NOT FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, TO U.S. NEWSWIRE SERVICES OR IN THE UNITED STATES OR IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION.

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS DEFINED IN REGULATION NO. 596/2014 (AS IT FORMS PART OF RETAINED EU LAW AS DEFINED IN THE EUROPEAN UNION (WITHDRAWAL) ACT 2018) AND IS IN ACCORDANCE WITH THE COMPANY'S OBLIGATIONS UNDER ARTICLE 7 OF THAT REGULATION.

 29 June 2022

EURASIA MINING PLC

("Eurasia" or "the Company")

Annual Results and Notice of AGM

Eurasia Mining Plc ("Eurasia" or the "Company"), the palladium, platinum, rhodium, iridium and gold producing company today reports its audited financial results and operational summary (the "Annual Report") as well as a notification of the Annual General Meeting (the "AGM"), to be held on 28 July 2022, at 9am Etc.venues, 8 Eastcheap, London, EC3M 1AE, and virtually via an electronic meeting platform, more details can be found in the complete notice of AGM below.

Christian Schaffalitzky, Executive Chairman commented: "We are pleased to provide our annual report and accounts for 2021, an important year in the Company's development. We welcome new additions to our team at Board level and the opportunities provided by our geographic and commodity diversifications as discussed in more detail in our annual report. We also recently welcomed KPMG on board as agent within Russia to progress our asset sale strategy."

James Nieuwenhuys, Chief Executive Officer commented: "Operationally the West Kytlim asset is performing well following a successful winter stripping programme and a subsequent increase in stripping capacity. As discussed in our Operational Reports the mine is expected to make the switch to hydro-generated grid power later this season and the use of electric draglines, both important developments for sustainable platinum group minerals and gold production through life of mine. I look forward to providing shareholders with further updates regarding progress during the second half of 2022."

Audited Group Reporting for the year ending 31 December 2021

The Company's full Annual Report including the audited financial statements to year end 31 December 2021 are set out below and will be posted, along with notice of AGM and form of proxy to those of our members electing to receive paper format notifications. The Company is grateful to the remainder of our shareholders choosing to receive digital notifications and the report is also available for download from the Company's website at;   https://www.eurasiamining.co.uk/investors/financial-reports.

The Company would like to remind shareholders that they may sign up for digital notifications, and help to reduce the number of paper reports printed and posted, by logging on to www.signalshares.com to amend communications preferences. An Investor Code is required for initial registration. Alternatively, you can call the Company's registrar, Link Group, on 0371 664 0300 (calls are charged at the standard geographical rate and may vary by provider) or +44 371 664 0300 if calling from overseas. You can also write to Link Group at 10th Floor, Central Square, 29 Wellington Street, Leeds, LS1 4DL.

ENQUIRIES:

Eurasia Mining Plc

Christian Schaffalitzky/ Keith Byrne

+44 (0) 207 932 0418

SP Angel Corporate Finance LLP (Nomad and Joint Broker)

David Hignell / Adam Cowl / Jeff Keating

+44 (0)20 3470 0470

Optiva Securities (Joint Broker)

Christian Dennis

Tel: +44 (0) 20 3137 1902

Chairman's statement

I am pleased to write to you to summarise 2021, the year in which your Company not only consolidated its Battery Metals and PGM assets but added additional Battery Metals to the mix. In parallel, we expanded our business strategy to fully grasp the ambitions of the 'Green Economy' by exploring the potential for Hydrogen to be included in our future developments.

During the past year, our West Kytlim project saw a doubling of mine production and the development of plans for further expansion, focused on replacing diesel power with grid electricity from 100% green hydro sources. Looking forward into 2022 and for subsequent years, we expect to see a further expansion of production with this conversion scheduled for the second half of this year.

Our flagship Monchetundra project centred on our Battery Metals and PGM mine developments in Kola was further strengthened with the addition of new exploration licences, granted exclusively to the Company. This embraced the relaunch plan of the NKT nickel dominant mine which immediately became the focus of detailed assessment by our team and our technical consultants, Wardell Armstrong International. This confirmed that significant nickel sulphide ores remain, and we are now working on integrating their development with our existing Battery Metals and PGM reserves, located next door.

The further expansion of nickel and copper in our existing metals basket allows us to develop the mix of outputs from the Company's project portfolio as Battery Metals, which can be supplied into the growing demands of the modern world. We expect Kola to be a key area for future supplies of these critical metals and our projects should benefit from 'first mover' advantage around the well-established refinery city of Monchegorsk. This first mover advantage has also been further upgraded with our agreement with Rosgeo, which holds other interests in the immediate area which our project can potentially include.

While we expect these developments to add value to these projects, we have not lost sight of our principal strategy, which is to focus on maximising shareholder value, primarily through a sale of assets, for the benefit of our shareholders. Active discussions with interested parties continue, and will be pursued with patience and care, against the background of the now more complex and changed geopolitical landscape. The Company recently appointed KPMG as agent within Russia to further this strategy and although there can be no guarantees, we remain confident of a positive outcome from these discussions.

Apart from the progress on the ground, we strengthened the Company's balance sheet by way of two financings through private placements with institutional investors raising gross aggregate proceeds of US$35 million (circa £28 million). This has allowed us to make careful investments in developing our assets and also has given us flexibility in our approach to facilitating diversification in the future.

We also enlarged our Board with the addition of two new Asia-based directors: Tamerlan Abdikeev and Kotaro Kosaka, who play a key role in our Hydrogen strategy, and, more recently, the appointment of Artem Matyushok, an experienced M&A and Hydrogen industry professional post year end. On your behalf I welcome them to our team, as well as new management and employees at West Kytlim and Kola.

In conclusion, we are confident of achieving additional milestones during the remainder of 2022. We are well equipped for the challenge, and I look forward to working towards our goals in the coming months. I want to thank sincerely all my colleagues on the Board, the management and staff in Russia for maintaining our progress over the last year. In particular I wish to thank Alexander Sushchev, metallurgist and advisor to the Board, who is retiring this month from the Company. He has played a key role in the development of our Kola projects and has agreed to provide occasional advice as needed.

With continued strong support from the team, I am confident the Company can continue to build and strengthen the foundations for our future success.

C. Schaffalitzky

Executive Chairman

Strategic Report

Operations update

Eurasia Mining Plc is a producer of palladium, platinum, rhodium, iridium and gold and a battery metals exploration and development company. The Company recognised that a switch to electricity from hydro sources as the main energy source for ore body development and beneficiation at the West Kytlim Mine would considerably improve the project's overall sustainability and environmental credentials, while also improving on project efficiencies and costs. An electric dragline is being assembled on site at West Kytlim for commissioning later in the 2022 mining season.

The Central Kola Peninsula cluster of Battery Metals (predominantly Nickel and Copper) and PGM projects are being developed around the Company's fully permitted flagship NKT relaunch Project adjacent to the town of Monchegorsk, home to the world's largest nickel and PGM processing facility - Norilsk's Severonickel. Total of 184.6Moz of Platinum equivalent resource provides for a new centre for global battery metals and PGM production on Kola.

Both West Kytlim and Monchetundra are based on the Company's own exploration discoveries and have been successfully advanced through the exploration phase to the issue of production licenses. The Company demonstrates a consistent approach to driving shareholder value by bringing quality projects from exploration through to production.

Eurasia is an international mining company with offices in London (UK), Monchegorsk and Yekaterinburg (Russia), as well as Tokyo (Japan).

WEST KYTLIM

Producing Open Pit PGM mine in the Ural Mountains with a sustainability focus - long term target of the world's greenest, i.e., lowest carbon PGM ounces.

Sustainable Mining

·      Reduced environmental impact compared to conventional mining methods, and less long-term environmental impact - no blasting on site and no chemicals used in the production process.

·      Shallow open pits remediated immediately with recovery within 5 to 10 years and with no remnant pit or tailing dumps. Allows the Company to make provisions for remediation on realistic time scales, as opposed to larger scale operations with remediation at the end of a 20+ year Life of Mine.

·      Hydro generated electricity as the dominant energy source for ore body development and beneficiation from 2022 to the end of mine life.

·      Careful management of water resources at the mine site by water recycling.

·      Limiting the use of asphalt and concrete on site, many mine buildings built from timber milled on site.

2021 Highlights

•      1,350,000 cubic meters of overburden stripped (November 2020 to 31 October 2021) at the Kluchiki and Bolshaya Sosnovka sites

·      463,500 cubic meters of gravel washed (20 April to 30 October 2021)

·      2.3 times increase in raw platinum production; 3,643 oz (2020 - 1,525 oz)

·      COVID response ensured no ongoing impact on operations.

·      Significant upgrades to mine fleet as well as mine site buildings and infrastructure

·      West Kytlim Flanks license approved and received

·      Commenced exploration at the Typil site.

·      Continuing to work and build relations with local community by making equipment available in the town of Kytlim when en route to site.

Stripping work continued through the winter of 2020/21 and gravel washing commenced as running water became available in mid-April. Two washplants were operated initially and a third added in August treating ores from the Bolshaya Sosnovka and Kluchiki ore bodies. Each of the three washplants operate on similar process flowsheets - PGM and gold bearing gravels are trucked from surface pits to the washplant site where they are loaded to a scrubber and trommel. Oversized material is removed as sediments are disintegrated using pressurised water jets. Water, clay, sand and nuggets of PGM are then entrained in a water column which is transferred to a sluice where the components separate under gravity with the higher density material collecting on sluice mats. These are then emptied daily, and the material collected for upgrading at an onsite laboratory. Further processing at the onsite laboratory includes shaking tabling, gravity concentration and hand picking to produce a 'black sand' concentrate as the mine's product. Weekly shipments of batches of mine product are sent for further refining under our agreement with the Ekaterinburg precious metals refinery.

Exploration upside - Typil and West Kytlim Flanks

'Field exploration work at Typil commenced in August 2021 with reconnaissance and mapping accompanied by stream sediment sampling. Both banks of the Kosva River have been worked, at the inflows of the Typil and Kyria Rivers and in the area of the Typilez Creek. 12 samples have shown presence of platinum and gold.

Land surveying was carried out to allow the planning of drilling traverses. Drilling then commenced in March 2022 in the area around the inflow of the Typil River and the adjoining part of the Kosva River valley. 3 traverses totaling 39 holes and 273 meters have been drilled for a total of 426 samples. The average depth of the holes is 3-4 meters, maximum - 11.5 m.

Drilling intersected alluvial sediments of the Kosva and Typil terraces, 6-7 meters thick, and pre-Quaternary (assumingly Neogene) sediments up to 5 m thick. Neogene sediments are a key resource in ore bodies on the current mining license. At the time of writing, drilling was ongoing, and samples were being washed in a Kosvinsky Kamen field laboratory.'

Pavel Telegin, Head of Exploration, Kosvinsky Kamen.

West Kytlim powerline, site electrification and e-draglines

Work on project design, appointment of contractors and sourcing long lead time supplies for the power line to be constructed to site at West Kytlim commenced in Q3 and Q4 of 2021. The route to site follows the path of a now disused power line which had been used to power dredges operational in the area in the 1960's and '70's. Chief contractors are OboronEnergo providing the connection to the main grid which derives power from the Perm Oblast via several hydro-electric plants. OOO ELS were contracted for technical documentation and project design and installation works. By the end of May 2022, 10 km of a total 17 km of the route have been completed as well as the necessary substations at site. Grid power is expected to be available at the mine site later this year. Total costs for the project are estimated at $1.5m. The power line provides a significant cost saving on diesel powered machinery owing to the considerably greater productivity of draglines when compared to an excavator and bulldozer combination.

2022 Highlights in the year to date

•      Dragline 1 components delivered to site for assembly and commissioning.

·      Powerline and substation construction underway with expected commissioning in Q2 2022

·      No impact of sanctions on operations

·      Further additions to on site fleet including 5 new Kamaz ore haulage trucks as well as six Caterpillar excavators, a Cat D8 bulldozer and two Komatsu D275 bulldozers

·      Stripping capacity increased to a current record of 300,000m³ per month (first achieved in March 2022)

·      Third washplant is now operational at site- two plants running at Bolshaya Sosnovka currently, and a third plant at the Kluchiki area.

Following a successful year-round overburden stripping programme focussed on the Kluchiki and Bolshaya Sosnovka areas, washing of gravels commenced around end-April as running water became available at site. Winter stripping operations were maintained on a schedule optimised to ensure supply of gravels to three washplants throughout the 2022 washing season. The mining permit for the 2022 mining season was submitted in March 2022 and approved by the local ministry for subsoil use in mid-April. All other necessary permits including forestry permits were in place by the end of March.

The mine will operate three washplants throughout the 2022 mining season, two at Bolshaya Sosnovka and one at the Kluchiki area. All three plants, owned and operated by Eurasia, were operational by the end of April 2022. Directors consider the current outlook for the 2022 season to be favourable, given relatively strong metal prices, greatly increased productivity, an experienced work force at site as well as a full set of mine and forestry permits in place.

KOLA BATTERY METALS AND PGM

World class Nickel-Copper and PGM project on the Kola Peninsula is a cornerstone to a proposed new open-pittable Battery Metals and PGM mining district. A joint-venture framework agreement with Rosgeo was announced in March 2021.

Monchetundra - 2021 Highlights

·      Definitive Feasibility study on schedule for submission in 2022.

·      Wardell Armstrong International engaged for various comprehensive studies on Eurasia and its projects (also the ones included in the agreement with Rosgeo), i.e. JORC standard MRE reporting and NPV analyses.

·      Recalculation of MT and Flanks resources and pit outlines, reflecting metal price increase since Feasibility study of 2016.

·      Recognition of NKT as a Nickel dominant mine relaunch opportunity, as a standalone project or integrated with Monchetundra.

A new mining-focused CEO was appointed at Kola subsidiaries level in July 2021 as the Group seeks to develop the options available at Monchetundra, the Monchetundra Flanks, NKT and projects within the Rosgeo agreement. The Monchegorsk area is quite unique globally in having high levels of extensive previous exploration and reporting, and numerous deposits of a similar deposit style and metallurgical type in both the Monchegorsk and Monchepluton Massifs, directly adjacent to a major infrastructure corridor and in a mining friendly jurisdiction. This has created a large body of work by previous explorers and producing mines, state funded and private.

The focus at Monchetundra during 2022 has been on the analysis of this catalogue of projects - the Kola Battery Metals and PGM projects. The task for Eurasia and its subsidiaries has been in identifying the most sensible and economic means to schedule project development, within the context of the Rosgeo agreement and as independent projects. Wardell Armstrong International have been appointed as chief mining consultants to manage the reporting process in some cases undertaking new resource calculations.

Two new subsidiaries were created in the Group in January and February 2022 as Kola Nickel and Kola Mining, both 100% owned. Having these two subsidiaries available allows the Group flexibility in how it manages and markets the various multi-commodity deposits and licenses within the Kola Battery metals and PGM projects.

NKT PROJECT - Base metal mine relaunch adjacent Monchetundra projects

Tier-1 scale Nickel deposit with JORC MRE containing: 305Kt Nickel, 143Kt Copper, and 57 tonnes PGM and Gold (11.2Moz of Platinum equivalent) estimated by Wardell Armstrong International (WAI) as JORC-compliant resources for a step room and pillar mining operation, with nickel comprising half of the value in the metal basket on a Net Smelter Royalty basis.

The project occurs directly adjacent to Severonickel, the world's largest nickel processing plant and is a mine formerly operated by Norilsk. A recent exploration and diamond drilling campaign was undertaken by Rosgeo during 2015 to 2017, building on an already significant catalogue of exploration and mining data from predecessors.

During 2021 work commenced on analysis of options for reopening the mine. Eurasia's West Nittis deposit occurs at the south-west extension of the NKT deposit. The current development programme is based on extension of West Nittis type mineralisation throughout the NKT massif with treatment at the Monchetundra deposit process plant. A full independent technical review, mine plan and mineral resource estimate was undertaken by WAI during 2021, as presented in the adjacent table.

During 2022 drilling commenced to the east and north of the West Nittis deposit targeting extensions to the West Nittis ore body within the NKT Massif. Historical drill core from Norilsk/ Severonickel drilling prior to 2015 did not include an assay for PGM and the Company has undertaken to complete this work with an expected improvement in reliability of confidence levels and therefore resource classification.

Key performance indicators

Results for the year - the Group has made a loss before tax of £3,138,521 for the year ended 31 December 2021 (2020: loss before tax of £3,693,308).

Shareholder return - the performance of the share price. The Company's shares are quoted on AIM and the shares have traded at 15p-36.5p*(2020: 3.3-42.5p) during the year under review. A range of factors both internal and external to the Company can impact share price performance, including geopolitics, commercial and new business developments, operational performance and metal price and metal price forecasting fluctuations.

Exploration and development funding and expenditure

The Group was successful in securing the necessary funding to develop and expand operations at both projects during the year reported. In 2021, the Group acquired additional plant and equipment mainly for West Kytlim Mine with a total value of £622,745 (2020: £338,237); The Group also incurred £64,371 (2020: £118,654) of development costs at West Kytlim, including ore body development costs during and after the production season.

A feasibility study for the Monchetundra project was advanced during 2021.

In 2021 the Group raised gross funds of $35 million (2020: £7.9 million) from equity markets through two placings lead by H.C. Wainwright & Co. No options or warrants were exercised in the period reported. At 31 December 2021 the Group had a cash balance of £22,009,507 (31 December 2020: £5,404,101) which allowed it to continue development programmes at all projects. During 2020 the Group acquired some mining equipment under five-year lease terms. The balance of existing lease commitments for machinery for the West Kytlim operation at 31 December 2021 was £429,543 (31 December 2020: £526,930).

For more details see the operations update herewith.

^{*Based on yahoo finance historical data of Eurasia Mining Plc (EUA.L) closing prices for 01 January 2021 to 31 December 2021}

Non-financial KPIs

Environmental management - the Group has environmental policies in place and receives annual approvals for development work at West Kytlim, where adherence to the relevant environmental subsoil licensing laws is clearly stipulated. Performance against environmental policies is continuously monitored and annually audited including a provision for environmental rehabilitation. The Company is responsible for the technical and biological rehabilitation of disturbed areas, as discussed in the environmental section in this report. Rehabilitation plans are subject to approval prior to commencing mining, on a site-by-site basis. The Directors consider that rehabilitation plans are achievable with some involvement of external specialists to minimise and rectify any negative impact of current exploration and operational activities on the environment. Further details may be found in the operational update and ESG section herein.

Health and Safety - the Group has occupational health and safety policies and procedures in place ensuring that all efforts are made to minimise adverse personal and corporate outcomes, through best practice training, implementation, and monitoring. These were reviewed following the COVID-19 pandemic and have been appropriately upgraded commensurate with the expansion of the operation of West Kytlim which now includes electric power and large draglines. The Group's Lost Time Injury Frequency remains at zero for the 2021 year and 2022 season to the end of May.

Operational - The Group has had operational success in effectively managing the mining operation at West Kytlim through 2021. The Group has also successfully managed a programme of works at the Kola projects and has continued to manage applications for new exploration license tenements in the Monchegorsk area.

Governance - The Board has appointed two new non-executive Directors during the year in review; Tamerlan Abdikeev in April 2021 and Kotaro Kosaka in December 2021. Tamerlan is also representing the Company as head of the Company's emerging Asia focussed interests and Japanese representative office where he is joined by Kotaro Kosaka. Independent non-executive Director Kotaro strengthens the Company's representation in Asia and the Far East markets.

Artem Matyushok was appointed to the position of independent non-executive Director in May 2022. Artem brings experience in and in-depth knowledge of high-level Mergers and Acquisitions transactions and expertise in the hydrogen sector. Artem is a director of H4Enegy Joint Stock Company ("H4Energy"), which entered into an agreement with the Company on 30 December 2021 to assist Eurasia in finding joint venture partners ("JVs"), the ultimate aim of which JVs would be to secure off-take for Eurasia's metal production and associated financing, which could be used for the development of the Company's metal production and use of hydrogen in its operations.

The Board does not regard the agreement with H4Energy to be material at this time and neither Artem nor H4 Energy has received or receives remuneration from Eurasia as a consequence of this agreement. Accordingly, the Board does consider that Artem's independence is not impugned by the agreement between the Company and H4Energy.

Additional Projects and license applications - Key personnel continued to assess opportunities in a range of commodities in Russia and globally, as potential exploration and development projects. The Company has broadened its interests geographically through 2021 and is also targeting commodity diversification through its strategies in battery metals and the hydrogen economy.

Principal risk and uncertainties

The risks inherent in all mineral exploration and development businesses are kept under constant review by the Board and the Executive Team. The risks affecting the Group and the Company are set out respectively in the Directors' Report. The principal operating risks affecting the Group are highlighted below.

Exploration and project development risks

Inherent risks associated with the failure to discover or develop an economically recoverable ore reserve, to conclude a definitive feasibility study, or to obtain the necessary consents and approvals to conduct exploration and mining. The Board impresses on senior management the need to identify and address the major sources of operational risk in any development project, and to continuously monitor deviation from schedules or targets.

Operating mine risks

Machinery availability, deviations from expected grade and other operational risks may have a significant impact on West Kytlim mine revenue, which is a component of the Group's financial capacity and performance.  At West Kytlim, multiple areas are developed concurrently to mitigate risks of a lower than expected grade at any location. Most of the machinery in the West Kytlim mine fleet is relatively new, having been acquired from 2019-2022 onwards and currently operate at very high availability levels.

Political risk and sanctions compliance

The Group's assets are located in Russia. In view of sanctions imposed on identified individuals and entities in Russia, from 2014, legal and economic risks may arise. Further sanctions were imposed on certain activities, entities and individuals connected with Russia in 2022, which continue to evolve, which are being carefully monitored by the Group in accordance with the Company's sanctions compliance policy, and with the assistance of its external legal advisers. The Company has satisfied itself that neither of its current activities at the West Kytlim Mine or on the Kola Peninsula are prohibited under UK or EU sanctions rules. Furthermore,  the Group does not engage and has not engaged with any sanctioned persons/ entities or agencies.

To date there has been no significant impact on the Group's activities as a result of recent updates to the UK and EU sanctions legislation. Sanctions introduced by the Russian Federal government have also not affected the Group, although this is being closely monitored. The Group closely monitors all regulatory requirements and changes to the laws, rules and regulations, taking steps whenever necessary to ensure compliance with new legislation.

Environmental risks

The Group's operations are subject to environmental regulation, including environmental impact assessments and permitting. Russian environmental legislation comprises numerous federal and regional codes. The Group makes an assessment of the environmental impact of any of its activities at the time it applies for the relevant permits and licences. Review and approval of the rehabilitation plan is a pre-requisite of the mine plan approval for each season of mining at the West Kytlim mine. The Group mitigates risk to the operation arising from environmental issues by strictly adhering to relevant environmental laws and codes. The West Kytlim mine by its nature does not require management of hazardous mine tailings within a tailings dam, as is necessary for large scale underground mining operations.

The regulatory environment

The Company's and the Group's activities are subject to extensive federal and regional laws and regulations in Russia governing various matters, including licensing, production, taxes, mine safety, labour standards, occupational health and safety and environmental protection. They are also subject to various UK and international regulatory requirements. Amendments to current laws and regulations governing operations and activities of mining companies, or more stringent implementation or interpretation of these laws and regulations can have a material adverse impact on the Group and/or delay or prevent the development or expansion of the Group's assets in Russia.

The Group closely monitors all regulatory requirements and changes to the laws, rules and regulations taking steps whenever necessary to comply with relevant regulations. The Board considers the regulatory environment for mining companies operating in Russia to be transparent, not more difficult than other jurisdictions, sufficiently clear and prescriptive and in general navigable for a company employing sufficient expertise and resources to manage that aspect of its business.

The Group has entered into an agreement with Rosgeo, an exploration and development company with unparalleled expertise in the Russian mineral and subsoil licensing regulatory framework as well as an agreement with the Far East and Arctic Development Corporation both of whom may provide advice and guidance on the Russian regulatory environment as it pertains to mining and development companies.

The Group maintains close ties to the Russian Minerals extraction industries for example by attending industry events with its mining peers and by maintaining in house expertise in sub-soil legislation.

Commodity market risk

A potential fall in commodity prices could result in it becoming uneconomic for the Group to mine its assets. A Russian rouble (that is highly dependent on the prices of natural resources) devaluation against USD (as has occurred in Q1 2022) provides a natural hedge against a potential fall in commodity prices as the Company's costs are Russian rouble denominated while commodity prices are USD denominated. The Group closely monitors the markets for platinum group metals (and the prices of other relevant metals to the extent these are relevant), changes in their demand and supply, and the effect these have on metal prices, with a view to taking necessary measures in response to such changes.

The Group has pursued commodity diversification in targeting battery metals through its agreement with Rosgeo, adding additional nickel and copper as well as cobalt potential to its interests, and adding hydrogen and ammonia interests through its agreement with H4Energy and the establishment of its representative office in Japan.

Demand for platinum group metals from their principal use in autocatalysts, which reduce harmful engine emissions, is perceived by market commentators to remain strong for the foreseeable future as electric vehicle uptake is offset by tighter emissions control for traditional internal combustion engine vehicles, and as PGMs continue to find application in emerging transport technologies such as Fuel Cell Electric Vehicles.

Loss of key personnel risk

The loss of key personnel consists of the departure (voluntary or otherwise) of an important employee, which would, in all likelihood, result in a loss of management capacity or specific expertise capacity, or increased expense to the business, for a period. In general, any loss of management capacity or expertise can be replaced by recruitment of personnel who are readily available from the market, while the financial impact may be of a temporary or a permanent nature. These increased expenses relate to the search for and hiring of a new employee, training costs for the new hire, possible "sign on" bonus and higher remuneration packages. However, such increase (if any) is not expected to be material.

The Group takes measures to motivate and retain existing employees, including by bonus incentive schemes as well as participation in the Company's share and option scheme. Currently there is no shortage of mining industry personnel and expertise in Russia or London, and the Group is confident that a suitable replacement could be found should it be necessary to replace any key member of staff.

Financing risk

The West Kytlim mine is expected to become a material contributor to the Group's working capital, and the Directors are confident that this source of capital can be increased considerably from 2022 onwards due to increased capacity at the mine site, thereby mitigating financing risk to the Group. At the current time, West Kytlim contributes an important but not critical component to the Group's working capital. Historically, the Group has successfully relied on international equity and, to a lesser extent, debt capital markets to create and maintain adequate levels of working capital, and these financial resources will be supplemented by revenues from West Kytlim as and when they arise. The Group maintains tight financial and budgetary controls as well as cost control, and forward planning helps ensure the Group is adequately funded to reach its objectives. Two significant equity placings were undertaken in May and September 2021 raising a total of $35m and the Directors consider the Group to be well funded for its short and medium-term objectives.

The Board considers risk assessment to be vitally important in achieving its strategic objectives.

Pandemic risk

The effects of COVID-19 and any future pandemic, and measures taken globally to protect populations, can have a direct or indirect impact on the Group's operations. The Company continues to monitor the situation and will continue to take the required actions, including consultations, reviews and tightened expenditure controls as appropriate. Many of the Group's staff and families who were affected have now recovered from coronavirus and despite a continued threat globally it appears that the overall impact on the Group will be insignificant.

There was no operational downtime through the 2020 or 2021 mining seasons, and no impact at the time of writing on the 2022 mining season from the COVID-19 pandemic. The limited number of employees, the open pit nature of the mine site, and the employees' ability to naturally social distance using single cab mining equipment remains a considerable benefit to the operations. The Group recognises an ongoing risk to the operations from the COVID-19 pandemic and future pandemics.

Research and future development

The Group's activities during the year continued to be concentrated principally on mine development and mineral exploration programmes, and the improvement of mining techniques and metallurgical processes. While developing its core projects disclosed in the Operations Update the Company will continue to study and search for new "near production" projects in the geographical area where its current operations are situated. This has been demonstrated by the signing of the Rosgeo agreement, securing a pipeline of new Battery Metal and PGM projects aimed at realising a new PGM mining district on the Kola Peninsula and by the establishment of a representative office in Japan as a base from which to generate new business opportunities in the Far East. The Group is developing strategies in the energy sector through its interest in hydrogen and ammonia production as evidenced by an agreement signed with H4 Energy in December 2021.

Brief summary of the Group's current operations

The Group operates in 2 key regions of Russia: (1) The Urals, where West Kytlim is an operating PGM and gold mine in the Central Urals; and (2) Kola Peninsula, where a mining licence was granted in 2018 and the agreement with Rosgeo was signed in 2021 to create a pipeline of additional projects. At the same time, the Group continues to assess the potential of other resource and energy projects internationally.

At West Kytlim, the Group carried out pilot mining operations in 2016 and has been running a commercial operation since 2018. The mine has been expanded efficiently with a phased roll out of new machinery added through successive mining seasons in line with streamlined statutory reporting requirements and mineral reserve and resource reporting (see operation update section for further details).

West Kytlim mine is directly owned by ZAO Kosvinsky Kamen in which the Group has a 68% stake. On the Kola Peninsula, the Group's discovery of PGM mineralisation in the Monchetundra area led to submission of a feasibility study, on completion of exploration work in 2016. A mining permit was subsequently granted in 2018 for two open-pittable ore bodies at Loipishnune and West Nittis. The Monchetundra project is owned by ZAO Terskaya Mining Company, in which the Group has an 80% stake (note 16). More details on both projects are contained in the Operations Update.

The Board's aim is to deliver value to the Company's shareholders by leveraging the significant experience of the Directors and management team to develop the Group's projects. The Board is also focused on maximising shareholder value and continues to consider the potential for a sale of the Company's assets.

The Board acknowledges that there is a legal requirement for the Company to report on how the Board and its Committees have considered the requirements of Section 172 of the Companies Act 2006 in their decision making. A director of a company must act in the way he considers, in good faith, would be most likely to promote the success of the Company for the benefit of its members and, in doing so, have regard (amongst other matters) to the following factors:

The likely long-term consequences of any corporate action or decision

The Board takes a long-term approach to creating and realising value for the shareholders and is keenly aware of the time scale on which resource projects are developed. This is reflected in the age of the Company itself (it was incorporated in 1995) and the tenure of some of its longest standing employees: 6 employees in our Russian offices as well as 4 senior executives, have worked with the Company for more than a decade, including several individuals who have been working within the Group for more than 20 years. Two of the Group's key assets have been progressed through discovery and early-stage exploration through feasibility studies.

The interests and professional development of the Company's employees;

Staff are encouraged to maintain their professional credentials and the Company meets annual subscriptions to professional bodies on behalf of its employees as well as, from time to time, tuition fees for short- and longer-term studies, and attendance fees for industry events. Key technical expertise within subsidiaries is in the areas of geology and mineral exploration, mine engineering, metallurgy as well as Russian subsoil law. In recent years, and as the Company's assets have developed, new full-time positions have been filled in mining engineering and health and safety roles.

The need to foster the Company's business relationships with suppliers, customers and other stakeholders;

The Group employs local workers, contractors and suppliers wherever possible and maintains a network of contacts in the industry, for example by membership of the Urals society of gold producers. The Group has numerous long-standing commercial relationships with consultants and contractors, for example drilling and exploration contractors for both, the West Kytlim and Monchetundra assets, who have worked with the Company for many years (e.g. Central Kola Expedition have worked with TGK for more than 20 years). The Group's strong network of contacts in equipment and machinery contractors are a key asset to the West Kytlim mine. The commercial reputation of the Group and each Company within the Group, within the Russian mining industry, is recognised as critical to the Group's future success.

The impact of the Company's operations on the communities adjacent its projects and the environment;

Rehabilitation plans are submitted as a necessary aspect of all mineral industry statutory reporting in Russia. The Company's mine at West Kytlim is focused on producing greener, lower emissions PGM, in line with efforts across the globe to bring climate change awareness to the mining industry. The construction of the power line to site during 2022 is a key element of this strategy. The Board welcomes initiatives within the mining industry generally, which are focussed on lower carbon, indeed zero-carbon mining. Please see the ESG section of this report for more information.

The West Kytlim mine is remote, with no population directly adjacent the mine, however efforts are made to ensure the nearest communities are kept informed of major items of progress at the mine site, especially major capital developments such as the power line and electric dragline commissioned at West Kytlim during 2022.

The requirement of the Company to maintain a reputation for high standards of business conduct and corporate governance;

The Group applies the Quoted Companies Alliance code and considers its Corporate Governance responsibilities under their 10 guiding principles (see Directors Responsibilities section). The Company also maintains an extensive internal body of policies and procedures which is regularly updated and strictly adhered to. Where necessary, the Company has resort to its Nominated Advisor and legal advisors on matters concerning the UK regulatory environment.

The need to treat all members of the Company fairly and equitably.

No individual shareholder/ member has greater influence, rights or obligations than any other shareholder.

Environmental, social and governance

Introduction

Environmental, Social and Governance priorities are a clear focus of the Company and Board as well as the Company's investor base. The Board welcome changes to the international mining landscape particularly with respect to environmental responsibility, and the example being set by industry majors in setting net zero emissions targets, as well as the developments amongst OEM's in developing zero emissions mining equipment in partnership with major mining companies. The West Kytlim operation is still being scaled up to full capacity, and the Monchetundra Project on Kola is in pre-mine development, the Board feel it is therefore premature for the Group to set a net-zero emissions target but are determined in their goal to deliver innovative and carbon aware mining solutions. Through the past number of years, the Company has looked in detail at the developments in reporting standards and guidelines for sustainability and ESG reporting and the information requirements of our investors and stakeholders making informed and ESG focussed investment decisions.

This section of the report describes how Directors consider and adopt principles of corporate governance, as well as environmental and social governance and apply them through the group of Companies while achieving corporate objectives and ensuring the overall direction, supervision, and accountability of the organisation. Other key aspects of Corporate Governance within this report are:

·      The Section 172 Statement (Strategic Report above) which describes how the Directors promote the Company for the benefit of members as a whole.

·      Financial and non-financial Key Performance Indicators which are outlined to measure performance of the Board year on year; and

·      Principal Risks and Uncertainties section, which demonstrates awareness of potential obstacles to achieving corporate goals.

The Board has adopted the QCA Corporate Governance Code (2018) ("QCA Code") and strives to follow its 10 principles to the fullest extent possible. These principles are supported by a set of policies and procedures documentation reviewed annually. The environment is at the forefront of ESG principles for a mining enterprise and the Directors consider the West Kytlim operation, the largest mine of its type in the world, to be an opportunity to demonstrate a potential new style of lower emissions metal production, competing not in quantity but in quality with other global sources of PGM. The switch to hydro-derived electric power at site is a considerable step to achieving this goal. The Group is committed to ensuring the land disturbed by mining activities is returned, post mining, to a safe and stable landform. Rehabilitation plans, and forestry permits are a key aspect of mine permitting and are submitted for approval in advance of final mining permissions. Typically, these describe how forestry is managed with an equal amount of forest planted as is removed for mining. Open pits are infilled with the overburden removed prior to mining, top soil is replaced and the land regenerates over a period of five to ten growing seasons.

Environmental report

West Kytlim;

A total of 32.4 hectares of forest were cleared at the Bolshaya Sosnovka and Kluchiki sites during 2021, in accordance with forestry permits received prior to the commencement of the mining season and the building were built from the sawn timber to minimise the waste. At year end the Company did not have any outstanding rehabilitation liabilities meaning allowance was made for reforestation elsewhere in the Karpinsk Oblast. Ultimately the area currently being developed at West Kytlim will itself be replanted with appropriate local species and will recover to its pre-mine condition within 5 to 10 years following mining.

Surface mining requires disturbance of the upper layers of top soil and river sediment terraces. Trees and top soils are removed to allow access to the platinum and PGM bearing gravels which are 'free digging'. These areas are then scheduled for remediation.

Water is a key resource in any stable natural environment. Process water at the mine site is fully recirculated meaning the water used to deagglomerate and beneficiate pay gravels is continuously recycled through a process water pond, maintained separate to any natural and free flowing water course. There were no cases of contamination of rivers or streams in all of the areas under development in the year under review and in previous years. Tailings from the mining operation do not contain hazardous chemicals, but do include large volumes of sediment and clay, which could damage the ecosystem in natural river course. These are carefully managed to allow clay and fine particles to precipitate naturally outside of natural river courses. Several relatively small specially protected water environments are defined within the mine license and particular care is taken to preserve these areas.

The Company's rehabilitation plans consider local climate, geochemistry of soils, fertility, degree of disturbance and specific landscape and topography features. The Company and independent advisors determine how the land will be remediated post mining and this process is easier to manage for an operation with a limited (per site) life of mine. ZAO Kosvinsky Kamen, Eurasia's project Company, has 7 active permits for forest plots totalling over 172 hectares. Prior to the granting of a permit to clear a site from forest vegetation, a Rehabilitation Plan prepared by the Company is approved by the Ministry of Natural Resources of the Sverdlovsk Oblast. Rehabilitation Plans follow guidelines set out within the Russian Subsoil licensing including:

• Federal Law "On Environment Protection" of 10.01.2002 No. 7-FZ;

• Russian Federation ('RF') Land Code of 25.10.2001 No. 136-FZ;

• RF Forest Code of 04.12.2006 No. 200-FZ;

• Resolution of the RF Government "On Land Rehabilitation and Conservation" of 10.07.2018 No.800.

The Company Rehabilitation Plans and the Company's Environmental Officer set out the necessary land rehabilitation programme prior to application for a mining permit.

Waste management

The tailings of alluvial mining do not contain any hazardous substances as no chemicals are used in the beneficiation process which is driven by gravity and hydro-mechanical operations. Each washing site is designed to be independent of free-flowing natural water courses so that mixing of mine process water and free flowing water cannot occur. Deagglomerating river sediments liberates an amount of clay material (<.002mm material) which could be damaging to a natural river course and must be carefully managed.

Air emissions

To reduce air emissions, the Company ensures that the equipment used onsite complies with the latest accepted quality standards and optimize the routes taken by mining vehicles. The machinery fleet on site was purchased new and is specified to the latest environmental compliance standards. The Company is also focused on preventing dust pollution at the mine site and regularly carry out dust suppression measures. The switch to electric powered draglines as the key machine for overburden stripping will remove all of the vehicle emissions associated with overburden stripping, which is currently done using bulldozers, excavators and haul trucks.

Social

Relationship with the local community

Building and maintaining close relationships with the communities adjacent to our operations is a Group priority. As in previous years and mining seasons, machinery being delivered to site is temporarily made available in the village of Kytlim where the local Mayor manages a short programme of landscaping or other work which might benefit from heavy machinery such as bulldozers, excavators and haulage trucks. This maintains good relations with the Municipal Administration of the town of Kytlim. A record is kept of any meetings with representatives of local municipalities and notice given of any work programmes, such as exploration activity on the Typil license, delivery of oversized machinery such as draglines, and construction of the substations and power line from the village of Kytlim to the mine site. Where possible, the Company relies on the local community for supply of consumables and food supplies.

Consultation

Giving notice of pre-approved and permitted work such as the West Kytlim power line project, and receiving feedback from the local community who may be affected is a key element of good community relations. The power line follows the route of a previous installation and is not more imposing than a standard domestic line. No impact on local communities or their activities has been identified. The West Kytlim operations occur in an area of unpopulated wilderness without nearby farming operations. The Monchetundra operation adjacent to the town of Monchegorsk is located in a mining friendly jurisdiction with mining and metallurgical processing being the largest employer in the town and district.

Health and Safety report

During 2021 and in the year to date there have been no significant injuries or accidents on site. Close control is being exercised in the critical areas of work to ensure no infringements to health and safety rules. Health and safety protocols have been upgraded at the West Kytlim mine site in preparation for the arrival of electric draglines and high voltage mains electricity. Appropriate HSE is available to all employees and its use closely monitored. Signage is a key element of safety awareness which is maintained by the mine site Health and Safety Officer. The open pit and open-air nature of the operation at West Kytlim reduces the risks of serious injury. No individuals are required in pit during excavation. The highest risk situations are during construction and assembly of various components of the washplants and their peripherals.

OUR MINE SITES ARE ENGAGED WITH LOCAL COMMUNITIES

• Consultations are a key aspect of community involvement for high impact operations.

• All mine workers and equipment operators are local (they reside within a 70km area). Project companies of the Group are registered locally, and taxes are paid locally.

• The mine has a sustainability focus, for example, most mine building structures and interiors are constructed from timber milled on site.

ENVIRONMENTAL PROTECTION IS FRONT OF MIND

• Minimise impact:

o  Surface mining with limited remnant waste and tailing dumps.

o  Limited use of concrete, steel and asphalt at the mine site.

• Rehabilitate:            

o  The Group is committed to ensuring the land disturbed by mining is returned to a safe and stable

o  Landform with no long-term damage to the environment or eco system.

o  Rehabilitation plans envisage works impacting local climate, geochemistry of soils, fertility, degree of disturbance, specific landscape and topography features.

• GHG emissions reduction:

o Installation of e-draglines powered by grid hydro-derived electricity.

• ESG Indices:              

o Eurasia has been included in the L&G Future World ESG UK Index; and Liberum's

             climate portfolio.

OVER 20 YEARS EXPERIENCE OF OPERATING IN RUSSIA

• Building robust partnerships and developing industry contacts in the Russian mining sector including Far East and Arctic Development Corporation and Rosgeo;

• Leveraging an in-depth knowledge of the Russian licensing system in partnership with support from expert Russian and international technical consultants;

• The Group companies maintain strong contacts base amongst equipment suppliers, contractors, industry consultants, and local and state sub-soil licensing professionals; and

• Eurasia is a permanent member of Urals Association of gold producers whose role is to work alongside government agencies to optimise legislation and improve business environment.

J. Nieuwenhuys

Chief Executive Officer

Directors' report

Directors

The Directors who served during the period were:

Christian Schaffalitzky - Executive Chairman

Gary FitzGerald - Non-Executive Director (passed away February 2021)

Anthony James Nieuwenhuys - Executive Director and CEO

David Iain Rawlinson - Non-Executive Director

Tamerlan Abdikeev - Non-Executive Director (appointed 9 April 2021)

Kotaro Kosaka -Non-Executive Director (appointed 21 December 2021)

Artem Matyushok - Non-Executive Director (appointed 16 May 2022)

Company Secretary

Keith Byrne

Directors' interests

Share interests

The Directors of the Company active at 31 December 2021 held the following beneficial interests (including interests held by spouses and minor children) in the ordinary shares of the Company:

Share options and warrants

All options granted to the Directors vested by 31 December 2021.

No share options were exercised by the Directors during 2021 (2020 - nil).

Dividends and profit retention

No dividend is proposed in respect of the year (2020: nil) and the retained loss for the year attributable to the equity holders of the parent of £2,910,479 (2020: loss of £3,080,336) has been taken to reserves.

Share capital

The issued capital of the Company as at 31 December 2021 was:

Risk Management

The Directors consider that assessing and monitoring the inherent risks in the exploration and mine development business, as well as other financial risks, is crucial for the success of the Group. The Board regularly reviews the performance of the Company's projects against plans and forecasts. Further detail on management of financial risks, which includes foreign currency, interest rate, credit, liquidity and capital risks are set out in Note 31.

Going Concern

Following two significant fund raisings through the issue of new ordinary shares in May and September 2021, as at 31 December 2021 the Group's net current assets amounted to £ 23,036,966 (£5,286,051 in 2020).  As at the same date, the Group's cash balance was £22,009,507 (£5,404,101 in 2020). The Group's debt largely consisted of lease liabilities set up to acquire mining machinery for a total amount of £429,543 (at 31 December 2020 - £558,614).

The Group's current (as at 30 May 2022) cash position is around £14,200,000 with the reduction since December 2021 being accounted for by £3,900,000 in capital expenditure, £1,300,000 on development expenditure on its assets portfolio, and £3,500,000 in costs.

The Board consider the West Kytlim asset to be fully capitalised for sustainable mine production for an up to 15 year mine life (at 2022 capacity), without consideration of possible reserves in the adjacent West Kytlim Flanks and Typil License areas. The Group is in the process of installing electric draglines and grid power, realising its plans for the West Kytlim asset which is intended to be self-funding from 2022.

The Group has spent £682,419 on a development programme for the Monchetundra asset during 2021 and has budgeted a further £527,000 for statutory reporting on this asset to November 2022, keeping the asset in good standing while strategic options for the project's development are considered.  

2022 events and sanctions compliance

The Company has satisfied itself that neither of its current activities at the West Kytlim Mine or on the Kola Peninsula are prohibited under UK or EU sanctions rules. Furthermore, the Group does not engage and has not engaged with any sanctioned persons/ entities or agencies

The Company continues to progress discussions with regard to the potential sale of its assets, appointing KPMG Russia as agent in May 2022, and has set aside sufficient funds to complete and submit a Definitive Feasibility Study for the Monchetundra project in November 2022.

All of the Group's net current assets as mentioned above are held in 'A' rated banks in GBP accounts outside of the Russian Federation. The Company has continued to fund Group companies as required through the first part of 2022 and in compliance with applicable regulation.

The Company is active in considering new business development outside Russia, including a potential transition to the hydrogen and ammonia market as described in the Strategic Report herewith. The Group has also diversified geographically in the year being reported, by opening a representative office in Japan, and with the appointment of two Directors working from the Japanese office.

The Directors have concluded that the combination of these factors, including the level of the Company's current cash balances (the substantial majority of which is held within the international banking system outside Russia), and taking account of the current applicable sanctions regime, support the Board's opinion that it has a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, which management has determined to be at least 12 months from the signing of this Annual Report to the conclusion of the 2023 financial year.  For these reasons, the Board believes it is appropriate to adopt the going concern basis in preparing the Annual Report and Accounts.

Directors Responsibilities statement

The Directors are responsible for preparing the Strategic Report and the Directors' Report.

Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors must prepare the financial statements in accordance with UK-adopted international accounting standards and in accordance with the Companies Act 2006 . Under company law, the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs and profit or loss of the Company and the Group for that period. In preparing these financial statements, the Directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and accounting estimates that are reasonable and prudent;

• state whether applicable accounting standards, have been followed, subject to any material departures disclosed and explained in the financial statements;

• with contributions from advisors, set the Company's and Group's corporate strategy including research and development activities (detailed in the strategic report above);

• prepare the financial statements on a going concern basis unless it is inappropriate to presume that the Company will continue in business.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time, the financial position of the Company and the Group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Directors confirm that, so far as each Director is aware, there is no relevant audit information of which the Company's auditor is unaware; and the Directors have taken all the steps that they ought to have taken as Directors in order to make themselves aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Revenue

All revenues generated by the Group are from sale of metals, within the Russian Federation. Currently the sole source of revenue is metal sales from the West Kytlim mine. Refinery receipts record the total of metal sales with payments received for platinum and gold, at the market rate, on average every month throughout the mining season. For reasons related to the nature of metals refining the revenue for other PGM (Rhodium, Iridium and Palladium) are received when all shipments for that year have been received. The Company will be evaluating alternative metal refining and sales options to improve the revenue stream.

Directors Indemnity

The Group maintains Directors and Officers liability insurance as an indemnity provision renewed annually.

Corporate Governance

Eurasia Mining applies the QCA Code as a Corporate Governance framework to ensure adequate corporate governance standards as befits the nature of the Company's business and the stage attained in the continuing evolution of the Company, and in-line with its corporate strategy and business goals. The QCA Code's ten principles and their application to Eurasia Mining PLC and the Group of companies is described below.

Delivering Growth

Eurasia has established a strategy designed to promote long term value and a return on investment for its shareholders, a strategy which also aims to build the Company to an increasingly profitable enterprise while maintaining good corporate governance and social and environmental responsibility standards. The Company's strategy is to self-fund exploration and development of marketable resource and energy projects in various commodities, and to realise a return on investment, either by carrying the project through feasibility to commissioning or by straightforward sale.

Principle 1: Strategy

The Company is focused on developing several key assets; The West Kytlim mine produces Platinum group metals ('PGM') and gold in the Ural Mountains, Russia, while the Kola battery metal and PGM projects are being developed towards production of PGM, gold and battery metals near the town of Monchegorsk, on the Kola Peninsula, Russia. During 2021 the Company has diversified both geographically and in terms of commodities by developing commercial relations in far east markets concurrently with interests in the Hydrogen economy. The Company intends to further these commercial goals while maintaining corporate governance principles in line with the QCA Code. The key commitments and challenges in achieving this are set out below.

Principle 2: Understanding shareholders

Eurasia seeks to maintain open, direct and two-way communication with its shareholders through various media including press releases, the Company website, twitter feed, presentations, investor events, video blogs filmed on site at the Company's projects, live and recorded video and audio interviews, and direct communication by phone and email through the Company's contact information. The Company employs public relations professionals and maintains several third-party contracts to better disseminate Company news-flow. Through shareholder feedback the Company ensures that it remains in touch with the information requirements of our shareholders, their expectations regarding their investment, and the motivation behind their voting decisions. Director's consider shareholder's motivations and expectations to be correlated with that of the Company and the Company's strategy. Shareholders' information requirements can therefore be summarised as either operational in nature or commercial. The Company aims to update on key events within these categories as events materialise. Directors recognise that shareholders require complete and timely information as a necessary input to their investment decisions.

Principle 3: Stakeholders and social responsibility

Experienced and knowledgeable long-standing employees and service providers are a recognised key asset within the Company and our Corporate Governance principles seek to cultivate a productive and fulfilling working environment within the Company and the Group of companies.

Our mining and other operations are a further key asset and attention is paid to how these operations engage with society and the various stakeholders important to the project's continuous success. These include sub-contractors to the Company, and officials within the Russian sub-soil licensing and other agencies. The West Kytlim mining operation is in a remote area and where possible employs local persons but does not otherwise impact on a local population. The Company is devoted to maintaining the strictest environmental policies as required within Russian sub-soil licensing protocols.

Key personnel from the Company's subsidiary maintain communication with representatives from the nearest village to the West Kytlim mining operation, in the town of Kytlim, in order to ensure feedback on potential issues. The mining community in this area of the Urals is relatively small with good communication between companies operating nearby mines, and with all suppliers to the industry generally. Communication with officials from sub-soil licensing agencies and their sub-contractors is more formal, and within the reporting structures designed by those agencies to protect the environment, the country's natural resources and the rights of local populations. Any issue arising from any stakeholder will immediately be dealt with or communicated to the required level to allow for action to be taken. No such events have occurred in the history of the mining operation and where an issue may arise it is reported in full to senior management and directors.

Managing relationships within the Company's workforce, and its outward interactions with local communities, service providers, and the environment, all have the potential to impact on the Company's ability to achieve its medium to long term goals - managing these relationships is considered a fundamental facet of good Corporate Governance.

Principle 4: Risk management

The leading risks at operational level relate to the reliability of our resource and reserve estimations and our ability to manage the mining operation to achieve its goals. These risks are mitigated by ensuring we employ qualified and knowledgeable personnel who are adequately resourced and supported by effective management. Resource exploration involves inherent risks stemming from the fact that information relating to the mineralisation is not immediately available and is expensive to obtain. Recognising this risk and then managing it effectively is a critical aspect of a successful resource exploration and development business.

The Company's annual audit provides an opportunity to reassess the chief risks facing the business at both a corporate and operational level. These are agreed by directors and delineated and audited on an annual basis, thus ensuring adequate recognition and articulation of each risk category.

Principle 5: Maintaining a dynamic management framework

The Board consists of a Chairman and Chief Executive Officer supported by four Non-Executive Directors. The Board endeavours to maintain two independent Non-Executive Director positions at all times. At the date of this revision Iain Rawlinson, Artem Matyushok and Kotaro Kosaka are considered independent Non-Executive Directors. In addition, the board maintains appointments made as strategic advisors. Current Board and advisor roles are listed on our website at https://www.eurasiamining.co.uk/about/team-2

The board meets when an executive decision requires board approval, and in any event no less than once per six-week period. Board members are regularly consulted on executive decisions which would benefit from specific input relevant to a board members area of expertise. All board members are aware of and comfortable with the time and resource requirements associated with their position. Relevant information relating to a board discussion is carefully prepared and circulated in advance of board meetings. Minutes are kept and then circulated directly after all board meetings. Minutes are noted on a prescribed form, which includes heading information such as attendance. An attendance record for each director is maintained and annualised for distribution within the board. Separately, the Company secretary, is considered a key position necessary in preserving a functional and ergonomic management framework within the Company and good communication across the Group of companies.

Principle 6: Experience and skills

The board has an effective combination of commercial and technical experience, being led by a chair with a strong background in geology, who is supported by non-executive directors with commercial, legal and technical experience in a range of markets and jurisdictions. Board members retire on a fixed rota and declare themselves eligible for reappointment by shareholders at the Company's AGM.

The board considers the skill sets within the board to be sufficient for the successful running of the business, and the delivery of the stated corporate strategy and goals through the medium to long term, however further appointments may be made in due course. In addition, where more specialised skills are required, the board has access to a network of individuals and organisations with whom it can consult for further information. This can include input to operational decisions relating to the Company's operating mine, or advice of a commercial nature. Each board member's long-standing career in the industry is invaluable in this regard.

Continuing Professional Development ('CPD') and membership of institutions which promote best practice in industry is encouraged in all board members, though not compulsory to board membership. As an example, the professional accreditations PGeo ('Professional Geologist', Institute of Geologists of Ireland) and EurGeol ('European Geologist', European Federation of Geologists), attained by the Executive Chairman, are maintained by strict adherence to a programme of quantitative and qualitative CPD activities. Likewise, the Company's financial controller maintains membership of the Association of Chartered and Certified Accountants by following a prescribed CPD programme. All board members regularly attend industry events and conferences to keep abreast of developments in their area of expertise.

No one board member, or group of board members, dominates decision making within the Board.

Principle 7: Board performance

The Remuneration Committee, whose membership is considered annually is responsible for evaluating the performance of the executive directors. As mentioned above board members retire on a fixed rota, and efforts are made with regard to succession planning and appointment of new board members.

The appointment process involves; assessment of suitability based on qualifications and work history, due diligence by the Company and its Nominated Adviser, a series of meetings with board members and key personnel, and finally contract negotiation and appointment.

Board evaluations are internal to the Company and on an ad-hoc basis, as befits the small scale of the Company currently, but not less than once per year at the time of the Company AGM. Adhering to the Company's strategy, achieving the Company's goals, and maintaining good corporate governance standards are the three most prominent identifiers by which board effectiveness is evaluated. Board evaluations are not currently made public, and it is the Company's intention to reconsider this position and ensure continued compliance with the Code as the Company develops.

Principle 8: Values

The Company is founded on a culture of following and promoting the highest ethical standards with regard to its commercial transactions, business practices, strategy, internal employee relations and outward-facing stakeholder and community relationships. The Company operates chiefly in the Russian Federation though it is incorporated in the UK and governed by the laws of England and Wales. The corporate culture and values extend from the corporate level throughout the organisation irrespective of jurisdiction. An ability to recognise and promote good ethical values and behaviours is seen throughout the organisation as an excellent behavioural asset to an employee, potential employee or board member. The current board members have been chosen with this awareness of the corporate culture and the Company's ethical standards in mind - new board appointments are also considered in this light. Corporate culture, and high ethical standards with regard to business practices are considered a critical element in attaining the Company's strategy and goals and these standards are reinforced through the appraisal process. High standards of ethics create a competitive advantage for the Company and are a core element of the Company's business model, as they ensure the Company's long-term sustainability. Eurasia is an equal opportunities employer and the Board has recognised a lack of board diversity which it intends to address.

Principle 9: Governance

Maintaining governance structures that are fit for use as the Company evolves in size and complexity is an essential element of good corporate governance. Maintenance of the corporate governance code is the sole remit of the Chairman, who instigates changes in policy, and ensures the code is applied throughout the organisation.

Non-executive directors are appointed and participate in all board level decisions and also provide scrutiny and oversight of the executive director's roles. The board's non-executive directors are each skilled in different aspects of commerce, law, finance and the UK regulatory environment, with a combined breath of experience across various markets, commodities and jurisdictions. They communicate regularly with the Chairman and executive directors and provide reliable advice in their areas of expertise. The terms and functions of the audit and risk, remuneration and nomination committees are set out below. The Company Secretary is available to non-executive directors to support their information requirements and decision making and reports directly to the Chairman.

AUDIT AND RISK COMMITTEE

The Audit and Risk Committee may examine any matter relating to the financial affairs of the Group and the Group's audits, this includes reviews of the annual financial statements and announcements, internal control procedures, accounting procedures, accounting policies, the appointment, independence, objectivity, terms of reference and fees of external auditors and such other related functions as the Board may require. The external Auditors have direct access to the members of the committee, without presence of the executive Directors, for independent discussions. Several Audit and Risk Committee meetings are held during the year, prior to and during the annual audit; and to approve Interim and Annual Financial Statements. The Audit and Risk Committee opines on whether accounts are in compliance with International Financial Reporting Standards.

The Chairman of the Audit and Risk Committee is Iain Rawlinson and the committee comprises Iain Rawlinson and Tamerlan Abdikeev. The Audit and Risk Committee is guided by company policy and procedure including the Audit and Risk Committee terms of reference.

REMUNERATION COMMITTEE

The Remuneration Committee determines the terms and conditions of employment and annual remuneration of the executive Directors and senior staff. It consults with the Executive Chairman, takes into consideration external data and comparative third-party remuneration and has access to professional advice outside the Company. The Chairman of the Remuneration Committee is Iain Rawlinson and the committee comprises Iain Rawlinson and Tamerlan Abdikeev.

The key policy objectives of the Remuneration Committee in respect of the Company's executive Directors and other senior executives are:-

·      to ensure that individuals are fairly rewarded for their personal contribution to the Company's overall performance, and

·      to act as an independent committee ensuring that due regard is given to the interests of the Company's Shareholders and to the financial and commercial health of the Company.

Remuneration of executive Directors comprises basic salary, discretionary bonuses, participation in the Company's Share Option Scheme and other benefits. The Company's remuneration policy with regard to options is to maintain an amount of not more than 10% of the issued share capital in options for the Company's management and employees which may include the issue of new options in line with any new share issues. The Remuneration Committee is guided by company policy and procedure including the Remuneration Committee terms of reference.

NOMINATIONS COMMITTEE

The Chairman of the Nominations Committee is Christian Schaffalitzky and the committee comprises Christian Schaffalitzky and Iain Rawlinson. The committee convenes at a minimum twice annually to consider board composition, and, if considered necessary, seek further appointments. The committee is conscious of a need for board diversity when considering future appointments.

The Nominations Committee is guided by company policy and procedure including the Nominations Committee terms of reference.

Principle 10: Build trust

The Board seeks to maintain both direct and two-way communication with its shareholders through its public and investor relations programmes. All shareholders may at their discretion chose to attend the Company AGM and speak directly to the Board and management.

The Company employs Public Relations and Investor Relations professionals and maintains several third-party contracts to better disseminate Company news-flow. Through shareholder feedback the Company ensures that the Board's communication of the Company's progress is thorough and well understood.

A clear statement on the outcomes of board resolutions is communicated immediately after the Company's AGM by RNS and posted to the Company's website. This includes a summary of votes for and against the resolutions put before the shareholders, and where a significant number of votes is cast against a resolution this is clearly stated, with an explanation as to possible remediation regarding that voting. A catalogue of historical annual reports and AGM notices is maintained at an appropriate location on the Company's website.

Matters which are reserved strictly for the consideration of the board include, but are not limited to, discussions and decision on Company strategy, major investment decisions in new business development, commercial arrangements including funding requirements, high-level decisions on distribution of funds, and recruitment or dismissal of senior personnel and board members.

The above outline of the Company's corporate governance framework befits the current scale of the Company but will be subject to appropriate modifications as the Company grows in line with its stated strategy. An annual review of the corporate governance framework is undertaken at the board meeting preceding or directly following the Company's AGM. Changes considered to the current corporate governance framework, to be assessed in due course, include further appointments to the board, and establishing independent bodies to review and assess board performance.

HEALTH AND SAFETY

The Group has occupational health and safety policies and procedures in place ensuring that all efforts are made to minimise adverse personal and corporate outcomes, through best practice training, implementation and monitoring. No serious incidents occurred in the past year.

UK CODE ON TAKEOVER AND MERGERS

Eurasia Mining is subject to the UK City code on takeovers and mergers, which was revised and extended to apply to all companies listed on the AIM market in October 2013.

AUDITORS

Grant Thornton are willing to continue in office and a resolution proposing their re-appointment as auditors of the Company and a resolution authoring the Directors to agree their remuneration will be put to shareholders at the Annual General Meeting.

By order of the Board

K. Byrne

Company Secretary

Consolidated statement of profit of loss and other comprehensive income

For the year ended 31 December 2021

The accompanying notes are an integral part of these financial statements.