AMEDEO RESOURCES PLC 
By · New investment funds of more than £12.0 million raised via an open offer to all shareholders;
· Invested US$15.3 million (£9.7 million) in new oil and gas rig construction joint venture with multi- billion dollar shipbuilding giant, Yangzijiang Shipbuilding (Holdings) Ltd ("Yangzijiang"), for a 46.45% stake in YZJ Offshore;
· YZJ Offshore's associate, YZJOE, a company in which Creon has an 18.6% indirect interest, secures first rig order worth US$170 million for delivery in mid-2015; and
· Board strengthened with appointments of Mr Ghanim Al Saad as Non-executive Chairman and Mr Glen Lau as Chief Executive Officer.
Post period highlights· Acquired 49% stake in ferrous metal and ore trader, MGR Resources;· Delivery of YZJOE's first rig order on track with enhanced specification; and
· Development of YZJOE's new rig-yard near Shanghai progressing well with land compacting continuing and skidway construction expected to start shortly.
Glen Lau, CEO of Creon, commented: "The year ended 31 January 2013 has clearly been an exceptional one for Creon, transforming itself into a well capitalised and well respected investment company with investments in sectors with high growth potential over both the short and long term. We are delighted with our JV Investment alongside Yangzijiang into YZJ Offshore, which is on schedule to deliver its first order on budget and on time. The development of YZJOE's rig yard just north of Shanghai ought to deliver significant value uplift to Creon as construction on that site continues apace. Our recent investment in MGR is starting to bear fruit and we anticipate receiving our first returns from that investment in the second half of the year. We are financially secure with a strong management team and we look forward to updating shareholders on further developments during the course of the current financial year." The Company's Report and Accounts for the year ended 31 January 2013, together with the notice of Annual General Meeting ("AGM") will be posted to shareholders today and the full report is available to view and download from the Company's website at www.creonresources.com. The AGM is to be held at the Company's registered office at 201 Temple Chambers, 3-7 Temple Avenue, London EC4Y 0DT at 11:00am on 31 July 2013.For further information please contact:ENDS
CHAIRMAN'S STATEMENTI am pleased to present these audited results of Creon Resources plc ("Creon" or the "Company") and its subsidiaries (the "Group") for the year ended 31 January 2013.IntroductionThe 2012/13 year has been a transformational one for Creon:· In June 2012, we raised more than £12.0 million from new and existing shareholders;
· In July 2012, we made our first significant resources investment when we invested US$15.3 million into YZJ Offshore Engineering PTE Ltd ("YZJ Offshore"), a joint venture with multi-billion dollar shipbuilding giant, Yangzijiang Shipbuilding (Holdings) Ltd ("Yangzijiang"), for a 46.45% stake in YZJ Offshore;
· In December 2012, the 40% associate of YZJ Offshore, Jiangsu Yangzijiang Offshore Engineering Co Ltd ("YZJOE"), secured its first rig order worth US$170 million for delivery in mid-2015; and
· In April 2013, we acquired a 49% stake in ferrous metal and ore trader, MGR Resources PTE Ltd.
BackgroundCreon is an investment company with a broad investment policy which has focused on the resources sector. Its aim is to deliver significant shareholder returns through capital growth and to provide the services of its directors and management to its investee companies, when necessary. The background and experience of the Company's directors ("Directors") and its advisory network are crucial to the Group's success, providing it with the necessary access to value enhancing deals, particularly in the high growth regions such as the Middle East and South East Asia.Review of Creon's investmentsYZJ OffshoreCreon made its largest investment to date in July 2012, when the Company, entered into a joint venture with multi-billion dollar China based shipbuilding giant, Yangzijiang, in the offshore oil and gas infrastructure sector ("JV Agreement").
Under the terms of the JV Agreement, Creon and Yangzijiang each invested in a joint venture company, YZJ Offshore, a Singapore registered company specifically set up by Yangzijiang to be a leading player in the design and construction of marine offshore oil and gas vessels (jack-up and semi-submersible rigs) ("the JV Investment"). Creon invested US$15.33 million into YZJ Offshore with Yangzijiang and its associates having invested a further US$14.67 million.
The joining of forces with Yangzijiang under this JV Agreement represented a substantial endorsement of Creon's standing and that of its management in the oil and gas infrastructure sector. The Directors are confident of identifying and executing further significant deals with similar industry heavyweights in order to deliver material shareholder value.
The Offshore oil and gas market
The Directors believe demand for newly designed rigs will be underpinned by the phasing out of the existing stock of rigs over the next few years. The Directors consider that based on the current stock and new rig builds in the pipeline, there could be an under supply by almost 200 jack-up rigs by 2020, given that almost half the current fleet of jack-up rigs are more than 30 years old. Both Creon and Yangzijiang believe the requirement to provide higher specification rigs to enable even deeper and more efficient drilling represents an excellent investment opportunity.
About Yangzijiang Shipbuilding (Holdings) Ltd
Yangzijiang was established in 1956 and is listed on the main board of the Singapore stock exchange. Yangzijiang is the largest non-state owned container shipbuilder in China. In the year ended 31 December 2012, Yangzijiang generated sales of approximately US$2.3 billion and net profits of approximately US$0.6 billion. Yangzijiang reported net assets of approximately US$2.6 billion as at 31 December 2012. The Directors were aware that Yangzijiang had been exploring opportunities to diversify from its traditional container shipbuilding sector into the offshore oil and gas infrastructure sector for some time and were open to collaborating with partners with expertise, such as Creon.
As a consequence, Yangzijiang invited Creon to participate in the JV Investment to further enhance YZJ Offshore's access to the necessary skills and expertise in rig design, sales and procurement so as to enable YZJ Offshore to grow into a successful and significant business.
First new rig order
In December 2012, Creon was delighted to announce that YZJ Offshore's 40% associate, YZJOE, the entity in which Creon has an indirect 18.58% shareholding, had secured a US$170 million order for a drilling rig to be delivered in mid-2015. The order, to deliver one unit of a Le Tourneau Super 116E Class design self-elevating Mobile Offshore Jack-up Drilling Rig ("First Rig"), is currently on track for delivery, albeit now designed to an even higher specification with an increased order value.
The First Rig is currently being built at one of Yangzijiang's existing yards, with the laying of the keel due to take place later this month.
Long term strategy
Not only does YZJ Offshore have aspirations to become a leading player in the provision of front end engineering, design and management consultancy services for the construction, fabrication and repair of oil and gas marine vessels and platforms, but YZJ Offshore's longer term strategy is to own and construct its own purpose built rig-building yard in China. To that end, in July 2012, YZJOE secured the land rights to approximately 1.6 million square metres of prime shorefront land in Taicang, Jiangsu Province on China's east coast, some 50 miles north of Shanghai ("Land"). The Land is the ideal location for the construction of YZJOE's new rig yard ("New Yard") due to its deep water and absence of bridges en route to the open sea. Since July 2012, Creon can report that the Land is currently being compacted in order to prepare for construction thereon and building of the skidway is expected to get underway shortly.
MGR Resources
In early April 2013, Creon's wholly owned subsidiary, Creon Resources (Asia) PTE Ltd ("Creon Asia") acquired 49% of MGR Resources PTE Ltd ("MGR"). MGR is a wholesale trader of ferrous metals and ore, sourced principally from Africa, India and the Middle East and sold on to buyers in East Asia, including China.
As part of the investment into MGR, Creon also provided MGR with an US$1.95 million three year convertible loan with a coupon of 15%.
Although only a recent investment, Creon can announce that MGR is in advanced negotiations over long term supply contracts from sub-Saharan Africa for iron ore and chromium ore. These contracts, if secured on the current expected terms, will generate significant returns for MGR and accordingly, Creon. Trading in MGR since Creon's investment is in line with MGR's management's expectations and Creon anticipates receiving a return on its investment in the second half of the year.
Other legacy investments
Creon retains its holding of 400,000 unquoted preference shares of £1 each in privately owned Pinnacle Plus Limited ("Pinnacle") made in 2008 ("the Preference Share"). Pleasingly, Pinnacle traded profitably during its latest financial year ended 30 April 2012 and as such, although the Directors continue to account for the Preference Share prudently, having previously made significant provisions against the carrying value of the Preference Share, the Directors now believe that a material proportion, if not all, of the par value of this investment (£0.4 million), together with interest due thereon (£0.14 million), may now be realizable on its due date in September 2013.
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