Preliminary Results - year ended 31 December 2009

6 May 2010

Alexander Mining plc

Preliminary Results for the year ended 31 December 2009

Alexander Mining plc ("Alexander", the "Company"), the AIM-listed mining and mineral processing technologies company, announces its preliminary results for the year ended 31 December 2009.

Key points:

·; Excellent progress made towards the commercialisation of our proprietary MetaLeach® technology

·; Industry interest from a number of multinational mining companies in using technology in exchange for royalties and/or licence fees

·; Independent expert's report shows significant capital and operating cost savings using AmmLeach®

·; Agreement with RPT Resources for the development of mining projects

·; Sharp improvement in the past year for the fortunes of the mining industry as metals prices recovered strongly

·; Healthy cash position of £3.54m at 31 December 2009, with significantly reduced costs and growing testwork revenue

Chairman's Statement

The significant improvement in the mining industry's prospects, after the nadir in global stock markets of over a year ago, has greatly reinforced the healthy and ongoing interest shown by mining companies in our technology.

The past year has been one of significant achievement for Alexander Mining. Through our wholly owned MetaLeach Limited ("MetaLeach®") subsidiary, the progress made in moving towards the commercialisation of our proprietary leaching technologies, especially AmmLeach®, has been excellent.

A dual approach has been adopted. Firstly, we look to develop a system of global licensing of our technology to generate a long term royalty stream from mining companies, and secondly, leverage into direct project interests where our technology may be applicable. The significant improvement in the mining industry's prospects, after the nadir in global stock markets of over a year ago, has greatly reinforced the healthy and ongoing interest shown by mining companies in our technology.

At our Research and Development facility run by Dr. Nicholas Welham at the University of Ballarat in Australia, we have been busy conducting AmmLeach® amenability testwork for a wide range of samples provided by clients. The samples cover a broad variety of minerals and geographical spread. A particular focus has been the African copper belt (Zambia and the Democratic Republic of the Congo - "DRC"). This is as a result of advances made in using AmmLeach® to process copper/cobalt oxide ores. The DRC hosts some of the world's largest undeveloped copper/cobalt deposits, many of which are ideally suited to our AmmLeach® process. This work has led to further AmmLeach® family patents being applied for in the relevant countries, notably the DRC.

More recently, industry recognition of the major commercial value of our technology has been demonstrated. The Company has been approached by a number of multinational mining companies which have a commercial interest in production using our AmmLeach® technology under licence. In addition, one company recently made an indicative, non-binding proposal to purchase the Company's AmmLeach® technology, on an outright basis, for its global operations.

In response, the Company commissioned an independent technical expert, David Lunt of Sterling Process Engineering in Western Australia, to examine the potential capital and operating cost savings for a typical copper and cobalt mine in the DRC using AmmLeach®, compared with the conventional method using sulphuric acid.

The report's findings, which are reported more fully in the Business Review section, clearly show that the potential cost savings for building and running a mine should be substantial. For example, in a study of one medium sized copper mine, the savings were estimated to be around 30% for capital and around 43%, for operating costs, amply illustrating the major potential commercial value of our AmmLeach® technology for the copper industry alone. Although the flow sheet and equipment for both process options is identical in many areas, the major part of the differential is due to the fact that instead of an expensive acid plant, the AmmLeach® option uses a much lower capital cost ammonia plant and the cobalt circuit is much simpler and cheaper.

Regarding the second route to the commercialisation of our technology, namely the acquisition of direct equity interests in copper and zinc properties and development projects, we have identified many attractive opportunities in different regions of the world. To enable us to capitalise on these opportunities, in August we announced that MetaLeach® had signed a twelve months commercial agreement with Canadian mining company RPT Resources Ltd. The agreement is to develop jointly mining projects identified byAlexander using MetaLeach®'s proprietary leaching technologies. It is an excellent way of accelerating the commercialisation of our leaching technology for mutual benefit. It allows us to participate in any future profits and gains via a significant equity stake in suitable properties/projects funded by RPT. Several opportunities have been presented to RPT and taken to the next stage of evaluation.

Based upon recent testwork, the potential applicability of AmmLeach® has expanded to include some nickel laterites. Further development of HyperLeach® has continued more slowly due to the emphasis on AmmLeach®. A most exciting recent development is a process combining the strengths of HyperLeach® and AmmLeach® aimed at the heap leaching of molybdenum/rhenium ores. This has the potential to dramatically change the global molybdenum market by providing a low cost process route for otherwise uneconomic ores.

We have reported our intentions to try and find a cash buyer for our Leon copper project in Argentina, where costs were provided for in the previous financial year. We are currently in negotiations with an interested party.

Regardless of the outcome of the potential sale, the Group had a comfortable cash postition of £3.54m at the end of 2009.

Outlook

The health of the global mining industry compared to a year ago has improved considerably. Demand for base metals, especially from China and other growing economies, has been strong. This has given the mining sector a significant confidence boost as metals prices have recovered sharply, which in turn is good for our commercialisation efforts. Our cash position is healthy and we have a tight rein on costs. Test work should continue to provide a valuable revenue stream as well as adding to our considerable intellectual know-how. The Company is confident that it will be able to convert the strong interest shown in its technology into licence and royalty fee income for the benefit of its shareholders.

Finally, I would like to thank the Company's employees, consultants and directors for their much appreciated role in the Company's success during the last year.

Matt Sutcliffe

Executive Chairman

6 May 2010

For further information please contact:

Consolidated income statement

For the year ended 31 December 2009

Consolidated statement of comprehensive income

For the year ended 31 December 2009

Consolidated balance sheet

As at 31 December 2009

Consolidated statement of cash flows

For the year ended 31 December 2009

Consolidated statement of changes in equity

For the year ended 31 December 2009

Notes

1. Financial statements

The financial information set out in this preliminary announcement does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006 for the year ended 31 December 2009 or for the year ended 31 December 2008, but is derived from those accounts. The financial statements for 2009 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.

2. Summary of significant accounting policies

a) Basis of preparation

The financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union, and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS.

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.

b) Intangible fixed assets

Deferred exploration and evaluation costs

All costs incurred prior to obtaining the legal right to undertake exploration and evaluation activities on a project are written-off as incurred. Costs associated with large scale early stage exploration activity to identify specific targets for detailed exploration and evaluation work are recognised in the income statement as incurred.

Exploration and evaluation costs arising following the acquisition of an exploration licence are capitalised on a project-by-project basis, pending determination of the technical feasibility and commercial viability of the project. Costs incurred include appropriate technical and administrative overheads. Deferred exploration costs are carried at historical cost less any impairment losses recognised.

If an exploration project is successful, the related expenditures will be transferred to mining assets and amortised over the estimated life of the ore reserves on a unit of production basis.

The recoverability of deferred exploration and evaluation costs is dependent upon the discovery of economically recoverable ore reserves, the ability of the Group to obtain the necessary financing to complete the development of ore reserves and future profitable production or proceeds from the disposal thereof.

c) 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 (2008: nil)

4. Intangible fixed assets

1 Due to the continuing uncertainty about the fiscal regime for mining companies in Argentina, together with the significant fall in base metal prices in the second half of 2008, the Company decided to reduce significantly the scale of its expenditure in Argentina, suspend all project work and not proceed to the mine development decision stage. As a result, a full provision was made for all previously capitalised deferred exploration costs at the Group's Leon project in Argentina.

2 Exploration work has been halted at the Group's other exploration properties in Argentina and the majority of the underlying licences are being allowed to lapse as they fall due for renewal. Initial exploration work has not commenced at the Group's Molinetes prospect in Peru. Accordingly, all costs associated with these prospects were written-off during 2008.

Annual Report

The Annual Report will be sent to all shareholders on or around 17 May 2010 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 10 June 2010 at 10.30 a.m. at the East India Club, 16 St James's Square, London SW1Y 4LH.