Final Results

3 June 2019

Alexander Mining plc

Audited Results for the Year Ended 31 December 2018

Alexander Mining plc ("Alexander" or the "Company"), the AIM-listed mining, minerals and metals processing technology company, announces its audited results for the year ended 31 December 2018.

Highlights

· Significant progress with commercialisation efforts for copper, cobalt and zinc oxide projects in several target countries; including Turkey with Deep South Resources Inc. at the polymetallic Kapili Tepe property and with Proses Mühendislik, Danışmanlık, İnşaat ve Tasarım AS. for the establishment of a semi industrial scale processing plant for lower grade oxide zinc ores.

· Continuing and increasingly broad mining industry interest in using AmmLeach® for base metals recovery from amenable deposits as the focus on limiting capital deployment and reduction in All in Sustaining Costs ("AISC") for mines remains a priority for the global mining industry.

· Continued granting of important patents for leaching of base metals oxides using AmmLeach® and sulphides using HyperLeach® in key mining jurisdictions.

· Research and development HyperLeach® initiatives hold encouraging potential.

· Investigating a range of potentially complementary and value accretive corporate opportunities in the natural resources sector.

Chairman's Statement & Review of the Year

Dear Shareholders and Investors

Herewith I take pleasure on behalf of your Board of Directors in presenting for your consideration the Company's results for the year ended 31 December 2018, along with commentary on the operating environment and outlook.

The year under review continued to show sentiment variation in the global mining sector but with an increased and positive focus on key infrastructure commodities and energy metals. Albeit this was still tempered to some degree by ongoing risk around resource nationalism and increased royalty requirements in some countries. In general, the mining and natural resources investment market remained neutral.

The continuing volatile political environment in the USA, UK and Eurozone (Brexit), with fears that China's growth was catching a significant cold and slowing down, drove precious metals' prices for gold, silver and, notably, palladium higher. There was increasing demand for risk hedging against government and public debt levels, US dollar uncertainty and potential for its reserve status to be replaced by the IMF's SDR (Special Drawing Rights) instrument to mitigate general fiat currency failure and its pre-emptive replacement by an electronic monetary system.

The price of infrastructure and energy focused base metals, Alexander's main area of activity, and related metals mining development equities continued to rise. This was due to LME stocks depletion, robust and increasing supply demand, and continued significant but focused capital inflows. There has also been a reset due to the well-publicised failure of a significant number of crypto token offerings. With the crypto market losing 80% of its value, this has severely dampened the significant funding enthusiasm of the previous year and which diverted capital from the junior resources investment market. Accordingly, growing investment in exploration and development activity in the infrastructure commodities and energy storage or battery metals has continued during the year and underpinned further potential price rises.

The key operating environment features for the Company identified last year and listed below continued into the current reporting period and we expect these to continue impacting in the year ahead and beyond.

· Junior mining company valuations remain generally moribund, with the exception of those with diversified portfolios of precious metals and battery metals projects or good polymetallic deposits, which continue to trend upwards.

· Basic AISC improvements appear to have reached their zenith. However, the focus remains with capital investment in technologies in search of further productivity gains to sustain lowest cost quartile performance in the mining sector.

· Market consolidation of companies' positions in highly prospective brownfield mining districts through joint-ventures, mergers and acquisitions migrated upwards to the gold majors, notably in the Barrick-Randgold merger, followed by the Newmont-Goldcorp merger. But this trend is expected to continue at mid-cap and junior levels in the energy and base metals' market sector still in search of critical mass, lower G & A costs and optionality for investors.

· Exploration programmes continued to expand, with investment almost doubling globally in the reporting period. Project developments, old mines and tailings dumps are being more aggressively researched and restarted, in particular in the energy storage metals, i.e. cobalt, vanadium and hard rock lithium.

However, we must not lose sight of some additional globally impacting macro-economic, socio-political, socio-environmental and financial features that have also manifested themselves, as follows:

· One of the biggest headwinds last year was a combination between rising interest rates and the global trade war. Currently, 40 per cent. of the world's trade GDP is the US and China, so a trade war has been hugely unsettling for the demand in commodities.

· IMF's increasing rhetoric on demonetisation, avoidance of another global financial crisis via cancellation of the fiat currency system and the move towards fully electronic, internet and blockchain based "World Money" system, replacing the US$ dollar as the reserve unit and most likely based on the gold backed SDR available to sovereign and elite powers only and providing liquidity from thin air.

· The climate change movement, driven by political control motives and the global elites, has been elevated to become the convenient horse to ride and the perfect platform in the implementation of "World Taxation". Taken in isolation, climate change seems to have no link to world money or world tax, yet every statement by the IMF references climate change and the need to address it globally. This could be both massively positive and massively negative for the mining and minerals' sector, dependent upon which angle you see it. In April 2016, UN Project Adviser Andrew Sheng co-authored a published article "How to Finance Global Reflation" - the statement therein "Investment in global public goods - namely, the infrastructure needed to meet the needs of the developing world and to mitigate climate change - could spur global reflation. An estimated US$6 trillion in infrastructure investment will be needed annually over the next 15 years just to address global warming...".

While cognisant of the operating environment and macro environmental factors mentioned above, Alexander has maintained an unwavering focus on our core activity of seeking and/or acquiring commercialisation opportunities for our AmmLeach® and HyperLeach® technologies ("Leaching Technologies") to release the embedded value in your Company.

During the year, the Company continued to add granted patents in key mining jurisdictions to its portfolio of intellectual property, as well as continuing with its R&D activities under various agreements and, where appropriate, make additional patent applications.

A HyperLeach® patent, which describes a method for leaching one or more target metals from a sulphide ore and/or concentrate was granted in the important mining country of Canada, a cobalt-related patent in the cobalt rich country of Zambia and the overarching AmmLeach® patent in Chile, the world's dominant copper producing country.

The table below summarises those patents granted to date.

MetaLeach® registered patent summary

Oxidative Leaching of Molybdenum -

Note: ARIPO includes: Botswana, Namibia, Zambia and Zimbabwe.

Financial

The Company has continued to be assiduous in keeping its overheads to the minimum necessary, whilst maintaining required expenditure on business development and intellectual property protection.

The Company's cash position at 31 December 2018 was £441,000.

Based on the current budget the company should have adequate working capital through until the end of the current year. It is anticipated that further capital will need to be raised in that time or a corporate transaction carried out. Note 1 of the financial statements below includes a statement by the auditor that there exists a material uncertainty which may cast significant doubt over the Group and Company's ability to continue as a going concern if additional funding is not raised. A number of options and opportunities are being reviewed.

Commercialisation activities

In June 2018, a technical consultancy, licence and royalty agreement with Canadian company Deep South Resources Inc. ("Deep South", DSM - TSXV) for the potential use of our Leaching Technologies was announced, to become effective on Deep South consummating its proposed acquisition of the two exploration licences and one mining licence that comprise the copper/nickel/cobalt polymetallic mineral properties at Imranli near Sivas in the Republic of Turkey, called "Kapili Tepe" ("KT").

Pleasingly, the KT acquisition was achieved post reporting period in May 2019 and we look forward to working together for mutual benefit.

In Australia, unfortunately, as reported on 29 August 2018, Accudo's plan to proceed with a detailed feasibility study on the potential use of our Leaching Technologies under the existing licence agreement at a specific copper project in Australia, and which was dependent upon it obtaining acquisition financing, has been aborted. However, Accudo remains motivated to seek other potentially suitable opportunities. We remain hopeful that, given falling LME copper inventories, lack of new production on the horizon, and strong demand from the EV, energy/battery storage sector and energy distribution infrastructure requirements, it may be successful.

Alexander continues to work with and support Duard Capital Ltd. for the potential introduction of commercial opportunities for its Leaching Technologies in Zambia and the Democratic Republic of the Congo ("DRC"). Both countries share the world renowned Copperbelt geology and are noted mining countries with significant copper and cobalt production growth potential. They are highly prospective for the use of Alexander's technology for the recovery of copper and cobalt.

In February 2018, Alexander announced a partnership agreement with Proses Mühendislik, Danışmanlık, İnşaat ve Tasarım AS. ("Proses"), a mineral processing specialist consultancy based in Turkey, covering Turkey, Iran and the rest of the Middle-East. Under the agreement, subject to securing the necessary funding, Proses proposes to design and construct a semi industrial scale processing plant ("SISP") using Alexander's technology in Turkey. In October 2018, it was announced that Proses had been investigating and progressing plans in Turkey for the establishment of a SISP using Alexander's AmmLeach® technology for processing lower grade zinc oxide ores. Accordingly, it had entered into a formal royalty agreement with Osmanlı Madencilik Ltd ("Osmanlı") of Turkey.

Under the agreement with Osmanlı and subject to environmental impact studies, permitting and Proses securing the necessary funding, the plan would extract zinc oxide ore from the licence area and process the ore in a SISP facility to be established on site. Proses will also proactively seek to receive or purchase zinc oxide ores from other miners in the region for treatment at this plant.

Alexander would receive a gross sales revenue royalty on the value of the SISP product produced using its technology. Subject to the results of the SISP, Alexander would negotiate with the project owners a technology licence agreement ("TLA"). The TLA should be on Alexander's standard commercial terms, including a gross sales revenue royalty on all commercial scale metal or high value-added processing plant product.

Separately, Alexander continues to investigate commercialisation opportunities for its Leaching Technologies to recover copper, cobalt, zinc and other energy metal compounds in various countries. As well as actively working on the commercialisation of our Leaching Technologies through the various agreements in place for brownfield and greenfield opportunities and projects, we continue to investigate a range of potentially complementary and value accretive corporate opportunities in the mining and minerals processing sector.

Whilst we have not yet been successful in advancing any opportunity to the stage for public disclosure, we remain active in evaluating several of interest as they have arisen from time to time and dependent on the main assessment criteria being 'shortest-path-to-value' for the Company and our shareholders.

Research and Development

Four research and development ("R&D") initiatives were progressed in 2018

as follows.

Lithium

This is a joint venture ("JV") with Alexander's Principal Technological Consultant, Dr. Nicholas Welham, an acknowledged expert in lithium and hydrometallurgy. The JV is designed to investigate the exciting potential to develop new lithium processing intellectual property in a sector of major interest. The JV is complementary to our existing cobalt recovery technology as cobalt is an essential component in lithium ion batteries.

With this new initiative, the Company is involved in innovative processing technology for four of the so-called "technology metals of the future" - copper, cobalt, vanadium and lithium. All of them have an essential use in energy storage units or batteries for either electric vehicle ("EV") or Grid power storage unit manufacture. There is evidence to suggest that Lithium-Ion batteries also have significant growth potential for use in the grid power electricity storage sector with first commercial contracts now under adoption in the USA.

Despite some delays beyond the Company's control, proof of concept work for a potential new hard rock lithium heap leaching process continued. In December 2018, it was announced that the preliminary stages of the work had shown promising results. Consequently, it was agreed that a further larger scale batch of test work was required.

The work was undertaken at a higher education establishment in Perth, Western Australia under Dr. Welham's supervision, with all materials being analysed at a local commercial laboratory.

The results from these runs announced post reporting period in April 2019 showed that leaching of lithium from all four minerals was achieved at ambient temperature and pressure. However, the rates of dissolution of the lithium were lower than required for the targeted heap leach. Of the minerals tested, only zinnwaldite appears to have any promise for heap leaching using the envisaged process. Although no further work is planned at this stage, the Company retains a keen interest in the lithium mining and processing sector given its importance to the revolution in electric vehicles and transportation currently well underway.

With growing evidence regarding the operational and economic difficulties with brine type lithium extraction methods, such as increased capital intensiveness, extended time to production, production volume variances from evaporation rates, the processing of lithium from hard rock resources has become a point of focus. Accordingly, the use of heap leaching as a possible processing method for the low-cost extraction of lithium remains of interest to Alexander and it will continue to seek opportunities to use its expertise in this area.

HyperLeach®

For HyperLeach®, two R&D investigations for its potential use were progressed. One for copper and the other for nickel-cobalt.

HyperLeach® - copper

HyperLeach® testwork on two low grade copper sulphide ore samples showed promising potential for the application of HyperLeach® to heap leaching and in-situ leaching. The HyperLeach® reagent has been found to rapidly oxidise chalcopyrite (the main copper sulphide mineral and source of the majority of the world's mined copper production) and bornite from low grade ore.

Unlike many proposed reagents for heap leach or in situ leaching, the initial HyperLeach® solution does not appear to react significantly with the common gangue (waste) minerals. The selectivity to sulphides is anticipated to reduce the reagent consumption compared to other acid-based systems. The acid generated during HyperLeach® has been shown to react with the gangue raising the pH and leading to precipitation of unwanted elements, such as iron and aluminium, simplifying the separation and recovery of the copper.

The HyperLeach® process has significant advantages for high acid consuming ores compared to the conventional acid ferric process. In the conventional process there is a need to continually add acid in order to maintain the solubility of the ferric ions which oxidise the sulphide minerals. This can readily become uneconomic as the duration of heap or in situ leaching is measured in months or even years. The near neutral starting pH of HyperLeach® avoids the need to continually add acid to retain the oxidant in solution. The absence of HyperLeach® reactivity towards most gangue minerals reduces the extent of undesirable reactions between the acid and gangue minerals. The only reaction occurs when the HyperLeach® reagent is in contact with the sulphide minerals, forming a microenvironment ideal for leaching. The acid generated during the reaction can then react with the gangue resulting in the precipitation of many impurity metals within the system, leaving a largely purified solution containing the metal of interest.

The increasing use of renewable energy on mine sites is also a significant factor for HyperLeach® as the reagent can be regenerated electrochemically at high efficiency. As the unit cost of power decreases, the cost of using HyperLeach® will also decrease. Further testwork is aimed at examining the economics of the process. Alexander has been in contact with the major Australian company which provided the samples tested to form a potential partnership to fund development of a heap leach and/or in-situ HyperLeach® process for copper ores.

HyperLeach® - nickel and cobalt

Work on the leaching of fresh and weathered nickel and cobalt flotation tailings in order to produce high purity battery feedstocks continued in the reporting period. Preliminary work was undertaken in late 2018 to assess their amenability to HyperLeach®. Further work commenced in early 2019 to further optimise the process and understand the major factors involved in the leaching. Work on the separation and recovery of nickel and cobalt from the solution to produce high purity metal sulphate salts is expected to follow. Successful application of HyperLeach® to such materials opens up a significant new potential supply of both nickel and cobalt. In Western Australia, and elsewhere, there are a number of operating mines which produce a sulphide concentrate by flotation and a low grade tailings which could be a readily accessible feed for a HyperLeach® process. There is also potential application on ore that is presently too low grade to warrant crushing, grinding and flotation, in either vat or heap leaching scenarios.

A potential industry partner is being identified to aid progress in this application through a joint venture.

Vanadium

In September 2017, Alexander announced that it had agreed a significant new R&D JV project ("Project") to investigate the potential recovery of vanadium from amenable ores ("Vanadium Leaching Technology"). Applications for vanadium have expanded dramatically over the last year as it found a new industrial use and is the key component of large "flow-through" energy storage components known as Redox Batteries, which are already achieving commercial adoption for municipal size grid storage applications in the USA.

The Project is between Alexander, Australian company Multicom Resources Pty Ltd ("Multicom"), and John Webster Innovations Proprietary Limited. Although some work has been done, it is still at the preliminary stage with initial results and next steps being evaluated. If the JV is successful, the potential use of a new Vanadium Leaching Technology would initially be focused on Multicom's Saint Elmo vanadium project in North Queensland, Australia.

Shareholder voting process

To further reduce the environmental impact, we have removed paper from the voting process for meetings in favour of a quicker and more secure method of voting online via our registrars' website. You will however be able to request a paper proxy if you wish from our registrars at the appropriate time.

Outlook

At Alexander we remain unwavering in our belief, despite the testing operational and macro environment factors mentioned earlier, that the Company should begin to benefit from its technological and market positioning, in particular as existing commercial agreements gain traction over the coming year.

It remains our view that there is a clear investment trend in physical and tradeable commodities. Most particularly, this includes infrastructure and energy related commodities, e.g. copper and zinc, both of which are already in supply deficit according to the major market intelligence experts.

The demand for battery metals for the EV markets (nickel, cobalt and lithium) and grid storage markets (vanadium), with significant growth in targeted technology adoption rates could see major supply deficits. Hence, the key beneficiaries should be companies that hold such assets or the technologies to enhance them, like Alexander. This therefore continues to offer shareholders and potential investors strong fundamentals in the Alexander business and in the progressive project developments we are engaged in.

Your Board has remained focused in executing its clearly defined investment plans at all levels and we continue to leave no stone unturned through actively reviewing complementary opportunities of interest in the mining sector. And, we have continued to remain cautious with regards to the deployment of the Company's financial resources.

Finally, I would like to thank you, Alexander's valued shareholders, for your continuing support and our employees, directors, consultants and advisers for their commitment during difficult times past and for the bright future we still see ahead.

Alan M. Clegg

Non-Executive Chairman

31 May 2019

For further information, please contact:

Consolidated income statement for the year ended 31 December 2018

Consolidated statement of comprehensive income for the year ended 31 December 2018

Consolidated balance sheet as at 31 December 2018

Consolidated statement of cash flows for the year ended 31 December 2018

Consolidated statement of changes in equity for the year ended 31 December 2018

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 2018 or for the year ended 31 December 2017, but is derived from those accounts. The financial statements for 2018 will be delivered to the Registrar of Companies following the Company's Annual General Meeting. 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 a point in relation to going concern as follows:

"Material uncertainty related to going concern

We draw attention to Note 2(a) to the financial statements concerning the group and company's ability to continue as a going concern. The matters explained indicate that the group and company will require additional funding by 31 December 2019 and that there is no certainty the funding required will be secured in the necessary timescale. These conditions, along with the other matters set out in Note 2(a) indicate the existence of a material uncertainty which may cast significant doubt over the group and company's ability to continue as a going concern. Our opinion is not modified in respect of this matter."

2. Summary of significant accounting policies

a) Basis of preparation

The financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRSs") 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.

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

At 31 December 2018 the Company's cash position was £441,000. The cash flow forecast prepared by the directors which excludes deferred salaries in relation to the former chairman indicates that the Company will need to raise additional funding by the end of 2019 in order to meet the Group's operating expenses for the 12-month period from the date of signing these financial statements. The directors are assessing several corporate transactions and believe, having taken advice from their broker, that they should be able to raise additional equity financing to enable the Group to continue as a going concern.

On this basis, the directors have concluded that it is appropriate to draw up the financial statements on the going concern basis. However, there can be no certainty that the funding required will be secured in the necessary timescale. These conditions indicate 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 and therefore, that it may be unable to realise its assets and discharge its liabilities in the normal course of business. The financial statements do not include the adjustments that would result if the Company and Group were unable to continue as 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. Dividends

The directors do not recommend the payment of a dividend (2017: nil).

4. Post balance sheet events

On 7 May 2019 Alexander reported that it had received notification that its MetaLeach Limited ("MetaLeach") subsidiary has been granted a patent for a Method for Leaching Zinc Silicate Ores in Turkey, patent number TR 2013 07721 B. The patent will remain in force until 26 June 2033.

On 8 May 2019 Alexander reported that Deep-South Resources Inc. had executed a Technology Licence & Consultancy Agreement with Alexander Mining plc. For further information see https://polaris.brighterir.com/public/alexander_mining/news/rns/story/xp4og9x and https://polaris.brighterir.com/public/alexander_mining/news/rns/story/xq484lw.

Annual Report

The Annual Report is expected to be posted to all shareholders by 5 June 2019 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 Salisbury House, London Wall, London, EC2M 5PS.

Annual General Meeting

The Company's Annual General Meeting will be held at the offices of Druces LLP, Salisbury House, London Wall, London, EC2M 5PS at 11:00am on Friday 28 June 2019. The Notice of the AGM and the associated explanatory notes relating to the resolutions to be proposed at that meeting will accompany the Company's annual report.

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 metallurgical testwork, anticipated applications for the Company's intellectual property 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. 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.