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Post period end:

• Resignation of Roy Pitchford as Group CEO with effect from 31 December 2017; due to be replaced by Andrew Prelea, the President of Vast`s Romanian subsidiary, who will also be appointed to the Board

Share Issues

CHIEF EXECUTIVE OFFICER`S REPORT

The half year results have been affected by a number of scenarios that have impacted the period both positively and negatively.

The cost of sales increase, from 58% of revenue for the half year to September 2016 to 79% of revenue for the current half year, has been occasioned by additional overburden stripping at the Pickstone-Peerless Gold Mine in Zimbabwe to facilitate sulphide mining and to provide adequate mining areas for future periods. The benefits of this overburden removal will be positively felt during future reporting periods.

The 2017 Annual Report Strategic Report refers to the transaction with Sub-Sahara Goldia Investments (`Sub-Sahara`), which involved the divestment of an effective 25% interest in the Pickstone-Peerless Gold Mine and the Giant Gold Mine in Zimbabwe. This transaction was only completed after 31 March 2017 and accordingly its effect - a loss on disposal of interest in subsidiary loans of $12.538 million - is reflected in these half year statements. Under the arrangements, 49.9% of the parent company`s loans to Canape Investments (Pvt) Limited were sold to Sub-Sahara and these loans are now reflected as a liability in the Group`s accounts, whereas prior to the transaction they cancelled out on consolidation. Further explanation is given in note 10 to the financial statements.

Reagent consumption at the Manaila Polymetallic Mine Zinc flotation circuit was higher than planned as a consequence of inefficiencies in the flotation, thickening and concentrate filtrate sections. The quality of the zinc concentrate improved significantly, but initially, at the expense of the quantity of zinc recovered. The areas of inefficiency in the zinc flotation circuit have been identified and are being addressed. The focus now is to maintain the quality, reduce the costs, and increase the quantity produced.

The mined grades at Manaila have been below expected levels because of funding constraints limiting overburden removal in areas of higher grade. The lower mined grades have consequently constrained the copper and zinc concentrate volumes. The plant throughput increased 49.2% over the six months to March 2017 in terms of tonnes milled and resulted in lower grades. The increase in the milled tonnage however exacerbated the need for increased overburden removal. The cash constraint occurred as a consequence of acquiring 49.9% of Sinarom Mining SRL by accelerating loan repayments to the vendor that would have had to be repaid without the benefit of the additional holding in the Company.

At the time of this transaction it was expected that a strategic investment into Sinarom would have recovered the $2.5m paid for the 49.9% interest, as well as provide funding for evaluating the new prospecting areas in Romania. The absence of the strategic investment funding occasioned by the adoption of a preferred form of funding by way of offtake finance, thus reducing potential dilution, has constrained Vast`s cash resources until the alternative offtake funding is secured.

The weakening of the United States Dollar vis-a-vis the Romania Lei, created an exchange rate gain that assisted in reducing the current period`s overhead expenses compared to the half year to September 2016.

The anticipated offtake funding will enable increased overburden stripping at Manaila, exposing higher grades that will enable increased levels of copper and zinc concentrate production. It will also facilitate construction of the new metallurgical complex at Manaila, enable the reopening of the Baita Plai Polymetallic Mine, and, along with the increased production at the Pickstone-Peerless Gold Mine, will enhance both the profitability and the cash generation capacity of the Company.

With regard to Zimbabwe, notwithstanding the recent political developments, it is anticipated that the profits generated in the Pickstone-Peerless Gold Mine after repayment of the bank overdraft, which was obtained in order to fund the recently constructed sulphide plant, will, unless agreed otherwise with our co-investors, be retained in Zimbabwe in order to finance the development of the Giant Gold Mine.

My stepping off the board and management of the Company facilitates the passing on of the baton to younger management. Andrew Prelea is Romanian and well placed to pursue the Company`s focus there and take Vast to its next level of development. As a consequence of this change, and as mentioned in the announcement of 30 January 2017 dealing with the agreement by Sub-Sahara to make a $4 million loan to the Company repayable after four years, Sub-Sahara has the right to recall the loan on 60 days` notice. Sub-Sahara has duly been asked to confirm that as a result of the change they will not be seeking to exercise this right.

Vast will be focussing on its core operations in both Romania and Zimbabwe, vigorously addressing the opportunities in both jurisdictions and building on its experience and intellectual know-how gained since its transformation to a mining company that begun in 2014.

To this will be added appropriate board and management expertise along with an interactive approach with shareholders to assure a commonality of purpose. The Company will continue with its efforts to be an attractive investment to institutional shareholders as well.

I wish the Company, board and management every success for the future.

Roy Pitchford
Chief Executive Officer

CHAIRMAN`S STATEMENT

In Romania, our focus during the period has been to secure the Baita Plai association licence, to improve the performance of the Manaila Polymetallic Mine and to expand our mineralised footprint in the area proximal to the present open pit mining operation.

At Manaila, as indicated in the September quarterly production report, copper concentrate volumes and quality have improved considerably. Zinc concentrate quality is also meeting off-takers` requirements and volumes are slowly improving. A third revenue stream through a pyrite concentrate, which includes gold and silver, is being ramped up. These improvements will transform this underperforming asset into a cash flow positive mining operation in due course.

Drilling in the adjacent Carlibaba prospecting licence area, which has been undertaken to determine its suitability as a second open pit mine within the Manaila licence area, has delivered the first indications of an extensive and resource rich prospect. We are hopeful that we will be able to declare a JORC compliant Mineral Resource for this asset in the first Quarter of next year and, based on the drill results received to date, and subject to an economic assessment, we believe that Carlibaba will support the development of a second open pit operation at Manaila, in addition to a new metallurgical processing facility on site, which would reduce Manaila opex costs.

The award of Baita Plai association licence has absorbed much executive time over the last year and I am happy to report that significant progress in meeting the authorities` due diligence requirements relating to the award of the Baita Plai association licence has been made in the last few months. We have confidence that a positive outcome in this regard is imminent

We are continuing to evaluate the Piciorul Zimbrului and Magura Neagra prospecting licences, which are potentially valuable additions to our growing portfolio of interests in Romania. Located 74km from Manaila, both licences are attractive polymetallic targets and we look forward to further advancing these assets in 2018 as we look to build our mineralised footprint.

Political developments in Zimbabwe are encouraging. The Board believes that political stability and an improved management of the local economy herald more favourable prospects for the Group`s Zimbabwean assets.

At Pickstone-Peerless, the new sulphide plant has been brought on stream and is producing significantly higher volumes of gold, further enhancing the its cash flow generative capacity. The evaluation of the proximal Giant Gold Mine licence area has also commenced. This will enhance further the value of the Group,s Zimbabwe gold assets.

Prices for the Group`s key commodities: copper, zinc and gold are holding up well. A key driver for these prices is a stronger global economy in part arising from the continued momentum of China`s economic growth and in part the prospect of electric vehicles.

Finally, Roy Pitchford has resigned from the board with effect from 31 December 2017. I would like to thank Roy for all his work on behalf of the Company and wish him well for the future.

Brian Moritz
Chairman

For further information visit www.vastresourcesplc.com or please contact:

Consolidated statement of comprehensive income
for the six months ended 30 September 2017

Consolidated statement of changes in equity
for the six months ended 30 September 2017

Consolidated statement of financial position
As at 30 September 2017

Consolidated statement of cash flow
for the six months ended 30 September 2017

Interim report notes

1 Interim Report
The condensed interim financial statements, which are unaudited, are for the six months ended 30 September 2017 and consolidate the financial statements of the Company and all its subsidiaries. The statements are presented in United States Dollars.

The financial information set out in these condensed interim financial statements does not constitute statutory accounts as defined in Section 434(3) of the Companies Act 2006. The condensed interim financial statements should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 March 2017 which have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union ("IFRSs"). The Auditor`s report on those financial statements was unqualified and did not contain a statement under s.498(2) or s.498(3) of the Companies Act 2006.

While the Auditors` report for the year ended 31 March 2017 was unqualified, it did include an emphasis of matter concerning going concern, to which the Auditors drew attention by way of emphasis without qualifying their report. Full details of these comments are contained in the report of the Auditors on Pages 13 and 14 on the annual financial statements for the year ended 31 March 2017, released elsewhere on this website on 22 September 2017.

The accounts for the period have been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" ("IAS 34") and the accounting policies are consistent with those of the annual financial statements for the year ended 31 March 2017, unless otherwise stated, and those envisaged for the financial statements for the year ended 31 March 2018.

After review of the Group`s operations and of the funding opportunities open to the Group, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the Directors continue to adopt the going concern basis in preparing the unaudited condensed interim financial statements.
This interim report was approved by the Directors on 21 December 2017.

2 Segmental analysis

3 Loss per share

4 Property, Plant and equipment

5 Inventory

6 Receivables

7 Loans and borrowings

8 Payables

9 Provisions

10 Financing arrangement
On 29 May 2017 the Company completed a financing arrangement with SSCG Africa Holdings Ltd originally announced on 30 January 2017. Under this arrangement the Company received gross proceeds of US$8 million, principally to advance the Company`s core activities in Romania. This comprised a US$4 million loan, repayable on 30 January 2021 and a US$4 million payment in respect of a 49.99% interest in the Company`s principal Zimbabwean assets, consisting its 50% shareholding in Dallaglio Investments (Private) Limited, the holding company for the Pickstone Peerless Gold Mine, and the assignment of 49.9% of the intercompany loan owing by Canape Investments (Private) Limited to Vast Resources Plc.

The assignment of the intercompany loan, with a book value of $14.838 million, for consideration of $2.3 million (included in the $4.0 million referred to above), gave rise to the recognition of a loss on disposal of $12.538 million as reported in the Statement of Comprehensive Income

11 Acquisition of remaining shareholding in Sinarom Mining Group SRL
On 22 March 2017 the Company announced it had concluded an agreement to acquire the remaining 49.9% interest in Sinarom Mining Group SRL ("Sinarom"). The purchase consideration for the shares and loan accounts comprising the assets acquired was a total of $2.303 million and, all conditions precedent being met, the acquisition was concluded on 19 July 2017.

12 Events after the reporting date
Baita Plai licence
On 18 October 2017 the Company announced that its Romanian subsidiary, African Consolidated Resources SRL, had been advised in writing that a board meeting of Baita SA had concluded on 16 October requesting its shareholder - the Ministry of Economy - to approve the association on the licence for the exploitation and processing of the polymetallic ore from the Baita Bihor SA exploitation perimeter, which contains the Vast Resources 80% owned Subsidiary AFCR Polymetallic Mining assets in Baita Plai, in compliance with all the current legal provisions.

Management
Brian Basham did not offer himself for re-election as a director of the Company at the Annual General Meeting held on 20 October 2017.

On 18 December 2017 Roy Pitchford announced his retirement as Group CEO with effect from 31 December 2017. The Company announced that Andrew Prelea will be appointed to the Board and CEO position to replace him.

Fund raising
Placing and open offer to shareholders
On 21 November the Company announced the completion of a placing of 190,476,190 ordinary 0.1p shares at an issue price of 0.525p per share. The proceeds of the issue were $1.32 million (£1.0 million) and the shares were issued on 5 December 2017.

On 24 November the Company announced that it was making an open offer to shareholders of an entitlement to subscribe for 1 share for each 20 shares held, at an issue price of 0.525p per share. On 12 December the Company announced that this offer had been over-subscribed by a factor of 34.5%; the offer raised £1.23 million (approx. $1.64 million) . As a result of this offer 234,261,876 new ordinary 0.1p shares will be issued.

Exercise of warrants

Change in joint broker
On 21 November the Company announced the appointment of SVS Securities Plc as Joint Broker.

**ENDS**

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This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.

The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Vast Resources plc via GlobeNewswire
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