Half-year Report

30 September 2019

ALEXANDER MINING PLC

INTERIM REPORT FOR SIX MONTHS ENDED 30 JUNE 2019

Alexander Mining plc ("Alexander" or "the Company"), an AIM listed mining and mineral processing technologies company, announces its unaudited results for the six months ended 30 June 2019.

The Company's business objective historically up to the date of the reporting period has been to become a successful company focused on the mining and processing of mineralised materials for the production of base metals, which are integral to the delivery of technologies and products of the future. This was to be achieved from the commercialisation of its proprietary mineral processing technologies and potential strategic partnerships in producing mines and through equity and/ or royalty positions in advanced projects.

While the Company's strategy has had some positive progress and developments, the Board decided that it was necessary to complete a review of its operations. As a result and as announced on 25 September 2019, it concluded that it was no longer in Shareholders' interests for the Company to continue to provide financial support indefinitely for its mineral processing technology activities, which are carried out by the Company's wholly owned subsidiary, MetaLeach Limited ("MetaLeach").

Chairman's Statement & Review of the Half-Year

Dear Shareholders and Investors

Herewith I take pleasure on behalf of your Board of Directors in presenting the Company's unaudited interim results for the half-year ended 30 June 2019, along with commentary on the operating environment and related outlook, including details of a change in Company strategy following a strategic review of the Company's business by your Board and Management.

The period under review was generally a volatile one for the metals and mining sector, largely due to concerns about the direction of the global economy and the USA/China trade war.

Although, in our opinion, the mid- to longer-term outlook appears positive for Alexander's mineral processing technology, the Company has had to take a view on the realistic prospect in the short term of achieving sufficient revenue from licencing its technology and or consultancy fees to cover its cost base.

Accordingly, as announced on 25 September 2019, the Board decided to conduct a thorough review of its business activities and strategy. As a result, the Board concluded that it is no longer in shareholders' best interests for the Company to continue to provide financial support indefinitely for its mineral processing technology commercialisation activities. The Board has therefore announced that it proposes to dispose of MetaLeach and change the Company's business strategy. The Company intends to become an AIM Rule 15 cash shell and to complete a suitable reverse takeover in accordance with the AIM Rules as soon as practically possible.

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 30 June 2019 was £195,000. In August 2019, post the period end, the Company raised £475,000 before expenses.

Based on the current budget, the Company should have adequate working capital through until the end of June 2020.

As usual, I would like to thank you, Alexander's valued shareholders, for your continuing support and our employees, directors, consultants and advisers for their continued commitment.

Alan M. Clegg

Non-Executive Chairman

30 September 2019

For further information, please contact:

Martin Rosser

Chief Executive

Mobile: +44 (0) 7770 865 341

Alexander Mining plc

Tel: +44 (0) 20 7078 9566

Email: [email protected]

Website: www.alexandermining.com

Cairn Financial Advisers LLP

Sandy Jamieson/James Caithie

Tel: +44 (0) 20 7213 0880

Turner Pope Investments (TPI) Ltd.

Andy Thacker

Zoe Alexander

Tel: +44 (0) 20 3657 0050

Consolidated income statement

Consolidated statement of comprehensive income

Consolidated balance sheet

Consolidated statement of cash flows

Consolidated statement of changes in equity

Notes to the interim financial information

1. Basis of preparation

The interim financial information has 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 accounting policies, methods of computation and presentation used in the preparation of the interim financial information are the same as those used in the Group's audited financial statements for the year ended 31 December 2018.

The financial information in this statement does not constitute full statutory accounts within the meaning of Section 434 of the Companies Act 2006. The financial information for the six months ended 30 June 2019 and 30 June 2018 is unaudited. The comparative information for the year ended 31 December 2018 was derived from the Group's audited financial statements for that period as filed with the Registrar of Companies. It does not constitute the financial statements for that period. Those financial statements received an unqualified audit report, but contained a material uncertainty related to going concern.

Going Concern

In common with many mining, exploration and intellectual property development companies, the Company has raised finance for its activities in discrete tranches to finance its activities for limited periods. At 30 June 2019, the Company had a cash position of £195,000. On 9 August 2019, the Company announced that it had successfully placed 2,375,000,000 ordinary shares of 0.001 pence each at a price of 0.02p per share, raising £475,000 before expenses.  The current cash flow forecasts prepared by the directors indicate that the Company should be able to cover its operating costs for the twelve months period following publication of these results, however the minimal headroom in the forecast together with the uncertainty surrounding the Group's ability to generate positive operating cash flows and successfully dispose of its MetaLeach subsidiary or complete a suitable reverse takeover in accordance with the AIM Rules, indicates a significant risk relating to going concern. It is currently anticipated that further funding will be required in the next twelve months.

On this basis, the directors have concluded that it is appropriate to draw up the interim financial information on the going concern basis. However, there can be no certainty that the Group will achieve positive operating cash flows, further funding, a successful disposal of MetaLeach or completion of a suitable reverse takeover in accordance with the AIM Rules. 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 and therefore, that it may be unable to realise its assets and discharge its liabilities in the normal course of business. The interim financial information does not include the adjustments that would result if the Company and Group were unable to continue as a going concern.

2. Loss per share

The calculation of loss per share is based on the weighted average number of shares in issue in the six months to 30 June 2019 of 1,888,730,149 (six months to 30 June 2018: 1,888,730,149 and year to 31 December 2018: 1,888,730,149) and computed on the respective loss figures as follows:

There is no difference between the diluted loss per share and the basic loss per share presented. Share options granted to employees, consultants and directors could potentially dilute basic earnings per share in the future, but were not included in the calculation of diluted earnings per share as they were anti-dilutive for the period presented.

At 30 June 2019, there were 154,200,000 (at 30 June 2018: 150,200,000; at 31 December 2018: 154,200,000) share options in issue that could have a potentially dilutive effect on the basic earnings per share in the future.

At 30 June 2019, there were 282,359,373 (at 30 June 2018: 282,359,373; at 31 December 2018: 282,359,373) share warrants in issue that could have a potentially dilutive effect on the basic earnings per share in the future.

3. Share Capital

On 28 June 2019, at a General Meeting of the Company, shareholders approved capital restructure proposals whereby each of the existing issued shares of 0.1p each in the capital of the Company were subdivided and converted into one new ordinary share of 0.001p and 99 new deferred shares of 0.001p, and, each of the existing deferred shares of 9.9p each in the capital of the Company which came into existence in 2012 were subdivided into 9,900 new deferred shares of 0.001p each

The new ordinary shares have the same rights and benefits of the previously existing ordinary shares. The number of new ordinary shares in issue following the capital re-organisation was unchanged from the number of existing ordinary shares in issue immediately prior to the capital re-organisation.

The new deferred shares will not be admitted to trading on AIM, have only very limited rights on a return of capital and are effectively valueless and non-transferable. The Directors consider that the deferred shares have no effect on the respective economic interests of the shareholders. No share certificates have been issued for the deferred shares.

The change in the Company's share capital structure during the reporting period occurred as follows:

4. Share options and Warrants

All Share Option costs incurred are allocated to Accumulated Losses.

The Company had a total of 154,200,000 Share Options in issue during the period (12,900,000 with exercise prices of 4.92p per share and a final exercise date of 22 December 2020, 43,300,000 with and exercise price of 0.22p per share and a final exercise date of 28 July 2026, and 98,000,000 with an exercise price of 0.15p per share and a final exercise date of 28 July 2026), representing 6.63per cent of the issued share capital of the Company on a fully diluted basis. Share option charges for the six months to 30 June 2019 amounted to £8,311 (2018: £10,005).

The Company had a total of 47,359,375 warrants in issue during the period for the provision of Broker services (7,359,375 with an exercise price of 0.4p per share and a final exercise date of 8 October 2019, 40,000,000 with an exercise price of 0.15p per share and a final exercise date of 22 November 2020. Warrant charges for the six months to 30 June 2019 amounted to £5,597 (2018: £6,834).

The Company had a total of 34,999,998 warrants in issue during the period granted to subscribers of the 2 October 2015 placing with an exercise price of 0.45 pence per share, having a final exercise date of 8 October 2019. No charge was made to equity for the six months ending 30 June 2019 (2018: £nil).

The Company had a total of 200,000,000 warrants in issue during the period granted to subscribers of the 22 November 2017 placing with an exercise price of 0.225 pence per share and a final exercise date of 22 November 2019.

5. Post balance sheet events:

On 11 July 2019, the Company issued a corporate update including a report that the Company has either paid or has agreed waiver of payment on all amounts outstanding to current and former directors of the Company in respect of deferred payments of directors' fees identified in note 20 and included under Trade and Other Payables (note 14) of the Annual Report and Accounts for the year ending 31 December 2018. The total amount outstanding of £300,728 as at 31 December 2018 has been reduced in full to zero.

On 9 August 2019, Alexander announced that it had  successfully placed 2,375,000,000 ordinary shares of 0.001 pence each ("Ordinary Shares") at a price of 0.02p per share (the "Placing Shares"), raising £475,000 before expenses (the "Placing"), through its sole broker and placing agent Turner Pope Investments (TPI) Ltd ("TPI"). As part of TPI's commission arrangements, the Company agreed to issue 118,750,000 Ordinary Shares to TPI for their fundraising services (the "Commission Shares").

The Company also announced the proposed board appointment of Nigel Burton as a Non-Executive Director of the Company, subject to the satisfactory completion of regulatory due diligence checks.

In addition, the Company also agreed to issue TPI with a warrant to subscribe in cash for up to 142,500,000 Ordinary Shares in the Company, which can be exercised at a price of 0.025p per Ordinary Share until the second anniversary following Admission of the placing shares.

On 16 September 2019, the Company confirmed the appointment of Dr Nigel Burton as a Non-Executive Director of the Company.

On 25 September 2019, the Company announced the results of a review of its operations and had concluded that it is no longer in Shareholders' interests for the Company to continue to provide financial support indefinitely for its mineral processing technology activities, which are carried out by the Company's wholly owned subsidiary, MetaLeach Limited ("MetaLeach"). It further stated that "The Board is therefore proposing to dispose of MetaLeach and change the Company's business strategy. The Company intends to become an AIM Rule 15 cash shell and to complete a suitable reverse takeover in accordance with the AIM Rules."

Copies of these announcements are available to view on the Company's website at www.alexandermining.com.

Disclaimers

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.