ATH Ath Resources

RNS Number:1962F
ATH Resources plc
05 October 2007




Press Release                                                     5 October 2007

                               ATH Resources plc

                             ("ATH" or "the Group")


                            Pre-Close Trading Update



ATH Resources plc, one of the UK's largest coal producers, today issues the
following trading update ahead of the Group's Preliminary Results for the year
ended 30 September 2007, which will be announced on Wednesday, 5 December 2007.

Trading has been in line with the Directors expectations for the year and
operations continue to perform well.  Sales and production are within forecasts
at approximately 2.1 million tonnes (year to 1 October 2006: 1.8 million tonnes)
and the Group's profit before tax is anticipated to be in line with market
expectations.  The growth in production during the year resulted in the Group
recently selling its 10 millionth tonne of coal since commencing operations in
1998.  International coal prices continue to rise and the Group is well placed
to benefit from higher prices as long term contracts are renewed over time.

The land regeneration and coal tip washing business, re-branded as ATH
Regeneration, continues to perform ahead of expectations.  Operations at the
existing site at Grimethorpe are coming to an end in mid 2008.  A planning
application has recently been submitted to facilitate the coal tip washing of
the Group's Langton site with a view to commencing operations during the course
of 2008.

Strong growth is planned for ATH Regeneration and the Directors believe that
there are significant opportunities to exploit the business' intellectual
property and market potential.  Five new projects are being targeted in the UK
which should enable production to be more than doubled by 2010.

In addition, a number of projects are being actively pursued in Australia.  The
Directors have identified a clear opportunity to build a presence in this much
larger coal production market, where ATH's successful coal recovery techniques
are not presently employed.

Coal production in the mining business has been from four sites during the year,
one of which, Grievehill (600,000 tonnes), is shortly coming to an end.  This
will be replaced by the mining of a further extension which, subject to
planning, is expected to commence in early 2008. The planning application for
this one million tonne extension is due to be determined at a local level in the
next two months with full consent expected in February 2008. Following the
application consultation process, the Directors are confident that consent will
be achieved which is necessary for the mining plan to meet market expectations
in 2007/8.

ATH is also expecting to receive in the near future the result of its appeal on
the Muir Dean site (2.2 million tonnes) in Fife, which was the subject of a
Public Inquiry in June 2007.  The balance of the evidence presented to the
Inquiry was in the Directors' opinion very encouraging and the Group remains
confident of a positive result.

The Group continues to aggressively pursue additional coal reserves. A planning
application has recently been submitted at Rigg, close to the existing mine at
Glenmuckloch, for 600,000 tonnes, with the potential of up to 1.3 million
tonnes. A further planning application for an extension of 700,000 tonnes to
Glenmuckloch itself is expected in November 2007.  In addition, potential
further extensions to operational sites of up to 2.5 million tonnes have been
identified and are currently being assessed.

At 30 September 2007, the Group had estimated 3.5 million tonnes of Proven coal
reserves and 5 million tonnes of Probable coal reserves*.



* For a full explanation of the definition of Proven and Probable reserves
please visit the ATH website- www.ath.co.uk



                                    - Ends-






For further information:
ATH Resources plc
Tom Allchurch, Chief Executive                         Tel: +44 (0) 1302 760 462
tom@ath.co.uk                                                      www.ath.co.uk

Seymour Pierce
Nicola Marrin                                          Tel: +44 (0) 20 7107 8000

Media enquiries:
Abchurch
Charlie Jack / Georgina Bonham                         Tel: +44 (0) 20 7398 7715
charlie.jack@abchurch-group.com                           www.abchurch-group.com





Qualified Person:

Information in this announcement relating to mineral reserves has been reviewed
by Peter Morgan, Development Director for the opencast business. Peter has
worked in the mineral industry for some 27 years and for the 17 years prior to
joining ATH Resources in January 2006, at Wardell Armstrong, an international
mining engineering and environmental consultancy. Peter is a Chartered Mineral
Surveyor and Chartered Mining Engineer who is a fellow of the Royal Institution
of Chartered Surveyors (FRICS) and a fellow of The Institute of Materials,
Minerals and Mining (FIMMM) and accordingly is considered by ATH Resources to be
a Qualified Person under the AIM Rules.



Notes to Editors:

ATH Resources is an AIM-listed operator of opencast coal mines in the UK with
its current four operational mines, Skares Road, Grievehill, Glenmuckloch and
Laigh Glenmuir in East Ayrshire in Scotland.  The Company is currently the third
largest producer of coal in the UK producing approximately 1.7 million tonnes
per annum.  Coal was used to generate 38 per cent of the UK's electricity in
2006 and the Company holds coal supply contracts with three of the UK's main
electricity generating companies.

The management team has been in place since 1998.  It acquired the rights to
operate (and subsequently acquire) the Skares Road mine with support from The
Alchemy Plan. Following ATH Resources' incorporation in October 2003, and backed
by a follow-on investment from The Alchemy Plan, the Company acquired the
Garleffan mine in November 2003. Garleffan is currently being restored having
finished coaling in June 2006. ATH Resources listed on the AIM market of the
London Stock Exchange in June 2004.

In June 2005, having raised #18 million by way of an Open Offer, the Group
acquired two new opencast sites, Grievehill and Glenmuckloch in Scotland. The
acquisition increased the Group's reserve base by 160% and provided longer term
stability to the business.

In addition to its operating mines, the Company also has a number of other coal
mining projects in Scotland and two through its French subsidiary, SRMMC
including a series of six existing coal concessions in south-central France,
covering an area of 36km, two with an estimated resource of approximately 4.5
million tonnes of recoverable coal.

In May 2006, the Group acquired Doncaster-based A Ogden & Sons Limited, now ATH
Regeneration Ltd, a successful coal recovery, land remediation and regeneration
business with a particular focus on colliery spoil heap reclamation projects.
ATH paid net #9.5 million for the business.  The acquisition, which was earnings
enhancing, allowed ATH to build on its skills as a regenerator of land, whilst
developing strong relationships with key English planning authorities.  The
company has been successfully integrated into the Group. The operational
diversification that the acquisition brought to the Group should be a
significant driver of ATH's organic growth going forward.

For the year ending 1 October 2006, the Group achieved turnover of #54.1
million, an increase of 38% on its 2005 year end, while EBITDA was up 68% to
#19.2 million for the same period.

Further information on ATH Resources can be found at www.ath.co.uk.






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