All information is at 30 June 2013 and unaudited. 
Performance at month end with net income reinvested 
               One   Three     Six    One  Three    Five 
             Month  Months  Months   Year  Years   Years
Net asset value  -8.2%  -11.4%   -9.0%  -3.4%   6.8%  -22.9%
Share price     -10.2%  -12.8%   -9.4%  -6.6%   3.1%  -19.6% 
Sources: Datastream, BlackRock 
At month end
Net asset value - capital only:          104.34p
Net asset value - cum income**:          104.87p
Share price:                             104.00p
Discount to NAV (cum income):               0.8%
Net yield:                                  5.8%
Gearing - cum income:                       7.8%
Total assets^^:                          £106.6m
Ordinary shares in issue:             94,258,000
Gearing range (as a % of net assets):      0-20% 
**Includes net revenue of 0.53p.
^^includes current year revenue. 
Sector %                 Total   Country             % Total
Analysis            Cap Assets   Analysis          Cap Assets
Integrated Oil            32.4   Global                  34.0
Exploration & Production  17.8   Canada                  21.1
Diversified               16.8   USA                     20.8
Copper                     6.9   Latin America           10.1   
Gold                       6.7   Europe                   8.1
Oil Services               5.7   Asia                     3.9
Oil Sands                  3.1   Australia                1.2
Distribution               2.1   South Africa             0.9
Fertilizer                 2.0   Russia                   0.9
Aluminium                  1.7   China                    0.8
Iron Ore                   1.7   Africa                   0.3
Nickel                     1.7   Current liabilities     (2.1)
Silver                     0.9                          -----
Coal                       0.8                          100.0
Tin                        0.7                          =====
Zinc                       0.6
Platinum                   0.5
Current liabilities       (2.1) 


Ten Largest Equity Investments(in alphabetical order)

Company                  Region of Risk
Anadarko Petroleum       USA
Antofagasta              Latin America
BHP Billiton             Global
BP                       Global
Chevron                  Global
Eni                      Europe
ExxonMobil               Global
Occidental               USA
Rio Tinto                Global
Total                    Global

Commenting on the markets, Richard Davis, representing the Investment Manager

Federal Reserve Chairman Bernanke took the wind out the equity market's sails
when he outlined a schedule for the reduction and subsequent withdrawal of
monetary stimulus. In commodity markets, gold was a notable victim of this
news, falling by 12.7% over the course of the month. It is important to
highlight that any `tapering' of stimulus by the Federal Reserve will be
contingent on strong, improving economic data and any withdrawal is not
anticipated until unemployment in the US reaches 7.0% (it currently stands at
7.6%). Nonetheless, equity markets weakened and a spike in interbank lending
rates in China did nothing to aid the mining sector's cause. The rise in SHIBOR
and the absence of swift intervention by the PBOC raised the spectre of a
credit event in the commodity hungry country, therefore, it was a weak month
for most mining commodities. Among the base metals, copper declined by 7.6%,
aluminium by 7.9% and tin by 5.9%. Iron ore bucked the trend and finished the
month up by 4.0%, at US$117/t (source: CLSA, 63.5% Fe). Inventories of iron ore
held at Chinese steel mills and ports are comparatively low, suggesting the
destocking seen over recent months could have reached an end. Iron ore equities
are, however, pricing in further weakness on the expectation of seasonal demand
softness and the possibility of new supply growth filtering into the market
over the course of the rest of the year.

With commodity prices eating into cost curves in many cases and investors
calling for capital discipline from the mining industry, cost-cutting is high
on management teams' agendas. Most mining companies are starting with `easy
wins', such as reducing headcount and exploration spending. For example, BHP
Billiton has cut headcount at the BMA coking coal operations by 35.0% since
July 2012 and Rio Tinto plans to reduce personnel at its London headquarters by
more than half. While these costs can be removed quickly and will have an
immediate impact on all-in profitability, in our view companies should also
think longer term and re-evaluate mine plans in order to optimise

Currency plays an important role in mining company margins, revenues are
typically received in US dollars but costs are largely paid in local
currencies. The weakening of certain commodity producer currencies against the
US dollar year to date has provided some relief against declining commodity
prices. Against the US dollar, the Australian dollar has fallen by 11.8% year
to date and the South African rand by 17.0%. Mining equities fell by 14.0% in
June (in Sterling terms).

Despite macro concerns, oil prices remained resilient with West Texas
Intermediate (WTI) and Brent crude rising by 4.8% to US$96.4/Bbl and by 2.0% to
US$102.5/Bbl respectively. The differential between US oil prices (WTI) and
international oil prices (Brent) peaked in September 2011 at US$30/Bbl, as a
build in inventories at Cushing, Oklahoma weighed on US prices. The key driver
in reducing the discount at which WTI has traded has been the construction of
several pipelines which facilitate the delivery of crude directly to refineries
on the Gulf coast rather than to Cushing. As at the end of June the
differential had narrowed to US$6/Bbl. Energy equities closed the month down by
3.6% (in Sterling terms).

All data sourced from Datastream and quoted in US Dollars unless otherwise

15 July 2013


Latest information is available by typing on the
internet, "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICV
terminal). Neither the contents of the Manager's website nor the contents of
any website accessible from hyperlinks on the Manager's website (or any other
website) is incorporated into, or forms part of, this announcement.

-0- Jul/15/2013 14:26 GMT

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