Audited Results, AGM and Annual Report

Alexander Mining plc

Audited Results for the year ended 31 December 2011

Notice of Annual General Meeting

and

Posting of Annual Report

Alexander Mining plc ("Alexander" or the "Company"), the AIM-listed mining and mineral processing technologies company, announces its audited results for the year ended 31 December 2011.

Highlights:

·; In South Africa - AmmLeach® copper/cobalt demonstration pilot plant established in collaboration with MC Process Pty Ltd. in Johannesburg.

·; Pilot plant to be used for testing bulk representative samples from the Democratic Republic of Congo ('DRC') and elsewhere.

·; First AmmLeach® plant in the world to showcase process in two circuits through to copper and cobalt cathode metal, compared with majority of DRC cobalt currently produced as an intermediate product.

·; In DRC - Patent for a Method of Ammoniacal Leaching granted and important progress with copper/cobalt opportunities.

·; In Australia - Method for Leaching of a Copper-containing Ore patent granted plus favourable testwork for Altona Mining on samples from its Roseby copper project.

·; In Turkey - Red Crescent Resources to investigate AmmLeach® technology for copper and zinc projects.

·; In Guatemala - AmmLeach® second stage testwork discussions with Firestone Ventures.

Chairman's Statement

I am pleased to report that since my statement in last year's annual report, Alexander has made steady progress in advancing its plan to commercialise its proprietary breakthrough AmmLeach® mineral processing technology.

Alexander's technology is applicable to the extraction of several important base metals from high acid consuming ores in many parts of the world. During the year, we have continued to test samples from a growing number of projects and engage in discussions with various companies and groups about commercial adoption of the technology. Because of confidentiality agreements, disclosure has been restricted to those opportunities where we are able to put the news into the public domain. However, we can say that based on this work and coupled with what has been announced, the geographic spread has expanded further to potentially significant countries and regions of the world.

Importantly, the diversification is not just geographic but also by metal, covering a range of mineral types. To date, we have tested dozens of different samples, which has enabled us to create an invaluable database of know-how and intellectual property. Although some initiatives have advanced less rapidly than we would have liked due to factors beyond our control, our belief in the fundamental ability of AmmLeach ® to transform the extraction process efficiencies and economics for many base metals is unshakeable.

Two countries with major potential and where we have announced significant initiatives are Australia and Turkey, the former mainly for copper and the latter for copper and zinc. In Turkey, we announced Red Crescent Resources Limited's ('RCR') intention to investigate the use of AmmLeach® technology for the primary recovery of copper and zinc from the oxide mineralisation at several of its base metals projects in Turkey. At RCR's Hakkari Zinc flagship project in far south-east Turkey, the use of AmmLeach® as part of a full feasibility study on an optimised process engineering solution for primary zinc metal production is planned. Also, at RCR's Sivas copper project in north-east central Turkey, RCR hopes to deliver early production through the potential application of Alexander's proprietary oxide (AmmLeach®) and sulphide (HyperLeach®) technologies via technical collaboration.

In Queensland, Australia, we have carried out preliminary amenability testwork for Altona Mining Limited ('Altona') to investigate the use of AmmLeach® technology for copper recovery at its Roseby Project. Encouraging results have been obtained and reported to Altona, with the next stage pending discussions with Altona. We believe that Queensland holds considerable potential for the application of AmmLeach® technology for copper and other base metals.

Moving to Latin America, we have investigated the application of AmmLeach® technology for the owners of several copper and/or zinc oxide deposits. An ongoing relationship with Firestone Ventures Inc. ('Firestone'), after favourable initial testwork and scoping studies, has led Firestone to select the AmmLeach® process for its Torlon Hill Zinc-Lead- Silver Oxide Project in Guatemala. Firestone is in discussions with Alexander on proposals, dependent upon Firestone funding, for further bench-scale work, column testing and a demonstration test plant designed to test further the application of the AmmLeach® process to feasibility study standard. This follows on from Firestone's extensive preliminary metallurgical testwork on the Torlon Hill deposit using a variety of alternative processing methods. We are delighted that Firestone has selected AmmLeach® as its preferred processing method at Torlon Hill, as well as for other potential Guatemala sources of feedstock. We greatly look forward to working with Firestone to advance its projects.

In the Copperbelt of the Democratic Republic of the Congo ('DRC'), one of the most important copper/cobalt AmmLeach® target regions, we have made a concerted effort to advance the adoption of our technology. In particular, this included the joint venture partnership agreement announced with Anvil Mining Limited ('Anvil') on its Mutoshi copper and cobalt project ('Mutoshi') in the Kolwezi region, DRC. Progress with this opportunity stalled in late 2011 as Anvil became subject to a takeover bid, now completed successfully, by Minmetals Resources Limited. We look forward to discussing the Mutoshi project with the new owners to ascertain their intentions.

We also undertook AmmLeach® testwork for Tiger Resources Limited ('Tiger') on ore from its Kipoi copper/cobalt project in the DRC. This was to investigate the use of AmmLeach® for processing material from the Kipoi Central Stage 1 Pit, which contains approximately 4,500t of cobalt. In addition, Alexander completed detailed pilot plant design engineering for the project and submitted this work to Tiger. We await news of Tiger's intentions for the project.

Separately in the Copperbelt, Alexander has carried out detailed investigations of other opportunities. This has included collecting samples for testing, under our supervision, at the premises of MC Process (Pty) Ltd. ('MC Process') in Johannesburg. MC Process is our partner of choice for Africa and a specialist in the design and manufacture of minerals processing equipment, especially solvent extraction plants. MC Process has considerable experience in the Copperbelt and other countries in Africa and has been working closely

with us to investigate attractive opportunities. The testwork results have been promising and, as part of our collaboration with MC Process, we have jointly moved to establish a demonstration pilot plant at MC Process's premises for bigger representative samples which have been delivered from the DRC. The results from the plant will be invaluable for design and scale up to a full size commercial plant. In addition, the plant will be an excellent showcase for our commercialisation activities.

We have continued to protect rigorously our intellectual property ('IP'). A major milestone in the protection of the Company's AmmLeach® IP was reached when Alexander's MetaLeach Limited ('MetaLeach') subsidiary was granted a Standard Patent in Australia for a Method for Leaching of a Copper-containing Ore. This was particularly noteworthy given Australia's robust patenting regime and status as having one of the world's biggest mining industries, with significant potential for our AmmLeach® technology. Our first patent for a Method for Ammoniacal Leaching was granted in the Republic of South Africa in 2010 and Alexander recently announced that it had received notification from the Ministry of Industry of the DRC that MetaLeach had been granted the same patent in the DRC. We expect regular news flow about our suite of patents as our other specific applications progress through the various stages of the patenting process.

We announced early last year the sale of our wholly owned subsidiary Alexander Gold Group Limited, including the former Leon copper project. The terms of the sale were for a down payment of US$400,000 plus 18 monthly payments of US$100,000, commencing March 2011. According to the schedule, the last payment due will be in August 2012. As well as making an important contribution to our overheads, a recent meeting with the Argentinean purchasers confirmed their intention to bring the project into production using our AmmLeach® technology under licence. This would be particularly gratifying as this is where AmmLeach® Was pioneered. Although the terms of using AmmLeach® are subject to discussion and finalisation, we have already agreed the principle of granting a licence in exchange for a gross sales royalty and to provide any necessary technical assistance with the project development.

Outlook

The world economy and financial markets have been highly volatile. Market turmoil in the second half of 2011, due to the, as yet, unresolved European sovereign debt crisis, impacted negatively upon base metals prices. However, the fallout was not as bad as many had feared and the better start to global-stock markets in 2012 has seen base metals prices in general recover notably from the August 2011 lows. The reality is that, outside of the troubled Euro Zone, global growth has held up well, as usual fuelled by China, India and Brazil which are the key regions for growth in base metals demand.

We look forward to healthy base metals prices in the foreseeable future. Moreover, given general industry expectations that the demand for the main base metals, including copper and zinc, will grow significantly in the next few decades, we believe that the environment in the global mining industry for the commercial adoption of our technology will be excellent and ultimately provide significant returns to shareholders. As always, I would like to mark my grateful appreciation for the continued hard work and dedication of Alexander's employees, consultants and directors.

Matt Sutcliffe

Executive Chairman

8 May 2012

For further information please contact: 

Alexander Mining plc

1st Floor

35 Piccadilly

London

W1J 0DW

Tel: +44 (0) 20 7292 1300

Fax: +44 (0) 20 7292 1313

Email: [email protected]

Website: www.alexandermining.com

Nominated Advisor and Joint Broker

RFC Ambrian Limited

Samantha Harrison / Jen Boorer

+44 (0) 20 7634 4700

Joint Broker

XCAP Securities plc

Karen Kelly / Adrian Kirk / David Lawman

+44 (0) 20 7101 7070

Public/Media Relations

Britton Financial PR

Tim Blackstone

+44 (0) 20 7242 9786

Consolidated income statement

For the year ended 31 December 2011

Consolidated statement of comprehensive income

For the year ended 31 December 2011

Consolidated balance sheet

As at 31 December 2011

Consolidated statement of cash flows

For the year ended 31 December 2011

Consolidated statement of changes in equity

For the year ended 31 December 2011

Notes

1. Financial statements

The financial information set out in this announcement does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006 for the year ended 31 December 20111 or for the year ended 31 December 2010, but is derived from those accounts. The financial statements for 2011 will be delivered to the Registrar of Companies following the Company's Annual General Meeting. The auditors have issued an unqualified report on these accounts. The auditor has issued an unqualified opinion in respect of the financial statements which does not contain any statements under the Companies Act 2006, Section 498(2) or Section 498(3). The auditor has raised an Emphasis of Matter in relation to going concern and the availability of project finance as follows:

"In forming our opinion, which is not modified, we have considered the adequacy of the disclosures made in note 2(a) to the financial statements concerning the requirement of the company to raise further finance within the next twelve months in order to continue its operations and to meet its commitments. If the company is unable to secure such additional funding, this may have a consequential impact on the company's and the group's ability to continue as a going concern. The outcome of any corporate developments or fundraising cannot presently be determined, and no adjustments to asset carrying values that may be necessary should the company be unsuccessful have been recognized in the financial statements. These conditions, along with the other matters explained in note 2(a) to the financial statements, indicate the existence of a material uncertainty which may cast significant doubt about the company's ability to continue as a going concern.

2. Summary of significant accounting policies

a) Basis of preparation

The financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") in force at the reporting date and their interpretations issued by the International Accounting Standards Board ("IASB") as adopted for use within the European Union and with IFRS and their interpretations adopted by the IASB.

The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries) made up to 31 December each year.

Going Concern

Based on a review of the Group's budgets and cash flow forecasts, the directors have identified that if current and near-term corporate development opportunities are unsuccessful in providing adequate funding then the Company will need to raise finance within the next twelve months in order to continue its operations and to meet its commitments In common with many mining, exploration and intellectual property development companies, the Company needs to raise finance for its activities in discrete tranches to finance its activities for limited periods. The Directors are confident that the Company currently has a range of corporate development opportunities which could include significant funding outcomes and moreover that, if necessary, any further funding can be raised as and when required. On this basis, they have concluded that it is appropriate to draw up the financial statements on the going concern basis. However, there can be no certainty that either development opportunities or alternative funding will be secured in the necessary timescales and this indicates the existence of a material uncertainty that may cast significant doubt on the ability of the Company and the Group to continue as a going concern. The financial statements do not include any adjustments, particularly in respect of fixed assets, investments, receivables and provisions for winding up which could be necessary if the Company and Group ceased to be a going concern.

b) Research and development expenditure

Research costs are recognised in the income statement as an expense as incurred. Development costs are recognised in the income statement as an expense as incurred unless the development project meets specific criteria for deferral and amortisation. No development costs have been deferred to date because there is insufficient information at the balance sheet date to quantify the expected future economic benefits from the proprietary leaching technologies.

3. Disposal group - discontinued operations

On 28 February 2011, the Company completed, as planned, the sale of its entire interest in its subsidiary, Alexander Gold Group Limited for the sum of US$2,200,000. US$400,000 was received on execution of the legally binding sale and purchase agreement and 18 monthly payments of US$100,000 each became due, commencing in March 2011.

Given the stage of negotiations at 31 December 2010, the directors have used, at that date, the proposed transaction as the 'best' indicator of the fair value of the disposal group and discounted the expected proceeds to arrive at a fair value of £1,140,000 after deducting expected costs to sell. Previously impaired assets of the disposal group had impairments reversed to give a carrying value equal to that fair value amount.

At 1 January 2010 no carrying value had been brought forward for the investment in Alexander Gold Group within the Company's balance sheet. Previously recognised impairments for this investment were therefore reversed to give a carrying value of £1,140,000 and the investment was classified as a non-current asset available for sale.

A discount rate of 25% per annum was applied in arriving at the fair value of the receivable, mainly in recognition of the risks implicit in the anticipated collection of future instalment payments. In addition to a small discount for the time value of money, the discount related principally to country / political risk, the risk that foreign exchange controls may restrict future remittances, as well as counter-party in-country credit risks. The same discount rate of 25% per annum has been applied to the remaining instalment balances at 31 December 2011. The discounted balance of £534,000 is included in trade and other receivables.

A net profit for the year attributed to the discontinued business amounted to £1,487,000 (2010: £884,000), comprised as follows:

4. Dividends

The directors do not recommend the payment of a dividend (2010: nil)

Annual Report

The Annual Report will be posted to all shareholders by 23 May 2012 and will be available on the Company's website at www.alexandermining.com. Additional copies will be made available to the public, free of charge, from the Company's registered office at 35 Piccadilly, London W1J 0DW.

Annual General Meeting

The Company's Annual General Meeting will be held on Thursday 14th June 2012 at 10.30 a.m. at the East India Club, 16 St James's Square, London SW1Y 4LH. The Notice of the AGM is included in the Company's annual report and the associated explanatory notes relating to the proposed resolutions at that meeting.

Disclaimers and forward looking statements

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

This news release contains forward looking or future-oriented financial information, being information which is not historical fact, including, without limitation, statements regarding potential results of AmmLeach® testwork, anticipated applications for the AmmLeach®  processing and discussions of future plans and objectives. Although the Company believes that the expectations reflected by such information are reasonable, these statements are based on assumptions and factors concerning future events that may prove to be inaccurate. Such statements are necessarily based upon a number of estimates and assumptions based on information available to the Company about itself and the business in which it operates. Information used in developing forward-looking information has been acquired from various sources including third party consultants, suppliers, regulators and other sources and is subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from the Company's expectations are the continuing availability of capital resources to fund the commercialisation of Alexander's technologies; continued positive results from trials and applications of Alexander's AmmLeach® and HyperLeach® technologies and other factors as disclosed in Company documents filed from time to time with the TSX Venture Exchange and provincial securities regulators, most of which are available at www.sedar.com. Management uses forward-looking statements because it believes they provide useful information to the shareholders with respect to proposed transactions involving Alexander, and cautions readers that the information may not be appropriate for other purposes and should not be read as guarantees of future performance or results. The Company disclaims any intention or obligation to revise or update such statements unless required by law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.