Regency Mines PLC - Interim Results

RNS Number:1045R
Regency Mines PLC
31 March 2008

Regency Mines plc

Half-yearly report - six months ended 31 December 2007

Dated: 31 March 2008

Regency Mines plc ("Regency" or the "Company") the mineral exploration and
development company focused on exploring areas of copper and nickel potential in
Western Australia, Queensland, and Papua New Guinea, announces its unaudited
half-yearly report for the six months ended 31 December 2007.

Chairman's statement

Dear Shareholders,

Summary

The Company reports the following developments during the six months to 31
December 2007:

• Exploration focus on the Company's lateritic nickel property in Papua New
Guinea
• £585,000 before expenses raised from a share placing in September 2007 at
3.5p
• Impact of Typhoon Guba on operations in Papua New Guinea.

Exploration

Drilling began in the second half of 2007 at the Company's Mambare lateritic
nickel project in Oro Province, Papua New Guinea. Although there is a road from
nearby the project to the provincial port, communications with other provinces
are by air or transhipment from Port Moresby, and the terrain within the project
area is deeply incised tropical forest without road access and dependent on
tracks. Therefore, on the advice of its resident geologist, who has several
years experience in the country, the Company has initially been operating with
lighter equipment, including man-portable drill rigs, transportable along tracks
by teams of 4 to 10 men. Identifying suitable equipment for cost-effective and
efficient use has been a matter of trial and error, exacerbated by the high
demand and short supply of almost all categories of rig.

The Company began drilling in a small south-western portion of the Mambare
licence close to the Kokoda-Popondetta road and along the Aruma river valley
which provides access, with the object of delineating a small resource of
limonite ore suitable for direct shipping.

43 Auger holes were drilled along three prepared east-west lines between August
and November 2007 for 278.7m of drilling. With bits and equipment for conversion
to diamond drilling not arriving on schedule, the drill penetration was affected
by any encounter with boulders or rock fragments. Despite shutting down for a
period for adjustments, results did not significantly improve. The rig was put
on standby in November awaiting the delivery of HQ diamond drilling equipment,
when severe floods associated with Typhoon Guba terminated the 2007 programme.

A small wacker drill and drill string were after delays delivered in October,
and 26 wacker holes for 124m of drilling, including some duplicating the earlier
auger results, were drilled over the next month. These holes were drilled on
sections 21600N (CAW008-019), 22000N (CAW054-059) and 22800N (CAW060-067). The
easternmost hole on Section 21600N, CAW019, intersected ore grade material, with
3 metres of 0.95% nickel. To the west the holes were collared on alluvial flats.
Drilling needs to be continued to the east on the higher prospective country.

Within Section 22000N, ore grade mineralisation was intersected in 5 of the 6
holes. The un-mineralised hole was collared on the Aruma alluvial flats.
Further drilling is required to the east.

On Section 22800N, eight wacker holes, CAW060-067, were drilled. Ore grade
nickel or cobalt mineralisation was intersected in 6 of these holes. Generally
better penetration was achieved with the wacker rig than the auger core rig, but
it was also stopped by larger boulders and harder saprolite material.

The drilling completed in 2007 indicates that the flat country on either side of
the Aruma River hosts transported volcanic ash and laterite material, possibly
re-worked landslips. The higher ridges to the east and west of the Aruma River
are mineralised with 1-12 metres of 0.8% to 1.35% nickel and 0.04-0.19% cobalt.
The plateau west of the ridge west of the Aruma was considered un-mineralised
from the historical data. The current drilling indicates that this area is
mineralised with cobalt grades up to 0.19% over 2-6 metre intervals. Cobalt was
not assayed in the historical data.

To fully test the laterite, diamond or tungsten carbide drilling is needed to
test the profile of both the limonite and saprolite horizons. The wacker can,
at best, only test the limonite material.

Exploration in 2008 will focus on delineating a resource in the targeted areas
along the north-south ridges which contain the best mineralisation and cross-cut
the east-west lines along which the 2007 programme was carried out. Drills
capable of penetrating the saprolite will be used to obtain complete profiles in
the current exploration area, the higher plateau areas nearby, and further
east-west lines to the immediate north. Some holes will be drilled at selected
points elsewhere in the Mambare plateau to evidence the scale of the
mineralisation potential. A valley crossed by the existing drilled lines, where
limonite material had been eroded away, will be redrilled to test the hypothesis
that in these areas the rock underlying the surface ash may be nickel-bearing
saprolitic rock rather than bedrock.

A small purpose-built diamond drill was due for delivery in late 2007, but due
to the destruction of transportation infrastructure by Typhoon Guba, delivery
has been delayed. Following a management visit to Mambare in early 2008 to
assess the bottlenecks and the impact of the typhoon, negotiations have begun to
bring in an experienced drill crew from another country in the region with
additional rigs for a 3,000m plus drill contract to outline a JORC resource,
with a possible extension to a larger programme.

When the diamond drill equipment is delivered for the auger, which is expected
shortly, the auger will be mobilised to extend the 2007 programme along
east-west lines parallel and to the north of the area covered in 2007. When the
small purpose built diamond rig is delivered, or the drill contractor arrives on
site, drilling will initially be carried out along the lines drilled last year.

Across to the south of the Aruma River, the wacker drill will be mobilised to
test a geologically similar extension of the plateau that may contain further
mineralisation.

Lines have been cleared and surveyed for the delayed ground penetrating radar
programme, which is also expected to start imminently.

Negotiations are in train for leasing a 20 hectare administration site in Kokoda
from the Government, and a suitable handling area at Oro port has also been
identified and offered.

Impact of the typhoon

The localised impact of the typhoon in November on the infrastructure between
Mambare, the provincial capital and the port beyond it was serious. A State of
Emergency was declared in Oro Province and remains in force. All bridges were
either washed away, on the larger rivers, or had their embanked approaches
washed away, leaving the central span intact on the smaller rivers. Little was
done before the New Year to restore land transport infrastructure, as the
emphasis was on disaster relief, but at the time of our visit in February 2008,
the Army had restored bridges or the loggers had created alternative vehicular
crossing points - except in the one case of the Kumusi River, which still
represented an obstacle between the provincial capital of Popondetta and Kokoda.

This speed of recovery from so exceptional an event was encouraging. Beyond the
Kumusi, earth-moving plant owned by Higatori Oil Palms, a subsidiary of Cargill
Inc, has helped clear the roads. Cargill Inc is constructing a new oil palm
factory at the estate next to the Company's licence area at Mambare, in addition
to its existing plant at Popondetta.

Our conclusion from the visit was that, on the assumption that the Kumusi River
crossing is restored soon, no further impact from the typhoon beyond the delays
already encountered is to be expected. Other infrastructure, including cellphone
communication, looks set to improve over the next six months.

Red Rock Resources Plc

The Company maintains its substantial interest in the AIM-quoted Red Rock
Resources Plc ("Red Rock"). On 28 January 2008 Red Rock carried out a placement
of 18,000,000 new shares at 2p per share, and given the low issue price the
company, rather than be further diluted, elected to subscribe for 4,000,000 of
these shares. Consequently the Company now holds 107,250,000 Red Rock shares,
representing 39.1% of Red Rock's issued share capital.

Other

A 'Memorandum of Investment and Co-operation' with an Asia-based investment
group was announced in November 2007 which could lead to a substantial
investment in the Company and the Mambare project.

The agreement was subject to contract and receipt of regulatory approvals. The
Company envisaged that these would be completed relatively quickly, but the
typhoon, delays to work on site in Papua New Guinea, and the need to assess
local infrastructure and the feasibility of travel by road within the province
before arranging any site visit mean that this timetable has been extended.
Meanwhile, expressions of interest in co-operation or investment have been
received from several other parties.

The Company announced in November an investment in 9,375,000 new shares in
AIM-quoted Alba Mineral Resources Plc ("Alba"), amounting to 10.65% of Alba's
issued share capital. Following further investment, the Company now holds
11,434,047 Alba shares - 13% of Alba's issued share capital, and 1,750,000 Alba
warrants. As previously noted, at the original issue price to us Alba was valued
at only £1m. Alba's holdings include important sulphide nickel licences in
Scotland and Sweden, zinc licenses in Ireland, gold licenses, and a 50%
shareholding in Mauritania Ventures Ltd. Alba has made progress on many matters
since our investment, and we see a number of benefits flowing from this
co-operation, besides the benefit of seeing a company in which we are a
substantial shareholder making a strong recovery in its business and beginning
to unlock the value of its assets. The price of Alba has held up in what have
been difficult markets for small exploration companies.

Future prospects

We expect commodity demand growth from developing economies, notably China and
India, to continue. Despite the draining of liquidity from the market as a
result of the banking crisis that has been developing since mid-2007, we expect
conditions in metal markets to remain stable. This reduction in market
liquidity, combined with a downturn in the nickel price, caused our share price
to suffer in the latter part of 2007.

We have undiminished confidence in the merit and potential of our main assets,
and the exploration we have planned for the remaining part of the year, with the
management and reporting structures being put in place to control it, are
focussed on bringing into public view that unrecognised value.

International financial reporting standards

With effect from 1 July 2007, the Company made the transition to preparing
financial statements in accordance with the International Financial Reporting
Standards ("IFRS") as adopted by the Eurpean Union. Accordingly, these interim
statements reflect the assumptions made by the Board about the standards and
interpretations expected to be effective, and the policies expected to be
adopted, when the Company issues its first complete set of IFRS financial
statements for the Group for the year ending 30 June 2008.

The unaudited results of our activites during the period ended 31 December 2007
show a loss before taxation of £414,720 (2006 as adjusted, a loss of £292,895).

Andrew Bell
Chairman
31 March 2008

Income statement

Group Group Group
6 months to 6 months to Year to
31 December 31 December 30 June
2007 2006 2007
Unaudited Unaudited Unaudited
£ £ £
Income

Management services 19,323 - 27,229

Gross profit 19,323 - 27,229

Exploration expenses (162,311) (204,582) (276,278)
Administrative expenses (177,709) (179,857) (465,000)
Currency gain/(loss) 4,573 21 701

Operating loss (316,124) (384,418) (713,348)

Share of operating loss in associates (111,855) (1,174) (5,050)
(Loss)/profit on sale of trading asset investments - 1,046 1,046
(Deficit)/surplus on revaluation of trade investments (24,157) 23,363 1,604
Interest receivable 9,322 583 2,034
Interest payable (148) (300) (3,787)

Loss on ordinary activities before taxation (442,962) (360,900) (717,501)

Deferred taxation provision 481 (7,009) (481)

Loss after taxation (442,481) (367,909) (717,982)

Minority interests 27,761 75,014 92,502

Retained loss attributable to Shareholders (414,720) (292,895) (625,480)

Loss per share - see note 3
Basic (0.23) pence (0.22) pence (0.44) pence
Share options were not dilutive during the
period

There are no recognised gains or losses in either period other than the loss for
the period.

Balance sheet
Group Group Group
31 December 31 December 30 June
2007 2006 2007
Unaudited Unaudited Unaudited
£ £ £

Assets

Non-current assets
Tangible assets 15,487 19,361 15,958
Investments in associates 138,145 6,326 244,950
Goodwill 45,000 45,000 45,000

Total non-current assets 198,632 70,687 305,908

Current assets
Cash and cash equivalents 160,521 64,620 188,771
Trade and other receivables 387,577 185,135 201,480
Trade investments 338,857 228,162 213,014
Exploration properties 543,412 1,639,196 558,400

Total current assets 1,430,367 2,117,113 1,161,665

Total assets 1,628,999 2,187,800 1,467,573

Current liabilities
Trade and other payables 84,262 347,868 36,888

Non-current liabilities
Deferred taxation - 7,009 481

Total liabilities 84,262 354,877 37,369

Net assets 1,544,737 1,832,923 1,430,204

Equity
Called up share capital 186,941 137,048 170,226
Share premium account 2,266,351 1,210,449 1,726,816
Share option reserve 112,992 - 112,992
Other reserves 255,955 650,351 253,260
Retained losses (1,242,111) (564,466) (827,391)

Shareholders' funds 1,580,128 1,433,382 1,435,903

Minority interests (35,391) 399,541 (5,699)

Total equity 1,544,737 1,832,923 1,430,204

Cash flow statement
Group Group Group
6 months to 6 months to Year to
31 December 31 December 30 June
2007 2006 2007
Unaudited Unaudited Unaudited
£ £ £
Cash flows from operating activities
Operating loss (316,124) (384,418) (713,348)
(Increase) in debtors (186,097) (79,713) (96,058)
Increase/(decrease) in creditors 47,375 51,344 (37,803)
Impairment of exploration properties 20,752 38,654 190,814
Depreciation of fixed assets 4,008 - 7,130
Sale of trade investments - 30,557 30,557
Purchase of trade investments (150,000) (205,770) (189,332)
Exploration property costs (19,331) (62,819) (62,819)
Share based payments - - 112,992
Currency adjustments 11,280 2,760 6,075
Corporation tax paid - - (6,029)

Cash (outflow) generated from operations (588,137) (609,405) (757,821)

Cash outflows from investing activities
Interest received 9,322 583 2,034
Interest paid (148) (300) (3,787)
Purchase of fixed assets (3,537) (19,362) (23,089)

Net cash flows used in investing activities 5,637 (19,079) (24,842)

Acquisitions and disposals
Purchase of subsidiary (2,000) - -
Cash disposed of on deconsolidation of subsidiary - - (46,214)

Net cash (outflow)/inflow from acquisitions and (2,000) - (46,214)
disposals

Cash inflows from financing activities
Proceeds from issue of shares 585,000 137,653 714,697
Transaction costs of issue of shares (28,750) - (27,500)
Subsidiary company share issue for cash - 100,375 100,375
Subsidiary company short term loans - 225,000 -

Net cash flows from financing activities 556,250 463,028 787,572

Net increase/(decrease) in cash and cash equivalents (28,250) (165,456) (41,305)

Cash and cash equivalents at the beginning of period 188,771 230,076 230,076

Cash and cash equivalents at end of period 160,521 64,620 188,771

Consolidated Statement of changes in equity

For the 6 months ended 31 December 2007

Share Share Share option Consolidation Retained Total
capital premium reserve reserve earnings equity
£ £ £ £ £ £

At 1 July 2006 129,897 1,079,947 - 550,156 (203,711) 1,556,289

Loss for the period - - - - (292,895) (292,895)
Issue of shares 7,151 130,502 - - - 137,653
Share issue expenses - - - - - -
Deconsolidation - - - 100,195 (67,860) 32,335

At 31 December 2006 137,048 1,210,449 - 650,351 (564,466) 1,433,382

At 1 July 2006 129,897 1,079,947 - 550,156 (203,711) 1,556,289

Loss for the period - - - - (625,480) (625,480)
Issue of shares 40,329 674,369 - - - 714,698
Share issue expenses - (27,500) - - - (27,500)
Share based payments - - 112,992 - - 112,992
Deconsolidation - - - (296,896) 1,800 (295,096)

At 30 June 2007 170,226 1,726,816 112,992 253,260 (827,391) 1,435,903

Loss for the period - - - - (414,720) (414,720)
Issue of shares 16,715 568,285 - - - 585,000
Share issue expenses - (28,750) - - - (28,750)

Consolidation - - - 2,694 - 2,694

At 31 December 2007 186,941 2,266,351 112,992 255,954 (1,242,111) 1,580,127

Half-yearly report notes

1. Company and Group

As at 31 December 2007, the Company had no operating subsidiaries and therefore
has not prepared Group financial statements. As at 31 December 2006 and 30 June
2007, the Company had an operating subsidiary which became dormant shortly
before its sale on 6 August 2007.

The Company will report again for the year ending 30 June 2008.

2. Accounting policies

Accounting policies adopted under IFRS

These interim financial statements have been prepared in accordance with
International Financial Reporting Standards as adopted by the European Union ("
IFRS").

The basis of preparation and accounting policies used in preparing the interim
statements for the six months ended 31 December 2007 are set out below. The
basis of preparation describes how IFRS has been applied under IFRS 1, the
assumptions made by the Company about the Standards and interpretations expected
to be effective and the policies expected to be adopted when the Company issues
its first complete set of IFRS financial statements for the year ending 30 June
2008.

Statement of compliance

This consolidated financial information of Regency Mines plc is prepared in
accordance with IFRS as adopted by the European Union with the exception of IAS
34 "Interim Financial Reporting".

Basis of preparation

The consolidated financial information has been prepared in accordance with
accounting policies which will be adopted in presenting the full year annual
report and accounts. The full year annual report and accounts will be prepared
for the first time in accordance with International Financial Reporting
Standards (IFRS) as adopted by the European Union.

The group has therefore applied IFRS for the six month period ended 31 December
2007, with comparative figures for the six month period ended 31 December 2006
also prepared under IFRS as adopted by the European Union.

In preparing this consolidated financial information, the Group has elected to
take advantage of provisions within IFRS 1 "First-time adoption of International
Financial Reporting Standards" ("IFRS 1"), which offer certain exemptions from
applying IFRS to the opening IFRS balance sheet prepared at 1 June 2006. In
particular:

• IFRS 3, "Business Combinations", has not been applied retrospectively to
business combinations that occurred prior to 1 June 2006. The carrying
amount of goodwill in the opening IFRS balance sheet at 1 June 2006 is
therefore its carrying amount at that date under UK GAAP;
• IFRS 2, "Share-based payment", has not been applied to equity instruments
that were granted after on 4 November 2004 and on 20 January 2006 all of
which vested prior to 1 July 2006.

The interim financial information is unaudited and does not constitute statutory
financial statements within the meaning of section 240 of the Companies Act
1985.

The Group's statutory consolidated financial statements for the year ended 30
June 2007 were presented under UK GAAP, and have been delivered to the Registrar
of Companies. The report of the auditors on those financial statements was
unqualified and did not contain a statement under section 237 (2) or (3) of the
Companies Act 1985. Comparative figures for the year ended 30 June 2007
presented here are abridged and non-statutory, have been adjusted to reflect the
transition to IFRS and are unaudited.

The consolidated financial statements have been prepared on a historical cost
basis, except for derivative financial instruments, available for sale
investments and intangible assets acquired in a business combination, which have
been measured at fair value. The consolidated financial statements are presented
in sterling ("GBP") and a;; values are rounded to the nearest pound except where
stated.

Significant accounting policies

The accounting policies adopted in the preparation of the interim financial
statements will be consistent with those that will be followed in the
preparation of the Company's annual financial statements for the year ending 30
June 2008.

3. Loss per share
6 months to 6 months to Year to
31 December 31 December 30 June
2007 2006 2007
Unaudited Unaudited Unaudited
£ £ £

These have been calculated on a loss of: (414,720) (292,895) (625,480)

The weighted average number of shares used was: 180,309,451 135,959,680 143,680,386
Share options were not dilutive during the period.

Basic loss per share: (0.23) pence (0.22) pence (0.44) pence

4. Transition to IFRS

The financial information for the six months ended 31 December 2006 and the
opening balance sheet at 1 July 2006 have been prepared in accordance with
International Financial Reporting Standards (IFRS) for the first time.

The Company's transition date to IFRS is 1 July 2006. The rules for first-time
adoption of IFRS are set out in IAS 1 'First time adoption of international
reporting standards'. In preparing the IFRS financial information, these
transition rules have been applied to the amounts reported previously under
generally accepted accounting principles in the United Kingdom ('UK GAAP').
IFRS generally requires full retrospecti9ve application of the Standards and
Interpretations in force at the first reporting date. However, IFRS 1 allows
certain exemptions in the application of particular Standards to prior periods
in order to assist companies with the transition process.

• Changes in presentation of financial information:

o IAS1: The form and presentation of the UK GAAP statements has been changed
to be compliant with IAS 1.

o IAS 7: Cash flows under IFRS are presented within the Cash Flow Statement
under three main headings: cash flows from operating activities, from investing
activities and from financing activities. This has resulted in some
presentational changes compared to UK GAAP. There is no change to the net
movement of cash and cash equivalents.

• Changes in accounting policies:

o IAS 12: Under UK GAAP, deferred tax was recognised on the basis of timing
differences, subject to certain exemptions. Under IAS 12, deferred tax is
recognised on the basis of taxable temporary differences, subject to certain
exceptions. Temporary differences include all timing differences and many
permanent differences. This change has had no effect on any of the figures
reported.

o Under IAS 39, the trade investments which are deemed to be held for short
term gain are taken to the profit and loss account at fair value as opposed to
being held at historical cost under UK GAAP.

o Under IAS 39, the trade investments which are not held for short term gain
and are categorised as 'available-for-sale' financial assets are restated at
fair value on the balance sheet date as opposed to being held at historical cost
under UK GAAP. The gain or loss on revaluing the asset is held under a
'financial asset revaluation reserve' in Capital and Reserves. The changes
arising are included in the restatements for IFRS.

o Company has chosen to adopt IFRS 3. Accordingly, business combinations
from the date of transition will be accounted for under IFRS 3 using the
purchase method.

• Reconciliations of UK GAAP to IFRS:

o For the period ended 31 December 2006 and year ended 30 June 2007 there are
differences between the income statement and balance sheet amounts reported
under UK GAAP and IFRS as noted on the following pages. In addition, there are
differences under UK GAAP and IFRS for the opening balance sheet at 1 July 2006
on transition.

o There is no monetary impact on the cash flow statement for these periods.

5. Market value of investments

As at 31 December 2007, the market values of publicly quoted investments were as
follows:

• Associate company investments: £2,839,375 (book value £242,500)

• Trade investments: £288,414 (book value £288,414).

6.

7. Restatement of reported figures

Consolidated financial information as at 1 July 2006

As originally Restate per Restate for IFRS
reported note 7 IFRS
under UK GAAP
£ £ £ £
Balance sheet
Non-current assets
Intangible assets 1,657,142 (1,657,142) - -
Goodwill 45,000 - - 45,000

Total non-current assets 1,702,142 (1,657,142) - 45,000

Current assets
Cash and cash equivalents 230,076 - - 230,076
Trade and other receivables 105,422 - - 105,422
Trade investments 48,540 - - 48,540
Exploration properties - 1,657,142 - 1,657,142

Total current assets 384,038 1,657,142 - 2,041,180

Total assets 2,086,180 - - 2,086,180

Current liabilities
Trade and other payables 80,941 - - 80,941

Total liabilities 80,941 - - 80,941

2,005,239 - - 2,005,239
Net assets

Capital and reserves
Share capital 129,897 - - 129,897
Share premium account 1,079,947 - - 1,079,947
Retained losses (203,711) - - (203,711)
Other reserves 550,156 - - 550,156

Shareholders' funds 1,556,289 - - 1,556,289

Minority interests 448,950 - - 448,950

Total equity 2,005,239 - - 2,005,239

Restatement of reported figures, continued

Consolidated financial information for the half-year ended 31 December 2006

As originally Restate per Restate for IFRS
reported note 7 IFRS
under UK GAAP
£ £ £ £
Balance sheet
Non-current assets
Tangible assets 19,361 - - 19,361
Intangible assets 1,690,100 (1,690,100) - -
Investments in associates - - 6,326 6,326
Goodwill 45,000 - - 45,000

Total non-current assets 1,754,461 (1,690,100) 6,326 70,687

Current assets
Cash and cash equivalents 64,620 - - 64,620
Trade and other receivables 185,135 - - 185,135
Trade investments 269,799 (65,000) 23,363 228,162
Exploration properties - 1,690,100 (50,904) 1,639,196

Total current assets 519,554 1,625,100 (27,541) 2,117,113

Total assets 2,274,015 (65,000) (21,125) 2,187,800

Current liabilities
Trade and other payables 347,868 - - 347,868

Non-current assets
Deferred taxation 7,009 7,009

Total liabilities 347,868 - 7,009 354,877

Net assets 1,926,147 (65,000) (28,224) 1,832,923

Capital and reserves
Share capital 137,048 - - 137,048
Share premium account 1,210,449 - - 1,210,449
Other reserves 758,755 (65,000) (43,404) (650,251)
Retained losses (591,687) - 27,221 (564,466)

Shareholders' funds 1,514,565 (65,000) (16,183) 1,433,382

Minority interests 411,582 - (12,041) 399,541

Total equity 1,926,147 (65,000) (28,224) 1,832,923

Restatement of reported figures, continued

Consolidated financial information for the half-year ended 31 December 2006,
continued

As originally Restate for IFRS
reported under IFRS
UK GAAP
£ £ £
Income statement
Turnover 30,557 (30,557) -
Direct costs (29,511) 29,511 -

Gross profit 1,046 (1,046) -

Exploration expenses (204,582) - (204,582)
Administrative expenses (179,857) - (179,857)
Currency gain 21 - 21

Operating loss (383,372) (1,046) (384,418)

Share of operating loss in associate - (1,174) (1,174)
Profit on sale of trade investment - 1,046 1,046
Surplus on revaluation of financial assets - 23,363 23,363
Interest receivable 583 - 583
Interest payable (300) - (300)

Loss on ordinary activities for the period (383,089) 22,189 (360,900)

Deferred taxation provision - (7,009) (7,009)

Loss on ordinary activities after taxation (383,089) 15,180 (367,909)

Minority interests 79,958 (4,944) 75,014

Retained loss attributable to Shareholders (303,131) 10,236 (292,895)

Restatement of reported figures, continued

Consolidated financial information for the year ended 30 June 2007

As originally Restate for IFRS
reported under IFRS
UK GAAP
£ £ £
Balance sheet
Non-current assets
Tangible assets 15,958 - 15,958
Investments in associates - 244,950 244,950
Goodwill 45,000 - 45,000

Total non-current assets 60,958 244,950 305,908

Current assets
Cash and cash equivalents 188,771 - 188,771
Trade and other receivables 191,421 10,559 201,480
Trading asset investments 420,753 (207,739) 213,014
Exploration properties 631,443 (73,043) 558,400

Total current assets 1,432,388 (279,223) 1,161,665

Total assets 1,493.346 (25,973) 1,467,573

Current liabilities
Trade and other payables 61,198 (24,310) 36,888
Deferred taxation - 481 481

Total liabilities 61,198 (23,829) 37,369

Net assets 1,432,148 (1,944) !,430,204

Capital and reserves
Share capital 170,226 - 170,226
Share premium account 1,726,816 - 1,726,816
Share option reserve 112,992 - 112,992
Other reserves 247,330 5,930 253,260
Retained losses (851,676) 24,285 (827,391)

Shareholders' funds 1,405,688 30,215 1,435,903

Minority interests 26,460 (32,159) (5,699)

Total equity 1,432,148 (1,944) 1,430,204

Restatement of reported figures, continued
Consolidated financial information for the year ended 30 June 2007

As originally Restate for IFRS
reported under IFRS
UK GAAP
£ £ £
Income statement
Turnover 57,786 (27,229) -
Cost of sales (29,511) 29,511 -

Gross profit 28,275 (1,046) 27,229

Exploration expenses (289,384) 13,106 (276,278)
Administrative expenses (451,864) (13,136) (465,000)
Currency loss (204) 905 701

Operating loss (713,177) (171) (713,348)

Share of operating loss in associate (27,335) 22,285 5,050
Profit on sale of trade investment - 1,046 1,046
Surplus on revaluation of financial assets - 1,604 1,604
Interest receivable 2,034 - 2,034
Interest payable (3,787) - (3,787)

Loss on ordinary activities for the period (742,265) 24,764 (717,501)

Deferred taxation provision - (481) (481)

Loss on ordinary activities after taxation (742,265) 24,283 (717,982)

Minority interests 94,301 (1,799) 92,502

Retained loss attributable to Shareholders (647,964) 22,484 (625,480)

8. Restatement of reported figures - notes:

During 2007, exploration properties previously reported as intangible fixed
assets, were reclassified and reported as current assets. This correction has
now been applied as at 30 June 2006 and 31 December 2006.

Copies of this half-yearly report are available free of charge by application in
writing to the Company Secretary at the Company's business office, 115
Eastbourne Mews, Paddington, London W2 6LQ, or by email to
admin@regency-mines.com.

End

Enquiries:

Andrew Bell 07766 474849 Red Rock Resources plc Chairman

John Simpson 020 7512 0191 Blomfield Corporate Finance Ltd Nominated Adviser

Ron Marshman / John Greenhalgh 020 7628 5518 City of London PR Limited Public Relations

Updates on the Company's activities are regularly posted on the Company's
website, www.regency-mines.com

This information is provided by RNS
The company news service from the London Stock Exchange
END

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