ATH Ath Resources

RNS Number:3668R
ATH Resources plc
02 April 2008




Press Release                                                      2 April 2008

                               ATH Resources plc

                             ("ATH" or "the Group")

                                 Trading Update


ATH Resources plc, one of the UK's largest coal producers, today issues the
following trading update ahead of Interim Results for the six months to 30 March
2008 which will be announced on 10 June 2008.

Development of the business has progressed well in the six month period and
trading is in line with market expectations for the full year.

Operations at the Grievehill Extension and Muir Dean sites commenced recently
and the opening of both mines is progressing to plan. In the case of Grievehill,
there was a delay in the receipt of planning consent which has resulted in lower
coal production in the current period when compared to the equivalent period in
the last financial year.  Deliveries of new mobile plant have started, as
scheduled, which will provide additional production capacity to recover the
shortfall in the second half of the year from this and other sites.

Sales volumes in the six month period reflect the reduced production from
Grievehill and are expected to be around 800,000 tonnes. Average prices are
ahead of Director's expectations and the trend in prior years, with the average
selling price of coal increasing by more than 10% to over �35/tonne.

This price increase partly reflects the buoyant international market for coal
which has seen spot prices more than double over the last 12 months as worldwide
demand for coal increases, especially in the Far East.

The business is poised to take advantage of the strong market with a number of
new contracts in the industrial sector at significantly improved prices. This is
expected to increase further the average selling price in the second half. In
the longer term, the business will also benefit when new contracts for coal
produced at Muir Dean and other new sites are concluded.

As with coal, oil has seen a further price increase in the period raising the
cost of gas oil, an important component of the cost base. The Directors, though,
are confident this cost increase can be absorbed given the strength of the coal
market and the current hedging strategy.

The development of the land regeneration and coal tip washing business, ATH
Regeneration, has continued. The business is awaiting a planning consent for the
Langton site in Nottinghamshire where operations are expected to commence later
in the year. In addition, negotiations with clients for the washing of 2
additional sites are progressing well and are expected to conclude in the near
future.

ATH Regeneration is also pursuing a number of opportunities to deploy its
intellectual property in Australia. Discussions are currently underway with two
large, diversified mining companies for ATH to build, own and operate washing
plants at operational mines in Queensland.  The Directors believe this much
larger market will provide a significant opportunity to grow the business in the
medium term.

During the six month period, the business received important planning consents
for the Grievehill Extension and Muir Dean sites which resulted in permitted
reserves increasing by 2.5 million tonnes to over 6 million tonnes.

A further extension to the Skares mine of 0.6 million tonnes has recently been
added to the total reserve base which now stands at around 8.4 million tonnes.


                                     -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

 Evolution Securities Limited
 Joanne Lake/Peter Steel                                Tel: +44 (0)113 243 1619

Media enquiries:
 Abchurch
 Charlie Jack / George Parker                          Tel: +44 (0) 20 7398 7706
 george.parker@abchurch-group.com                         www.abchurch-group.com


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, Glenmucklock 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 34 per cent of the UK's electricity in
2005 and the Company holds coal supply contracts with four 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, 2 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 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 brings to the Group will be a significant driver of ATH's
organic growth going forward.

For the year ending 30 September 2007, the Group achieved turnover of �70.5
million, an increase of 30% on its 2006 year end, while EBITDA was up 31% to
�25.1 million for the same period.

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


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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