Deutsche Rohstoff AG

Board/Management Information • Dec 20, 2013

News Details

Corporate | 20 December 2013 09:58

Deutsche Rohstoff AG: Corporate update

Deutsche Rohstoff AG / Key word(s): Miscellaneous

20.12.2013 09:58

Dissemination of a Corporate News, transmitted by DGAP - a company of EQS
Group AG.
The issuer / publisher is solely responsible for the content of this announcement.

---

Deutsche Rohstoff: Corporate Update

Heidelberg. Approaching the end of 2013, Deutsche Rohstoff (DRAG) gives an
overview of the key developments within the company and it's subsidiaries :

Deutsche Rohstoff AG/Group

The Management had set four targets for DRAG and the group for 2013/2014
(please see Group Management Report, Annual Report 2012):

• Secure financing and performing Tekton Energy's horizontal drilling
  program: With the successful bond placement in the summer, DRAG
  succeeded in funding the extensive horizontal drilling program in the
  U.S. on acceptable terms and without dilution of existing shareholders.
  The management considers this a significant success.

• Acquiring additional acreage in the Wattenberg field or other
  prospective sites in the U.S.: Tekton now owns over 7,000 acres within
  the Wattenberg field. This represents a significant increase in
  comparison to the original position of approximately 2,000 acres. The
  acquisition of land is currently ongoing.

• Profitable tungsten production and extension of the life of mine:
  Wolfram Camp recently announced the start of commercial production and
  documented enough resources to extend the life of mine to approximately
  10 years. Although the ramp up phase of the mine took longer than
  expected, the management is satisfied with the achieved status and is
  convinced that the mine is a strategically attractive asset.

• Secure financing of Tin International and Seltenerden Storkwitz: The
  planned IPO of Tin International has not yet been achieved. Market
  conditions in the junior exploration sector are still very difficult
  worldwide. The company itself holds sufficient funds at present.
  Further funding remains a task which the management of DRAG promotes
  insistently. The same applies to Seltenerden Storkwitz, the initially
  planned IPO was postponed for operational reasons (please see below).

In 2014 the continued drilling program of Tekton Energy and the growth of
tungsten production will be the main focus of DRAG. Payment of a dividend
for 2013 is planned. Investment in new projects is being considered,
particularly in the oil and gas sector. Although the current market
environment for young commodity companies is still very difficult, the
solid financial situation of DRAG represents a key factor for success and a
competitive advantage.

Within the individual divisions/subsidiaries the following was achieved
until the end of 2013:

Oil and Gas
Tekton Energy LLC (Share Deutsche Rohstoff: 73%)

Tekton started production from five new wells from the Pavistma Pad on
November 26th. All wells produced oil within the first two days. Afterwards
the wells had to be shut down for approximately 10 days due to the
unusually cold weather in Colorado with temperatures below minus 20 degrees
Celsius, since the water flowing back began to freeze. The already
producing horizontal and vertical wells were not affected because they
hardly produce water. At the beginning of this week, production of the
wells continued. Due to the interruption the initial production rates for
the first 30 days (IP 30) will be announced in middle January 2014.

The three wells that were drilled from the Frye Farms pad are now
completed. They will probably commence production in mid-January. The
second drilling rig is going to start drilling from the Diamond Valley East
pad in the coming week.

The first drilling rig has returned to the Pavistma pad, where it is
drilling two more wells with extended horizontal reach of 2 miles (about
3.2 kilometers) since early December. Tekton uses these so-called 'Extended
reach lateral'-wells (ERL-wells) for the first time to test their economic
benefit. They are supposed to generate production similar to two horizontal
wells at a lower cost than two individual wells with normal length (one
mile). Tektons working interest in the wells is above 90%.

Over the past weeks, Tekton successfully acquired additional acreage.
Overall, the company now holds about 7,000 acres (about 28 square
kilometers). The majority of the additional land is located in the north of
Windsor, adjacent to the existing areas.

Oil and Gas
Rhein Petroleum GmbH (Share Deutsche Rohstoff: 10%)

Rhein Petroleum is in the process of finishing the ongoing drilling of it's
second well in Hesse ('Allmend 1'). An estimate of profitability as part of
a production test for Allmend 1 and their already completed well
'Stockstadt' is planned for February. Further wells in Hesse,
Baden-Wuerttemberg and Bavaria are planned.

Tungsten and Molybdenum
Wolfram Camp Mining Pty Ltd and Tropical Metals Pty Ltd
(Share Deutsche Rohstoff: each 100%)

Wolfram Camp announced the start of commercial production in the beginning
of November; this means that the management expects to be able to produce
positive operating results from that date. In recent weeks the production
was stable. For the coming year further improvements of the processing
plant are planned and a further increase in production is anticipated.

The relevant price for tungsten APT in Europe ranged between USD 380/mtu
and USD 400/mtu over the past months. Currently, many market observers
expect the price to rise due to the expected economic recovery in Europe
early next year.

Tin
Tin International Ltd (Share Deutsche Rohstoff: 60%)

In 2014 Tin International (TI) and its operating subsidiary Sachsenzinn
GmbH (SZ) plan to primarily develop the license area Sadisdorf, which was
granted in February 2013.

The company is adequately funded from past capital increases. The
exploration work will continue in Sadisdorf. To establish unhindered access
to the historic mine refurbishments are currently planned in the old
tunnels. This project has already been approved by the Saxon Mining
Authorities (Sächsisches Oberbergamt). Subsequently, decisions about the
scope of underground mining exploration work will be made. Further
exploration activities for Gottesberg and Geyer will continue, but a
drilling program for these sites is not planned for 2014.

Rare Earth Elements
Seltenerden Storkwitz AG (Share Deutsche Rohstoff: 50%)

Seltenerden Storkwitz (SES) has established a very promising additional
business division over the past months. It aims at the treatment of mineral
dumps, that have arisen in the context of industrial production processes
at various locations in Europe over past decades. According to the current
level of knowledge some of the dumps contain mineable grades of rare earth
with significant tonnage in place.

Samples were taken, analyzed and processed. SES was able to identify
multiple dumps for which an economic recovery and a beneficiation of rare
earth at comparatively low investment and cost seems possible. Based on the
results the management of SES is optimistic to enter marketing activities
of a high-quality mixed oxide in the medium term. The company is currently
working on various cooperation agreements with well known partners which
will be involved in developing various aspects of the project. A
feasibility study based on a resource according to the Australian JORC
standard is planned for early 2015.

The Storkwitz deposit, for which SES received a resource estimate according
to the JORC standard in 2012, will also be further developed, but currently
at a reduced speed. The planned further drilling, which was supposed to
explore the ore body to greater depths, will be postponed on behalf of the
fast development of the new project. The same applies to the IPO, which
proceeds were primarily intended to finance the drill work.

Lead/Zinc/Silver
Devonian Metals Inc (Share Deutsche Rohstoff: 47%)

No exploration took place this year in our Wrigley-Project, where Devonian
is involved together with Glencore-Xstrata. The existing permits will be
maintained. A joint sale of the project has not yet been decided; therefore
Devonian now plans to sell its own share.

Management Update

The Supervisory Board of Deutsche Rohstoff AG has renewed the expiring
appointments of the management Dr. Titus Gebel and Dr. Thomas Gutschlag.
The appointment of Dr. Thomas Gutschlag to the Management Board was
extended by the statutory maximum term of five years up to 31.12.2018.

Dr. Titus Gebel was appointed to the Management Board for another year up
to 31.12.2014. After that, he will lay down his management position at DRAG
for personal reasons and at his own request and will only be available in
advisory capacity and within the supervisory bodies of the subsidiaries.
After he has retired from the Management Board, Dr. Gutschlag will take
over the role of CEO. The Supervisory Board will decide on appointing
another member to the management over the course of next year.

Heidelberg, 20 December 2013

Deutsche Rohstoff (Heidelberg, Germany), listed in the Entry Standard
segment of Frankfurt Stock Exchange, is establishing a new primary
producer. The company's focus is placed on oil & gas and so called high
tech metals such as tin, tungsten, and rare earth metals. All projects are
located in political stable countries with high environmental standards.
The business concept is based on redeveloping deposits, which have been
well explored in the past. For more information please visit
www.rohstoff.de.

Contact:

Deutsche Rohstoff AG
Thomas Gutschlag
Tel. +49 6221 871 000
info@rohstoff.de

20.12.2013 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

---

Language: English
Company: Deutsche Rohstoff AG
Friedrich-Ebert-Anlage 24
69117 Heidelberg
Germany
Phone: 06221-87100-11
Fax: 06221-87100-22
E-mail: gutschlag@rohstoff.de
Internet: www.rohstoff.de
ISIN: DE000A0XYG76, DE000A1R07G4,
WKN: A0XYG7, A1R07G
Indices: Entry Standard (Performance TOP 30)
Listed: Freiverkehr in Berlin, Düsseldorf, Stuttgart; Frankfurt in
Open Market (Entry Standard)

End of Announcement DGAP News-Service

---