MOU Exclusivity Extension (3145R)

TIDMQRES

RNS Number : 3145R

Q Resources Plc

02 November 2011

Q Resources Plc

Further extension of exclusivity period for MCP project

2 November 2011

Q Resources Plc ("QRES" or the "Company") announces today that further to the announcement made on 1 July 2011, it has agreed a further extension to the exclusivity period during which it will continue with its due diligence in relation to the potential purchase of the Montecristo Copper Mine and the Santo Domingo processing plant (together the "Montecristo Copper Project" or "MCP"). The exclusivity period will now conclude on 30 November 2011. The Company's AIM securities remain suspended pending publication of an admission document

The potential completion of the purchase of MCP has taken longer than originally envisaged, as a higher level of due diligence has been required. In addition, the Company identified an issue in respect of the historic transfer of ownership of title to one of the tailings dumps, forming part of the assets of MCP, which caused a delay to some parts of the due diligence process. Following investigation, it became apparent this was not an issue which would prevent the Company from pursuing the acquisition of MCP. In addition, market conditions remain challenging and the Company has required more time to explore various financing options.

To date, the Company has incurred or accrued expenses of approximately GBP1 million in completing due diligence and preparing documentation in respect of the potential purchase of MCP, approximately GBP200,000 of such expenditure having been accounted for in the Company's financial results for the six months ended 30 June 2011.

The Company and the Vendors have both agreed that further time is required to complete the advanced stages of documentation as well as evaluating a number of potential financing options.

For further information contact:

Smithfield Consultants Limited

Scott Fulton / John Kiely

[phone]

Fairfax I.S. PLC

Nomad and Broker

Ewan Leggat/Katy Birkin

[phone]

Notes to Editors

About Q Resources

Q Resources is a Jersey public limited company which has been established for the purpose of identifying and acquiring, or making investments in natural resources assets. The Company's strategy is to take advantage of opportunities to acquire assets that need capital and possess potentially valuable resources and operations with an initial focus on Africa and South America.

About MCP

MCP operated as a copper mine for 11 years until 2008, at which point the mine was placed on care and maintenance as a result of the global financial crisis. An exploration programme in 2008 provided a resource estimate and a project design for the production of 10,000 tonnes per annum of copper in concentrate, and approximately 0.5 million tonnes of iron ore concentrate per annum at 68% Fe. The underground mine design comprises open stope mining with ore requiring conventional crushing, milling, flotation, and magnetic separation prior to delivery to the market. The existing Santo Domingo process plant would be acquired from the Vendors and comprises the substantial part of the required operating facilities. A dedicated small port will be required to be built to export the iron-ore concentrate.

AIM Rule 14

The Company notes that the Potential Transaction as contemplated would constitute a reverse takeover under the AIM Rules for Companies and will require the publication of an admission document in respect of the Company as enlarged by the acquisition of MCP and the consent of the Company's shareholders in a general meeting.

The Company is not currently in a position to comply with the requirements of Rule 14, insofar as publication of an admission document and convening of a general meeting are concerned. Consequently, the Company's shares will remain suspended from trading on AIM until such time as the Company is able to publish an admission document or the Potential Transaction is no longer in contemplation.

For further information please visit http://www.qresourcesplc.com

This information is provided by RNS

The company news service from the London Stock Exchange

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