Alexander Mining plc

Audited Results for the year ended 31 December 2012

Notice of Annual General Meeting

and

Posting of Annual Report

Alexander Mining plc ("Alexander" or the "Company"), the AIM-listed mining and mineral processing technologies company, announces its audited results for the year ended 31 December 2012.

Highlights:

·      Important patents granted for our intellectual property, encompassing a growing number of important mining countries and base metals

·      Notable progress towards commercialisation

·      Good progress with Metalvalue on DRC and zinc recycling opportunities

·      Established excellent foothold in Turkey, a country with significant potential for Alexander's leaching technologies

Chairman's Statement

Since my statement last year, Alexander has made important progress towards the commercialisation of its proprietary AmmLeach® mineral processing technology.

With the mining industry's reinvigorated focus and in this 'age of austerity', on costs and return on capital employed, we have found that the scope for major operating and capital cost savings using our technology is of great interest for existing and potential mines. Miners are now concentrating on wringing the most out of their resources, largely as a result of forceful pressure from investors unhappy with project and mine costs blow-outs and disastrous acquisitions at the top of the market.

In mid-2012, in partnership with MC Process Pty Ltd of South Africa, we announced the successful commissioning of an AmmLeach® copper/cobalt demonstration plant in South Africa. This was the first Amm Leach® plant in the world with two circuits going through to copper and cobalt cathode metal. Moreover, this was a major improvement when compared with the majority of Democratic Republic of Congo's ('DRC') cobalt, which is currently produced as a concentrate requiring further processing outside of the DRC.

This success formed the background to achieving the notable progress towards commercialisation last year. This included the Leaching Technology Licence Agreement ('November 2012 Agreement') signed with Metalvalue Limited ('Metalvalue'). We have worked with Metalvalue to progress the establishment of a commercial AmmLeach® copper/cobalt processing plant in the DRC, and to investigate the development of a European plant for the recovery of zinc from electric arc furnace dust ('EAFD'). Regarding the DRC and EAFD Projects, Metalvalue is actively investigating the next steps, with Alexander's technical involvement, including financing and establishing dedicated pilot plant(s).

Further to this excellent technical progress, a new agreement with Metalvalue Capital Holdings ('MCH') (to which Metalvalue is the technical consultant and is the investment vehicle managed by Metalvalue Advisors SA ('MVA')) was signed, along the terms of the November 2012 Agreement, which has been terminated. This is to reflect the closer understanding of the optimal way to advance projects in the future. A major outcome of the revised agreement for Alexander is a doubled gross sales royalty and, given Alexander's recently completed equity financing, the benefit of minimised equity dilution.

We are devoting considerable attention to Turkey, a country with significant potential for Alexander's proprietary leaching technologies. This initiative is supported by the appointment of Alan Clegg to the Alexander board (see below) who is a resident of Turkey and where he is especially well connected. We have reported favourable AmmLeach® amenability testwork results for the recovery of zinc from samples provided by Red Crescent Resources Limited ('RCR') from its Hakkari Zinc Project in far south-east Turkey. Importantly, the samples were of a zinc oxide mineralisation type which occurs in several other locations in the country.

As a result of initial favourable interest, we have also decided to investigate opportunities with German universities, or similar R&D establishments. The Board hopes that this could see potential involvement in joint ventures for improvements to and research and development of our intellectual property ('IP'), leading to the establishment of a pilot plant(s) in Germany.

In Australia, we hope that the opportunity with Altona Mining Limited to investigate the use of AmmLeach® technology for copper recovery at its Roseby Project will progress to the next stage.

We have also had favourable AmmLeach® amenability testwork results for base metals projects in North Africa and Zambia. Both are areas of the world holding attractive potential for commercial adoption.

Underwriting our leaching technology IP is our portfolio of patents, both granted and pending. The former having grown significantly during the last year. We expect regular news flow about our suite of patent applications as they progress through the various stages of the patenting process.

Finances

We announced in March that Alexander had raised £751,000 gross through a placing of new ordinary shares to institutional and other investors, and to certain directors and officers of the Company. We welcome the significant and strategically important new shareholders the placing brought, including those from Turkey, as well as experienced technology investors in Germany and Switzerland. Subsequent to the revised agreement with Metalvalue, we have also received from it a subscription of £200,000 for Alexander shares. Our current cash position, coupled with expectations for additional consultancy and testwork revenue, is a sound working capital position from which to grow the Company.

Outlook

Although the health of the world economy can hardly be said to be in the pink, equity markets have enjoyed an excellent start to 2013. Hopes are high that healthy world economic growth is within sight. Mining companies have battled these headwinds of economic uncertainty satisfactorily. However, there now seems to be an industry acceptance, based on investors' demands, that improving margins and a proper return on capital are paramount. During the period of my review, base metals' prices have been volatile and range bound, albeit weakening recently. As I said in my opening remarks, this is an environment which suits the commercialisation of our technology given its potential significant impact on many base metals mine economics. With the progress and initiatives announced to date and those foreseeable, I am highly confident in Alexander's future.

I am delighted that Alan Clegg has recently joined the board. Alan has outstanding global mining industry experience, including extensive worldwide involvement with feasibility studies and mine development, which will be a major asset for the Company.

Finally, I would like to express my appreciation for the continued hard work and dedication of Alexander's employees, consultants and directors.

Matt Sutcliffe

Executive Chairman

22 May 2013

For further information please contact: 

Alexander Mining plc

1st Floor

35 Piccadilly

London

W1J 0DW

Tel:           +44 (0) 20 7292 1300

Fax:          +44 (0) 20 7292 1313

Email:       mail@alexandermining.com

Website:   www.alexandermining.com

Nominated Advisor and Broker

Northland Capital Partners Limited

Louis Castro / Lauren Kettle

+44 (0) 20 7796 8800

Public/Media Relations

Britton Financial PR

Tim Blackstone

+44 (0) 20 7242 9786

Consolidated income statement for the year ended 31 December 2012

Consolidated statement of comprehensive income for the year ended 31 December 2012

Consolidated balance sheet as at 31 December 2012

Consolidated statement of cash flows for the year ended 31 December 2012

Consolidated statement of changes in equity for the year ended 31 December 2012

Notes

1. Financial statements

The financial information set out in this announcement does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006 for the year ended 31 December 2012 or for the year ended 31 December 2011, but is derived from those accounts.  The financial statements for 2012 will be delivered to the Registrar of Companies following the Company's Annual General Meeting.  The auditors have issued an unqualified report on these accounts. The auditor has issued an unqualified opinion in respect of the financial statements which does not contain any statements under the Companies Act 2006, Section 498(2) or Section 498(3).  The auditor has raised an Emphasis of Matter in relation to going concern and the availability of project finance as follows:

"In forming our opinion, which is not modified, we have considered the adequacy of the disclosures made in note 2(a) to the financial statements concerning the requirement of the company to raise further finance within the next twelve months in order to continue its operations and to meet its commitments. If the company is unable to secure such additional funding, this may have a consequential impact on the company's and the group's ability to continue as a going concern. The outcome of any corporate developments or fundraising cannot presently be determined, and no adjustments to asset carrying values that may be necessary should the company be unsuccessful have been recognized in the financial statements. These conditions, along with the other matters explained in note 2(a) to the financial statements, indicate the existence of a material uncertainty which may cast significant doubt about the company's ability to continue as a going concern".

2. Summary of significant accounting policies

a)   Basis of preparation

The financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") in force at the reporting date and their interpretations issued by the International Accounting Standards Board ("IASB") as adopted for use within the European Union and with IFRS and their interpretations issued by the IASB.

The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries) made up to 31 December each year.

Going Concern

Based on a review of the Group's budgets and cash flow forecasts, the directors have identified that if current and near-term corporate development opportunities are unsuccessful in providing adequate funding then the Company will need to raise finance within the next twelve months in order to continue its operations and to meet its commitments.

In common with many mining, exploration and intellectual property development companies, the Company needs to raise finance for its activities in discrete tranches to finance its activities for limited periods. The Directors are confident that the Company currently has a range of corporate development opportunities which could include significant funding outcomes and moreover that, if necessary, any further funding can be raised as and when required. On this basis, they have concluded that it is appropriate to draw up the financial statements on the going concern basis. However, there can be no certainty that either development opportunities or alternative funding will be secured in the necessary timescales and this indicates the existence of a material uncertainty that may cast significant doubt on the ability of the company and the group to continue as a going concern. The financial statements do not include any adjustments, particularly in respect of fixed assets, investments, receivables and provisions for winding up which could be necessary if the Company and Group ceased to be a going concern.

b)   Research and development expenditure

Research costs are recognised in the income statement as an expense as incurred.  Development costs are recognised in the income statement as an expense as incurred unless the development project meets specific criteria for deferral and amortisation.  No development costs have been deferred to date because there is insufficient information at the balance sheet date to quantify the expected future economic benefits from the proprietary leaching technologies.

3. Discontinued operations

On 28 February 2011, the Company completed, as planned, the sale of its entire interest in its subsidiary, Alexander Gold Group Limited, for the sum of US$2,200,000. US$400,000 was received on execution of the legally binding sale and purchase agreement and 18 monthly payments of US$100,000 each became due, commencing in March 2011.

Final payment of the consideration receivable was completed on 28 February 2013.

4. Dividends

The directors do not recommend the payment of a dividend (2011: nil)

Annual Report

The Annual Report will be posted to all shareholders by 23 May 2013 and will be available on the Company's website at www.alexandermining.com.  Additional copies will be made available to the public, free of charge, from the Company's registered office at 35 Piccadilly, London W1J 0DW. 

Annual General Meeting

The Company's Annual General Meeting will be held at the offices of Northland Capital Partners Limited, 60 Gresham Street, London EC2V 7BB, at 10:30am on Thursday 20th June 2013.  The Notice of the AGM is included in the Company's annual report and the associated explanatory notes relating to the proposed resolutions at that meeting.

Disclaimers and forward looking statements

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

This news release contains forward looking or future-oriented financial information, being information which is not historical fact, including, without limitation, statements regarding potential results of metallurgical testwork, anticipated applications for the Company's intellectual property and discussions of future plans and objectives. Although the Company believes that the expectations reflected by such information are reasonable, these statements are based on assumptions and factors concerning future events that may prove to be inaccurate. Such statements are necessarily based upon a number of estimates and assumptions based on information available to the Company about itself and the business in which it operates.  Information used in developing forward-looking information has been acquired from various sources including third party consultants, suppliers, regulators and other sources and is subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from the Company's expectations are the continuing availability of capital resources to fund the commercialisation of Alexander's technologies; continued positive results from trials and applications of Alexander's AmmLeach® and HyperLeach® technologies and other factors as disclosed in Company documents filed from time to time. Management uses forward-looking statements because it believes they provide useful information to the shareholders with respect to proposed transactions involving Alexander, and cautions readers that the information may not be appropriate for other purposes and should not be read as guarantees of future performance or results.  The Company disclaims any intention or obligation to revise or update such statements unless required by law.