23 February 2023

Anglo Asian Mining PLC

2023 Production Guidance

63 to 71 per cent. forecast increase in copper production

Anglo Asian Mining PLC ("Anglo Asian" or the "Company"), the AIM listed gold, copper and silver producer primarily focused in Azerbaijan, is pleased to announce its production guidance for the full year 2023 ("FY 2023"). The Company is forecasting to produce between 50,000 and 54,000 gold equivalent ounces comprising 4,100 to 4,300 tonnes of copper and 30,000 to 32,000 ounces of gold.

2023 is a pivotal year for Anglo Asian as it begins its transition to achieve significant copper production with the opening of its new Gilar and Zafar mines and the delivery of the increased capacity of its flotation plant. Copper production is forecast to increase by 63 to 71 per cent. and gold production to decrease by 26 to 30 per cent. This is in accordance with the Company's growing focus on copper, capitalising on the global decarbonisation agenda. More information about Anglo Asian's medium-term growth strategy and its increasing focus on copper will be announced later this quarter.

FY 2023 production guidance is as follows:

Note the Company does not forecast silver production as it is not material.

The gold equivalent ounces have been computed using the following budget rates:

Production plan for 2023

The Company's production profile will change significantly in 2023 as copper becomes a greater proportion of its production:

·    The agitation leaching plant will operate on a "campaign basis" during the year, processing mainly gold rich ore from Gedabek open pit and underground mines. There is a diminishing amount of ore suitable for agitation leaching at Gedabek. Additionally, it is more commercially advantageous to use the plant's crushing and grinding circuit to treat ore for the expanded flotation plant.

·    As previously announced, capacity at the flotation plant will double in 2023 as a result of investment of approximately $3 million.

·    Copper rich ore from the Gedabek open pit will be used as feedstock for the flotation plant during 2023. From Q4 2023, Gilar ore will also be processed and its gold content extracted by agitation leaching.

·    The Zafar mine will be constructed in 2023, but ore extraction will not be required to maintain the operation of the flotation plant at its maximum capacity during the year. Production in 2023 will be maximised by processing Gilar ore which also contains gold.

·    Only a very minimal amount of ore will be processed from the Vejnaly and Gosha mines in 2023. The recent decision to fast-track the Gilar mine into production has required redeployment of resources away from these two projects.

Outlook for 2024

The Company will start 2024 with a flotation plant with double its original capacity and the Gilar and Zafar mines ready to provide the ore feedstock. This will enable to Company to produce copper in 2024 at the same or greater rate than 2023. The Company also anticipates increased gold production in 2024 in anticipation of a full year of production from Gilar. Drilling and resource estimation for Gilar will continue during 2023, expanding upon the already known resources recently reported.

Reza Vaziri, CEO of Anglo Asian, commented:

"2023 will be a critical year for Anglo Asian as we pivot the Company towards copper. We remain focused on production in the short-term, creating value for our shareholders, as well as finalising our medium-term growth strategy that culminates in our transition to a mid-tier production profile. We look forward to releasing this later this quarter."

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014, which was incorporated into UK law by the European Union (Withdrawal) Act 2018, until the release of this announcement.

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About Anglo Asian Mining

Anglo Asian Mining plc (AIM:AAZ) is a gold, copper and silver producer in south-west Asia with a broad portfolio of production and exploration assets in Azerbaijan. The Company produced 57,618 gold equivalent ounces ("GEOs") for the year ended 31 December 2022.  

In December 2021, the Company undertook a private placement which acquired 19.8 per cent. of Libero Copper & Gold Corporation ("Libero"). Libero is listed on the TSX Venture Exchange in Canada and owns, or has the option to acquire, several copper exploration properties in North and South America, including Mocoa in Colombia, one of the world's largest undeveloped copper-molybdenum resources. Two further follow-on investments have been made in Libero to maintain the Company's shareholding at 19.8 per cent.

On 5 July 2022, the Parliament of Azerbaijan ratified amendments to the Company's Production Sharing Agreement, which granted it legal title to three additional concessions with a combined area of 882 square kilometres, including the Garadagh porphyry copper deposit, with a Soviet classified resource of over 300,000 tonnes of copper. https://www.angloasianmining.com/