Anglo Pacific Group PLC ("Anglo Pacific", the "Company") (LSE: APF) (TSX: APY) advises that the proposed changes to royalty rates, which were announced by the Queensland Government on September 11, 2012, are also expected to apply to the royalty rate of the coal royalties that the Company receives from the Kestrel and Crinum mines in Queensland, Australia, operated by Rio Tinto Limited and BHP Billiton Limited respectively.

In the 2012-2013 Queensland State Budget, the Queensland Government announced an increase in the royalty rates for coal sold, disposed of or used on or after October 1, 2012, which will also apply to Anglo Pacific's Kestrel and Crinum royalties.  The effective royalty rate for a particular period depends on the average price per tonne of coal for the return period and is calculated on a tiered system.  A rise from 10% to 12.5% is proposed where the average price per tonne is over A$100 and up to and including A$150, with an additional band of 15% where the average price is more than A$150 per tonne.  The first A$100 will continue to attract a royalty rate of 7%.

More information can be found on the royalty rates section of the website of the Queensland Government Office of State Revenue www.osr.qld.gov.au/royalties/rates.shtml.

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