ARA Aura Renewable Acquisitions Plc

RNS No 6862j
ARAM RESOURCES PLC
30th June 1998


Aram Resources PLC, the independent West Country based quarrying company,
Chairman's statement at AGM:

"We have achieved key milestones in our strategic expansion plans.  Three
planned satellite coating plants along the South Coast are now underway or in
negotiation.  The ability to ship material by sea directly from quarry to
treatment plant gives Aram an important competitive and environmental
advantage".  Giles Nixon, Chairman, Aram Resources PLC.

OTHER HIGHLIGHTS:

*  West of England quarry operations expand, providing new jobs and qualifying
Aram for a government grant of #280,000.

*  #500,000 additional sales in the pipeline to supply major new road scheme
at St Austell.

*  Carnsew Granite Quarry enjoys sales boost.


STATEMENT IN FULL:

"On behalf of the Board of Directors I have great pleasure in welcoming you to
our first AGM.  I would like to use this opportunity to bring you up to date
on the progress that we have made in achieving some of the key milestones in
our strategic plans for the group's expansion.

You will have received copies of the report and accounts for the year ending
December 1997, where I reported in the Chairman's statement on our progress in
the year, including the Company's flotation on the Alternative Investment
Market during September of last year, which raised #1.25 million of new money
(before expenses) to be used for expansion purposes.  This new money, in the
main, is being used to expand our West of England unit, a quarry now enlarged,
and very active.

The development at West of England continues, and we have built up stocks of
rock armour initially to supply our contractual commitments to Ventnor, Isle
of Wight where these vital construction materials are shipped directly from
the quarry to site.  The delivery of materials in this way demonstrates the
clear advantage of ownership of a quarry with its own wharf.  No road
transport is involved in this movement, and we consider this to be an
important competitive and environmental advantage.

As the quarry builds up to full production, it is providing new jobs in an
area where unemployment is unduly high, due to the decline in the traditional
industries of the area, such as fishing and metal mining.  As a result we have
been able to qualify for government grant funding in the form of Regional
Selective Assistance, and the Company has received approval for a grant of
#280,000.  This is more than the figure included in the Business Plan
incorporated into the Prospectus at the time of flotation last September.  Our
plans to equip the quarry with additional plant and to acquire crushing and
screening plant, and various types of mobile equipment are now well underway.

In line with our strategy for opening satellite coating plants along the south
coast of England, to be supplied by sea with materials from West of England
quarry, we have now signed the lease on the first location, and the necessary
planning permission for that site is being sought.  We are also close to
signing a lease on a second location, and a third site is in the process of
negotiation.

Aram's long established granite quarry, Carnsew, continues to be an important
supplier to the construction industry in the region.  Sales volumes are
benefiting from increased activity in local building projects, the completion
of the ready-mixed concrete facilities, and the aggregate bagging plant.

In road construction materials, sales of coated stone will benefit from the
award of the contract to supply materials for the new St Austell North East
Distributor Road, which commences in September 1998.  The project is the only
significant contract in Cornwall this year, and will amount to approximately
#500,000 of additional sales revenue for Aram, in addition to our regular
contracts.

It seems that there is a general understanding that spending on roads by local
authorities is under threat from cut backs in taxpayers funding.  In my
opinion, however, road usage is increasing, and there is no relief available
by alternative forms of public transport for the South West of England.  As a
result, it is my opinion that the significance of road maintenance work will
increase.

According to a recent survey, local authorities are having to spend 30% of the
#700 million available nationally for structural maintenance, on reactive work
- that is, work required to repair road surface breakdown.  Claims by road
users for damage resulting from the condition of roads have increased by 86%
since 1987, and at the same time visual defects and the need for structural
maintenance have risen by 106%.

Since last reporting to you we are pleased to announce that Mr James Prisk has
been appointed Quarry Manager at Carnsew Quarry.  Mr Prisk joins us from the
Redland Group and his experience will further strengthen our management team
in Cornwall.

Since our launch on AIM last September, an enormous amount of time and effort
has been undertaken by the executive directors in order to meet our goals.  At
the same time, at the production sites, we have gone through a busy period of
production, sales, and growth.  I am also grateful to the efforts of all our
employees during this busy period of change, and I look forward to their
continued support as we develop the business further."

For further information contact:

David Binns, Aram Resources PLC.          Tel: 01453 834026
John Workman, Bretherton Price Elgoods:   Tel:  01242 224433
Ken Rees, Winningtons:                    Tel: 0117 930 8839
                                          Mobile: 0802 466567


END

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