monies drawn down from the Cyrus facility.

REVIEW OF OPERATIONS

GREENLAND

The updated resource statement, including the results from the 2007 drilling
season, has been received from our consultants Wardell Armstrong International.
I am pleased to report that the tonnage of the metal contained in our resource
increased significantly compared to last year. For the South Lakes Glacier
deposit contained zinc rose by 66% and contained lead by 114%. We also gained
additional resources of 24k tonnes (contained Zn/Pb metal) in the Nunngarut 2
area. Ark prospect tonnage remains unchanged at 34k tonnes of metal (Zn/Pb). The
report also highlights the high prospectivity of the Uvkisigssat area which we
believe contains at least a further 25k tonnes of metal.

Planning of next year's exploration programme has already started.  This is
likely to be expanded and more aggressive than in previous years following the
successful drilling of the last two years; we are further encouraged by reports
received recently from the structural geologists who now believe that the whole
of the Angus & Ross licence area of 259 square kms (which includes Uvkisigssat,
Agpat Island and the Karat Group) has the potential to host other Black Angel
type ore bodies.  This opinion is now getting the attention of several large
companies who are also convinced that the area merits a large and intense
exploration effort, a message which has been communicated to your company.

The latest news is that the cable car, manufactured by Garaventa AG of
Switzerland, the gear mechanism, cables and other parts have arrived at
Maarmorlik and that several local and Swiss subcontractors are about to be
engaged on the  engineering work at the lower terminal.   The upper terminal
cannot be completed until spring next year.   Subject to receiving the necessary
approvals from the Greenland authorities we are on schedule for the mine to be
accessible by cable car by September 2008 and for at least 30,000 tons of high
grade ore to be extracted by the end of next year.

Once access to the mine is obtained it will be possible to install equipment to
pre-concentrate the ore as well as to start planning exploitation of the new
discoveries - the South Lakes glacier and Ark deposits, for example - in the
surrounding area.

Another great advantage of having access to the mine is that an area at the far
end called the Deep Ice Zone can be explored.   Cominco started producing high
grade ore from this part of the mine in about 1985 but shut operations down when
water flows produced operational problems. It is hoped that this water can be
diverted and that the Deep Ice Zone extension - potentially large as well as
high grade - can be exploited.

BRAZIL

Near Cuiaba, adjacent to an existing mine and mill, an active exploration
programme of trenching and pitting and drilling on the 110 km2 Sta Debora
licence area is currently taking place.  The exploration target is to outline a
resource of 600,000 oz of gold in an eluvial deposit with potential for
underlying hard-rock deposits.   The resource statement, relating only at this
stage to a small proportion of the property, from Canadian consultants Wardrop
Engineering Inc is unlikely to be produced before February 2008 partly due to
the slow turn round of assay results.

At the company's other main tenement, Sta Elena, trial mining has been taking
place on this former RTZ project.  The resource statement is due shortly and
should allow production of about 20,000 oz a year to start late in 2008 -
subject to the availability of the necessary mining approvals.

AUSTRALIA

Queensland Gold and Minerals, your company's 28% owned associate is persevering
with exploration on the company's seven main Cu/Au prospects in Northern
Queensland.  Some joint ventures have been concluded.  Progress has been
severely delayed by the lack of availability of drilling crews/rigs particularly
in the region where the company is operating.  Nonetheless, drilling is about to
start at   Top Camp, in the Mt Isa area.

PERSONNEL

Shareholders will have read the recent news releases announcing the appointments
of Mr Nicholas Hall as Chief Executive Officer, Mr Leon Coetzer as project
manager for Black Angel and most recently, Mr Christopher Innis as a
non-executive director.  Their arrival is welcomed by the existing team and
there will no doubt be other additions as your Company makes the transition from
pure exploration to production.

St Andrews Mining Ltd, our subsidiary which looks after all our Brazilian
interests, has appointed Mr David Thomas to the board.  Mr Thomas's knowledge of
Brazil from his time as a full board director and as country manager for Lloyds
Bank International will be invaluable.

In conclusion it has been an extremely active six months for your management
team; with a new year on the horizon, we look forward keenly to the generation
of our first revenue.

RM Andrews
Chairman

29 November 2007



CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 31 AUGUST 2007
                                                              6 months to 31   6 months to   12 months to 28
                                                                 August 2007     31 August     February 2007
                                                                   Unaudited          2006         Unaudited
                                                                                 Unaudited
                                                                           #             #                 #

Continuing operations
Revenue                                                                    -             -                 -

Depreciation of capitalised exploration costs                              -     (126,590)         (222,962)
Exploration costs impaired                                                 -   (1,256,157)                 -
Exploration costs written off                                    (1,930,851)     (102,633)       (2,544,175)
Impairment of goodwill                                                     -             -         (855,988)
Other operating costs                                              (547,909)     (785,838)       (1,275,260)

Operating loss                                                   (2,478,760)   (2,271,218)       (4,898,385)

Share of loss of associate                                         (133,265)             -          (28,480)

Total operating loss                                             (2,612,025)   (2,271,218)       (4,926,865)

Deemed gain on reduction of holding in subsidiary                    256,441       148,821           334,514
                                                                     
Finance income                                                       131,418       174,654           242,425
Finance costs                                                      (210,000)      (15,478)          (15,478)

Loss before tax                                                  (2,434,166)   (1,963,221)       (4,365,404)
Taxation                                                                   -             -                 -
Loss for the period from continuing operations                   (2,434,166)   (1,963,221)       (4,365,404)
Attributable to:
Equity holders of the parent                                     (2,432,124)   (1,771,921)       (4,161,801)
Minority interest                                                    (2,042)     (191,300)         (203,603)
                                                                 (2,434,166)   (1,963,221)       (4,365,404)
Earnings per share

Basic loss per share                                                 (1.74p)       (1.43)p         (3.16)p
Diluted loss per share                                               (1.72p)       (1.40)p         ( 3.04)p



CONSOLIDATED BALANCE SHEET
AS AT 31 AUGUST 2007
                                                             6 months to 31    6 months to 31    12 months to 28
                                                                August 2007            August      February 2007
                                                                  Unaudited              2006          Unaudited
                                                                                    Unaudited
                                                                          #                 #                  #
Assets

Non-current assets
Intangible  assets                                                        -           859,813                  -
Property, plant and equipment                                     1,718,603           602,560             51,988
Investments accounted for using the equity method                   411,492             5,180            544,757
                                                                  2,130,095         1,467,553            596,745

Current assets
Trade and other receivables                                         421,616           258,304            395,921
Cash and cash equivalents                                         7,418,298         5,468,568          3,957,526
                                                                  7,839,914         5,726,872          4,353,447

Current liabilities
Trade and other payables                                          1,410,034           511,779            468,431
                                                                  1,410,034           511,779            468,431

Net current assets                                                6,429,880         5,215,093          3,885,016

Non-current liabilities
Other payables                                                    5,977,161           102,200             87,078
                                                                  5,977,161           102,200             87,078

Net assets                                                        2,582,814         6,580,446          4,394,683

Equity
Equity share capital                                              1,413,772         1,381,272          1,387,772
Share premium                                                    12,473,896        11,937,916         11,990,416
Share option reserve                                                681,055           357,015            558,105
Translation reserve                                                  31,513          (26,375)             47,625
Retained earnings                                              (12,007,439)       (7,199,355)        (9,589,235)
Equity attributable to equity holders of the parent               2,592,797         6,450,473          4,394,683
company
Minority interest                                                   (9,983)           129,973                  -

Total equity                                                      2,582,814         6,580,446          4,394,683


CONSOLIDATED CASHFLOW STATEMENT
FOR THE PERIOD ENDED 31 AUGUST 2007
                                                          6 months to 31    6 months to 31     12 months to 28
                                                             August 2007            August       February 2007
                                                               Unaudited              2006           Unaudited
                                                                                 Unaudited
                                                 Notes                 #                 #                   #

Loss before tax                                              (2,434,166)       (1,963,221)         (4,365,404)
Adjusted for:
Depreciation                                                           -           126,590             234,493
Amortisation of goodwill                                               -                 -             855,988
Impairment loss                                                        -         1,256,157                   -
Share of loss of associate                                       133,265                 -              28,480
Profit on part disposal of subsidiary                          (256,441)         (148,821)           (334,514)
Finance income                                                 (131,418)         (174,654)           (226,947)
Finance costs                                                    210,000            15,478                   -

Increase in trade and other receivables                         (25,695)          (78,366)           (215,983)
Increase in trade and other payables                             897,789           245,999             187,528
Movement in receivables and payables on                                                              (213,437)
disposal of subsidiary
                                                                       -                 -
Share based payments                                             136,870           127,000             328,090
Release of provision against investment                                -           (5,180)                   -
Other non-cash movements including exchange                     (16,112)           (7,609)              56,093
differences
Net cash outflow from operating activities                   (1,485,908)         (606,627)         (3,665,613)

Investing activities
Purchase of property, plant and equipment                    (1,666,615)       (1,360,449)            (24,112)
Part disposal of subsidiary undertaking                          248,500           294,216             381,020
Interest received                                                131,418           174,654             226,947
Cash flows from investing activities                         (1,286,697)         (891,579)             583,855

Financing activities
Equity share capital subscription (net)                          509,480                 -           6,036,632
Equity share capital subscription in                                   -         5,977,631                   -
subsidiary
New borrowings, net of costs                                   5,723,897                 -                   -
Interest paid                                                          -          (15,478)                   -
Cash flows from financing activities                           6,233,377         5,962,153           6,036,632


Net increase/(decrease) in cash and cash                       3,460,772         4,463,947           2,954,874
equivalents
Cash and cash equivalents at start of period                   3,957,526         1,008,062           1,008,062
Exchange movements                                                     -           (3,441)             (5,410)
Cash and cash equivalents at end of period                     7,418,298         5,468,568           3,957,526






CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 AUGUST 2007


                 Ordinary      Share       Share    Translation    Retained       Total      Minority   Total equity
                   share      premium     option      reserve      earnings                  interest
                  capital                 reserve        
                          #           #           #            #            #             #           #            #
                                                                                  
At 1 March 2006     753,144   4,874,177     230,015            -   (5,427,434)      429,902   1,043,543    1,473,445
Loss for the              -           -           -            -   (1,771,921)  (1,771,921)   (191,300)  (1,963,221)
period
Shares issued       628,128   7,063,739           -            -             -    7,691,867           -    7,691,867
Effect of                 -           -           -            -             -            -   (722,270)     (722,270)
changes in
minority                                                                                      
interests
Share based               -           -     127,000            -             -      127,000           -      127,000
payments
Exchange                  -           -           -    (26,375)              -     (26,375)           -     (26,375)
difference
                                                        
At 31 August      1,381,272  11,937,916     357,015     (26,375)    (7,199,355)    6,450,473     129,973    6,580,446
2006
Loss for the              -           -           -            -   (2,389,880)  (2,389,880)    (12,303)  (2,402,183)
period
Shares issued         6,500      52,500           -            -             -       59,000           -       59,000
Effect of                 -           -           -            -             -            -   (117,670)    (117,670)
changes in
minority
interests
Share based               -           -     201,090            -             -      201,090           -      201,090
payments
Exchange                  -           -           -       74,000             -       74,000           -       74,000
difference

At 28 February    1,387,772  11,990,416     558,105       47,625  (9,589,235)    4,394,683           -    4,394,683
2007
Loss for the              -           -           -            -   (2,432,124)  (2,432,124)     (2,042)  (2,434,166)
period
Shares issued        26,000     483,480           -            -             -      509,480           -      509,480
Effect of                 -           -           -            -             -            -     (7,941)      (7,941)
changes in
minority                                                       
interests
Share based               -           -     136,870            -             -      136,870           -      136,870
payments
Share options             -           -    (13,920)            -        13,920            -           -            -
expired
Exchange                  -           -           -     (16,112)             -     (16,112)           -     (16,112)
difference

Balance at 31     1,413,772  12,473,896     681,055       31,513  (12,007,439)    2,592,797     (9,983)    2,582,814    
August 2007
                                            


Notes to the financial statements

1.  Accounting policies

General

The following is a summary of the Group's principal accounting policies.

Basis of preparation

The annual financial statements of Angus & Ross plc for the year ending 28
February 2008 will be prepared in accordance with  International Financial 
Reporting Standards (IFRS) as adopted for use in the EU. Accordingly, the 
interim financial report has been prepared using accounting policies
consistent with those which will be adopted by the Group in those financial
statements.

The Group's IFRS accounting policies, set out below, have been consistently
applied to all the periods presented. The information has been prepared under 
the historical cost convention.

The comparative figures for the year ended 28 February 2007 do not constitute
statutory accounts for the purposes of s240 of the Companies Act 1985. A copy of
the statutory accounts for the year ended 28 February 2007, prepared under UK
GAAP, has been delivered to the Registrar of Companies and contained an
unqualified auditor's report in accordance with s235 of the Companies Act 1985
and no report was given under s237(2) or (3).

Basis of consolidation

The Group financial information consolidates that of the Company and its
subsidiaries. Businesses acquired or disposed of during the period are
consolidated from the effective date of acquisition or until the effective date
of disposal.

All intra-group transactions, balances, income and expenses are eliminated on
consolidation.

Business combinations

The Group has applied the exemption from retrospectively recalculating goodwill
which arose on acquisitions prior to 1 March 2006. This goodwill is included at
its deemed cost, being the amount recorded under UK GAAP as at 1 March 2006
following an impairment review.

Cumulative translation differences

As permitted by IFRS1, the Group elected to deem cumulative currency translation
differences to be #nil as at 28 February 2006.

Share based payment transactions - change in accounting policy

As explained in the statutory accounts, for the year ended 28 February 2007, the
Group adopted the applicable accounting standard on share based payment
transactions, which gave rise to a prior period adjustment which established the
share option reserve (and increased the deficit on the retained earnings
reserve) at 1 March 2006 in the sum of #230,015.

Goodwill

Goodwill arising on consolidation consists of the excess of the fair value of
the consideration over the fair value of the Group's interest in the
identifiable tangible and intangible assets net of liabilities including
contingencies of the business acquired at the date of acquisition.

Goodwill is recognised as an asset at cost less any recognised impairment
losses. It is reviewed for impairment at least annually and any impairment is
recognised immediately in the Income Statement.

Goodwill arising on acquisitions prior to the date of transition to IFRS had
already been fully impaired prior to the date of transition.

Exploration expenditure

Expenditure on the acquisition cost, exploration and evaluation of interests in
licences including related overheads is capitalised. Such costs are carried
forward in the balance sheet under fixed assets and are amortised over the
minimum period of the licences in respect of each area of interest where such
costs are expected to be recouped through successful development and
exploitation of the area of interest or alternatively by its sale. Where doubt
exists over the viability of a project, the associated deferred expenditure and
development costs are written off to the income statement.

Deferred contribution to exploration costs

It is the policy of the Group to treat as deferred any income or contribution to
costs received which the Group is not entitled to recognise within the
accounting period under review because the income or contribution relates to a
future defined period of time.

A contribution was received from a third party to support expenditure on an
exploration project covering a period commencing 1 January 2006; this
contribution grants the third party an option over potential production from
that exploration project. Exploration on the project in question is incurred
evenly over its life and accordingly the contribution received is being credited
against exploration expenditure in the income statement on a straight line basis
over that period.

That proportion of the contribution received and not yet credited against
exploration costs in the income statement is included in deferred income.

Share-based payment transactions

The Group share option plan allows Group employees and consultants to acquire
shares in the Company. The fair value of options granted in exchange for
services received is recognised as an employee cost in the income statement with
a corresponding increase in equity. The fair value is measured at the date of
grant using the Black-Scholes-Merton formula by reference to the fair value of
those options so granted and is considered the most appropriate method taking
into account the effect of the vesting conditions, the expected exercise period
and the dividend policy of the Company.

There are no market vesting conditions attaching to any of the option grants and
the amount recognised as an expense is adjusted to reflect the actual number of
share options that vest.

Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation
and any recognised impairment losses. Assets in the course of construction have
not been depreciated.

Depreciation is calculated to write off, on a straight line basis, each asset,
less its estimated residual value, over its estimated useful life as follows:

*         Office equipment - 10% to 25% per annum

The gain or loss arising on disposal or retirement of an asset is determined as
the difference between the sale proceeds and the carrying amount of the asset
and is recognised in income.

Useful economic lives, residual values and the method of depreciation are
reviewed each year.

Deferred taxation

Deferred tax is provided in full using the balance sheet liability method.
Deferred tax is the future tax consequence of temporary differences between the
carrying amounts and tax bases of assets and liabilities shown on the balance
sheet. Deferred tax assets and liabilities are not recognised if they arise in
the following situations:

*         The initial recognition of goodwill
*         The initial recognition of assets and liabilities that affect neither
accounting nor taxable profit.

The amount of deferred tax provided is based on the expected manner of recovery
or settlement of the carrying amount of assets and liabilities, using tax rates
enacted or substantially enacted at the balance sheet date.

The Group does not recognise deferred tax liabilities or deferred tax assets on
temporary differences associated with investments in subsidiaries and associates
as it is not considered probable that the temporary differences will reverse in
the foreseeable future. It is the Group's policy to reinvest undistributed
profits arising in Group companies.

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. The carrying amount of the deferred tax asset is reviewed at each
balance sheet date and reduced to the extent that it is no longer probable that
sufficient taxable profit will be available to allow all or part of the asset to
be recovered.

Investments in undertakings accounted for using the equity method

Entities other than subsidiary undertakings or joint ventures, in which the
Group has a participating interest and over whose operating and financial
affairs the Group exercises a significant influence, are treated as associates.
In the Group accounts, associates are accounted for using the equity method.

Foreign currencies

The Group's presentational currency is Sterling. The functional currency of the
parent is Sterling and those of the principal operating subsidiaries are Euros,
US dollars, Brazilian Reals and Danish Kroner.

Transactions denominated in foreign currencies are recorded at the prevailing
rate on the day of the transaction.

Trading assets and liabilities denominated in foreign currencies are translated
into Sterling at the period end exchange rate. Gains and losses arising on the
translation of foreign currencies are recognised as part of operating profit or
loss.

The assets and liabilities of foreign subsidiary undertakings are translated
into Sterling at the period end exchange rate. The income and expenditure of
foreign subsidiary undertakings are translated into Sterling at the rate
prevailing on the date of the transaction. Exchange differences arising on
retranslation of opening assets and liabilities, long term financing denominated
in foreign currency and the trading of foreign subsidiary undertakings are taken
directly to the translation reserve.

Goodwill and fair value adjustments arising on the acquisition of a foreign
entity are treated as assets and liabilities of the foreign entity and
translated at the closing rate. The Group has elected to treat goodwill and fair
value adjustments arising on acquisitions before the date of transition to IFRS
as Sterling denominated assets and liabilities.

Financial instruments

The Group's financial instruments comprise borrowings, some cash and liquid
resources and items such as trade payables that arise directly from its
operations. The primary purpose of these financial instruments is to manage the
finance of the Group's operations.

Financial assets and financial liabilities are recognised in the Group's balance
sheet when the Group becomes a party to the contractual provisions of the
instrument.

Equity instruments

Equity instruments issued by the Group are recorded at the proceeds received net
of direct issue costs.

Trade payables

Trade payables do not carry any interest and are stated at their nominal value.

Borrowings

Financial liabilities are initially recognised at net proceeds, being the amount
received net of transaction costs directly attributable to the relevant
borrowing. Financial liabilities are subsequently measured at amortised cost
using the effective interest method.

Throughout the period under review it has been the Group's policy that no
trading is undertaken in financial instruments. The Group considers that it has
no obligations or rights under derivative financial instruments.

The main risks, and the board's policy for the management of such risks, are set
out below:

*         Interest rate risk

The Group finances its operations through a mixture of equity issues and debt
facility. The Group holds cash in various currencies at floating rates of
interest.

*         Liquidity risk

The Board reviews and monitors the need for access to liquid funds and seeks to
ensure their availability ahead of requirement.

*         Foreign currency risk

The Group has transactional currency exposures. Such exposure arises from
activity by operating units in currencies other than Sterling, the Group's
presentational currency. The Group holds cash in various currencies, sufficient
to manage short term requirements.

2.         Pension costs

The Group operates a defined contribution scheme. Contributions are payable into
a Group Personal Pension Plan (GPPP) whose assets are held in separately
administered funds. The amount charged against profits represents the
contributions payable to the scheme in respect of the period under review.

3.         Minority interests

The deemed gain on the disposal of interests in subsidiaries arises directly as
a result of private placings by those subsidiaries made to third parties.

4.         Share capital

On 30 April 2007 the Company issued 400,000 new ordinary shares at a price of 10
pence each as the result of the exercise of share options. On 23 July 2007 the
Company successfully concluded a private placing of 2,200,000 shares at 22 pence 
each. Issue expenses have been netted off against the Share premium account.

5.          Earnings per share

                        31.8.07      31.8.07        31.8.06         31.8.06        28.2.07        28.2.07
                       Earnings        EPS          Earnings          EPS         Earnings          EPS
                           #            p              #               p              #              p
Basic earnings per     (2,432,124)      (1.74)        (1,771,921)      (1.43)       (4,161,801)      (3.16)
share
Diluted earnings per   (2,432,124)      (1.72)        (1,771,921)      (1.40)       (4,161,801)      (3.04)
share

The weighted average number of shares for the basic earnings per share
calculation as at 31 August 2007 was 139,525,029 (28 February 2007 -
131,895,511: 31 August 2006 - 123,589,254).

The weighted average number of shares for the diluted earnings per share
calculation as at 31 August 2007 was 141,274,919 (28 February 2007 -
136,873,776: 31 August 2006 - 126,773,319).

6.         Post balance sheet events

On 1 September 2007, as a result of a private placing, the company's subsidiary,
St Andrews Mining Limited issued a further 11,000,000 new ordinary shares of 1p
at a price of 7.5p per share. Following this transaction, the Company retains a
75.76% interest in St Andrews Mining Limited.

7.         Dividends

            No dividends were paid or are proposed in respect of the six months
ended 31 August 2007.

8.      Reconciliation of UK GAAP to IFRS

Apart from classification differences, the directors have identified no
numerical adjustments required to reconcile the Group's data transition balance
sheet, comparative balance sheet, comparative income statement or comparative
cash flow statement from UK GAAP to IFRS.

9.         Interim Statement

This interim statement is being sent by post to all registered shareholders.
Additional copies are available from the Company's offices at St Chad's House,
Piercy End, Kirkbymoorside, York, YO62 6DQ.










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