Strategic Natural Resources PLC (“SNR”) was established on 5 October 2004 as a vehicle to develop, own and manage natural resource extraction enterprises in Southern Africa.

As its first project, SNR acquired control of Elitheni Coal in the Eastern Cape some 200 miles north east of Port Elizabeth. The principal assets of Elitheni are a new order mining right over 92 km2 as well as new order prospecting rights over an additional 1,700 km2 for coal which it holds in the Eastern Cape, South Africa.

History

The first mines near Molteno and Indwe were opened in 1864 and 1877. The annual coal output from these mines reached a peak between 1900 and 1904 when production averaged 176,000 tonnes per annum. With the discovery of large deposits of coal in the former Transvaal and Natal Provinces closer to where major industrial development had commenced, production declined sharply in 1917 and ceased altogether in 1948. However, the Directors believe that, with the development of CFB Combustion Technology as well as local advancements in boiler combustion and increasing electricity prices large scale mining in this area is now economically viable. A coal mine based in the Eastern Cape will fuel the growing demand for heat, power and steam in South Africa.

Elitheni coal and its licences

Elitheni has increased its prospecting rights area in the Eastern Cape province of South Africa by more than 2,000% from the initial Phase 1 and Phase 2 area of 9,283.80ha, granted in 2005, to practically 184,000ha today. The 184,000ha has been demarcated into Phases 1, 2, 3, 4 and 5. The latter having been named Project Indlovu. Full and exclusive new order mining rights have been obtained on Phase 1&2 (92 km2 area) and full and exclusive new order prospecting rights exist on the remaining Phases 3, 4 and 5 areas. New order prospecting rights give the holder the exclusive right to apply for and obtain mining rights over the area held.

The Company was admitted to AIM on 7th August 2007 on the basis of a resource under Elitheni’s control of approximately 15 million tonnes of coal in the Phase 1 and Phase 2 areas. Golder Associates, SNR's competent person has, in a recent updated competent persons report (the "Updated CPR"), confirmed an increase in Elitheni's resources from 97.2 million tonnes to 150.3 million tonnes, comprising, 45.6 million tonnes measured resource, 45.5 million tonnes indicated resource and 59.2 million tonnes inferred resource. The additional drilling undertaken in relation to the Updated CPR spans an area of circa 3,000 ha. The area drilled to date represents less than 3% of the total area available for drilling. Roughly 179,000 ha of Elitheni's total rights area remains available for further assessment by Golder Associates.

Having all rights in hand to commence production, the Company has commenced 2010 with plans to fast track mine development and market penetration with first supplies to local industrial clients commencing in the first quarter 2010.

Richard Henry Ringrose Latham, Chairman

Richard Latham was appointed Chairman of Northern Petroleum Plc in 1999 and his career has been closely tied to the energy industry. He holds a MBA degree from Cranfield University and has spent most of his working life in the City - initially as an investment manager and for 27 years with companies in the upstream oil and gas industry. He was formerly deputy chairman of Aberdeen Petroleum Plc, chairman and managing director of Claremount Oil and Gas Limited and a non-executive director of Atlantis Resources Limited, a company listed on the London and Toronto stock exchanges.

As Chairman, Richard will Chair the Board of Directors and ensure that they provide proper direction and leadership. He will ensure compliance with the rules of the AIM Market of the London Stock Exchange. He will also Chair the remuneration committee.

David John Nel, aged 39, Chief Executive

David Nel has focused his career since the early 1990's, on opportunities within the natural resources industry in South Africa. After obtaining a Masters degree in Commerce from the University of Johannesburg, David spent several years in a senior management position with global business consulting firm Accenture, advising some of the world's largest mining houses. Through this, David gained experience in the conceptualisation, development, implementation and management of various large scale consulting solutions for mining companies such as Xstrata, De Beers and Goldfields. In addition, David has spent over seven years as the General Manager of Coalnet in South Africa, a resources development company which led to the establishment of Elitheni Coal, SNR's primary asset today.

David is wholly committed to Elitheni and to SNR. As Chief Executive Officer of SNR, David will be responsible for the mobilization and implementation of all SNR projects. David has also been the commercial director and COO of Elitheni Coal since 2006 and is well acquainted with all operational aspects of SNR’s projects. As CEO, David will be responsible for steering the new direction of SNR as well as implementation of all strategy both investment and operational for the company.

Jeremy Peter Metcalfe, Communications Director

Jeremy Metcalfe has a track record as a financier, marketer and promoter. He has hands on experience of the extractive minerals market having managed public companies including the chairmanship of Minmet plc, Connary Minerals plc, Crediton Minerals plc and Tiger Resource Finance plc which were engaged in the exploration and production of gold, base metals and diamonds in Brazil, Portugal, Peru, Dominican Republic, Honduras and the UK. He has arranged the funding, purchase and sale of a number of gold related projects in Europe and West Africa including the early funding of Golden Prospect plc (since renamed Ambrian Capital plc) and of Tiger Resource Finance plc, a successful mining finance house. He has a wide experience of running a number of businesses, latterly in the public sector commencing in 1994.

Barry William Nel, Commercial Director

Barry Nel is the founder of Elitheni and is involved in the South African coal and energy supply sector. He was a founder of Trans Tugela Coal (Pty) Ltd in 1976 which was South Africa’s first independent coal mining operation. The business grew to three medium sized collieries and captured 35 per cent. of the Natal industrial coal market. He formed Coalnet in 1990 to focus on joint ventures with coal users such as the successful joint venture between Coalnet and Vakbel of Turkey, which involved exporting 2.5Mt of South African coal to Turkey.

Since 1999, Barry has committed himself and all his resources to the full time task of establishing Elitheni. As well as being an Executive Director of SNR Barry is Chairman of Elitheni Coal Pty Ltd. His main responsibility will be to ensure the smooth running of the Elitheni coal exploration and the eventual mining of the coal once the extraction licence has been granted. He will also work closely with the CEO to define and develop other coal and energy related projects in South Africa and southern Africa.

Edward Cox Finance Director and Company Secretary 

Edward has extensive experience with SME’s and early stage companies and has held a number of senior roles, including as Chief Executive and Finance Director in a range of quoted and unquoted companies. He qualified as a Chartered Accountant with Thomson McClintock (London) and obtained his MBA from Manchester Business School in 2001. He has particular expertise in southern Africa having grown up in South Africa and Zimbabwe from where he returned in 2001 after spending four years in the horticulture services business. He has considerable experience in international trade having been finance director for a leading London commodity broker which trading extensively in West Africa amongst other locations.

Bertus Steenkamp - Technical Director 

He started his Working Career as an Anglo Coal Student in 1986 to 1990 when he completed his Higher National Diploma in Coal Mining. He later joined Rand Mines in 1991 as Planning Engineer where he occupied various positions in the Technical, Opencast Mining and Underground Sections of the Mine.

His first appointment as Mine Overseer in 1992, after obtaining his Mine Manager’s Certificate at age 25, was followed by his appointment as Production Manager at Delmas Colliery in 1995. During the course of his stay at this mine, he later had the responsibility for Total Management of the Underground Mine (3 shafts). He joined Grinaker-LTA during 2000 and up to 2003 he occupied various senior positions within the Contract Mining – Coal Division at Grinaker-LTA Mining Contracting before being appointed as Director-Coal Operations on the Main Board of Grinaker-LTA Mining Contracting during 2003. He occupied this position, being responsible for marketing, contract negotiations, contract management, tendering, strategic planning etc, up to March 2008 when he resigned to build his own dream – Belton Mining.

The Company, 2 years later, has developed into a diverse Mining Company (Level 6 - BEE) with its Mining Services Section focussing on Contract Mining and Engineering Capital Projects and Refurbishments, while a subsidiary company, Ducanet, focuses on Procurement Services. Furthermore, the company also acquired various levels of ownership in vast range of Prospecting and Mining Rights including Coal, Diamonds, Gold, Manganese, Platinum and other minerals. A Mauritian based Consulting Company (Belmin Consulting Limited) was also established to service International clients with Technical and Consulting Services.

Robert Myles Randal MacDonnell M.S.I, (Randal), Non-Executive Independent Director

Randal MacDonnell was a Partner of Laurie Milbank & Co Stockbrokers, stockbroker partnership for 16 years until it was taken over by Chase Manhattan Bank (subsequently JPMorgan Chase & Co.) in 1985. He was head of the institutional equity department raising money for underwritings, placings and rights issues, as well as conducting normal stock exchange business. In 1986 he was appointed a Director of Chase Manhattan Securities Limited where he remained for four years. He subsequently became a director of Credit Lyonnais Securities Limited and in 1994 was appointed a Director of Kleinwort Benson Securities Limited primarily dealing with small companies. Prior to becoming a member of the London Stock Exchange in 1965 he was commissioned in the 9th/12th Royal Lancers. He is currently a non-executive director of PipeHawk plc.

He is the senior independent Non-Executive Director; principally his role is to ensure that all shareholders are treated fairly and honestly by the Board.

Phumelele Stone Sizani

Mr Sizani has committed most of his life to fighting apartheid in South Africa and was imprisoned on Robben Island with Nelson Mandela, for 5 years. He completed his schooling in prison and subsequently obtained a Master of Arts degree from the University of East Anglia in the UK. From the 1980s Mr Sizani was politically active through various organisations, including the Port Elizabeth Youth Congress, the African Food and Canning Workers Union and the Eastern Cape, United Democratic Front.

Since the end of the apartheid he has been an active member of the ANC. He was Chairman of the Eastern Cape Branch from 2006 to 2009. He is currently Member of Parliament in the National Assembly. Mr Sizani has a number of business interests, including Rapitrade 644 (Pty) Ltd, SNR’s Black Economic Empowerment partner.

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Total AIM Securities in issue

The total number of AIM securities in issue  109,103,333

Percentage of shares not in public hands

The percentage of SNR PLC shares not in public hands is 52.06%.

Identity and percentage of significant shareholders

The Tudor BVI Global Portfolio L.P - LBPB Nominees Ltd has voting rights over 2,083,333 ordinary shares and an economic interest in 6,800,000 ordinary shares

Director's Shareholdings (not in public hands)

(1) 2,500,000 of these shares are held by a company,  Cayzer Continuation PCC Limited  - Cell 3512 for the benefit of R H R Latham and some are held in a nominee account with Redmayne Nominees Limited.

(2) Holding includes 89,235 shares  owned by R M R  MacDonnell's wife, Mrs E MacDonnell.

(3) Holding includes 15,600  shares  owned by J P Metcalfe’s wife, Mrs C Metcalfe and some shares are held in a nominee account.

4) B W Nel and D J Nel are trustees of the Southern Cape Corridor Trust (“the Trust”). B W Nel is not a beneficiary of the Trust, although his children including D J Nel,  are beneficiaries. The trust owns 78.5% and D J Nel owns 20% of the shares in Southern Cape Corridor Power (Pty) Ltd which in turn owns 14,100,000 shares in the Company.

Number of securities held in treasury

There are no securities held in treasury.

There are no restrictions on the transfer of securities.

This page was last updated on 22nd August 2011

Updated from Strategic Natural resources website 24.10.11