7 November 2023

Anglo Asian Mining PLC

Agreement of environmental action plan

Company will now ramp up operations and resume normal production

Anglo Asian Mining PLC ("Anglo Asian" or the "Company"), the AIM listed gold, copper and silver producer focused in Azerbaijan, is pleased to announce that it has signed a protocol with the Government of Azerbaijan (the "Government") on an action plan (the "Action Plan") to implement certain enhancements to its operations and procedures. These measures were identified in the recent environmental audit carried out by Micon International Ltd ("Micon") at the behest of the Government. A summary of the main items in the Action Plan is set out in the Appendix below. It has been agreed with the Government that the majority of the items in the Action Plan will be implemented by the end of next year. None of the measures will involve the Company in significant expenditure.

As a result of signing the protocol and agreeing the Action Plan, the Company is now free to restart all its operations. The restart will be carried out in stages, and mining will recommence immediately. The Company's heap leach operations continued to operate throughout the recent partial shutdown, but without addition of ore. The restart of mining will enable fresh ore to be placed on the heaps so that production of gold doré, and copper concentrate from SART, will return to its former levels.

The Company's flotation plant will restart approximately 90 days before the wall of the existing tailings dam has been further raised. This is to utilise the remaining capacity of the existing tailings dam at its current height. Flotation will initially process ore mined from the Gedabek open pit, until higher grade ore becomes available from the new Gilar mine, which is expected to begin operation in H1 2024. The Company is now accelerating the development of Gilar. Agitation leaching will restart once the raise of the tailings dam wall is completed and high-grade ore is available from the Gilar mine. The Company is actively collaborating with the Government to implement any additional measures required in response to the Micon environmental report, to ensure the successful execution of the wall raise. The Company will update the market once a timetable for the wall raise has been settled.  

The Company maintains its Full Year 2023 production guidance of 30,000 to 34,000 gold equivalent ounces ("GEOs"), as announced in its 2023 Interim Results.

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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Appendix

Summary of the main environmental procedural and physical upgrades identified by the Micon environmental audit

1.   Improve environmental monitoring of the site.

2.   Install fencing and signage at various locations on site.

3.   Undertake a feasibility study for the alternative storage of tailings.

4.   Improve engagement with the local communities and establish a community relations department.

5.   Formulate and implement plans for a cyanide incident, spills and other emergency responses, and carry out drills with the local fire department and other emergency services.

6.   Update documentation and establish a database for environmental monitoring.

7.   Improve the handling and storage of reagents and other chemicals.

8.   Review all equipment guards at site.

About Anglo Asian Mining

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

On 30 March 2023, the Company published its strategic plan for growth which shows a clearly defined path for the Company to transition to a multi-asset, mid-tier copper and gold producer by 2028, by which time copper will be the principal product of the Company, with forecast production of around 36,000 copper equivalent tonnes. It plans to achieve this growth by bringing into production four new mines during the period 2024 to 2028 at Zafar, Gilar, Xarxar and Garadag. 

The Company owns approximately 17.4 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. 

https://www.angloasianmining.com/