RNS Number:4758T
HPD Exploration PLC
19 December 2003


                              HPD EXPLORATION PLC
                            SECOND INTERIM STATEMENT
                    FOR THE 6 MONTHS ENDED 30 SEPTEMBER 2003

                              CHAIRMAN'S STATEMENT

I enclose the second interim financial statements for the 6 months ended 30
September 2003. In August 2003 HPD changed its financial period end from 30
September to 31 December to bring it into line with the financial year ends of
its subsidiaries. The first interim financial statements were for the 6 month
period ended 31 March 2003. An annual report for the 15 month period ended 31
December 2003 will be sent to shareholders in 2004.

In my Chairman's statement at the end of last year I said that HPD was focusing
its activities on Patagonia. This year we have made major advances in the
development of the Company and we currently have ongoing drilling and
exploration programmes in both Chile and Argentina. Progress is summarised as
follows:

   * In March HPD shares began trading on AIM following the successful
    raising of #4 million: #2.3 million though a private placing in October 2002
    and #1.7 million through an open offer and private placing on admission to
    AIM.


   * In June we announced the results of our first season's exploration
    programme in Argentinean Patagonia including the discovery of epithermal
    veins at Cerro Crespo and Cerro Nelson in Chubut province. Further
    exploration at Cerro Crespo discovered two large vein fields, 'Cabana' and
    'Jasper', each containing swarms of low sulphidation, epithermal veins with
    textures indicating that erosion of the system is shallow. Over 4,000 metres
    of veins have been mapped, with individual veins ranging in thickness from
    0.5 to 5 metres and reporting grades of up to 15.8 g/t gold. Preparation is
    underway at Cerro Crespo for a 5,000 metre RC drilling campaign to begin in
    March 2004.


   * In July the Option to Purchase Agreement was formalised with WestMag
    over the Coyhaique gold property in Chilean Patagonia. Subsequent
    exploration identified a new mineralised zone named the 'Ridge' that bisects
    a large circular dome feature that is suspected of being the by-product of
    an underlying intrusive. Visible gold has been observed in several samples
    including a cluster of gold flakes up to 4mm long and 0.5mm thick. Following
    approval of an Environmental Impact Study in November a 10,000 metre
    drilling programme began. The first five holes on the Adriana vein all
    intersected a massive vein, of up to 12 metres intersection width. The
    initial phase of the drill programme consisting of 5,400 metres is scheduled
    to conclude in January 2004.


   * In November HPD announced the offer for sale of substantially all of its
    interest in Landore Resources Inc. The disposal of our North American
    interests provided HPD with net proceeds of approximately #1.3 million for
    continuing exploration and drilling in Patagonia while enabling those
    shareholders who accepted the offer to acquire an interest in Landore and to
    continue to participate in the future of that company.


   * In December we announced the consolidation of our interests in South
    America by the acquisition of Minera Puerto Madryn S.A. whose principal
    asset is 50 per cent of Patagonia Gold S.A. Consideration for the
    acquisition was satisfied by the issue of 89,692,574 HPD Ordinary Shares
    representing 40 per cent of the enlarged issued share capital of HPD. As a
    result of this acquisition Patagonia Gold S.A. has become a wholly owned
    subsidiary.


   * In January 2004 it is proposed that HPD changes its name to Patagonia
    Gold Plc to reflect the focus of our operating activity.

The Board of Directors of HPD welcome two of the directors of Minera Puerto
Madryn S.A., Mr. Carlos Miguens and Mr. Gonzalo Tanoira, who have joined us as
Deputy Chairman and Finance Director respectively. Both Mr. Miguens and Mr.
Tanoira have extensive business experience in Latin America and their
appointments are consistent with our strategy to build the Company's interests
both through the development of our ongoing exploration projects and through
acquisition. I take this opportunity to thank both Mr. Neil Herbert (Finance
Director) and Mr. David Dare (Non-executive Director), who have retired from the
Board, for their valued contributions to the successful development of HPD over
the last three years.

Shareholders will be kept informed with regular progress reports as the
Directors continue to develop our ongoing exploration activities and as new
business opportunities are evaluated.


Richard Prickett
Chairman

19 December 2003

UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE 6 MONTHS ENDED 30 SEPTEMBER 2003
                                       Six         Six         Year       Year
                                 months to   months to           to         to
                                   30 Sept    31 March      30 Sept    30 Sept
                                      2003        2003         2003       2002
                                         #           #            #          #
AIM listing expenses                     -    (297,798)    (297,798)         -
Administrative expenses and
exploration costs                 (436,781)   (364,833)    (801,614)  (191,387)
Amortisation of goodwill           (18,894)    (18,894)     (37,788)   (23,247)
Other operating income                   -           -            -      6,529
                                    -------     -------      -------    -------
OPERATING LOSS                    (455,675)   (681,525)  (1,137,200)  (208,105)
Share of operating loss in
Canadian associate                (145,432)   (108,108)    (253,540)    (2,702)
Share of operating loss in
Patagonian joint venture          (181,999)   (151,451)    (333,450)   (19,614)
                                    -------     -------      -------    -------
TOTAL OPERATING LOSS: GROUP
& SHARE OF JOINT VENTURE &
ASSOCIATE                         (783,106)   (941,084)  (1,724,190)  (230,421)
Loss on dilution of interest
in Canadian associate                    -           -            -       (621)
Interest receivable:
- Group                             33,774      20,421       54,195     16,886
- Share of associate                 1,244       1,794        3,038      1,456
                                    -------     -------      -------    -------
                                    35,018      22,215       57,233     18,342
                                    -------     -------      -------    -------
LOSS ON ORDINARY ACTIVITIES
BEFORE TAXATION                   (748,088)   (918,869)  (1,666,957)  (212,700)
TAX ON LOSS ON ORDINARY                  -           -            -          -
ACTIVITIES                          -------     -------      -------    -------
RETAINED LOSS FOR THE
PERIOD/YEAR                       (748,088)   (918,869)  (1,666,957)  (212,700)
                                    -------     -------      -------    -------
LOSS PER SHARE                        (0.5p)      (0.7p)       (1.2p)     (0.2p)
DILUTED LOSS PER SHARE                (0.5p)      (0.7p)       (1.2p)     (0.2p)



UNAUDITED TOTAL CONSOLIDATED STATEMENT OF
TOTAL RECOGNISED GAINS AND LOSSES
                                    Six           Six         Year        Year
                              months to     months to           to          to
                                30 Sept      31 March      30 Sept     30 Sept
                                   2003          2003         2003        2002
                                      #             #            #           #
Loss attributable to
shareholders of HPD
Exploration PLC                (748,088)     (918,869)  (1,666,957)   (212,700)
Unrealised exchange rate
movements                       (28,959)       15,136      (13,823)    (10,822)
                                 -------       -------      -------     -------
TOTAL RECOGNISED LOSSES FOR
THE PERIOD/YEAR                (777,047)     (903,733)  (1,680,780)   (223,522)
                                 -------       -------      -------     -------

UNAUDITED CONSOLIDATED BALANCE SHEET
AT 30 SEPTEMBER 2003
                                              30 Sept     31 March     30 Sept
                                                 2003         2003        2002
                                                    #            #           #
FIXED ASSETS
Intangible fixed assets                       684,685      694,338     446,313
Tangible fixed assets                           6,786        8,597       9,500
Investments
- Share of net assets in Canadian
associate                                     188,364       50,617      18,650
- Other investments                                 -            -           1
                                               -------      -------     -------
                                              188,364       50,617      18,651
                                               -------      -------     -------
Investment in Patagonian Joint venture:
- Share of gross assets                       155,217      164,264           -
- Share of gross liabilities                   (5,344)      (9,505)          -
                                               -------      -------     -------
                                              149,873      154,759           -
                                               -------      -------     -------
TOTAL FIXED ASSETS                          1,029,708      908,311     474,464
CURRENT ASSETS
Debtors: amounts falling due in less
than one year                                  91,942       42,821      92,529
Cash at bank and in hand                    2,254,632    3,226,238     530,850
                                               -------      -------     -------
                                            2,346,574    3,269,059     623,379
CREDITORS: AMOUNTS FALLING DUE WITHIN
ONE YEAR                                      (17,095)     (37,572)    (30,868)
                                               -------      -------     -------
NET CURRENT ASSETS                          2,329,479    3,231,487     592,511
                                               -------      -------     -------
TOTAL ASSETS LESS CURRENT LIABILITIES       3,359,187    4,139,798   1,066,975
PROVISIONS FOR LIABILITIES AND CHARGES
Investment in joint venture:
- Share of gross assets                             -            -      17,125
- Share of gross liabilities                        -            -     (56,397)
                                               -------      -------     -------
                                                    -            -     (39,272)
Provisions                                    (24,706)     (28,270)    (27,492)
                                               -------      -------     -------
                                              (24,706)     (28,270)    (66,764)
                                               -------      -------     -------
NET ASSETS                                  3,334,481    4,111,528   1,000,211
                                               -------      -------     -------

CAPITAL AND RESERVES
Called up share capital                     1,345,389    1,345,389   1,047,073
Share premium account                       3,965,845    3,965,845     249,111
Profit and loss account                    (1,976,753)  (1,199,706)   (295,973)
                                               -------      -------     -------
EQUITY SHAREHOLDERS' FUNDS                  3,334,481    4,111,528   1,000,211
                                               -------      -------     -------

Notes
This report is prepared on the basis of the accounting policies set out in the
most recent set of annual financial statements.

The report was approved by the Board of Directors on 19 December 2003.

The comparative figures for the year ended 30 September 2002 are not the Group's
statutory accounts for the financial year. Those accounts have been reported on
by the Group's auditors and delivered to the registrar of companies. This report
of the auditors was unqualified and did not contain a statement under Section
237(2) or (3) of the Companies Act 1985.




                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
IR ILFILFRLALIV