Company Information for GCM Resources Plc

AIM-GCM

www.gcmplc.com

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AIM; GCM

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Company Statement

GCM Resources plc is a London-based resource development company with a wholly owned subsidiary operating in Bangladesh and investments in South Africa. The company's shares are quoted on the Alternative Investment Market (AIM). (Ticker code: GCM)

The Company (GCM) under its former name, Asia Energy plc, was incorporated in England and Wales as a public limited company on 26 September 2003. Asia Energy PLC was admitted to the Alternative Investment Market (AIM) of the London Stock Exchange on 19 April 2004. Through seed capital raising and the subsequent placement of shares, some £14 million was raised.

In November 2005, following submission to the Government of Bangladesh of the Phulbari Coal Project’s Feasibility Study and Scheme of Development, the Company placed an additional 6,740,000 shares and raised a further US$ 52 million.

GCM Resources plc actively reviews investment opportunities in order to broaden its global investment portfolio.

Current Operations

GCM Resources plc is engaged in developing a world class coal mine and power plant project in Bangladesh through its subsidiaries. The mine life is expected to be more than 30 years, with production of 15 million tonnes at full capacity of mostly export quality metallurgical and thermal coal. The Project will add to Bangladesh’s energy security by reliably delivering coal to the domestic market. The company has the potential to install up to 1000 MW of coal fired power generating capacity at the mine site.

In December 2006, the Company invested in GVM Metals Limited, whose primary focus is to bring various South African coal properties to production. This investment provides GCM Resources plc with a meaningful stake in the South African coal sector and the opportunity to assist development of a number of underground and open-cut coal mines.

GCM Resources plc also made a strategic investment in the Bangladesh telecommunications market. It has identified Peoples Telecom and Information Services Ltd (PeoplesTel) as an exciting investment opportunity which also brings significant benefits to the development of the Phulbari Coal Project by ensuring that modern and extensive telecommunication networks and infrastructure are in place across all areas (mine site, transport corridor, port operations etc.) of the Project.

Bangladesh
Asia Energy Corporation Pty Ltd
Asia Energy Corporation Pty Ltd, a wholly owned subsidiary of GCM Resources plc, has a contract with the Government of Bangladesh ‘for exploration and mining of coal in Northern Bangladesh’.

In accordance with this Contract, the Company has completed a Feasibility Study for commercial development of the Phulbari Coal Project. The Scheme of Development was submitted to the Government of Bangladesh in November 2005 and is awaiting approval. The Company has also provided a proposal to the Government for the development of up to 1000 MW of coal-fired power generating capacity at the mine mouth.

Bangladesh Telecommunications Ltd
Bangladesh Telecommunications Ltd subscribed for 26.5% of the equity in Peoples Telecom and Information Services Ltd (”PeoplesTel”). The US$5 million investment was approved by the Bangladesh Board of Investment (“BOI”) in February 2007.

PeoplesTel is an exciting investment opportunity which also brings significant benefits to the development of the Phulbari Coal Project (“the Project”) by ensuring that modern and extensive telecommunication networks and infrastructure are in place across all areas (mine site, transport corridor, port operations etc.) of the Project.

PeoplesTel has a licence to operate fixed, wireless local loop along with voice data, image and all forms of telecommunication services in Bangladesh. PeoplesTel has been in operation since 1989 as rural operator and converted to a national operator since 2005. PeoplesTel has a huge network covering Bangladesh and employs over 280 people. PeoplesTel has over 6000 KM of Microwave links covering all the major cities of Bangladesh. At the time of the MOU, PeoplesTel has already installed four gateway switches, 120 local switches, 3 BSC, 34 BTS with the latest CDMA 2001X 450 MHZ dual carrier state of the art wireless local loop services.

PeoplesTel is currently undertaking a rapid expansion plan. Their expansion plan for the next 5 years is to provide world class voice and data services across Bangladesh, targeting 1 million new subscribers and focusing on the developing rural regions.

PeoplesTel is strategically positioned to secure a license for Dhaka City (expected to be issued in 2007). It owns the largest range of wireless spectrum of any operator in Bangladesh, including the valuable 3G compliant 450MHz spectrum, and has recently secured a VoIP License.

PeoplesTel, having recently completed a 17km fibre optic ring around Dhaka City, has full interconnect agreements in place with the major cellular operators and fixed line operators, including the government owned BTTB. These companies collectively access approximately 15 million subscribers. PeoplesTel has leased an additional 208km fibre optic backbone to connect to the densely populated (approximately 7 million people), and high GDP generating, region of Chittagong.

South African Coal Ltd
South Africa Coal Ltd, a wholly owned subsidiary of GCM Resources plc, holds an interest of 17,200,000 shares, 18.38% of the issued share capital of Coal of Africa Limited (CoAL) formerly GVM Metals Ltd), a South African mineral processing and coal mining company. Following the initial subscription in December 2006, the Board of CoAL invited Steve Bywater to become Non-Executive Deputy Chairman and Graham Taggart to be a Non-Executive Director.

The investment provides GCM Resources plc with a meaningful stake in the South African coal sector and the opportunity to assist in the development of an underground coal mine (Holfontein project) and two open-cut coal mines (Limpopo and Baobab projects) in South Africa.

The Holfontein project is located in the Witbank coal fields and the Baobab and Limpopo projects are located in the Limpopo province. Based on previous work undertaken by Utah Mining, Kumba, and others, the total coal resources controlled by GVM are considered to approach 2 billion tonnes.

CoAL Limited listed on the Australian Stock Exchange in April 1980 (as GVM Metals Ltd) and was primarily focused on minerals exploration in Western Australia and Indonesia. Through a series of strategic investments, the company moved its focus to a metals processing and coal processing company predominantly targeting South Africa. The company successfully listed on Aim in 2005 (AIM: CZA) and also on the Johannesburg Stock Exchange in November 2006.

Aura Alliance
Strategic Alliance for Exploration for Uranium in Africa
In April 2007 GCM Resources plc announced it had signed a legally binding Heads of Agreement to form an alliance with Aura Energy Ltd (ASX: AEE) to identify and acquire uranium projects in Africa. The alliance brings together the exploration skills of Aura and the project development and mining experience of GCM Resources plc.

Aura is a uranium exploration company based in Perth, Western Australia which was listed on the Australian Stock Exchange in May 2006. Aura has a portfolio of exploration titles which are being actively explored for calcrete and sandstone-hosted uranium deposits. Aura’s Managing Director, Dr Bob Beeson leads a team which has broad experience in uranium and base metal exploration in both Australia and overseas - including Africa and the Middle East.

The alliance will be managed and exploration conducted by Aura, and funds will be provided jointly by Aura and GCM Resources plc in cash and in kind. The initial term of the alliance is for two years. GCM Resources plc’s obligation is to provide funding of £165,000 for the first two years’ activities of the alliance. Aura will identify and present project opportunities to the alliance.

Following presentation of projects by the alliance, GCM Resources plc will have the right to decide whether it wishes to progress to the exploration stage to be structured as a GCM Resources plc – Aura joint venture, initially sole funded by GCM Resources plc. GCM Resources plc’s participation interest in each joint venture will be 70% or 90% depending upon Aura’s funding contribution.

GCM to invest in China Coal & Energy Corporation
In May 2007, GCM Resources plc announced it had agreed in principle to invest US$5 million in cash for a 5% equity interest in China Coal & Energy Corporation (“CCEC”), an unquoted BVI company operating in Beijing established for the purpose of acquiring coking and thermal coal projects in China. The investment is subject to a successful due diligence currently being undertaken.

CCEC has entered into several conditional Heads of Agreements pursuant to which it may, subject to funding, acquire or joint venture various thermal coal projects primarily in Shanxi and Inner Mongolia, ranging from operating integrated coal mining and coke processing facilities to coal development projects with resources of several billion tonnes each.

GCM Resources plc will evaluate a number of these projects with a view to entering into joint ventures on a case-by-case basis. With the exception of the integrated coal mining and coke processing facilities, the remaining coal properties are at pre-feasibility and exploration stage but appear to be substantial coal resources which could be suited to large scale mining.

As these projects will require significant technical assistance, GCM Resources plc agreed to provide management services to CCEC directly and will be guiding its technical management and development. Mr Steve Bywater, GCM Resources plc’s Chief Executive, will join the Board of CCEC.

Legally binding documentation in relation to this arrangement is expected to be signed in the coming weeks and on signatures a further announcement will be made.

Geographical Spread

North west Bangladesh showing Phulbari

Board of Directors and Key Management

Board of Directors
Gerard Holden	Non-Executive Chairman
Steve Bywater	Chief Executive
Gary Lye	Chief Operating Officer
Bill McIntosh	Executive Director - Technical
Graham Taggart	Finance Director and Joint Company Secretary
David Lenigas	Non-Executive Director

Senior Management
Lisa Mitchell	Chief Financial Officer and Joint Company Secretary
Mushfiqur Rahman	General Manager Corporate & Legal
M. Anwarul Islam	General Manager Environment and Community
Chris Schrape	Marketing Advisor
Ahsan Habib	Field Operations Manager
Julia Lewis	Sustainable Development Manager

Company Address

2nd Floor
Foxglove House
London, United Kingdom W1J 9EF


Telephone:	+ 44 (0)20 7290 1630
Facsimile:	+ 44 (0)20 7290 1631
Website:	http://www.gcmplc.com

Annual General Meeting

January

Year End

30 June

Nominated Brokers

JP Morgan Cazenove Limited

Nominated Advisors