RNS Number:8939M
Dimension Resources Ld
27 June 2003

DIMENSION RESOURCES LIMITED
and its subsidiaries

Chairman's statement
31 December 2002

Dimension Resources Ltd is the parent company for a group quarrying and
processing decorative stone in the Republic of South Africa.  Its products are
primarily intended to be exported worldwide but are also sold in South Africa.

Financial Results

The results for the year continue to show losses, although all indicators show
an improving position.  I had expected that the Group would be profitable at an
operating level in South Africa during 2002, but this expectation was not met
due to the substantial decline in the rate of exchange between the US dollar, in
which sales are priced, and the South African Rand, which applies to most costs.
Nevertheless I am pleased to record that the trend remains an improvement in
trading which should result in a positive position in the near future.

Sales demand remains strong, and the limiting factor on growth is production
capacity rather than orders.  For this reason, the Directors are seeking ways of
obtaining finance for new equipment in order to increase production levels.

The group remains virtually debt free, having a small overdraft facility and a
finance lease on a front end loader, together with a loan of #10,000 from me,
which is intended to be capitalized in due course.  So far as assets are
concerned, the group has both a freehold processing plant in Vredendal and a
freehold office in Somerset West, both in South Africa, in addition to its
quarries and equipment.

Stone Quarries

Bowenite

The Group supplies bowenite blocks under an exclusive contract with Antolini
Luigi & Cie, one of the leading Italian stone companies.  All blocks produced by
the Group to date have been accepted by Antolini.  During 2002 the quarry has
been developed to enable blocks of a more consistent quality to be produced
despite the fractured nature of the deposit.  This development is now bearing
fruit in increasing levels of production.

Coloured granites

The Group's properties in the Pofadder area of Namaqualand have deposits of a
number of coloured granites.  Quarries have been established for grey/blue
("Atlantic Blue"), brown ("Cape Autumn"), red ("Cape Red") and multicoloured
("African Rainbow") granites.  Production remains concentrated on Cape Autumn
and  African Rainbow.

Cape Autumn is selling well in the South African market in particular, and is
now the fourth biggest selling granite in that country.

African Rainbow is still in the quarry development stage, but test blocks have
been well received both locally in South Africa and abroad.  This is one
material where increased prices will offset the dollar devaluation.

Rustenburg black granite

In January 2002, the Company announced that it had agreed to acquire a
Rustenburg Black granite quarry situated near Brits, North West Province, South
Africa.  Unfortunately, the mining licence has not yet been obtained by the
vendor, so  this proposal remains on hold.

Marble

The Group has now secured a black marble deposit in the area of the Vredendal
processing plant.  A mining licence permitting production to commence is now in
place, and the Group is sourcing the necessary equipment and finance to commence
production.

Processed stone

Vredendal plant

The processing plant comprises a freehold factory and offices of some 1,800
square metres on a site of over 18,000 square metres.  The factory is fully
equipped for marble tile production, with an automated marble tile cutting line
and facilities for handling and cutting marble blocks.  During the year a number
of contracts were supplied, including a hospital in Somerset West.  New orders
included strips supplied by container to Italy, and the first container was
shipped late in 2002.

Sales to the local market are also growing, and imported travertine is being cut
at the factory to increase the product range.  Further increases in this product
range remain a priority for 2003.

Sales Showroom and Distribution Warehouse

The Group's warehouse and showroom has been relocated from the Airport
Industrial Estate, where its position was not ideal, to Somerset West.  Sales
through this outlet continue to increase with the Groups own products being
supplemented by distributorship agreements.  The Group has recently commenced
selling and installing special products for bathrooms and kitchens.

Annual General Meeting

The company's annual general meeting will be held on 21 August 2003, and a
notice is included with this document.

Future prospects

The Board believes that the prospects for the Group are constantly improving and
are better than at any time since the Company's flotation.  The requirement
remains to increase production to enable the Group to reach profitability, and
the Board is planning to achieve this.

Finally I would like to thank all members of staff for their efforts through a
difficult period.

Brian Moritz

(Chairman)
Dated 27 June 2003


DIMENSION RESOURCES LIMITED
and its subsidiaries

Consolidated income statement
for the year ended 31 December 2002


                                   Note                        Group

                                                      2002                2001
                                                       GBP                 GBP

Turnover                                  2        234,259             184,463

Cost of sales                                      120,790             104,273
                                                  ----------------------------

Gross profit                                       113,469              80,190
Administrative expenses                           (401,192)           (507,643)
                                                  ----------------------------
Operating loss                            3       (287,723)           (427,453)
Interest receivable and similar income               2,407               7,910
Interest payable and similar charges                (8,367)            (10,294)
                                                  ----------------------------
Net loss before taxation                          (293,683)           (429,837)
Taxation                                                 -                   -
                                                  ----------------------------
Net loss for the year                             (293,683)           (429,837)
                                                  ============================

Earnings per share (pence)                           (0.28)              (0.51)

Weighted average number of shares in issue     104,042,498          85,030,000



DIMENSION RESOURCES LIMITED
and its subsidiaries

Consolidated balance sheet
for the year ended 31 December 2002

                                    Note                      Group

                                                    2002                 2001
                                                     GBP                  GBP
ASSETS

Non-current assets                            15,696,061           15,580,648

Tangible assets                          5     1,360,850            1,240,213
Stone deposits                           6    14,306,101           14,306,101
Pre-production costs                     7        29,110               28,085
Investments                              8             -                6,249

Current assets                                   311,424              417,262

Inventories                              9       243,053              182,667
Trade and other receivables             10        53,831               48,100
Cash at bank and on hand                          14,540              186,495

                                              ----------           ----------
Total assets                                  16,007,485           15,997,910
                                              ==========           ==========

EQUITY AND LIABILITIES

Shareholders' funds                           15,769,817           15,393,395

Called up share capital                 11     6,706,000            6,706,000
Share premium account                   11    11,577,856           11,577,857
Profit and loss account                       -2,514,039           -2,890,462

Long-term liabilities                   15        48,597               32,446

Foreign currency translation reserve              41,597              500,739

Creditors: amounts falling due within
one year                                         147,473               71,329

Trade and other payables                16       125,383               70,689
Provisions                              16        22,090                  640

                                              ----------           ----------
Total equity and liabilities                  16,007,485           15,997,909
                                              ==========           ==========



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