Appointment of Broker

Anglesey Mining plc (LSE: AYM) (“Anglesey” or the “Company”) is pleased to announce the appointment of Beaufort Securities Limited as the Company’s corporate broker with immediate effect.

About Anglesey Mining plc

Anglesey is carrying out exploration and development work at its 100% owned Parys Mountain zinc copper-lead deposit in North Wales, UK where a JORC Code compliant resource of 2.1mt at 6.9% combined base metals in the indicated category and 4.1mt at 5.0% combined in the inferred category was published in November 2012.

Anglesey holds a direct 6% interest as well as management and a right of first refusal over a further 51% of Grangesberg Iron AB which is developing the Grangesberg iron ore project in central Sweden. In September 2014 Grangesberg published an independent NI 43-101 compliant resource estimate of 115 million tonnes of iron ore at 40.2% Fe. This resource is based around and below significant underground workings of prior operations that closed in 1990.

Anglesey holds 15.3% of Labrador Iron Mines Holdings Limited which over the three years 2011 to 2013 produced about 3.5 million tonnes of iron ore from its operations in Canada, all of which was sold to China.

For further information, please contact:

Bill Hooley, Chief Executive +44 (0)1492 541981;

Danesh Varma, Finance Director +44 (0)207 653 9881;

Jon Belliss, Beaufort Securities Limited +44 (0)20 7382 8300

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Voting at AGM 2015

In respect of the voting at the company’s AGM held on 28 September 2015 the directors are pleased to report that all resolutions were passed on a show of hands.

The valid proxies recorded in respect of voting at the meeting were as follows:

Resolution In Favour Against Withheld
1 To receive the report and accounts 58,638,781 750 0
2 To approve the directors’ remuneration policy report 58,334,781 304,250 500
3 To approve the directors’ remuneration report 58,334,781 304,250 500
4 To reappoint John F. Kearney as a director 58,334,781 300,750 500
5 To reappoint Bill Hooley as a director 58,337,781 301,250 500
6 To reappoint David Lean as a director 58,323,281 315,750 500
7 To reappoint Howard Miller as a director 58,322,781 316,250 500
8 To reappoint Roger Turner as a director 58,323,281 315,750 500
9 To reappoint Danesh Varma as a director 58,337,781 301,250 500
10 To reappoint Mazars LLP as auditors 58,336,731 300,750 2,050
11 To authorise the directors to determine the remuneration of the auditor 58,631,291 8,240 0
12 To authorise the directors to issue new share capital 58,338,281 300,750 500
13 To dis-apply pre-emption rights in respect of certain issues of shares 58,331,731 302,800 5,000

Notes

1. Votes were received in respect of 58,639,531 shares representing 36.5% of the issued share capital.

2. Any proxy appointments which gave discretion to the chairman have been included in the “For” total.

3. The full text of the resolutions is shown in the notice of the AGM which is available in the annual report and on the website.

Total voting rights

The issued ordinary share capital of the company is 160,608,051 shares with voting rights; there are no shares in treasury.

The above figure may be used by shareholders as the denominator for the calculations which will determine whether they are required to notify their interest in the company, or any change to that interest, under the FSA’s Disclosure and Transparency Rules.

For further information, please contact:

Bill Hooley, Chief Executive +44 (0)1492 541981;

Danesh Varma, Finance Director +44 (0)207 6539881;

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Annual financial report 2015

Chairman’s statement from the Strategic Report

The expected resurgence in the resources sector that we discussed this time last year has generally not yet materialised and indeed there have been some areas in which confidence has been badly eroded. These matters have made it very difficult for all junior companies operating in the sector, including our own. The general economic malaise in Europe has now spread somewhat to the US and importantly to China. Whilst there are some areas in which blue sky is appearing the lack of confidence of the investment sector in resources has made raising funding quite difficult.

In order to reduce corporate costs all the directors have demonstrated their commitment to the group by waiving salaries and fees since 1st July 2014 which saved more than £80,000 in the financial year. This waiver is expected to continue until the financial position of the group improves.

Grangesberg Iron

Our major effort during the year has been with the Grangesberg project where we began managing operations in May 2014. A successful geotechnical investigation programme followed the production of a compliant ore resource estimate. However the ever more depressed iron ore market forced us to the conclusion that we should not exercise the option over a 51% interest which has now been replaced with a right of first refusal over that interest.

As part of the ongoing arrangements we continue to manage the project albeit subject to certain restrictions. The Grangesberg board will need to keep the future prospects for the iron ore market firmly in view as it looks to future project funding and possible alternative investment strategies.

Labrador Iron

In Canada the operations of Labrador Iron Mines, in which the company continues to hold a 15% interest, remained suspended during 2014 as iron ore prices declined below a level at which an operating surplus could be made. LIM spent the majority of the year seeking new financing particularly for the development of its flagship Houston deposit.

However with iron ore prices continuing to fall these financing efforts proved to be impossible and after the end of the financial year LIM initiated proceedings for a financial restructuring under the Canadian Companies Creditors Arrangement Act (“CCAA”). LIM has raised some funds through asset sales and has sufficient cash available to continue to operate a limited function until at least the end of the current financial year whilst it seeks new funding and reviews its ongoing business strategy.

LIM owns extensive iron ore resources, processing plants and equipment and rail infrastructure and facilities in its Schefferville Projects but is currently in a challenging financial position. LIM believes that an orderly CCAA process that enables the restructuring of the company’s debts, the restructuring of certain of its operating contracts and securing additional development financing to proceed with the development of the Houston Project is in the best interest of all of stakeholders.

Parys Mountain

Operations at Parys Mountain were maintained at a low level as a consequence of limited available funding and no additional drilling took place while management focused on studying the optimisation of mine development. We are fortunate to hold freehold title to the majority of the known resource and thus are not subject to onerous annual exploration costs as would be common in many other jurisdictions. Site maintenance costs are also kept to a minimum.

The increase in the zinc price that was forecast this time last year and which will be a key driver in the immediate future economics of Parys Mountain has not yet materialised. However the fundamentals for zinc remain strong with major mines such as Lisheen and Century planned to close during 2015. With little new production coming on stream stocks of zinc metal have continued to fall and it now seems only a matter of time before prices do eventually start to move upwards. We will need to raise funds to update studies on Parys Mountain particularly with regard to what may well now be lower than previous capital costs, so that we will be properly placed when the zinc market begins its long delayed move forward.

Outlook

The future for commodity prices continues at best to be uncertain. The group has exposure to iron ore both at LIM and at Grangesberg and whilst neither makes a cash draw on Anglesey any upward movement in the iron ore price would significantly benefit both projects and hence the general tenor of the group.

Robust steel production and iron ore demand from China have underpinned the iron ore price over the past ten years. Despite an economic slowdown, it would seem that Chinese steel production continues to increase and China will need to import more iron ore to replace the shutdown of domestic production, which should help iron ore price stability.

The iron ore industry is re-consolidating as small, high cost miners are closing. The larger lower cost miners such as Rio Tinto, BHP Billiton and Vale should continue to take market share as a result.  The top four producers are re-asserting their status as an oligopoly in the market and currently control 54% of the supply. This dominant position is forecast to increase to 75% within the next two years and will likely result in more disciplined supply growth and less volatility in iron ore prices.

The group’s Parys Mountain property will benefit from any improvement in the price of zinc. Zinc will form a major part of the projected revenue stream from Parys Mountain, especially in the early years of production, and would be followed by increasing proportions of lead and copper as mine development advances.

Over the past few years there has been a strong argument supporting higher prices for zinc and lead over the long term, as a forecast imbalance between demand and supply is widely expected to have a significant impact. Wood Mackenzie, a global leader in commercial intelligence for the metals and mining industries, has stated that as a result of the industrialisation and urbanisation of China, they expect growth in demand for zinc to average 6% per year until 2020. For the rest of the world, they forecast demand to rise at a rate of 2.2% annually so that on a global basis, zinc demand is expected to increase 4% annually until 2020. This view is also held by most market commentators including CRU which in its 2014 Zinc Market Outlook was forecasting that “enormous deficits are likely in 2017 and 2018” and that “some very high prices are in prospect”.

The demand for zinc and lead is expected to remain robust because of wide spread industrial usage. On the supply side, there has been a lack of investment in recent years in the exploration for, and development of, new zinc and lead projects, which has led to limited new sources of supply. In addition, a number of larger producers, notably the Brunswick mine in Canada, the Lisheen mine in Ireland and the Century mine in Australia, either have closed or are expected to shut down by the end of 2015, all of  which should lead to reduced current mine supply of zinc and lead concentrates.

While the US economy continues to show signs of improvement, the global economic outlook remains weak and uncertain. China’s growth continues to decelerate and Europe risks slipping into recession. Near-term growth prospects in both China and Europe now look dependent on further government intervention. There is also concern that as prices rise, some Chinese zinc production will come back on line. While it is possible that Chinese production could increase to fill the gap, much higher prices are needed to sustain these operations. However, on the supply side, the pipeline of large-scale, development-ready, zinc-lead projects remains very thin and the long term outlook for the prices of both zinc and lead remains very favourable.

John F. Kearney

Chairman

31 July 2015

For the full text pdf of the annual financial results click here.

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Half yearly report for the six months to 30 September 2014

Chairman’s Statement and Management Report

The half year to end of September 2014 has been a difficult period for the resource industry and for the company. Labrador Iron Mines (“LIM”) did not mine any ore in the half year and reported a very large non-cash impairment in the carrying value of its assets.  LIM has indicated that it is seeking to complete a financial restructuring under a plan of arrangement. The share price of LIM continued to fall during the period and this is reflected in these accounts as a non-cash diminution in value on the balance sheet and as a loss on the income statement.

On a positive note the company entered into an arrangement in late May whereby it took an effective working control in the Swedish company Grangesberg Iron AB (“GIAB”) which is working towards the development of an underground iron ore mine in central Sweden based around previous mining operations. Since taking over management an Indicated and Inferred resource estimate compliant with the Canadian requirements of NI 43-101has been produced by GIAB. Further development work continues.

At Parys Mountain in North Wales physical activities on site have been fairly limited but progress is being made in planning for a potential mine development programme supported by the expected strength of the zinc concentrate market.

The company reported an unaudited loss of £879,000 for the half year of which £693,000 related to the reduction in value of LIM. Direct operating expenses at £152,000 were almost 25% lower than for the same period in the previous year.

There is undoubtedly stress in the resources industry at present with prices for precious metals and bulk minerals in particular suffering badly. This is having a negative impact on investor sentiment towards the sector in general which is reflected in the capital and equity markets with almost every share price, Anglesey being no exception, being badly eroded. However the markets for base metals,  zinc in particular, have stood up fairly well during this difficult time and we have reasonable expectations in the short to medium term that this strength will continue. We look for a longer term recovery in the price of iron ore.

Labrador Iron

Since January 2014 the spot price of iron ore has fallen over 45% to around US$70 per tonne today, compared to an average price of US$135 per tonne in 2013 (62% Fe fines on a CFR China basis).

LIM did not recommence mining operations for the 2014 operating season due to the prevailing low price of iron ore and an assessment of the current economics of its iron ore projects. There was a strategic shift in corporate focus towards establishing a lower cost operating framework while concurrently re-negotiating the commercial terms of major contracts and seeking additional capital investment and working capital. LIM continues to focus on the development of the Houston Mine.

At period end LIM had a very significant working capital deficit and had not met certain financial obligations. It urgently needs to secure additional financing arrangements in order to fund or restructure its current working capital deficit and to fund its continuing operations, planned development programmes and corporate administration costs so as to continue as a going concern. A financial restructuring and refinancing is required.

LIM is currently seeking to negotiate a potential support arrangement with RBRG Gerald Metals, an existing creditor and off-take partner, that, if successfully entered into, is expected to provide working capital financing to fund LIM’s ongoing activities, to provide potential future project development financing and to enable LIM to continue as a going concern.

If LIM is unable to complete a potential financial restructuring and to obtain adequate additional financing on a timely basis, which may require commercial relief on certain major contracts, then it will be required to curtail all its operations and development activities and may be required to liquidate its assets under a formal process. Under such circumstances Anglesey’s investment in LIM would likely be further impaired.

Grangesberg Iron

In late May 2014 Anglesey entered into agreements giving it the right to acquire a controlling interest in the Grangesberg iron ore mine situated in the mineral-rich Bergslagen district of central Sweden about 200 kilometres north-west of Stockholm. Until its closure in 1989 due to prevailing market conditions Grangesberg had mined in excess of 150 million tonnes of iron ore.

In a series of agreements Anglesey purchased for US$145,000 a direct 6% interest in GIAB, a private Swedish company founded in 2007 which, using our investment and assistance, had recently completed a financial and capital restructuring. GIAB holds a 25 year exploitation permit covering the previously mined Grangesberg underground mining operations granted by the Swedish Mining Inspectorate in May 2013.

At the same time we negotiated a 12 month option to acquire 51% of the enlarged share capital of GIAB for the issue of new ordinary shares of Anglesey to the value of US$1.75 million priced at a minimum of 3.375 pence per share. We also entered into shareholder and cooperation agreements such that during the term of the option Anglesey holds management control and operatorship of GIAB and has appointed three out of five directors to the board of GIAB.

In late September an NI 43-101Technical Report was prepared by Roscoe Postle Associates Inc (“RPA”) showing a compliant resource estimate for the Grangesberg Mine of 115.2 million tonnes at 40.2% Fe in the indicated category and 33.1 million tonnes at 45.2% Fe in the inferred category. RPA concluded that the Grängesberg iron ore deposit hosts a significant iron resource that has excellent potential for expansion at depth.

A programme is currently being progressed to look closely at geo-mechanical and hydro-geological aspects of the site which will be critical components of the permitting regime required for the dewatering and reopening of the mine.

In the coming months, under Anglesey’s direction GIAB will complete a review and update of its previous pre-feasibility study on the project incorporating inputs from the compliant resource estimate and from the geo-technical investigations and this will be a key determinant in our decision to exercise the option on the GIAB majority share block.

Parys Mountain

We are continuing to review development options at the 100% owned Parys Mountain zinc-copper-lead deposit in North Wales, UK where a JORC Code-compliant resource of 2.1mt at 6.9% combined base metals in the indicated category and 4.1mt at 5.0% combined in the inferred category was published in November 2012. A detailed review of the resource base for the entire mine property has been prepared by Micon International and these results are being evaluated.

The company is of the view that the market for zinc and zinc concentrates will further strengthen particularly in Europe in the next two years and on that basis believes that it is now an appropriate time to seriously consider the commencement of production at Parys Mountain. We are actively looking at suitable second hand processing facilities that can be readily and simply incorporated into an on-site plant at Parys Mountain.

The directors acknowledge that financing Parys Mountain at this time of depressed investor interest in the resources sector will not be simple. We believe that the strength of the resource base coupled with the project’s UK location with its inherent political and financial stability and with the widely held expectation of a resurgence in interest in zinc could enable a financing package to be put together.

Financial Results

There was a net loss for the period of £0.88 million (2013 loss £3.21 million); approximately £0.69 million of this 2014 loss was in respect of the diminution in the value of the investment in LIM resulting from a fall in the share price of that company. Administration expenses at £0.15 million were significantly lower than the comparative period in 2013. The group had no revenue for the period. At the period end cash resources had been reduced due to activities related to the GIAB acquisition and stood at £31,000. Additional funds will need to be raised in the immediate future. However GIAB is well funded to carry out its planned programmes.

Outlook

The prospects for the iron ore price in the short term are not encouraging with a continuing surplus of supply over demand resulting from the recent completion of large expansion projects by the major producers in Australia and Brazil. This is likely to keep prices pegged at low levels at least until the spring of 2015. The future of LIM and the maintenance of the value of our investment in that company will be dependent upon some resurgence in the iron ore price.

In the longer term we believe that the iron ore price will recover once the current expansion in production is absorbed by continuing growth in China, India and other developing countries and by production cutbacks from current producers, which should bring the supply-demand situation back to a balance position by around 2017.  It can be expected that the iron ore price should have recovered significantly by that time, and would then benefit GIAB which could be in a position to recommence initial production by around 2018.

We feel that the outlook for base metals and particularly for zinc, the major source of initial revenue from Parys Mountain, will improve. There are a number of major zinc mines scheduled for closure and this should lead to a shortage of zinc concentrate for smelters outside China which will move the zinc price upward. In this scenario smelters and metal traders will be more aggressive in the search for new concentrate supply and will be prepared to assist with finance for new production such as from Parys Mountain.

John F Kearney

Chairman

25 November 2014

For a downloadable pdf version of this report please go to http://angleseymining.co.uk/accounts/index.html

Unaudited condensed consolidated income statement

Notes Unaudited six months ended 30 September 2014 Unaudited six months ended 30 September 2013
All operations are continuing £ £
Revenue - -
Expenses (152,230) (196,480)
Impairment of investment 10 (692,702) (2,440,187)
Exchange difference on
investment impairment
10 20,850 (527,771)
Investment income 1,044 14,267
Finance costs (56,200) (57,149)
Foreign exchange gain/(loss) 330 (1,566)
Loss before tax (878,908) (3,208,886)
Tax 8 - -
Loss for the period (878,908) (3,208,886)
Loss per share
Basic – pence per share (0.5)p (2.0)p
Diluted – pence per share (0.5)p (2.0)p

Unaudited condensed consolidated statement of comprehensive income

Loss for the period (878,908) (3,208,886)
Other comprehensive income:
None
Total comprehensive loss
for the year
(878,908) (3,208,886)

All attributable to equity holders of the company

Unaudited condensed consolidated statement of financial position

Notes Unaudited 30 September 2014 Audited 31 March 2014
£ £
Assets
Non-current assets
Mineral property exploration and evaluation 9 14,854,707 14,802,048
Property, plant and equipment 204,687 204,687
Investments 10 803,092 1,257,985
Deposit 122,806 122,596
15,985,292 16,387,316
Current assets
Other receivables 20,530 17,017
Cash and cash equivalents 31,556 289,097
52,086 306,114
Total assets 16,037,378 16,693,430
Liabilities
Current liabilities
Trade and other payables (266,303) (99,647)
(266,303) (99,647)
Net current (liabilities)/assets (214,217) 206,467
Non-current liabilities
Loan (2,475,073) (2,418,873)
Long term provision (42,000) (42,000)
(2,517,073) (2,460,873)
Total liabilities (2,783,376) (2,560,520)
Net assets 13,254,002 14,132,910
Equity
Share capital 11 7,116,914 7,116,914
Share premium 9,848,949 9,848,949
Retained losses (3,711,861) (2,832,953)
Total shareholders’ equity 13,254,002 14,132,910

All attributable to equity holders of the company

Unaudited condensed consolidated statement of cash flows

Notes Unaudited six months ended 30 September 2014 Unaudited six months ended 30 September 2013
£ £
Operating activities
Loss for the period (878,908) (3,208,886)
Adjustments for:
Investment income (1,044) (14,267)
Finance costs 56,200 57,149
Impairment of investment 10 692,702 2,440,187
Exchange difference on
investment impairment
10 (20,850) 527,771
Foreign exchange movement (330) 1,566
(152,230) (196,480)
Movements in working capital
(Increase)/decrease in receivables (3,513) 2,168
Increase/(decrease) in payables 13,877 (10,123)
Net cash used in operating activities (141,866) (204,435)
Investing activities
Investment income 834 14,017
Mineral property exploration and evaluation (41,899) (46,568)
Investment in Grangesberg (74,940) -
Net cash used in investing activities (116,005) (32,551)
Loan received
Net decrease in cash
and cash equivalents
(257,871) (236,986)
Cash and cash equivalents at start of year 289,097 670,345
Foreign exchange movement 330 (1,566)
Cash and cash equivalents at end of year 31,556 431,793

All attributable to equity holders of the company

Unaudited condensed consolidated statement of changes in group equity

Share
capital
£
Share
premium
£
Retained earnings
£
Total
£
Equity at 1 April 2014 – audited 7,116,914 9,848,949 (2,832,953) 14,132,910
Total comprehensive
income for the period:
Loss for the period - - (878,908) (878,908)
Total comprehensive
income for the period:
- - (878,908) (878,908)
Equity at 30 September 2014 – unaudited 7,116,914 9,848,949 (3,711,861) 13,254,002
Comparative period
Equity at 1 April 2013 – audited 7,116,914 9,848,949 4,340,750 21,306,613
Total comprehensive
income for the period:
Loss for the period - - (3,208,886) (3,208,886)
Total comprehensive
income for the period:
- - (3,208,886) (3,208,886)
Equity at 30 September 2013 – unaudited 7,116,914 9,848,949 1,131,864 18,097,727

All attributable to equity holders of the company

Notes to the accounts

1.  Basis of preparation

This half-yearly financial report comprises the unaudited condensed consolidated financial statements of the group for the six months ended 30 September 2014. It has been prepared in accordance with the Disclosure and Transparency Rules of the UK Financial Services Authority, the requirements of IAS 34 – Interim financial reporting (as adopted by the European Union) and using the going concern basis and the directors are not aware of any events or circumstances which would make this inappropriate. It was approved by the board of directors on 25 November 2014. It does not constitute financial statements within the meaning of section 434 of the Companies Act 2006 and does not include all of the information and disclosures required for annual financial statements. It should be read in conjunction with the annual report and financial statements for the year ended 31 March 2014 which is available on request from the company or may be viewed at www.angleseymining.co.uk.

The financial information contained in this report in respect of the year ended 31 March 2014 has been extracted from the report and financial statements for that year which have been filed with the Registrar of Companies. The report of the auditors on those accounts did not contain a statement under section 498(2) or (3) of the Companies Act 2006 and was not qualified. The half-yearly results for the current and comparative periods are unaudited.

2.  Significant accounting policies

The accounting policies applied in these unaudited condensed consolidated financial statements are consistent with those set out in the annual report and financial statements for the year ended 31 March 2014. The following amendments to interpretations were effective in the current period and have been adopted:

IFRS 10 Consolidated Financial Statements: Original issue; Issued October 2012; Effective – Annual periods beginning on or after 1 January 2014

IFRS 11  Joint Arrangements: Original issue; Issued – May 2011; Effective – Annual periods beginning on or after 1 January 2014

IFRS 12  Disclosure of Interests in Other Entities: Original issue; Issued – May 2011; Effective – Annual periods beginning on or after 1 January 2014

IAS 27  Separate Financial Statements (as amended in 2011): Original issue; Issued – May 2011; Effective – Annual periods beginning on or after 1 January 2014

IAS 28 Investments in Associated and Joint Ventures: Original issue; Issued – May 2011; Effective – Annual periods beginning on or after 1 January 2014

The adoption of the following amendments and new interpretations has not resulted in a change to the accounting policies nor had a material effect on the financial performance and position of the group. In preparing these financial statements any accounting assumptions and estimates made by management were consistent with those applied to the aforesaid annual report and financial statements.

IAS 32  Financial Instruments: Presentation: Amendments relating to the offsetting of assets and liabilities; Issued – December 2011; Effective – Annual periods beginning on or after 1 January 2014

IAS 36  Impairment of Assets: Amendments arising from Recoverable Amounts Disclosure for Non-financial Assets; Issued – 2004, Amended – May 2013; Effective Annual periods beginning on or after 1 January 2014

IAS 39  Financial Instruments: Amendments for novation of derivatives; Amended June 2013; Effective for Annual periods beginning on or after 1 January 2014

IAS 39 Financial Instruments: Recognition and Measurement; Original issue; Issued – June 2013; Effective for Annual periods beginning on or after 1 January 2014

IFRIC 21 Levies; Effective – Annual periods beginning on or after 1 January 2014

3.  Risks and uncertainties

The principal risks and uncertainties set out in the group’s annual report and financial statements for the year ended 31 March 2014 remain the same for this half-yearly financial report and can be summarised as: development risks in respect of mineral properties, especially in respect of permitting and metal prices; liquidity risks during development; and foreign exchange risks. More information is to be found in the 2014 annual report – see note 1 above.

4.  Statement of directors’ responsibilities

The directors confirm to the best of their knowledge that: (a) the unaudited condensed consolidated financial statements have been prepared in accordance with the requirements of IAS 34 Interim financial reporting (as adopted by the European Union); and (b) the interim management report includes a fair review of the information required by the FSA’s Disclosure and Transparency Rules (4.2.7 R and 4.2.8 R). This report and financial statements were approved by the board on 25 November 2014 and authorised for issue on behalf of the board by Bill Hooley, Chief Executive Officer and Danesh Varma, Finance Director.

5.  Activities

The group is engaged in mineral property development and currently has no turnover. There are no minority interests or exceptional items.

6.  Earnings per share

The loss per share is computed by dividing the loss attributable to ordinary shareholders of £0.9 million (loss to 30 September 2013 £3.2m), by 160,608,051 (2013 – unchanged) – the weighted average number of ordinary shares in issue during the period. Where there are losses the effect of outstanding share options is not dilutive.

7.  Business and geographical segments

There are no revenues. The cost of all activities charged in the income statement relates to exploration and development of mining properties. The group’s income statement and assets and liabilities are analysed as follows by geographical segments, which is the basis on which information is reported to the board.

Income statement analysis

Unaudited six months ended 30 September 2014 Unaudited six months
ended 30 September 2013
UK Canada – investment Total UK Canada – investment Total
£ £ £ £ £ £
Expenses (152,230) - (152,230) (196,480) - (196,480)
Loss on fair value of investment - (692,702) (692,702) - (2,440,187) (2,440,187)
Exchange difference on loss above - 20,850 20,850 - (527,771) (527,771)
Investment income 1,044 - 1,044 14,267 - 14,267
Finance costs (56,200) - (56,200) (57,149) - (57,149)
Exchange rate movements 330 - 330 (1,566) - (1,566)
Loss for the period (207,056) (671,852) (878,908) (240,928) (2,967,958) (3,208,886)

There are no income statement items to report in respect of Grangesberg.

Assets and liabilities

` Unaudited 30 September 2014
UK Sweden investment Canada investment Total
£ £ £ £
Non current assets 15,182,200 216,959 586,133 15,985,292
Current assets 52,086 - - 52,086
Liabilities (2,783,376) - - (2,783,376)
Net assets 12,450,910 216,959 586,133 13,254,002
Audited 31 March 2014
UK Sweden investment Canada investment Total
£ £ £ £
Non current assets 15,129,331 - 1,257,985 16,387,316
Current assets 306,114 - - 306,114
Liabilities (2,560,520) - - (2,560,520)
Net assets 12,874,925 - 1,257,985 14,132,910

8.  Deferred tax

There is an unrecognised deferred tax asset of £1.2 million (31 March 2014 – £1.2m) which, in view of the group’s results, is not considered to be recoverable in the short term. There are also capital allowances, including mineral extraction allowances, exceeding £11 million (unchanged from 31 March 2014) unclaimed and available. No deferred tax asset is recognised in the condensed financial statements.

9.  Mineral property exploration and evaluation costs

Mineral property exploration and evaluation costs incurred by the group are carried in the unaudited condensed consolidated financial statements at cost, less an impairment provision if appropriate. The recovery of these costs is dependent upon the successful development and operation of the Parys Mountain project which is itself conditional on finance being available to fund such development. During the period expenditure of £53,159 was incurred (six months to 30 September 2013 – £34,377). There have been no indicators of impairment during the period.

10.  Investments

Labrador (quoted) Grangesberg (unquoted) Total
£ £ £
At 31 March 2013 7,964,532 7,964,532
Impairment resulting from
adjustment to fair value
(5,451,267) (5,451,267)
Exchange difference arising
on adjustment above
(1,255,280) (1,255,280)
At 31 March 2014 1,257,985 1,257,985
Addition during period - 216,959 216,959
Impairment resulting from
adjustment to fair value
(692,702) - (692,702)
Exchange difference arising
on adjustment above
20,850 - 20,850
At 30 September 2014 586,133 216,959 803,092

Labrador: Labrador Iron Mines Holdings Limited (LIM) (TSX quoted) is the 100% owner and operator of a series of iron ore properties in Labrador and Quebec, many of which were formerly held and initially explored by the group. The group treats its 15% holding in LIM as an investment. The published fair value of this investment based on the quoted market price at 30 September 2014 is £0.6 million (31 March 2014 – £1.3 million). The group holds this investment as a strategic non-controlling interest, not held for trading and classified as ‘available for sale’.

Grangesberg: In May 2014 the group entered into a series of agreements in connection with the potential acquisition of iron ore properties at Grangesberg in Sweden. Certain expenditures which have resulted in the group having a 6% holding in Grangesberg Iron AB (an unquoted Swedish company) and an option to purchase shares amounting to 51% of that company have been treated in these statements as an investment held at fair value through the income statement.

11.  Share capital

Ordinary shares of 1p Deferred shares of 4p Total
Issued and
fully paid
Nominal
value £
Number Nominal
value £
Number Nominal
value £
-
At 31 March 2013, 2014 and 30 September 2014 1,606,081 160,608,051 5,510,833 137,770,835 7,116,914

12.  Financial instruments

Group Available for sale assets Assets at fair value through income statement Loans & receivables
Unaudited 30 September 2014 31 March 2014 Unaudited 30 September 2014 31 March 2014 Unaudited 30 September 2014 31 March 2014
£ £ £ £
Financial assets
Investments 586,133 1,257,985 216,959 - - -
Deposit - - - - 122,806 122,596
Other debtors - - - - 20,530 17,017
Cash and cash
equivalents
- - - - 31,556 289,097
- -
586,133 1,257,985 216,959 - 174,892 428,710
Unaudited 30 September 2014 31 March 2014
£ £
Financial liabilities
Trade creditors (40,231) (34,863)
Other creditors (142,019) -
Loans due to Juno (2,475,073) (2,418,873)
(2,657,323) (2,453,736)

13.  Events after the reporting period

None.

14.  Related party transactions

None.

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Block listing six monthly return

Name of applicant:          Anglesey Mining plc

Name of scheme:             2004 Unapproved Share Option Scheme

Period of return:           from 1 April 2014 to 30 September 2014

Balance of unallotted securities
under scheme from previous return:                    7,550,000

Plus:  The amount by which the block scheme has
been increased since the date of the last return:           nil

Less:  Number of securities issued/allotted
under scheme during period:                                 nil

Balance under scheme not yet issued/allotted
at end of period:                                     7,550,000

Total number of shares in issue

at end of period:                                   160,608,051

Name of contact:  Danesh Varma

Telephone number of contact:  +44 (0)207 6539881

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Anglesey Mining plc – Results of AGM

In respect of the voting at the company’s AGM held on 30 September 2014 the directors are pleased to report that all resolutions were passed on a show of hands.

The valid proxies recorded in respect of voting at the meeting were as follows:

  Resolution In Favour Against Withheld
1 To receive the report and accounts 58,711,848 750 0
2 To approve the directors’ remuneration policy report 58,407,448 304,250 900
3 To approve the directors’ remuneration report 58,407,948 304,250 400
4 To reappoint John F. Kearney as a director 58,411,848 300,750 0
5 To reappoint Bill Hooley as a director 58,408,848 301,250 2,500
6 To reappoint David Lean as a director 58,411,348 301,250 0
7 To reappoint Howard Miller as a director 58,411,348 301,250 0
8 To reappoint Roger Turner as a director 58,411,348 301,250 0
9 To reappoint Danesh Varma as a director 58,411,848 300,750 0
10 To reappoint Mazars LLP as auditors 58,409,798 300,750 2,050
11 To authorise the directors to determine the remuneration of the auditors 58,704,358 8,240 0
12 To approve the adoption of the Anglesey Mining plc 2014 Unapproved Share Option Scheme 58,409,348 2,750 300,500
13 To authorise the directors to issue new share capital 58,411,348 301,250 0
14 To dis-apply pre-emption rights in respect of certain issues of shares 58,404,798 304,800 3,000
         

Notes

1. Votes were received in respect of 58,712,598 shares representing 36.5% of the issued share capital.

2. Any proxy appointments which gave discretion to the chairman have been included in the “For” total.

3. The full text of the resolutions is shown in the notice of the AGM which is available in the annual report and on the website.

Total voting rights

The issued ordinary share capital of the company is 160,608,051 shares with voting rights; there are no shares in treasury.

The above figure may be used by shareholders as the denominator for the calculations which will determine whether they are required to notify their interest in the company, or any change to that interest, under the FSA’s Disclosure and Transparency Rules.

For further information, please contact:

Bill Hooley, Chief Executive +44 (0)1492 541981;

Danesh Varma, Finance Director +44 (0)207 6539881;

Samantha Harrison:  RFC Ambrian +44 (0)20 3440 6800;

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Grangesberg NI 43-101 Resource Estimate

Anglesey Mining plc

29 September 2014        LSE:AYM

Grangesberg NI 43-101 Resource Estimate

Anglesey Mining plc (“Anglesey”) is pleased to report that Grangesberg Iron AB (“GIAB”) has received an NI 43-101 Technical Report from Roscoe Postle Associates Inc (“RPA”) showing a compliant resource estimate for the Grangesberg Mine.

In May 2014 Anglesey announced that it had entered into agreements giving it the right to acquire a controlling interest in the Grangesberg Iron project in central Sweden including a direct 6% interest in GIAB and an option exercisable until 30th June 2015 to acquire an additional 51% in GIAB. Anglesey also entered into shareholder and cooperation agreements such that during the term of the option Anglesey holds management control and operatorship of GIAB and has appointed three out of five directors to the board of GIAB including the Chairman.   

The Technical Report which was prepared by RPA and was dated 26th September contains the following summary table:

Mineral Resource Estimate Summary – August 22, 2014

Grängesberg Iron AB – Grängesberg Iron Mine

Category Tonnes %Fe %P Contained Fe(tonnes)
Indicated 115,200,000 40.2 0.78 46,300,000
Inferred  33,100,000 45.2 0.91 15,000,000

Notes:

CIM definitions were followed for Mineral Resources.

The values for tonnages, grades and contained iron have been rounded.

Mineral Resources are estimated at a cut-off grade of approximately 20% Fe.

A minimum mining width of approximately 10 m was used.

RPA concluded that the Grängesberg iron ore deposit hosts a significant iron resource that has excellent potential for expansion at depth.  Geophysical interpretations from the 1960s suggest that the ore body continues to at least 1,700 m below surface.  Diamond drill holes confirm the mineralization continues to at least 1,100 m to 1,200 m below surface.  In RPA’s opinion, more geotechnical, metallurgical, and other engineering studies are warranted to advance this Project.

“We are very pleased with the compliant resource estimate contained within the RPA report”, said Bill Hooley, Chief Executive of Anglesey, “This confirms our belief in the inherent fundamentals of Grangesberg and we look forward to moving the project through the next development stages with a target of restarting production around 2018 when we believe that the global iron ore supply-demand will be in a more balanced position than currently.  We remain encouraged by the support being shown for the project at all levels in Sweden.”

A programme is currently being developed to look closely at geo-mechanical and hydro-geological aspects of the site which will be critical components of the permitting regime required for the dewatering and reopening of the mine.  The principal consultant who will oversee this work has commenced activities; drilling quotations have been obtained; and permit applications for the necessary work have been submitted to the relevant authorities.  These activities will include drilling boreholes into the general mine area and the capture and interpretation of key data on the physical aspects of the ground and hydrological conditions.  It is expected that all the drilling and analysis will be completed during the autumn and will allow the first stage of permit applications for mine development to be prepared and submitted.

The full RPA report can be found at https://app.box.com/GIABreportSep14 and will also be published shortly on the Anglesey website at www.angleseymining.co.uk

The Annual General Meeting of Anglesey will be held at 11am on Tuesday 30th September at the offices of DLA Piper, 1 London Wall EC2Y 5EA, London.  Shareholders are invited to attend.

About Anglesey Mining plc

Anglesey is also carrying out exploration and development work at its 100% owned Parys Mountain zinc-copper-lead deposit in North Wales, UK where a JORC Code-compliant resource of 2.1mt at 6.9% combined base metals in the indicated category and 4.1mt at 5.0% combined in the inferred category was published in November 2012.  The Company has received a detailed review of the resource base for the entire site which has recently been completed by Micon International and is evaluating these results.  The company continues to review the future demand predictions for base metal concentrates particularly zinc ahead of any decision to move to development and production.

In May 2014 Anglesey acquired the rights to earn a 57% interest in the Grangesberg iron ore mine. The Grangesberg iron ore mine is situated in the mineral-rich Bergslagen district of central Sweden about 200 kilometres north-west of Stockholm. Until its closure in 1989 due to prevailing market conditions, the Grangesberg mine was the third largest iron ore mine in Sweden, with in excess of 150 million tonnes of iron ore having been mined down to around 500 metres deep.

Anglesey holds 15.3% of the shares of Labrador Iron Mines Holdings Limited which over the three years 2011 to 2013 produced about 3.5 million tonnes of iron ore from its operations in Canada, all of which was sold in the China spot market.

For further information, please contact:

Bill Hooley, Chief Executive +44 (0)1492 541981;

Danesh Varma, Finance Director +44 (0)207 6539881;

Samantha Harrison:  RFC Ambrian +44 (0)20 3440 6800;

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Annual financial report 2014

Anglesey Mining plc

A UK mining company listed on the London Stock Exchange

  • In May 2014 Anglesey entered into agreements giving it the right to acquire a controlling interest in the Grangesberg Iron project in Sweden.
  • Anglesey is carrying out exploration, evaluation and pre-feasibility work at its 100% owned Parys Mountain underground zinc-copper-lead-silver-gold deposit in North Wales, UK.
  • Anglesey holds 15% of Toronto-listed Labrador Iron Mines Holdings Limited (TSX:LIM) which has direct shipping iron ore deposits in western Labrador and north-eastern Quebec.

Chairman’s statement

In what has been a quiet year in the resources sector the company maintained steady progress on a number of fronts whilst awaiting a general turnaround in the underlying markets. Parys Mountain has seen limited activity during the year while operations at Labrador Iron have been disappointing and continued to suffer from low product prices.

After the year end we began participation in the Grangesberg Iron operation in Sweden, which has been a major producer in the past and over the coming year we plan to fully evaluate this opportunity and if justified increase our interest to a majority position. We believe that Grangesberg should become a very exciting project for the company in the future.

Whilst metal prices remained depressed during the financial year there are now very positive signs of a marked upturn. The price of zinc is currently over US$1.00 per pound, a figure last seen in 2011 and copper after some weakness is now back trading at the US$3.25 per pound level.  A continuation of this improvement will allow us to take a far more positive view on the development of Parys Mountain than we have been able to do for some years. Iron ore after a very weak second quarter in 2014 is now slowly recovering and expectations are for continuing improvement. This bodes well both for Labrador and for Grangesberg.

We will continue to monitor these improvements in metal prices and we look forward to an ensuing improvement in the financing and equities markets that would then enable us to bring our two projects forward and to provide much needed support for Labrador Iron.

Parys Mountain

Activity on site has been quiet during the year but Micon International Limited has been engaged to review the mineral potential of the entire Parys Mountain property in North Wales. This review will cover both those resources on which Micon has previously provided JORC compliant indicated and inferred resource estimates as well as studying a number of other zones within the property that were not included in earlier estimates.

The price for zinc metal is now improving and is getting closer to a level that will support the development of a production operation at Parys Mountain, and at the same time demand for concentrates in European markets appears to be growing.

Grangesberg

In May 2014 Anglesey completed the contractual arrangements to secure management control, including the majority of board seats, over the Grangesberg iron ore mine in Sweden. This mine was a significant producer of iron ore until 1989 and current planning indicates a return to production at around 2.0 to 2.5 mtpa later this decade. This could be a very important investment for the company, sourcing iron ore in the European market commencing when the current world-wide expansion of production begins to abate.

A number of technical and commercial activities are in the final planning stages and these will commence imminently. These activities are part of a longer term plan to assess the optimum development and financing strategy for the mine. The company expects to report further progress during the coming months.

Labrador

Production activities in Labrador during the summer 2013 operating season suffered from deteriorating grade and feed product quality.  This caused operational difficulties in the processing plant and resulted in lower grade and quality product being sold than anticipated and this followed through to significantly lower revenues than expected.  Labrador Iron has decided to suspend production activities for 2014 while it seeks to raise additional finance to develop its flagship Houston deposit.  Providing it is successful in this fundraising then it is expected that production will re-commence in the spring of next year.  At that time it should be on a substantially firmer commercial footing and better able to weather the vagaries of geology and the markets.

Outlook

There is certainly more confidence in the air this year than last and while the capital markets for junior miners still remain quite depressed there is some expectation that they will improve in the near term as the benefits of increases in metal prices flows through. Given this expectation we look forward to our projects moving forward positively during the current year.

John F. Kearney

Chairman

30 July 2014

For a full text pdf of the annual report please click here.

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Projects update; LIM releases year end financials

2 July 2014        LSE:AYM

Anglesey Mining plc (“Anglesey”) which is concentrating its activities in the base and bulk minerals sectors is pleased to provide the following updates on its major areas of minerals interest in three different countries.

Parys Mountain

Micon International Limited is now close to completing a detailed review of the mineral potential of the entire Parys Mountain property in North Wales.  This review will cover both those resources on which Micon has previously provided JORC compliant indicated and inferred resource estimates as well as studying a number of other deposits and locations within the property that were not included in those estimates.

The report, which is due within a month, will enable Anglesey to better plan its development strategy for Parys Mountain to ensure that the sizing of future operations is commensurate with the entire mineral potential and will not require expensive additions and compromises once operations begin.

The board continues to review the status of base metals markets and in importantly the zinc market to ensure that the commencement of production at Parys Mountain coincides as closely as possible with the expected resurgence in demand for base metals concentrates particularly in the European environment.  There are now positive signs that the long expected future shortfall in zinc concentrate supply related to major mine planned closures is coming closer to fruition.

Grangesberg

Anglesey completed its contractual arrangements over the Grangesberg iron ore mine in Sweden in late May and since then the board of Grangesberg Iron AB (“GIAB”) on which Anglesey holds three out of five board seats has been actively pursuing the restart of development activities at Grangesberg.  These activities had been largely suspended for a number of months during the period in which GIAB was undergoing corporate reconstruction and refinancing.

Two major activities are now being progressed that together will enable GIAB and Anglesey to progress the development plan for the reopening of the Grangesberg mine.  The first is a review of the resources at the property and it is expected that this will enable a resource estimate to be able to be made under the NI 43-101 standard.  Such a compliant resource will ensure that future financing of project can proceed smoothly.  The consultant to carry out this work has been selected and it is expected that a report on this estimate will be delivered to GIAB in August.

The second activity will look closely at geo-mechanical and hydro-geological aspects of the site which will be critical components of the permitting regime required for the dewatering and reopening of the mine.  The principal consultant who will oversee this work, which will include drilling boreholes into the general mine area and the capture and interpretation of key data on the physical aspects of the ground and hydrological conditions, has been nominated and is preparing specifications for the selection of contractors.  It is expected that all the drilling and analysis will be completed during the autumn and will allow the first stage of permit applications to be prepared and submitted.

A number of other commercial and marketing studies will commence as soon as the Swedish summer holiday season is over.

On June 12th the Swedish government rejected an appeal against the grant of the mining concession to GIAB.  As a result this 25 year mining concession is now in full force and effect.

Labrador

Labrador Iron Mines Holdings Ltd (“LIM”) in which Anglesey holds a 15% interest today released its Financial Statements and Management Discussion and Analysis.  Key points are:

LIM completed its third operating season in December 2013 and achieved sales of approximately 1.7 million wet tonnes of iron ore and recognized net revenue of $85.9 million for fiscal 2014.

LIM’s sales were achieved at the expense of product quality, which impacted revenues and resulted in a net loss reported for of $C105.2 million including a depletion and depreciation charge of $C33.6 million.

LIM entered into a joint venture with Tata Steel Minerals Canada for the exploration and development of LIM’s Howse deposit by selling a 51% interest in Howse for $C30 million.

LIM completed its 2013 exploration programme of over 12,000 m of diamond and reverse circulation drilling.

The focus of LIM’s 2014 activities will be the development of the Houston Mine and, subject to completion of financing, plans to be in a position to begin production from Houston in 2015.

The full Financial Statements and MD&A can be found on Sedar.

About Anglesey Mining plc

Anglesey is carrying out exploration and development work at its 100% owned Parys Mountain zinc-copper-lead deposit in North Wales, UK where a JORC Code-compliant resource of 2.1mt at 6.9% combined base metals in the indicated category and 4.1mt at 5.0% combined in the inferred category was published in November 2012.

In May 2014 Anglesey acquired the rights to earn a 57% interest in the Grangesberg iron ore mine in central Sweden which had prior indications that at least 115 million tonnes or iron ore at 40% Fe remain for exploitation in the underground workings.

Anglesey holds 15.3% of the shares of Labrador Iron Mines Holdings Limited which over the three years 2011 to 2013 produced about 3.5 million tonnes of iron ore from its operations in Canada, all of which was sold in the China spot market.

For further information, please contact:

Bill Hooley, Chief Executive +44 (0)1492 541981;

Danesh Varma, Finance Director +44 (0)207 653 9881;

Samantha Harrison:  RFC Ambrian +44 (0)20 3440 6800

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Anglesey to acquire controlling interest in Grangesberg Iron

Anglesey Mining plc

29 May 2014        LSE:AYM

Anglesey to acquire controlling interest in Grangesberg Iron

Anglesey Mining plc (“Anglesey”) is pleased to report that it has entered into agreements giving it the right to acquire a controlling interest in the Grangesberg Iron project in Sweden.

Grangesberg Iron Ore Mine:

The Grangesberg iron ore mine is situated in the mineral-rich Bergslagen district of central Sweden about 200 kilometres north-west of Stockholm. Until its closure in 1989 due to prevailing market conditions, the Grangesberg mine was the third largest iron ore mine in Sweden, next only to the Kiruna and Malmberget mines in the north of Sweden, with in excess of 150 million tonnes of iron ore mined down to around 500 metres deep.

Prior indications are that at least 115 million tonnes of iron ore containing around 40% iron remain for exploitation at Grängesberg. The homogenous iron ore body in Grängesberg is of significant size and of the Kiruna geological type, making it well suited for cost-effective production of attractive iron ore products.

The Grangesberg mine site benefits from excellent infrastructure and is located adjacent to the Swedish national rail system which will permit easy access to ice free port of Oxelosund on the Baltic Sea on the south east coast of Sweden, the location of SSAB Sweden’s largest steel plant.  Significant underground and surface infrastructure remains intact at Grangesberg, including a fully operational railway line from mine to port.

It is expected that following the normal environmental permitting processes and engineering design and financing, a conventional underground bulk mining operation followed by processing using standard technology can produce some 2.0 to 2.5 million tonnes per year of saleable iron ore concentrate for the European, Middle East and Asian steel markets.

Agreements:

In a series of agreements Anglesey has purchased for US$145,000 a direct 6% interest in Grangesberg Iron AB (“GIAB”), a private Swedish company that was founded in 2007 with the target of re-opening the historic iron ore mine in Grangesberg and which, in conjunction with the Anglesey investment and with Anglesey assistance, has recently completed a financial and capital restructuring.  GIAB holds a 25 year exploitation permit covering the previously mined Grangesberg underground mining operations granted by the Swedish Mining Inspectorate in May 2013.

At the same time Anglesey has negotiated a 12 month evaluation option to acquire 51% of the enlarged share capital of GIAB for the issue of new ordinary shares of Anglesey.  Anglesey has also entered into shareholder and cooperation agreements such that during the term of the option Anglesey holds management control and operatorship of GIAB and will appoint three out of five directors to the board of GIAB including the Chairman.

The remaining 43% of GIAB is held by Roslagen Resources AB, a Swedish private company, which has led the re-development of the Grangesberg iron project since 2007.  Roslagen will appoint two directors to the board of GIAB and provide experienced local executive management.

As part of the agreements and reorganisation an outstanding loan in GIAB in the principal amount of US$3.5 million due to KII Holdings Limited, a Cypriot company has been renegotiated and is now repayable by the end of 2016.

At the same time, Eurang Limited, a UK private company, has agreed to invest $1.75 million, of which $1.25 million has been invested in GIAB, for new shares representing the 51% shareholding interest in GIAB.  This has been carried out through a new wholly owned special purpose Swedish company, Eurmag AB over which, during the term of the option, Anglesey will hold management and control rights. The additional $500,000 will be used to cover transaction costs and expenses and certain outstanding liabilities.

Option to acquire 51% of Grangesberg

Upon the exercise of the option, which will be entirely at Anglesey’s discretion, Anglesey will acquire all of the shares of Eurang Limited by the issue of new shares of Anglesey to the value of $1.75 million, to be priced at the average of the Anglesey share price at the date of option (3.375p) and the 20 day average share price prior to date of exercise, (but at no lower than 3.375p), and thereby acquire direct ownership and control of the 51% shareholding in GIAB, and thus increase Anglesey’s direct interest in GIAB to 57%.

GIAB will have debt outstanding of about US$ 5 million, (about $4 million including accrued interest payable to KII and about US$1 million of subordinated debt payable on a deferred basis to Roslagen), while Eurang Limited will have debt of approximately US$4.5 million.

During the term of the option Anglesey will hold management control over Eurmag with the ability to exercise voting rights on the shares of GIAB.  If following its evaluation and assessment Anglesey does not exercise its option it will relinquish its board seats and management direction and control of GIAB at the end of the 12 month option period but will continue to hold 6% of the shares of GIAB.

Grangesberg Development plan:

Grängesberg is a mine with a rich historical heritage and an exciting future potential said Bill Hooley, Anglesey Chief Executive. Anglesey believes that there is an opportunity to re-open the Grangesberg mine to provide a local source of high quality iron ore, well known, to the European steel industry.  The agreements announced today give Anglesey the opportunity to evaluate Grangesberg, both technically at the mine level in the Grangesberg area and commercially throughout the Swedish and European steel industry, with the right to acquire control of the Grangesberg project on attractive terms.”

The new capital injection of US$1.25 million in GIAB will be used under Anglesey’s direction to advance the Grangesberg project towards production and for working capital.

Anglesey intends to carry out an evaluation of the Grangesberg project including a technical and economic assessment to determine the viability of putting the Grangesberg iron ore mine back into commercial production under the economic conditions to be expected during the proposed mine life.

Immediate planned work will include a programme of geo-mechanics and monitoring at the mine site as a prelude to obtaining permission to dewater the mine.  In the same time-frame Anglesey plans to produce a new compliant ore resource estimate and to progress work on the pre-feasibility study on reopening the Grangesberg mine.

In parallel with these activities the ongoing background environmental studies and permit applications will be progressed.  Anglesey will also carry out detailed marketing studies on both the Swedish and the greater European markets for Grangesberg iron ore products.

In the subsequent periods, following the exercise of the option and subject to successful financing, it is expected that a definitive feasibility study will be undertaken, including mine definition drilling, process test-work and detailed engineering design and costing.

About Anglesey Mining plc

Anglesey previously led the redevelopment of the Schefferville Area iron ore deposits in western Labrador and north-eastern Quebec and sponsored the initial public offering of Labrador Iron Mines Holdings Limited on the Toronto Stock Exchange. Sharing some common directors and senior management, Anglesey continues to hold 15.3% of the shares of Labrador Iron Mines Holdings Limited which over the three years 2011 to 2013 produced about 3.5 million tonnes of iron ore from its direct shipping iron ore deposits, all of which was sold in the China spot market.

Anglesey is also carrying out exploration and development work at its 100% owned Parys Mountain zinc-copper-lead deposit in North Wales, UK where a JORC Code-compliant resource of 2.1mt at 6.9% combined base metals in the indicated category and 4.1mt at 5.0% combined in the inferred category was published in November 2012.  A detailed review of the resource base for the entire site has recently been commenced by Micon International.  The company continues to review the future demand predictions for base metal concentrates particularly zinc ahead of any decision to move to development and production.

For further information, please contact:

Bill Hooley, Chief Executive +44 (0)1492 541981;

Danesh Varma, Finance Director +44 (0)207 6539881;

Samantha Harrison:  RFC Ambrian +44 (0)20 3440 6800;

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