Group Development Update

Deutsche Rohstoff AG releases the following overview of the development of the business activities currently pursued at Group level and in its individual corporate divisions.

Group’s net 2011 profit expected to exceed EUR 10m

Heidelberg, Germany. Deutsche Rohstoff AG releases the following overview of the development of the business activities currently pursued at Group level and in its individual corporate divisions.

I. Gold

Deutsche Rohstoff Australia (100% interest): The successful start of gold production in Georgetown, Australia, in the first quarter 2011 has led to an output of 4,000 ounces of gold and a turnover of AUD 5.1m (approx. EUR 3.8m). The goal for the year 2011 has been fixed at 20,000 ounces (see press release of 18 April 2011) and total sales of AUD 28m (approx. EUR 20.7m). Preparations for mining a third deposit named “Jubilee Plunger” are currently under way. Besides the deposits “Red Dam” and “Electric Light”, Jubilee Plunger will be mined as from July/August this year.

Mongolia: (50%): DRAG intends to commence an alluvial gold production in Mongolia later this summer. It is planned to mine two licence areas together with the partner T&T in 2011 and 2012 and produce the so far explored resource of 12.000 ounces. For 2011, a production of roughly 5.000 ounces is envisaged. Following deduction of all operative expenses, the contracting parties will share the proceeds on a 50:50 basis (see press release of 2 May 2011).

II. Oil and Gas

Rhein Petroleum GmbH, Germany (25%): A majority stake was sold to Tulip Oil Holding BV in early January. That transaction provided Deutsche Rohstoff AG with a profit of EUR 4.8m which will be recorded in the company’s books largely tax-free. Should the agreed milestones be achieved, the company may expect further payments (fully affecting its profit situation) in the amount of at least EUR 2.5m in the months to come.

Directly after conclusion of the purchase agreement Tulip Oil Holding BV assumed the management of Rhein Petroleum GmbH. Preparations for the 3D seismic survey in the Rhine Valley and Bavarian licensed areas are being made and expected for implementation in September 2011. Deutsche Rohstoff AG continues to be involved in the management of the company. Some management tasks were taken over within the framework of a service contract.

Tekton Energy, Denver, Colorado, USA (57%): In February the Management in Denver moved into its own office premises to assume its operations. Comprehensive data have already been screened and some projects meeting our criteria and located in the US and Europe have so far been identified. We assume that we will realise at least one acquisition in the course of the year (see press release of 24 January 2011).

III. High-tech Metals

Tungsten-Molybdenum/Wolfram Camp (85%): The due diligence process for this tungsten mine situated in Queensland, Australia, is still in progress. A final decision on acquiring the mine will be taken by 10 May (see press release of 6 April 2011).

Tin/Geyer, Gottesberg, Germany (100%): A trial pit is slated for July/August 2011 in the Geyer licensed area to extract fresh ore for processing tests. The main operational plan for this project has already been submitted. Also, we are currently considering spinning off the two licences for the Geyer and Gottesberg repositories, both located in Saxony and holding tin as their primary natural resource, to set up a company of its own and to manage its future development together with investors. The price for tin has reached new all-time highs in the last months. Due to the limited supply context, market analysts do not expect this situation to ease in the years to come.

Rare earth elements/Storkwitz, Germany (100%): Negotiations with a potential partner who could ensure the future funding requirements and development of the project are still underway. We are currently examining additional approaches to expand our activities in the rare earth elements sector. Further information on this topic is expected to be published in the second half of the current year.

Lead-Zinc/Devonian Metals, Canada (47.2%): We assume that we will continue to implement this project in Wrigley, Canada, within the framework of the farm-in agreement concluded with Glencore. We reckon that a slightly adjusted contract will be entered into at short notice. An update of the NI 43-101 expert opinion is supposed to be published by the end of the second 2011 quarter. This year’s drilling schedule is expected to start at the end of June, as well.

Nickel/Kiefernberg, Germany (100%): A pre-feasibility study on the processing of nickel laterite ores showed that in view of the current price level cost-efficient mining may not be expected. Consequently, we will not continue to pursue this project. The anyway minor residual book value totalling EUR 22,600 will be fully depreciated in the 2010 financial statements.

Deutsche Rohstoff AG

2010 Financial Statements/1st quarter 2011 (provisional/unaudited): Publication of the finalised 2010 financial statements is slated for mid-June 2011. Based on the provisional figures, the after-tax result is balanced (Q1/2011: EUR 4.9m). The Group’s equity increased to approx. EUR 15.3m at the end of the year (31 March 2011: EUR 20.3m). Cash and equivalents amounted to EUR 3.4m (31 March 2011: EUR 7.1m). The liabilities totalled EUR 4.3m (31 March 2011: EUR 2.07m).

Deutsche Rohstoff Group

Publication of consolidated financial statements under German GAAP is projected for the first time upon preparation of the Group’s 2011 semi-annual report. Currently, the consolidation scope will encompass Deutsche Rohstoff AG, Deutsche Rohstoff Australia, Deutsche Rohstoff USA, including Tekton Energy, as well as Wolfram Camp Pty Ltd., if appropriate. We expect the Group to recognise a net result of at least EUR 10m or EUR 2.27 per share over the complete 2011 financial year.

Heidelberg, Germany, 3 May 2011

Entry Standard-listed Deutsche Rohstoff AG is setting up a new commodity producer. The Group’s priority areas include gold, oil, gas and so-called ‘high-tech metals’ such as tungsten, tin and rare earth elements. All projects are located in politically stable countries, whereby special focus is placed on Germany. The Group’s business model is based upon (re)developing deposits which were explored in depth in the past. First production activities were taken up in January 2011 in Georgetown, Australia. For further information about Deutsche Rohstoff AG log on to www.rohstoff.de.

Contact:

Dr. Thomas Gutschlag
Deutsche Rohstoff AG
Friedrich-Ebert-Anlage 24, 69117 Heidelberg
Tel. (06221) 87 100-0
Fax (06221) 87 100-22
info@rohstoff.de
www.rohstoff.de

Horst Koppelstätter
Koppelstätter Kommunikation GmbH
Friedrichstraße 2, 76530 Baden-Baden
Tel. (07221) 97372 11
Fax (07221) 97372 22
hok@koppelstaetter-kommunikation.de

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