Trading Update

RNS Number:1094K
Libra Natural Resources PLC
18 December 2007


Press Release                                                18 December 2007




                          Libra Natural Resources plc

                            ("LNR" or "the Company")

                                 Board changes

                                    Strategy

                             De-merge of Prometheus

                         Wood pellet operational update

                                    Pipeline

                               Review of advisers


Libra Natural Resources plc ("LNR" or "the Company"), the international
renewable wood-to-energy company, is pleased to make a series of announcements
today, which further emphasises the strength of its core wood-pellet operations,
and underlines the commitment of the Board to create an independent, global
leader in this exciting sector of the renewable energy market.

Peter Greensmith, Chief Executive Officer of LNR, will be hosting an investor
conference call on Tuesday 18 December from 12.00pm to 12.30pm, to discuss the
update given today, and to take questions.  If you wish to join the conference
call, please dial [phone] at midday and ask for the Libra Natural
Resources call.


Summary:

  * Appointment of a new Chief Executive Officer, Chief Operating Officer and
    Non-Executive Chairman, with focused international energy and forestry
    expertise;
  * Reaffirmation of the Board's intention to pursue a path of independence,
    as a public company, following the termination of discussions concerning the
    sale of LNR's principal operating asset;
  * De-merger of the Company's 11.55% stake in Prometheus Energy Inc. This
    de-merger is the first of a series of non-core asset sales and spin-offs,
    which is intended to be completed by February 2008;
  * Pre-Closed Period operational update;
  * Over 1.5 million tonnes of new and existing production facilities under
    exclusive option, development and/or due diligence; and
  * Review of the Company's professional advisory and support services.



Board Changes

It is your Board's firm intention to position LNR as the world's number one
producer of wood pellets within the next 24 months. Such an aggressive expansion
plan, which will involve at least a quadrupling of the size of the Company's
activities, requires the development of a Board and Executive Management with
enhanced energy, project management and forestry experience and expertise.

As the first step in this process, LNR is pleased to announce the promotion of
Glenn Smith to the position of Chief Executive Officer, and the intended
appointment of John Stirling to the Board, as Chief Operating Officer and
Finance Director. Glenn, currently LNR's Chief Investment Officer, and John,
currently Head of LNR's wood pellet division, will be able to deploy over 50
years of international power and project management expertise to the task of
leading the Company forward in the next stage of its development. In addition to
these appointments, LNR is delighted to announce that Mark Campanale is to
assume immediately the position of non-executive Chairman (previously he held
the position of non-executive Director.) Mark, an internationally-recognised
environmentalist and expert in forestry, will be at the fore-front of a major
effort by LNR to improve its external communications and investor-relations.

Peter Greensmith will become a non-executive Director of the Company. Your Board
would like to place on record its sincere appreciation for all of Peter's
efforts in successfully leading the Company since its IPO in March 2005. During
this period, the Company's share price has more than trebled, with a series of
value-creative investments in the waste-to-energy market, and your Board is
delighted that LNR will still be able to call upon Peter's financial and
cleantech expertise, as a non-executive Director

Commenting on today's statement, current Chief Executive Officer, Peter
Greensmith said: "These actions represent another significant step in the
evolution of LNR into a major force in the international renewable energy
sector. Whilst I am delighted that I have the opportunity to continue to offer
my broad clean energy investment and financial skills to the Company, from the
position of non-executive Director, I am even more pleased that Glenn Smith,
John Stirling and Mark Campanale, have all accepted my invitation to 'take over
the executive reins'. The new LNR can look forward to 2008 and beyond, with
confidence and excitement."


Strategy

Following the publication of LNR's Interim Results on September 28th 2007, the
Company has been the subject of a number of unsolicited approaches from both
strategic and financial parties, with a view to a partial or total sale of the
Company's wood pellet operations. Whilst your Board, in recognition of its
primary role to protect, develop and maximize shareholder value, entered into
detailed conversations with two of these parties, the decision has now been
taken to terminate all such discussions. This decision reflects your Board's
view that it needed to end this period of uncertainty and ,in particular, that
much greater shareholder value can be delivered by pursuing the Company's growth
strategy as an independent, public entity.



De-merger

With the publication of LNR's Interim Results on 28 September 2007, your Company
stated that it intended to accelerate the re-focusing of its operations on to
the wood pellet sector. Whilst the Board's anticipated timetable for this
re-focusing has been impacted by the receipt of the unsolicited approaches
outlined above, LNR is today pleased to announce that it has reached agreement
with the AiM-listed renewable energy company, Ethanol Investments plc ('EI'),
for the sale of LNR's 11.55% stake in Prometheus Energy. The sale of this stake,
which is subject to EI shareholder approval, values LNR's stake at £3.4 million.
As consideration, LNR will receive new EI plc shares, giving the Company a stake
of approximately 21% in Evergreen Securities plc, the new name for EI following
its scheduled re-listing on AIM next month.  It is the intention of LNR to
reduce this holding over time, as EI expands its operations and dependent upon
LNR's ongoing financing requirements.

Discussions are also at an advanced stage for the disposal of LNR's other
non-wood pellet assets, and your Board is confident that this re-focusing
process will be complete by the end of February 2008, in line with the timetable
outlined in LNR's Interim statement.



Wood Pellet Operational Update

LNR's wood pellet operations continue to trade in line with management
expectations, outlined in the Company's Interim Results statement. Total
production tonnage at our British Columbian facilities are expected to be well
ahead of last year which will have a significant impact on revenues and gross
profit.

The upgrade projects for the Canadian operations have progressed well.  The
bagging equipment at Westbank has been in successful operation since September
allowing further access to higher margin markets.  The production capacity
expansion at Princeton Co-Generation Corporation and finished inventory storage
are complete and the additional drying capacity will be commissioned in early
Q1.

In October, LNR successfully acquired a profitable wood-chip production facility
in Louisa County, Virginia, USA which has been focused on operational
improvements in the chipping plant and completion of the engineering design for
the planned pellet mill addition.   Certain key equipment for the pellet mill
has been ordered, and are currently being manufactured for delivery in Q1 2008.



Pipeline

In line with the Company's new strategic direction, outlined earlier this year,
which described a significant increase in size, scale, and range of investments
in our wood pellet business, LNR is pleased to confirm several significant
developments;


*  Exclusive MOU signed to develop additional pellet capacity in Canada
*  Acquisition of certain development rights over a large-scale pellet facility in the Eastern USA;
*  Entering into due diligence on the acquisition of a major North American wood pellet facility;
*  Signing of an exclusive MOU, covering the proposed development of a series of wood pellet plants in
   Russia;
*  Advanced joint-venture discussions relating to existing and proposed pelletising facilities in China.


Whilst no guarantee can be given over the outcome of any of these negotiations
or processes, with nearly 2 million tonnes per annum of new or existing
production under current review, the Board believes that LNR is well positioned
to deliver on its objective of being the world's leading producer of wood
pellets within the next 24 months.



Financial Adviser review

As part of LNR's renewed commitment to adopt a more active and responsive
investor relations structure during this time of strategic change and
international growth, the Board has asked LNR's in-coming Chairman, Mark
Campanale, in conjunction with the Company's Nominated Adviser, Landsbanki, to
undertake a formal review of the Company's financial advisory team.  Following
the review, Mark has been asked to report back to the Board within 45 days.  Any
changes resultant from this review will be announced and implemented by the end
of Q1 2008.



                                    - Ends -



For further information:
Libra Natural Resources plc
Peter Greensmith                                       Tel: [phone]

Glenn Smith

John Stirling


Landsbanki Securities (UK) Ltd
Nominated Advisor & Joint Broker                       Tel: [phone]
Gareth Price/Simon Brown, Corporate Finance
Ambrian Partners Limited
Joint Broker                                           Tel: [phone]
Shaun Whyte



Media enquiries:
Abchurch
Heather Salmond / Joanne Shears                        Tel: [phone]
[e-mail]                          www.abchurch-group.com






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