For Immediate Release                                 29 May 2009 

COMMERCIAL GROUP PROPERTIES PLC

("COMMERCIAL GROUP", "CGP" or the "COMPANY")

AUDITED RESULTS FOR THE PERIOD ENDED 30 NOVEMBER 2008 AND 

NOTICE OF AGM

CHAIRMAN'S STATEMENT

I am delighted to present Commercial Group Properties Plc's second annual report since its admission to AIM in 2007.

Obviously, no company can be completely immune to the global recession but our Company is fortunate that its major development at Manston is in conjunction with Chinese Government Agencies.

Whilst China has suffered as their western markets have contracted, their Government is keen to progress with the China Gateway development at our Manston site in order to be in place and ready to benefit from the recovery as soon as this occurs.

We are, therefore, as a result of the continued support of our bankers in the privileged position of aiming to start the Manston development during the first half of 2010.

I would also like to pay tribute to our Executive Directors and all our staff who have worked so hard to progress this exciting project.

Robin Bolton

Chairman

28  May 2009

CHIEF EXECUTIVE'S REVIEW 

Introduction

The Company has continued to develop its relationships in China and it is as a result of these relationships that CGP has been able to increase the asset value of the Company's investment property at Manston during what has generally been a difficult trading period due to the overall economic environment.

China

Despite these difficult conditions, China's economy grew at the rate of 9% in 2008. The forecast for 2009 is a growth rate of over 7%. The Company is fortunate that the Government of China recognise that continual growth is dependent on a successful globalisation program. This is very much a view shared by organisations such as the United Nations Industrial Development Organisation (UNIDO). 

On 19 May 2009 the Company signed a Memorandum of Understanding with UNIDO's Investment and Technology Promotion Office (ITPO) China, a formal endorsement of the China Gateway program at Manston.

China has been 'a crucial engine of growth' for the world economy. Today, more than ever, the world is looking to China to be a big contributor to global economic growth. The steady and robust economic growth of China is vital to help the world economy emerge from the current crisis.

Manston

On 10 October 2008 the Company announced that a resolution to grant planning consent, subject to conditions, had been approved at the Extraordinary Meeting of Thanet District Council on 9 October 2008. The planning conditions are in the process of being met and the consent for Phase 1 of the 'China Gateway' scheme at Manston in respect of 1,481,815 sq ft of commercial development should allow construction to commence in 2010.

The Company acknowledges the kind support of local agencies including the South East England Development Agency (SEEDA), Locate in Kent and Thanet District Council for their help and co-operation during the past year with the Manston 'China Gateway' project.

As detailed in the Chief Executive's Review in last years annual report, agreements have been entered into with regard to the leasing of significant areas within China Gateway, and despite the current world economic downturn, the parties to these agreements are still fully supportive of the project.

With the endorsement of China Gateway by UNIDO-ITPO the Company will now be in a position to confirm interest from other Chinese provinces and commence negotiations with funding sources within China to obtain the relevant development finance.

Wigan

CGP and Wigan Borough Council (WBC) have been in talks for the past two years along with Chinamex, China's official foreign trade body, regarding a proposed site at Westwood Park, Wigan. The Company's plans for the site include industrial and commercial premises for manufacturing and marketing, warehousing, research and development facilities, offices and a hotel. CGP expects to hold further negotiations with WBC regarding the proposed site during the next 12 months. Lord Peter Smith, the Metro Leader, remains committed to the project, stating in April 2009 that "Wigan's colossal 'textile city' project is still very much on".  

Dover

The Company has two properties intended for sale in Dover, 273 acres at Farthingloe and 24 acres at Western Heights, both located south west of Dover in Kent. The key part of these two sites is an area of approximately 30 acres at Farthingloe which has the benefit of planning permission for the erection of 220,000 sq ft of office space. Due to the prevailing economic conditions, progress with regard to these properties has been difficult in the year under review, and the Company has reported a write down in value of these sites in both the Interim Financial Statements and the attached Annual Financial Statements to reflect their estimated realisable value.

Trading result

The Company has continued its investment in infrastructure and overhead to enable ongoing enhancement of the value of the Manston site. Despite the write down of the value of the Dover properties and the ongoing funding and overhead costs, the increase in the value of China Gateway has restricted the loss before taxation reported in the attached Financial Statements to £8.9 million. 

Balance sheet

As detailed in Note 24 to the Financial Statements, the Company has adopted the amendments to International Accounting Standard 40 "Investment Property", contained in the "Improvement to IFRSs" issued in May 2008 by the International Accounting Standards Board, early. The Company has thus changed its accounting policy with regard to property under development and deferred expenditure. This has resulted in a restatement of the Company's total equity to £31.5 million at 30 November 2007. The trading losses for the current year have resulted in a reduction in total equity to £22.4 million at 30 November 2008. 

The statement on going concern included within the Accounting Policies section of the Financial Statements details the position with regard to the Company's ongoing banking facilities.

Outlook

The Board continues to believe that, given its excellent relationships with China, CGP is in a position to capitalise on the globalisation program. Despite the current financial challenges, the Company still expects to increase the value of its investment property at Manston by the progression of China Gateway, the conclusion of successful negotiations with its existing lending bank and the access to new finance sources following the recent agreement with UNIDO-ITPO.

The Board continues to view the Company's future with significant optimism.

Ken Wills

C.E.O

28 May 2009

COMMERCIAL GROUP PROPERTIES PLC

BALANCE SHEET

At 30 November 2008

The Financial Statements were approved and authorised for issue by the Board of Directors on

28 May 2009, and were signed on its behalf by:

K E Wills            

The Notes form part of these Financial Statements.

COMMERCIAL GROUP PROPERTIES PLC

INCOME STATEMENT

For the year ended 30 November 2008

The Notes form part of these Financial Statements.

COMMERCIAL GROUP PROPERTIES PLC

STATEMENT OF CHANGES IN EQUITY

Year Ended 30 November 2008

The Notes form part of these Financial Statements.

COMMERCIAL GROUP PROPERTIES PLC 

CASH FLOW STATEMENT

Year ended 30 November 2008

The Notes form part of these Financial Statements.

COMMERCIAL GROUP PROPERTIES PLC

ACCOUNTING POLICIES

Year ended 30 November 2008

Summary of Significant Accounting Policies

The principal Accounting Policies applied in the preparation of these Financial Statements are set out below. These Policies have been consistently applied to all the periods presented, unless otherwise stated.

Basis of Preparation of Financial Statements

The Financial Statements have been prepared in accordance with EU-endorsed International Financial Reporting Standards (IFRS) and IFRIC interpretations and the parts of the Companies Act 1985 applicable to companies reporting under IFRS. The Financial Statements have also been prepared under the historical cost convention, as modified by the carrying of investment property at fair value.

Items included in the Financial Statements are measured using the currency of the primary economic environment in which the entity operates (its "functional currency"). The Financial Statements are presented in Pounds Sterling (£), which is the Company's functional and presentation currency.

Going Concern

In considering the Company's ability to continue in operations for the foreseeable future, the Directors have considered the Company's forecast operating cash-flows for the period up to the end of May 2010, and the development cash-flows associated with the Company's investment properties over periods appropriate to the development in each case.

In the view of the Directors, the Company requires continued financial support in order to continue as a going concern. These Financial Statements have been prepared on a going concern basis in view of the continued support being received from the Company's lending bank, Israel Discount Bank. That support takes the form of facilities available or agreed in outline subject to both specific and general conditions as described below. 

The Company's loan facility at the balance sheet date was £28.5 million and this was extended to £30.2 million in April 2009. This facility is subject to review on 31 May 2009 in relation to the satisfaction of specified conditions. Those conditions have already been met. The facility is repayable on demand; however, the bank has confirmed that subject to no breach of covenants, it is their present intention to continue to make this facility available until at least 31 May 2010. The Directors have reviewed the relevant aspects of the Company's forecasts and the potential development position of the investment property for the period to 31 May 2010 and consider that there should be no breaches of the covenants concerned.  

In addition, discussions are well progressed with the bank in relation to further facilities sufficient to cover the Company's working capital requirement and interest liabilities through to February 2010. It is proposed that this additional facility will be dependant upon the Company achieving certain defined objectives in relation to the Cultural Centre/Industrial Hub at the China Gateway Project at Manston and the commencement of negotiations with other banks in relation to development funding and the possible re-financing of elements of the Company's existing facilities.

In February 2010 the position regarding increased facilities to cover ongoing interest and working capital requirements will be reviewed in the light of progress achieved in negotiations with other funding sources. 

The Directors are confident of a satisfactory outcome to the ongoing discussions with the Company's lending bank with whom they continue to have a close and productive business relationship, and are also confident that all relevant conditions will be met. 

After making enquiries, and considering the matters described above, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. For these reasons, they continue to adopt the going concern basis in preparing the Annual Report and Financial Statements.  

Standards and Interpretations in Issue but not yet Effective or not yet Endorsed

A revised version of IAS 1 "Presentation of Financial Statements" will require information in financial statements to be aggregated on the basis of shared characteristics, and introduce a statement of comprehensive income for annual periods beginning on or after 1 January 2009. The expected impact of this revision is being assessed by management, and where relevant, the Company will incorporate this revision into their Financial Statements in the future.

A revised version of IAS 23 "Borrowing Costs" removes the option of immediately recognising as an expense borrowing costs that relate to assets that take a substantial period of time to get ready for use or sale for borrowing costs relating to qualifying assets for which the commencement date for capitalisation is on or after 1 January 2009. This revision is being assessed by management but is not expected to have an impact on the Company's financial statements as they currently have a policy in place of capitalising borrowing costs for such qualifying assets, which is in line with the revised version of IAS 23.

A revised version of IFRS 3 "Business Combinations" and amendments to IAS 27 "Consolidated and Separate Financial Statements" ensure that the accounting for business combinations is the same whether an entity is applying IFRSs or US GAAP for annual periods beginning on or after 1 July 2009 and subject to EU endorsement. These revisions are not expected to have an impact on the Company's Financial Statements. 

Amendments to IFRS 1 "First-time Adoption of International Financial Reporting Standards" and IAS 27 "Consolidated and Separate Financial Statements" address concerns that retrospectively determine the cost of an investment in separate financial statements and applying the cost method in accordance with IAS 27 on first-time adoption of IFRSs cannot, in some circumstances, be achieved without undue cost or effort for annual periods beginning on or after 1 July 2009. These amendments are not expected to have an impact on the Company's Financial Statements.

An amendment to IFRS 2 "Share-based Payment" clarifies that vesting conditions are service conditions and performance conditions only, and specifies that all cancellations, whether by the entity or by other parties, should receive the same accounting treatment for annual periods beginning on or after 1 January 2009. This amendment is not expected to have an impact on the Company's Financial Statements.

Amendments to IFRS 7 "Financial Instruments: Disclosures" require enhanced disclosures about fair value measurements and liquidity risk for annual periods beginning on or after 1 January 2009 and subject to EU endorsement. These amendments are not expected to have an impact on the Company's Financial Statements.

Amendments to IAS 32 "Financial Instruments: Presentation" and IAS 1 "Presentation of Financial Statements - Puttable Financial Instruments and Obligations Arising on Liquidation" improve the accounting for particular types of financial instruments that have characteristics similar to ordinary shares but are at present classified as financial liabilities for annual periods beginning on or after 1 January 2009. These amendments are not expected to have an impact on the Company's Financial Statements.

Amendments to IAS 39 "Financial Instruments: Recognition and Measurement" provide additional guidance on what can be designated as a hedged item for annual periods beginning on or after 1 July 2009 and subject to EU endorsement. These amendments are not expected to have an impact on the Company's Financial Statements.

Amendments to IFRIC 9 "Reassessment of Embedded Derivatives" and IAS 39 "Financial Instruments: Recognition and Measurement" clarify the accounting treatment of embedded derivatives for entities that make use of the reclassification amendment issued by the IASB in October 2008 for annual periods ending on or after 30 June 2009 and subject to EU endorsement. These amendments are not expected to have an impact on the Company's Financial Statements.

"Improvements to IFRSs" are collections of amendments to IFRSs resulting from the annual improvements project, a method of making necessary, but non-urgent, amendments to IFRSs that will not be included as part of another major project. There are various implementation dates: for May 2008 improvements, earliest is annual periods beginning on or after 1 January 2009; for April 2009 improvements, earliest is annual periods beginning on or after 1 July 2009 and subject to EU endorsement. 

IFRIC 15 "Agreements for the Construction of Real Estate" provides guidance on how to determine whether an agreement for the construction of real estate is within the scope of IAS 11 Construction Contracts or IAS 18 Revenue and when revenue from the construction should be recognised for annual periods beginning on or after 1 January 2009 and subject to EU endorsement. This IFRIC is not expected to have an impact on the Company's Financial Statements.

IFRIC 16 "Hedges of a Net Investment in a Foreign Operation" clarifies:

• whether risk arises from the foreign currency exposure to the functional currencies of the foreign operation and the parent entity, or from the foreign currency exposure to the functional currency of the foreign operation and the presentation currency of the parent entity's consolidated financial statements;

• which entity within a group can hold a hedging instrument in a hedge of a net investment in a foreign operation, and in particular whether the parent entity holding the net investment in a foreign operation must also hold the hedging instrument;

• how an entity should determine the amounts to be reclassified from equity to profit or loss for both the hedging instrument and the hedged item when the entity disposes of the investment For annual periods beginning on or after 1 October 2008 and subject to EU endorsement. 

This IFRIC is not expected to have an impact on the Company's Financial Statements.

IFRIC 17 "Distributions of Non-cash Assets to Owners" standardises practice in the measurement of distributions of nonߛcash assets to owners for annual periods beginning on or after 1 July 2009 and subject to EU endorsement. This IFRIC is not expected to have an impact on the Company's Financial Statements.

IFRIC 18 "Transfers of Assets from Customers" clarifies the requirements of IFRSs for agreements in which an entity receives from a customer an item of property, plant and equipment that the entity must then use either to connect the customer to a network or to provide the customer with ongoing access to a supply of goods or services (such as a supply of electricity, gas or water) for transfers of assets from customers received on or after 1 July 2009 and subject to EU endorsement. This IFRIC is not expected to have an impact on the Company's Financial Statements.

Foreign Currencies

Transactions in foreign currencies are translated into the functional currency at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities in foreign currencies are retranslated at the rates of exchange ruling at the Balance Sheet date. Foreign exchange differences on retranslation and settlement are recognised in the Income Statement.

Fixtures and Fittings

Fixtures and fittings are stated at cost, net of depreciation and any provision for impairment. Cost includes expenditure that is directly attributable to the acquisition of the items.  

Depreciation is provided on fixtures and fittings at a rate calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line basis over its expected useful life, estimated to be 4 years.

Investment Property

Investment property, comprising property to be developed and held for long term rental yields, is not occupied by the Company. Investment property is carried at fair value, representing open market value determined annually by external valuers. Fair value is based on active market prices adjusted, if necessary, for any difference in the nature, location or condition of the specific asset. Changes in fair value are recorded in the Income Statement.

Properties Intended for Sale

Properties intended for sale are classified under current assets and are stated at the lower of cost and net realisable value.

Cost comprises land cost and development costs including attributable borrowing costs and charges allocated during the development period.

Cash and Cash Equivalents

Cash and cash equivalents comprise cash at bank and in hand, demand deposits, bank overdrafts and short term, highly liquid investments that are readily convertible into known amounts of cash and are subject to an insignificant risk of changes in value.

Financial Liabilities

Financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument. Financial liabilities are measured initially at fair value, net of direct issue costs, and subsequently at amortised cost.

A financial liability is derecognised only when the obligation is extinguished, that is, when the obligation is discharged, is cancelled, or expires.

Taxation

Current tax is the tax currently payable based on the taxable profit for the year.

Deferred tax is provided in full, using the liability method, on temporary differences between the carrying amounts of assets and liabilities and their tax bases, except when, at the initial recognition of the asset or liability, there is no effect on accounting or taxable profit or loss. Deferred tax is determined using tax rates and laws that have been substantially enacted by the Balance Sheet date, and that are expected to apply when the temporary difference reverses.

Tax losses available to be carried forward and other tax credits are recognised as deferred tax assets to the extent that it is probable that there will be future taxable profits against which the temporary differences can be utilised.

Changes in deferred tax assets or liabilities are recognised as a component of the tax expense in the Income Statement, except where they relate to items that are charged or credited directly to equity, in which case the related deferred tax is also charged or credited directly to equity.

Share Capital

Ordinary shares are classified as equity.  

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

Revenue Recognition

Revenue comprises the fair value of the consideration received or receivable by the Company for income arising in the ordinary course of the Company's activities from its property interests, excluding VAT. 

Borrowing Costs

The Company has adopted a policy of capitalising borrowing costs in respect of qualifying assets. Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of the cost of that asset.

The amount of borrowing costs eligible for capitalisation is determined by calculating the weighted average of the borrowing costs applicable to the qualifying asset that are outstanding during the period other than borrowings made specifically for the purposes of obtaining a qualifying asset.

Borrowing costs are not capitalised during extended periods when development activity is suspended.

COMMERCIAL GROUP PROPERTIES PLC

NOTES TO THE FINANCIAL STATEMENTS
Year ended 30 November 2008

1.  Financial Risk Management and Financial Instruments

      Financial Risk Factors

The Company's activities expose it to a variety of financial risks. The main risks are identified as being the availability of sufficient liquidity to continue operations and risks associated directly with the value of the Company's property interests. 

Liquidity Risk

The Company has borrowed to finance the acquisition and development of its sites. Israel Discount Bank, which has provided the finance to the Company, has reserved the right to demand repayment of all advances made by it to the Company at any time. However, as long as the Company does not breach any covenants, the facility is expected to be available until 31 May 2010. The Directors have a close relationship with the bank and keep them fully informed of all aspects of the Company's affairs so that they may negotiate any funding required in advance. Further details regarding additional funding and ongoing negotiations with Israel Discount Bank are detailed in the statement on going concern on page 19. 

Foreign Exchange Risk

The Company undertakes sale and purchase transactions denominated in foreign currencies. The risk is managed by maintaining bank accounts denominated in those currencies.

Credit Risk

Where debt finance is utilised, this is subject to pre-approval by the Board of Directors, and such approval is limited to financial institutions with a proven track record. The amount of exposure to any individual counterparty is not a specified limit but is reassessed annually by the Board.

Interest Rate Risk

The Company has both interest bearing assets and liabilities. Interest-bearing assets are only cash balances, all of which earn interest at a fixed rate. The Company has a policy of negotiating competitive interest rates with its bankers on an ongoing basis. The Directors will revisit the appropriateness of this policy should the Company's operations change in size or nature.

 Capital Risk Management

Fair Value Estimation

2.    Critical Accounting Estimates, Judgements and Assumptions

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectation of future events that are believed to be reasonable under the circumstances.

The Company makes estimates, judgements and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The assumptions and judgements that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the financial statements are detailed below.

a) Pre-lease agreement

As reported in the previous period's Financial Statements the Company has entered into a pre-lease agreement with the Beijing SME Association in relation to a significant part of the Manston development. It is assumed that the Beijing SME Association will proceed with the eventual signing of formal leases in relation to this agreement despite the extended development period that is now expected. The Directors maintain a constant dialogue with the Beijing SME Association and remain confident that this will be the case. Should the Beijing SME Association fail to sign leases upon the development of the site the Directors are of the view that other organisations and companies within China would be eager to become tenants under similar or improved terms.

b) Working capital and development finance

Notes 12 and 22 to the Financial Statements detail the position with regards to the Company's banking facilities. It is assumed that the existing facilities and such further facilities as may be required to fund the ongoing working capital requirement of the Company will be made available. Although the facility at the Balance Sheet date was repayable on demand, the Company's lending bank have indicated to the Company that it is their intention to make that facility and further facilities available to the Company until at least 31 May 2010. It is the Directors' belief that their continued good relationship with the Company's lending bankers will enable their working capital requirement to be met.

c) Deferred tax asset

Included in the balance sheet is a deferred tax asset of £1.353 million (2007 £0.7 million). As detailed in the taxation accounting policy this relates to tax losses recognised to the extent that there will be future taxable profits against which the losses can be utilised. In recognising this deferred tax asset the Company is assuming that such future profits will arise. The creation of such profits from its main activities is the Company's primary objective and the Directors are confident that the objective will be achieved. Should this assumption prove to be incorrect then the deferred tax asset would be written down to nil

d) General economic uncertainty    

In preparing the Financial Statements and in planning for the future development of the Company's trading activities the Directors have had to make judgements regarding general economic conditions and the uncertainties arising from the worldwide recession. The Directors have actively discussed these issues with senior business and political figures in both China and the UK and are of the opinion that the Company's Manston project is well placed to benefit from any subsequent upturn in the global economy.  

e) Value of properties intended for sale

As detailed in note 6 to the Financial Statements the value of the Company's properties intended for sale has been reduced to £2 million. This is based on the result of the Company's review of the disposable value of the property and interest expressed by potential purchasers. It is therefore the Directors' opinion that £2 million represents an achievable disposal value for these property holdings.

A depreciation charge of £3,153 is included in administrative expenses in the Income Statemen

The Company's land and buildings were last revalued as at 16 October 2008 by Matthews and Goodman LLP, Chartered Surveyors and independent valuers. Valuations were made on the basis of market value subject to and with benefit of an agreement to lease 1 million square feet of industrial buildings. The fair value surplus was credited to the Income Statement (see Note 24 for details regarding the change in accounting policy). Matthews and Goodman LLP have considered the events between the date of the valuation and the balance sheet date. They have concluded that there would have been no material change in value reported. They also confirmed that the assumptions used in arriving at the valuation would still be valid at the balance sheet date.

Included in additions to investment property is £1,145,186 (2007 £987,760) interest relating to the finance costs directly attributable to this asset. 

Part of the total bank borrowings of £28,328,747 (2007 £24,495,564) are secured by way of a legal charge against the investment property noted above.

Part of the total bank borrowings of £28,328,747 are secured by way of a legal charge against the properties intended for sale stated above.

The write down in value of the properties for resale is a consequence of the national reduction in land bank values and development land values. In addition the option by Dover Harbour Board to acquire part of the Farthingloe site is now unlikely to come to fruition

No trade receivables are overdue and no provisions are required.

10    Retained Earnings

Included within retained earning are surpluses arising from the open market valuation of investment property amounting to £26.6 million which are unrealised and not distributable

 All the trade and other payables are due within one year.

Bank borrowings are repayable on demand. However the bank has indicated their intention to make the facility available until 31 May 2010. The borrowings bear interest at LIBOR plus 3%.

Total bank borrowings of £28,328,747 (2007 - £24,495,564) are secured by way of a legal charge against the investment property and properties intended for sale.

At 30 November 2008, the Company had £271,253 (2007 - £4,104,436) remaining against the agreed facility of £28.5 million. The facility was extended after the year end by a further £1.7 million. See Note 22 and the statement on going concern on page 19 for further details.

The fair value of the borrowings is as stated above.

The deferred tax asset represents Schedule A losses carried forward which are expected to be offset against future rental income from the Manston development. The deferred tax liability represents the surplus arising from the fair value gain on the investment property.

The gross movement on the deferred tax account is:

19.    Taxation (continued)

 Factors affecting tax charge for period

The tax assessed for the period is the rate of corporation tax applicable in the UK of 28% (2007 - 28%).The differences are explained below:

No deferred tax asset has been included in respect of schedule DI tax losses of £10,625,000 (2007     £Nil) as it is not probable that the Company will make such taxable profits in the short term.

        The fair value surplus arises from the change in accounting policy as detailed in Note 24.

20.    Loss per Share

Basic

Basic loss per share is calculated by dividing the loss attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the period.

Diluted

Diluted (loss)/profit per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares.

The Company has no dilutive potential ordinary shares and therefore the weighted average number of ordinary shares in issue is the same     as for the basic earnings per share calculation.

21.    Related Party Transactions

During the year, the Company received the following amounts from related parties:

Licence income of £22,000 (2007 - £Nil) from Kentish Barn Weddings Limited, a company of which K E Wills is a director and shareholder. At the year end £2,350 (2007 £Nil) was outstanding.

During the year, the Company paid the following amounts to related parties:

Administration fees of £30,625 (2007 - £24,500), property maintenance costs of £34,033 and reimbursement of fees for helicopter flights of £12,357 and public relations expenses of £4,791 to Summit Engineering Limited, a company of which K E Wills is a director and shareholder.  An amount of £720 (2007 - £3,829) was outstanding at the year end.

Property maintenance costs of £8,737 (2007 - £104,185) to Commercial Group Contractors Limited, a company of which K E Wills is a director and shareholder. No amounts were outstanding with this Company at the year end (2007 - £4,426).

Rent of £10,200 (2007 - Fees for helicopter flights £24,100) to Heli-Charter Limited, a company of which K E Wills is a director and shareholder. No amounts were outstanding with this Company at the period end (2007 - £nil).

The directors fees paid to C Seymour-Prosser were paid in accordance with an agreement with Wallis Limited. The fees during the year were £126,923 (2007 - £75,000). During the year, the benefits of this contract were transferred from Wallis Limited to Apsley Holdings Limited. At the year end, £10,000 (2007 - £Nil) was outstanding. 

Consultancy fees of £10,000 (2007 - £28,911) to Westmere Limited, a company of which Chris Seymour-Prosser is a director and shareholder. No amounts were outstanding with this Company at the year end (2007 - £nil).

In 2007 costs regarding promotional material of £21,326 were made to Pure Brilliance Limited, a company of which J A Wing is a director and shareholder. No amounts were paid to this Company during 2008 and no amounts were outstanding at either period end.

In 2007 a loan of £50,000 was received from Omega Properties Limited, a significant shareholder of the Company. The loan was unsecured and interest free. The amount outstanding at 30 November 2007 was £14,365. No further loans were received during 2008 and no amount was outstanding at the year end.

22.    Events after the Balance Sheet Date

Since the year end a further facility of £1.7 million has been agreed with Israel Discount Bank. The facility now stands at £30.2 million and the bank have agreed to make this available until 31 May 2010. The loan is repayable on demand, but as long as the Company does not breach any covenants, the facility is expected to be available until 31 May 2010. This revised facility of £30.2 million carries interest at 3% over LIBOR and, assuming no breach in covenants, has no capital repayments prior to 31 May 2010. As explained in the statement on going     concern on page 19, the Company is still in advanced negotiations to increase the facility     beyond £30.2 million.

23.    Ultimate Controlling Party

The Directors believe there to be no ultimate controlling party.

24.    Change in accounting policy with retrospective application - Prior year adjustment following early adoption of amendments to IAS 40 contained in "improvements to IFRSs" issued in May 2008

During 2008 the Company changed its accounting policy with respect to its property under development and reclassified deferred expenditure as an addition to investment property. The property under development was reclassified as investment property held under the fair value model and the subsequent fair value gain was credited directly to the Income Statement. Management judges that this policy provides reliable and more relevant information because it results in a more transparent treatment of these matters. This change in accounting policy has been accounted for retrospectively, and the comparative figures for 2007 have been restated. The effect of the change on 2007 is tabulated below. 

25.    Commitments

In 2007 there was a capital commitment of £248,000 in respect of the investment property. There are no capital commitments at 30 November 2008.

Notes to the announcement:

1. Copies of the Preliminary Audited Results are available from the Company's website as required by AIM Rule  26 which can be found at www.cgpplc.com.

2. Copies of the Audited Results are being posted to Shareholders on 29 May 2009.

3. The above financial information comprises non-statutory accounts within the meaning of section 240 of the Companies Act 1985. The financial information for the year ended 30 November 2008 has been extracted from published accounts for the year ended 30November 2008 that will be delivered to the Registrar of Companies and on which the report of the auditors was unqualified and did not contain statements under s237 (2) or (3) of the Companies Act 1985.

4. The Company has also attached a Notice of Annual General Meeting (the "AGM") to the Report and Accounts and this is expected to be sent to Shareholders on 29 May 2009. The AGM will take place on 25 June 2009 at 11.00 a.m. at the offices of Chromex Mining, 36 Dover Street, London, W1S 4NH.

For further information, please contact:

FR SELFWASUSEEI

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