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Horizonte Minerals plc (‘Horizonte’ or ‘the Company’) – Financial Results for the First Quarter 2012 and Management Discussion and Analysis

May 16, 2012

TORONTO, May 16, 2012 /PRNewswire/ – Horizonte, the AIM and TSX quoted
Brazilian focused exploration and development company, announces that
it has today published its unaudited financial results for the three
month periods ending 31 March 2012.  The Management Discussion and
Analysis for the same periods have also been published.

In addition to this document, both of the above have been posted on the
Company’s website at www.horizonteminerals.com and are also available on SEDAR at www.sedar.com.

Highlights for the First Quarter of 2012

        --  Strong cash position: £ 4.87 million as at end-March 2012
        --  NI 43-101 compliant resource update released for Araguaia -
            Indicated Resource of 39.3 million tonnes grading 1.39% nickel
            ('Ni') using 0.95% Ni cut-off together with Inferred Resource
            of 60.9 million tonnes averaging 1.22% Ni, both using 0.95% Ni
            cut-off
        --  High grade zones defined in the Indicated category at a 1.20%
            Ni cut-off grade total 24.2 million tonnes averaging 1.6% Ni -
            important for the economics of early mine production
        --  First phase metallurgical test work complete at Araguaia with
            positive results including commercial grade ferronickel in
            laboratory smelting tests and 93% nickel extraction in
            atmospheric tank leach tests
        --  Preliminary Economic Assessment for Araguaia on track for
            release at the end of Q2 2012
        --  Consolidating land position around Araguaia via acquisition
            through all share transactions of the Vila Oito and Floresta
            projects from TSX listed Lara Exploration Ltd

Financial Highlights

     _____________________________________________________________________
    |                             |  3 months ended 31|  3 months ended 31|
    |                             |         March 2012|         March 2011|
    |                             |                  £|                  £|
    |_____________________________|___________________|___________________|
    |Profit / (loss from          |          (690,229)|          (190,358)|
    |continuing operations        |                   |                   |
    |_____________________________|___________________|___________________|
    |Capitalised Exploration      |          (586,684)|          (685,076)|
    |expenditure                  |                   |                   |
    |_____________________________|___________________|___________________|
    |Cash at end of period        |          4,871,878|         10,775,560|
    |_____________________________|___________________|___________________|
    |Total assets at end of period|         33,365,093|         36,462,461|
    |_____________________________|___________________|___________________|


                                 Horizonte Minerals plc
                   Condensed Consolidated Interim Financial Statements
                        for the three months ended 31 March 2012

    Condensed consolidated statement of comprehensiveincome

                                                           3 monthsended
                                                              March31

                                                       2012            2011

                                                  Unaudited       Unaudited

                                      Notes               £               £

    Continuing operations                                                  

    Revenue                                               -               -

    Cost of sales                                         -               -

    Gross profit                                          -               -

    Administrative expenses                       (475,239)       (454,600)

    Charge for stock options                      (116,378)        (46,560)
    granted

    Toronto Stock Exchange                         (37,050)               -
    listing fees and associated
    costs

    (Loss)/gain on foreign                         (76,853)        (13,442)
    exchange

    Other operating income                5          28,948         327,110

    Loss from operations                          (676,572)       (187,492)

    Finance income                                   28,308          42,782

    Finance costs                                  (41,965)        (45,648)

    Loss before taxation                          (690,229)       (190,358)

    Taxation                                              -               -

    Loss for the period from                      (690,229)       (190,358)
    continuing operations

    Other comprehensive income                                             

    Exchange differences on                       (158,226)       (284,471)
    translating foreign
    operations

    Total comprehensive income
    for the period

    attributable to equity                        (848,455)       (474,829)
    holders of the Company

    Earnings per share from
    continuing
    operationsattributable
    to the equity holders of
    the Company

    Basic and diluted loss per            9         (0.243)         (0.072)
    share  (pence per share)

    Condensed
    consolidated
    statement
    offinancial
    position

                                                 31 March       31 December
                                                     2012              2011

                                                Unaudited           Audited

                                  Notes                 £                 £

    Assets                                                                 

    Non-current assets                                                     

    Intangible assets                 6        21,119,128        19,355,457

    Property, plant &                             118,871           139,264
    equipment

    Deferred taxation                           7,203,776         7,243,524

                                               28,441,775        26,738,245

    Current assets                                                         

    Trade and other                                51,440           172,906
    receivables

    Cash and cash                               4,871,878         5,856,949
    equivalents

                                                4,923,318         6,029,855

    Total assets                               33,365,093        32,768,100

    Equity and
    liabilities

    Equity attributable
    to owners of the
    parent

    Issued capital                    7         2,880,600         2,795,600

    Share premium                     7        19,984,047        18,772,797

    Other reserves                              8,375,058         8,533,284

    Accumulated losses                        (4,273,866)       (3,700,015)

    Total equity                               26,965,839        26,401,666

    Liabilities                                                            

    Non-current
    liabilities

    Contingent                                  2,757,330         2,715,365
    consideration

    Deferred taxation                           3,130,910         3,148,185

                                                5,888,240         5,863,550

    Current liabilities                                                    

    Trade and other                               511,014           502,884
    payables

    Total liabilities                           6,399,254         6,366,434

    Total equity and                           33,365,093        32,768,100
    liabilities

    Condensed statement of changes in shareholders' equity

                                              Attributable to the owners of the parent

                            Share          Share     Accumulated          Other          Total
                          capital        premium          losses       reserves              £
                                £              £               £              £

    As at 1             2,465,605     11,283,355     (2,184,252)     10,933,292     22,498,000
    January 2011

    Comprehensive
    income

    Loss for the                -              -       (190,358)              -      (190,358)
    period

    Other
    comprehensive
    income

    Currency                    -              -               -      (284,471)      (284,471)
    translation
    differences

    Total                       -              -       (190,358)      (284,471)      (474,829)
    comprehensive
    income

    Transactions
    with owners

    Share based                 -              -          46,560              -         46,560
    payments

    Issue of              329,995      7,919,880               -              -      8,249,875
    ordinary
    shares

    Issue costs                 -      (430,438)               -              -      (430,438)

    Total                 329,995      7,489,442          46,560              -      7,865,997
    transactions
    with owners

    As at 31            2,795,600     18,772,797     (2,328,050)     10,648,821     29,889,168
    March 2011

    As at 1             2,795,600     18,772,797     (3,700,015)      8,533,284     26,401,666
    January 2012

    Comprehensive
    income

    Loss for the                -              -       (690,229)              -      (690,229)
    period

    Other
    comprehensive
    income

    Currency                    -              -               -      (158,226)      (158,226)
    translation
    differences

    Total                       -              -       (690,229)      (158,226)      (848,455)
    comprehensive
    income

    Transactions
    with owners

    Issue of               85,000      1,211,250               -              -      1,296,250
    ordinary
    shares

    Share based                 -              -         116,378              -        116,378
    payments

    Total                  85,000      1,211,250         116,378              -      1,412,628
    transactions
    with owners

    As at 31            2,880,600     19,984,047     (4,273,866)      8,375,058     26,965,839
    March 2012

    Condensed Consolidated Statement
    of Cash Flows

                                                         3 months ended
                                                            31 March

                                                     2012             2011

                                                Unaudited        Unaudited

                                                        £                £

    Cash flows from operating
    activities

    Loss before taxation                        (690,228)        (190,358)

    Interest income                              (28,308)         (42,782)

    Finance costs                                  41,965           45,648

    Exchange differences                           57,258                -

    Employee share options charge                 116,378           46,560

    Depreciation                                    1,631            2,233

    Operating loss before changes in            (501,304)        (138,699)
    working capital

    Increase in trade and other                 (223,077)          (8,750)
    receivables

    Increase / (decrease)  in trade               354,944          (4,678)
    and other payables

    Net cash outflow from operating             (369,437)        (152,127)
    activities

    Cash flows from investing
    activities

    Net purchase of intangible assets           (586,684)        (685,076)

    Purchase of property, plant and                     -         (96,515)
    equipment

    Interest received                              28,308           42,782

    Net cash used in investing                  (558,376)        (738,809)
    activities

    Cash flows from financing
    activities

    Proceeds from issue of  ordinary                    -        7,819,437
    shares (net of issue costs)

    Net cash inflow from financing                      -        7,819,437
    activities

    Net (decrease)/increase in cash             (927,813)        6,928,501
    and cash equivalents

    Cash and cash equivalents at                5,856,649        3,847,031
    beginning of period

    Exchange on cash and cash                    (57,258)               28
    equivalents

    Cash and cash equivalents at end            4,871,878       10,775,560
    of the period

Major non-cash transactions

On 8 July 2011 Horizonte Minerals plc (“the Company”) signed a sale and
purchase agreement with Lara Exploration Limited for the purchase of
the Vila Oito and Floresta nickel laterite projects. The consideration
for the transaction was 8,500,000 ordinary shares in the Company and
the agreement was contingent on the successful transfer of the legal
title to the licences by the Departamento Nacional de Produção Mineral
(‘DNPM’) in Brazil.

On 7 February 2012 the Company received notification that legal title to
the licence areas had been successfully transferred and therefore
issued 8,500,000 fully paid ordinary shares to Lara Exploration Limited
in consideration for 100% of the Vila Oito and Floresta nickel laterite
projects.

Notes to the Financial Statements

1. General information

The principal activity of the Company and its subsidiaries (together
‘the Group’) is the exploration and development of precious and base
metals. There is no seasonality or cyclicality of the Group’s
operations.

The Company’s shares are listed on the Alternative Investment Market of
the London Stock Exchange (AIM) and on the Toronto Stock Exchange
(TSX). The Company is incorporated and domiciled in the United Kingdom.
The address of its registered office is 26 Dover Street London W1S 4LY.

2. Basis of preparation

The condensed interim financial statements have been prepared using
accounting policies consistent with International Financial Reporting
Standards and in accordance with International Accounting Standard 34 Interim Financial Reporting. The condensed interim financial statements should be read in
conjunction with the annual financial statements for the year ended 31
December 2011, which have been prepared in accordance with
International Financial Reporting Standards (IFRS) as adopted by the
European Union.

The condensed interim financial statements set out above do not
constitute statutory accounts within the meaning of the Companies Act
2006. They have been prepared on a going concern basis in accordance
with the recognition and measurement criteria of International
Financial Reporting Standards (IFRS) as adopted by the European Union.
Statutory financial statements for the year ended 31 December 2011 were
approved by the Board of Directors on 21 February 2012 and delivered to
the Registrar of Companies. The report of the auditors on those
financial statements was unqualified.

The condensed interim financial statements of the Company have not been
audited or reviewed by the Company’s auditor, Littlejohn LLP.

Going concern

The Directors, having made appropriate enquiries, consider that adequate
resources exist for the Group to continue in operational existence for
the foreseeable future and that, therefore, it is appropriate to adopt
the going concern basis in preparing the condensed interim financial
statements for the period ended 31 March 2012.

Risks and uncertainties

The Board continuously assesses and monitors the key risks of the
business. The key risks that could affect the Group’s medium term
performance and the factors that mitigate those risks have not
substantially changed from those set out in the Group’s 2011 Annual
Report and Financial Statements, a copy of which is available on the
Group’s website: www.horizonteminerals.com. The key financial risks are liquidity risk, foreign exchange risk,
credit risk, price risk and interest rate risk.

Critical accounting estimates

The preparation of condensed interim financial statements requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the end of the reporting period. Significant items
subject to such estimates are set out in note 4 of the Group’s 2011
Annual Report and Financial Statements. The nature and amounts of such
estimates have not changed significantly during the interim period.

3. Significant accounting policies

The condensed interim financial statements have been prepared under the
historical cost convention as modified by the revaluation of certain of
the subsidiaries’ assets and liabilities to fair value for
consolidation purposes.

The same accounting policies, presentation and methods of computation
have been followed in these condensed interim financial statements as
were applied in the preparation of the Group’s Financial Statements for
the year ended 31 December 2011, except for the impact of the adoption
of the Standards and interpretations described below.

The preparation of condensed interim financial statements in conformity
with IFRS requires the use of certain critical accounting estimates. 
It also requires management to exercise its judgement in the process of
applying the Group’s Accounting Policies.  The areas involving a higher
degree of judgement or complexity, or areas where assumptions and
estimates are significant to the condensed interim financial
statements, are disclosed in Note 4 of the Group’s 2011 Annual Report
and Financial Statements.

3.1. Changes in accounting policy and disclosures

Changes in accounting policy and disclosures

(a) New and amended standards adopted by the Group

Amendments to IFRS 7 “Financial Instruments: Disclosures” are designed
to help users of financial statements evaluate the risk exposures
relating to transfers of financial assets and the effect of those risks
on an entity’s financial position.

(b) New standards, amendments and interpretations issued but not
effective for the financial year beginning 1 January 2012 and not early
adopted

The Group’s assessment of the impact of these new standards and
interpretations is set out below.

IFRS 10 “Consolidated Financial Statements” builds on existing
principles by identifying the concept of control as the determining
factor in whether an entity should be included within the consolidated
financial statements of the parent company. The standard provides
additional guidance to assist in the determination of control where
this is difficult to assess. This standard is effective for periods
beginning on or after 1 January 2013, subject to EU endorsement. The
Directors are assessing the possible impact of this standard on the
Group’s Financial Statements.

IFRS 11 “Joint Arrangements” provides for a more realistic reflection of
joint arrangements by focusing on the rights and obligations of the
arrangement, rather than its legal form (as is currently the case). 
The standard addresses inconsistencies in the reporting of joint
arrangements by requiring a single method to account for interests in
jointly controlled entities.  This standard is effective for periods
beginning on or after 1 January 2013, subject to EU endorsement. The
Directors are assessing the possible impact of this standard on the
Group’s Financial Statements.

IFRS 12 “Disclosure of Interests in Other Entities” is a new and
comprehensive standard on disclosure requirements for all forms of
interests in other entities, including joint arrangements, associates,
special purpose vehicles and other off balance sheet vehicles.  This
standard is effective for periods beginning on or after 1 January 2013,
subject to EU endorsement. The Directors are assessing the possible
impact of this standard on the Group’s Financial Statements.

IFRS 13 “Fair Value Measurement” improves consistency and reduces
complexity by providing, for the first time, a precise definition of
fair value and a single source of fair value measurement and disclosure
requirements for use across IFRSs.  It does not extend the use of fair
value accounting, but provides guidance on how it should be applied
where its use is already required or permitted by other standards. 
This standard is effective for periods beginning on or after 1 January
2013, subject to EU endorsement. The Directors are assessing the
possible impact of this standard on the Group’s Financial Statements.

IAS 27 “Separate Financial Statements” replaces the current version of
IAS 27 “Consolidated and Separate Financial Statements” as a result of
the issue of IFRS 10 (see above). This revised standard is effective
for periods beginning on or after 1 January 2013, subject to EU
endorsement. The Directors are assessing the possible impact of this
standard on the Group’s Financial Statements.

IAS 28 “Investments in Associates and Joint Ventures” replaces the
current version of IAS 28 “Investments in Associates” as a result of
the issue of IFRS 11 (see above).  This revised standard is effective
for periods beginning on or after 1 January 2013, subject to EU
endorsement. The Directors are assessing the possible impact of this
standard on the Group’s Financial Statements.

Amendments to IAS 1 “Presentation of Financial Statements” require items
that may be reclassified to the profit or loss section of the income
statement to be grouped together within other comprehensive income
(OCI).  The amendments also reaffirm existing requirements that items
in OCI and profit or loss should be presented as either a single
statement or two consecutive statements.  These amendments are
effective for periods beginning on or after 1 July 2012, subject to EU
endorsement. The Directors are assessing the possible impact of these
amendments on the Group’s Financial Statements.

Amendments to IAS 19 “Employment Benefits” eliminate the option to defer
the recognition of gains and losses, known as the “corridor method”
streamline the presentation of changes in assets and liabilities
arising from defined benefit plans, including requiring remeasurements
to be presented in other comprehensive income; and enhance the
disclosure requirements for defined benefit plans, providing better
information about the characteristics of defined benefit plans and the
risks that entities are exposed to through participation in those
plans.  These amendments are effective for periods beginning on or
after 1 January 2013, subject to EU endorsement, and are not expected
to have an impact on the Group’s Financial Statements.

IFRIC 20 “Stripping Costs in the Production Phase of a Surface Mine”
clarifies when stripping costs incurred in the production phase of a
mine’s life should lead to the recognition of an asset and how that
asset should be measured, both initially and in subsequent periods.
This interpretation is effective for periods beginning on or after 1
January 2013, subject to EU endorsement. The Directors are assessing
the possible impact of this standard on the Group’s Financial
Statements.

Amendments to IFRS 7 “Financial Instruments: Disclosures” require
disclosure of information that will enable users of financial
statements to evaluate the effect or potential effect of netting
arrangements, including rights of set-off associated with the entity’s
recognised financial assets and recognised financial liabilities, on
the entity’s financial position.  This interpretation is effective for
periods beginning on or after 1 January 2013 and interim periods within
those annual periods, subject to EU endorsement. The Directors are
assessing the possible impact of this standard on the Group’s Financial
Statements.

Amendments to IFRS 9 “Financial Instruments” and IFRS 7 “Financial
Instruments: Disclosures” require entities to apply IFRS 9 for annual
periods beginning on or after 1 January 2015 instead of on or after 1
January 2013, subject to EU endorsement.  Early application continues
to be permitted.  The amendments also require additional disclosures on
transition from IAS 39 “Financial Instruments: Recognition and
Measurement” to IFRS 9.

Amendments to IAS 32 “Financial Instruments: Presentation” add
application guidance to address inconsistencies identified in applying
some of the criteria when offsetting financial assets and financial
liabilities.  This includes clarifying the meaning of “currently has a
legally enforceable right of set-off” and that some gross settlement
systems may be considered equivalent to net settlement. This
interpretation is effective for annual periods beginning on or after 1
January 2014, subject to EU endorsement, and is not expected to have an
impact on the Group’s Financial Statements.

Amendments to IAS 12 “Income Taxes” introduce a presumption that
recovery of the carrying amount of an asset measured using the fair
value model in IAS 40 “Investment Property” will normally be through
sale. This interpretation is effective for annual periods beginning on
or after 1 January 2012, subject to EU endorsement, and is not expected
to have an impact on the Group’s Financial Statements, and is not
expected to have an impact on the Group’s Financial Statements.

4. Segmental reporting

The Company operates in three geographical areas, UK, Brazil, and Peru,
with operations managed on a project by project basis within each
geographical area. Activities in the UK are mainly administrative in
nature whilst the activities in Brazil and Peru relate to exploration
and evaluation work. The reports used by the chief operating decision
maker are based on these geographical segments.


    2012                             UK         Brazil          Peru          Total

                               3 months       3 months             3       3 months
                                  ended          ended        months          ended
                               31 March       31 March         ended       31 March
                                   2012           2012            31           2012
                                                               March
                                                                2012

                                      £              £             £              £

    Revenue                           -              -             -              -

    Administrative            (298,561)      (172,642)       (4,036)      (475,239)
    expenses

    Loss on                    (73,601)        (3,252)             -       (76,853)
    foreign
    exchange

    Other                        28,948              -             -         28,948
    operating
    Income

    Loss from                 (343,214)      (175,894)       (4,036)      (523,144)
    operations per

    reportable
    segment

    Inter segment                               80,075        16,184         96,259
    revenues

    Depreciation                  (551)        (1,080)             -        (1,631)
    charges

    Additions to                      -      1,901,696             -      1,901,696
    non-current
    assets

    Reportable                5,055,984     27,501,440       807,669     33,365,093
    segment assets

    Reportable                3,045,438      3,353,816             -      6,399,254
    segment
    liabilities

    2011                             UK         Brazil          Peru          Total

                               3 months       3 months             3       3 months
                                  ended          ended        months          ended
                               31 March       31 March         ended       31 March
                                   2011           2011            31           2011
                                                               March
                                                                2011

                                      £              £             £              £

    Revenue                           -              -             -              -

    Administrative            (399,347)       (49,250)       (6,003)      (454,600)
    expenses

    Profit/(loss)              (13,442)              -             -       (13,442)
    on foreign
    exchange

    Other                       327,110              -             -        327,110
    operating
    Income

    Loss from
    operations per

    reportable                 (85,679)       (49,250)       (6,003)      (140,932)
    segment

    Inter segment                     -         32,792        12,895         45,687
    revenues

    Depreciation                  (182)        (2,051)             -        (2,233)
    charges

    Additions to                      -        798,219             -        798,219
    non-current
    assets

    Reportable               10,906,606     24,785,578       770,277     36,462,461
    segment assets

    Reportable                2,906,196      3,667,097             -      6,573,293
    segment
    liabilities

A reconciliation of adjusted loss from operations per reportable segment
to loss before tax is provided as follows:


                                     3 months ended         3 months ended
                                      31 March 2012          31 March 2011

                                                  £                      £

    Loss from operations                  (523,144)              (140,932)
    per reportable segment

    Charge for stock                      (116,378)               (46,560)
    options

    TSX listing fees and                   (37,050)
    associated costs

    - Finance income                         28,308                 42,782

    - Finance costs                        (41,965)               (45,648)

    Loss for the period                   (690,229)              (190,358)
    from continuing
    operations

5. Other operating income

Other operating income for the three months ended 31 March 2012
comprised management fees of  £ 28,948 (three months ended 31 March
2011: £ 14,610).

Also included in other operating income for the three months ended 31
March 2011 is US$500,000 relating to an option payment received from
Anglo Pacific Group plc (“Anglo”). On 12 January 2011 the Company
signed an option agreement with Anglo whereby Anglo received the option
to acquire a Net Smelter Royalty (“NSR”) on future nickel revenues of
the Araguaia project in exchange for the option payment.

If Anglo chooses to exercise the option, which is exercisable upon
completion of a pre-feasibility study on the site, it will pay
Horizonte US$12.5m and shall receive a NSR. The NSR will be at a rate
of 1.5% of nickel revenue produced up to 30,000 tonnes per annum,
reduced by 0.02% for every 1,000 tonnes per annum above this rate. The
rate will be fixed at a minimum rate of 1.1% for production of 50,000
tonnes per annum and above.

6. Intangible assets

Intangible assets comprise exploration and evaluation costs and
goodwill. Exploration and evaluation costs comprise internally
generated and acquired assets. Additions are net of amounts payable by
the Group’s strategic partners under various joint venture agreements,
amounting to £ 290,145 (three months ended 31 March 2012: £159,846).


    Group                                    Exploration
                              Goodwill               and            Total
                                              evaluation
                                                   costs

                                     £                 £                £

    Cost                                                                 

    At 1                       387,378        18,968,079       19,355,457
    January
    2012

    Additions                        -         1,901,696        1,901,696

    Exchange                   (2,107)         (135,918)        (138,025)
    rate
    movements

    Net book                   385,271        20,733,857       21,119,128
    amount at
    31 March
    2012

7. Share Capital


    Issued                                      Ordinary            Share
    and                                           shares          premium
    fully                      Number of               £                £            Total
    paid                          shares                                                 £

    At 1                     279,559,980       2,795,600       18,772,797
    January
    2012                                                                        21,568,397

    Issue of                   8,500,000          85,000        1,211,250
    ordinary
    shares                                                                       1,296,250

    Issue                              -               -                -
    costs                                                                                -

    At 31                    279,559,980       2,880,600       19,984,047
    March
    2012                                                                        22,864,647

8. Dividends

No dividend has been declared or paid by the Company during the three
months ended 31 March 2012 (2011: nil).

9. Loss per share

The calculation of the basic and diluted loss per share of 0.243 pence
for the 3 months ended 31 March 2012 (31 March 2011 loss per share:
0.072 pence) is based on the loss attributable to the equity holders of
the Company of £ 690,229 for the three month period ended 31 March 2012
(31 March 2011: loss £190,358) divided by the weighted average number
of shares in issue during the period of 284,510,529 (weighted average
number of shares for the 3 months ended 31 March 2011: 264,526,874).

Details of share options that could potentially dilute earnings per
share in future periods are disclosed in the notes to the Group’s
Annual Report and Financial Statements for the year ended 31 December
2011.

10. Ultimate controlling party

The Directors believe there to be no ultimate controlling party.

11. Related party transactions

The nature of related party transactions of the Group has not changed
from those described in the Group’s Annual Report and Financial
Statements for the year ended 31 December 2011.

12. Commitments

The Group had capital expenditure contracted for at the end of the
reporting period but not yet incurred of £531,549 relating to
intangible exploration assets. All other commitments remain as stated
in the Group’s Annual Financial Statements for the year ended 31
December 2011.

13. Events after the reporting period

There are no events which have occurred after the reporting period which
would be material to the financial statements.

14. Approval of interim financial statements

The Condensed interim financial statements were approved by the Board of
Directors on 15 May 2012.

HORIZONTE MINERALS PLC
MANAGEMENT’S DISCUSSION AND ANALYSIS
THREE MONTHS ENDED 31(ST) MARCH 2012

BACKGROUND

This Management’s Discussion and Analysis of the financial position and
results of operations is prepared as at 15(th) May 2012 and should be read in conjunction with the unaudited Condensed
Consolidated Interim Financial Statements of Horizonte Minerals plc as
at March 31(st) 2012 which have been prepared using accounting policies consistent with
International Financial Reporting Standards as adopted by the European
Union and in accordance with International Accounting Standard 34 Interim Financial Reporting.

Horizonte Minerals plc (the “Company”) is a publicly listed company on
the Alternative Investment Market (“AIM”) of the London Stock Exchange
and on the Toronto Stock Exchange (the “TSX”), in both instances under
the symbol “HZM”.

COMPANY OVERVIEW

The Company is actively engaged in the exploration and development of
nickel and gold projects principally in Brazil.

The Company has two committed major mining partners: Teck Resources
Limited, a major strategic shareholder in the Company, and AngloGold
Ashanti Limited (“AngloGold”), a JV partner on the Falcao Project.

The principal project of the Company is the wholly-owned Araguaia Nickel
Project (“Araguaia Project” or “Araguaia”), located in Pará State in
Brazil.

In January 2012 the Company announced a resource update at Araguaia
comprising an Indicated Mineral Resource of 39.3 million tonnes grading
1.39% nickel together with an Inferred Mineral Resource of 60.9 million
tonnes grading 1.22% nickel, both at a 0.95% nickel cut-off. The
mineral resources have been estimated and classified according to the
CIM definitions as referred to by Canadian National Instrument 43-101
(“NI 43-101″).

The Company has 2 joint ventures with AngloGold:


    i)     An exploration joint venture (the "Strategic JV") signed in
           September 2009 with AngloGold to generate and develop new gold
           targets within two regional areas of Brazil.

    ii)    An additional joint venture with AngloGold was signed in August
           2010 whereby AngloGold  can earn into 51% of the Falcao gold
           project ("Falcao") owned by the Company by expending US$4.5
           million over three years with the right to earn a further 19% by
           taking the project to Pre-feasibility Study. A 3,663 metre
           drilling programme has been completed to test a 4km long by 0.5
           km wide gold in soil anomaly which is being followed up by an
           Induced Polarisation (IP) geophysical survey and further soil
           geochemical sampling. The Company is operator until vesting is
           completed.

The Company’s near term focus is to:

        --  continue with the second phase of metallurgical processing test
            work at Araguaia, to include upgrading of ore and atmospheric
            tank leach optimisation tests.
        --  complete a Preliminary Economic Assessment ('PEA') on Araguaia
            in Q2 2012.
        --  continue to move ahead with the Environmental Impact Assessment
            ('EIA') at Araguaia, to be completed in late 2012.
        --  advance Q2 fieldwork at Falcao, including a ground Induced
            Polarisation geophysical survey over the principle mineralised
            zone, together with an expansion of the soil geochemical
            sampling with the aim to expand the target to the east.
            Followed by a second phase infill drill programme in
            partnership with AngloGold.

The Company’s longer term focus remains to:

        --  following the results of the PEA, initiate a Prefeasibility
            Study in later in 2012 for the Araguaia Project using a proven
            metallurgical process.
        --  conduct further geological assessment at Araguaia in order,
            where applicable, to improve knowledge on higher grade zones,
            increase overall resource tonnage and upgrade mineral resource
            estimates from Inferred Mineral Resources to Indicated Mineral
            Resources;
        --  continue with the diamond drill programme at Falcao, subject to
            positive results from the geophysics and soil evaluation.

HIGHLIGHTS FOR THE FIRST QUARTER OF 2012

As previously disclosed in the Management Discussion and Analysis dated
21(st) February 2012:

        --  On 10 January 2012, the Company announced a NI 43-101 compliant
            mineral resource update for the Araguaia Project (see Company
            Overview).
        --  On 17 January 2012, the Company announced the departure from
            the Board of Mr. Nicholas Winer and the appointment of Dr. Owen
            Bavinton as non-executive Director.
        --  On 7 February 2012, the Company announced the transfer of the
            Floresta and Vila Oito licences from affiliates of Lara
            Exploration Ltd ('Lara'), and the issue of 8.5 million new
            shares in the Company to Lara as consideration.
        --  On 16 February 2012, the Company announced the appointment of
            Dr Philip Mackey as Senior Metallurgical Advisor.

Furthermore:

        --  On 22 February 2012 the Company announced its financial results
            for the year ended 31st December 2011
        --  On 24 February 2012 the Company announced the filing on Sedar
            entitled "Geology and Mineral Resources of the Araguaia Nickel
            Project, NI 43-101 Technical Report"
        --  On 22 March 2012 the Company announced that it had held its
            Annual General Meeting of Shareholders on March 21st and that
            all resolutions had been duly passed.

ARAGUAIA PROJECT

The Company owns 100 per cent of the advanced Araguaia Project located
in southern Parà State to the south of the Carajas mineral district of
northern Brazil; the Company believes the project has the potential to
deliver a resource with size and grades comparable to other nickel
laterite projects and mining operations in northern Brazil. Several
significant nickel laterite deposits occur within this region of
Brazil, including Xstrata’s Serra do Tapa/Vale dos Sonhos deposits that
are also located within the Araguaia Fold Belt 80km to the north of the
project area.

The Company has a team on site and has completed its first phase
resource drilling campaign on the Araguaia Project.

In March 2011 the Company announced a NI 43-101 compliant maiden
resource of 76.6Mt with a grading of 1.35% nickel and 0.06% cobalt at
Araguaia. In September 2011 the Company completed a 13 200 metre
drilling programme.

In January 2012 the Company announced a resource update at Araguaia,
comprising an Indicated Mineral Resource of 39.3 million tonnes grading
1.39% nickel together with an Inferred Mineral Resource of 60.9 million
tonnes grading 1.22% nickel, both at a 0.95% nickel cut-off. The
mineral resources have been estimated and classified according to the
CIM definitions as referred to by NI 43-101.

The Araguaia Project area comprises 17 Exploration Licences.

The landholdings which comprise the Araguaia Project do not form part of
any native or environmental reserves.

Recent exploration at the site, conducted since 2006 by both the Company
and prior owners, has included a total to date of some 25 700 metres of
diamond drilling, which was preceded by stream sediment sampling,
airborne geophysical surveys, soil sampling, ground magnetometry, auger
drilling and RC drilling. The principal targets were drilled on 200m x
200m grids, enabling the completion of the NI 43-101 compliant resource
estimation.  Infill drilling on 100m x 100m grids has been completed on
the Pequizeiro and Baião targets.

Some of the targets remain open, and some extensions and subsidiary
targets at Araguaia are as yet untested.

Direct costs of the Araguaia Project since August 2010 have amounted to
approximately £ 5.5 M up to end-March 2012.

In addition Company has initiated the following at Araguaia, which are
currently in progress:

        --  Preliminary Economic Assessment ('PEA') commenced September
            2011
        --  Environmental Baseline Study and Social Impact Assessment
            commenced in October 2011
        --  Testwork for upgrading of ore has been initiated in April 2012
        --  Tenders have been requested from third parties to carry out
            optimisation tests in atmospheric tank leaching testwork
        --  Proposals are being evaluated to operate a pyrometallurgical
            pilot plant, using the 150 tonne bulk samples collected in
            September 2011.

The combined cost for these is expected to be circa £ 750 K, with
completion during the course of 2012, with the PEA due for completion
in Q2 of 2012.

In July 2011 the Company entered into a definitive agreement to acquire
100% of the Vila Oito and Floresta nickel laterite projects (‘Vila Oito
and Floresta’) from Lara. On 7 February 2012 the transfer of the Vila
Oito and Floresta licences from affiliates of Lara to an affiliate of
the Company was completed. In accordance with the July 2011 agreement,
the consideration paid comprised 8.5 million ordinary shares of the
Company, representing 2.95% of the issued share capital of the Company.
Vila Oito and Floresta are adjacent to the Company’s Araguaia Project
and serve to increase the overall land position at Araguaia.

Planned Activity

Moving forwards, the results from the recently completed metallurgical
studies to determine the best processing option for the Araguaia
Project are being fed into the PEA, the results of which are
anticipated in the second quarter of 2012. Thereafter and contingent on
the results of the PEA, the Company’s intends to proceed with the
Prefeasibility Study at Araguaia. This will involve further
metallurgical studies aimed at better understanding the technical and
economic dynamics of metallurgical processing, together with further
diamond drilling.

Additional diamond drilling is required in order to improve the quality
of geological knowledge at Araguaia, where possible: increasing overall
resource tonnage, upgrading existing mineral resource estimates from
Inferred Mineral Resources to Indicated Mineral Resources and focussing
on increasing the resource tonnage of higher grade material, this
latter factor being deemed important for enhancing project economics.

The preliminary estimate for the overall cost of the Prefeasibility
Study, with commensurate drilling and metallurgical evaluation is
currently estimated at approximately £ 7 million. However the scope of
the study and associated costs will be determined by the outcome of the
on-going PEA and for these reasons, this estimate is indicative at this
stage.

Falcao Project
The Falcao Project is a joint venture between the Company and AngloGold
which was signed in August 2010. It gives AngloGold the right to earn
into 51% of the project by investing US$4.5 million over three years.
AngloGold has the option of obtaining a further 19%, taking it to 70%,
by funding a Prefeasibility Study within three years of the vesting
date. Under the terms of the agreement, AngloGold was required to
invest a minimum of US$900,000 within the first year, a milestone that
was achieved in the second quarter of 2011.

Falcao is located in southern Pará State, north central Brazil, which
hosts the Carajás Mineral District and lies approximately 110 km to the
north of the Company’s Araguaia Project.

The project was a BHP grassroots discovery that was identified by
regional stream sediment sampling which defined several sample
locations running anomalous gold, copper and silver values, covering a
50 sq km land area. The stream sediment programme was followed-up by a
regional soil grid and wide spaced, shallow auger drill programme which
defined the main area of interest as an open 6 km long anomalous gold
trend and adjacent zinc/silver/gold zone.

BHP undertook a limited wide spaced reverse circulation (‘RC’) drilling
campaign in September 1998. The final RC drill holes were located on a
wide (2,400m by 400m) spacing along the 6 km anomalous trend. Despite
the wide drill hole spacing a number of highly anomalous intersections
were drilled.

Since initiating field work in the third quarter of 2010, the Company
carried out the following evaluation at Falcao:

Soil Sampling Survey
The survey was carried out during October and the early part of November
2010 over a 3,000m by 1,500m zone on 100m line spacing. The grid covers
the central part of the main target zone. Samples were collected every
25m along lines and every second sample analysed by Acme Laboratories.

The results confirmed a 300 to 600m wide zone at greater than 50ppb,
with the trend open to both the east and west and the resulting data
compiled with the regional soil geochemistry database and interpreted
together with the newly acquired geophysical database to define the
drill targets and additional zones for follow-up.

Geologic Mapping
Geologic mapping was carried out over an area of approximately 20 sq km
and has been used for the combined interpretation of the geochemical
and geophysical data. Given the poor exposure in the target zone, this
combined interpretation has played a critical role in enhancing the
understanding of the geologic setting and the definition of drill
targets.

Aeromagnetic Survey
A 3,200 line km aeromagnetic and radiometric survey was flown over the
Falcao Project in November 2010. The survey was carried out on 100m
line spacing over the central part of the area and lines at 200m
spacing extending to the east and west to aid in the structural
interpretation of the data.

All quality control data was monitored and approved by AngloGold’s
geophysical specialist group in Bogotá.

Drilling
Following evaluation of the above, in July 2011 the Company commenced a
2,587m diamond drilling programme at Falcao, with a view to testing the
gold soil anomaly which is currently 4km long and is open to the east
and which varies from 200m to 800m in width. 10 drillholes were spaced
out over a 4,700 m strike and went to a depth of between 200 and 300
metres.

Potential quality and grade is conceptual in nature. There has been
insufficient exploration to define a mineral resource on the Falcao
Project to date, and it is uncertain if further exploration will result
in the target being delineated as a mineral resource.

Of the first 10 holes, 6 intersected zones of gold mineralisation and as
a result, a further 5 holes totalling 1,076 m were drilled in late
2011, taking the total number of metres drilled to 3,663.

Cost of work to date
To end-March 2012, a total of USD 2.9M has been spent on the Falcao
project.

Future plans and expenditures
Budgeted expenditure for 2012 as agreed with AngloGold is US$1.6 million
and will focus initially on an induced polarisation geophysical survey
over the principal mineralised zone, combined with an expansion of the
soil geochemical sampling with the aim to expand the target zone to the
east. Subject to positive results, a follow up drill programme is
planned for Q2/Q3 2012. The Company is the operator until vesting is
completed.

Expenditure at Falcao is funded by AngloGold, the joint venture partner,
and therefore future expenditure under the joint venture agreement will
depend on decisions taken by AngloGold. These decisions will be based
upon the results of the ongoing and planned activities outlined above.

Strategic JV with AngloGold

On 4 September 2009 an exploration alliance with AngloGold was announced
and provided for the Company to expand its areas of operation to
greenfields exploration. This represents an area of potential growth
for the Company, achieved without the need for further equity
financing. During the first 12 months AngloGold invested US$900,000 in
exploration expenditure on two regional greenfield exploration
programmes. These programmes were extended in and a further US$620,000
was spent in 2011 and has accrued as part of the AngloGold earn-in
expenditure. All work is conducted and managed by the Company.

Under the terms of the Strategic JV, AngloGold may, in its absolute
discretion, spend US$5.3M over three years to earn a 51% interest in
any project developed by the programme. On completion of the three year
exploration programme each property or properties comprising a target
area will be subject to a separate joint venture (each a ‘Target Area
JV’), with ownership interests in each Target Area JV apportioned 51%
to AngloGold and 49% to the Company. AngloGold may elect, in its
absolute discretion, to earn up to an additional 19% (70% total) in a
Target Area JV by funding ongoing exploration expenditure to complete a
Prefeasibility Study in that Target Area within three years from that
vesting date. AngloGold may withdraw at any time without completing its
expenditure obligations for a particular year.

To date a total of approximately 700,000 ha (7,000 sq km) has been
sampled, comprising a total of 1,266 stream sediment samples and 1,447
rock geochemical samples. Integration of structure, known geology and
occurrences, with an open view on geological models and the potential
styles of mineralisation, is a key component to success in this
programme.

Geochemical targets are ranked and prioritised based on the following
criteria:

        --  Single point vs multiple contiguous drainages with elevated Au;
        --  Addition of pathfinder elements;
        --  Favourable host geology;
        --  Structure; and
        --  Open ground.

Highlights are:

        --  A +7,000m trend associated with a 1.8 to 2.05Ga,
            mid-Proterozoic sedimentary package of the same age as the gold
            rich conglomerates of the Tarkwa Belt in West Africa; and
        --  A 4,000m trend of low gold and pathfinder elements (Te, Sb, Bi,
            As +/- W) reflective of intrusion related systems, located on a
            structure bounding a zoned granite intrusion.

These two previously unknown targets are examples of the types of
anomalies being defined.

Future Planned Work

Follow-up work has yet to define gold mineralisation representing an
AngloGold sized target. The Company, with AngloGold, is fully reviewing
this programme and the extensive land position built up and will look
at ways adding value to the portfolio going forwards.

Tangara Gold Project (JV with Troy Resources)

The Company signed a formal Option Agreement with Troy Resources
(ASX:TRY) (‘Troy’) in December 2007 to operate and develop the Tangara
Gold Project (‘Tangara Project’) and fast track its development
entitling Troy to 100% interest in the Tangara Project. To maintain the
option Troy has made cash payments totalling US$400,000 to the Company
and invested US$2 million in exploration on the project. Upon exercise
of the option Troy will be required to make a production royalty
payment to the Company of US$30 for every ounce of gold produced from
the Tangara Project area up to a maximum of 500,000oz. In the event of
more than 500,000oz being produced, a 1% Net Smelter Royalty (‘NSR’)
shall apply. This royalty will increase to 2% NSR in the event of
production exceeding 1 million oz.

In the northern part of the joint venture area the focus was on the
preparation of the final exploration report as a prelude to a Mining
Licence Application on part of the 100 sq km exploration license
covering the Malvinas Trend, the central part of which is characterised
by a 2.5 km long zone formed by two major trends. Potential quantity
and grade is conceptual in nature. There has been insufficient
exploration to define a mineral resource on the Tangara Project to
date, and it is uncertain if further exploration will result in the
target being delineated as a mineral resource. The first trend is over
1,600m long and is 100m to 300m wide while the second trend is 600m
long and 300m wide. Both trends are associated with numerous multi-gram
rock sample gold results, the best of which in geological terms, are
related to a massive pyrite, sericite, quartz gossan which has returned
assays of up to 14.8g/t gold in rock chips.

During 2011, Troy continued to explore the northern part of the project
area. Low impact field work, including mapping and soil sampling,
continued on the Horizonte JV with work focussed on the northern
portion of the Rio Maria West area (‘RMW’) and further north along the
western portion of the Malvinas Trend.

The northern part of the RMW is located about 8km west of the Rio Maria
town site. The area has been the site of earlier garimpeiro stream
based alluvial workings and at least four historic garimpeiro pits
extending into in primary mineralisation. These workings are hosted in
mafic metavolcanics rocks with quartz veins within shears zones occur
in a similar setting and have a similar style of mineralisation as
noted immediately to the south at the Manoel and Anastácio workings
within the southern portion of the RMW block.

At RMW the soil programme along the Bezerro – Serrinha Trend yielded
significant results with a maximum of 1,989ppb gold and 6 zones above
110ppb gold. The results defined a 3km long east-northeast striking
anomalous trend up to 300m wide. South of the main trend another
anomalous zone was defined over 1.6km including 4 zones above 100ppb
gold with maximum of 811ppb gold and rock chips yielding up to 2.20g/t
gold.

On the northern part of the Company joint venture, an infill soil
programme at Malvinas resulting in the collection of 440 samples
further defined several known anomalous gold-in-soil trends and
identified a number of RAB Drill targets.

Future Planned Work

A mining licence application has been lodged with the Brazilian
Department of Mines to cover the Malvinas target. Future activity by
Troy at the Tangara Project is contingent on this application being
successful.

TECHNICAL DISCLOSURE

All scientific and technical information contained in this Management’s
Discussion and Analysis has been prepared by or under the supervision
of David Hall, Chairman of the Company, a “qualified person” within the
meaning of NI 43-101.  For further details on the Araguaia Project,
please refer to “Geology and Mineral Resources of the Araguaia Nickel
Project, Brazil NI 43-101 Technical Report”, dated February 23(rd) 2012, available on SEDAR at www.sedar.com.

SUMMARY OF CASHFLOWS

     __________________________________________________________________
    |3 months ended              |31st March 2012   |31st March 2011   |
    |                            |£                 |£                 |
    |____________________________|__________________|__________________|
    |Net Cashflows from operating|(369,437)         |(152,127)         |
    |activities                  |                  |                  |
    |____________________________|__________________|__________________|
    |Net cash used in investing  |(558,376)         |(738,809)         |
    |activities                  |                  |                  |
    |____________________________|__________________|__________________|
    |Net cashflow from financing |-                 |7,819,437         |
    |activities                  |                  |                  |
    |____________________________|__________________|__________________|
    |Net increase / (decrease) in|(927,813)         |6,928,501         |
    |cash and cash equivalents   |                  |                  |
    |____________________________|__________________|__________________|

The net cashflows used in operating activities for the 3 months ended 31(st) March 2012 are driven by activities in the management of Araguaia and
the AngloGold Ashanti Joint Ventures. The overall increase in cash used
in operating activities of £ 217,310 (from £(152,127) for the three
months ended 31(st) March 2011 to £ (369,437) for the three months ended 31(st) 2012) is driven by the following principal factors:

        --  an increase in exploration costs expensed of £ 123,466 (from
            £53,212 for the three months ended 31st March 2011 to £ 176,678
            for the three months ended 31st March 2012) - see 'Results from
            Operations' for explanation;
        --  the cost of TSX compliance and Canadian Investor Relations of £
            77,586 in the first three months of 2012 and which did not
            arise in the first quarter of 2011;
        --  the results for the 3 months ended 31st March  2011 enjoyed
            other operating income of £ 312,500 due to the Royalty option
            payment from Anglo Pacific Group plc which was not repeated in
            2012.
        --  The above three factors responsible for driving the increase in
            cash used in operating activities in the first quarter of 2012
            versus the same period in 2011 are partly offset by reduced
            professional fees, which amounted to £ 58,916 in the 3 months
            ended 31st March 2012 as compared to £ 214,970 in the 3 months
            ended 31st March 2013 - see 'Results from Operations' for
            explanation.

Cash used in investing activities has fallen to £ 558,376 in the 3
months ended 31(st) March 2012 when compared to £738,809 in the 3 months ended March 31(st) 2011. The higher spend in the first quarter of 2011 as compared to the
same period in 2012 is driven by the drilling programme that was
underway and capital expenditure that took place in the first quarter
of 2011.

Net cashflow from financing activities to March 31(st) 2011 of £7,819,437 was driven by the capital raise in February 2011 of
£ 8.25 million before expenses, through the placing of 32,999,500 new,
fully paid ordinary shares in the Company.  There were no funds raised
through issue of shares in the 3 months ended 31(st) March 2012.

QUARTERLY FINANCIAL INFORMATION

     __________________________________________________________________________________________________
    |              |2012     |2011     |2011       |2011     |2011     |2010     |2010       |2010     |
    |______________|_________|_________|___________|_________|_________|_________|___________|_________|
    |              |         |31       |           |         |         |31       |           |         |
    |Quarter Ended |31 March |December |30 Sept.   |30 June  |31 March |December |30 Sept.   |30 June  |
    |              |£        |£        |£          |£        |£        |£        |£          |£        |
    |______________|_________|_________|___________|_________|_________|_________|___________|_________|
    |Revenue       |        -|        -|          -|        -|        -|        -|          -|        -|
    |______________|_________|_________|___________|_________|_________|_________|___________|_________|
    |Other         |         |         |           |         |         |         |           |         |
    |Operating     |         |         |           |         |         |         |           |         |
    |Income        |   28,948|   31,101|     47,607|   32,652|  327,110|  254,461|    440,079|        -|
    |______________|_________|_________|___________|_________|_________|_________|___________|_________|
    |Profit/(loss) |         |         |           |         |         |         |           |         |
    |from          |         |         |           |         |         |         |           |         |
    |continuing    |         |         |           |         |         |         |           |         |
    |operations    |(690,229)|(577,731)|  (549,689)|(486,275)|(190,358)|(329,066)|  1,646,562|(300,594)|
    |______________|_________|_________|___________|_________|_________|_________|___________|_________|
    |Total         |         |         |           |         |         |         |           |         |
    |comprehensive |         |         |           |         |         |         |           |         |
    |income        |         |         |           |         |         |         |           |         |
    |attributable  |         |         |           |         |         |         |           |         |
    |to equity     |         |         |           |         |         |         |           |         |
    |holders of the|         |         |           |         |         |         |           |         |
    |Company       |(848,455)|(891,788)|(3,293,201)|  455,757|(474,829)|  154,645|  2,255,483|(300,594)|
    |______________|_________|_________|___________|_________|_________|_________|___________|_________|
    |Basic         |         |         |           |         |         |         |           |         |
    |earnings/     |         |         |           |         |         |         |           |         |
    |(loss) pence  |         |         |           |         |         |         |           |         |
    |per share     |  (0.243)|  (0.210)|    (0.197)|  (0.174)|  (0.072)|    0.553|      1.100|  (0.509)|
    |______________|_________|_________|___________|_________|_________|_________|___________|_________|

Other operating income of £ 327,110 in the first quarter of 2011
included £ 312,500 arising from a payment by the Anglo Pacific Group
plc in return for an option to acquire a net smelter royalty on nickel
production at Araguaia. The remainder of other operating income in 2011
and in the first quarter of 2012 comprises management fees arising on
the AngloGold joint ventures.

The loss from continuing operations of £690,229 for the first quarter of
2012 includes a non-cash share option charge of £ 116,378 and a
negative exchange movement of £ 76,853 due to a weakening of the US
Dollar against Sterling in the quarter. The loss was otherwise driven
by expensing of exploration costs of £ 176,678 and additional
administration expenses of £ 298,561.

Total comprehensive income attributable to equity holders of the company
in the first quarter of 2012 of £ (848,455) was after exchange
differences arising on translating foreign operations of £ (158,226),
as the Brazilian Real had weakened against Sterling as at March 31(st) 2012 when compared to December 31(st) 2011.

Total comprehensive income attributable to equity holders of the company
in the third quarter of 2011 of £ (3,293,273) was after exchange
differences arising on translating foreign operations of £ (2,743,512),
as the Brazilian Real had weakened against Sterling as at September 30(th) 2011 when compared to June 30(th) 2011.

The assets and liabilities of the Araguaia Project are accounted for in
Brazilian Reais, their functional currency.

RESULTS FROM OPERATIONS

     _______________________________________________________________
    |                                         |3 m/e 31  |3 m/e 31  |
    |                                         |March 2012|March 2011|
    |                                         |£         |£         |
    |_________________________________________|__________|__________|
    |General and Administration Costs         |          |          |
    |Compensation                             |(118,019) |(118,793) |
    |Travel / Expenses                        |(24,821)  |(28,716)  |
    |Exploration Costs Expensed               |(176,678) |(53,212)  |
    |Professional Fees                        |(58,916)  |(214,970) |
    |Investor Relations - UK                  |(37,598)  |(19,418)  |
    |Investor Relations - Canada              |(40,536)  |        - |
    |Overheads / Other                        |(18,671)  |(19,491)  |
    |Total General and Administration Costs   |(475,239) |(454,600) |
    |_________________________________________|__________|__________|
    |Charge for stock options granted         |(116,378) |(46,560)  |
    |_________________________________________|__________|__________|
    |Toronto Stock Exchange listing fees and  |(37,050)  |-         |
    |associated costs                         |          |          |
    |_________________________________________|__________|__________|
    |Gain / (loss) on Foreign Exchange        |(76,853)  |(13,442)  |
    |_________________________________________|__________|__________|
    |Other Operating Income                   |28,948    |327,110   |
    |_________________________________________|__________|__________|
    |Loss from Operations                     |(676,572) |(187,492) |
    |_________________________________________|__________|__________|

Within General and Administration costs:

        --  The charge for stock options granted has risen from £ 46,560 in
            the 3 months to end-March 2011 to £ 116,378 in the 3 months to
            end-March 2012 due to the charge for 14,380,000 options granted
            in September 2011.
        --  Exploration costs expensed have risen from £ 53,212 in the
            three months to end-March 2011 to £ 176,678 in the three months
            to end-March 2012 principally due to increased salaries and
            associated social charges. The compensation charge to end-March
            2012 included in exploration costs expensed totalled £ 95,143
            (three months to end-March 2011: £ 45,501). Other cost
            increases incurred within exploration costs expensed in the
            three months ended 31 March 2012 as compared to the three
            months ended 31 March 2011 included: legal / professional fees
            for the three months to end-March 2012 of £ 24,958 (three
            months to end-March 2011: £ 5,858); variable overheads for the
            three months to end-March 2012 totalled £ 28,580 (three months
            to end-March 2011: £ 16,146). Overall, the increased level of
            exploration costs expensed in the three months to end-March
            2012 as compared to the same period in 2011 is due to
            consolidation of the management structure in Brazil in the
            middle of 2011.
        --  Professional fees have decreased in the three months to
            end-March 2012 to £ 58,916 from £ 214,970 for the three months
            to end-March 2011 principally because the charge in 2011
            included corporate finance and legal fees associated with the
            capital raise in February 2011, legal fees associated with the
            signing of the Option Royalty Agreement with Anglo Pacific in
            January 2011 as well as additional audit and interim review
            costs in 2011 as compared to 2012.
        --  Costs are also incurred in the first quarter of 2012 in
            connection with the Company having listed on the TSX, which
            occurred in June 2011 and which did not arise in the three
            months to end-March 2011.

The (loss) / gain on foreign exchange is predominantly associated with
movements arising on cash deposits held by the company in other
currencies, namely the US Dollar and the Brazilian Real.

LIQUIDITY, CAPITAL RESERVES AND FINANCING ACTIVITIES

The Company is not in commercial production on any of its properties and
accordingly it does not generate cash from operations and finances its
activities by raising capital through equity issues.

As at 31(th) March 2012 the Company had £ 4,871,878 in cash at bank and on deposit,
including £ 137,873 advanced from AngloGold Ashanti plc under the Joint
Venture Agreements in place. As at 31(st) December 2011 cash at bank and on deposit amounted to £ 5,856,949.  The
Joint Ventures with AngloGold are funded in advance on a quarterly
basis.

All of the Company’s cash and cash equivalents as at March 31(st) 2012 are held in interest bearing accounts. The Company has not
invested in any short-term commercial paper, asset backed securities or
other financial instruments.

In management’s view the Company has sufficient financial resources to
fund currently planned exploration programmes and ongoing operating
expenditures over the next 12 months. The Company will continue to be
dependent on raising equity capital as required until and unless it
reaches the production stage and generates cash flow from operations.

CONTRACTUAL OBLIGATIONS

     ____________________________________________________________
    |£                  |Payments Due by Period                  |
    |___________________|________________________________________|
    |                   |Total     |Less than 1 year|1-3 years   |
    |___________________|__________|________________|____________|
    |Operating leases   |33,000    |26,000          |7,000       |
    |Other contracts    |531,000   |531,000         |-           |
    |___________________|__________|________________|____________|

Operating leases relate to office space. Other contracts relate to
ongoing consultancy arrangements in connection with metallurgical and
other evaluations at Araguaia.

SHAREHOLDERS EQUITY

As at May 15(th) 2012 there were 288 059 980 ordinary shares issued. (December 31(st) 2011: 279 559 980 ordinary shares issued).

On February 7(th) 2012 the Company issued 8,500,000 fully paid ordinary shares to Lara
Exploration Limited in consideration for 100% of the Vila Oito and
Floresta nickel projects, which are situated in proximity to the
Company’s Araguaia project.

Total options outstanding as at May 15(th) 2012 amount to 23,230,000 with exercise prices ranging from 9.5 pence
to 15.5 pence, vesting between September 24(th) 2011 and September 21(st) 2013. There is no other share-based compensation paid by the Company.

The Company recognises as an expense the cost of stock based
compensation based upon the estimated fair value of new stock options
granted. The fair value of each stock option is estimated on the date
of grant using the Black-Scholes option pricing model and is expensed
over the vesting period.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The financial information disclosed within this document was prepared on
a going concern basis using accounting policies consistent with
International Financial Reporting Standards (IFRS) as adopted by the
European Union.

The preparation of condensed interim financial statements requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the end of each reporting period.

Significant items subject to such estimates include:

Valuation of Intangible Assets
In accordance with IFRS 6, the Company capitalises as Intangible Assets
all exploration and evaluation costs, including acquisition costs,
field exploration and analysis costs relating to specific properties
until those properties are brought into production, at which time they
will be amortised on a unit-of-production basis or until the properties
are abandoned, sold or considered to be impaired in value, at which
time an appropriate charge is made.

Intangible Assets are reviewed for impairment to determine if a write
down of their carrying amount is required. The factors which are
considered include past and future, planned exploration work and
general market conditions.

Fair value of exploration projects acquired in business combinations
Management has made various estimations regarding the fair value of
exploration projects acquired in the absence of NI 43-101 compliant
resource data available at acquisition. The fair value of exploration
projects acquired has been estimated based on a number of valuation
techniques.

Where acquisitions represent transactions between knowledgeable and
willing parties on an arm’s length basis the exploration projects
acquired have been valued on the basis of the consideration
transferred. Where acquisitions do not represent arms’ length
transactions management have compared them to similar transactions that
are on an arm’s length basis taking into account key factors such as
certainty over the level of defined resource, processing technology and
location infrastructure.

Management has also undertaken an exercise to compare their estimated
fair values based on the level of work completed and geological upside
potential with similar exploration companies in the form of a
benchmarking exercise.

Contingent consideration
Contingent consideration has a carrying value of £ 2,757,330 as at March
31(st) 2012 (£2,715,365 at December 31(st) 2011). The contingent consideration arrangement requires the Company to
pay the former owners of Teck Cominco Brasil S.A 50% of the tax effect
on utilisation of the tax losses existing in Teck Cominco Brasil S.A at
the date of acquisition. Under the terms of the acquisition agreement,
tax losses that existed at the date of acquisition and which are
subsequently utilised in a period greater than 10 years from that date
are not subject to the contingent consideration arrangement.

The fair value of this potential consideration has been determined using
a hypothetical discounted cash flow analysis. Management has made
assumptions regarding the future operating parameters of the Araguaia
Project, combined with local and global operating parameters taken from
other comparable nickel projects, in order to calculate the ability to
utilise the acquired tax losses, together with the timing of their
utilisation. The Company has used discounted cash flow analysis to
determine when it is anticipated that the tax losses will be utilised
and any potential contingent consideration paid. Cash flow projections
exceeding a period of five years have been estimated in order to
incorporate the anticipated time period to establishing a NI 43-101
compliant resource, completing a feasibility study and then exploiting
the estimated resource. These cash flows could be affected by upward or
downward movements in several factors to include commodity prices,
operating costs, capital expenditure, production levels, grades,
recoveries and interest rates.

Current and deferred taxation
The Company is subject to income taxes in numerous jurisdictions. 
Judgment is required in determining the worldwide provision for such
taxes.  The Company recognises liabilities for anticipated tax issues
based on estimates of whether additional taxes will be due.  Where the
final tax outcome of these matters is different from the amounts that
were initially recorded, such differences will affect the current and
deferred income tax assets and liabilities in the period in which such
determination is made.

Deferred tax liabilities have been recognised on the fair value gains in
exploration projects arising on the acquisitions of Teck Cominco Brasil
S.A and Lontra Empreendimentos e Participações Ltda. A deferred tax
asset has been recognised on acquisition of Teck Cominco Brasil S.A for
the utilisation of the available tax losses acquired. Should the actual
final outcome regarding the utilisation of these losses be different
from management’s estimations, the Company may need to revise the
carrying value of this asset.

FORWARD LOOKING STATEMENTS

Except for statements of historical fact relating to the Company,
certain information contained in this management’s discussion and
analysis constitutes “forward-looking information” under Canadian
securities legislation. Forward-looking information includes, but is
not limited to, statements with respect to the potential of the
Company’s properties; the future price of minerals; success of
exploration activities; cost and timing of future exploration and
development; the estimation of mineral resources; requirements for
additional capital and other statements relating to the financial and
business prospects of the Company. Generally, forward-looking
information can be identified by the use of forward-looking terminology
such as “plans”, “expects” or “does not expect”, “is expected”,
“budget”, “scheduled”, “estimates”, “forecasts”, “intends”,
“anticipates” or “does not anticipate”, or “believes”, or variations of
such words and phrases or statements that certain actions, events or
results “may”, “could”, “would”, “might” or “will be taken”, “occur” or
“be achieved”.  Forward-looking information is inherently subject to
known and unknown risks, uncertainties and other factors that may cause
the actual results, level of activity, performance or achievements of
the Company to be materially different from those expressed or implied
by such forward-looking information, including but not limited to risks
related to:

        --  the Company's goal of creating shareholder value by
            concentrating on the acquisition and development of properties
            that have the potential to contain economic mineral deposits;
        --  future plans for the Araguaia and Falcao Projects and other
            property interests held by the Company or which may be acquired
            on a going forward basis, if at all;
        --  management's outlook regarding future trends;
        --  the Company's ability to meet its working capital needs at the
            current level in the short term; and
        --  governmental regulation and environmental liability.

Forward-looking information is based on the reasonable assumptions,
estimates, analysis and opinions of management made in light of its
experience and its perception of trends, current conditions and
expected developments, as well as other factors that management
believes to be relevant and reasonable in the circumstances at the date
that such statements are made, and are inherently subject to known and
unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements of the
Company to be materially different from those expressed or implied by
such forward-looking information, including but not limited to risks
related to: unexpected events and delays during permitting; the
possibility that future exploration results will not be consistent with
the Company’s expectations; timing and availability of external
financing on acceptable terms and in light of the current decline in
global liquidity and credit availability; uncertainty of mineral
resources; future prices of minerals; currency exchange rates;
government regulation of mining operations;  failure of equipment or
processes to operate as anticipated; risks inherent in mineral
exploration and development including environmental hazards, industrial
accidents, unusual or unexpected geological formations; and uncertain
political and economic environments. Although management of the Company
has attempted to identify important factors that could cause actual
results to differ materially from those contained in forward-looking
information, there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that such
statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on
forward-looking information. The Company does not undertake to update
any forward-looking information, except in accordance with applicable
securities laws.

RISKS AND UNCERTAINTIES

An investment in the Company entails certain risk factors, which should
be considered carefully, including but not limited to those set out
below:

        --  Risks and uncertainties related to the interpretation of drill
            results, the geology, grade and continuity of mineral deposits
            and conclusions of economic evaluations.

        --  Risks that the results of scoping studies, pre-feasibility and
            feasibility studies and the possibility that future
            exploration, development or mining results will not be
            consistent with the Company's expectations.

        --  Risks related to possible variations in reserves, grade and
            changes in project parameters as plans continue to be refined.

        --  Exploration and future development risks, including risks
            related to the grant of access rights to the properties,
            accidents, equipment breakdowns, labour disputes or other
            unanticipated difficulties with or interruptions in exploration
            and development.

        --  Risks related to liquidity, foreign exchange, credit, commodity
            prices, interest rates and market sentiment.

        --  Risks related to failure to obtain adequate financing on a
            timely basis and on acceptable terms or delays in obtaining
            government approvals or in the completion of development or
            construction activities.

        --  Risks related to environmental regulation and liability

        --  Risks related to community relations

        --  Risks related to the loss of the services of key executives,
            including the Directors of the Company and a small number of
            highly skilled and experienced executives and personnel.

        --  Political or regulatory risks associated with conducting
            mineral exploration in Brazil and other countries.

OFF BALANCE SHEET ARRANGEMENTS

The Company has no off balance sheet arrangements.

RELATED PARTY TRANSACTIONS

With the exception of charges levied within the Company in consideration
for management services and in accordance with signed agreements, there
are no related party transactions.

The charges levied for the first 3 months of 2012 and the comparative
period in 2011 are as follows and cancel out upon consolidation:

     ____________________________________________________________________
    |          |Brazil           |Peru             |Total                |
    |__________|_________________|_________________|_____________________|
    |          |3 m/e 31|3 m/e 31|3 m/e 31|3 m/e 31|3 m/e 30  |3 m/e 31  |
    |          |March   |March   |March   |March   |March 2012|March 2011|
    |          |2012    |2011    |2012    |2011    |£         |£         |
    |          |£       |£       |£       |£       |          |          |
    |__________|________|________|________|________|__________|__________|
    |Intragroup|80,075  |44,121  |16,184  |15,925  |96,259    |45,713    |
    |charges   |        |        |        |        |          |          |
    |__________|________|________|________|________|__________|__________|

Notes

Horizonte Minerals Plc is an AIM and TSX quoted exploration and
development company with a portfolio of nickel and gold projects in the
Carajas District of Brazil.  The Company is focused on creating value
by generating and rapidly advancing exploration projects in tandem with
joint ventures with major mining companies, providing mid-term cash
flow which is then used to develop the business and pipeline projects.

Horizonte has two committed major mining partners: Teck Resources
Limited, a major strategic shareholder in the Company, and AngloGold
Ashanti Holdings plc, a JV partner on the gold portfolio.

Horizonte owns 100 per cent of the advanced Araguaia nickel project
located to the south of the Carajas mineral district of northern
Brazil; the project has the potential to deliver a resource with size
and grades comparable to other world-class projects in northern Brazil

In addition Horizonte acquired the Lara Exploration Vila Oito project
which has a non compliant potential resource of 10 to 11 Mt grading 1.3
to 1.4% Ni further consolidating the greater Araguaia district.

Horizonte is well funded to accelerate the development of its core
projects.

Horizonte Minerals prepared this news release and David Hall, an
independent Qualified Person under National Instrument 43-101, has
reviewed and approved the technical information contained herein.

CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION

Except for statements of historical fact relating to the Company,
certain information contained in this press release constitutes
“forward-looking information” under Canadian securities legislation.
Forward-looking information includes, but is not limited to, statements
with respect to the potential of the Company’s current or future
mineral projects; the success of exploration and mining activities;
cost and timing of future exploration, production and development; the
estimation of mineral resources and reserves and the ability of the
Company to achieve its goals in respect of growing its mineral
resources; and the realization of mineral resource and reserve
estimates. Generally, forward-looking information can be identified by
the use of forward-looking terminology such as “plans”, “expects” or
“does not expect”, “is expected”, “budget”, “scheduled”, “estimates”,
“forecasts”, “intends”, “anticipates” or “does not anticipate”, or
“believes”, or variations of such words and phrases or statements that
certain actions, events or results “may”, “could”, “would”, “might” or
“will be taken”, “occur” or “be achieved”. In addition, statements
relating to “mineral reserves” or “mineral resources” are deemed to be
forward-looking statements, as they involve the implied assessment,
based on certain estimates and assumptions, that the mineral resources
and mineral reserves described can be profitably mined in the future.
Forward-looking information is based on the reasonable assumptions,
estimates, analysis and opinions of management made in light of its
experience and its perception of trends, current conditions and
expected developments, as well as other factors that management
believes to be relevant and reasonable in the circumstances at the date
that such statements are made, and are inherently subject to known and
unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements of the
Company to be materially different from those expressed or implied by
such forward-looking information, including but not limited to risks
related to: exploration and mining risks, competition from competitors
with greater capital; the Company’s lack of experience with respect to
development-stage mining operations; fluctuations in metal prices;
uninsured risks; environmental and other regulatory requirements;
exploration, mining and other licences; the Company’s future payment
obligations; potential disputes with respect to the Company’s title to,
and the area of, its mining concessions; the Company’s dependence on
its ability to obtain sufficient financing in the future; the Company’s
dependence on its relationships with third parties; the Company’s joint
ventures; the potential of currency fluctuations and political or
economic instability  in countries in which the Company operates;
currency exchange fluctuations; the Company’s ability to manage its
growth effectively; the trading market for the ordinary shares of the
Company; uncertainty with respect to the Company’s plans to continue to
develop its operations and new projects; the Company’s dependence on
key personnel; possible conflicts of interest of directors and officers
of the Company, and various risks associated with the legal and
regulatory framework within which the Company operates.

Although management of the Company has attempted to identify important
factors that could cause actual results to differ materially from those
contained in forward-looking information, there may be other factors
that cause results not to be as anticipated, estimated or intended.
There can be no assurance that such statements will prove to be
accurate, as actual results and future events could differ materially
from those anticipated in such statements. Accordingly, readers should
not place undue reliance on forward-looking information. The Company
does not undertake to update any forward-looking information, except in
accordance with applicable securities laws.

 

 

 

SOURCE Horizonte Minerals plc


Source: PR Newswire