Anglo Pacific Group PLC

Kestrel Update

LONDON, UNITED KINGDOM--(Marketwired - Jan 21, 2015) -  Anglo Pacific Group PLC (TSX: APY) (LSE: APF)

LSE: APF; TSX: APY
News Release

January 21, 2015

Anglo Pacific Group PLC
Kestrel Update

Anglo Pacific Group PLC ("Anglo Pacific" or the "Company") (LSE: APF, TSX: APY), the London and Toronto listed royalty company, is pleased to provide an update on Kestrel, the Company's main producing royalty, following the operational update by Rio Tinto.

• Gross royalty income from Kestrel expected to be approximately £1.7m for 2014. Total gross royalty income from Anglo Pacific's royalty portfolio for 2014 expected to be in the region of £3.2m to £3.6m (as per the Company's trading update on January 9, 2015)
• Kestrel produced 2.7Mt of coal in 2014 (2.16Mt of hard coking coal and 0.56Mt of thermal coal)
• Kestrel production rate expected to reach full capacity of 5.7Mt of coal per year within the next 12 to 18 months
• Anglo Pacific expects royalty income from Kestrel to increase substantially as mining returns to the Company's royalty lands during 2015
• Anglo Pacific expects Rio Tinto to mine over 90% of coal within the Company's royalty lands by 2017

The Kestrel Mine

The Kestrel mine is a low cost underground coking and thermal coal mine in Queensland, Australia operated and 80% owned by Rio Tinto and 20% owned by Mitsui. Rio Tinto completed in 2013 a US$2bn capital expenditure programme to extend the mine life (~18 years remaining) and increase production capacity to 5.7Mtpa.

Kestrel production for 2014 was 2.7Mt of coal (2.16Mt of hard coking coal and 0.56Mt of thermal coal). During Q4 2014 the Kestrel mine underwent a long wall change out which significantly reduced overall mined tonnage. The Kestrel production rate is expected to reach full capacity of 5.7Mt of coal per year within the next 12 to 18 months as the mine continues to ramp up.

Kestrel Production

	Q1 2014		Q2 2014		Q3 2014		Q4 2014		Full Year 2014
Hard coking coal ('000 tonnes)	781		613		621		149		2,163
Thermal coal ('000 tonnes)	88		109		56		311		564

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