Deutsche Rohstoff Ag: Strong growth and record profit in 2011

Deutsche Rohstoff AG: Strong growth and record profit in 2011
Annual report is available online and as print version/Current Project
Status and Outlook

Heidelberg. Deutsche Rohstoff Group has continued very strong growth in its
sixth year of existence and has achieved its best result to date. With
revenues totalling EUR 15.2 million, consolidated net income after minority
interests amounted to EUR 10.85 million. A material impact on earnings had
the profit from the gold production in Australia and the partial sale of
Rhein Petroleum GmbH, which contributed with EUR 8.1 million. Deutsche
Rohstoff AG, the parent company of the group, accounted for a net profit of
EUR 8.7 million in 2011, revenues amounted to EUR 378.000.

The Group's equity capital rose to EUR 31,0 million on 31. December 2011
(+247%), total assets to EUR 40,1 million (+127%). Long-term liabilities
amounted to EUR 4.5 million. Equity ratio was 77,5% (previous year 71%).
Cash and cash equivalents amounted to EUR 9,8 million (previous year EUR
4.9 million).

The Consolidated Financial Statements of Deutsche Rohstoff Group, including
the Group Management Report, as well as the Annual Financial Statements of
Deutsche Rohstoff AG are now available on the website of the company.
Currently, only the German version is available, an English version will
follow shortly.

The following overview summarizes the current state of all divisions and
projects:

Gold
Deutsche Rohstoff Australia Pty Ltd, Georgetown Goldmine
(Amount of Holding 100%)

After completion of the production of oxide ores in Georgetown in December
2011, DRAG had decided not to commence the conversion to sulfide
production, but to negotiate a sale with interested parties. With one of
these prospects an exclusivity period for close review of the project (due
diligence) until mid-August was agreed in early June. For this option the
prospective buyer paid a non-refundable premium of AUD 250,000 (EUR
200,000).

Oil and Gas
Rhein Petroleum GmbH (25%)

Rhein Petroleum GmbH successfully completed their extensive seismic surveys
in Southern Germany in May. In total, data was collected covering an area
of approximately 670 square kilometres. Currently, the data is being
processed and interpreted.
On this basis the company plans to design a drilling program and possibly
start drilling towards the end of 2012.

Oil and Gas
Tekton Energy LLC (63%)

Until today Tekton Energy drilled a total of nine wells in the project area
in the Wattenberg field in Colorado, USA. All wells were successful. Since
early April, the first three holes are in production, another three wells
began producing at the end of May. In early July the remaining three holes
should be connected. The company will then also report on the first month
of production of the wells producing since the end of May. Currently, the
management is preparing a 3D-seismic survey, which will be conducted in
July. It is part of the preparatory work for horizontal wells that are
planned to be drilled in fall. 60% of the production from the first nine
holes has been hedged against a decline in WTI (Western Texas Intermediate)
oil prices to levels lower than USD 90.

Tungsten, Molybdenum
Wolfram Camp Mining Pty Ltd and Bamford Hill (je 100%)

Wolfram Camp delivered its first container of WO3 concentrate to the
off-taker, Global Tungsten, in February. By mid-May, WCM started with the
regular supply of concentrates on a 14-day basis. From February to April,
intense optimization work on the processing plant was conducted. The goal
was to the increase the daily rate, and to decrease the arsenic levels that
exceeded the acceptable specification of the purchaser. Therefore, a number
of process steps were shifted and several new pieces of equipment were
installed in the second half of April. Since early May, the daily
throughput has increased significantly and the arsenic levels are reduced
to levels at which the concentrate was sellable.

The commencement of commercial production is planned for 1 July. In the
second week of July, the official opening of the mine will take place. In
the next few weeks, the planned exploration program at Wolfram Camp and
Bamford Hill will commence. Among other things, a resource estimate
according to the Australian JORC standard will be created for Bamford Hill
for the first time.

Tin
Tin International Ltd. (61%)

Tin International, with it's operating subsidiary Sachsenzinn GmbH, has
successfully completed a drilling program in the two license areas of Geyer
and Gottesberg in April. Several core samples are still in the laboratory
for analysis, nevertheless the work on the new resource estimate has begun.
In the next few weeks, a resource report according to the Australian JORC
standard is expected for Geyer and Gottesberg. The preparations for the
planned IPO at the Australian ASX by Tin International for
September/October have also started and are on schedule.
Rare Earth Elements
Seltenerden Storkwitz AG (61%)

Confirmatory drilling is currently underway in the license area near
Delitzsch in Saxony. Similar to Tin International, results will be used to
transfer the historical resource estimate into the modern, internationally
accepted JORC standard. The 700 m deep drilling is to confirm the GDR
defined ore body and bring some additional information on the position of
the ore body. In addition to the drilling, the company has arranged a
number of technology partnerships with universities and corporations, which
aim to develop new methods for processing and separation of rare earths.

Zinc-Lead
Devonian Metals Inc. (47%)

Devonian Metals has published a new resource report according to the
Canadian standard NI 43-101 by mid-June. It includes the holes which were
drilled over the past two years on the company's license area near
Wrigley/North-West Territories, Canada. The total resource almost doubled
compared to the previous estimate and now amounts to 9.5 million tonnes
grading 6% zinc and lead and 12 grams of silver per ton using a
conventional open pit mining with a 1% cut-off grade (combined lead and
zinc). Currently, another exploration program has been initiated, financed
by the partner Glencore including geochemical, geophysical and
metallurgical studies.

Outlook

Deutsche Rohstoff Group has started to streamline and partially refocus its
portfolio. For 2012 and 2013 the board has announced the target to be a
profitable oil and tungsten producer, sell activities and complete one or
two successful IPOs. As a result, an additional cash position will be built
in order to be able to respond quickly to acquisition opportunities as well
as the uncertain macroeconomic environment.

For 2012 the board expects positive contribution to earnings from
production and divestment sales. In the best case, both components could
exceed the result of 2011. However, the current global economic situation
and the very uncertain market outlook make a prediction very difficult.

In 2013, assuming a stable economic environment, sales and earnings from
operations as well as divestment in the group are expected to be well above
the result of 2011. In 2013, the Board also plans to propose a dividend to
the Shareholder Meeting for the first time.

Heidelberg, 26. June 2012

Deutsche Rohstoff AG (Heidelberg, Germany), listed in the Entry Standard
segment of Frankfurt Stock Exchange, is establishing a new primary
producer. The company's focus is placed on gold, oil & gas and so called
high tech metals such as tin, tungsten, and rare earth metals. All projects
are located in countries marked by political stability, the core area being
Germany. The business concept is based on redeveloping deposits, which have
been well explored in the past. For more information please visit
www.rohstoff.de.

Contact:

Thomas Gutschlag
gutschlag@rohstoff.de
+49 6221 871 000


End of Corporate News

Unternehmen: Deutsche Rohstoff AG - ISIN: DE000A0XYG76