Leyshon Resources Limited Completion of Acquisition (4151I)

TIDMLRL

RNS Number : 4151I

Leyshon Resources Limited

25 July 2012

LEYSHON RESOURCES LIMITED

25 July 2012

Completion of Acquisition Of Stake In China's Unconventional Gas Revolution

Leyshon Resources Limited (AIM/ASX:LRL) ("the Company") is very pleased to announce that it has signed a definitive share sale and purchase agreement for the acquisition of Hong Kong Company Pacific Asia Petroleum Limited (PAPL) which holds a 100% interest in the Zijinshan Production Sharing Contract located on the eastern fringe of the prolific Ordos Gas Basin in Central China.

Leyshon has acquired PAPL from Houston based CAMAC Energy Inc for a consideration of US$2.5 million in cash and the issue 10,000,000 fully paid ordinary shares.

The Company is not intending to seek the approval of security holders for the transaction unless ASX requires it under Listing Rule 11.1.2 or 11.2, and is applying to ASX for a determination as to whether security holder approval is required under the Listing Rules.

Managing Director Paul Atherley Commented: "The Ordos Basin is the beating heart of the world's fastest growing major economy and is one of the best places in the world to be exploring for gas right now. Any commercial discovery will be hooked into one of the major arterial pipelines that cross the basin. We are particularly excited about PAPL commencing drilling on one of few remaining blocks on the basin's eastern flank - an area that has seen spectacular recent discoveries."

PAPL's key asset is a 100% interest in the Zijinshan Production Sharing Contract ("PSC").

The Zijinshan PSC is with PetroChina Coal Bed Methane Company Limited (PCCBM) which is a subsidiary of China National Petroleum Corporation, the country's largest integrated energy company.

PCCBM has retained the right to buy back a 40% interest in the contract at the completion of the exploration phase and to jointly fund the project into production.

Strong Cash Position

At quarter end the Company had A$51.0 million in cash, and is due A$0.7 million in term deposit interest for a total of A$51.7 million (GBP 33.5 million). This is equivalent to A$ 21 cents per share (14 pence per share).

Admission to AIM

Application has been made for the 10,000,000 new ordinary shares to be issued pursuant to the acquisition to be admitted to trading on AIM. Admission is expected to occur on 31 July 2012.

As at 30 June 2012, PAPL had net assets of US$120k, carried forward losses of US$9,889k and, for the six months ended 30 June 2012, reported no turnover and a loss of US$791k.

Newsflow

Further announcements will be made when the exploration programme is finalised, to be followed by the commencement of drilling along with updates on the progress and results from the drilling and testing programme.

For further information please contact:

Leyshon Resources Limited

PaulAtherley - Managing Director

Tel: +86 137 1800 1914 patherley@leyshonresources.com

Seymour Pierce

Jonathan Wright (Nominated adviser)

Richard Redmayne (Corporate broking)

Tel: +44 (0)207 107 8000

Background

http://www.leyshonresources.com

Leyshon was on the ground in 2003 when China opened its mining sector to foreign investment. It has been fully engaged in China since then and has its main operating office located in Beijing.

China's latest Five Year Plan emphasizes the planned urbanisation of a large number of Central China's rural population into second and third tier cities lifting the urbanisation rate to 51.5% of the overall population.

This will result in significant increases in infrastructure spending and energy demand. The Company is planning to invest in high quality energy assets in China to meet this growing demand.

Managing Director Paul Atherley is an Executive Committee member of the China Britain Business

Council and serves on the European Union Chamber Energy Working Group.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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