Lisungwe now on Ofex

Lisungwe plc - Interim Results


NEWSTRACK ANNOUNCEMENT LISUNGWE PLC 20 DECEMBER 2005

INTERIM REPORT - PERIOD ENDED 30 SEPTEMBER 2005

CHAIRMAN'S STATEMENT
I am pleased to report that Lisungwe has made significant progress during the
initial period since fundraising was completed in June 2005 when the Company's
Ordinary shares were admitted to trading on Ofex.
* Operations in Malawi recommenced immediately funds were available
* High value NICKEL strike discovered
* Outstanding radiometric anomalies indicating URANIUM
* Application made to add URANIUM to the metals covered by the existing
licences
* GOLD and PLATINUM GROUP METALS exploration continues with a real chance
of success.

EXPLORATION
The highlights are as follows:
* Immediately following the fundraising, operations in Malawi were resumed
with accelerated programmes directed towards the systematic follow-up of
GOLD and PLATINUM GROUP METALS / NICKEL targets within the Group's 5,375
sq kms exploration area.
* GEOLOGICAL DATABASE: A comprehensive database covering the Group's
exploration licence areas has been prepared by a remote sensing
specialist geologist incorporating the majority of available data. This,
together with the use of professional software, is proving to be
particularly valuable in the identification of new targets, preparation
of programmes and interpretation of data.
* NICKEL: Significant NICKEL mineralization has been identified and
further exploration is being undertaken.
o Exploration for PLATINUM GROUP METALS and NICKEL is being carried
out systematically over each of the twelve ultra-mafic intrusions on
the company's exploration ground.
o Following the identification of strongly anomalous values for
PLATINUM, PALLADIUM and NICKEL from shallow augering programmes,
trenching to bedrock has been carried out over two of the
intrusions; similar programmes are to follow. Highly anomalous
NICKEL, supported by both PALLADIUM and PLATINUM, was proved in both
of these areas.
o In particular, at Chimwadzulu Hill, an eight metre wide zone was
discovered in bedrock containing 0.64% NICKEL with values up to
1.18% over 1 metre. If these results are repeated over a sufficient
area, it could lead to a commercially viable deposit. Furthermore,
PLATINUM and PALLADIUM mineralization with intersections of up to 3
metres with 0.4 grams per tonne is associated with the NICKEL.
o Further trenching followed by diamond drilling is planned for early
in 2006 to further evaluate this discovery which could result in an
economic NICKEL deposit.
* URANIUM: A study of the database and of the radiometric data from an
airborne geophysical survey flown under a United Nations contract in 1984
has highlighted some outstanding anomalies both on and adjacent to our
exploration ground. Some of these are expected to reflect bed-rock
URANIUM.
Accordingly, the Group has applied for the addition of URANIUM to the
metals covered by all licences.
* GOLD: Exploration for GOLD is being carried out in parallel with the
PLATINUM GROUP METALS and NICKEL programme.
o The work is focusing on the systematic follow-up of the several well
developed anomalous areas identified by the Geological Survey widely
spaced stream sediment sampling programme carried out in the late
1990s. The programme involves closer spaced sampling with a view to
identifying zones meriting overburden sampling followed by trenching
to bed rock. Results of this sampling are currently awaited.
o Drilling adjacent to the historic Palula mine was carried out during
July this year resulting in the intersection of 1m at 1.16g/t GOLD
from which we expect the controls of mineralization to be better
understood with the hope of leading to commercial concentrations.
O GOLD is known to have been exploited at Palula and at workings
approximately 1.5 km to the south west along strike up until the
1960s, with underground development in the form of shafts and drives
at both locations.
o A recent structural interpretation suggests that the mineralization
may be associated with thrust faulting which can be traced by remote
sensing techniques for at least 12 km to the north east of Palula.
Stuart Brand, the Group's operations director, states:
"We are very encouraged by progress so far, and particularly excited by the
nickel results and the addition of uranium to the list of metals under
exploration."

MARKET REVIEW
Metal markets continue to be strong. The Directors believe that the demand
from China, India and other developing countries, which has underpinned world
prices, is likely to continue for the foreseeable future.

FINANCE
* The Company raised GBP450,290 (GBP374,275 net of expenses) of new
money through a successful offer for subscription during May and June 2005.
* The results for the period 8 February to 30 September 2005 show a loss of
GBP9,000.
* At 30 September 2005 the Group had a cash balance of GBP295,000.
* No dividend has been proposed for the period.

CONCLUSION
Your Board continues to look to the future with optimism; we expect further
progress in the near future and plan to issue news releases whenever possible.
Those Shareholders who have registered their email address on the Company
website will have received progress reports during August and November. I
encourage others to register at www.lisungwe.com to receive future updates.
I wish to record my gratitude to all investors who supported the Offer earlier
this year and to our professional advisers for their support during the
fundraising and admission to Ofex.
John Watkins
Chairman
20 December 2005
.

CONSOLIDATED PROFIT & LOSS ACCOUNT

PERIOD FROM 8 FEBRUARY
TO
30 SEPTEMBER 2005
UNAUDITED
GBP,000

TURNOVER -
Group administrative expenses (14)
----------------------------
LOSS ON ORDINARY ACTIVITIES BEFORE (14)
INTEREST
INTEREST INCOME 5
----------------------------
LOSS ON ORDINARY ACTIVITIES BEFORE (9)
TAXATION
Tax on ordinary activities -
----------------------------
LOSS ON ORDINARY ACTIVITIES AFTER TAXATION (9)
----------------------------
RETAINED LOSS FOR THE PERIOD (9)
----------------------------

BASIC LOSS PER SHARE Note 3 0.008 pence

DILUTED LOSS PER SHARE 0.008 pence
----------------------------

CONSOLIDATED BALANCE SHEET

AT
30 SEPTEMBER 2005
UNAUDITED
GBP,000

FIXED ASSETS
Intangible assets 824
Tangible assets 10
-----------------------
834
-----------------------

CURRENT ASSETS
Debtors 20
Cash at bank and in hand 295
-----------------------
315
CREDITORS
Amounts falling due within one year (5)
-----------------------
NET CURRENT ASSETS 310
-----------------------
TOTAL ASSETS LESS CURRENT LIABILITIES 1,144
-----------------------


CAPITAL AND RESERVES 72
Called up share capital 1,064
Share premium account (9)
Profit and loss account 17
Other reserves
-----------------------
EQUITY SHAREHOLDERS' FUNDS 1,144
-----------------------


CASH FLOW STATEMENT
PERIOD FROM 8 FEBRUARY
TO
30 SEPTEMBER 2005
Notes UNAUDITED
GBP,000

NET CASH OUTFLOW FROM OPERATING ACTIVITIES (29)
RETURNS ON INVESTMENTS AND SERVICING OF
FINANCE 4
Interest received 13
Currency gain

CAPITAL EXPENDITURE
Cash payments to acquire intangible assets (70)
Cash payment to acquire tangible assets (12)

---------
NET CASH OUTFLOW BEFORE FINANCING (94)

FINANCING
Issue of Ordinary share capital for cash 463
Cost of share issue (76)
Cash acquired with subsidiary acquisition, less creditors assumed 2
---------
NET CASH INFLOW FROM FINANCING 389
---------
INCREASE IN CASH DURING THE PERIOD 295
---------

INTERIM REPORT NOTES

1. INTERIM REPORT
The information relates to the period from 8 February 2005, the date on
which Lisungwe plc was incorporated, to 30 September 2005.
The interim report was approved by the Directors on 20 December 2005.
The interim report is unaudited.

2. BASIS OF ACCOUNTING
a. The report has been prepared using accounting policies that the
Group and its subsidiary undertaking have adopted and will be used
for the first accounting period to 31 March 2006. The information
does not constitute statutory accounts within the meaning of section
240 of the Companies Act 1985.
b. These interim financial statements consolidate the financial
statements of the Company and its subsidiary, Lisungwe Mineral
Resources Limited acquired on 2 March 2006.
c. The financial statements are prepared under the historical cost
convention.
d. Intangible fixed assets:
i.Expenditure on the acquisition, exploration, development and
evaluation of interests in licences including related
overheads are capitalised. Such costs are carried forward in
the balance sheet under intangible fixed assets.
ii.The Group adopts an `area of interest' method of accounting
whereby all exploration and development costs relating to an
area of interest are capitalised and carried forward until
abandoned. In the event that an area of interest is
abandoned, or if the Directors consider the expenditure to be
of no value, accumulated exploration costs are written off in
the financial year in which the decision is made.
iii. Recoupment of capitalised exploration and development
costs is dependent upon successful development and commercial
exploitation of each area of interest and are amortised over
the expected commercial life of each area of interest once
production commences.
e. Tangible fixed assets are stated at cost less depreciation.
f. The Company and Group will report again for the full year to 31
March 2005.

3. LOSS PER SHARE
PERIOD
8 FEBRUARY
2005 TO
30
SEPTEMBER
2005
UNAUDITED
GBP,000

These have been calculated on a loss of: (9)
---------------

The weighted average number of shares used was: 116,654,837

The weighted average number of shares and outstanding options 119,205,584
used was:
---------------

Basic loss per share: 0.008 pence

Fully diluted loss per share: 0.008 pence
---------------

4. RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS
PERIOD ENDED
30 SEPTEMBER 2005
UNAUDITED
GBP,000

Losses relating to the period (9)
Currency gains during the 13
period
Proceeds of share issues 1,212
Less share issue expenses (76)
Consolidation reserve 4

----------------------
CLOSING SHAREHOLDERS' FUNDS 1,144
----------------------


Copies of this interim report are available free of charge by application in
writing to the Company Secretary at Nettlestead Place, Nettlestead, Maidstone
ME18 5HA, by email to info@lisungwe.com or from the Company's website at
www.lisungwe.com.

The directors of Lisungwe plc accept responsibility for this announcement.

ENQUIRIES:
Lisungwe plc
John Watkins, Chairman, Tel: 01483 771992
john@lisungwe.com

St Helen's Capital plc
Corporate Adviser
Barry Hocken, Tel: 020 7628 5582