COBRA RESOURCES PLC

Interim / Quarterly Report • Jun 30, 2019

29th September 2019

Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR).

Cobra Resources plc ("Cobra" or "the Company")

Interim Results

Cobra Resources plc (LSE:COBR), the precious and base metals mineral exploration and development company, announces its results for the six months ended 30 June 2019.

Operational Highlights

Key operational milestones achieved during the period:

• Announcement of an increased 211k oz gold resource for the Wudinna gold project.
• Completion of positive CPR's by SRK for both the Wudinna Gold Project and the Prince Alfred Copper Mine.
• Completion of exploration planning for the 2019/20 drilling programmes with all of the Wudinna exploration permits approved by the South Australian Department of Energy and Mining (DEM).

Corporate and Financial Highlights

• The Company announced the proposed acquisition of Lady Alice Mines Pty Ltd (LAM) on the 7 th March 2019, which will see the Company transform into an operating business.
• Since this announcement, the board has focused on raising funds to complete the acquisition agreement and support the 2019/2020 exploration programmes.

Craig Moulton, Executive Director, commented: The company is positioning itself to begin a strong and exciting journey, and is focused on growth commodities in well-regulated jurisdictions. While global economic volatility continues to make capital for junior explorers very competitive, we believe that prudent explorers with quality projects, such as Cobra, will continue to demonstrate their appeal.

Operational Review

The last 6 months have been an exciting time for the Company as it finalised an agreement to acquire Lady Alice Mines Pty Ltd (LAM), the holder of two highly prospective exploration assets in Australia, namely the Wudinna Gold Project and the Prince Alfred Copper Mine. This acquisition will transform the Company into an operational business, and the board is confident that this will mark the beginning of an exciting journey for Cobra shareholders.

In preparation for fund raising activities the Wudinna mineral resource was re-estimated by Optiro, increasing the gold resource inventory from 200k oz to 211k oz. Both assets were then reviewed by SRK consulting who confirmed the assets exploration prospectivity, as well as the Company's proposed exploration programme.

The board then turned its focus to raising the necessary funds to complete the agreement, and also to support the planned 2019/20 exploration programme, which it believes will unlock the value in these assets and provide capital growth to shareholders.

In parallel, the Company continued exploration planning activities to ensure that the planned exploration programmes could progress once fundraising was completed, with all permits for the Wudinna Gold project now approved by the South Australian Department of Energy and Mining (DEM).

Operational Review, continued

By the end of the period, fund raising activities have continued to progress, however a regulation changes by the FCA regarding prospectus structure required the Company to re-submit its prospectus after having received initial eligibility status. As this coincided with the summer holiday period for the financial community, the board decided to delay fundraising activities until late September / early October.

Corporate Development

The Board was strengthened during the period with the appointment of Craig Moulton as an Executive Director. Mr Moulton brings the benefit of a long career in the geology and mining sector as a geologist and mineral economist. Mr Moulton received his Bachelor of Science degree in Geology with honours from the University of Western Australia and also holds a Masters in Mineral Economics (with Distinction) from Curtin University.

Financial Review

Cobra reported an unaudited operating loss for the six months ended 30 June 2019 of £361,284 which equates to a loss per share for the period of £0.0054. The Company is undergoing a fundraise which will enable the Company to develop its targeted exploration campaigns across its key projects over the next 12-18 months.

Outlook

During the first six months of the financial year the Company will be focused on completing the planned fund raise and then executing the initial phases of the Wudinna Exploration programme which will include geochemical sampling and then drilling of priority targets.

Responsibility Statement

We confirm that to the best of our knowledge:

• The interim financial statements have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting, as adopted by the EU;
• Give a true and fair view of the assets, liabilities, financial position and loss of the Company;
• The interim report includes a fair review of the information required by DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the interim financial information, and a description of the principal risks and uncertainties for the remaining six months of the year; and
• The interim financial information includes a fair review of the information required by DTR 4.2.8R of the Disclosure and Transparency Rules, being the information required on related party transactions.

Enquiries:

Cobra Resources plc

Rolf Gerritsen Tel: +44 (0)20 3778 0881 Email: rg@cobraresourcesplc.com www.cobraresources.co.uk

SI Capital Limited (Broker) Nick Emerson Tel: +44 (0)14 8341 3500

Notes for Editors:

Cobra Resources plc (LSE:COBR) is an exploration, development and mining company whose securities are listed on the main market of London Stock Exchange plc.

The Company's primary strategy is to focus on the development of advanced resource exploration projects with potential, through the application of disciplined and structured exploration and analysis, to progress towards a sustainable mining operation.

On 7 March 2019, the Company announced that it had signed an acquisition agreement to acquire 100% of the units in the Lady Alice Trust and the entire issued share capital of the Lady Alice Mines Pty Ltd ("LAM"), an Australian exploration company, as a trustee of the Lady Alice Trust (the "Proposed Acquisition").

The Company will update the market as and when appropriate.

Statement of comprehensive income

	6 months to 30 June 2019 Unaudited £	Period to 30 June 2018 Unaudited £	Period ended 31 December 2018 Audited £
Revenue	-	-	-
Administrative expenses IPO expenses	(299,284) (62,000)	(65,044) -	(376,860) (196,472)
Operating loss	(361,284)	(65,044)	(573,332)
Finance costs	-	-	-
Loss on ordinary activities before taxation	(361,284)	(65,044)	(573,332)
Tax on loss on ordinary activities	-	-	-
Loss for the financial period attributable to equity holders	(361,284)	(65,044)	(573,332)
Earnings per share – see note 3 Basic and diluted	£(0.0054)	£-	£(0.0195)

Statement of Financial Position

	6 months to 30 June 2019 Unaudited	Period to 30 June 2018 Unaudited	Period ended 31 December 2018 Audited
	£	£	£
Assets
Current assets
Intangible assets	68,505	-	-
Cash and cash equivalents	3,081	189,784	328,135
Trade and other receivables	2,503	1,185	28,147
Total assets	74,089	190,969	356,282
Liabilities
Current liabilities
Trade and other payables	(106,340)	(6,012)	(27,248)
Total liabilities	(106,340)	(6,012)	(27,248)
Net assets	(32,251)	184,957	329,034
Equity
Share capital Share premium	672,335 160,992	250,001 -	672,335 160,992
Share based payment reserve	69,038	-	69,038
Retained losses	(934,616)	(65,044)	(573,332)
Total equity	(32,251)	184,957	329,034

Statement of Cash Flows

	6 months to 30 June 2019 Unaudited £	Period to 30 June 2018 Unaudited £	Period ended 31 December 2018 Audited £
Cash flow from operating activities
Operating loss	(361,284)	(65,044)	(573,332)
Shares issued in lieu of fees	-	-	110,002
Decrease/(increase) in receivables	25,644	(1,185)	(28,147)
Increase in payables	79,092	6,012	27,248
Share warrant charge	-	-	69,038
Net cash outflow from operations	(256,548)	(60,217)	(395,191)
Cash flows from investing activities
Payments for intangible assets	(68,506)	-	-
Net cash flows from investing activities	(68,506)	-	-
Cash flows from financing activities
Proceeds from issue of shares	-	250,001	773,501
Transaction costs of issue of shares	-	-	(50,175)
Net cash flows from financing activities	-	250,001	723,326
Net increase in cash and cash equivalents	(325,054)	189,784	328,135
Cash and cash equivalents at the beginning of period	328,135	-	-
Cash and cash equivalents at end of period	3,081	189,784	328,135

Statement of Changes in Equity

	Share capital	Share premium	Share based payment reserve	Retained earnings	Total
	£	£	£	£	£
Loss for the period	-	-	-	(65,044)	(65,044)
Total comprehensive income	-	-	-	(65,044)	(65,044)
At incorporation	1	-	-	-	1
Equity investment in the period	250,000	-	-	-	250,000
At 30 June 2018	250,001	-	-	(65,044)	184,957
Loss for the period	-	-	-	(508,288)	(508,288)
Total comprehensive income	-	-	-	(508,288)	(508,288)
Share warrant charge	-	-	69,038	-	69,038
Share capital issued	422,334	211,167	-	-	633,501
Cost of share issue	-	(50,175)	-	-	(50,175)
Total contributions by and distributions to owners of the Company	422,334	160,992	69,038	-	652,364
As at 31 December 2018	672,335	160,992	69,038	(573,332)	329,033
Loss for the period	-	-	-	(361,284)	(361,284)
Total comprehensive income	-	-	-	(361,284)	(361,284)
As at 30 June 2019	672,335	160,992	69,038	(934,616)	(32,251)

Half-yearly report notes

1. Half-yearly report

This half-yearly report was approved by the Directors on 29th September 2019.

The information relating to the six month periods to 30 June 2019 and 30 June 2018 are unaudited.

The information relating to the year to 31 December 2018 is extracted from the audited financial statements of the Company which have been filed at Companies House and on which the auditors issued an unqualified audit report. The condensed interim financial statements have not been reviewed by the Company's auditor.

2. Basis of accounting

The report has been prepared using accounting policies and practices that are consistent with those adopted in the statutory financial statements for the period ended 31 December 2018, although the information does not constitute statutory financial statements within the meaning of the Companies Act 2006. The half-yearly report has been prepared under the historical cost convention.

Going concern

The Company's day to day financing is from its available cash resources.

The Company is undergoing a fundraise which will enable the Company to develop its targeted exploration campaigns across its key projects over the next 12-18 months and the Directors are confident that adequate funding can be raised as required to meet the Company's current and future liabilities.

For the reasons outlined above, the Directors are satisfied that the Company will be able to meet its current and future liabilities, and continue trading, for the foreseeable future and, in any event, for a period of not less than twelve months from the date of approving this report. The preparation of these financial statements on a going concern basis is therefore considered to remain appropriate.

These half-yearly financial statements are prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the European Union and the Disclosure and Transparency Rules of the UK Financial Conduct Authority.

This half-year report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report should be read in conjunction with the annual report for the year ended 31 December 2018, which have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union.

The Company will report again for the full year to 31 December 2019.

Critical accounting estimates

The preparation of condensed interim financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the end of the reporting period. Significant items subject to such estimates are set out in the Company's 2018 Annual Report and Financial Statements. The nature and amounts of such estimates have not changed significantly during the interim period.

Intangible assets

Exploration and development costs

All costs associated with mineral exploration and investments are capitalised on a project-byproject basis, pending determination of the feasibility of the project. Costs incurred include appropriate technical and administrative expenses but not general overheads. If an exploration project is successful, the related expenditures will be transferred to mining assets and amortised over the estimated life of economically recoverable reserves on a unit of production basis.

Half-yearly report notes, continued

2. Basis of accounting, continued

Intangible assets

Exploration and development costs

Where a licence is relinquished or a project abandoned, the related costs are written off in the period in which the event occurs. Where the Group maintains an interest in a project, but the value of the project is considered to be impaired, a provision against the relevant capitalised costs will be raised.

The recoverability of all exploration and development costs is dependent upon the discovery of economically recoverable reserves, the ability of the Group to obtain necessary financing to complete the development of reserves and future profitable production or proceeds from the disposition thereof.

3. Earnings per share

	6 months to 30 June 2019 Unaudited £	Period to 30 June 2018 Unaudited £	Period ended 31 December 2018 Audited £
These have been calculated on a loss of:	(361,284)	(65,044)	(573,332)
The weighted average number of shares used was:	67,233,532	21,794,972	29,354,855
Basic and diluted loss per share:	£(0.0054)	£-	£(0.0195)

4. Events after the reporting period

There were no reportable events after the reporting period other than those highlighted in the 'Financial Review'.

The Condensed interim financial statements were approved by the Board of Directors on 29th September 2019.

By order of the Board

Craig Moulton Executive Director

Copies of this half-yearly report are available free of charge by application in writing to the Company Secretary at the Company's registered office: Suite A, 6 Honduras Street, London, EC1Y 0TH, or by email to info@london-registrars.co.uk. The report will also be made available on the Company's website: www.cobraresources.co.uk.

End