12 November 2014

GCM Resources plc

("GCM" or the "Company")

(AIM:GCM) 

Preliminary Results for the year ended 30 June 2014

GCM Resources plc (AIM:GCM), a resource exploration and development company, is pleased to report its preliminary results for the year ended 30 June 2014 .

Highlights:

·      Bangladesh has moved strongly towards coal as the primary source of power in the country, with plans for the development of coal-fired power plants generating 8,536 MW by 2021.

·      GCM continued its advocacy efforts with the Government of Bangladesh in communicating how the Phulbari Coal Project can promote national and regional benefits, as well as supporting the Government's plans to restructure the country's energy supply.

·      As a result of substantially reducing spend, GCM's loss for the year ended 30 June 2014 was £1.3 million (2013: loss of £3.2 million) and capitalised Project-related expenditure during the year was £0.8 million (2013: £1.9 million).

The Annual Report and Accounts for the year ended 30 June 2014 will be posted on the Company's website today (www.gcmplc.com) and will shortly be mailed to shareholders. Copies will also be available on request from the Company.

In the Chairman's Statement Michael Tang, Executive Chairman stated: "During the last twelve months, Bangladesh has gone through a period of considerable change. Throughout 2013 the country was dominated by the political activity leading up to the national election, which was held on 4 January 2014. During this period of uncertainty the Company undertook a substantial cost-reduction exercise, which resulted in 60% less cash spend than the previous financial year followed by a £2.3 million share placement. The combination of these measures ensured that GCM could continue throughout the 2014 financial year and into 2015.

"The first half of 2014 saw a renewal in Government activity following its re-election and renewed term of office. It has been very encouraging to see the positive steps that have been taken, including the Government's commitment to an increase in power production to 16,000MW by 2016 and 24,000MW by 2021, with coal being the main source of energy. The Company has continued its advocacy with Government ministers and officials in communicating how the Phulbari Coal Project (the "Project") can complement the objectives of the Government and promoting the national and regional benefits that the Project would deliver.

"As mentioned above, we have restructured operations from a cost perspective and I am pleased to advise that the loss for the year ended 30 June 2014 was £1.3 million, compared to £3.2 million in the previous financial year. Capitalised Project-related expenditure during the year was £0.8 million compared to £1.9 million in the last financial year. Whilst reducing costs has been a key focus for the Company, we have also ensured that the necessary expertise and resources are in place to continue pursuing Project approval.

"Going forward, the Company will continue to advocate development of the Project with the Government of Bangladesh and the benefits that the Project can bring to the country. Recognising the importance of partnering with local people, we will continue to build and maintain a constructive relationship with the project affected communities. GCM will also continue to look for other investment opportunities to enhance shareholder value.

"I would like to thank the Board, staff and advisers for all their hard work over the last year."

The Income Statement, Statement of Comprehensive Income, Statement of Changes in Equity, Balance Sheet and Cash Flow are presented on the following pages.

The audited financial information for the years ended 30 June 2014 and 30 June 2013 contained in this document do not constitute statutory accounts as defined in the Companies Act 2006. The comparative financial information is based on the statutory accounts for the financial year ended 30 June 2013. Those accounts, upon which the auditors issued an unqualified opinion with an emphasis of matter paragraph, have been delivered to the Registrar of Companies. The financial information for the year ended 30 June 2014 has been extracted from the financial statements of GCM Resources plc which will be delivered to the Registrar of Companies in due course. The auditors have issued an unqualified opinion with emphasis of matter paragraphs on the Group's statutory financial statements for the year ended 30 June 2014. The preliminary announcement was approved by the Board of Directors on 12 November 2014.