EKA are expecting to mine 3.8 million lbs of Molybdenum this year. For the more sceptical amongst you, read this to confirm:

http://moneyam.uk-wire.com/cgi-bin/articles/200412150700023844G.html

They own the mine and the molydbenum in it has been independently varified as stated in the announcement linked above.

Molydbenum currently trades at around $38.50 per lb, you can check this at:

http://www.monterrico.co.uk/s/MetalPrices.asp

so do the sums 3.8m x $39.25 = $149m = 82m

Eureka Mining's market cap is 26m

In 2006 they expect to pull over 10,000 tonnes (20m lbs) of Moly out of that mine.

On top of all that they have recently aquired a mine in Russia with estimated contained metal of 3.32 million tonnes of copper, 3.26 million
ounces of gold and 98.9 million pounds of molybdenum. They hope to complete the feasibility study for this one in 2006:

http://moneyam.uk-wire.com/cgi-bin/articles/200501130700033169H.html

Here's a little info on Molybdenite that I dug up off the web.



Before Scheele recognized molybdenite as a distinct ore of a new
element in 1778, it was confused with graphite and lead ore. The metal was prepared
in impure form in 1782 by Hjelm. Molybdenum does not occur natively, but is obtained
principally from molybdenite. Wulfenite, and Powellite are also minor commercial ores.
Molybdenum is also recovered as a by-product of copper and tungsten mining operations.
The metal is prepared from the powder made by the hydrogen reduction of purified molybdic
trioxide or ammonium molybdate.

Properties

The metal is silvery white, very hard, but is softer and more ductile than tungsten. It
has a high elastic modulus, and only tungsten and tantalum of the more readily available
metals, have higher melting points. It is a valuable alloying agent, as it contributes to
the hardenability and toughness of quenched and tempered steels. It also improves the
strength of steel at high temperatures.

Uses

It is used in certain nickel based alloys, such as the Hastelloys which
are heat-resistant and corrosion-resistant to chemical solutions. Molybdenum oxidizes at
elevated temperatures. The metal has found recent application as electrodes for
electrically heated glass furnaces and forehearths. The metal is also used in nuclear
energy applications and for missile and aircraft parts. Molybdenum is valuable as a
catalyst in the refining of petroleum. It has found applications as a filament material in
electronic and electrical applications. Molybdenum is an essential trace element in plant
nutrition; some lands are barren for lack of this element in the soil. Molybdenum sulfide
is useful as a lubricant, especially at high temperatures where oils would decompose.
Almost all ultra-high strength steels with minimum yield points up to 300,000
psi contain molybdenum in
amounts from 0.25 to 8%. Biologically, molybdenum as a trace element is
necessary for nitrogen fixation and other metabolic processes.

wilbs

Eureka Mining PLC
20 April 2005




Eureka Mining Plc

Preliminary results

Financial Highlights

Net assets of approximately US$30 million
Mining assets of US$21.7m in Kazakhstan and FSU with net cash balance of
US$8m awaiting investment
Net loss in first year of operation US$82,000
US$12.5m of funds raised through AIM admission and seed placing

Kazakhstan

Almost 10,000m of diamond drill core completed at the Shorskoye
Molybdenum Project
Using our own mining contractors and third party treatment facilities,
first concentrates anticipated from Shorskoye by the end of 2005
Extensive data reviews completed on the Dostyk and Kentau Projects during
the year and targets for development/action in 2005 identified

Russia

Acquisition of 51% of the very large copper/gold project at Chelyabinsk,
with the exclusive rights to purchase 100% of the Project
Internationally recognised independent consultants report that the most
advanced of the three deposits at Chelyabinsk, Miheevskoye, compares more
than favourably with its peers on a technical and commercial basis

Mine planning and permitting work is currently underway with various
recognised consultants with local Russian experience taking roles in the
initial phases

Please find Chairman's letter, Chief Executive Officer's report and financial
results accompanying this highlights page. The Company's annual report and
accounts will be distributed to shareholders this week and available shortly
thereafter on our website.


For more information please contact:

Kevin Foo / David Bartley Leesa Peters / Laurence Read
Eureka Mining Plc Conduit PR
Tel: +44 (0)20 7921 8810 Tel: +44 (0)20 7618 8760

info@eurekamining.co.uk
Tel: +44 (0)20 7618 8708

leesa@conduitpr.com
/
laurence@conduitpr.com
Joe Nally / Nick Morgan
Williams de Broe
Tel: +44 (0)20 7588 7511

www.eurekamining.co.uk



CHAIRMAN'S LETTER
FOR THE YEAR ENDED 31 DECEMBER 2004

Dear Fellow Shareholder

I am very pleased to present your Company's inaugural Annual Report.

In our first year of operations we have made appreciable progress and have not
wavered from the key objectives we set out in the prospectus, which were to:

Develop a significant mining company focused on assets based in
Kazakhstan and the surrounding regions of the Former Soviet Union (FSU).

Acquire additional resource assets which represent realistic commercial
ventures for Eureka.

Allocate resources prudently and efficiently to achieve maximum value
for the Group and its shareholders.

Our special expertise is operating in the FSU and with the abundant resources
base in this huge area, which covers 14% of the earth's land mass and with metal
markets enjoying significant growth, we feel we are in the right place, at the
right time, with the right team.

Since admission to the AIM market, the Company, under the leadership of David
Bartley, has not only achieved significant milestones on the original projects
but has also examined many projects in Kazakhstan, Russia and the surrounding
regions for acquisition opportunities. The focus has very much been on projects
with defined reserves which will offer us early production and near term cash
flow.

When acquisitions have been undertaken, they have been achieved with minimal
upfront financial consideration and within a timeframe in which they can be
adequately reviewed. On this basis, we are able to assess projects efficiently
and cost effectively and, when appropriate, continue with the acquisition or
terminate involvement.

This year, 2005, will be an exciting year. We plan to commence mining and
concentrate production from the Shorskoye Molybdenum Project, following our
decision to 'fast track' this project to take advantage of the high molybdenum
prices. We also plan to complete the acquisition of the exciting Chelyabinsk
Copper/Gold Project in Russia and continue assessment of this very large
deposit. In Kazakhstan, we will be drilling the most prospective targets
identified at our extensive exploration properties.

Annual General Meeting

The second Annual General Meeting of the Company will take place in London on 15
June 2005. The notice of meeting will be set out at the end of the annual report
and accounts, which will be sent to shareholders shortly with a form of proxy.
The Directors look forward to the opportunity to meet as many as possible of our
shareholders following the announcement of the first full results from the
Company.

Future Plans

Eureka remains fully committed to the objectives that we have set. We are
targeting further acquisitions that will provide cash to help preserve our
current capital position and allow us to maintain an aggressive approach to
developing the Company's existing base metal and gold projects. When we find
opportunities that need additional shareholders' funds we will make the case for
such support.

I should like to thank my fellow directors for their support of the Company
during this period. We are indebted to all of our staff for their commitment and
enthusiasm in meeting our objectives and I congratulate the management of Eureka
on an outstanding start to building the Company.

It has been a successful twelve months and the outlook is very exciting. We look
forward to your continued support.

Yours sincerely,

Kevin Foo
Chairman


CEO REPORT
FOR THE YEAR ENDED 31 DECEMBER 2004

I am delighted to report on an outstanding first year of operations for Eureka
Mining Plc, the highlights of which include:

Successful drilling, resource confirmation, testwork and prefeasibility
studies to enable a production decision to be taken on the Shorskoye
Molybdenum Project
Acquisition of the very large copper/gold project in Chelyabinsk, Russia
Exploration and drilling activities over three prospective targets -
Mykubinsk, Central Kazakhstan and Kentau
Establishment of first class technical and commercial teams in Kazakhstan
and Russia
Establishment of offices in Almaty, Semipalatinsk and Chelyabinsk

Shorskoye Molybdenum Project

The Shorskoye Molybdenum Deposit was discovered in 1993 and is located about 90
km south-west of Semipalatinsk in north-eastern Kazakhstan. The region has
existing road, rail and power infrastructure providing direct rail access into
the Chinese and Russian markets.

The zone of mineralisation delineated to date is approximately 600m long x 250m
wide x 200m deep. The zone is open at depth and is comprised of several lenses
of disseminated mineralisation of between 20m and 40 m thick. The mineralisation
is amenable to low waste to ore strip ratios and bulk open pit mining methods.

Metallurgical testwork on ore from the Shorskoye deposit has commenced at the
Kazmekhanobr Institute in Almaty, Kazakhstan. This testwork has defined a
conventional flowsheet for the concentration of molybdenum in the ore. The flow
sheet involves a coarse grind, bulk flotation of the molybdenum, differential
flotation for copper and molybdenum minerals and cleaner flotation to produce a
final concentrate. Shorskoye is expected to be able to produce a minimum
concentrate specification with MoS2 grade of 87-90% (i.e. 48-53% Mo).

The molybdenum concentrate can either be sold directly as a concentrate or
roasted to produce a higher value oxide product, TGMO (Technical Grade Molybdic
Oxide) which would also provide rhenium credits.

At the beginning of 2004, within one month of admission to AIM, we had
established offices in Kazakhstan and had commenced drilling at Shorskoye. By
the end of the first month of operations, we had three diamond drill rigs
operating around the clock at temperatures as low as -20degreesC. By the year
end, almost 10,000m of diamond drill core had been completed at Shorskoye.


Within the last 12 months, we have drilled and delineated a mineable, high grade
JORC compliant resource (Table 1). Bulk samples have been produced for
confirmation testwork, with preparation of concentrate samples for obtaining
expressions of interest from concentrate buyers.

We have initiated an overall project feasibility study to 'fast track' the
development of Shorskoye and we have concluded that this development, on a
limited scale in the short term, was appropriate to take advantage of the
current high molybdenum prices.

Consequently, using our own mining contractors and third party treatment
facilities, we intend to produce the first concentrates from Shorskoye by the
end of 2005.

In parallel with this, we shall complete a major feasibility study on the
overall deposit which includes detailed resource drilling, mining assessments,
metallurgical studies, environmental and permitting work and marketing studies.

Table 1 - Shorskoye East JORC Compliant Resource Estimate

TONNES GRADE CONTAINED METAL JORC
Ore Molybdenum Copper Cut Off Molybdenum Copper Category
Million % % Mo % Million Million
Tonnes Pounds Pounds
25.48 0.087 0.054 Uncut 49.1 30.5 Inferred
13.97 0.113 0.062 0.07 34.8 19.1 Inferred
5.36 0.163 0.070 0.10 19.3 8.3 Inferred
3.11 0.202 0.067 0.12 13.8 4.6 Inferred

Kazakhstan Exploration Projects

At the Dostyk Copper-Gold Projects in Central Kazakhstan, we have reviewed all
historical data and identified at least six drill targets, with particular focus
on base metal projects. During 2004, we drilled five projects and completed
significant field activity on two projects, including the high priority targets
Berezky Central, Maiozek, Akkuduk (porphyry style), Ushtagan (epithermal gold),
Maikain, Baygustam and Burovoy (VMS). We intend to focus on the most promising
of these deposits in 2005/2006.

The Kentau Project in southern Kazakhstan has undergone an extensive data
review, with a comprehensive Geographic Information Systems database being
created. This has enabled us to plan a focused exploration programme on
previously identified targets. Drilling is expected to commence in May 2005 at
two of the best targets, using a large Reverse Circulation (RC) rig.

We entered into an option agreement to acquire the Nova Dnieprovka (Nova) Gold
Mine in northern Kazakhstan. However, after a thorough assessment and
reinterpretation of the project, including the completion of a drilling
programme, we decided not to exercise the option and purchase agreement over the
Nova project.

Our exploration and assessment teams are continuously reviewing potential
projects for Eureka across the FSU and only the very best are selected for
further work.

Chelyabinsk Copper-Gold Projects in Russia

In January 2005, Eureka completed the acquisition of 51% of the Chelyabinsk
Copper/Gold Project in the southern Urals region of Central Russia. This is held
through a UK company which holds 100% of three Russian subsidiary companies,
each of which owns one of the three deposits.

Eureka has completed negotiations with the vendors and now owns the rights to
purchase 100% of the Chelyabinsk copper-gold porphyry deposits. The project
comprises three separate deposits, Miheevskoye, Tominskoye and Taruntinskoye and
drilling to date has delineated total C1 and C2 resources of 609 million tonnes
at 0.74% Cu equivalent. Contained metal is currently estimated to be 3.37
million tonnes of copper, 3.61 million ounces of gold and 99 million pounds of
molybdenum. Preliminary mining studies on two of the deposits have identified
high grade ore in excess of 1% copper equivalent in the initial years, with low
mining strip ratios.

The two largest deposits, Miheevskoye and Tominskoye are copper/porphyry
deposits and are located 200km and 40km respectively from Chelyabinsk.
Taruntinskoye is a skarn deposit located on the Russian-Kazakhstan border,
approximately 100km south of the city. All three deposits are connected by the
same rail network.

A feasibility study is underway, addressing the development of up to a 20
million tonne per annum mine and concentrator and, secondly, up to a 3 million
tonne per annum mine and SX/EW project.

Eureka has completed independent due diligence on the project, through
internationally recognised independent consultants. The results from this work
showed that the most advanced of the deposits, Miheevskoye, compares more than
favourably with its peers on a technical and commercial basis. The other
deposits also have significant merit and are expected to add substantial value
and hence warrant further evaluation.

Many of the key elements required for commercial success of a mine are present
in the Chelyabinsk projects. These include:

Good Infrastructure
Low cost grid power near all project sites
Rail access near all project sites
Gas pipeline access
Flat terrain
Land tenure/ownership (new Russian laws will allow ownership)
Low cost mining - low strip ratios
Competitive metal grades and high grade starter pits
Good concentrate grades and recoveries with no penalty elements; and
Close proximity to local smelters

Eureka is now completing mine planning and permitting with the collection of
technical, social and environmental data for mine development. This work is
currently underway with various recognised consultants with local Russian
experience taking roles in the initial phases.

Current Resources

The resources of the three deposits are as follows:

Table 2 - Project Resources Summary (Russian C1, C2)

Project Name Cu cut-off Resource Estimate Cu equivalent Metal
% Cu (Mt, Cu%, Au g/t) grade % Cu* Mt Cu Moz Au

Miheevskoye 0.3% 327Mt @ 0.45% & 0.22g/t 0.66 1.47 2.31

Tominskoye 0.3% 241Mt @ 0.58% & 0.12g/t 0.73 1.40 0.93

Taruntinskoye 0.5% 41Mt @ 1.22% & 0.28g/t 1.48 0.50 0.37

Total 609Mt @ 0.55% & 0.18g/t 0.74 3.37 3.61

* Inclusive of Mo and Au credits

Our targets for 2005 are to:

Bring Shorskoye Molybdenum Project into production and generate positive
cash flow for the Company
Complete a pre-feasibility study on the Chelyabinsk project and define a
JORC compliant reserve
Continue exploration at all of our Kazakhstan properties with the aim of
identifying a possible new mine
Actively continue to review, assess and acquire properties that meet our
investment criteria; and
Raise appropriate funding for the projects as and when required

Our first full year of operations has been exciting and at times challenging and
as CEO, we could not have achieved the progress we have without the full support
of the Board and the excellent teams in Kazakhstan and Russia. We firmly believe
that we have laid the foundation for the next twelve months and beyond, which
will prove to be memorable for Eureka and its shareholders.

David Bartley
Chief Executive Officer

EUREKA MINING PLC

CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2004

From incorporation
3 October 2003 to 31 December 2004
$ 000's


Operating costs (344)
-----------
Gross loss (344)

Administrative expenses (1,015)
Exchange gains 901
-----------

Operating loss (458)

Other operating income:
Interest receivable and similar income 437

Interest payable and similar charges (1)
-----------

Loss on ordinary activities before
taxation (22)

Tax on loss on ordinary activities (60)
-----------
Loss for the financial period (82)
===========

Full and diluted earnings per share (in
cents) (0.05)
===========

The profit and loss account has been prepared on the basis that all operations
are continuing operations.


EUREKA MINING PLC

CONSOLIDATED STATEMENT OF RECOGNISED GAINS AND LOSSES

FOR THE PERIOD ENDED 31 DECEMBER 2004


2004
$ 000's

Currency translation gain 441
----------

Loss for the period (82)
----------
----------
Total recognized gains and losses in the period 359
==========





EUREKA MINING PLC

BALANCE SHEETS

AS AT 31 DECEMBER 2004

Group Company
2004 2004
$000's $000's
Fixed assets
Intangible assets 21,691 -
Tangible assets 204 17
Investments - 15,823
----------- -----------
21,895 15,840
----------- -----------

Current assets
Stocks 14 -
Debtors 304 5,932
Cash at bank and in hand 8,102 7,936
----------- -----------
8,420 13,868

Creditors: amounts falling due within one year (329) (163)
----------- -----------
Net current assets 8,091 13,705
----------- -----------


----------- -----------
Net Assets 29,986 29,545
=========== ===========

Capital and reserves

Called up share capital 301 301
Share premium account 29,326 29,326
Translation reserve 441 -
Profit and loss deficit (82) (82)
----------- -----------
Shareholders funds - Equity 29,986 29,545
=========== ===========


The financial statements were approved by the Board on 19th April 2005.




EUREKA MINING PLC

CONSOLIDATED CASH FLOW STATEMENT

FOR THE PERIOD ENDED 31 DECEMBER 2004



2004
Notes $000's


Net cash outflow from operating activities A (203)
-----------

Returns on investments and servicing of finance

Interest received 437
Interest paid (1)
-----------
Net cash inflow from returns on investments and servicing of
finance 436
-----------

Tax paid -

Capital expenditure and financial investment

Payments to acquire tangible assets (211)
Payments to acquire intangible assets ( 5,741)
Payments to acquire subsidiaries (523)
-----------

Net cash outflow from capital expenditure ( 6,475)
-----------

Net cash outflow before management of liquid resources and
financing ( 6,242)

Financing
Issue of shares 14,326
-----------

Net cash inflow from financing 14,326
-----------

Increase in cash in the period B 8,084
===========



EUREKA MINING PLC

NOTES TO THE CONOLIDATED CASH FLOW STATEMENT

FOR THE PERIOD ENDED 31 DECEMBER 2004

A. Reconciliation of operating loss to net cash outflow from operating
activities

2004
$000's

Operating loss (458)
Depreciation of tangible assets 16
Translation gain 441
Increase in stocks (14)
Increase in debtors (304)
Increase in creditors 116
-----------
Net cash outflow from operating activities (203)
===========

B. Analysis of net cash

Acquisitions Cash flow 31 December 2004
$000's $000's $000's

Net cash at bank and in hand 18 8,084 8,102
========= ========= ===========



C. Reconciliation of net cash flows to movement in net debt

2004
$000's

Increase in cash in the year 8,084
Companies acquired 18
-----------
8,102
Net debt at start of year -
-----------
Net debt at end of year 8,102
===========


wilbs

On the way up

24,000 buy reckon that was funds?

Lets hope more news follows market seems less hostile for the moment this week

No, that was me!

The key section is:

'We have initiated an overall project feasibility study to 'fast track' the
development of Shorskoye and we have concluded that this development, on a
limited scale in the short term, was appropriate to take advantage of the
current high molybdenum prices.'

To me that reads that they are going to mine it, and that means positive cash flow this year. If the moly prices stay high and they are able to acheive their goal of 3.8million lbs of moly, then profits for the year should come in at approx 60m. Market cap is still only 20m.

Arrive early in order to avoid dissappointment.

Tallsiii

Thanks Tallsiii. Interesting.

Cheers, Madison

Blimey tallsii you dont mess around!!!!!

I don't find gems like this one very often.

U could retire on this one then IF pe will be 0.1

Yes, or start a hedge fund!!

The outlook of 2006 is production of 20 million pounds of moly. At a conservative price forecast of $15 per pound and a cost of $5 per pound, that leads to profits 200 million dollars. And that is before you look at the billions of dollars worth of copper in the Chelyabinsk mine in Russia.

This one is going to be big, whatever way you look at it!!!

who has got hard up and sold their 39 shares??
come on, own up!!
wilbs

OK Siii
I am finally convinced re EKA but feel this to be a bit of a long term investment. Are you expecting much movement in the short term?

Are you still keen on VML also?

Dan

Daniel, I would expect this share to rise several times over before the end of this year. But you are right that it is long term as it should keep on rising into 2006.

The company has not yet spent any time or money on marketing itself to the city. As it does so the share price should rise and as it if achieves what it says, then it should go up further still.

Am still very much into Vane, check out the board.

Refresh

Dear Mr Ransley,


We plan to promote after the Shorskoye feasibility study has been completed, in
approximately 8 weeks. We cannot give profits at this stage until the
feasibility study is finalised.

Thank you for your comments.

Michelle Surtees-Myers
Eureka Mining Plc
Hatfield House
1st Floor
52/54 Stamford Street
London SE1 9LX
Tel: +44 (0)20 7921 8810
Fax: +44 (0)20 7921 8811
e-mail: michelle.myers@eurekamining.co.uk



-----Original Message-----
From: James Ransley [mailto:jransley@hotmail.co.uk]
Posted At: 24 April 2005 09:04
Posted To: Eureka_Info
Conversation: Shareholder
Subject: Shareholder

I understand that you have stated that you do not intend to promote the
company until the final results arrive from the molybdenum project. When are
these results expected and will the company release a statement saying
should the market conditions remain unchanged the company expects a profit
of xxxxxxxx as Biofuels recently had. I believe the shareholders would
greatly appreciate it as the market is becoming increasingly hostile to
small miners who are not yet producing. I have great faith in your company
and hope to hear the final results from the molybdenum mine soon.

Thankyou for your time James Ransley

jransley@hotmail.co.uk

Nice one Jimbob. The 8 week timescale is consistent with their AGM on 14th June. I plan to attend.

great comments.

cheers for the updates tallsiii. you are slowly but surely selling me on this one....maybe next week.

So we reckon the news be out just before AGM to please shareholders

or just after?

B4
Friday 10th
Monday 13th
Later

What do U think

Has it reached bottom now?

3 days of small rises now U think we've hit bottom ?