(HMB) Hambledon Mining

Placing of Shares

Hambledon Mining PLC

Hambledon Mining plc (“Hambledon” or the “Company”)

Placing of 177,507,699 Placing Shares at 3.25 pence per new Ordinary Share and Notice of General Meeting

1 February 2012

1. Introduction

The Company is pleased to announce that it proposes to raise up to approximately US$9.06 million (US$8.56 million net of expenses) through the issue of 177,507,699 new Ordinary Shares through the Placing at an issue price of 3.25 pence per new Ordinary Share.

The Issue Price represents a discount of approximately 18.75 per cent. to the price of 4 pence per Existing Ordinary Share, being the Closing Price per Existing Ordinary Share on 31 January 2012 (the latest practicable date prior to the date of this announcement).

In addition, the Company announced on 12 January 2012 that the European Bank for Reconstruction and Development (“EBRD”) had posted on its website a 'Project Summary Document' relating to a potential US$15.0 million debt facility together with an equity investment of US$3.0 million for the Group to develop the Sekisovskoye underground mining operation. It is also proposed that, on signing the debt facility, EBRD be issued with warrants over up to 30 million new Ordinary Shares.

A Circular has today been posted to Shareholders and will be available shortly from the Company’s website at www.hambledon-mining.com.

2. EBRD

The Company has agreed heads of terms with EBRD for the provision by EBRD of a debt facility of US$15.0 million and for EBRD to make an equity investment in the Company by subscribing for approximately 58.8 million new Ordinary Shares at a price of 3.25 pence per new Ordinary Share, raising a further US$3.0 million (with the precise number of new Ordinary Shares being determined by reference to the prevailing �:US$ exchange rate at the relevant time). If such Ordinary Shares are issued, immediately following that issue and assuming that the Placing has completed (but no further Ordinary Shares are issued), EBRD's holding of approximately 58.8 million Ordinary Shares will represent approximately 6.00 per cent. of the issued share capital of the Company.

In addition, it is proposed that EBRD is granted warrants over up to 30 million new Ordinary Shares. If issued, the Warrants will vest immediately. The Warrants will be exercisable at any time before the earlier of (i) the expiry of a period of two years from the date of signature of the proposed EBRD debt facility or (ii) if the price per Ordinary Share exceeds 6.5325 pence for a period of 20 consecutive trading days during such two year period, 45 days from the date on which the Company notifies EBRD that this condition has been met. In either case, any Warrants not exercised within the relevant period will lapse. The exercise price of the Warrants will vary depending on the price of Ordinary Shares in the period following vesting, but will not be less than at a 50 per cent. premium to the EBRD Subscription Price (that is, not less than 4.875 pence per new Ordinary Share). If the Warrants are exercised in full at an exercise price of 4.875 pence per new Ordinary Share up to US$2.30 million will thereby be raised by the Company. On completion of the Placing and the EBRD Equity Investment and if the Warrants are exercised in full (but no further Ordinary Shares are issued) EBRD will hold up to 88,794,708 Ordinary Shares representing approximately 8.79 per cent. of the issued share capital of the Company.

The EBRD debt facility and EBRD Equity Investment are subject to approval by EBRD’s operations committee and its board of directors. The Company announced on 27 January 2012 that the approval of the EBRD operations committee had been obtained. Whilst the Directors are confident that board approval will be obtained in February 2012, this cannot be guaranteed. If approved in February 2012, it is anticipated that US$10.0 million of the EBRD debt facility will become available to the Company in May 2012 with the remaining US$5.0 million becoming available when the Company meets certain operational benchmarks, which are expected to occur in late 2012.

The EBRD Equity Investment will not proceed without the Resolution being passed. If the Resolution is not passed and the EBRD Equity Investment is unable to be made it is expected that the proposed US$15.0 million debt facility from EBRD will remain available to the Company.

3. Reasons for the Placing, the EBRD Equity Investment and use of proceeds

Acquisition of Akmola Gold

As announced on 15 September 2011, the Company has entered into conditional agreements for the purchase of a 100 per cent. interest in Akmola Gold, subject to, amongst other things, obtaining certain governmental waivers and consents. Akmola Gold wholly owns two precious metals projects, Tellur and Stepok, which are both situated in central Kazakhstan, some 140 km north of Astana.

It is estimated that these projects have combined resources of approximately 440,000 ounces of gold plus silver and other metals, which the Directors' believe could offer the potential for considerable up-side after further drilling. The Company is required to make a payment of US$2.5 million by 30 March 2012 to the vendors of Akmola Gold plus a permitting fee and associated costs of approximately US$0.5 million to the Government of Kazakhstan. Although negotiations are in progress to obtain a debt facility from EBRD, as mentioned above, and these negotiations have reached an advanced stage, the completion of this debt facility, and therefore drawdown under it, will not be available in time to allow the funds to be used for these payments.

In addition, the acquisition of Akmola Gold will involve the issue by the Company of new Ordinary Shares to the value of US$2.5 million. This will require Shareholder approval and a general meeting to seek this approval will be convened in due course.

Administrative Fine

On 2 November 2011 the Company announced that it had temporarily suspended operations at its mineral process plant at the Sekisovskoye mine whilst a leak in Tailings Dam 3 was repaired. Operations at the mineral process plant re-commenced on 7 November 2011. The Company estimates that production of gold for November 2011 was reduced by this interruption in operations by approximately 650 oz.

On 29 December 2011, the Company announced that preliminary information had been received from the Chief National Environmental Inspector for Eastern Kazakhstan of the Irtysh Environmental Department regarding a fine for the rupture to the liner in Tailings Dam 3, constituting an administrative offence arising from environmental damage.

The appointed court investigator has imposed an initial fine in relation to the breach of approximately Tenge 272 million (approximately US$1.83 million). The Company has appealed against the level of this initial fine and is confident that it will be reduced. No specific time period for payment of the fine has yet been stipulated. The Company expects to make an appropriate provision in respect of the fine in the Group accounts for the year ended 31 December 2011.

A court hearing on 26 December 2011 was adjourned and is expected to be held in Q1 2012 although no specific date has been stipulated.

It is intended that up to US$1.75 million of the Placing proceeds will be applied towards payment of the fine. If the final sum due is in excess of US$1.75 million then it is expected that the balance will be funded out of the Company’s cash reserves.

Tailings Dam 3 Repairs

The remedial works to reinstate Tailings Dam 3 will seek to ensure that the foundation is secure for future operation. This will require the engagement of two specialist British engineering companies and will involve the importation of specialist materials from the UK and Canada. The cost of such technical assistance and construction materials is estimated at approximately US$0.75 million.

Repayment of Alfa Bank facility

At present the Company’s operating subsidiaries utilise a working capital facility from Alfa Bank to cover their requirements during the period of reduced gold production in the winter months. This facility is currently drawn down to a level of approximately US$1 million. It is proposed that this facility will be terminated to allow the security over certain plant, property and machinery that is held by that bank to be released. It is intended that security over these assets will be granted in favour of EBRD as part of the collateral for the provision of the proposed EBRD debt facility, further details of which are referred to above. It is expected that US$1.25 million of the Placing proceeds will be used to repay the outstanding amount of approximately US$1 million together with approximately US$0.25 million of accrued interest and other charges and costs associated with the repayment of this facility and the release and transfer of collateral to EBRD.

Change to refining and precious metal sale arrangements

The Government of Kazakhstan has implemented a new law which came into force on 1 January 2012, which requires the Company’s production of gold and silver dore to be processed by a Kazakhstan refiner, rather than by the Company’s existing refiner, Metalor, which is based in Switzerland. The Government of Kazakhstan has implemented a further new law, also with effect from 1 January 2012, which requires the sale of all such refined gold and silver (all precious metals) to the National Bank of Kazakhstan. The Company has discussed these changes with The Industrial Committee of the Ministry of Industry and New Technologies of the Republic of Kazakhstan and has reached formal agreement with them that the Company can continue to refine its gold and silver dore outside of the Republic of Kazakhstan until 1 January 2013, notwithstanding the implementation of this new legislation. However, once applicable to the Company, the Directors estimate that the legislative changes outlined above will have the effect of delaying the date of payment to the Company for the gold and silver, once refined, by approximately 60 days. The time period between production of the dore and receipt of funds will therefore increase to a total period of approximately 70 days. The Directors believe that this will lead to a significant increase in the Company’s working capital requirements in early 2013. The Directors will continue to monitor closely the Company’s working capital requirements during this time.

Summary

It is anticipated that the gross proceeds of the Placing and the EBRD Initial Share Subscription of, in aggregate, approximately US$12.06 million will be utilised by the Company as follows:

Implementation of the Placing and the EBRD Equity Investment is conditional on, inter alia, Shareholders passing the Resolution at the General Meeting. If Shareholders do not pass the Resolution and the Placing or the EBRD Equity Investment does not proceed, the Company will not be able to make the required payments set out above and may not be able to pursue its long term business objectives.

4. Terms of the Placing

The Company has conditionally placed 177,507,699 Placing Shares at 3.25 pence per Placing Share with certain existing and new institutional and other investors to raise approximately US$9.06 million before expenses. The Placing is not being underwritten.

Tim Daffern and Jeffrey O’Leary, each being Directors, are Placees in respect of 50,000 and 92,308 Placing Shares respectively.

Application will be made to the London Stock Exchange for the Placing Shares to be admitted to trading on AIM. It is expected that such Admission will become effective and that dealings will commence at 8.00 a.m. on 20 February 2012.

The Placing is conditional, amongst other things, on the following:

(A) the Placing Agreement not being terminated prior to Admission and becoming otherwise unconditional in all respects;

(B) Admission becoming effective on or before 8.00 a.m. on 20 February 2012 (or such later date and/or time as the Company and Fairfax may agree, being no later than 5.00 p.m. on 5 March 2012); and

(C) approval of the Resolution (without material amendment) at the General Meeting to be held at the offices of Fairfax I.S. PLC at 46 Berkeley Square, Mayfair, London, W1J 5AT at 11.30 a.m. on 17 February 2012.

5. Current trading

The operations at Sekisovskoye continue to perform satisfactorily. The mineral process plant achieved record levels of throughput in 2011. This has been primarily as a result of the investment in the refurbishment of infrastructure during 2011 funded by the proceeds of the placing and open offer in March 2011. The open pit mine and attendant machinery fleet has been the subject of significant investment in 2011 with considerable waste removed which has enhanced the Company’s excavation efficiencies and productivity.

The construction of Tailings Dam 4 and changes to effluent deposition are well advanced and were undertaken at a cost of approximately US$1.5 million. The expansion and refurbishment of the engineering workshops have been completed at a cost of approximately US$0.75 million. The open pit mining machinery fleet has been expanded and refurbished and this has been completed at a cost of approximately US$4 million. The design and permitting of the expanded electrical reticulation has been completed at a cost of approximately US$1 million, with installation scheduled for Q4 2012.

Despite these advances the operations continue to have high cash costs which are related primarily to the low grade of ores treated in 2011 (a consequence of moving the significant quantities of excess waste in the open pit and commensurate processing of low grade ores whilst the waste was extracted) and the high cost of handling the large quantities of waste. The operations are now better placed to benefit from these investments in 2012.

The commencement of underground mining at Sekisovskoye marks the transition to a combined open pit and underground operation for the next three years. The development of the underground mine was completed ahead of schedule and under budget and is a credit to the dedication of the Company’s site employees. The expansion of the underground mine in 2012 should see the Company attain its target of increasing gold production

Production update in respect of the three months from 1 July 2011 to 30 September 2011 (unaudited):

The unaudited production figures for the 12 months from 1 January 2011 to 31 December 2011 are as follows:

6. General Meeting

For the purposes of effecting the Placing and the EBRD Equity Investment, the Resolution will be proposed at the General Meeting. Set out at the end of the Circular sent to Shareholders today, is the Notice of General Meeting which is to be held at the offices of Fairfax I.S. PLC at 46 Berkeley Square, Mayfair, London, W1J 5AT at 11.30 a.m. on 17 February 2012. The full text of the Resolution is set out in that notice. Implementation of the Placing is conditional, inter alia, on Shareholders passing the Resolution.

If Shareholders do not pass the Resolution, the Placing will not proceed and neither will the EBRD Equity Investment. If the Resolution is not passed and the EBRD Equity Investment is unable to be made it is expected that the proposed US$15.0 million debt facility from EBRD will remain available to the Company.

Tim Daffern, Chief Executive Officer of Hambledon stated:

‘’The Company recognises and appreciates the considerable support for Hambledon’s business plan from both existing and new institutional shareholders in this oversubscribed fundraising. Both the institutional placing and the proposed EBRD funding are highly valued by the Directors of the Company. We look forward to updating all Shareholders with further strong news flow in 2012.

Hambledon can now look forward to the future with a strong balance sheet and a broader shareholder list, including the EBRD and several highly respected investment management groups. With the support of the proposed EBRD debt facility and the new equity raised in the Placing, Hambledon is well positioned to become a well funded multiple deposit Kazakhstan focussed gold play.

The expansion of the Sekisovskoye underground mine remains central to the Hambledon Group’s growth in gold production, augmented by the Akmola Gold acquisition that nears completion. It is intended that the Sekisovskoye process plant will act as a hub for processing gold from the Tellur project which will leverage the Group’s cash generation and gold production. We look forward to updating Shareholders shortly in relation to final EBRD board approval for the debt and equity investment and completion of the Akmola acquisition.’’

Enquiries:

HAMBLEDON MINING:

Telephone +44 (0)207 233 1462

Charles Zorab

FAIRFAX I.S. PLC (NOMAD AND BROKER):

Telephone +44 (0)207 598 5368

Ewan Leggat/Katy Birkin

TAVISTOCK COMMUNICATIONS:

Telephone +44 (0)207 920 3150

Ed Portman/Jos Simson

DEFINITIONS

The following exchange rates have been used throughout this announcement:

�1:$1.57

US$1:KZT(Tenge)148.37

EBRD approval

Hambledon Mining PLC

Hambledon Mining plc (“Hambledon” or the “Company”)

Potential investment by EBRD

27 January 2012

Further to the announcement made on 12 January 2012, Hambledon is pleased to announce that the European Bank for Reconstruction and Development (“EBRD”) has advised the Company that final approval has been granted today by EBRD’s operations committee for its potential US$15 million loan and equity investment of US$3 million for Hambledon to develop the Sekisovskoye underground mining operation. Final approval is subject to approval by EBRD’s Board of directors who will meet in February 2012.

The EBRD Project Summary Document is set out on its website and can be accessed through the following link: http://www.ebrd.com/pages/project/psd/2012/42831.shtml. This web link will be updated by EBRD on 30 January 2012 to reflect the approval by the operations committee.

Tim Daffern, CEO of Hambledon commented:

“The Board of Hambledon is excited about the growth of the Company which will be enhanced by having the backing of a lender and investor of the stature of EBRD”.

Enquiries;

HAMBLEDON MINING:
Telephone +44 (0)207 233 1462
Charles Zorab

FAIRFAX I.S. PLC (NOMAD AND BROKER):
Telephone +44 (0)207 598 5368
Ewan Leggat/Katy Birkin

TAVISTOCK COMMUNICATIONS:
Telephone +44 (0)207 920 3150
Ed Portman/Jos Simson

Drilling Report

Hambledon Mining PLC

Hambledon Mining plc

(“Hambledon” or “Company”)

Latest drilling results from Sekisovskoye underground project, Kazakhstan

19 January 2012

Hambledon Mining Plc (AIM: HMB), the Kazakhstan gold mining and development company, continues to advance its underground drill programme to validate and expand the geological resources at Sekisovskoye and today reports the results of a further four drill holes.

The results from the programme during December 2011 following a period of six weeks of planned maintenance of the drill rigs are as follows:

• A cumulative total of sixty seven holes drilled to date over 9,000 metres
• The main intersections since the last update include:
  • Hole D65 – 9m at 4.86g/t Au,
  • Hole D66 – 2m at 3.5g/t Au,
  • Hole D67 – 4m at 2.62g/t Au,

To date, sixty seven drill holes have been completed in the upper levels of the underground ore zones and the results are consistent and in many areas exceed the geological and mineral resource modeling previously carried out.

The assays were carried out in the Altai Ken-Bayitu laboratory with independent verification to be undertaken by the Alex Stewart Group in Karabalta, Kyrgyzstan.

The Sekisovskoye deposit comprises approximately ten large mineralised zones intermingled with numerous narrow and sinuous mineralisation zones. The zones of mineralisation show wide variation in thickness from 0.35 metres to 30 metres, with a weighted average of 5.5 metres. The zones display a localised pinch and swell structure, with variable gold and silver content. The large average width makes for easier and lower cost mining.

The ore body to be mined in 2012 is ore body number 11 where mining started in Q4, 2011. The drill results and mined grade [including dilution] compare favorably and provide robust confirmation of the geological model.

Good progress has been in made in expanding the underground mining zones with three levels being mined at present and a fourth due to commence in early February, 2012. The ground conditions have to date been good and water inflow within the excavation zones minimal, providing confidence that the bulk mining methods to be employed later will be technically feasible.

A significant programme of geological and rock mass characterisation will take place concurrently to ensure that the mining operation advances in tandem with sound engineering knowledge guiding the development of the project. A team of UK geologists will be visiting the mine site in mid-2012 for three months to carry out additional and specific structural mapping to add to the rock characterization studies supervised by Golder Associates, UK.

Qualified Person

Information in this report relating to the exploration results is based on data reviewed by Timothy Daffern, BEng, MBA, FIMMM, FAusIMM, MCIM, Chartered Mining Engineer, Chief Executive Officer of Hambledon Mining plc. Timothy Daffern has in excess of 23 years’ experience in mineral project development and evaluation including exploration and is a Qualified Person under the AIM Rules.

ENQUIRIES:
HAMBLEDON MINING:
Telephone +44 (0)207 233 1462
Charles Zorab

FAIRFAX I.S. PLC (NOMAD AND JOINT BROKER):
Telephone +44 (0)207 598 5368
Ewan Leggat/Katy Birkin

TAVISTOCK COMMUNICATIONS:
Telephone +44 (0)207 920 3150
Ed Portman/Jos Simson

Production Update

Hambledon Mining PLC

16 January 2012

Hambledon Mining Plc

(“Hambledon” or the “Company”)

Activities Report for the Quarter Ended 31 December 2011

Hambledon Mining plc (AIM: HMB), the Kazakhstan gold mining and development company, today reports on its operations and corporate highlights for the three months from 1 October to 31 December 2011. A copy of this report will be available on the Company’s website, www.hambledon-mining.com.

Operational and Corporate Highlights:

• Initial contribution from underground ore increased overall Au grade by 22 per cent. compared to quarterly results in Q3 2011; Crushing and screening plant performing exceptionally well during winter period;
• Excess waste ore removal to be completed by beginning of Q2 2012;
• Senior on-site Project Manager recruited;
• Fines for tailings dam 3 appealed against, hearing now set for end January;
• Akmola Gold: Antimonopoly commission consent received, acquisition nearing completion
• EBRD negotiations being finalised

Tim Daffern, CEO of Hambledon said “The on-going extraction and infrastructure development for the underground mine at Sekisovskoye position the Group to become a growing gold producer with production from Sekisovskoye rising progressively to over 100,000 ounces per year with Akmola Gold potentially adding a further 50,000 ounces per year.

The appointment of an on-site project manager puts in place the senior level skills needed for the management of our expansion plans.”

Operational results for the three months from 1 October to 31 December 2012:

PROCESSING

During the final quarter of 2011 higher ore grades from the open pit (reaching up to 2.49 g/t Au) and from the underground mine were fed to the plant. With an increasing open pit grade and ongoing production from the underground mine, Sekisovskoye is now well positioned to increase gold production significantly over the course of this year.

Gold recovery was slightly lower than in previous quarters, not helped by the plant shutdown in early November, which also constrained production levels. There were also changes in the cyanide quality with commensurate consumption of lime and oxygen. Additional control equipment is currently being installed to improve the control of the process chemistry. The Company expects to return to previous levels of recovery once all the equipment has been installed.

The crushing and screening plant continuously exceeded internal performance targets of 120tph for the quarter and highlighted the positive effect of the infrastructure refurbishment of the jaw crusher, conveyors systems and cone crushers completed in Q2 and Q3 2011. Despite the plant stoppage in November 2011, the 2011 tonnage processed of approximately 744,000t exceeded 2010 by approximately five per cent., highlighting the improved efficiency and performance of the metallurgical plant.

OPEN PIT MINING

Mining activities were primarily centred on the main open pit where most of the remaining excess waste ore was removed. There remains a small quantity to be excavated in Q1 2012. The result of the removal of the excess waste has been higher operating costs in 2011, which will reduce in 2012 as the waste to ore ratio decreases.

UNDERGROUND

Underground mining continues to progress ahead of schedule and under budget. Three operating levels are now in place with an expansion to five scheduled for the end of Q1, 2012. This will allow the underground mine to reach its targeted production level of 100,000t ore in 2012.

The contractor continues to perform well. Infrastructure work has included a large underground workshop, a substantial underground pumping station, first aid and welfare rooms, offices and large explosive magazines. This infrastructure will enable more efficient and lower cost underground mining once completed in mid-2012.

The mining engineering and pre-feasibility studies conducted by Golder Associates (UK and Canada) have been completed and the results are being used to guide the trial mining in the upper levels using modified room and pillar extraction techniques. The first trial bulk mining extraction stopes will commence in Q2 2012 so that a phased development towards bulk tonnage low cost mining is made.

The diamond drilling programme was briefly suspended at the end of 2011 to allow for annual machinery maintenance. The work has re-started and results from the next phase of drilling are expected to be released shortly.

Geological modeling of the underground resource continues and results will be released prior to publication of the Company’s annual report.

TAILINGS DAM NO.3 (TD3)

A small leak from TD3 occurred in late October 2011 when the liner failed resulting in a release of low level cyanide-containing effluent to a stream which flows across the mine site. The Company informed the competent authorities and was requested to add a cyanide neutralising agent to the watercourse. The Company provided an alternative water supply for local residents until the authorities declared that the stream no longer presented a risk to water users. In addition, the Company has entered into an agreement with the local communities to contribute to local social infrastructure, including provision of municipal water supply, recreational facilities for communities, road surfacing, etc.

The Company appointed an international mining engineering consultant to undertake a root cause analysis of the failure and to design remedial measures. In addition, an independent third party consulting firm was then mandated to review the incident analysis and proposed remedial works.

On the basis of the above, Hambledon is satisfied that the cause of the recent failure is understood and a feasible engineering solution to TD3 remediation and re-commissioning has been developed.

Fines / penalties

• Hambledon has received notice that it is to be fined �1.17m for an administrative offence arising from environmental damage. An appeal against the level of the fine has been lodged.
• A court hearing was due on 5 January 2012 but after reviewing the appeal documentation the courts decided to postpone the hearing until late January 2012.
• It is normal in Kazakhstan for a fine to be imposed and for the amount of the fine to be reduced in court according to the arguments for and against the level of the fine.

The imposition and contesting of fines in Kazakhstan is considered to be normal practice in Kazakhstan and previous experience suggests that the fine will be significantly reduced.

SITE MANAGEMENT

Mr. Mike Grummit, a senior Project Manager, has been recruited by the Company. Mike is a UK Chartered Mining Engineer of some 40 years’ experience, most recently with African Barrick, and will join Hambledon at the end of Q1 2012.

Mike’s role will be to manage the execution of the Company’s projects in Kazakhstan. Mike has extensive underground gold mine construction and operational expertise.

AKMOLA GOLD LLP

As previously notified, the sale and purchase agreement for Akmola Gold was signed at the beginning of Q4, 2011. The applications to the Anti-Monopoly Commission and the Ministry of New Industry and New Technology (MINT) were made to allow the conditions required for closing to be met.

Since then, the Anti-Monopoly commission waiver has been received and staff in Kazakhstan have responded to all government queries regarding the proposed development of the Akmola Gold LLP properties.

It is hoped that the acquisition completion will take place around the end of Q1 2012, with the commencement of site establishment and development of the underground infrastructure. It is envisaged that the first ores from the Tellur project will be mined in mid-2013 for processing at the Sekisovskoye project.

ENQUIRIES:

HAMBLEDON MINING:

Telephone +44 (0)207 233 1462

Charles Zorab

FAIRFAX I.S. PLC (NOMAD AND BROKER):

Telephone +44 (0)207 598 5368

Ewan Leggat/Katy Birkin

TAVISTOCK COMMUNICATIONS:

Telephone +44 (0)207 920 3150

Ed Portman/Jos Simson