Half-yearly Report

For Immediate Release

28 August 2008

BISICHI MINING PLC

Half Year Results to 30 June 2008

OPEN CAST MINING DRIVES PRODUCTION SURGE AT BLACK WATTLE

2008 2007

Profit before interest, taxation and £1,628,000 £2,092,000
depreciation

Profit before taxation £803,000 £1,510,000

Diluted earnings per share 5.39 p 10.25 p

* Opencast mining commences at Black Wattle Colliery

* Excellent prices achieved for international steam coal and metallurgical
coal products

* Second half starts with major uplift in profitability

* Full and final settlement of all claims with former BEE Partner in respect
of Black Wattle and Pegasus

Commenting on the results, Michael Heller, Chairman of Bisichi Mining said:

‘The commencement of commercial opencast operations at Black Wattle will have a
significant impact on the mine’s performance, as evidenced by the results for
July when more profit was made in the month than in the entire first six months
of the year. This, combined with the very high prices being achieved for our
products, gives me very considerable confidence for the future.’

END

For further information, please call:

Andrew Heller/Robert Corry/Tom Kearney, Bisichi Mining PLC 020 7415 5030

Christopher Joll, MJ2 Ltd 07721 330730

John Harrison/ James Black, Numis Securities 020 7260 1000

Half year review

I am pleased to report that in the six months ended 30 June 2008, Bisichi
Mining made a profit of£1,628,000 (2007: £2,092,000) on ordinary activities
before interest, taxation, depreciation and amortisation. The 22% decrease in
profit compared to the same period in 2007 reflects lower production in the
first 3 months of 2008 due to localised flooding and scheduled maintenance on
the Voest Alpine Continuous Miner.

The first six months of 2008 has been a `story of two halves’. During the first
three months production was inhibited by unusually high levels of rainfall,
which caused localised flooding in the underground workings, and by the
scheduled maintenance of the Voest Alpine Continuous Miner. Fortunately, Black
Wattle’s operations were only marginally affected by the widely reported power
cuts which took place in January and these did not affect the monthly
production, exports or sales.

During the second three months, our management at the mine dealt successfully
with the underground flooding and the Continuous Miner went back into full
operation. As a result, the mine is now at full production and the second half
of the year, with the open cast coming into operation in June, should be
substantially more profitable than the first half. In fact, I am pleased to be
able to report to shareholders that Black Wattle made more profit in the month
of July than in the entire first six months of the year.

The commencement of commercial opencast operations at Black Wattle will have a
significant impact on the mine’s performance because it will lower the average
cost of production, increase average washing plant yields and will allow Black
Wattle to mine its reserves more flexibly. In addition, the area being mined
contains high yielding export quality thermal coal that will be mined over a 24
month period. A secondary adit was created to link the open cast mining with
the existing underground conveyor belt network. This has eliminated the need to
transport the coal from our opencast site by road and thus further reduced our
production costs. It also gives us the added benefits of reduced dust, noise,
and other forms of environmental pollution. Once this open cast block has been
mined out we will move on to other opencast blocks. We envisage Black Wattle
maintaining an opencast section for the remainder of its life.

The two remaining underground sections – both the traditional drill-and-blast
and the mechanised section where our Continuous Miner is operating – are
producing well and, combined with the opencast, we anticipate producing 130,000
metric tonnes per month on a consistent basis. We are investigating the
possibility of expanding our washing plant capacity to accommodate increased
production from the various sections.

During the period, the market for domestic and internationally-traded coal has
been very strong, with prices reaching their highest levels in recent history.
In April, we announced a 46 percent increase in the price for our domestic
thermal coal and a 42 percent increase in the price for our metallurgical
product. We are pleased to report that in July, we negotiated a further 68
percent increase in the price for our metallurgical coal. The price for export
coal is also very high and we are taking advantage of the buoyancy in the
market by locking in prices when it suits us to do so. The sale of our discard
product to the local power industry continues to add a substantial amount of
nil cost revenue whilst simultaneously reducing our overall rehabilitation
liability

In April, we announced the full and final settlement of all disputes with
Bisichi’s former Black Economic Empowerment (BEE) partner. We are in the
process of selecting a new BEE partner for Black Wattle and hope to make an
announcement in the near future. Regarding the Pegasus reserve, there is
currently nothing further to report to shareholders, except to state that the
settlement of the dispute with Endulwini Resources (pty) Ltd, which had 51% of
the equity in the contract, has cleared a major impediment to the successful
conclusion of this transaction with the vendors.

In order to bolster the management of our operations in South Africa and to
take advantage of sharp increase in the availability of mineral rights, we have
promoted Robert Grobler to Mining Director of Bisichi Mining plc and appointed
Luis Pinel to replace him as General Manager at Black Wattle.

Despite the downturn in UK property prices, our UK property portfolio, which is
managed by London & Associated Properties PLC, is virtually fully let and there
has been no reduction in the income we receive from rentals.

During the second half of the year management will continue to focus on
increasing the levels of profitability at our operations at Black Wattle whilst
at the same time continuing to identify opportunities for expansion in South
Africa. With commercial production of our opencast operations now under way and
coal prices at such high levels, I look to the future with confidence.

Michael Heller Andrew Heller

Chairman Managing Director

27 August 2008

Bisichi Mining PLC

Consolidated income statement

for the six months ended 30 June 2008

6 months 6 months Year ended
ended 30 ended 30 31
June June December

2008 2007 2007

Notes £000 £000 £000

Group revenue 1 9,076 5,009 16,693

Operating costs (8,097) (3,506) (14,710)

Operating profit before 1 979 1,503 1,983
adjustments

Decrease in value of investment properties – – (2,588)

(Loss)/gains on held for trading (108) 36 31
investments

Exceptional items – – 383

Share of profit in joint ventures (25) (6) (204)

Operating profit 1 846 1,533 (395)

Interest receivable 170 169 394

Interest payable (213) (192) (458)

Profit before taxation 803 1,510 (459)

Income tax expense 2 (204) (394) 551

Profit for the period 599 1,116 92

Attributable to:

Equity shareholders 599 1,116 92

Minority interest – – –

Profit for the year 599 1,116 92

Earnings per share – basic 3 5.73 p 10.68 p 0.88 p

Earnings per share – diluted 3 5.39 p 10.25 p 0.85 p

Bisichi Mining PLC

Consolidated Balance Sheet

as at 30 June 2008

30 June 30 June 31
December

2008 2007 2007

Restated

Assets £000 £000 £000

Non-current-assets

Value of investment properties 14,838 17,278 14,725
attributable to the group

Fair value of head leases 267 153 267

Property 15,105 17,431 14,992

Reserves, plant and equipment 5,720 5,185 5,859

Investments in joint ventures 3,214 2,786 2,520

Other investments 392 302 471

Total non-current assets 24,431 25,704 23,842

Current assets

Inventories 31 78 126

Trade and other receivables 2,992 2,832 2,130

Corporation Tax Recoverable 189 51 174

Held for trading investments 685 736 770

Interest derivative – 39 16

Cash and cash equivalents 2,263 3,804 3,199

Total current assets 6,160 7,540 6,415

Total assets 30,591 33,244 30,257

Liabilities

Current liabilities

Borrowings (3,414) (3,333) (2,402)

Trade and other payables (4,305) (5,605) (5,606)

Current tax liabilities (81) (256) (454)

Total current liabilities (7,800) (9,194) (8,462)

Non-current liabilities

Borrowings (3,980) (3,480) (3,139)

Finance lease liabilities (267) (153) (267)

Deferred tax liabilities (2,991) (4,074) (3,030)

Total non-current liabilities (7,238) (7,707) (6,436)

Total liabilities (15,038) (16,901) (14,898)

Net assets 15,553 16,343 15,359

Equity

Share capital 1,045 1,045 1,045

Translation reserve (1,785) (1,340) (1,276)

Other reserves 544 189 426

Retained earnings 15,763 16,449 15,164

Total equity attributable to equity shareholders 15,567 16,343 15,359

Minority interest (14) – –

Total equity 15,553 16,343 15,359

Bisichi Mining PLC

Consolidated Cash Flow Statement

for the six months ended 30 June 2008

30 June 30 June 31
December

2008 2007 2007

£000 £000 £000

Cash flows from operating activities

Operating profit 846 1,533 (395)

Depreciation 782 559 1,196

Unrealised gain on investments held for 108 (36) (31)
trading

Unrealised gain on investment properties – – 2,588

Share of profit from joint ventures 25 (6) 204

Share based payment expense 118 – 237

Decrease (increase) in net current assets 154 (960) (649)

Net interest paid (43) (23) (64)

Income tax paid (773) (6) (43)

Cash flow from operating activities 1,217 1,061 3,043

Cash flows from investing activities (1,874) (540) (1,695)

Cash flows from financing activities (813) (594) (1,088)

Net (decrease) increase in cash and cash (1,470) (73) 260
equivalents

Cash and cash equivalents at 1 January 1,244 978 978

Exchange adjustment (39) – 6

Cash and cash equivalents at end of period (265) 905 1,244

Cash and cash equivalents

For the purposes of the cash flow statement, cash and cash equivalents comprise
the following balance sheet amounts:

Cash and cash equivalents 2,263 3,804 3,199

Bank overdraft (2,528) (2,899) (1,955)

Cash and cash equivalents at end of period (265) 905 1,244

Bisichi Mining PLC

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY

for the six months ended 30 June 2008

Share Translation Other Retained Minority Total

capital reserve reserves earnings Total interest Equity

£’000 £’000 £’000 £’000 £’000 £’000 £’000

Balance as at 1 January 1,045 (1,237) 189 15,333 15,330 – 15,330
2007

Movement on fair value – – – (14) (14) – (14)
of derivatives

Other income statement – – – 1,130 1,130 – 1,130
movements

Profit for the period – – – 1,116 1,116 – 1,116

Exchange adjustments – (103) – – (103) – (103)

Total recognised income – (103) – 1,116 1,013 – 1,013
and expense for the year

Balance at 30 June 2007 1,045 (1,340) 189 16,449 16,343 – 16,343

Balance as at 1 January 1,045 (1,237) 189 15,333 15,330 – 15,330
2007

Revaluation of – – – (2,588) (2,588) – (2,588)
investment properties

Movement on fair value – – – 16 16 – 16
of derivatives

Other income statement – – – 2,664 2,664 – 2,664
movements

Profit for the year – – – 92 92 – 92

Exchange adjustments – (39) – – (39) – (39)

Total recognised income – (39) – 92 53 – 53
and expense for the year

Dividend – – – (261) (261) – (261)

Equity share options – – 237 – 237 – 237

Balance at 31 December 1,045 (1,276) 426 15,164 15,359 – 15,359
2007

Movement on fair value – – – (16) (16) – (16)
of derivatives

Other income statement – – – 615 615 – 615
movements

Profit for the year – – – 599 599 – 599

Exchange adjustments – (509) – – (509) – (509)

Total recognised income – (509) – 599 90 – 90
and expense for the year

Equity share options – – 118 – 118 – 118

Purchase of additional – – – – – (14) (14)
shares in subsidiary

Balance at 30 June 2008 1,045 (1,785) 544 15,763 15,567 (14) 15,553

ACCOUNTING POLICIES AND NOTES TO THE ACCOUNTS:

The results for the six months ended 30 June 2008 have been prepared in
accordance with International

Financial Reporting Standards (IFRS). The principal accounting policies applied
are the same as those set out in the Financial Statements for the year ended
31 December 2007.

1. Segmental analysis

30 June 30 June 31
December

2008 2007 2007

Restated

Revenue

Mining 8,539 4,479 15,594

Property 514 505 1,019

Other 23 25 80

9,076 5,009 16,693

Segment result

Mining 888 1,215 1,702

Property 97 268 269

Other (6) 20 12

979 1,503 1,983

Operating profit

Mining 875 1,215 1,600

Property 97 268 (2,038)

Other (126) 50 43

846 1,533 (395)

2. Taxation

30 June 30 June 31 December

2008 2007 2007

Restated

Based on the results for the year:

Corporation tax at 28% (2007: 30%) 103 437 326

Prior year adjustment – UK – – 4

103 437 330

Deferred taxation 101 (43) (881)

204 394 (551)

The prior year restatement of the balance sheet for the six months ending 30th
June 2007 is a result of an increased deferred tax charge in the 2006 financial
year, which relates to the recognition of the liability on the difference
between the book value of the plant and equipment and the written down tax
value on which capital allowances have been claimed.

As a result of the profitability of the mine the directors have determined that
the previous basis of calculation was not appropriate and required correction.
This full provision will equalise the tax charge in future years.

3. Earnings per share

Both the basic and diluted earnings per share calculations are based on a
profit of £599,000 (2007: £1,116,000). The basic earnings per share has been
calculated on 10,451,506 (2007: 10,451,506) ordinary shares being in issue
during the year. The diluted earnings per share has been calculated on the
number of shares in issue of 10,451,506 (2007: 10,451,506) plus the dilutive
potential ordinary shares arising from share options of 660,798 (2007: 432,175)
totaling 11,112,304 (2007: 10,883,681).

4. Properties

Properties are included at valuation as at 31 December 2007 plus additions in
the period ended 30 June 2008.

5. Legal dispute

In April the company announced the settlement of all disputes with its former
Black Economic Empowerment partner in South Africa.

6. Financial information

The above financial information does not constitute statutory accounts within
the meaning of section 240 of the Companies Act 1985. Statutory accounts for
the year ended 31 December 2007 which were prepared under International
Financial Reporting Standards, have been delivered to the Registrars of
Companies; the report of the auditors on those accounts was unqualified and did
not contain a statement under section 498(2) and (3) of the Companies Act 2006.

As required by the Disclosure and Transparency Rules of the UK’s Financial
Services Authority, the interim financial statements have been prepared in
accordance with the International Financial Reporting Standards (IFRS) and in
accordance with both IAS 34 ‘Interim Financial Reporting’ as adopted by the EU
and the disclosure requirements of the Listing Rules. The same accounting
policies are used for the six months ended 30 June 2008 as were used for the
year ended 31 December 2007.

The interim results have not been audited or subject to review by the company’s
auditors.

7. Dividend

The final dividend in respect of 2007, totaling £314,000 was paid on 11 August
2008.

8. Board approval

These interim results were approved by the Board of Bisichi Mining on 27 August
2008.

DIRECTORS RESPONSIBILITY STATEMENT

We confirm to the best of our knowledge

a. the condensed set of financial statements have been prepared in accordance
with IAS 34 Interim Financial Reporting as adopted by the EU;

b. the interim management report includes a fair review of the information
required by:

1. DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of
important events that have occurred during the first six months of the
financial year and their impact on the condensed set of financial
statements; and a description of the principal risks and uncertainties for
the remaining six months of the year; and

2. DTR 4.2.8R of the Disclosure and Transparency Rules, being related party
transactions that have taken place in the first six months of the current
financial year and that have materially affected the financial position or
performance of the entity during the period; and any changes in the related
party transactions described in the last described in the last annual
report that could do so.

Michael Heller Andrew Heller

Chairman Managing Director

27 August 2008

DIRECTORS AND ADVISERS

Directors Michael A Heller MA, FCA (Chairman)

Andrew R Heller MA, ACA (Managing Director)

Robert Grobler (Mining Director

C A Joll MA (Non-executive)

Thomas M Kearney (Commercial

John A Sibbald BL(Non-executive

Secretary Michael C Stevens FCA

Registered office 30-35 Pall Mall

London SW1Y 5LP

Black Wattle Colliery –

Directors Robert Corry (Chairman)

Andrew Heller (Managing Director)

Thomas Kearney

David Nkosi

General mine manager Luis Pinel

Registrars and transfer office Capita Registrars

Northern House

Woodsome Park

Fenay Bridge

Huddersfield HD8 0GA

Telephone 0871 664 0300

(Calls cost 10p per minute + network extras)

or +44 208 639 3399 for overseas callers

Website: www.capitaregistrars.com

E-mail: ssd@capitaregistrars

Company registration number112155 (Incorporated in England and Wales)

Web sitewww.bisichi.co.uk

E-mailAdmin@bisichi.co.uk

END