3 July 2024

Anglo Asian Mining plc

Amendments to its Production Sharing Agreement

Anglo Asian Mining plc ("Anglo Asian" or the "Company"), the AIM listed gold, copper and silver producer focused in Azerbaijan, is pleased to announce amendments to its production sharing agreement ("PSA") held by its subsidiary, Azerbaijan International Mining Company Limited ("AIMC"). The current local party, the Ministry of Ecology and Natural Resources ("MENR"), is to be replaced by AzerGold Closed Joint Stock Company ("AzerGold"). Minor amendments have also been made in respect of the use of facilities for the Kyzlbulag, Demirli and Vejnaly contract areas.

The original PSA was signed by the predecessor to the MENR. This was due to there being no state body in Azerbaijan operating in the mining sector at the time. Since the signing of the PSA, AzerGold has been established to undertake development of the mining sector in Azerbaijan.

Usual business practice in Azerbaijan is for state organisations that operate in the relevant sector to be the local parties in production sharing agreements. This enables them to assist the development of the activity of the production sharing agreement and the relevant business sector. It is therefore natural that AzerGold now becomes the local party to AIMC's PSA, since AzerGold has more operational mining experience than the MENR.

The revised PSA also includes a revision to the "Use of Facilities" article within the PSA. This has been amended to allow AIMC the right to use all mining workings, drill core, machines and other equipment present within the Kyzlbulag, Demirli and Vejnaly contract areas at the date of the handover of those contract areas to AIMC.

A law to replace MENR with AzerGold has recently been ratified by the Milli Majlis, the Azerbaijan Parliament. It has now been signed by the President and will be adopted into the laws of Azerbaijan.

Reza Vaziri, Chief Executive Officer of Anglo Asian Mining, commented:

"These amendments provide a considerable benefit to Anglo Asian Mining, as the Company will now work with AzerGold on exploration, development and mining projects under the production sharing agreement. AzerGold fully understands the mining sector in Azerbaijan, including the obtaining of permits and associated governmental procedures. We look forward to continuing to develop the portfolio with the support of  AzerGold, while maintaining our strong relationship with the MENR."

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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Notes to editors

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 31,821 gold equivalent ounces ("GEOs") for the year ended 31 December 2023. 

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. 

https://www.angloasianmining.com/