Placing to raise GBP360,000

13 January 2015

Alexander Mining plc

("Alexander" or the "Company")

Placing to raise £360,000 and issue of fee shares

The Company is pleased to announce that it has raised £360,000 (gross) (the "Placing") through the issue of 72,000,000 new ordinary shares of 0.1p each (the "Placing Shares") at a price of 0.5p per share ("Placing Price") to institutional and other investors. The net proceeds of the Placing will be used for general working capital purposes. Hume Capital Securities plc ("Hume") acted as placing agent for the Placing. In connection with the Placing, the Company has issued 3.6 million warrants to Hume to subscribe for ordinary shares at the Placing Price for a period of two years. Hume has also been appointed Joint Broker to Alexander with immediate effect.

Alexander has also issued a total of 2,590,909 new ordinary shares to an adviser and consultant to the Company in respect of fees generated in the ordinary course of business (the "Fee Shares"). 1,090,909 Fee Shares have been issued to Alexander's nominated adviser, Northland Capital Partners Limited at a price of 0.825p per share. 1,500,000 Fee Shares have been issued to a consultant in respect of the provision of investor relations and advisory services in Europe, at a price of 0.80p per share.

Application has been made to the London Stock Exchange for admission of the Placing Shares and the Fee Shares to trading on AIM and dealings are expected to commence on 16 January 2015. Following admission of the Placing Shares and the Fee Shares, the Company will have a total of 250,910,288 ordinary shares in issue with each share carrying the right to one vote.

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