Namibian Resources PLC
03 October 2007



             Namibian Resources Plc - 2nd Quarter Progress Report


                             Namibian Resources Plc


 Progress report for 2nd Quarter period from 1st June 2007 to 31st August 2007.


During the Quarter activities have been primarily focussed on sampling of
various deposits and exploration work to enable production to be planned for
future periods.  In addition, mining was divided between completion of mining of
the Hannahtal deposit, bedrock sweeping of Hannahtal and northern West Salztal,
and reprocessing of tailings.  The total production of diamonds from all sources
was 454 ct at an average diamond size of 0.53 ct/st, compared to 519 ct at an
average 0.59 ct/st.  While the average diamond size is considered to be
satisfactory, the total production reflects the emphasis on sampling and
exploration, and the directors intend production levels to be substantially
higher in future.


Mining

The small Hannahtal deposit was initially prospected in late April and early May
2007 and mining which started in April was completed during the quarter.  Total
production from this deposit (including in the previous quarter) was 548 ct at
an attractive average diamond size of 0.69 ct/st.  The mined area is now being
rehabilitated.

During the quarter a small amount of production was derived from bedrock
sweeping at the northern end of Salztal West.  Mining has now ceased in this
part of the valley which is distinct from the main deposit along the floor of
the West Salztal valley where it is hoped to resume operations in the present
quarter.

After the quarter end, mining started on the Salzpfanne deposit which is
discussed below.


Sampling

Sampling has continued to be focussed on the wind-eroded basins in the SW of the
Pomona area.  Although individual deposits in this part of the mining contract
area are small they are notable for their large average diamond sizes.  The
following separate deposits have been sampled during the quarter.

Salzpfanne.  As reported for the previous quarter, it was envisaged that the DMS
may be re-positioned to this location as a more central site for future
operations.  A sample trench was excavated to determine whether the proposed
site for the DMS was negative for diamonds.  In fact the trench was strongly
positive across much of the width of the valley, as was a follow-up trench some
100 m to the north.  On the basis of the sample results to date a preliminary
non-Reporting Code resource estimate for this deposit is 4,600 ct at an average
diamond size of 0.42 ct/st.  Prior to re-locating the DMS it is necessary to
work out this area and, as noted above, mining has been started adjacent to the
first sample line.

Mariannental.  Sampling has been completed in this small basin to the NW of
Salzpfanne.  Three trenches were excavated across the deposit and a diamond
concentration with a reasonable prospect of eventual economic extraction was
outlined in the central and eastern part of the lower northern valley slope
where the deposits average 40 cm in thickness.  An indicated diamond resource of
300 ct is estimated at an average diamond size of 0.51 ct/st.

Hannahtal North.  This basin lies to the north of Hannahtal and to the west of
northern Annatal.  Three sample lines have been completed and all have produced
diamonds.  More sample lines are required prior to estimation of the diamond
resource but the average size of the diamonds recovered to date (0.65 ct/st) is
attractive.


Current activities

Current activities are focussed on the mining of the Salzpfanne deposit.  Not
only will this result in a significant increase in production for the present
quarter relative to the one just passed but it is also important for the longer
term plan for re-location of the major items of processing equipment.

The West Salztal deposit remains to be worked out.  Operations had to be
suspended there because of excess water and flooding of the mining area.
Pumping has reduced the water level and it is anticipated that additional
production should be derived from this deposit in the present quarter.


Interim Results

Our interim results for the six months ended 31 August 2007 will be announced by
the end of October.


A C A Carlton
Chief Executive Officer.

The technical information presented in this report has been reviewed by Dr
Donald G Sutherland of Placer Analysis Ltd, technical consultants to Sonnberg
Diamonds (Pty) Ltd.  Dr Sutherland is a Qualified Person for the purposes of the
AIM Guidance Note on Mining Oil and Gas companies dated March 2006.  Dr
Sutherland has BSc and PhD degrees from Edinburgh University and is a Member of
the Institute of Materials, Minerals and Mining.  He has over 30 years
experience in diamond exploration and mining.  References in the report to
diamond resources have been made following 'The Reporting Code' for reporting of
Mineral Exploration Results, Mineral Resources and Mineral Reserves prepared by
the Institution of Mining and Metallurgy (now the institute of Materials,
Minerals and Mining) Working group on resources and Reserves in Conjunction with
the European Federation of Geologists and the institute of Geologists of
Ireland.


For further information, please contact:


Namibian Resources
Tony Carlton                                           +44 (0)20 8726 0900

Collins Stewart Europe Limited
Adrian Hadden                                          +44 (0)20 7523 8350



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