(AXM.L) Alexander Mining PLC Buy/Sell

Chairman's Review

I am pleased to report on Alexander Mining plc's interim results for the six months ended 30 June 2009.

MetaLeach

During the period, the Company has continued to devote its efforts to the commercialisation of its proprietary MetaLeach® mineral processing technologies. It is gratifying to report that we have made significant progress.

Firstly, the major effort in the global licensing of our technology with mining companies and which is aimed at generating a long term royalty stream has made excellent progress. In the course of these activities, confidentiality agreements have been signed with both majors and juniors. In particular, the Company has had significant interest from companies active or interested in the African copper belt (Zambia and the Democratic Republic of the Congo). This is due to the nature of the region's prevailing mineralogy, which is especially suited to AmmLeach®, and important advances made in using AmmLeach® to process copper/cobalt ores.

Secondly, the consultancy agreement with RPT Resources ("RPT"), announced on 27 August 2009, to develop mining projects with MetaLeach's proprietary leaching technologies is an excellent way of accelerating the commercialisation of our leaching technology for mutual benefit. It will allow the Company to participate in any future profits and gains via significant equity stakes in suitable properties/projects but with a negligible cost to Alexander. The Company has identified many attractive opportunities in different regions of the world suitable for acquiring direct equity interests in copper and zinc properties and development projects. In turn, RPT brings its valuable financial resources and equity capital markets experience to this exercise and we are already presenting properties, with excellent prospects, for their consideration.

Under the agreement, Alexander will be paid a consultancy fee of US$300,000 per annum for information regarding potential mineral properties which may be suitable for the use of MetaLeach's proprietary leaching technologies. RPT can select properties for acquisition and will be responsible for funding initial acquisition costs and the development of a selected property through to commercial production. MetaLeach will provide RPT with technical/testwork services on its normal commercial terms in relation to the application of the leaching technologies to each selected property. MetaLeach will provide a licence for the use of its leaching technologies on the selected property to enable the property to be developed and for commercial production to proceed. RPT and MetaLeach will share profits and gains from a selected property, after crediting RPT with all acquisition and subsequent development costs, in the ratio of 80 per cent. and 20 per cent. respectively.

As a result of our research and development activities the Company has filed important AmmLeach® supplementary patents. The Company is advancing discussions with third parties on collaboration to progress the HyperLeach® technology at a minimal cost. An additional opportunity for AmmLeach® has arisen with recent research and development testwork on its applicability for processing some nickel laterites, with the potential for significant cost savings compared to conventional nickel processing methods

Financial Review

The Company's cash balance at 30 June was £4.18m, with net expenditure in the period reducing from £2.6m in 2008 to £0.7m in 2009. This reduction in expenditure results from the focussing of the Group's activities on the MetaLeach technologies, which is a significantly lower cost business than the cash intensive mineral exploration activities previously undertaken.

In Argentina, following the effective closure of our operations, we have realised income for the period from the sale of assets of £86,000. In addition, our costs have fallen to a nominal level, albeit consistent with keeping our licences in good order. Separately, the Company is in negotiations about the possible cash sale of its Leon asset, which may or may not lead to a transaction.

Within administration, costs have been reduced wherever possible, such as the decision to prepare only electronic copies of the 2009 interim report, in order that the Group's cash balance can be focused on the commercialisation of the proprietary MetaLeach® mineral processing technologies.

Outlook

Since the end of the first quarter of the year, world financial markets have rallied strongly, including base metal prices, especially copper, as China adds to its strategic stockpiles. Notwithstanding the serious problems remaining in most Western World economies, the Company believes that the outlook for the international mining industry has greatly improved since the beginning of the year. Accordingly, it is in this environment, together with the excellent progress made to date, and the Company's sound financial health, that we are confident about Alexander's prospects and we look forward to reporting in due course.

Finally, as always, I would like to thank the Company's shareholders for their continuing support and our employees, directors, consultants and advisors for their dedicated hard work.

Matt Sutcliffe

Executive Chairman

29 September 2009

For further information please contact:

Martin Rosser Matt Sutcliffe
Chief Executive Officer Executive Chairman

Mobile: + 44 (0) 7770 865 341 Mobile: +44 (0) 7887 930 758

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 Adviser and Broker

John Prior/Alasdair Younie

Arbuthnot Securities Limited,

Arbuthnot House,

20 Ropemaker Street, London, EC2Y 9AR

Tel: +44 (0) 20 7012 2000

Public/Media Relations

Tim Blackstone

Britton Financial PR, 62 Britton Street

London EC1M 5UY

Tel: +44 (0) 20 7251 2544

Mobile: +44 (0) 7957 140 416
Consolidated income statement
Six months ended 30 Six months ended 30 Year ended 31
June 2009 June 2008 December 2008
£'000 £'000 £'000

Continuing operations
Revenue 95 - 12
Cost of Sales (13) - -
Gross Profit 82 - 12
Administrative expenses (558) (897) (1,618)
Exploration and development (134) (1,118) (10,575)

expenses
Research and development (167) (344) (597)

expenses
Operating loss (777) (2,359) (12,778)
Profit on disposal of fixed 84 - 22

assets
Exchange gain on liquidation - - 20

of subsidiaries
Impairment of available for - - (68)

sale financial assets
Investment income 20 198 749
Finance costs (79) - -
Loss before taxation (752) (2,161) (12,055)
Income tax expense - - -
Loss for the period (752) (2,161) (12,055)

attributable to equity holders of the parent
Basic and diluted loss per (0.56)p (1.61)p (8.96)p

share (pence)

Consolidated statement of other comprehensive income
Six months ended 30 Six months ended 30 Year ended 31
June 2009 June 2008 December 2008
£'000 £'000 £'000
Loss for the period (752) (2,161) (12,055)

Other comprehensive income
Exchange difference on (30) (18) 1,746

translation of foreign operations
Gain/(loss) on available for 19 (24) (22)

sale investments
Total comprehensive income for (763) (2,203) (10,331)

the period attributable to equity holders of the parent

Consolidated balance sheet
As at 30 June 2009 As at 30 June 2008 As at 31 December 2008
£'000 £'000 £'000

Assets
Property, plant & equipment 1 132 3
Intangible fixed assets - 7,179 -
Available for sale investments 51 98 32
Total non-current assets 52 7,409 35

Other receivables and 156 172 144

prepayments
Cash and cash equivalents 4,175 5,809 4,986
Total current assets 4,331 5,981 5,130

Total assets 4,383 13,390 5,165

Equity
Issued share capital 13,453 13,453 13,453
Share premium 11,850 11,850 11,850
Merger reserve (2,487) (2,487) (2,487)
Share option reserve 695 918 703
Translation reserve 1,359 (375) 1,389
Fair value reserve 19 (2) -
Retained losses (20,753) (10,413) (20,048)
Total equity 4,136 12,944 4,860

Liabilities Current liabilities
Trade and other payables 194 405 211
Provisions 6 - 38

Non-current liabilities
Provisions 47 41 56
Total liabilities 247 446 305

Total equity and liabilities 4,383 13,390 5,165

Consolidated statement of cash flows
Six months ended 30 Six months ended 30 Year ended 31 December 2008
June 2009 June 2008
£'000 £'000 £'000

Cash flows from operating activity
Operating loss (777) (2,359) (12,778)
Depreciation and amortisation - 9 15

charge
Impairment of property, plant - - 92

and equipment
Increase in other receivables (6) (21) (7)

and prepayments
Decrease in trade and other (58) (298) (329)

payables
Share option charge 39 31 75
Intangible fixed assets - 742 10,250

written-off or provided for
Net cash outflow from (802) (1,896) (2,682)

operating activities Cash flows from investing activities
Interest received 14 161 254
Interest paid - - -
Acquisition of property, plant - (7) (7)

and equipment
Acquisition of intangible - (911) (1,650)

fixed assets
Proceeds from sale of 86 - 40

property, plant and equipment
Net cash inflow/(outflow) from 100 (757) (1,363)

investing activities
Net decrease in cash and cash (702) (2,653) (4,045)

equivalents
Cash and cash equivalents at 4,986 8,442 8,442

beginning of period
Exchange differences (109) 20 589
Cash and cash equivalents at 4,175 5,809 4,986

end of period

Consolidated statement of changes in equity
Share capital Share premium Merger reserve Share option reserve Trans-lation reserve Fair value reserve Retained earnings Total equity
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
At 1 January 2008 13,453 11,850 (2,487) 1,005 (357) 22 (8,370) 15,116
Retained loss for period - - - - - - (2,161) (2,161)
Exchange difference on - - - - (18) - - (18)

translating foreign operations
Valuation losses on available - - - - - (24) - (24)

for sale investments
Total comprehensive income for - - - - (18) (24) (2,161) (2,203)

the period attributable to equity holders of the parent
Share option costs - - - 31 - - - 31
Share options cancelled in - - - (118) - - 118 -

period
At 30 June 2008 13,453 11,850 (2,487) 918 (375) (2) (10,413) 12,944
Retained loss for period - - - - - - (9,894) (9,894)
Exchange difference on - - - - 1,784 - - 1,784

translating foreign operations
Exchange differences - - - - (20) - - (20)

recognised in income statement in period
Impairment of available for - - - - - 2 - 2

sale investments recognised in income statement in period
Total comprehensive income for - - - - 1,764 2 (9,894) (8,128)

the period attributable to equity holders of the parent
Share option costs - - - 44 - - - 44
Share options cancelled in - - - (259) - - 259 -

period
At 31 December 2008 13,453 11,850 (2,487) 703 1,389 - (20,048) 4,860
Retained loss for period - - - - - - (752) (752)
Exchange difference on - - - - (30) - - (30)

translating foreign operations
Valuation gains on available - - - - - 19 - 19

for sale investments
Total comprehensive income for - - - - (30) 19 (752) (763)

the period attributable to equity holders of the parent
Share option costs - - - 39 - - - 39
Share options cancelled in - - - (47) - - 47 -

period
At 30 June 2009 13,453 11,850 (2,487) 695 1,359 19 (20,753) 4,136
Notes to the interim financial information

1. Basis of preparation

The interim financial information has been prepared on the basis of the recognition and measurement requirements of International Financial Reporting Standards (IFRS) as adopted by the European Union (EU) and implemented in the UK. The accounting policies, methods of computation and presentation used in the preparation of the interim financial information are the same as those used in the Group's audited financial statements for the year ended 31 December 2008 except for IAS 1 - Presentation of financial statements (revised), the adoption of which is mandatory for 2009. This new standard relates to presentation only.

The financial information in this statement does not constitute full statutory accounts within the meaning of Section 434 of the Companies Act 2006. The financial information for the six months ended 30 June 2009 and 30 June 2008 is unaudited. The comparative figures for the year ended 31 December 2008 were derived from the Group's audited financial statements for that period as filed with the Registrar of Companies. It does not constitute the financial statements for that period. Those accounts received an unqualified audit report which did not contain any statement under sections 237(2) or (3) of the Companies Act 1985.

2. Loss per share

The calculation of loss per share is based on a loss of £752,000 for the period ended 30 June 2009 (30 June 2008: £2,161,000; 31 December 2008: £12,055,000) and the weighted average number of shares in issue in the period to 30 June 2009 of 134,534,667 (30 June 2008 and 31 December 2008: 134,534,667). There is no difference between the diluted loss per share and the loss per share presented.

At 30 June 2009 there were 11,708,333 (30 June 2008: 13,858,333; 31 December 2008: 12,208,333) share options in issue that could have a potentially dilutive effect on the basic earnings per share in the future.

3. Post balance sheet events

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

IMSKGGZLZLLGLZM