Rose Petroleum plc

Trading Update & Board Change


Trading Update & Board Change

VANE announces the following update on its activities:


The income that VANE has received from its gold and silver operations at its joint venture in Mexico in the first quarter of 2013 is expected to be approximately 20% lower than previously expected and lower than the previous quarter due to a combination of declining commodity prices, temporarily lower grades of gold and silver being mined (which have improved since the period end) and the appreciation in the exchange rate of the Mexican Peso against the U.S. dollar. An announcement regarding production in Quarter 4 2012 was made in February 2013.

The Company is taking all necessary steps to reduce its total costs to match its expected future income.

The Quarter 1 financial results for the Mexican operations are expected to be announced in mid-May.


As previously announced, the Directors have decided that the Company's U.S. porphyry copper exploration programme is best advanced by seeking to attract external third parties to help finance the proposed programme. This process is underway and discussions continue, but are not expected to conclude in the short term and further information will be announced as it becomes available.

In addition, the Company is now investigating its options with regards to a potential sale of its uranium assets and expects to be able to announce positive developments soon. Any sale would be structured as an asset sale, leaving any favourable outcome from the related legal action solely for the benefit of the Company and its shareholders.


As previous announced, VANE has filed a lawsuit, as principal, in the U.S. Court of Federal Claims seeking redress on financial losses as a result of the withdrawal of the lands where VANE held its mining claims on which it had invested substantially. In documents submitted to the Court, VANE represented that it invested US$8.5M in its uranium program and that the U.S. Bureau of Land Management acknowledged that the withdrawal deprived VANE of at least one mine, with a net value of approximately $80M. The DOI has filed a Motion to Dismiss and VANE is still awaiting the outcome of this action.


The Company announces that David Newton is to leave the Company to pursue new opportunities. David will remain with the Company until 31 July 2013. The Company would like to thank David for his contribution and wish him well for the future.


The Company's annual results for the year ended 31 December 2012 are expected to be announced in June 2013.