Anglo Pacific Group PLC ('Anglo Pacific', the 'Company' or the 'Group') (LSE: APF) (TSX: APY) is pleased to announce its full year results for the year ended 31 December 2019, representing a record year for income.

The Company has also published its audited 2019 Annual Report and Accounts, which are available on the Group's website at www.anglopacificgroup.com and on SEDAR at www.SEDAR.com. The following statement should be read in conjunction with the audited financial statements.

BACKGROUND

We are presenting this set of full year results amid the unprecedented global humanitarian and economic crisis caused by the COVID-19 pandemic. Along with the rest of the business community, we are focused on securing the safety of our employees and are mindful of the economic impact that we are likely to experience in the coming months.

Whilst it is very difficult to make forward looking statements or predictions with any great certainty, we believe that the impact of COVID-19 will be a temporary disruption and will ultimately pass. In the meantime, we have stress tested our business model to assess what the impact would be under several downside scenarios. Overall, we consider that Anglo Pacific is well positioned to withstand the challenges ahead, given the strength of our financial position and the diversity of our royalty portfolio.

Following the application of IFRS 9, the royalties received from EVBC are reflected in the fair value movement of the underlying royalty rather than recorded as royalty income.

The McClean Lake principal repayment in 2017 included GBP1.8m relating to tolling receipts from H2 2016

FINANCIAL HIGHLIGHTS

Record GBP55.7m in royalty related revenue, an increase of 21% on the previous record of GBP46.1m earned in 2018 driven by a strong performance at Kestrel

Total portfolio contribution increased by 20% to GBP59.5m, or US$75m

21% increase in operating profit to GBP44.8m (2018: GBP37.1m) despite continued investment in the business which saw operating expenses rise to GBP7.1m

Profit after tax, which includes valuation and impairment charges, in line with previous year of GBP29.0m resulting in basic earnings per share of 16.06p (2018: GBP28.8m and 15.97p)

13% increase in adjusted earnings1 per share to 20.41p (2018: 18.02p)

Net debt at the year-end of GBP28.8m (2018: net cash GBP3.1m) reflecting the GBP62.6m of acquisitions made during the year along with GBP14.4m of dividend payments

Recently announced refinancing of the Group's borrowing facility to increase commitments from US$60m to US$90m, the retention of a US$30m accordion option and a twelve-month extension

DIVIDEND UPDATE BASED ON RECORD PERFORMANCE AND INVESTMENT IN 2019

Recommended 32% increase in the final dividend for 2019 to 4.125p, which is in line with previous guidance. If approved at the 2020 AGM, it will be paid shortly thereafter

Along with the 4.875p of interim dividends already paid in respect of 2019, the final dividend would bring the total dividend for 2019 to 9.00p, a 12.5% increase on that of 2018

The Company will no longer be holding its 2020 Annual General Meeting on 11 May 2020 as originally intended given the current circumstances surrounding COVID-19. We are currently working to ensure that our 2020 AGM can be held as soon as reasonably practical and a separate announcement will be made shortly confirming the new AGM date, as well as a revised record and payment date for the final dividend

OPERATING HIGHLIGHTS

US$75m (GBP62.6m) of income producing royalties acquired during 2019, a record level of investment and financed from the Group's balance sheet

Kestrel operator achieved a 42% increase in saleable coal production, exceeding its 40% target, resulting in a record year of royalty income for the Group

Income of GBP8.0m from LIORC was the Group's second largest source of revenue and, based on the investment made in 2018 represented a 16% yield in 2019

Record production levels achieved at Maracas Menchen, with the expansion plan on track although the significant decrease in the vanadium price impacted revenue

Post period-end, US$20m financing agreement entered into with Incoa Performance Minerals, diversifying our portfolio into industrial minerals

OUTLOOK

Refined investment strategy recently announced, with the Group committing to no further investment in thermal coal

Further volume growth expected from the portfolio in 2020 subject to any impact of COVID-19 on business operations

Kestrel owners are targeting a further 6.5% increase in saleable coal production in 2020

Maracas operator is targeting further growth in 2020 following the completion of its plant expansion project in H2 2019

Full year of revenue to come from the Group's Mantos Blancos royalty (only four months included in 2019)

Further GBP5.7m LIORC addition in Q1 2020, representing the reinvestment of dividend income, taking our total stake to 7% and providing further source of revenue for 2020

In excess of GBP60m (US$75m) of available liquidity under the refinanced borrowing facility to finance growth opportunities

COVID-19 UPDATE

Business as usual for Anglo Pacific with all staff members working remotely and investment opportunities being pursued

No operational restrictions in force at Kestrel at the time of writing

EVBC and McClean Lake have announced short-term shutdowns of two and four weeks respectively - based on 2019 results this would have represented 1% of portfolio contribution

IOC has temporarily halted production of two (out of six) pellet machines in response to a slowdown in demand for pellets, adjusting production to meet increased demand for 65% Fe concentrate. In addition, the Quebec government has directed a reduction in activities from the port where the product is shipped to a minimum. The potential impact of these measures on sales prices and volumes is unclear at this time

Spot prices of the commodities which underpin the Group's revenues have held up well thus far in 2020

Currencies have remained volatile following unprecedented Government and Central Bank intervention, but at present the impact of a weakening Australian dollar has positive implications for the Kestrel weighted average royalty rate (assuming constant coal prices)

Effective hedging program in place during 2019 which will benefit 2020 cashflow with A$33m contracted forward in 2020 at an average rate of GBP:AUD of 1.86 vs spot of 2.02

JULIAN TREGER, CHIEF EXECUTIVE OFFICER OF ANGLO PACIFIC, COMMENTED: 'Anglo Pacific enjoyed a very successful 2019, with a record level of investment and portfolio contribution. We are pleased to recommend a full year dividend for the year of 9p, consistent with our previous statement that it would not be less than this level despite the ongoing and ever evolving market turmoil. This means that we are proposing a final dividend of 4.125p, a 32% increase on the 2018 final dividend. At the current share price the dividend, which is over 2.3x covered, represents a very healthy income yield.

The most material mines from which we generate the majority of our revenue remain in production and are able to ship and sell. We have seen some instances of COVID-19 related shutdowns at EVBC and McClean Lake which are currently expected to last for between two to four weeks. We would expect to see production volume growth in the year ahead absent any further shutdowns.

Market conditions are very challenging for conventional mining finance, and this will see the environment for raising capital becoming much more difficult and perhaps prohibitively expensive. This should increase the demand for alternative financing, and we will look to prudently put capital to work, financed from our recently upsized revolving credit facility.

We at Anglo Pacific look long-term in respect of our strategy and strongly believe that climate change is an important issue facing the planet. The mining industry will be part of the climate change solution, providing the commodities needed to implement the technology which will allow the world to reduce dependence on fossil- based energy. We have aligned our investment focus accordingly and have committed not to increase our exposure to thermal coal through any new investment.

Our business remains in sound financial health, with leverage ratios of less than 0.7x, no material capital commitments, and debt maturity extended for a further twelve months to September 2022. We remain focused on growing our business in the year ahead.'

Adjusted earnings/(loss) represents the Group's underlying operating performance from core activities. Adjusted earnings/(loss) is the profit/(loss) attributable to equity holders less all valuation movements, non-cash impairments and amortisation charges (which are non-cash IFRS adjustments that arise primarily due to changes in commodity prices), finance costs, any associated deferred tax and any profit or loss on non-core asset disposals as these are not expected to be ongoing.

Free cash flow is the net increase/(decrease) in cash and cash equivalents prior to core acquisitions, equity raising and changes in the level of borrowings.

Contact:

Tel: +44 (0) 20 3435 7400

About Anglo Pacific

Anglo Pacific Group PLC is a global natural resources royalty and streaming company. The Company's strategy is to become a leading natural resources company through investing in high quality projects in preferred jurisdictions with trusted counterparties, underpinned by strong ESG principles. It is a continuing policy of the Company to pay a substantial portion of these royalties and streams to shareholders as dividends.

Cautionary statement on forward-looking statements and related information

Certain statements in this announcement, other than statements of historical fact, are forward-looking statements based on certain assumptions and reflect the Group's expectations and views of future events. Forward-looking statements (which include the phrase 'forward-looking information' within the meaning of Canadian securities legislation) are provided for the purposes of assisting the reader in understanding the Group's financial position and results of operations as at and for the periods ended on certain dates, and to present information about management's current expectations and plans relating to the future. Readers are cautioned that such forward-looking statements may not be appropriate for other purposes than outlined in this announcement. These statements may include, without limitation, statements regarding the operations, business, financial condition, expected financial results, cash flow, requirement for and terms of additional financing, performance, prospects, opportunities, priorities, targets, goals, objectives, strategies, growth and outlook of the Group including the outlook for the markets and economies in which the Group operates, costs and timing of making new investments, mineral reserve and resources estimates, estimates of future production, production costs and revenue, future demand for and prices of precious and base metals and other commodities, for the current fiscal year and subsequent periods.

Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as 'expects', 'anticipates', 'plans', 'believes', 'estimates', 'seeks', 'intends', 'targets', 'projects', 'forecasts', or negative versions thereof and other similar expressions, or future or conditional verbs such as 'may', 'will', 'should', 'would' and 'could'. Forward-looking statements are based upon certain material factors that were applied in drawing a conclusion or making a forecast or projection, including assumptions and analyses made by the Group in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors that are believed to be appropriate in the circumstances. The material factors and assumptions upon which such forward-looking statements are based include: the stability of the global economy; stability of local governments and legislative background; the relative stability of interest rates, the equity and debt markets continuing to provide access to capital; the continuing of ongoing operations of the properties underlying the Group's portfolio of royalties and investments in a manner consistent with past practice; the accuracy of public statements and disclosures (including feasibility studies, estimates of reserve, resource, production, grades, mine life, and cash cost) made by the owners and operators of such underlying properties; accuracy of the information provided to the Group by the owners and operators of such underlying properties; no material adverse change in the price of the commodities produced from the properties underlying the Group's portfolio of royalties and investments; no material adverse change in foreign exchange exposure; no adverse development in respect of any property in which the Group holds a royalty or other interest, including but not limited to unusual or unexpected geological formations and natural disasters; successful completion of new development projects; planned expansions or additional projects being within the timelines anticipated and at anticipated production levels; and maintenance of mining title.

Forward-looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions, which could cause actual results to differ materially from those anticipated, estimated or intended in the forward-looking statements. Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser. No statement in this communication is intended to be, nor should it be construed as, a profit forecast or a profit estimate. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate; that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of material factors, many of which are beyond the Group's control, affect the operations, performance and results of the Group, its businesses, royalties and investments, and could cause actual results to differ materially from those suggested any forward-looking information. Such risks and uncertainties include, but are not limited to current global financial conditions, investment portfolio and associated risk, adverse development risk, financial viability and operational effectiveness of owners and operators of the relevant properties underlying the Group's portfolio of royalties and investments, royalties and investments subject to other rights, and contractual terms not being honoured, together with those risks identified in the 'Principal Risks and Uncertainties' section of our most recent Annual Report, which is available on our website. If any such risks actually occur, they could materially adversely affect the Group's business, financial condition or results of operations. Readers are cautioned that the list of factors noticed in the 'Principal Risks and Uncertainties' section of our most recent Annual Report is not exhaustive of the factors that may affect the Group's forwardlooking statements. Readers are also cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements.

This announcement also contains forward-looking information contained and derived from publicly available information regarding properties and mining operations owned by third parties. The Group's management relies upon this forwardlooking information in its estimates, projections, plans, and analysis. Although the forward-looking statements contained in this announcement are based upon what the Group believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. The forward-looking statements made in this announcement relate only to events or information as of the date on which the statements are made and, except as specifically required by applicable laws, listing rules and other regulations, the Group undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

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