PRESS RELEASE: Rambler Metals and Mining PLC: -7-

21st Jun 2010 14:30

Acquisition of evaluation and exploration assets (715,808) (256,801) (1,484,372) (2,506,281) Acquisition of property, plant and equipment (268,517) (36,238) (295,472) (430,777) Prepayment for acquisition of property, plant and equipment - - (1,974,846) - -------- -------- --------- --------- Net cash from investing activities (982,055) (290,459) (3,749,976) (2,892,205) -------- -------- --------- --------- Cash flows from financing activities Proceeds from the issue of share capital 2,752,000 - 8,252,000 - Payment of share issue expenses (159,297) - (531,035) - Proceeds from issue of share options 2,370 1,304 4,170 2,936 Loan receipt 3,337,338 - 3,337,338 - Capital element of finance lease payments (57,712) (2,227) (102,534) (60,575) -------- -------- --------- --------- Net cash from financing activities 5,874,699 (923) 10,959,939 (57,639) -------- -------- --------- --------- Net increase/(decrease) in cash and cash equivalents 4,672,002 (402,496) 6,430,725 (3,681,114) Cash and cash equivalents at beginning of period 2,945,316 2,300,699 1,168,727 5,107,509 Effect of exchange rate fluctuations on cash held 175,332 (76,556) 193,198 395,252 -------- -------- --------- --------- Cash and cash equivalents at end of period 7,792,650 1,821,647 7,792,650 1,821,647 -------- -------- --------- --------- -------- -------- --------- --------- The accompanying notes are an integral part of these consolidated financial statements. RAMBLER METALS AND MINING PLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. NATURE OF OPERATIONS AND GOING CONCERN The principal activity of Rambler Metals and Mining plc (the "parent company") and its subsidiaries (the "Group" or "Rambler") is carrying out development and exploration on the Ming Mine copper and gold property in Baie Verte, Newfoundland, Canada. The accounting policies and methods of computation used in the preparation of the unaudited consolidated financial information are the same as those described in the Company's audited consolidated financial statements and notes thereto for the year ended 31 July 2009 and are consistent with the principles of International Financial Reporting Standards ("IFRS") and its interpretations adopted by the International Accounting Standards Board ("IASB"), as adopted by the European Union and with IFRSs and their interpretations adopted by the International Accounting Standards Board (IASB). In the opinion of management, the accompanying interim financial information includes all adjustments considered necessary for fair and consistent presentation of financial statements. These interim consolidated financial statements should be read in conjunction with the Group's audited financial statements and notes for the year ended 31 July 2009. This interim consolidated financial information has been prepared on the basis of a going concern, which contemplates the realisation of assets and settlement of liabilities in the normal course of business as they fall due. The Group's ability to continue as a going concern, and the recoverability of its mineral properties, is dependent on the copper price, its ability to fund its development and exploration programs, and to manage and generate positive cash flows from operations in the future. These financial statements do not reflect the adjustments to carrying values of assets and liabilities and the reported expenses and balance sheet classifications that would be necessary should the going concern assumption be inappropriate, and these adjustments could be material. The Group raises finance for its exploration and development activities in discrete tranches. Following the successful completion of the Sandstorm Resources Ltd. financing of US$20 million during the quarter the Directors and management are concentrating on achieving the payment milestones in the financing agreement which will enable the draw down of the remaining US$ 15 million balance and are currently evaluating a number of debt financing proposals to meet anticipated working capital requirements in the late pre-production/early production stages. The Directors are confident the Company has sufficient funds to maintain ongoing operations for the forthcoming 12 months and therefore have concluded that the Group is a going concern. The financial information for the twelve months ended 31 July 2009 has been derived from the Group's audited financial statements for the period as filed with the Registrar of Companies. It does not constitute the financial statements for that period. The auditors' report on the statutory financial statements for the year ended 31 July 2009 was unqualified and did not contain any statement under Section 498(2) or (3) of the Companies Act 2006. An emphasis of matter paragraph was included in the audit report regarding the availability of project finance and going concern. 2. PROPERTY, PLANT AND EQUIPMENT Assets under Land and Plant and construct- Other Buildings Equipment ion Assets Total GBP GBP GBP GBP GBP Cost Balance at 1 August 2008 474,535 2,768,527 - 238,489 3,481,551 Additions 28,913 212,444 8,400 174,707 424,464 Disposals - - - (77,479) (77,479) Effect of movements in foreign exchange 66,326 386,609 - 38,137 491,072 -------- --------- --------- --------- --------- Balance at 31 July 2009 569,774 3,367,580 8,400 373,854 4,319,608 -------- --------- --------- --------- --------- Balance at 1 August 2009 569,774 3,367,580 8,400 373,854 4,319,608 Additions 42,864 7,146 313,389 13,946 377,345 Effect of movements in foreign exchange 102,042 557,284 22,980 62,322 744,628 -------- --------- --------- --------- --------- Balance at 30 April 2010 714,680 3,932,010 344,769 450,122 5,441,581 -------- --------- --------- --------- --------- Depreciation Balance at 1 August 2008 125,853 668,906 - 65,425 860,184 Depreciation charge for period 141,000 823,023 - 83,348 1,047,371 On disposals - - - (26,448) (26,448) Effect of movements in foreign exchange 26,408 145,300 - 12,287 183,995 -------- --------- --------- --------- --------- Balance at 31 July 2009 293,261 1,637,229 - 134,612 2,065,102 -------- --------- --------- --------- --------- Balance at 1 August 2009 293,261 1,637,229 - 134,612 2,065,102 Depreciation charge for period 119,722 670,997 - 86,194 876,913 Effect of movements in foreign exchange 58,374 326,111 - 28,837 413,322 -------- --------- --------- --------- --------- Balance at 30 April 2010 471,357 2,634,337 - 249,643 3,355,337 -------- --------- --------- --------- --------- Carrying amounts At 1 August 2008 348,682 2,099,621 - 173,064 2,621,367 -------- --------- --------- --------- --------- -------- --------- --------- --------- --------- At 31 July 2009 276,513 1,730,351 8,400 239,242 2,254,506 -------- --------- --------- --------- --------- -------- --------- --------- --------- --------- At 30 April 2010 243,323 1,297,673 344,769 200,479 2,086,244 -------- --------- --------- --------- --------- -------- --------- --------- --------- --------- (MORE TO FOLLOW) Dow Jones Newswires June 21, 2010 09:30 ET (13:30 GMT)