Coal Royalties Update

Anglo Pacific Group PLC 19 December 2001 Further to the two recent quarterly cashflow reports issued by Anglo Pacific Group PLC ('the Company') in accordance with the ASX Regulations, the Company is pleased to report that the Queensland Government has announced changes in the basis of the calculations of coal royalties. These changes will take effect from 1 January 2002 and it is anticipated that they will have a positive effect on the Company's coal royalty entitlements.