SUNKAR RESOURCES PLC

Sunkar Resources Plc, a UK registered company that aims to be an integrated phosphate fertiliser manufacturer with an asset base in the Republic of Kazakhstan, today announces the commencement of dealings in its shares on AIM following a placing at 120p per share to raise a total of £33.6 million before expenses.

The Company has a 90% interest in Temir-Service LLP (Temir), a limited liability partnership established under the laws of the Republic of Kazakhstan. On 14 December 2004, Temir was announced as the winner of a tender to mine phosphates on the Chilisai deposit by the Ministry of Energy and Mineral Resources in Kazakhstan.

The Chilisai phosphate deposit in NW Kazakhstan is one of the largest known deposits in the Former Soviet Union with a resource of some 800 million tonnes of phosphate containing ore in the Company’s licence area. The ore lies in a shallow sedimentary layer which is expected to be extracted at low cost and the Competent Persons Report set out in the admission document indicates that the resources within the Licence Area are sufficient for a 56 year mine life, with a mining rate of 10 million tonnes of ore mined per year.

Other key advantages of the project include proximity to low cost sulphur from the North Caspian oil and gas operations as well as extensive existing infrastructure with rail links to its key future markets of China, Russia and Central Asia FSU countries. The Company therefore believes that the highest value added opportunity lies in developing an integrated phosphate fertiliser manufacturing facility at the deposit site.

Following Admission, the Group intends to prepare a final Bankable Feasibility Study in relation to the project and follow the planned work programme under the Company’s subsoil use contract. The Company envisages production of phosphate concentrate as early as this year.

Serikjan Utegen, CEO of Sunkar Resources commented: “We are delighted that the Company’s shares commenced trading on AIM. This IPO is an important milestone in the development of Sunkar and it is a clear indicator of investors’ faith in the attractiveness of our asset base and Kazakhstan.  We look forward to developing the mine during the course of the year and are determined to develop Sunkar into one of the region’s leading phosphate production companies.”