Company Information for Cambrian Mining Plc

AIM-CBM

www.cambrianmining.com

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Company Statement

Cambrian is an AIM listed operating mining company that manages and supports operations in coal and gold/antimony mining. The Cambrian Group has been instrumental in supporting the development of a number of mines and moving them into production. These include: Western’s metallurgical coal mines in British Columbia, Canada; metallurgical and thermal coal mines in West Virginia, USA; Energybuild’s Aberpergwm coal mine in Wales, UK; as well as a gold and antimony mine in Victoria, Australia.

In addition to its mining operations Cambrian has investments in Xtract Energy plc, giving it exposure to energy projects and related technologies; and NEMI, who has an indirect interest in coal development properties in Canada.

A detailed review of the Group’s business during the year and an indication of likely further developments may be found in the following sections of the 2008 Annual Report & Financial Statements: Chairman’s Statement the CEO & Business Review, and the Financial Review.

Cambrian’s vision is to deliver above average shareholder returns by growing as a responsible, operating mining company.

Production forecasts for the year ending 30 June 2009 as follows:

Western Canadian Coal Corp – Revised plans have resulted in the suspension of development work at Willow Creek, reducing operations at Brule and providing notice of possible curtailment of operations at Wolverine in May to contractors and employees.
Wolverine is producing primarily hard-coking coal at a current annual run rate of 1.6 million tonnes with Brule now reduced to an annual run rate of 750,000 tonnes of low-volatile pulverised injection coal (“PCI”) coal. Production levels for the remainder of 2009 will depend on markets.
Atlantic Development & Coal – Forecast total clean coal production for the financial year ending 30 June 2009 is expected to be 1.3 to 1.4 million tons (previously 1.4 to 1.7 million tons). Sales revenues are forecast to average US$86.50 per ton (previously US$90 per ton) with cash costs of around US$70 per ton.
Energybuild Group Plc – Development will continue at the underground mine at Aberpergwm. Projected annual saleable coal production from all operations is estimated at 265,000 tonnes to 30 June 2009 (previously 26,000 tonnes).
AGD Mining Pty Ltd – Scaled down operations with a revised business plan to focus on gold recovery in the short term will reduce forecast annual production this year to 5,000 payable gold ounces and 750 payable antimony tonnes (down from 16,000 payable gold ounces and 2,000 payable antimony tonnes).

Current Operations

Western Canadian Coal Corp
Western’s metallurgical coal production from July to December 2008 totalled 1,207,000 tonnes representing a decrease of 20% over the 2007 comparative period (2007: 1,513,000 tonnes). Coal sales for the same period averaged CAD$312 per tonne showing a 290% increase compared to 2007. Cash costs increased gradually throughout the calendar year as productivity was affected by higher stripping ratios at the Wolverine mining operations.

Western also has a 50% interest in the Belcourt-Saxon Coal Limited Partnership, which recently announced that a technical report compliant with Canadian National Instrument 43-101 on the Belcourt Property had been completed. The highlights of this report include, 86 million tonnes of Proven Reserves of metallurgical coal in two deposits; 167 million tonnes of Measured (including 2 million tonnes thermal) and 4 million tonnes of Indicated Resources among the two deposits; potential production of 4 million tonnes per year of saleable clean coal; and 15 years of production from defined reserves on the property.

Outlook for Western Canadian Coal Corp.
Demand for metallurgical coal in the near term has declined in line with the increased uncertainty in global economic markets. WCCC implemented a cash preservation plan which includes the review of all discretionary expenditures. Deferring capital development projects and rationalising existing operations are included in this plan to contain mining costs. So far, this plan has resulted in the suspension of development work at the Willow Creek mine, reducing production levels at the Brule mine, and providing notice to employees and the mining contractor of the possible curtailment of operations at the Wolverine mine after 18 May 2009. Further changes to planned operating rates will be assessed once future coal prices and sale commitments have been established.

WCCC’s coal production will be highly dependent on customer demand with a current run rate of around 2.4 million tonnes with the capacity to increase production, with minimal capital expenditure, should market conditions improve.

Cambrian holds 72,122,826 shares, 34.4% of the issued share capital and listed convertible debt instruments with a face value of C$29 million in WCCC.

Atlantic Development and Coal
During the first six months of the 2009 financial year, clean coal production in West Virginia increased by 39% to 631,000 tons compared with 455,000 in the corresponding period in 2007. Average sales prices during the half year were US$92 per ton and cash costs US$75 per ton. Overall unit operating costs in the second half of the financial year should benefit from surface mining operations moving into lower effective ratio areas and an expected decrease in consumable costs, fuel and steel in particular.

Safety remains a priority at all the operating units. Atlantic Development & Coal (“ADC”) reported one lost time accident at the Maple Eagle underground mine for the period. The Silo Mains mine, Gauley Eagle and Katie preparation plant (at Maple Coal) all went the entire 2008 calendar year with no lost time accidents. The Katie preparation plant recently received a West Virginia State Guardian Award for its safety achievements.

During the first half of the financial year, some metallurgical coal customers gave notice to suspend and/or cancel some planned calendar year 2009 shipments. Overall, average sales realisation of metallurgical coal is expected to decline in 2009. Contracted thermal coal for calendar year 2009 is expected to remain as planned at a minimum of 70,000 tons per month.

ADC remains focussed on internal cost containment, improving operating efficiencies and positive cash generation, positioning itself to maintain operational flexibility to allow for the anticipated short-term decrease in metallurgical coal demand.

Permitting and mine planning activities are scheduled to continue to position the company for rapid expansion when coal markets return to favourable pricing levels. ADC’s coal production for calendar year 2009 will be highly dependent on customer demand with a base case scenario of 1.2 million tons with the capacity to produce up to 2.0 million tons, with minimal capital expenditure.

Gauley Eagle
Gauley Eagle produced 299,000 short tons of marketable coal during the first six months of the 2009 financial year. Underground mine production accounted for 55% of this total.

The Lower Muddlety area surface mine permit was awarded in December 2008. Mining in this area has commenced with coal production expected in the first quarter of calendar year 2009. Effective mining ratios and overall coal quality is expected to improve significantly, thus improving the cost basis for the operating unit. Surface mining operations at Crooked Run were extended for longer than planned due to a delay in receiving the Lower Muddlety permit, which contributed to the higher than expected surface mine operating unit costs.

The Black Pearl underground mine permitting is now largely complete and is awaiting MSHA (Miner Safety and Health Administration) approval. This mine is a replacement for the Silo Mains mine. The Silo Mains mine reserve base has been expanded which should provide for continuity of underground production at the property. In addition to the Black Pearl underground mine, efforts to achieve mining approval in a small underground reserve block referred to as Clear Fork underground mine have begun.

Maple Coal
Maple Coal, which operates the Eagle No. 1 underground and Sycamore surface mines, produced 332,000 short tons, an increase of 200% on the previous year. Underground mine production accounted for 55% of the total while surface mine production accounted for 45% for the six months. All underground mine production was sold into metallurgical coal markets while all surface mine production was sold into the thermal coal markets.

Ongoing permitting efforts include the achievement of two permits relevant to the long-term mine plan of the Sycamore surface mine. While recent regulatory announcements regarding valley fill may impact the long term efficiency of some surface mining operations, ADC is in a position to continue mining with minimal impact for several years.

Outlook for Atlantic Development & Coal
The prevailing market continues to be challenging. Cambrian has been implementing key initiatives within the West Virginia operations to reflect this new environment. Due to the decline in demand for metallurgical coal and the deteriorating market for thermal coal, Cambrian today announces a revised forecast for its operations in West Virginia. ADC is now expected to produce 1.3-1.4 million tons during the year ending June 2009, with average revenues of £87 per ton and cash costs of $71 per ton.

ADC and its operations became part of the wholly owned Cambrian Group on 1 August 2008.

Other
AGD Mining Pty Ltd
AGD Mining Pty Ltd (“AGD”) made good progress in improving production and operating efficiencies during the half year. Production of concentrate for the half year was 67% higher than the previous year at 1,642 tonnes compared to 984 tonnes. Antimony sales increased by 66% during the first six months of the financial year, while gold sales grew by 30% during the same period.

However, as a result of the sudden contraction in demand for antimony concentrates in China, mining at Costerfield was suspended in November 2008 while the processing plant continued to operate at a reduced capacity to treat stockpiled ore with a focus on gold recovery. Given the decrease in its operations, AGD took necessary steps to reduce costs resulting in a reduction of its workforce and termination of the services of its contract miner. Following these changes, the Costerfield mine is now fully owner operated. Negotiations with our main customer have now been completed and a revised contract has been signed that will allow a gradual ramp up of operations at Costerfield.

At present, operations are focussed on maximising gold recovery and production to allow AGD to benefit from the current strength in the gold price. Antimony metal prices have recovered from their low point of around US$3,800 per tonne to near US$4,400 per tonne but are still well below the US$6,500 received for most of 2008.

Outlook for AGD Mining Pty Ltd
Discussions are now complete regarding volume and pricing with the main customer and revised operating plans have been developed to reflect the newly negotiated off-take arrangements and agreement. The Costerfield mine will remain as owner-operated, but is now expected to produce 5,000 payable gold ounces and 750 payable antimony tonnes during the year to 30 June 2009.

AGD is a wholly owned subsidiary of Cambrian.

Energybuild Group Plc
Energybuild Group Plc has had a successful first half with a 650% increase in revenue as a result of higher production volumes from both the drift mine and opencast activities. It has also reported a gross profit of £1,689,000 (2007: loss £113,000).

Aberpergwm
During this period the underground drift mine at Aberpergwm produced 65,000 tonnes of clean coal, double the amount produced during the year ended 30 June 2008.

The second ventilation circuit in the 18ft seam was successfully completed in December 2008 with the team now working to develop production panels S1, S2 and S3, a task expected to continue over the next 18 months whilst the new drift is being driven from the mine surface. Mine planning estimates suggest that amounts in excess of one million tonnes of coal will be blocked out by this activity.

Surface infrastructure work at Aberpergwm has continued with the delivery of the road heading machine required to drive the new drift.

In response to the increased levels of production, Energybuild agreed terms with Tower Colliery (‘Tower’) to re-commission the coal preparation plant on the Tower site to increase processing capacity. A two year extension concerning Energybuild’s continued use of the railhead facility at Tower was also agreed.

Nant y Mynydd
Surface mining operations at Nant y Mynydd produced 53,000 tonnes of clean coal an increase of 230% year on year. Energybuild also bought in excess of 10,000 tonnes of coal from external sources for blending. Sandstone quarrying operations were started in December 2008, as a joint venture operation with a local company. Details of this operating agreement are likely to be finalised in March 2009.

The 50% joint venture coal tip washing scheme with Coal Recovery Investments Ltd produced a total profit of £126,000 during the period, of which Energybuild’s share is £63,000. This revenue was generated mainly from incidental coal mined during the development of the recovery site. The tip washing plant has been constructed on site and will be commissioned in early March. The project is expected to contribute significantly to Energybuild’s results over the next six months.

The market for Energybuild’s coal remains buoyant, with 113,000 tonnes sold into the industrial market and 15,000 tonnes being sold into the sized market. Energybuild’s contribution to the domestic fuel market was further bolstered in December, when the Company signed a five year coal distribution agreement with Evans & Reid, a major UK supplier of solid fuels. Under the terms of this agreement, Energybuild will sell all sized products produced at Aberpergwm to Evans & Reid, barring sales to domestic customers.

Outlook for Energybuild Group Plc
Energybuild’s projected saleable coal production for the 2009 financial year will be 265,000 tonnes with targeted production for 2010 of c.440,000 tonnes rising to c.750,000 tonnes per annum in 2011.

Cambrian holds 65,760,000 shares, 50.6% of the issued share capital, in Energybuild.

Other Investments
Xtract Energy plc (“Xtract”)
During the first half of the financial year, Xtract entered a new joint venture with Merty Energy, initially focused on the exploitation of a portfolio of seven licence interests in a prospective Turkish oil and gas province. In December 2008 the joint venture announced a successful discovery of oil on drilling the Sarikiz-2 well in south-west Turkey. Total oil in place is estimated at up to 110 million barrels with production testing expected in April 2009.

Agreement was reached with Santos International Holdings Pty Ltd during the period to farm-out 75% of Xtract’s interest in Zhibek Resources Ltd in exchange for funding commitments of up to US$8.5 million (of the first US$10 million) of an agreed exploration programme in the Kyrgyz Republic.

Following a two-year review period for oil shale developments announced by the Queensland state government in Australia, and in the light of prevailing economic conditions, Xtract has scaled-back and put into hibernation its oil shale technology development programme.

Cambrian holds 340,256,048 shares, 45.3% of the issued share capital in Xtract.

Northern Energy & Mining Inc (“NEMI”)
NEMI has a 12% interest in Peace River Coal LP which has metallurgical coal interests in northeast British Columbia, including the Trend mine, the Roman and Horizon properties and a 50% interest in the Belcourt-Saxon Coal Limited Partnership whose properties are located approximately 65 to 125 kilometres south of Tumbler Ridge, British Columbia, where WCCC’s Wolverine operations are located.

In October 2008, NEMI and Aviva Corporation announced a merger implementation agreement, which was subsequently cancelled, in December 2008 due to a material adverse change caused by confirmation of NEMI’s interest in Peace River Coal LP being diluted to 12%.

Cambrian holds 11,781,326 shares, 20.4%, of Northern Energy & Mining Inc.

Geographical Spread

Cambrian has interests in a number of mining operations, including the Augusta gold and antimony mine in Victoria, Australia; the 2.4 million tonnes per annum Wolverine hard coking coal mine in Western Canada; the Dillon/Brule PCI mine in Western Canada, as well as the underground and surface thermal coal mines in West Virginia, USA.

Board of Directors and Key Management

Mark Burridge	Chief Executive Officer
Ted Button	Non-Executive Director
John J Byrne	Executive Chairman
John Conlon	Executive Director
Charles de Chezelles	Non-Executive Director

Company Address

27 Albemarle Street
London, United Kingdom W1S 4DW


Telephone:	+44 (0)20 7409 0890
Facsimile:	+44 (0)20 7491 2758
Email:	info[at]cambrianmining.com
Website:	http://www.cambrianmining.com

Capital

Number of shares in issue: 118,170,694

Annual General Meeting

December

Year End

June 30

Nominated Brokers

Singer Capital Markets
One Hanover Street
London
W1S 1YZ

Nominated Advisors