Interim Results for the six month period ended 30 September 2010

12/20/2010, 8:24 AM (Source: GlobeNewswire)
Toledo Mining Corporation Plc
Interim Results for the six month period ended 30 September 2010


CONTENTS Page





Chairman's Statement 2-7


Independent Review Report 8-9


Condensed Consolidated Interim Income Statement 10


Condensed Consolidated Interim Statement of Comprehensive Income 11


Condensed Consolidated Statement of Financial Position 12-13


Condensed Consolidated Statement of Changes in Equity 14-16


Condensed Consolidated Interim Statement of Cash Flows 17


Notes to the Condensed Financial Statements 18-25




CHAIRMAN'S STATEMENT

Recent months have proven to be  challenging  for the Company in pursuit of its
aim to realise the full commercial potential of its substantial nickel resource
base in the Philippines.
For much of the year there has been an expectation that Toledo's future will,
through a strategic alliance and equity injection, be closely aligned to that of
the Jinchuan Group, China's ambitious and dominant refined nickel producer.
Whilst there is a continuing dialogue between the two parties, it has not proved
possible to agree the detail of the proposed strategic alliance and there is now
no expectation of Jinchuan subscribing for shares in Toledo.
As the year closed to an end, the Company received a formal approach from
another party, which was not Jinchuan. As stated in the announcement of 9th
December, the approach "may or may not lead to an offer being made for the
entire issued share capital of the Company." Toledo has responded to the third
party seeking information from which the Company can make an informed judgement
as to whether or not to enter into detailed discussions.
Meanwhile, and with clearance from the Takeover Panel, Toledo is discussing with
its advisers a share placement to provide capital for the Company to fund the
2011 work programme essential to pursuing its objective of being a competitive
miner and processor of nickel ore.

Financial
For the six months to 30 September 2010, the Group recorded an attributable loss
for the period of £1,318,910 after accounting for foreign exchange losses of
£654,177. This compared to an attributable loss of £1,825,759 for the comparable
2009 period. The foreign exchange losses are primarily due to the currency
translation of the US Dollar denominated loans advanced by Toledo to its
Philippine partners.
During the period, the Berong mine  remained on care and maintenance and there
were no further sales from stockpiled ore. Reported revenue of £270,186 for the
period (£218,271 in 2009) by Toledo was derived from the provision of
consultancy services to Berong Nickel Corporation ("BNC") and Ipilan Nickel
Corporation ("INC"). As a result of continuing cost controls there was a further
reduction in the Company's administrative expenses between the two periods, to
£666,899  from £765,546.
After accounting for attributable losses, total assets as at 30 September 2010
had decreased to £28,576,260 (from £29,977,178 at 30 September 2009), of which
loans to Philippine associate companies amounted to £15,601,317, an increase of
£1,149,683 in the 6 month period.
The loans to Philippine partners include a drawdown facility granted to Atlas
Consolidated Mining and Development Corporation ("Atlas") to fund its share of
expenditures at Berong and a similar facility to Brooks Nickel Corporation
("Brooks") to finance the Ipilan project. In March 2010, Toledo agreed an
increase in the loan facility to Brooks from US$8 million to US$10 million and
in July 2010, Toledo agreed an extension of one year with Atlas for repayment of
drawdown's of its US$5 million facility. Each drawdown is now repayable after
four years and carries interest of 10% per annum. The loans are secured against
future project cash flows.
As at 30 November 2010, Toledo had cash holdings of £1.41 million (US$2.19
million) and its associate companies had a further US$0.41 million.

Operational
We entered 2010 with three main objectives to further the development of the
Philippine nickel interests in which we have a significant equity interest and
which we manage on behalf of our venture partners; Berong located on the west
coast and Ipilan on the east coast of the island of Palawan

* to prove up additional tonnage of ore at Berong sufficient to support a
20,000 tonne per annum contained nickel processing plant
* to complete and submit the major studies required by the various authorities
as a pre-condition for gaining approval to mine the Ipilan resource,
* to form a strategic alliance with an industry partner with the capability to
help develop and add value to the Berong and Ipilan resources.

Berong
In March, we commenced drilling the Moorsom prospect which lies within a 14
kilometre radius of the Berong mine. Previous work undertaken by Atlas
 indicated that whilst not the most prospective area, Moorsom offered good
exploration potential.
The area that is believed to offer the best potential is the coastal portion of
the Long Point prospect, located some 20 kilometres to the north east of the
Berong mine. Currently this area lies within an Environmental Critical Area
Network ("ECAN"), within which exploration is not permitted. The Atlas data
concluded that the whole Long Point area (within and outside the ECAN,) has the
potential to host in excess of 50 million tonnes with an average nickel grade
exceeding 1.2%.
In June this year, the municipal council at Long Point signed a resolution to
request the Palawan Council for Sustainable Development ("PCSD") to redraw the
ECAN boundary, thereby opening the way for exploration of the most prospective
area. One approval is granted, there will be several more hurdles to overcome
before BNC can start drilling. This is now targeted to commence around the
middle of 2011.
To illustrate just how long it can sometimes take to obtain permission to
explore, the application to explore Moorsom was submitted in August 2007 and was
only approved in February 2010, nearly three years later. Much of the approval
process entails working with the local communities whose support is essential to
obtaining the necessary permits.
Early drill results from the Moorsom exploration programme offered encouragement
that the area might host ore with a similar nickel grade to that of the Berong
Project (1.55% nickel at a 1% nickel grade cut off). However, as more assay
results became available, it was apparent that whilst the tonnage of ore was
much as had been targeted, the average grade, at 0.9% nickel, was  lower than
expected.  Through to September, when the drilling campaign at  Moorsom was
completed, 624 holes had been drilled for a total of 5259 metres. Although
interpretation of all the assays will not be available until into the first
quarter of 2011, sufficient information is already available to suggest a
resource of some 25 million dry metric tonnes grading 0.9% nickel.
One positive result of the assays is the high iron content of the limonite,
averaging over 45%Fe. Similar grade ore, being used as an iron ore substitute,
has formed a significant part of the boom in Chinese nickel ore imports this
year. We are currently assessing the commercial relevance to the Moorsom
results.
Throughout the year BNC has continued and continues to pursue its claim against
Queensland Nickel Pty Limited (QNI) for its early termination of a five year ore
supply contract. For obvious reasons, the details of BNC's claim must remain
confidential.
Management of BNC has been complicated by the frequent inability  of Toledo's
venture partners to make timely contributions to BNC's running costs and despite
budget approval by the BNC board upon which all venture partners are
represented.
As at the beginning of December 2010, European Nickel Plc ("ENK") has failed to
meet US$579,721 of its 18.7 % share of cash calls by BNC, whilst Atlas has yet
to meet US$139,877 of its 25.2% share. Atlas's contributions are no more than a
few months overdue. In contrast, ENK's unpaid cash calls date back to 2009.
Because of this, Toledo has, regrettably, had no option but to exercise its
rights under the terms of the Berong Venture Agreement and serve a notice of
default on ENK. Toledo's 56.1% contribution to BNC cash calls has effectively
been funding ENK's 18.7% of BNC expenditures. Quite clearly this situation
cannot continue.
Good community relations are essential to the ability to restart production at
Berong at short notice. Accordingly, throughout the year work has continued on
infrastructure maintenance and environmental support. An example of the latter
has been BNC's "Adopt a Mountain Program" which rehabilitates land subjected to
slash and burn farming methods adjacent to the Berong site. BNC's environmental
officer received a national award for this ground breaking initiative which
continues Berong's record of setting the benchmark for good corporate
citizenship.
Ipilan

As first reported in November 2008, Snowden consultants estimated a JORC
compliant resource for Ipilan of 30.59 million dry tonnes with an average grade
of 1.36% nickel at a 1% nickel cut off and 44.13 million tonnes grading 1.19%
nickel at a 0% nickel cut off. These estimates were based on a then incomplete
drill programme.
In June of this year an internal update, compliant to the Philippine equivalent
of JORC, estimated a total tonnage of 53 million tonnes grading 1.1% nickel at a
0% cut off; 20%  higher than the Snowden estimate.
The most prospective part of the Ipilan resource abuts the Infanta prospect of
MacroAsia Corporation, the Philippine logistics group, and there is a continuing
dialogue with MacroAsia to see whether and under what circumstances the two
deposits could be developed as one.
Having, during the year, obtained local, municipal and provincial endorsement
for a mining operation, we have concentrated our efforts on preparing all the
major documents required to obtain approval to mine the Ipilan resource. These
are:

* The Environmental Compliance Certificate ("ECC") which has been submitted to
the Department of Environment and Natural Resources ("DENR")
* The Strategic Environmental Plan ("SEP") which requires the approval of the
PCSD and without which the ECC is unlikely to be issued. The next meeting of
the PCSD is scheduled for December 22nd when the Iplan SEP is expected to be
on the agenda.
* The Declaration of Project Mining Feasibility ("DMF"). Similar to a pre-
feasibility study, this document has been completed and submitted to the
Minerals and Geosciences Bureau ("MGB") for review along with a completed
exploration and geologic report.

There are several ancillary supporting documents which must be submitted to the
MGB and DENR, all of which are in hand.
Although, given the political dynamic of mining on the environmentally sensitive
east coast of Palawan,  there can be no absolute certainty that mining will be
approved, we are cautiously optimistic that all necessary approvals for the
commencement of a mining operation  will have been received by mid year.
Recognising that Ipilan's average grade is not presently sufficiently attractive
to Chinese buyers to make for a profitable mining operation, the Company is
presently exploring sintering as a low cost alternative to upgrading Ipilan ore
for consumption in ferronickel smelters. A study and test programme has been
commissioned from the MGB with results expected during the first quarter of
2011.
Jinchuan Group

Throughout 2009, the Company continued discussions with the Jiangxi Rare Earth
and Tungsten Metals Group ("JXTC") with whom the Company had signed Memoranda of
Understanding ("MOU") for the development of both Berong and Ipilan.
However, as the year progressed it became increasingly apparent that JXTC was
not in a position to accelerate the translation of the MOU into legally binding
agreements. Consequently, Toledo accepted an approach from Jinchuan Group, the
dominant producer of refined nickel in China, to explore possible collaboration.
These talks culminated in the signing, in July 2010, of an MOU with the intent
of forming a strategic alliance to mine and process the Palawan resources. An
integral part of the alliance was the subscription by Jinchuan for new shares in
Toledo representing 29.9% of the enlarged share capital at a price of 42 pence
per share and conditional on significant representation on the Toledo board.
Over the course of the ensuing four and a half month's detailed discussions took
place. However, despite much goodwill on both sides, it was not possible to
reach agreement between the two parties on substantive corporate and commercial
issues. Despite this disappointing outcome, Toledo continues to discuss with
Jinchuan how best the Company can contribute to Jinchuan's ambitious growth
plans in the nickel sector and with particular reference to its future ore
requirements.
Nickel Market

From US$19,000 per tonne at the beginning of the year, the LME cash nickel price
rose to a peak of over US$27,000 in April before retreating to US$18,000 in
June. Since then the nickel price has been on a steady upward trend and by mid
December was trading over US$24,000 per tonne.

There can be little doubt that whilst the weakness of the US dollar has been a
contributing factor, continued high growth in Chinese nickel consumption has
been the single most important driver of the nickel price. This year consumption
growth is widely predicted to exceed 12%, with domestic nickel production (of
refined nickel, ferronickel and nickel pig iron) growing even more strongly.
By end October, China had imported over 19 million tonnes of lateric nickel ore,
a near 50% increase on the previous year, a substantial part of which came from
the Philippines. That this growth to new record levels has not been reflected in
sales from Berong has been very frustrating. However the ore sourced from the
Philippines has been purchased more as an iron ore substitute than for its
nickel content, typically grading less than 1% nickel but over 45% iron; much
different to Berong's average grade.
Although the reported price for Berong type material shipped to China has been
rising to where it now exceeds, by a small margin, cash costs when the mine
closed, without a long term supply contract this would not justify reopening the
mine. Marketing effort continues to focus both on securing a long term sales
contract and disposing of the remaining 160,000 tonne stockpile.

Moving Forward
Despite the unforeseen setbacks, Toledo remains totally committed to its
objective of being, together with its Philippine partners, a significant miner
and processor of nickel ore.
In pursuit of this objective, the Company is fortunate to have the support of
its two largest shareholders - Daintree, whose co-owner and Toledo director,
Jason Cheng, is also Managing Partner of a private equity group focused on the
resource sector and Fevamotinico SARL, a company controlled by Kostyantin
Zhevago. Mr. Zhevago manages a diverse range of businesses including Ferrexpo; a
Ukraine based major miner and exporter of iron ore pellets and a developing
ferronickel business in Macedonia.
Both shareholders have signalled their willingness, in principle, to support any
funding initiative by Toledo.
At a local level, the work programme for 2011 will focus upon:

* maintaining Berong in a state of readiness for a speedy resumption of ore
shipments
* seeking sales contracts for Berong and Ipilan ore
* completing the analysis of the Moorsom exploration programme and publishing
the results
* obtaining approval to explore the most prospective area of Long Point for
the commencement of drilling
* obtaining approval to mine Ipilan
* discussing with MacroAsia developing shared infrastructure (roads, storage,
loading facilities etc) for the development of their adjacent deposit and
Ipilan, either separately or as one mine.

We are and will continue to investigate alternative ways to participate in those
segments of the nickel market where there is the fastest growing demand for ore.
In practical terms this means establishing whether we can access a sufficient
quantity of higher,(1.8%), nickel grade ore at Berong to serve the lucrative
ferronickel market; assessing the viability of mining and shipping low
nickel/high iron ore from Moorsom; and reviewing the results of the sintering
test work to establish whether this is a way forward.
As disappointed as the Company has been with its past negotiations with
potential strategic partners with the industry expertise and apparent financial
capability to accelerate the development of the nickel resource base, we
continue to believe that securing such a partner is a prerequisite to the
Company's participation in ore processing requiring many hundreds of million
dollars of capital investment.
Meanwhile, we have continued the vitally important work of understanding the
totality of our nickel resources, how best to mine and process them and on
obtaining the permits which make mining possible. The progress made to date,
when combined with the improvement in the nickel price, suggests that 2011 will
prove to be a much more productive year for Toledo.
Finally, the Board of Toledo would like  to thank our management and staff in
the Philippines for their tremendous effort in performing their "day job" under
tight financial constraints whilst also responding without complaint to the
myriad of demands made upon them during the negotiations with Jinchuan.
Reg Eccles
Chairman
Toledo Mining Corporation PLC
Date 20 December 2010


INDEPENDENT REVIEW REPORT TO TOLEDO MINING CORPORATION PLC
Introduction
We have been engaged by the Company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30
September 2010 which comprises the Condensed Consolidated Interim Income
Statement, the Condensed Consolidated  Interim Statement of Comprehensive
Income, the Condensed  Consolidated Statement of Financial Position, the
Condensed Consolidated Statement of Changes in Equity, the Condensed
Consolidated Interim Statement of Cash Flows and the related notes numbered 1 to
9. We have read the other information contained in the half-yearly financial
report and considered whether it contains any apparent misstatements or material
inconsistencies with the information in the condensed set of financial
statements.
The report is made solely to the Company in accordance with guidance contained
in International Standard on Review Engagements (UK and Ireland) 2410, 'Review
of Interim Financial Information Performed by the Independent Auditor of the
Entity' issued by the Auditing Practices Board. To the fullest extent permitted
by law, we do not accept or assume responsibility to anyone other than the
Company, for our work, for this report, or for the conclusions we have formed.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved
by, the directors. The AIM Rules require that the accounting policies and
presentation applied to the interim figures should be consistent with those
applied in preparing the preceding annual accounts except where any changes, and
the reasons for them, are disclosed.
As disclosed in note 2, the condensed consolidated interim financial statements
included in this half-yearly financial report has been prepared in accordance
with International Accounting Standard 34, "Interim Financial Reporting," as
adopted by the European Union. The annual financial statements of the group have
been  prepared in accordance with IFRSs as adopted by the European Union.
Our Responsibility
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review.

Scope of Review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information
Performed by the Independent Auditor of the Entity' issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly, we
do not express an audit opinion.
INDEPENDENT REVIEW REPORT TO TOLEDO MINING CORPORATION PLC (continued)
Conclusion
Based on  our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 30 September 2010 is not prepared, in
all material respects, in accordance with International Accounting Standard 34
as adopted by the European Union.
Sawin & Edwards
Chartered Accountants
15 Southampton Place
WC1A 2AJ
20 December 2010
CONDENSED CONSOLIDATED INTERIM INCOME STATEMENT
Six month period ended 30 September 2010

+---------------------------------+----+------------+------------+-----------+
| | | Six| | |
| | |Monthsperiod| Six months| |
| | | ended|period ended| Year ended|
| | |30 September|30 September| 31 March|
| | | 2010| 2009| 2010|
| | | (Unaudited)| (Unaudited)| (Audited)|
|  |Note| £| £| £|
+---------------------------------+----+------------+------------+-----------+
|Revenue | | 270,186| 218,271| 362,098|
+---------------------------------+----+------------+------------+-----------+
+---------------------------------+----+------------+------------+-----------+
|Gross profit | | 270,186| 218,271| 362,098|
+---------------------------------+----+------------+------------+-----------+
|Administrative expenses | | (970,572)| (765,546)|(1,567,371)|
+---------------------------------+----+------------+------------+-----------+
|Foreign exchange (losses) / gains| | (654,177)| (1,455,541)| (693,255)|
+---------------------------------+----+------------+------------+-----------+
|Other operating income | | 41,672| 41,400| 92,711|
+---------------------------------+----+------------+------------+-----------+
|Share of results of associates | | (536,839)| (396,126)| (863,997)|
+---------------------------------+----+------------+------------+-----------+
|(Loss) / profit from operations | | (1,849,730)| (2,357,542)|(2,669,814)|
+---------------------------------+----+------------+------------+-----------+
+---------------------------------+----+------------+------------+-----------+
|Investment income | | 530,820| 333,683| 686,991|
+---------------------------------+----+------------+------------+-----------+
| | | ________| _________| ________|
+---------------------------------+----+------------+------------+-----------+
|(Loss) / profit before taxation | | (1,318,910)| (2,023,859)|(1,982,823)|
+---------------------------------+----+------------+------------+-----------+
|Income tax expense | | -| 198,100| 198,100|
+---------------------------------+----+------------+------------+-----------+
| | | _________| _________| ________|
+---------------------------------+----+------------+------------+-----------+
|Loss for the period | | (1,318,910)| (1,825,759)|(1,784,723)|
+---------------------------------+----+------------+------------+-----------+
|  | | | | |
+---------------------------------+----+------------+------------+-----------+
|Attributable to: | | | | |
+---------------------------------+----+------------+------------+-----------+
|Equity holders of the parent | | (1,302,721)| (1,843,031)|(1,772,838)|
+---------------------------------+----+------------+------------+-----------+
|Minority interest | | (16,189)| 17,272| (11,885)|
+---------------------------------+----+------------+------------+-----------+
|  | | (1,318,910)| (1,825,759)|(1,784,723)|
+---------------------------------+----+------------+------------+-----------+
+---------------------------------+----+------------+------------+-----------+
|(Loss) / earnings per share | | | | |
|(pence) - including share of | | | | |
|associates results | 4 | | | |
+---------------------------------+----+------------+------------+-----------+
|Basic | | (3.14)| (5.53)| (4.74)|
+---------------------------------+----+------------+------------+-----------+
|Diluted | | (3.08)| (5.53)| (4.74)|
+---------------------------------+----+------------+------------+-----------+
|  | | | | |
+---------------------------------+----+------------+------------+-----------+
|(Loss) / earnings per share | | | | |
|(pence) - excluding share of | | | | |
|associates results | 4 | | | |
+---------------------------------+----+------------+------------+-----------+
|Basic | | (1.84)| (4.34)| (2.43)|
+---------------------------------+----+------------+------------+-----------+
|Diluted | | (1.81)| (4.34)| (2.43)|
+---------------------------------+----+------------+------------+-----------+
The Group has no recognised gains or losses other than the results for the
periods as set out above.



CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME
Six month period ended 30 September 2010

+----------------------------------+----+------------+------------+-----------+
| | | Six months| Six months| |
| | |period ended|period ended| Year ended|
| | |30 September|30 September| 31 March|
| | | 2010| 2009| 2010|
| | | (Unaudited)| (Unaudited)| (Audited)|
| |Note| £| £| £|
+----------------------------------+----+------------+------------+-----------+
|Loss for the period | | (1,318,910)| (1,825,759)|(1,784,723)|
+----------------------------------+----+------------+------------+-----------+
|Foreign currency translation | | | | |
|differences for foreign operations| | (40,714)| (106,049)| (57,799)|
+----------------------------------+----+------------+------------+-----------+
|Other comprehensive expense for | | | | |
|the period | | (40,714)| (106,049)| (57,799)|
+----------------------------------+----+------------+------------+-----------+
|Total comprehensive expense for | | | | |
|the year | | (1,359,624)| (1,931,808)|(1,842,522)|
+----------------------------------+----+------------+------------+-----------+
|Attributable to: | | | | |
+----------------------------------+----+------------+------------+-----------+
|Equity holders of the parent | | (1,325,562)| (1,902,525)|(1,805,263)|
+----------------------------------+----+------------+------------+-----------+
|Minority interests | | (34,062)| (29,283)| (37,259)|
+----------------------------------+----+------------+------------+-----------+
|  | | (1,359,624)| (1,931,808)|(1,842,522)|
+----------------------------------+----+------------+------------+-----------+



CONDENDED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 September 2010

+-----------------------------+----+------------+------------+----------+
| | | As at| As at| As at|
| | |30 September|30 September| 31 March|
| | | 2010| 2009| 2010|
| | | (Unaudited)| (Unaudited)| (Audited)|
|  |Note| £| £| £|
+-----------------------------+----+------------+------------+----------+
|  | |  | | |
+-----------------------------+----+------------+------------+----------+
|ASSETS | |  | | |
+-----------------------------+----+------------+------------+----------+
|  | |  | | |
+-----------------------------+----+------------+------------+----------+
|Non Current Assets | |  | | |
+-----------------------------+----+------------+------------+----------+
|Property, plant and equipment| | 423| 896| 281|
+-----------------------------+----+------------+------------+----------+
|Investments in associated | | | | |
|undertakings | | 9,872,871| 10,877,582|10,409,711|
+-----------------------------+----+------------+------------+----------+
|Loans and receivables | | 15,601,317| 13,062,203|14,451,634|
+-----------------------------+----+------------+------------+----------+
|Trade and other receivables | | 40,036| -| 40,036|
+-----------------------------+----+------------+------------+----------+
|Taxation | |     -| 198,100|     -|
+-----------------------------+----+------------+------------+----------+
|Total non current assets | | 25,514,647| 24,138,781|24,901,662|
+-----------------------------+----+------------+------------+----------+
+-----------------------------+----+------------+------------+----------+
|  | | | | |
+-----------------------------+----+------------+------------+----------+
|Current Assets | | | | |
+-----------------------------+----+------------+------------+----------+
|Trade and other receivables | | 882,443| 999,315| 901,623|
+-----------------------------+----+------------+------------+----------+
|Taxation | | 255,120| 10,157| 211,512|
+-----------------------------+----+------------+------------+----------+
|Cash and cash equivalents | | 1,924,050| 4,828,925| 3,916,603|
+-----------------------------+----+------------+------------+----------+
|Total current assets | | 3,061,613| 5,838,397| 5,029,738|
+-----------------------------+----+------------+------------+----------+
| | | _________| _________| _________|
+-----------------------------+----+------------+------------+----------+
|Total Assets | | 28,576,260| 29,977,178|29,931,400|
+-----------------------------+----+------------+------------+----------+
|  | | | | |
+-----------------------------+----+------------+------------+----------+
|  | | | | |
+-----------------------------+----+------------+------------+----------+
|EQUITY AND LIABILITIES | | | | |
+-----------------------------+----+------------+------------+----------+
|  | | | | |
+-----------------------------+----+------------+------------+----------+
|Current Liabilities | | | | |
+-----------------------------+----+------------+------------+----------+
|Trade and other payables | | 664,445| 624,702| 682,392|
+-----------------------------+----+------------+------------+----------+
|Taxation | | 6,181| 209,413| 0|
+-----------------------------+----+------------+------------+----------+
| | | ______| ______| _______|
+-----------------------------+----+------------+------------+----------+
|Total current liabilities | | 670,626| 834,115| 682,392|
+-----------------------------+----+------------+------------+----------+
|  | | | | |
+-----------------------------+----+------------+------------+----------+
|  | | | | |
+-----------------------------+----+------------+------------+----------+
|  | | _______| _______| _______|
+-----------------------------+----+------------+------------+----------+
|Total Liabilities | | 670,626| 834,115| 682,392|
+-----------------------------+----+------------+------------+----------+
| | |  | | |
+-----------------------------+----+------------+------------+----------+
|  | |  | | |
+-----------------------------+----+------------+------------+----------+

+-------------------------------+---+-------------+------------+------------+
| Equity and Reserves | |   | | |
+-------------------------------+---+-------------+------------+------------+
| | |   | | |
+-------------------------------+---+-------------+------------+------------+
| Called up share capital | 5 | 2,076,917 | 2,076,917 | 2,076,917 |
+-------------------------------+---+-------------+------------+------------+
| Share premium | | 27,218,897 | 27,218,897 | 27,218,897 |
+-------------------------------+---+-------------+------------+------------+
| Share based payments reserve | | 229,033 | 216,524 | 233,183 |
+-------------------------------+---+-------------+------------+------------+
| Translation reserve | | 87,129 | 82,901 | 109,970 |
+-------------------------------+---+-------------+------------+------------+
| Profit and loss account | | (2,068,373) | (856,245) | (786,052) |
+-------------------------------+---+-------------+------------+------------+
| Equity attributable to equity | | | | |
| holders of the parent | | 27,543,603 | 28,738,994 | 28,852,915 |
+-------------------------------+---+-------------+------------+------------+
| Minority interest |   | 362,031 | 404,069 | 396,093 |
+-------------------------------+---+-------------+------------+------------+
| |   | _________ | _________ | _________ |
+-------------------------------+---+-------------+------------+------------+
| Total Equity | | 27,905,634 | 29,143,063 | 29,249,008 |
+-------------------------------+---+-------------+------------+------------+
|   | |   |   |   |
+-------------------------------+---+-------------+------------+------------+
| Total equity and liabilities | | 28,576,260 | 29,977,178 | 29,931,400 |
+-------------------------------+---+-------------+------------+------------+


These interim results were approved by the Board on 20 December 2010 and signed
on its behalf by:

Reg Eccles
Chairman

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Six month period ended 30 September 2010

+--------+---------+----------+--------+-----------+--------+--------+-----------+
| |  |  | Share|  |  | Trans-|  |
+--------+---------+----------+--------+-----------+--------+--------+-----------+
|  |  |  | Based|  |  | lation|  |
+--------+---------+----------+--------+-----------+--------+--------+-----------+
| | | | Pay-| | | Ex-| |
|  | Share| Share| ments| Retained|Minority| change|  |
+--------+---------+----------+--------+-----------+--------+--------+-----------+
|  | Capital| Premium| Reserve| Loss|Interest| Reserve| Total|
+--------+---------+----------+--------+-----------+--------+--------+-----------+
| | £| £| £| £| £| £| £|
+--------+---------+----------+--------+-----------+--------+--------+-----------+
|Balance | | | | | | | |
|at | | | | | | | |
|1 April | | | | | | | |
|2010 |2,076,917|27,218,897| 233,183| (786,052)| 396,093| 109,970| 29,249,008|
+--------+---------+----------+--------+-----------+--------+--------+-----------+
|Total | | | | | | | |
|compre- | | | | | | | |
|hensive | | | | | | | |
|expense | | | | | | | |
+--------+---------+----------+--------+-----------+--------+--------+-----------+
|Loss for| | | | | | | |
|the | | | | | | | |
|period | -| -| -|(1,302,721)|(16,189)| -|(1,318,910)|
+--------+---------+----------+--------+-----------+--------+--------+-----------+
|Total | | | | | | | |
|other | | | | | | | |
|compre- | | | | | | | |
|hensive | |     -    | |    -      | | | |
|expense |     -|     |     -|  |(17,873)|(22,841)| (40,714)|
+--------+---------+----------+--------+-----------+--------+--------+-----------+
|Total | | | | | | | |
|compre- | | | | | | | |
|hensive | | | | | | | |
|expense | | | | | | | |
|for the | |     -    | |(1,302,721)| | | |
|period |     -|     |     -|         |(34,062)|(22,841)|(1,359,624)|
+--------+---------+----------+--------+-----------+--------+--------+-----------+
|Trans- | | | | | | | |
|actions | | | | | | | |
|with | | | | | | | |
|owners | | | | | | | |
+--------+---------+----------+--------+-----------+--------+--------+-----------+
|Transfer| | | | | | | |
|from | | | | | | | |
|reserve | -| -|(20,400)| 20,400| -| -| -|
+--------+---------+----------+--------+-----------+--------+--------+-----------+
|Share | | | | | | | |
|options | | | | | | | |
|granted | | | | | | | |
|in year | -| -| 16,250| -| -| -| 16,250|
+--------+---------+----------+--------+-----------+--------+--------+-----------+
|  | ________| _________| _______| _______| ______| ______| _______|
+--------+---------+----------+--------+-----------+--------+--------+-----------+
|Balance | | | | | | | |
|at 30 | | | | | | | |
|Sep- | | | | | | | |
|tember | | | | | | | |
|2010 |2,076,917|27,218,897| 229,033|(2,068,373)| 362,031| 87,129| 27,905,634|
+--------+---------+----------+--------+-----------+--------+--------+-----------+


CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Six month period ended 30 September 2009

+-------------+---------+----------+---------+-----------+--------+--------+-----------+
| |  |  | Share|  |  | Trans-|  |
+-------------+---------+----------+---------+-----------+--------+--------+-----------+
|  |  |  | Based|  |  | lation|  |
+-------------+---------+----------+---------+-----------+--------+--------+-----------+
|  | Share| Share| Payments| Retained|Minority|Exchange|  |
+-------------+---------+----------+---------+-----------+--------+--------+-----------+
|  | Capital| Premium| Reserve| Loss|Interest| Reserve| Total|
+-------------+---------+----------+---------+-----------+--------+--------+-----------+
| | £| £| £| £| £| £| £|
+-------------+---------+----------+---------+-----------+--------+--------+-----------+
|Balance | | | | | | | |
|at 1 April | | | | | | | |
|2009 |1,476,917|24,570,675| 307,899| 795,810| 433,352| 142,395| 27,727,048|
+-------------+---------+----------+---------+-----------+--------+--------+-----------+
|Total | | | | | | | |
|compre- | | | | | | | |
|hensive | | | | | | | |
|expense | | | | | | | |
+-------------+---------+----------+---------+-----------+--------+--------+-----------+
|(Loss)/profit| | | | | | | |
|for the | | | | | | | |
|period | -| -| -|(1,843,031)| 17,272| -|(1,825,759)|
+-------------+---------+----------+---------+-----------+--------+--------+-----------+
|Total other | | | | | | | |
|compre- | | | | | | | |
|hensive | |     -    | |    -      | | | |
|expense |     -|     |     -|   |(46,555)|(59,494)| (106,049)|
+-------------+---------+----------+---------+-----------+--------+--------+-----------+
|Total | | | | | | | |
|compre- | | | | | | | |
|hensive | | | | | | | |
|expense | | | | | | | |
|for the | |     -    | |(1,843,031)| | | |
|period |     -|     |     -|         |(29,283)|(59,494)|(1,931,808)|
+-------------+---------+----------+---------+-----------+--------+--------+-----------+
|Trans- | | | | | | | |
|actions | | | | | | | |
|with | | | | | | | |
|owners | | | | | | | |
+-------------+---------+----------+---------+-----------+--------+--------+-----------+
|Share | | | | | | | |
|issue | 600,000| 2,648,222| -| -| -| -| 3,248,222|
+-------------+---------+----------+---------+-----------+--------+--------+-----------+
|Transfer | | | | | | | |
|from | | | | | | | |
|reserve | -| -|(190,976)| 190,976| -| -| -|
+-------------+---------+----------+---------+-----------+--------+--------+-----------+
|Share | | | | | | | |
|based | | | | | | | |
|payment | -| -| 99,601| -| -| -| 99,601|
+-------------+---------+----------+---------+-----------+--------+--------+-----------+
|  | ________| _________| _______| _______| ______| ______| _______|
+-------------+---------+----------+---------+-----------+--------+--------+-----------+
|Balance | | | | | | | |
|at 30 Sep- | | | | | | | |
|tember | | | | | | | |
|2009 |2,076,917|27,218,897| 216,524| (856,245)| 404,069| 82,901| 29,143,063|
+-------------+---------+----------+---------+-----------+--------+--------+-----------+
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Year ended 31 March 2010

+-------------+---------+----------+---------+-----------+--------+--------+-----------+
| |  |  | Share|  |  | Trans-|  |
+-------------+---------+----------+---------+-----------+--------+--------+-----------+
|  |  |  | Based|  |  | lation|  |
+-------------+---------+----------+---------+-----------+--------+--------+-----------+
|  | Share| Share| Payments| Retained|Minority|Exchange|  |
+-------------+---------+----------+---------+-----------+--------+--------+-----------+
|  | Capital| Premium| Reserve| Loss|Interest| Reserve| Total|
+-------------+---------+----------+---------+-----------+--------+--------+-----------+
| | £| £| £| £| £| £| £|
+-------------+---------+----------+---------+-----------+--------+--------+-----------+
|Balance | | | | | | | |
|at 1 April | | | | | | | |
|2009 |1,476,917|24,570,675| 307,899| 795,810| 433,352| 142,395| 27,727,048|
+-------------+---------+----------+---------+-----------+--------+--------+-----------+
|Total | | | | | | | |
|compre- | | | | | | | |
|hensive | | | | | | | |
|expense | | | | | | | |
+-------------+---------+----------+---------+-----------+--------+--------+-----------+
|(Loss)/profit| | | | | | | |
|for the | | | | | | | |
|period | -| -| -|(1,772,838)|(11,885)| -|(1,784,723)|
+-------------+---------+----------+---------+-----------+--------+--------+-----------+
|Total other | | | | | | | |
|compre- | | | | | | | |
|hensive | |     -    | |    -      | | | |
|expense |     -|     |     -|   |(25,374)|(32,425)| (57,799)|
+-------------+---------+----------+---------+-----------+--------+--------+-----------+
|Total | | | | | | | |
|compre- | | | | | | | |
|hensive | | | | | | | |
|expense | | | | | | | |
|for the | | | |(1,772,838)| | | |
|period |     -|    -     |     -|        |(37,259)|(32,425)|(1,842,522)|
+-------------+---------+----------+---------+-----------+--------+--------+-----------+
|Trans- | | | | | | | |
|actions | | | | | | | |
|with | | | | | | | |
|owners | | | | | | | |
+-------------+---------+----------+---------+-----------+--------+--------+-----------+
|Share issue | 600,000| 2,648,222| -| -| -| -| 3,248,222|
+-------------+---------+----------+---------+-----------+--------+--------+-----------+
|Transfer | | | | | | | |
|from reserve | -| -|(190,976)| 190,976| -| -| -|
+-------------+---------+----------+---------+-----------+--------+--------+-----------+
|Share | | | | | | | |
|options | | | | | | | |
|granted | | | | | | | |
|in year | -| -| 116,260| -| -| -| 116,260|
+-------------+---------+----------+---------+-----------+--------+--------+-----------+
| | ________| _________| _______| _______| ______| ______| _______|
+-------------+---------+----------+---------+-----------+--------+--------+-----------+
|Balance | | | | | | | |
|at 31 March | | | | | | | |
|2010 |2,076,917|27,218,897| 233,183| (786,052)| 396,093| 109,970| 29,249,008|
+-------------+---------+----------+---------+-----------+--------+--------+-----------+

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS
Six month period ended 30 September 2010
+-------------------------------+--------------+--------------+-------------+
| | Six months | Six months | |
| | period ended | period ended | Year ended |
| | 30 September | 30 September | 31 March |
| | 2010 | 2009 | 2010 |
| | (Unaudited) | (Unaudited) | (Audited) |
| | £ | £ | £ |
+-------------------------------+--------------+--------------+-------------+
|   | | | |
+-------------------------------+--------------+--------------+-------------+
| Net cash outflow from | | | |
| operating activities | (697,653) | (844,236) | (1,291,874) |
+-------------------------------+--------------+--------------+-------------+
+-------------------------------+--------------+--------------+-------------+
| Investing Activities | | | |
+-------------------------------+--------------+--------------+-------------+
| Capital expenditure | (493) | - | - |
+-------------------------------+--------------+--------------+-------------+
| Investment income | 12,100 | 7,728 | 22,560 |
+-------------------------------+--------------+--------------+-------------+
| Loan investments advanced | (1,306,507) | (465,563) | (747,723) |
+-------------------------------+--------------+--------------+-------------+
| | _________ | ________ | _________ |
+-------------------------------+--------------+--------------+-------------+
| Net cash flow from investing | | | |
| activities | (1,294,900) | (457,835) | (725,163) |
+-------------------------------+--------------+--------------+-------------+
+-------------------------------+--------------+--------------+-------------+
| Financing activities | | | |
+-------------------------------+--------------+--------------+-------------+
| Issue of equity share capital | - | 3,248,222 | 3,248,222 |
+-------------------------------+--------------+--------------+-------------+
| | ________ | ________ | ________ |
+-------------------------------+--------------+--------------+-------------+
| Net cash flow from financing | | | |
| activities |     - | 3,248,222 | 3,248,222 |
+-------------------------------+--------------+--------------+-------------+
+-------------------------------+--------------+--------------+-------------+
| Taxation | | | |
+-------------------------------+--------------+--------------+-------------+
| Payment of corporation tax | - | - | (197,356) |
+-------------------------------+--------------+--------------+-------------+
| | _________ | ________ | ________ |
+-------------------------------+--------------+--------------+-------------+
| (Decrease) / increase in | | | |
| cash and cash equivalents | (1,992,553) | 1,946,151 | 1,033,829 |
+-------------------------------+--------------+--------------+-------------+
+-------------------------------+--------------+--------------+-------------+
| Cash and cash equivalents | | | |
| brought forward | 3,916,603 | 2,882,774 | 2,882,774 |
+-------------------------------+--------------+--------------+-------------+
| | ________ | ________ | ________ |
+-------------------------------+--------------+--------------+-------------+
| Cash and cash equivalents | | | |
| carried forward | 1,924,050 | 4,828,925 | 3,916,603 |
+-------------------------------+--------------+--------------+-------------+



NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

Six month period ended 30 September 2010


1.         General information

Toledo Mining Corporation Plc is a company incorporated in England and Wales
under the Companies Act 1985.  The Company's registered office is 11 Albemarle
Street, London, W1S 4HH. The registration number of the Company is 5055833.
The principal activity of the Group is the investment in and exploration and
development of mining projects, specifically in the Philippines.
The Group's principal activity is carried out in US dollars.  The financial
statements are presented in pounds sterling as this is the currency of the
country (the UK) where the Company is incorporated and its ordinary shares
admitted for trading.
The Board of directors has authorised the issue of these interim results on the
date of the statement as set out on page [8].
2.         Accounting policies

Basis of accounting
The interim results have been prepared in accordance with International
Accounting Standard 34 "Interim Financial Reporting".
The annual financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRSs).
The interim results have been prepared on the historical cost basis except that
certain financial instruments are accounted for at fair values.  The same
principal accounting policies and methods of computation have been followed in
the interim results as compared with the Group's financial statements for the
year ended 31 March 2010.
Going Concern
The interim results have been prepared on a going concern basis, which
contemplates continuity of normal business activities and the realisation of
assets and settlement of liabilities in the ordinary course of business.
The directors believe that it is appropriate to prepare the financial report on
a going concern basis as they are confident that the Company will be able to
raise additional funds through debt or equity raisings when required.  The
directors are of the opinion that the proposed debt or equity raising measures
and the existing cash resources will provide sufficient funds to enable the
Company to continue its operations for at least the next twelve months.
The interim results do not reflect adjustments that would be necessary if the
going concern assumptions were not appropriate. If the going concern basis was
not appropriate  for the interim results, then adjustments would be necessary in
the carrying value of loans and receivables, investments in associated
undertakings, trade and other receivables, liabilities,  the reported expenses,
and the classifications used in the Statement of Financial Position . Such
adjustments could be material.


3.        Segmental analysis

The turnover and profit / (loss) are attributable to the principal activities of
the Group.
Segmental information on a geographical basis is set out below:
+------------------------------------+---------------------------------+
| | Period ended 30 September 2010 |
+--------------------+---------------+-----------+----------+----------+
| | UK|Philippines| China| Total|
+--------------------+---------------+-----------+----------+----------+
| | £| £| £| £|
+--------------------+---------------+-----------+----------+----------+
|Revenue | 3,390|          -| 266,796| 270,186|
+--------------------+---------------+-----------+----------+----------+
| |  |  |  |  |
+--------------------+---------------+-----------+----------+----------+
|Loss for the period | | | | |
|excluding associates| (745,194)|          -| (36,877)| (782,071)|
+--------------------+---------------+-----------+----------+----------+
| |  |  |  |  |
+--------------------+---------------+-----------+----------+----------+
|Share of associates | | | | |
|results |              -| (536,839)|         -| (536,839)|
+--------------------+---------------+-----------+----------+----------+
| |  |  |  |  |
+--------------------+---------------+-----------+----------+----------+
|Total assets | 2,237,558| 25,484,188| 854,514|28,576,260|
+--------------------+---------------+-----------+----------+----------+
| |  |  |  |  |
+--------------------+---------------+-----------+----------+----------+
|Total liabilities | (198,000)| (442,786)| (29,840)| (670,626)|
+--------------------+---------------+-----------+----------+----------+
| |  |  |  |  |
+--------------------+---------------+-----------+----------+----------+
|Loan investment | | | | |
|additions |            -| 1,149,683|         -| 1,149,683|
+--------------------+---------------+-----------+----------+----------+


+-------------------------------------+----------------------------------+
| | Period ended 30 September 2009 |
+---------------------+---------------+-----------+----------+-----------+
| | UK|Philippines| China| Total|
+---------------------+---------------+-----------+----------+-----------+
| | £| £| £| £|
+---------------------+---------------+-----------+----------+-----------+
|Revenue | 12,206|          -| 206,065| 218,271|
+---------------------+---------------+-----------+----------+-----------+
| |  |  |  |  |
+---------------------+---------------+-----------+----------+-----------+
|(Loss)/profit for the| | | | |
|period excluding | | | | |
|associates | (1,468,977)|          -| 39,344|(1,429,633)|
+---------------------+---------------+-----------+----------+-----------+
| |  |  |  |  |
+---------------------+---------------+-----------+----------+-----------+
|Share of associates | | | | |
|results |              -| (396,126)|         -| (396,126)|
+---------------------+---------------+-----------+----------+-----------+
| |  |  |  |  |
+---------------------+---------------+-----------+----------+-----------+
|Total assets | 5,068,269| 23,940,680| 968,229| 29,977,178|
+---------------------+---------------+-----------+----------+-----------+
| |  |  |  |  |
+---------------------+---------------+-----------+----------+-----------+
|Total liabilities | 303,659| 492,660| 37,796| 834,115|
+---------------------+---------------+-----------+----------+-----------+
| |  |  |  |  |
+---------------------+---------------+-----------+----------+-----------+
|Loan investment | | | | |
|additions |            -| 791,517|         -| 791,517|
+---------------------+---------------+-----------+----------+-----------+

+-----------------------------------+-----------------------------------------+
| | Year ended 31 March 2010 |
+--------------------+--------------+-------------+----------------+----------+
| | UK| Philippines| China| Total|
+--------------------+--------------+-------------+----------------+----------+
| | £| £| £| £|
+--------------------+--------------+-------------+----------------+----------+
|Revenue | 6,380|            -| 355,718| 362,098|
+--------------------+--------------+-------------+----------------+----------+
| |  |  |  |  |
+--------------------+--------------+-------------+----------------+----------+
|Loss for the year | | | | |
|excluding associates| (893,653)|            -| (27,073)| (920.726)|
+--------------------+--------------+-------------+----------------+----------+
| |  |  |  |  |
+--------------------+--------------+-------------+----------------+----------+
|Share of associates | | | | |
|results |             -| (863,997)|            -| (863,997)|
+--------------------+--------------+-------------+----------------+----------+
| |  |  |  |  |
+--------------------+--------------+-------------+----------------+----------+
|Depreciation | 1,348|            -|             -  | 1,348|
+--------------------+--------------+-------------+----------------+----------+
| |  |  |  |  |
+--------------------+--------------+-------------+----------------+----------+
|Total assets | 4,147,678| 24,861,626| 922,096|29,931,400|
+--------------------+--------------+-------------+----------------+----------+
| |  |  |  |  |
+--------------------+--------------+-------------+----------------+----------+
|Total liabilities | (207,971)| (464,590)| (9,831)| (682,392)|
+--------------------+--------------+-------------+----------------+----------+
| |  |  |  |  |
+--------------------+--------------+-------------+----------------+----------+
|Loan investment | | | | |
|additions |            -| 1,410,568|          -| 1,410,568|
+--------------------+--------------+-------------+----------------+----------+


4.         Loss per share - including share of associates results

Loss per share has been calculated by dividing the loss  for the period after
taxation including share of associates losses of £536,839 (30 September 2009:
£396,126) (31 March 2010:  £863,997) attributable to the equity holders of the
parent company of £(1,302,721) (30 September 2009: £(1,843,031)) (31 March
2010: £(1,772,838) by the weighted average number of shares in issue at the
period end of 41,538,333 (30 September 2009: 33,341,612) (31 March
2010: 37,439,972).

Diluted loss  per share has been calculated using the weighted average number of
shares in issue at the period end, diluted for the effect of share options in
existence at the period end of 815,000 ( 30 September 2009: 650,000) (31 March
2010: 790,000).

Loss per share - excluding share of associates results
Loss per share has been calculated by dividing the loss for the period after
taxation excluding share of associates losses of £536,839 (30 September 2009:
£396,126) (31 March 2010: £863,997) attributable to the equity holders of the
parent company of £(765,882) (30 September 2009: £(1,446,905) (31 March 2010
£908,841) by the weighted average number of shares in issue at the period end of
41,538,333 (30 September 2009: 33,341,612) ( 31 March 2010: 37,439,972).
Diluted loss per share has been calculated using the weighted average number of
shares in issue at the period  end, diluted for the effect of share options in
existence at the period end of 815,000 (30 September 2009: 650,000) (31 March
2010: 790,000).

5.         Called up share capital
+--------------------------+------------------+---------------+----------+
| | Six months period| Six months|Year ended|
| |ended 30 September|period ended 30| 31 March|
| | 2010| September 2009| 2010|
|  | (Unaudited)| (Unaudited)| (Audited)|
+--------------------------+------------------+---------------+----------+
|  | | | |
+--------------------------+------------------+---------------+----------+
|Authorised | | | |
+--------------------------+------------------+---------------+----------+
|Ordinary shares of 5p each| | | |
+--------------------------+------------------+---------------+----------+
|Number | 55,879,500| 40,000,000|55,879,500|
+--------------------------+------------------+---------------+----------+
|Nominal value | 2,793,975| 2,000,000| 2,793,975|
+--------------------------+------------------+---------------+----------+
+--------------------------+------------------+---------------+----------+
|Allotted and fully paid | | | |
+--------------------------+------------------+---------------+----------+
|Ordinary shares of 5p each| | | |
+--------------------------+------------------+---------------+----------+
|Number | 41,538,333| 41,538,333|41,538,333|
+--------------------------+------------------+---------------+----------+
|Nominal value | 2,076,917| 2,076,917| 2,076,917|
+--------------------------+------------------+---------------+----------+

6.         Material related party transactions

Atlas Consolidated Mining and Development Corporation (ACMDC) and European
Nickel plc are joint venture partners with the Company under the Berong Venture
Agreement.
Brooks Nickel Ventures, Inc. (Brooks) and Celestial Nickel Mining and
Exploration Corporation (CNMEC) are joint venture partners with the Company
under the Celestial/Ipilan Venture Agreement.
ACMDC is joint venture partner with the Company under the Ulugan Venture
Agreement.
Under the Berong, Celestial/Ipilan and Ulugan Venture Agreements, the Company
has through the expenditure of qualifying costs of £10,464,306 (and as at 30
September 2009 and 31 March 2010) acquired equity interests in the following
Philippines' registered companies.
+--------+----------+---------+------+---------+---------+------+------+
| | | Ulugan| |Nickeline| Nickel| | |
| | TMM|Resources|Ulugan|Resources| Laterite|Berong|Ipilan|
| |Management| Holdings|Nickel| Holdings|Resources|Nickel|Nickel|
| | Inc| Inc| Corp.| Inc| Inc| Corp.| Corp.|
+--------+----------+---------+------+---------+---------+------+------+
|Direct | 40%| 30%| 40%| 40%| 20%| 21.3%| 40%|
+--------+----------+---------+------+---------+---------+------+------+
|Indirect|       -|       -| 18%| 18%|       -| 34.8%| 12%|
+--------+----------+---------+------+---------+---------+------+------+
|Total | 40%| 30%| 58%| 58%| 20%| 56.1%| 52%|
+--------+----------+---------+------+---------+---------+------+------+
In April 2006, the Company entered into an agreement to subscribe for up to US$5
million, in a three-year Loan Note in ACMDC secured over ACMDC's share of the
Berong nickel project cash flows.  The Note bears interest at the rate of 10%
cumulative per annum and, following an amendment to the agreement in July 2010,
is repayable four years from each drawdown. The loan is repayable out of ACMDC's
share of the Berong nickel project cash flow or is convertible into ACMDC shares
or repayable in US$ cash (at the election of the Company).

During the period, the Company advanced US$177,369 (period to 30 September
2009: US$0) (31 March 2010: US$0) to ACMDC under the Loan Note. This amount
forms part of the total principal amount advanced as shown under non-current
loan investments.
In May 2007, the Company entered into an agreement to make a loan facility
available to Brooks of up to US$2.5 million.  Brooks confirmed that the
US$585,191 already advanced by the Company in excess of its US$2 million funding
commitment would be subject to the terms of the agreement.  This loan facility
was subsequently increased to US$10 million. During the period, the Company
advanced a further US$530,000 (period to 30 September 2009: US$379,788) (year to
31 March 2010: US$845,146) to Brooks. This amount forms part of the total
principal amount advanced as shown under non-current loan investments. The loan
facility bears interest at 10% cumulative per annum and, following an amendment
to the agreement in March 2010, is repayable four years from each drawdown. The
loan is secured over Brooks' share of earnings from the Ipilan nickel project
and is repayable out of Brooks' share of the Ipilan nickel project cash flows
Under the Celestial joint venture agreement, the Company has the option to take
a 40% holding in CNMEC.  During the year ended 30 March 2007 the Company agreed
to an advance of $900,000. against the option exercise amount.  If the Company
decides not to exercise the option to purchase, or is prevented by any cause
from exercising the option to purchase, then the borrowers are required to
reimburse the US$900,000.  The advance is interest free and guaranteed by CNMEC
but is otherwise unsecured. The amount forms part of the total principal amount
advanced as shown under non-current loan investments.
A potential claim for an unspecified sum for breach of contract has been
notified to the Company in respect of a dispute with Celestial Nickel Mining
Exploration Corporation.  The directors are firmly of the opinion that the claim
is without foundation and no provision has been made in these accounts in
respect of this.
The Company's expenditure commitment under the Ulugan Venture Agreement at the
period end is US$700,000 (and as at 30 September 2009 and 31 March 2010).

Under the Berong Venture Agreement, the Company has advanced funds to Berong
Nickel Corporation (BNC) to meet ongoing mine development costs.  During the
period, the Company advanced US$1,193,431 (period to 30 September 2009:
US$327,778) (year to 31 March 2010: US$327,778) to BNC. This amount forms part
of the total principal amount advanced as shown under non-current loan
investments. The loan amounts advanced are interest free, unsecured and have no
fixed terms of repayment.

CNMEC owns 40% of the issued share capital of Nickel Laterite Resources Inc.
 There is a royalty agreement in place such that the Company has a commitment to
make certain payments to CNMEC as described in note 7.
The Company has two subsidiaries, China Nickel Corporation and China Nickel &
Steel Corporation.
During the period China Nickel Corporation charged Berong Nickel Corporation
US$193,081 (period to 30 September 2009: US$272,907) (year to 31 March 2010:
US$524,195) in respect of consulting fees. At the period end Berong Nickel
Corporation owed China Nickel Corporation US$1,073,708 (30 September 2009:
US$1,228,531) (31 March 2010: US$1,182,197).
During the period China Nickel Corporation charged Ipilan Nickel Corporation
US$212,255 (period to 30 September 2009: US$55,018) (year to 31 March 2010:
US$116,040) in respect of consulting fees. At the period end Ipilan Nickel
Corporation owed China Nickel Corporation US$242,403 (30 September 2009:
US$205,660) (31 March 2010: US$110,667).

7.         Commitments and contingencies
Under a royalty agreement, the Company has made a commitment to make certain
payments to Celestial Nickel Mining Exploration Corporation (CNEMC) as follows:
Upon completion of positive bankable feasibility study US$500,000

Upon the commencement of construction of plant US$1,200,000

During the period, the Company paid CNEMC US$200,000 on completion of a
feasibility study, including an amount of US$100,000 paid into the client
account of the Company's lawyers, held on account of that commitment subject to
repayment of a disputed US$100,000 loan to CNEMC's shareholders. A potential
claim for an unspecified sum for breach of contract has been notified to the
Company in respect of a dispute with Celestial Nickel Mining Exploration
Corporation.  The directors are firmly of the opinion that the claim is without
foundation and no provision has been made in these accounts in respect of this.

8.         Associate Undertakings

The Company has equity holdings in the following associate undertakings:

+--------+----------+---------+------+---------+---------+------+------+
| | | Ulugan| |Nickeline| Nickel| | |
| | TMM|Resources|Ulugan|Resources| Laterite|Berong|Ipilan|
| |Management| Holdings|Nickel| Holdings|Resources|Nickel|Nickel|
| | Inc| Inc| Corp.| Inc| Inc| Corp.| Corp.|
+--------+----------+---------+------+---------+---------+------+------+
|Direct | 40%| 30%| 40%| 40%| 20%| 21.3%| 40%|
+--------+----------+---------+------+---------+---------+------+------+
|Indirect|       -|       -| 18%| 18%|       -| 34.8%| 12%|
+--------+----------+---------+------+---------+---------+------+------+
|Total | 40%| 30%| 58%| 58%| 20%| 56.1%| 52%|
+--------+----------+---------+------+---------+---------+------+------+

The principal place of business and country of incorporation of the associate
undertakings is the Philippines.
Summarised results of the associate undertakings as translated in sterling are
as follows:

+-------------------+----------------+-----------------------------------------+
| |   | Period ended 30 September 2010 |
+-------------------+----------------+---------------+------------+------------+
| | Berong Nickel | Ipilan Nickel | Remaining | |
|   | Corporation | Corporation | Associates | Total |
+-------------------+----------------+---------------+------------+------------+
|   | £ | £ | £ | £ |
+-------------------+----------------+---------------+------------+------------+
+-------------------+----------------+---------------+------------+------------+
| Revenue |              - |            - | 191,203 | 191,203 |
+-------------------+----------------+---------------+------------+------------+
|   | | | | |
+-------------------+----------------+---------------+------------+------------+
| Profit / (loss) | | | | |
| for the period | (899,711) | (84,414) | 30,023 | (954,102) |
+-------------------+----------------+---------------+------------+------------+
|   | | | | |
+-------------------+----------------+---------------+------------+------------+
| Total assets | 12,634,370 | 6,805,117 | 2,117,465 | 21,556,952 |
+-------------------+----------------+---------------+------------+------------+
|   | | | | |
+-------------------+----------------+---------------+------------+------------+
| Total liabilities | 7,950,698 | 352,186 | 1,646,051 | 9,948,935 |
+-------------------+----------------+---------------+------------+------------+


+-------------------+---------------+-----------------------------------------+
| |   | Period ended 30 September 2009 |
+-------------------+---------------+---------------+------------+------------+
| | Berong Nickel | Ipilan Nickel | Remaining | |
| | Corporation | Corporation | Associates | Total |
+-------------------+---------------+---------------+------------+------------+
| | £ | £ | £ | £ |
+-------------------+---------------+---------------+------------+------------+
| Revenue | 2,351,533 |            - | 199,929 | 2,551,462 |
+-------------------+---------------+---------------+------------+------------+
+-------------------+---------------+---------------+------------+------------+
| Profit / (loss) | | | | |
| for the period | (667,155) | (66,135) | 32,305 | (700,985) |
+-------------------+---------------+---------------+------------+------------+
+-------------------+---------------+---------------+------------+------------+
| Total assets | 12,944,574 | 5,659,563 | 1,997,957 | 20,602,094 |
+-------------------+---------------+---------------+------------+------------+
+-------------------+---------------+---------------+------------+------------+
| Total liabilities | 7,125,565 | 150,382 | 1,576,123 | 8,852,070 |
+-------------------+---------------+---------------+------------+------------+


+-----------------+-------------+-------------------------------------+
|  |  | Year ended 31 March 2010 |
+-----------------+-------------+--------------+----------+-----------+
| |Berong Nickel| Ipilan Nickel| Remaining| |
|  | Corporation| Corporation|Associates| Total|
+-----------------+-------------+--------------+----------+-----------+
|  | £| £| £| £|
+-----------------+-------------+--------------+----------+-----------+
+-----------------+-------------+--------------+----------+-----------+
|Revenue | 2,387,297|             -| 405,612| 2,792,909|
+-----------------+-------------+--------------+----------+-----------+
+-----------------+-------------+--------------+----------+-----------+
|Profit / (loss) | | | | |
|for the year | (1,402,435)| (174,709)| 14,517|(1,562,627)|
+-----------------+-------------+--------------+----------+-----------+
+-----------------+-------------+--------------+----------+-----------+
|Total assets | 13,187,476| 6,425,163| 2,176,616| 21,789,255|
+-----------------+-------------+--------------+----------+-----------+
+-----------------+-------------+--------------+----------+-----------+
|Total liabilities| 7,520,371| 104,218| 1,728,040| 9,352,629|
+-----------------+-------------+--------------+----------+-----------+

9.         Post balance sheet events

On 10 November 2010 the Company granted to non-UK management a three year option
to subscribe for 75,000 ordinary shares at an exercise price of 50 pence.
All other significant post balance sheet events are dealt with in the Chairman's
Statement.








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Source: Toledo Mining Corporation PLC via Thomson Reuters ONE

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