Glencar Mining PLC 28 September 2005 GLENCAR MINING PLC ("Glencar" or "the Company") Interim Results for the six months ended 30 June 2005 Dear Shareholder, I am pleased to be able to report good progress on our exploration programmes in Mali and Ghana, and in particular, the signing of a non-binding letter of offer from Gold Fields Limited ("Gold Fields") relating to some of our exploration licences at Sankarani in Mali. On 23 September, we also gained admission to the AIM market of the London Stock Exchange. MALI The Sankarani project, in southern Mali, comprises four exploration concessions, covering a total area of some 1,000 square kilometres in the prospective Birimian system geological environment. Following completion of a regolith study of the entire project area last year, further geochemical sampling, trenching, geophysical interpretation and a structural/geological mapping programme were carried out. Three of the initial targets defined by these programmes have been brought to drill ready status and a drill rig is now being sought to commence the drill programme in mid November. Further targets will be explored in detail in 2006. The area is highly prospective but only very limited advanced exploration had been carried out by the previous licencees. Following the signing by Glencar on 31st August of a non binding letter of offer from Gold Fields, Gold Fields is in the process of completing due diligence for an agreement which will lead to it having the right to acquire up to a 65% interest in three of the four Sankarani licences, through exploration expenditures of up to US$12 million, US$4 million of which must be spent before December 2008. Assuming satisfactory completion of due diligence and the satisfaction of the other conditions precedent, a joint venture agreement will be drawn up which will relate to the Bokoro, Sanioumale and Farasaba licences, while Glencar will retain its existing interest in the Komana licence, where drilling is scheduled to commence in November. Glencar will have management of the exploration programme, at least until completion of US$2.5 million of exploration expenditures. Upon conclusion of a definitive joint venture agreement, we confidently expect an aggressive and exciting exploration programme over the next twelve months or so, and, assuming positive results during that programme, we are also confident that we will have one of the strongest possible partners for the ongoing development of any gold deposits which might be found through such exploration programmes. Gold Fields is the world's fourth largest gold producer, with annual attributable production of more than 4.3 million ounces of gold and attributable mineral reserves of 81.5 million ounces. The company employs 48,000 people, including contractors, across its operations. We are delighted that Gold Fields has selected the Sankarani project as their first project in Mali, a country ranking fourth in Africa in terms of annual gold production, and one which is as yet, relatively underexplored. The execution of this agreement with Gold Fields would represent a major step forward for Glencar. GHANA We have recently completed a helicopter-borne aeromagnetic survey over our Asheba Project in Ghana. The results of this survey have highlighted a number of targets where structural conditions suggest the potential for extensions to the mineralisation already established at Atinasi North. Field work is currently underway over several of the targets proximal to the Atinasi North Prospect and it is planned that a drilling programme to include the testing of some of these targets will be commenced in late October. The picture presented by the aeromagnetic results reflects the complex structural setting of the Atinasi area where there is clear potential for the discovery of a gold deposit, especially in the context of the attractive intersections already drilled there and given the very significant amount of gold seen in the area, in surface and underground artisanal workings and old colonial underground mines. Other targets generated by the aeromagnetic survey will be systematically explored over the coming months. UGANDA In recent months, our focus in Uganda has turned to the exploration licence held by Glencar in the Tira area. The operator of the Tira Mine, which is adjacent to our EL 4705, has recently succeeded in significant expansions to the operation there, in particular the opening of an open pit to extract near surface gold reserves. Glencar has carried out geophysical surveys over the area and plans to follow up the results of that survey with some further sampling work which will be followed by drilling if warranted by the results of that programme. Work on the nearby Buinja licence has not yet led to the delineation of drillable targets and no further work is planned there in the short term. AIM ADMISSION Shares in Glencar were admitted to trading on the AIM market of the London Stock Exchange on 23 September. The AIM market has in recent years become the foremost market for financing the global exploration activities of the junior to mid size exploration company. There is a strong, London based, institutional interest in the sector which is reflected in Glencar's share register which shows that UK based institutions hold almost 35% of the issued share capital of the Company. The AIM quotation will facilitate the dissemination of information and results to that London forum and will improve the marketability of, and liquidity in the Company's shares. FINANCIAL The Company's unaudited profit and loss account appended below, for the six months ended 30 June 2005 shows a loss of US$ 339,198. The Balance Sheet and Cashflow Statement appended below show figures for the six months ended 30 June 2005 but do not show comparable figures for the previous period. It is not possible to reconstruct the comparable figures for the Balance Sheet and Cashflow Statement with the required degree of accuracy. The comparable figures were not prepared at the time as they were not required under the ESM rules. We do undertake, however, to publish such comparable information for all periods henceforth in accordance with Rule 18 of the AIM Rules and Rule 18 of the IEX Rules. In July 2005, we completed a private placing of shares which raised a total of US$1.5 million before costs, through the issue of 33,295,500 new shares at Stg2.5 pence per share. The Company has sufficient cash resources to complete planned drilling programmes at Sankarani in Mali and Asheba in Ghana. Should the Gold Fields negotiations be completed in accordance with the letter of offer referred to above, there will be significant escalation in the scope and pace of the exploration work programme, commensurate with the enlarged budget to be allocated to the project under the terms of the joint venture. OUTLOOK The gold price is currently close to an 18 year high and there are no signs that it will decline significantly in the short to medium term. Glencar has some very exciting gold exploration acreage at Sankarani in Mali and also at Asheba in Ghana. The proposed joint venture with Gold Fields on some of the licences in the Sankarani project will involve significant expenditures on exploration within a relatively tight timeframe. We have great confidence in our joint ability, assuming completion of the agreement with Gold Fields, to fully determine the potential of this exciting area. Hugh McCullough Chief Executive For Further Information: Glencar Mining plc Hugh McCullough Tel: +353 1 661 9974 e-mail: info@glencarmining.ie Heneghan PR Rachel Watchorn Tel: +353 1 6607395 e-mail: rachel@hpr.ie GLENCAR MINING PLC CONSOLIDATED PROFIT AND LOSS ACCOUNT (UNAUDITED) FOR THE PERIOD ENDED 30 JUNE 2005 Unaudited Unaudited 6 months 6 months ended ended 30-Jun-05 30-Jun-04 US$ US$ ADMINISTRATIVE EXPENSES (347,253) (330,279) BANK INTEREST RECEIVABLE 16,055 17,740 INTEREST PAYABLE AND SIMILAR CHARGES (8,000) - LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION (339,198) (312,539) TAXATION - - LOSS ON ORDINARY ACTIVITIES AFTER TAXATION (339,198) (312,539) MINORITY INTEREST - - LOSS FOR THE FINANCIAL PERIOD (339,198) (312,539) LOSS PER SHARE (CENTS) (0.20) (0.18) DILUTED LOSS PER SHARE (CENTS) (0.19) (0.17) CONSOLIDATED BALANCE SHEET (UNAUDITED) AS AT 30 JUNE 2005 US$ FIXED ASSETS Intangible assets 2,783,639 Tangible assets 34,421 Financial assets 2,818,060 CURRENT ASSETS Debtors 12,553 Cash at bank 435,841 448,394 CREDITORS (Amounts falling due within one year) (311,881) NET CURRENT ASSETS 136,513 TOTAL ASSETS LESS CURRENT LIABILITIES 2,954,573 CREDITORS (Amounts falling due after more than one year) (436,156) TOTAL NET ASSETS 2,518,417 CAPITAL AND RESERVES Called up share capital 6,167,555 Capital conversion reserve fund 82,092 Share premium account 36,136,693 Profit and loss account (deficit) (39,755,013) TOTAL CAPITAL EMPLOYED 2,631,327 MINORITY INTEREST IN SUBSIDIARY UNDERTAKING (112,910) 2,518,417 GROUP CASH FLOW FOR THE PERIOD ENDED 30 JUNE 2005 US$ NET CASH OUTFLOW FROM OPERATING ACTIVITIES (387,228) RETURNS ON INVESTMENTS AND SERVICING OF FINANCE 16,055 CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT (194,731) TAXATION PAID - FINANCING - EXTERNAL - DECREASE IN CASH IN PERIOD (565,904) RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT DECREASE IN CASH IN PERIOD (565,904) NET FUNDS AT BEGINNING OF PERIOD 1,001,745 NET FUNDS AT END OF PERIOD 435,841 These results will be posted on the company's website. Copies of this interim report will be available from the Company's registered office at 71 Lower Baggot Street, Dublin 2. This information is provided by RNS The company news service from the London Stock Exchange