Kalahari Minerals plc / Ticker: KAH / Index: AIM / Sector: Mining & Exploration 29 September 2011 Kalahari Minerals plc (Kalahari or the Company) Interim Results Kalahari Minerals plc, the AIM listed resource company, announces its interim results for the six month period ended 30 June 2011. Overview � Key value driver is Kalaharis 42.74% interest in Extract Resources Limited (Extract), which is developing the world-class and globally strategic Husab Uranium Project (Husab) towards production � Definitive Feasibility Study on Zones 1 & 2 of Husab (DFS) demonstrates economic viability and capability of producing 15Mlb of U3O8 per annum, via conventional open pit mining � Mine Optimisation and Resources Extension (M.O.R.E.) programme at Husab progressing well - objective to increase the current 20 year mine life and to investigate opportunities to generate additional value to enhance operating and financial performance � Publication in June 2011 of a 33% increase in the total Resource figure to in excess of 500 M.lbs U3O8 and a maiden Measured Resource at Zones 1 & 2 of 84 M.lbs U3O8 � Reserve update at Husab showed 37% and 42% respective increase in reserve and contained uranium, 4% rise in grade and 18% improvement in strip ratio for Zones 1 & 2 � Maiden declaration of Proven Reserves of 78.7 M.lbs U3O8 - equivalent to four years of full production � Considerable potential to increase current resource inventory through additional exploration on new zones of mineralisation including Zones 3, 4 & 5 of Husab, Middle Dome, Pizzaro and Salem � Mining licence expected to be granted over Husab in coming months ahead of development of the Husab mine - expected lead time of 33 months from project approval to hot commissioning � Considerable international interest in Husab - nuclear industry likely to play a critical role in long-term global energy markets - large-scale strategic assets such as Husab are of paramount importance Chairmans Statement The period under review has been extremely active both on an asset and corporate level.

We remain fully supportive of the development of the Husab Uranium Project (Husab) in its lead up to production, and we aim to seek the most appropriate corporate structure to maximise the potential of this world class asset. On a project level, Extract Resources Limited (Extract), in which we currently hold a 42.74% interest, continues to make excellent progress in developing Husab towards its establishment as one of the largest uranium mines in the world.

To demonstrate this, if Husab was in production today, it would be the second largest uranium mine globally. Following the publication of the Definitive Feasibility Study on Zones 1 & 2 (DFS), which demonstrated Husabs economic viability and highlighted a production potential of 15 M.lbs U3O8 per annum, Extract is conducting the Mine Optimisation and Resources Extension (M.O.R.E.) programme at Husab.

This is progressing well with the objective being to increase the potential mine life, currently standing at 20 plus years (including pre-strip), to investigate opportunities to generate additional value through optimisation of the mine plan and process modifications, and to enhance the projects operating and financial performance. The publication of a 33% increase in the total Resource figure for Husab to in excess of 500 M.lbs U3O8 and a maiden Measured Resource at Zones 1 & 2 of 84 M.lbs U3O8 in June 2011 was followed in August 2011 by a 37% and 42% respective increase in Reserve and contained uranium, 4% rise in grade and 18% improvement in strip ratio for Zones 1 & 2, all of which underpin the potential for the development of one of the worlds largest and most significant long life uranium mines.

Importantly, the figures published in August for the first two zones, also included a maiden declaration of Proven Reserves of 78.7 M.lbs U3O8, equivalent to four years of full production.

This is yet a further milestone in the development of this globally significant project. Additionally, the exploration on the wider Husab area continues and we remain confident the current resource will be increased as drilling on new zones of mineralisation, including Zones 3, 4 & 5 of Husab, Middle Dome, Pizzaro and Salem, is progressed.

The multi zone potential, grade continuity, depth and access, all point to Husab being one of the most exciting undeveloped uranium deposits in the world. On the corporate front, we were obviously disappointed that the 290p per share recommended possible cash offer by CGNPC Uranium Resources Co., Ltd (CGNPC-URC), a wholly owned subsidiary of Chinese energy giant China Guangdong Nuclear Power Holding Corporation, a state owned nuclear fuel producer in the Peoples Republic of China, failed to proceed, as we believed it represented an attractive opportunity to crystallise the inherent value of Kalaharis interest in Husab.

The events at Fukushima and the decision by the Hearings Committee of the UK Panel on Takeover and Mergers that CGNPC-URC was not permitted to reduce the price to 270p per share, were followed by the withdrawal of the possible offer. It is however widely recognised that the nuclear industry will continue to play a critical role in long term global energy markets and, as a result, the Board believes that projects such as Husab are of paramount importance.

The Board believes that Husab has the potential to play a vital role in global uranium supply, especially when forecasts regarding constrained supply in 2014-15, as current major producers output declines, are considered.

China, France and Saudi Arabia have recently reiterated their nuclear policies, emphasising that uranium remains a vital commodity of strategic importance particularly in light of increasing long term global energy demand.

The Board believes that these factors underpin the strong long term market fundamentals for uranium and make the significance of a project of Husabs quality and scale evident.

We remain centred on realising the underlying value of Husab and are committed to the onward stewardship and cultivation of commercial discussions with all interested parties, in support of the Extracts partnership process with Rothschild, with which to achieve this goal. Financial Overview We continue to recognise the inherent value of Husab and in line with this, the Board passed a resolution to ensure that we have an unrestricted mandate to maintain and, wherever possible, increase our interest in Extract, as it delivers on the various capital requirements of developing Husab towards production.

Accordingly, over the period we increased our stake in Extract by 1.62% to 42.74% (as at December 2010: 41.12%).

The market value of this investment at 30 June 2011 was �561.4 million (reporting date share price value of �5.23: A$7.91).

Kalahari maintains a strong cash position and as at 30 June 2011 our cash position stood at �22.2 million. Kalaharis interest in our associate North River Resources plc was diluted to 38.03% (as at 31 December 2010: 44.73%), following a fundraising which Kalahari was unable to participate in due to us being in an offer period following CGPNC-URCs announcement of a possible offer for Kalahari.

The market value of this investment at 30 June 2011 was �5.3 million (reporting date share price value of 2 pence). Kalaharis overriding strategy of maintaining and increasing our interest in Extract is strongly encouraged by our institutional shareholders, who remain stalwart in their support for Kalahari and our development plans for Husab.

This support was recently demonstrated on 6 September 2011, through the conversion of �10 million convertible loan notes into ordinary shares, which extinguished all of our external debt commitments.

We believe that the decision by our key shareholders to convert the loan notes to ordinary shares, rather than demand repayment, provides a further vote of confidence from these strategic institutional investors in the quality of the Husab project and of Kalaharis ability to maximise value for shareholders. Outlook We remain fully committed to the realisation of value at Husab and are excited about the development schedule and resultant news flow in the coming months.

We expect a mining licence to be granted to Extract over the Husab project area which, with the support of Kalahari, will allow it to commence development of the Husab mine.

It is estimated that an engineering and production period of some 33 months will be needed from project approval to hot commissioning, based on the assumptions used at the time of the DFS.

It is currently envisaged that the advancement of Husab will be achieved through utilisation of a simplified development structure. This is a critical period in the evolution of Husab, and as major shareholders and supporters of Extract, the Board remains committed to constructing the most appropriate corporate structure through which to maximise its considerable value.

As we move towards the production phase of Husab, its importance in relation to the larger uranium demand fundamentals are clearly apparent, and the Board remains wholly centred on identifying and achieving the best possible route to achieving value for all stakeholders. Mark Hohnen Executive Chairman 29 September 2011
For further information please visit www.kalahari-minerals.com or contact: Mark Hohnen Kalahari Minerals plc Tel: +44 (0) 20 7292 9110 Neil Maclachlan Kalahari Minerals plc Tel: +44 (0) 7801 350 451 Simon Raggett Strand Hanson Limited Tel: +44 (0) 20 7409 3494 Stuart Faulkner Strand Hanson Limited Tel: +44 (0) 20 7409 3494 Rory Murphy Strand Hanson Limited Tel: +44 (0) 20 7409 3494 Samantha Harrison Ambrian Partners Ltd Tel: +44 (0) 20 7634 4700 Shaun Whyte Ambrian Partners Ltd Tel: +44 (0) 20 7634 4700 Rory Scott Mirabaud Securities LLP Tel: +44 (0) 20 7878 3360 Hugo de Salis St Brides Media & Finance Ltd Tel: +44 (0) 20 7236 1177 Susie Geliher St Brides Media & Finance Ltd Tel: +44 (0) 20 7236 1177
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD FROM 1 JANUARY 2011 TO 30 JUNE 2011 (UNAUDITED)
Unaudited period from 1 Jan 11 to 30 June 11
Audited period from 1 Jan 10 to 31 Dec 10
Unaudited period from 1 Jan 10 to 30 Jun 10
�000
�000
�000
Revenue
-
-
-
Share-based payment charge
(521)
(3,206)
(2,248) Administrative expenses
(3,793)
(3,617)
(3,840) Total administrative expenses
(4,314)
(6,823)
(6,088)
Operating Loss
(4,314)
(6,823)
(6,088) Finance Income
196
1,326
3 Finance expense
(641)
(1,294)
(516) Share of operating loss of associated undertakings
(9,024)
(15,649)
(6,152) Profit/ (Loss) on deemed disposal of associated undertakings
505
97
(13)
(Loss) before taxation
(13,278)
(22,343)
(12,766)
Tax expense
-
-
-
(Loss) for the period
(13,278)
(22,343)
(12,766)
Other comprehensive income
Exchange gains arising on translation of foreign operations 1,104
5,513
2,107 Share of associates other comprehensive income
239
2,819
(2,210)
Total comprehensive income for the year attributable to equity shareholders of the parent
(11,935)
(14,011)
(12,869)
Loss per share
Loss per share attributable to equity holders of the parent
Basic pence per share
(5.41p)
(9.99p)
(5.80p)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION FOR THE PERIOD FROM 1 JANUARY 2011 TO 30 JUNE 2011 (UNAUDITED)
Unaudited 30 June 11
Audited 31 Dec 10
Unaudited 30 Jun 10
�000
�000
�000
Non-current assets
Property, plant and equipment
285
303
349 Investments in associated undertakings
117,726
87,090
90,767 Total non-current assets
118,011
87,393
91,116
Current assets
Other receivables
272
136
143 Cash and cash equivalents
22,178
64,293
23,529 Total current assets
22,450
64,429
23,672
Total assets
140,461
151,822
114,788
Non-current liabilities
Borrowings
(10,000)
(10,000)
(10,000) Total non-current liabilities
(10,000)
(10,000)
(10,000)
Current liabilities
Trade and other payables
(513)
(560)
(1,661) Total current liabilities
(513)
(560)
(1,661)
Total liabilities
(10,513)
(10,560)
(11,661)
Net assets
129,948
141,262
103,127
Capital and reserves attributable to owners of the company
Share capital
2,457
2,454
2,261 Share premium
102,165
102,068
93,383 Share option and warrant reserve
5,701
5,232
5,784 Other reserves
203
(36)
(5,065) Foreign exchange reserve
11,652
10,548
7,142 Merger reserve
29,440
29,440
- Retained (deficit)
(21,670)
(8,444)
(378) Total equity
129,948
141,262
103,127
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD FROM 1 JANUARY 2011 TO 30 JUNE 2011 (UNAUDITED)
Share capital
Share premium
Retained earnings/ (deficit)
Foreign exchange reserve
Share option & warrant reserve
Other reserves
Merger reserve
Treasury Share reserve
Total
�000
�000
�000
�000
�000
�000
�000
�000
�000
PERIOD FROM 1 JANUARY 2011 TO 30 JUNE 2011 (UNAUDITED)
As at 1 January 2011 2,454
102,068
(8,444)
10,548
5,232
(36)
29,440
-
141,262 Total comprehensive loss for the period -
-
(13,278)
1,104
-
239
-
-
(11,935) Exercise of warrants and options -
-
52
-
(52)
-
-
-
- Share based payment -
-
-
-
521
-
-
-
521 Shares issued 3
97
-
-
-
-
-
-
100
As at 30 June 2011 2,457
102,165
(21,670)
11,652
5,701
203
29,440
-
129,948
PERIOD FROM 1 JANUARY 2010 TO 31 DECEMBER 2010 (AUDITED)
As at 1 January 2010 2,092
59,820
12,388
5,035
3,537
(2,855)
-
-
80,017 Total comprehensive loss for the period -
-
(22,343)
5,513
-
2,819
-
-
(14,011) Exercise of warrants and options -
-
1,511
-
(1,511)
-
-
-
- Share based payment -
-
-
-
3,206
-
-
-
3,206 Shares issued 202
42,884
-
-
-
-
-
-
43,086 Acquisition of treasury shares 160
-
-
-
-
-
29,440
(29,600)
- Sale of treasury shares -
-
-
-
-
-
-
29,600
29,600 Share issue expenses -
(636)
-
-
-
-
-
-
(636)
As at 31 December 2010 2,454
102,068
(8,444)
10,548
5,232
(36)
29,440
-
141,262
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE PERIOD FROM 1 JANUARY 2011 TO 30 JUNE 2011 (UNAUDITED)
Unaudited period from 1 Jan 11 to 30 June 11
Audited period from 1 Jan 10 to 31 Dec 10
Unaudited period from 1 Jan 10 to 30 Jun 10
�000
�000
�000
Cash flows from operating activities
Loss for the period
(13,278)
(22,343)
(12,766) Adjustments:
Finance expenses/ (income)
445
(32)
513 Depreciation charges
3
2
3 Share-based payments
521
3,206
2,248 Share of associates losses
9,024
15,649
6,152 (Profit) / Loss on deemed disposal of associate undertaking
(505)
(97)
13 Cash flows from operating activities before changes in working capital and provisions
( 3,790)
(3,615)
(3,837)
Movement in working capital
(Increase)/ Decrease in other receivables
(136)
158
151 (Decrease) / Increase in payables
(41)
167
(1,485) Cash utilised in working capital
(177)
325
(1,344)
Net cash from operating activities
( 3,967)
(3,290)
(5,171)
Cash flows from investing activities
Purchase of property, plant and equipment
-
(4)
(86) Investment in associated undertakings
(38,007)
(7,929)
(8,391) Interest received
196
174
3
Net cash from investing activities
(37,811)
7,759
(8,474)
Cash flow from financing activities
Issued of ordinary share capital
100
43,086
33,732 Share issue expenses
-
(636)
- Proceeds from sale of treasury shares
-
29,600
- Interest paid
(641)
(1,204)
-
Net cash from financing activities
(541)
70,846
33,732
(Decrease) / Increase in cash and cash equivalents
(42,319)
59,797
20,087 Cash and cash equivalents at beginning of the period/ year
64,293
3,442
3,442 Foreign exchange on cash balance
204
1,054
-
Cash and cash equivalents at end of the period/ year
22,178
64,293
23,529
NOTES TO THE FINANCIAL INFORMATION FOR THE PERIOD FROM 1 JANUARY 2011 TO 30 JUNE 2011 (UNAUDITED) 1) BASIS OF PREPARATION The interim financial information has been prepared using policies based on International Financial Reporting Standards (IFRS and IFRIC interpretations) issued by the International Accounting Standards Board (IASB), as adopted for use in the EU.

The interim financial information has been prepared using the accounting policies which will be applied in the statutory financial information of the Company and its subsidiaries (together, the Group) for the year ended 31 December 2011. The interim financial information for the period 1 January 2011 to 30 June 2011 is unaudited.

In the opinion of the Board, the interim financial information for the period presents fairly the financial position, results from operations and cash flows for the period, in conformity with the generally accepted accounting principles consistently applied.

The interim financial information incorporates comparative figures for the interim period 1 January 2010 to 30 June 2010 and the audited financial year to 31 December 2010. These interim results for the six months ended 30 June 2011 are unaudited and do not constitute statutory accounts as defined in section 434 of the Companies Act 2006.

They have been prepared using accounting bases and policies consistent with those used in the preparation of the financial statements of the Company and the Group for the year ended 31 December 2010.

The financial statements for the year ended 31 December 2010 have been delivered to the Registrar of Companies and the auditors report on those financial statements was unqualified and did not contain a statement made under Section 498(2) or Section 498(3) of the Companies Act 2006. 2) EARNINGS PER SHARE
Unaudited Six months ended 30 June 2011
Audited Year ended 31 December 2010
Unaudited Six months ended 30 June 2010
Earnings �000
Weighted average number of shares
Earnings �000
Weighted average number of shares
Earnings �000
Weighted average number of shares Loss for the period/ year from continuing operations
(13,278)
(22,343)
(12,766)
Loss available to shareholders
(13,278)
245,674,578
(22,343)
223,756,669
(12,766)
219,841,221
(Loss) per share
Basic - pence per share
(5.41p)
(9.99p)
(5.80p)
As the loss for the period is anti-dilutive, no diluted earnings per share has been presented. 3) POST REPORTING DATE EVENTS On 10 August 2011, the Company announced a highly positive resource update for Extracts world class Husab Uranium Project in Namibia.

Total ore tonnes within the reserve have increased by 37% to 280 million tonnes.

Based on processing of 15 million tonnes of ore per year, as envisaged in the Definitive Feasibility Study (DFS) completed in March 2011, this equates to a 20+ year mine life, once pre-strip and ramp up phases are included.

Together with a 4% increase in forecast grade to 518 parts per million, total contained uranium has increased by 42%.

The increase in grade is also expected to lead to an increase in process recovery.

Also, the conversion of material to reserves within the pit shells as anticipated in the DFS leads to an 18% reduction in the forecast life of mine strip ratio (including pre-strip) from 7.3:1 to 6.2:1.

The reduction in strip ratio is expected to have a positive effect on project economics. On 6 September 2011, the Company announced the issue of 5,091,316 new ordinary shares following the conversion by holders of the convertible loan notes issued on 7 September 2009, totalling �10 million, in accordance with the terms of the loan note instrument.

Following the conversion, the Company has now extinguished all external debt commitments. Since 30 June 2011, the Group has maintained its interest in Extract at 42.74% (as at 22 September 2011) and retained an interest in North River at 38.03% (as at 22 September 2011). On behalf of the Board Mark Hohnen Dated 29 September 2011
This announcement includes statements that are, or may be deemed to be, "forward-looking statements".

These forward-looking statements can be identified by the use of forward looking terminology, including the terms "believes", "estimates", "plans", "projects", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negatives or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions.

By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances.

Forward-looking statements are not guarantees of future performance and the development of the markets and the industry in which the Company operates, may differ materially from those described in, or suggested by, the forward-looking statements contained in this announcement. [cid:image001.jpg@01CC7E7B.D8B6D640]