First Direct Application Rock Sales and Update on Milling Operations

Sunkar Resources plc (AIM:SKR) is pleased to present an update on its milling operations and report its first revenues from Direct Application Rock (“DAR” or “phosphate flour”) sales.
 
Direct Application Rock Sales
The Company has completed its first commercial sale of DAR. The sale is to a Russian farming company and although a small quantity, the shipment marks another milestone in the progress of Sunkar as a developing phosphate fertilizer company.

Talks with agriculture buyers on further shipments are being carried out after new domestic fertilizer subsidy regulations were recently issued by the Kazakhstan Government.

Milling Operations

The Company officially started industrial scale production of DAR at its Milling and Loading Complex (“MLC”) on March 15, 2011. Currently the MLC consist of two identical milling lines with a capacity of 20 tonnes per hour each. The two silos have a total storage capacity of 1,250 tonnes of phosphate flour. Up to 30 rail cars can be accommodated on the MLC’s loading terminal which links, via the Company’s recently completed rail spur, to the main state railroad.

To date more than 900 tonnes of beneficiated phosphate rock has been milled into DAR. Vertical shaft impact mills, of Russian manufacture, grind the rock which is then loaded into adjacent silos and can then be loaded in bulk into hopper railcars or can be sent to the bagging facility to be packed into bags which can then be loaded into closed top railcars or onto trucks.

Nurdin Damitov, Executive Director, commented: "We are very proud to report the first shipment of DAR. With its first commercial DAR shipment, Sunkar has taken a step from mine developer to phosphate fertilizer producer and has made further progress on our path to become a world class fertilizer company.

The recently announced trial shipment to the Open Joint Stock Company “Meleuzovskie Mineralnye Udobreniya” (“MMU”) is another example of this progress.

On March 4, 2011 the Government of Kazakhstan finalized domestic fertilizer subsidy regulations to promote increased crop yields and quality. Sunkar is now able to commence sales to the Kazakh agricultural sector and our staff in Kazakhstan are working with the local Government and farmers to promote our DAR.”

Sunkar Resources plc
Serikjan Utegen, CEO Tel: +44 20 7930 8678
Donald Sinclair, CFO

Ambrian Partners Limited
Richard Swindells Tel: +44 20 7634 4700
Matt Einhorn

Bankside Consultants
Simon Rothschild Tel: +44 20 7367 8888
Louise Mason

Editors Notes

Sunkar Resources plc

Sunkar Resources plc, through a wholly owned subsidiary Temir Service LLP, operates a phosphate rock mine in Aktobe Oblast, North West Kazakhstan. Temir Service LLP holds a Subsoil Use Contract to part of the Chilisai Phosphate Rock Deposit. The contract area is estimated to contain 800 Mt of phosphate ore.

Sunkar's strategy is to build a world class integrated ammoniated phosphate fertilizer plant with low operating costs. Sunkar's low cost base derives from its near surface phosphate rock deposit, access to sulphur from the earby North Caspian oil and gas fields.