Disposal of Assets

20 December 2010

Alexander Mining plc

('Alexander' or the 'Company')

Letter of Intent for sale of Alexander Gold Group Limited

Alexander Mining plc is pleased to announce that it has signed a letter of intent ('LOI') with a prospective private purchaser for the sale of its wholly owned subsidiary Alexander Gold Group Limited ('AGGL') for a total consideration of US$2.2 million.

AGGL is the holding company for the Company's Argentina assets. It has been Alexander's publicly stated intention to sell AGGL as part of the ongoing strategy to concentrate on the Company's MetaLeach® mineral processing technology.

The LOI provides for a total consideration for AGGL of US$2.2 million which shall be paid as follows: (i) US$400,000 on signing of the legally binding sale and purchase agreement ('SPA'), and (ii) 18 monthly payments of US$100,000 each (the 'deferred consideration'). It is anticipated that the legally binding SPA will be signed by the parties within two months.

Signing of the SPA is dependent upon Alexander being granted security over certain assets owned by the purchaser to provide a guarantee in relation to the deferred consideration.

Alexander has received a deposit of US$50,000 on signing of the LOI by the prospective purchaser. If the prospective purchaser withdraws through its fault, Alexander will retain the deposit, but will refund the US$50,000, together with an additional US$50,000 if Alexander withdraws through no fault of the prospective purchasers. The deposit will be deducted from the initial payment on signing the SPA.

Martin Rosser, CEO of Alexander, said:

"We are pleased to have signed a letter of intent for the sale of our subsidiary. Notwithstanding, if the purchaser wishes to develop a mine in Argentina using our proprietary AmmLeach® processing technology then, subject to the execution of a separate agreement, we would be pleased to agree a licence on our standard commercial terms." 

ENDS

For further information please contact:

Martin Rosser Matt Sutcliffe

Chief Executive Officer Executive Chairman

Mobile: + 44 (0) 7770 865 341 Mobile: +44 (0) 7887 930 758

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

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