LANDORE RESOURCES LIMITED

INTERIM STATEMENT

For the six months ended 30 June 2011

MANAGEMENT DISCUSSION AND ANALYSIS

FOR THE SIX MONTHS ENDED 30 JUNE 2011

General

The following discussion of performance, financial condition and future prospects should be read in conjunction with the interim consolidated financial statements of the Group and notes thereto for the period from 1 January 2011 to 30 June 2011.  All amounts are stated in sterling.

Overview

Landore Resources Limited is listed on the Alternative Investment Market in London, with the trading symbol of LND.L. The Company is based in Guernsey in the Channel Islands and its operating subsidiary, Landore Resources Canada Inc, is engaged in the exploration and development of a portfolio of precious and base metal properties in North America.

Results of Operations

The financial results for the six months to 30 June 2011 show a loss of £1,903,093 (2010: loss of £2,098,990).  These results are in line with expectations.  During the six month period exploration costs were £1,337,695 (2010: £1,483,823) and administrative expenses were £569,490 (2010: £615,192).

During the period under review £3,307,980 net of expenses was raised from the issue of 23,025,000 shares. Subsequent to the period end a further £450,000 has been raised from the issue of 3,000,000 new ordinary shares as a result of  warrants being exercised at 15p per share.

As a result of these fundraisings the Group is fully funded for this season's exploration and drilling activities.

Mineral Exploration Activities

In the period under review Group's activities have been almost entirely focused on the Junior Lake project.  Firstly in relation to the strategic review and subsequent demerger of the Lamaune Iron Ore assets and secondly in continuing exploration in the vicinity of the B4-7 and VW nickel deposits.

The Junior Lake property

The Junior Lake property, 100% owned by Landore, is located in the province of Ontario, Canada, approximately 235 kilometres  north-northeast of Thunder Bay and is host to; the VW Nickel deposit, the B4-7 deposit, the Lamaune Iron deposit, the Lamaune Gold prospect and numerous other highly prospective mineral occurrences.

Lamaune Iron Ore Assets

Following a strategic review of the Company's key assets the Board had determined that the Lamaune Iron Ore Assets, which have significant potential value, should be transferred into a separate entity with, in due course, independent management and finance.

Accordingly it was announced on 14 June 2011 that the Company's subsidiary, Landore Resources Canada Inc. had transferred the Lamaune Iron Assets into Lamaune Iron Inc. with a long term intention for this entity to pursue a public listing of its shares. The Lamaune Iron Assets are part of the Company's flagship property, the Junior Lake property, which is situated 235 kilometres north-north east of Thunder Bay in the province of Ontario, and is highly prospective for numerous metals including; iron ore, nickel, copper, PGE's, gold and lithium. The Lamaune Iron Assets consist of 23 staked claims covering approximately 4,096 ha in one contiguous block. The major asset which this includes is a resource definition stage, Algoma-type, iron deposit, historically referred to as the Despard-Zmudzinski deposit.

The Board commissioned Roscoe Postle to undertake a valuation of the Lamaune Iron Assets and based on this valuation Lamaune Iron Inc.has issued a secured loan note to the value of C$6.2 million in favour of Landore Canada ("Loan Note"). The Loan Note is for a term of 18 months at an interest rate of 3% per annum. In addition, the Company has made a loan facility available to Lamaune Iron Inc to borrow up to C$100,000 to assist  with its working capital requirements in the short-term ("Loan Facility"). The Loan Facility is repayable upon demand of the Company and bears interest at a rate of 3% per annum.

This demerger was completed on 5 July 2011 and full details of this transaction and the technical reports are set out on the website www.landore.com

 Exploration Activities

During Q1, 2011, a scout drilling campaign was completed on the eastern end of the B4-8 zone successfully intersecting massive sulphide mineralisation similar to the adjacent B4-7 deposit, including 5.58 metres at 0.59 per cent. nickel (Ni), 0.29 per cent. copper (Cu), and 0.07 per cent. cobalt (Co) from drill-hole 0411-301.

A follow up drilling campaign consisting of 25 drill-holes (0411-314 to 0411-337 plus one re-entry into 0409-69), for 5,352 metres, has recently concluded, with 'fences' of 3-5 drill-holes completed in the centre and on the western end of the 900 metre long B4-8 zone.

Mineralized intersections include:

Note: Drill-hole 0411-328 was drilled as a 'scissor hole' to the elevated copper and nickel intersection in drill-hole 0411-323.

Junior Lake Nickel project: The combined resources of the VW and B4-7 deposits delineated to date total 48,281 tonnes of nickel equivalent (Nickel + credits of copper, cobalt and PGEs), 82 per cent. of which is in the Indicated category, Canadian National Instrument 43-101 compliant.  Both deposits remain open down dip and along strike to the east and west.

Landore believes that for the Junior Lake Nickel project to be economically viable, the above tonnage needs to be increased by 20 to 30 per cent.  Accordingly, Landore's exploration effort is focused on the discovery of additional nickel, copper, and cobalt mineralization in the vicinity of the two main deposits.

B4-8 zone:In 2004, Landore completed a high resolution helicopter-borne geophysical survey over the Junior Lake property. The 1^st derivative magnetics data identified a very strong and continuous east-west trending geophysical anomaly coincident with the B4-8 conductor making this area a prime exploration target.

The anomaly (the 'B4-8 zone') extends for approximately 900 metres along and west of the B4-8 conductor. There, it is truncated by the Juno Lake shear, and curls north and then to the east around a 150 metre diameter magnetic low. There is considerable potential for economic mineralization in the vicinity of the shear's deformation zone.

The recently concluded drilling campaign concentrated on drilling exploratory drill-fences of 3 to 5 holes in the central area and the western end of the B4-8 zone.

Significant copper mineralization has been intersected within the above curl and on the margin of the magnetic low, including 25.68 metres at 0.66 per cent. Cu, 0.13 per cent. Ni, and 0.02 per cent. Co, including 10.01 metres at 1.17 per cent. Cu, 0.18 per cent. Ni, and 0.03 per cent. Co from drill-hole 0411-323.

Drilling on the B4-8 has revealed a similar style of nickel-copper mineralization to the hanging wall mineralization in the adjacent B4-7 deposit. Elevated mineralisation is hosted in disseminated to massive sulphides in gabbroic rocks and occurs sub-vertically, often within shear zones. Mineralization is also localized in fractures, foliations and gashes. Copper and nickel grades in the B4-7 deposit are as high as 0.5 metres at 7.06 per cent. Cu in drill-hole 0409-210, and 0.86 metres at 3.34 per cent. Ni, 0.31 per cent Cu, and 0.13 per cent. Co in drill-hole 0409-219.

Results from the drilling on the B4-8 are highly encouraging, successfully identifying a potential new area of mineralization on the Junior Lake property. Drilling will recommence in early September 2011 focusing on the western end of the B4-8.

For further information on Landore and the Group's projects please visit the website

www.landore.com.

 

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2011

                                                                                                                       Group                      Group

                                                                                                    Six months ended   Six months ended

                                                                                                           30 June 2011          30 June 2010

                                                                                     Notes                               £                               £

The Group's operating loss relates to continuing operations.

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 JUNE 2011

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AT 30 JUNE 2011

                                                                                      Group                       Group                       Group

                                                                                        As at                        As at                         As at

                                                                          30 June 2011            30 June 2010 31 December 2010

                                                       Notes                             £                               £                               £

UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 JUNE 2011

NOTES TO THE FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 JUNE 2011

1          Basis of accounting and accounting policies

The financial statements have been prepared in accordance with those International Financial Reporting Standards ("IFRS") and International Financial Reporting Interpretations Committee ("IFRIC") interpretations issued and effective or issued and early adopted as at the time of preparing these financial statements (August 2011).

The financial statements have not been audited and have been prepared on the historical cost basis. The principal accounting policies adopted are consistent with those adopted in the annual accounts to 31 December 2010.

2          Exploration expenditure and mineral properties

                                                                                                     Net       Accumulated                          

                                                               1 January        Expenditure         expenditure

                                                                      2011             in period      30 June 2011                                                                                                                         £                          £                          £

            Mineral properties at 30 June 2011 represent accumulated costs to date incurred by Landore Resources Canada Inc., a subsidiary of Landore Resources Limited. On acquisition of Landore Resources Canada Inc. on 5 April 2006 the fair value of those costs incurred to date was considered to be £Nil. All subsequent expenditure in the period has been charged to the income statement in accordance with the group accounting policy.

3          Loss per share

The loss per share is based on the loss for the period and the weighted number of ordinary shares in issue during the period, being 200,777,391 (2010: 195,726,452).

Diluted loss per share

The potential ordinary shares which arise as a result of the options in issue are not dilutive under the terms of IAS 33 because they would not increase the loss per share. Accordingly there is no difference between the basic and dilutive loss per share.

4          Share capital

                                                                                                                          30 June        1 January 

                                                                                                                               2011                2011

                                                                                                                                     £                      £

                                                                                                                      Ordinary                  Share

                                                                                                                         shares             premium

                                                                                                                            2011                   2011

                                                                                                                                  £                         £

The company made allotments of ordinary 1p shares with an aggregate nominal value of £230,250 (before issue costs) during the year as follows:

                                                                                                 Number of        Nominal               Share

                                                                                                       shares            value          premium

            All issues were settled in cash.

5          Profit and loss reserve

                                                                                                                                                 £

6          Post balance sheet events

a)         On 4 July 2011 3,000,000 ordinary shares were issued as a result of the exercise of share warrants, this raised £450,000 for the Company .

b)         On 5 July 2011 the demerger and distribution of all the shares in Lamaune Iron Inc to shareholders of Landore Resources Limited was completed.

c)         On 6 July 2011 the Group issued 8,600,000 of ordinary share options, each with a nominal         value of 1 pence, which were valued at 16.12 pence per share at the time of issue.