Quarterly Financial Report

QUARTERLY FINANCIAL REPORT

14 May 2013

EMED Mining Public Limited (AIM: EMED, TSX: EMD) ("EMED Mining" or "the Company"), the Europe-based minerals development and exploration company, announces its unaudited results for the three months ended 31 March 2013.

The full unaudited Quarterly Report (as required by Toronto Stock Exchange reporting standards), including consolidated Financial Statements and the Management Discussion and Analysis relating to the Company, which appear below, are also available under the Company's profile on SEDAR at www.sedar.com and on the Company's website at www.emed-mining.com.

Period Highlights

Spain - Rio Tinto Copper Project:

·; An Updated NI 43-101 Independent Technical Report was published reporting that capital and operating cost estimates are consistent with recent guidance published by the Company;

·; The Andalucian Government's Department of Industry formally notified the remaining conditions for Administrative Standing (or "Titularidad Administrativa"), (the administrative approval of the Company's mineral rights) namely:

o a preliminary report from technical agency CEDEX on the viability of the project after taking into account restrictions imposed on the tailings management system, and

o approval by the Andalucian Government's Department of Environment of the Unified Environmental Authorisation ("AAU"), being the environmental plan;

·; The Company has implemented the requested civil liability insurance policy for the tailings facility;

·; The Andalucian Government completed the public comment period for the "Class B Resources", the recycling of precious-metal rich tailings via the Company's joint venture with local investment group Rumbo 5-Cero;

·; The Company registered the incorporation of the EMED Foundation for Economic Diversification, which will commence operations with mine production.

Slovakia - Detva Gold Project

·; The national Mining Bureau is considering whether to ratify the approval of the Mining Lease Area.

Corporate

·; The Cyprus banking crisis had no notable impact on the Company.

·; The Company is still in a closed period.

Explanatory Comments as Regards Regulatory Permitting in Spain

·; Approval of the environmental plan by Andalucia's Department of Environment and of Administrative Standing by Andalucia's Department of Industry are the two principal permits required for construction works to commence

·; The two departments are currently focused on ensuring that the conditions formally set for Administrative Standing are duly taken into account in the approvals process for the environmental plans

·; The current focus of the Company's permitting team is to serve the Andalucian Government's desire to resolve these matters mid-year and, to that end, to assemble the due diligence required by CEDEX as regards the tailings management system. The financial impacts were considered within the estimates reported in the Updated NI 43-101 Independent Technical Report in February, the physical works required for CEDEX due diligence were completed in March and satisfactory preliminary conclusions by the various specialist consultants were tabled in April.

Harry Anagnostaras Adams, Managing Director of EMED Mining, commented:

"We target starting works next quarter. Obviously this relies on receiving the requisite permits, the progress of which remains encouraging and steady, albeit slow due to the caution and care being exercised."

Enquiries

EMED Mining Public Limited

(All amounts in Euro thousands unless otherwise stated)

Condensed Interim Consolidated Income Statements

(Unaudited)

Condensed Interim Consolidated Statements of Financial Position

(Unaudited)

Condensed Interim Consolidated Statements of Changes in Equity

(Unaudited)

Condensed Interim Consolidated Statements of Cash Flows

(Unaudited)

Notes to the Condensed Interim Consolidated Financial Statements

For the Three Months to 31 March 2013 and 2012 - (Unaudited)

1. General information

Country of incorporation

EMED Mining Public Limited (the "Company") was incorporated in Cyprus on 17 September 2004 as a private limited liability company in accordance with the provisions of the Cyprus Companies Law, Cap. 113 and was converted to a public limited liability company on 26 January 2005. Its registered office is at 1, Lampousas Street, Nicosia, Cyprus. The Company was listed on AIM of the London Stock Exchange in May 2005 and TSX on 20 December 2010.

Principal activities

The principal activity of the Company and its subsidiaries (together, "the Group") is to explore for and develop natural resources, with a focus on base and precious metals in certain belts of mineralisation spanning Europe, the Middle East and Central Asia.

2. Basis of preparation and accounting policies

Basis of preparation

The condensed interim consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) including International Accounting Standard 34 "Interim Financial Reporting" and using the historical cost convention.

These condensed interim consolidated financial statements ('the statements") are unaudited and include the financial statements of the Company and its subsidiary undertakings. They have been prepared using accounting bases and policies consistent with those used in the preparation of the consolidated financial statements of the Company and the Group for the year ended 31 December 2012. These condensed interim consolidated financial statements do not include all of the disclosures required for annual financial statements, and accordingly, should be read in conjunction with the consolidated financial statements and other information set out in the Company's 31 December 2012 Annual Report. The accounting policies are unchanged from those disclosed in the annual consolidated financial statements.

The Directors have formed a judgment at the time of approving the condensed interim consolidated financial statements that there is a reasonable expectation that the Company has adequate resources available, or a reasonable expectation that resources are accessible to continue in operational existence for the foreseeable future.

The financial statements have been prepared on a going concern basis, the validity of which depends principally on the discovery of economically viable mineral deposits, obtaining the necessary mining licences and the availability of subsequent funding to extract the resource or alternatively the availability of funding to extend the Company's exploration activities. The financial statements do not include any adjustment that would arise from a failure to complete any of the above. Changes in future conditions could require write downs of the carrying values of property, plant and equipment, intangible assets and/or deferred tax.

Use and revision of accounting estimates

The preparation of the condensed interim consolidated financial statements requires the making of estimations and assumptions that affect the recognised amounts of assets, liabilities, revenues and expenses and the disclosure of contingent liabilities. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

Adoption of new and revised International Financial Reporting Standards (IFRSs)

The Group has adopted all the new and revised IFRSs and International Accounting Standards (IAS) which are relevant to its operations and are effective for accounting periods commencing on 1 January 2013. The adoption of these Standards did not have a material effect on the condensed interim consolidated financial statements.

At the date of authorisation of these condensed interim consolidated financial statements some Standards were in issue but not yet effective. The Group expects that the adoption of these Standards in future periods will not have a material effect on the consolidated financial statements of the Group.

Critical accounting estimates and judgements

The fair values of the Groups' financial assets and liabilities approximate to their carrying amounts at the reporting date. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are unchanged from those disclosed in the annual consolidated financial statements.

3. Business and geographical segments

Business segments

The Group has only one distinct business segment, being that of mineral exploration and development.

Geographical segments

The Group's exploration activities are located in Cyprus, Spain and Slovakia and its administration and management is based in Cyprus.

4. Loss per share

The calculation of the basic and diluted loss per share attributable to the ordinary equity holders of the Company is based on the following data:

There are 4,321,000 warrants and 62,929,000 options which have been excluded when calculating the weighted average number of shares because they have an antidilutive effect.

5. Property, plant and equipment

The above fixed assets are located in Cyprus, Spain and Slovakia.

Of the €17m additions for land and buildings in 2012, €15m relate to purchases of land, for the operation of the Rio Tinto Copper Project, from Rumbo and Inland Trading 2006, S.L. ("Inland") as follows: The €10 million purchase of certain land plots covering part of the tailings dams owned by Rumbo, adjoining the Rio Tinto Copper Project was satisfied by €4.5 million in cash and €5.5 million by the allotment of 48,549,234 new ordinary shares of 0.25p each in the Company at 9.14 pence per share. The €5 million purchase of the last land plot required for planned operations of the Rio Tinto Copper Project, owned by Inland, covering part of the Rio Tinto Copper Project's main tailings dam wall and satisfying all of the project's needs for tailings deposition from proposed operations along with the potential expansion thereof in the shorter term was satisfied by €2.5 million in cash and €2.5 million by the allotment of 18,511,675 new ordinary shares of 0.25p each in the Company at 10.61 pence per share. The Company has also been granted options by Inland and Construcciones Zeitung, S.L. ("Zeitung") to acquire additional plots of land in the surrounding district (the "Option Lands"), exercisable within four years at an aggregate price of €9 million.

6. Intangible assets

The Rio Tinto Copper Project

In September 2008, the Group moved to 100% ownership of EMED Tartessus (and thus full ownership of the Rio Tinto Copper Project) by acquiring the remaining 49% of the issued capital of EMED Tartessus. The cost of the acquisition was satisfied by issuing 39,140,000 Ordinary Shares to MRI Investment AG ("MRI") at an issue price of 21p per Ordinary Share and a deferred cash settlement of €52,999,999 (including loans of €9,116,617 owed to companies related to MRI incurred in relation to the operation of the Rio Tinto Copper Project) to be paid by the Group over six or seven years (at the option of the Company). This consideration is payable once the authorisation from the Junta de Andalucía to restart mining activities in the Rio Tinto Copper Project has been granted and the Group has secured project finance facilities and is able to draw down funds under such facilities.

In consideration for agreeing to pay the deferred cash settlement over six or seven years and for MRI's consent to the arrangements that were entered into in connection with the Convertible Loan Facility (now repaid), the Company agreed to potentially pay further deferred consideration of up to €15,900,000 in regular instalments over the deferred consideration payment period depending upon the price of copper. Any such additional payment will only be made if, during the relevant period, the average price of copper per tonne is US$6,614 or more (US$3.00/lb). On 11 November 2011 MRI novated its right to be paid the deferred consideration to Astor Management AG (Astor).

As security for the obligation on EMED Tartessus to pay the deferred consideration to Astor, EMED Holdings (UK) Limited has granted a pledge to MRI Resources AG over the issued capital of EMED Tartessus and the Company has provided a parent company guarantee.

The funds required to make these payments, should EMED proceed with the restart of the Rio Tinto Project, would be sourced from senior project debt and from project cash flow. The restart of mining operations remains subject to certain conditions set by the Junta de Andalucía Government, completion of technical due diligence and attaining project financing.

Carrying Value of Intangible Assets

The ultimate recoupment of balances carried forward in relation to areas of interest or all such assets including intangibles is dependent on successful development, and commercial exploitation, or alternatively sale of the respective areas. The Company conducts impairment testing on an annual basis unless indicators of impairment are present at the reporting date.

In considering the carrying value of the assets at the Rio Tinto Copper Project, including the intangible assets and any impairment thereof, the Company assessed the carrying values having regard to (a) the current recovery value (less costs to sell) and (b) the net present value of potential cash flows from operations. In both cases, the estimated net realisable values exceeded current carrying values and thus no impairment has been recognised.

7. Trade and other receivables

8. Share capital and share premium

Authorised capital

Under its Memorandum the Company fixed its share capital at 1,000 ordinary shares of nominal value of CY£1 each.

On 19 December 2012 shareholders approved an increase in the authorized share capital of the Company from £3,500,000 to £4,500,000 by the creation of 400,000,000 new ordinary shares of £0.0025 each in the capital of the Company ranking pari passu with the existing ordinary shares of £0.0025 each in the capital of the Company.

On 12 March 2012 shareholders approved an increase in the authorized share capital of the Company from £2,500,000 to £3,500,000 by the creation of 400,000,000 new ordinary shares of £0.0025 each in the capital of the Company ranking pari passu with the existing ordinary shares of £0.0025 each in the capital of the Company.

Issued capital

2013

No shares were issued in the period from 1 January 2013 to 31 March 2013.

Warrants

The Company has issued warrants to advisers to the Group. Warrants, noted below, expire five or one and a half years after the grant date and are exercisable at the exercise price.

2013

No warrants were issued in the period from 1 January 2013 to 31 March 2013.

Details of share warrants outstanding as at 31 March 2013:

9. Share options and share option reserve

2013

No options were issued in the period from 1 January 2013 to 31 March 2013.

10. Trade and other payables

*Social Security: On 25 May 2010 EMED Tartessus S.L recognized a debt with the Social Security's General Treasury in Spain amounting to €16.9 million that was incurred by a previous owner in order to stop the execution process by Public Auction of the land over which Social Security had a lien. €6.4 million has been repaid to date.

** Other payables relate to future land option payments and promissory notes to Rumbo and Inland.

11. Acquisition of subsidiaries

There were no acquisitions in the three months ended 31 March 2013.

12. Related party transactions

The following transactions were carried out with related parties:

Compensation of key management personnel

The total remuneration of the Directors and other key management personnel was as follows:

Share-based benefits

The directors and key management personnel have been granted options as set out in Note 9.

Transactions with KEFI Minerals Plc

The Company has an ongoing service agreement with KEFI Minerals Plc for provision of management and other professional services.

13. Contingent liabilities

On 23 September 2010, EMED Tartessus ("EMEDT") was notified that the Andalucían Water Authority ("AWA") had initiated a Statement of Objections and Opening of File (the "Administrative File") following allegations by third parties of unauthorized industrial discharges from the Tailings Management Facility ("TMF") at the Rio Tinto Copper Mine in the winter months of late 2010 and early 2011. These assertions are judicial (alleging negligence) and administrative (alleging damage to the environment) in nature. At that time, the Company owned 33% of the TMF and the owners of the remaining 67% are co-defendants (Rumbo and Zeitung).

In December 2011 the judicial claims were dismissed in the initial discovery phase by the appeals Court (upholding a lower court decision) finding that the controlled discharges of excess rainwater were force majeure events carried out to protect the stability of the TMF, thereby ensuring public safety and protection of the environment (the "Court Decisions"). Given that all judicial claims were dismissed in the very early stages of the court´s investigation, no formal charges were ever made against EMEDT or against any of its Directors or Officers.

Now that the Court Decisions are final, the Administrative File, which can only result in a monetary sanction against the co-defendants, has been re-opened.

On January 2, 2013 EMEDT, Rumbo and Zeitung were notified of a Resolution of Fine and Damages (in a total amount of €1,867,958.39). In February 2013 EMEDT appealed this Resolution and separately requested a suspension of obligation to pay the proposed fine and damages pending the result of the underlying issue regarding the alleged discharges in question. In April 2013 EMEDT was granted its request to have suspended the obligation to pay the fine and damages in the form of a bond or other related financial instrument, and instead, as offered by the Company, the Court has agreed that the Fine and Damages amount be secured by a mortgage over certain properties owned by EMED until the final decision on the alleged discharges is known.

The Company will continue to defend its actions vigorously. In fact, no "industrial discharge" took place, but rather a force majeure controlled discharge of excess rainwater accumulated in the TMF since industrial operations ceased in the early 2000´s with no actual damage to the environment having taken place. All actions taken by the Company were conducted with full transparency and in constant communication with the Government of Andalusia. EMEDT did all it could under the circumstances to meet its standard of care to protect the environment and public safety under the relevant legislation, as acknowledged in the Court Decisions and it is important to note was the only co-owner to do so.

It is improbable that any fine or sanction will be imposed against EMEDT once the Administrative File, reaches its conclusion in approximately 3-5 years.

As part of the acquisition cost of a 95% share in Eastern Mediterranean Minerals (Cyprus) Limited, an additional contingent consideration of €616,200 is payable by the Company to Hellenic Mining Company Ltd one month after the date on which Eastern Mediterranean Minerals (Cyprus) Limited first receives revenue of €1,027,000 from or in respect of specific exploration tenements.

14. Commitments

Spain

There are no minimum exploration requirements at the Rio Tinto Copper Project. However, the Group is obliged to pay municipal taxes which currently are approximately €88,000 per year in Spain and the Group is required to maintain the Rio Tinto site in compliance with all applicable regulatory requirements.

As part of the consideration for the purchase of land from Rumbo, EMED Tartessus has agreed to pay a royalty to Rumbo subject to commencement of production of $250,000 in each quarter where the average price of LME copper or the average copper sale price achieved by the Group is at least $2.60/lb. No royalty is payable in respect of any quarter where the average copper price for that quarter is below this amount and in certain circumstances any quarterly royalty payment can be deferred until the following quarter. The royalty obligation terminates 10 years after commencement of production. Commencement of production is defined as being the processing of ore at a rate of nine million tonnes per annum for a continuous period of six months and the date that is 18 months after the first product sales from the Rio Tinto Copper Project. Additionally, if after seven years from the date of the land purchase, the Group has not obtained all necessary licenses to open and operate the Rio Tinto Copper Project, the land will be sold back to Rumbo for €1. Should the Group sell the land prior this date to a third party Rumbo shall be paid €5.5 million and the above mentioned royalty novated to the third party,

EMED Tartessus has entered into a 50/50 joint venture with Rumbo to evaluate and exploit the potential of the class B resources in the tailings dam and waste areas at the Rio Tinto Copper Project. Under the joint venture agreement, EMED Tartessus will be the operator of the joint venture, will reimburse Rumbo for the costs associated with the application for classification of the Class B resources and will fund the initial expenditure of a feasibility study up to a maximum of €2 million. Costs are then borne by the joint venture partners in accordance with their respective ownership interests. Half of the costs paid by EMED Tartessus in connection with the feasibility study can be deducted from any royalty which may fall due to be paid.

At the Rio Tinto Copper Project, the Group has four year options with each of Zeitung and Inland for the purchase of certain land plots adjacent to the mine at a purchase price of €4.202 million (expiry date 31 July 2016) and €4.648 milion (expiry date 2 August 2016) respectively. The Zeitung option requires an annual option payment from the Group of €119,500 and the Inland option requires an annual payment of €130,500 which is deductable from the purchase price. In each case, half of the purchase price can be made by the issue of share in EMED Mining based on a weighted average market price at the time of the purchase.

Slovakia

There are minimum exploration expenditure requirements for the Slovakia tenements. Tenements are granted for 4 years and over this period a minimum of 70% of the budget proposed by the Group must be spent in order to extend the tenement life for another 2 periods (4 and 2 years, respectively). The first year minimum spend is 10% of the individual tenement budget.

Currently the official exploration budget across the Slovakian tenements, according to the exploration programs submitted to the competent Ministry of Environment, is approx. €3.9 million in total (for the period 2009 to 2015 for all 6 tenements). Annual tenement rental fees for 2013 are in the order of €56,000 this year. EMED has met its obligations to date. All annual technical and financial reports have been submitted in time.

Other

In Cyprus, there are no exploration commitments required and tenement rentals are approximately €30,000 per annum.

15. Events after the reporting period

There were no other events after the reporting period, which would have a material effect on the condensed interim consolidated financial statements.

Management's Responsibility for Financial Reporting

The accompanying condensed interim unaudited consolidated financial statements of EMED Mining Public Limited were prepared by management in accordance with International Financial Reporting Standards ("IFRS"). Management acknowledges responsibility for the preparation and presentation of the condensed interim unaudited consolidated financial statements, including responsibility for significant accounting judgments and estimates and the choice of accounting principles and methods that are appropriate to the Company's circumstances. The significant accounting policies of the Company are summarised in Note 2 to the condensed interim unaudited consolidated financial statements.

Management has established systems of Internal Control over the Financial Reporting ("ICFR"), process, which are designed to provide reasonable assurance that relevant and reliable financial information is produced. There was no change in the Company's ICFR that occurred during the period beginning on 1 January 2013 and ended on 31 March 2013 that has materially affected, or is reasonably likely to materially affect, the Company's ICFR.

The Board of Directors is responsible for reviewing and approving the condensed interim unaudited consolidated financial statements and for ensuring that management fulfils its financial reporting responsibilities. An Audit and Financial Risk Management Committee assists the Board of Directors in fulfilling this responsibility. The members of the Audit and Financial Risk Management Committee are not officers of the Company. The Audit and Financial Risk Management Committee meets with management to review the internal controls over the financial reporting process, the consolidated financial statements and the auditors' report. The Audit and Financial Risk Management Committee also reviews the Annual Report to ensure that the financial information reported therein is consistent with the information presented in the consolidated financial statements. The Audit and Financial Risk Management Committee reports its findings to the Board of Directors for its consideration in approving the condensed interim unaudited consolidated financial statements for issuance to the shareholders.

Management recognises its responsibility for conducting the Company's affairs in compliance with established financial standards, and applicable laws and regulations, as defined in National Instrument 52-109-Certification of Disclosure in Issuer's Annual and Interim Fillings ("NI 52-109") of the Canadian Securities Regulators, and for maintaining proper standards of conduct for its activities.

MANAGEMENT'S DISCUSSION AND ANALYSIS

FOR THE THREE MONTHS ENDED 31 March 2013

This Management's Discussion and Analysis ("MD&A") of financial condition and results should be read in conjunction with the unaudited condensed interim consolidated financial statements and related notes thereto of EMED Mining Public Limited (the "Company" or "EMED Mining") and its subsidiaries (together "EMED" or "Group") for the three months ended 31 March 2013. The unaudited condensed interim consolidated financial statements and related notes on which the MD&A are based have been prepared in accordance with the International Financial Reporting Standards ("IFRS").

This report which is dated 14 May 2013 and the Company's other public filings, including its most recent Annual Information Form, can be viewed via the SEDAR website (www.sedar.com).

Cautionary Statements Regarding Forward Looking Statements

This MD&A contains "forward‑looking information" which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company, and the Group and its projects, the future price of metals, the estimation of ore reserves and mineral resources, the conversion of mineral resource estimates to ore reserve estimates, the realization of ore reserve estimates, the timing and amount of estimated future production, costs of production, capital, operating and exploration expenditures, costs and timing of the development of new deposits, costs and timing of future exploration, requirements for additional capital, government regulation of mining operations, environmental risks, reclamation expenses, title disputes or claims, limitations of insurance coverage and the timing and possible outcomes of pending litigation and/or regulatory matters. Often, but not always, forward‑looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate" or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Accordingly, readers should not place undue reliance on forward‑looking statements.

Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and are based on facts and assumptions that management considers reasonable. The material assumptions upon which such forward-looking statements are based include, among others, that: the grant of Administrative Standing (as defined herein) will be obtained; all other regulatory approvals and authorizations from the Andalucía Government and departmental ministries will be obtained;; requisite shareholder approval for project re-start will be obtained; definitive documentation for project financing will be completed; regulatory and political views regarding the Rio Tinto Copper Project will remain positive and unchanged; the demand for copper will develop as anticipated; that the price of copper will remain at levels that render the Rio Tinto Copper Project economic; the mineral resource and reserve estimates as disclosed in the Rio Tinto Technical Report (as defined herein) will be realized; and that there are no material unanticipated variations in the production, capital cost and economic estimates as disclosed in the Rio Tinto Technical Report.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward‑looking statements. Such factors include, among others: general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; actual results of reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of metals; the future cost of capital to the Company; possible variations of ore grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; political instability, terrorism, insurrection or war; delays in obtaining governmental approvals or financing or in the completion of development or construction activities, as well as those factors discussed in the section entitled "Risk Factors" in the Company's Annual Information Form for the year ended 31 December 2012 (the "AIF") available under the Company's profile on SEDAR at www.sedar.com .

Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward‑looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward‑looking statements contained herein are made as of the date of this AIF and the Company disclaims any obligation to update any forward‑looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws. There can be no assurance that forward‑looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Reconciliation Note between JORC and CIM Standards

This MD&A may contain disclosure of mineral resources and ore reserves using the Australasian Code for Reporting of Mineral Resources and Ore Reserves prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Mineral Council of Australia, as amended ("JORC"). While the technical disclosure on the Company's material properties in this MD&A has been prepared in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") of the Canadian Securities Administrators, the estimates of mineral resources and ore reserves are disclosed using the categories under JORC. There is no material difference between JORC and The Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Definition Standards for Mineral Resources and Mineral Reserves" adopted by the CIM Council on 11 December 2005. 

History and Strategy

EMED Mining (AIM: EMED, TSX: EMD) is committed to the development of metal production operations in Europe, with an initial focus on copper and gold. The strategy is to evaluate and prioritise metal production opportunities in several jurisdictions throughout the well-known belts of base and precious metal mineralisation in the European region.

In Spain, the Group's Rio Tinto Copper Project provides an excellent opportunity to bring a large copper mine back into production at a relatively low total cost as it already has an established open-pit mine, processing plant and other infrastructure. Other mineral deposits on the same property are also earmarked for potential redevelopment and a drilling program is planned to coincide with the restart of the Cerro Colorado Open Pit operations.

In Slovakia, the Biely Vrch deposit at the Group's Detva Gold Project is a potential greenfields development of an open-pit gold mine.

EMED Mining has earlier-stage activities in Cyprus via its 95%-owned subsidiary, and in Saudi Arabia via 15%-owned associate KEFI Minerals Plc. In 2009, KEFI Minerals formed the Gold and Minerals Joint Venture ("G&M") in Saudi Arabia with a local Saudi partner to explore for gold and associated metals in the Arabian Shield. To date, Kefi Minerals, in conjunction with its joint venture partner (Abdul Rahman Saad Al-Rashid & Sons Company Limited ("ARTAR")) has conducted preliminary regional reconnaissance and currently has 19 Exploration Licence Applications (ELAs), of which 4 have been granted.

EMED Mining is managed by a well-qualified, multi-cultural team drawn initially from Australia and the United States of America and now predominantly comprised of European citizens. The main priority for the short term is to safely and efficiently start copper production at the Rio Tinto Copper Project once EMED Mining has completed the regulatory approval process, financed the start-up and obtained shareholder approval.

Overview of Operations and Significant Events

The Company, listed on AIM in May 2005 and on the TSX in December 2010 continues to be dependent upon cash generated from equity financings to fund its activities.

The ownership of the Company consists of substantial international mining investment specialists including the following:

·; The Board and senior management who come from Australia, Canada, the United States of America and Europe include mining engineers, metallurgical engineers, financiers and management specialists with extensive experience in project development and operations;

·; Astor Management AG ("Astor"), a large Swiss-based metals and commodities investments group.

·; Rand Merchant Bank ("RMB"), a large South African mining bank with specialist mine investment teams based in Australia, United Kingdom and the United States of America;

·; RBC Asset Management, a leading Canadian funds management company;

·; Resource Capital Fund IV L.P. ("RCF"), the world's largest group of mine development investment funds, is based in the United States of America with offices in Australia and Canada;

·; RK Mine Finance (Master) Fund II LP ("Red Kite"), a New York based copper trading and investment company;

·; Rumbo 5-Cero S.L. ("Rumbo"), part of an established diversified Andalucían investment group.

·; Yanggu Xiangguang Copper Co. Ltd ("XGC"), a large copper smelting group based in China which has agreed to be a cornerstone customer and project financier for the Rio Tinto Copper Project; and

Since the 2012 year-end, the following developments are particularly noteworthy:

·; Spain - Rio Tinto Copper Project:

o An Updated NI 43-101 Independent Technical Report was published reporting that capital and operating cost estimates are consistent with recent guidance published by the Company;

o The Andalucian Government's Department of Industry formally notified the remaining conditions for Administrative Standing (or "Titularidad Administrativa"), (the administrative approval of the Company's mineral rights) namely: (a) a preliminary report from technical agency CEDEX on the viability of the project after taking into account restrictions imposed on the tailings management system, and (b) approval by the Andalucian Government's Department of Environment of the Unified Environmental Authorisation ("AAU"), being the environmental plan;

o The Company has implemented the required civil liability insurance policy for the tailings facility;

o The Andalucian Government completed the public comment period for the "Class B Resources", the recycling of precious-metal rich tailings via the Company's joint venture with local investment group Rumbo 5-Cero;

o The Company incorporated the EMED Foundation for Economic Diversification, which will commence operations with mine production.

·; Slovakia- Detva Gold Project

o The national Mining Bureau is considering whether to ratify the approval of the Mining Lease Area.

·; Corporate

o The Cyprus banking crisis had no notable impact on the Company.

Mineral Exploration and Development Property Interests

Spain - Rio Tinto Copper Project

EMED Mining, via its wholly-owned subsidiary EMED Tartessus, owns 100% of the Rio Tinto Copper Project in Andalucía, Spain. The Group is the owner of the mine, the mineral rights and the processing plant and is complying with all regulatory requirements to be awarded the permits necessary to commence construction and ultimately restart operations. For construction, these are principally the AAU and the Administrative Standing. For operations, these are principally the Final Restoration Plan and approval of the operating project (the "Mining Permit" or "Exploitation Permit").

As detailed in the updated NI 43-101 Technical Report issued February 2013, key anticipated production parameters for the Rio Tinto Copper Project are:

·; Ramp-up to a 9 million tonne per annum ("tpa") throughput over a two-year period;

·; Open-pit mine with average waste-to-ore strip ratio of ~ 1.1 to 1;

·; Contained copper-in-concentrate averaging ~37,000 tpa;

·; Measured and Indicated Resources = 203 million tonnes at 0.46% copper, containing 933,000 tonnes of copper (inclusive of Ore Reserves);

·; Ore Reserves = 123 million tonnes at 0.49% copper, containing 600,000 tonnes of copper; Mine life > 14 years.

·; Project cost estimates will require refinement when permitting conditions are finalised and after detailed engineering is duly completed and procurement arranged.

Steps to Restart Copper Production

Mining activities are the responsibility of the Autonomous Communities of Spain (i.e. individual states, which in the case of the Rio Tinto Copper Project is Andalucía) and the provincial government within those states (for the Rio Tinto Copper Project, this is the province of Huelva). For the Rio Tinto Copper Project, the Huelva Territorial division of the Ministry of Economy, Innovation, Science and Employment ("CEICE", as it is now known) of the Junta de Andalucia (the "Andalucian Government") is the substantive regulatory body that has the authority to approve the restart of mining operations which requires the granting of Administrative Standing (administrative approval of the transmission of the mineral rights held by EMED since 2007), approval of the final restoration plan and the operating license ("Mining Permit"). This is the case except for explosive permits which are governed by the Central Government of Spain.

Approvals are also required from:

(i) The Huelva Territorial Division of the now-renamed Ministry of Agriculture, Fishing and Environment ("Environment"), which specifically are the:

1. AAU (which includes the Environmental Impact Statement ('EIS') and Final Restoration Plan amongst other environmental permits); and

2. Concession required for public domain water, and

(ii) The Huelva Territorial Delegation of the Ministry of Culture ("Culture") as various project lands are listed as cultural heritage sites. 

The steps to restarting production at the Rio Tinto Copper Project are briefly summarised as follows:

·; Receipt of the AAU, Administrative Standing, approval of the Final Restoration Plan and granting of the Mining Permit. In this regard:

o The AAU was resubmitted in February 2012. As required by administrative procedure, the Company´s AAU was submitted for public review for a 30-day period in June 2012 which concluded on July 24 2012. The Company has completed its responses to the public comments received, none of which were considered material. Once all review processes are finalised, the Company expects to receive its AAU authorisation conditional on certain conditions which it believes will have been taken into account in project planning.

o Once the AAU is approved, the final restoration plan which was submitted to CEICE in 2010 can be updated to reflect any final conditions contained in the AAU.

o Between August and December 2012 the Company responded to the final Andalucian Government requests for updates to technical and economic information originally submitted in 2010 as part of the Administrative Standing request;

o Engineering being completed now that the authorities have informally agreed permitting conditions. The only material aspect of project approval under discussion is the conditions to be attached to the operation and closure of the tailings deposit, the due diligence for which is being completed in accordance with the recommendations of CEDEX, Spain´s national civil engineering review agency. 

o The technical team has expanded the water management and environmental plans to reflect the enlarged land footprint and the Government's new river management policies. The relevant water concession application is currently being updated to reflect those changes made to the water management plans and will be resubmitted in due course.

o The Company received conditional approval from Culture in December 2010 which must now be updated to take into account the expanded restoration footprint.

The restart is expected to be straightforward from an operational perspective, with an established infrastructure and processing facility that can be readily restarted, albeit with aspects to be updated to incorporate mining industry improvements that have been developed over the past 20 years.

It is also anticipated that the following project features will also be revised in due course after exploration drilling has been conducted:

·; Ore Reserves (Proven and Probable - 123 million tonnes at 0.49% copper, containing 600,000 tonnes of copper) are currently based on a cut-off grade of 0.2% copper which was derived using a copper price of $2.00/lb ($4,400/tonne). In due course, this needs re-optimisation in light of the planned drilling within the open pit;

·; Mineral Resources (Measured plus Indicated - 203 million tonnes at 0.46% copper, containing 933,000 tonnes of copper) which was derived using a copper price of $3.00/lb ($6,600/tonne) for the Cerro Colorado open pit. This needs updating in light of the planned drilling of the open pit and the underground deposits on the property.

Slovakia - Detva Gold Project

EMED is advancing its 100%-owned Biely Vrch gold deposit, which is a potential greenfields development of an open pit gold mine. Based on a cut-off grade reflecting an US$800/oz gold price, the Biely Vrch gold deposit contains Indicated Resources of 461,000 ounces (17.7 million tonnes at 0.81g/t gold) and Inferred Resources of 596,000 ounces (24.0 million tonnes at 0.77g/t gold).

The Group has been granted Protective Deposit Status over the Biely Vrch gold deposit and an application for a Mining Lease Area has been made. Thirty-eight state, regional and local regulatory bodies consented to the Company being granted its Mining Lease Area. On 19 November 2012 the District Mining Bureau has granted the Mining Lease Area to the Company. The decision is now being under ratification at the Central Mining Bureau level and ratification is expected.

KEFI Minerals Plc

KEFI Minerals Plc is a gold and copper exploration company with projects mainly in the Kingdom of Saudi Arabia. It commenced trading on AIM in December 2006. EMED Mining contributed initial assets and currently has a 15.0% shareholding. 

In Saudi Arabia, KEFI Minerals Plc has a joint venture with leading Saudi construction and investment group ARTAR. This joint venture already has 4 licences granted, with 15 Exploration Licence Applications (ELAs) pending in Saudi Arabia.

Selected Financial Data

The table below summarises selected consolidated financial information for the Group's unaudited interim condensed consolidated financial statements for the three months ended 31 March 2013 and 31 March 2012. The audited consolidated financial statements are for the year ended 31 December 2012.

Three months ended 31 March 2013 compared to the three months ended 31 March 2012

EMED Mining recorded a consolidated loss of €3.0 million (or (0.25) cents per share) for the three months ended 31 March 2013, unchanged from the consolidated loss of €3.0 million (or (0.34) cents per share) for the three months ended 31 March 2012.

During the three months ended 31 March 2013, the Group expended €0.2 million on exploration expenditure, unchanged from expenditures made in the three months ended 31 March 2012.

During the three months ended 31 March 2013, the Group expended €0.8 million on care and maintenance at the Rio Tinto Copper Project (31 March 2012: €1.3 million). The decrease in care and maintenance expenditure is primarily due to lower activity at the Rio Tinto Copper Project.

Other operating expenditure for the three months ended 31 March 2013 amounted to €1.9 million (31 March 2012: €1.6 million), representing corporate costs and include outlays associated with a listed public company such as shareholder communications, legal costs, on-going listing costs and fees, administrative salaries and travel.

Other operating expenditure for the three months ended 31 March 2013 amounted to €1.9 million (31 March 2012: €1.6 million), representing corporate costs and include outlays associated with a listed public company such as shareholder communications, legal costs, on-going listing costs and fees, administrative salaries and travel.

Net finance costs for the three months ended 31 March 2013 were €0.1 million (31 March 2012: €0.1 million).

Net foreign exchange losses of €0.1 million incurred during the reporting period were the result of movements in exchange rates on cash balances held by the Company (31 March 2012: €0.1 million).

During the first quarter of 2013, €0.04 million was charged to the statement of comprehensive income as a result of options vested (31 March 2012: €0.07 million).

Total assets were €75.4 million as at 31 March 2013 compared to €59.2 million as at 31 March 2012, an increase of €16.2 million. The Group's significant assets are its mineral properties and mining plant, property and equipment at the Rio Tinto Copper Project. The increase is mainly due to an increase in land (up by €17 million) as a result of land purchases during 2012 which consolidated the Company's operation at Rio Tinto, plant and machinery (up by €4.8 million), intangible assets (up by €3.3 million) and a reduction in cash (down by €9.5 million).

Receivables as at 31 March 2013 of €1.2 million are primarily amounts receivable in respect of VAT due from authorities in Cyprus and Spain of €1 million and deposits of €0.2 million. As at 31 March 2012, receivables were €1.2 million (VAT: €0.6 million).

Current liabilities were €7.6 million as at 31 March 2013 compared to €5.1 million as at 31 March 2012, an increase of €2.5 million. This increase is largely due to the current liability debt with the Department of Social Security, trade payables and accruals and other payables amounting to €4.1 million, €1.7 million, and €1.8 million respectively, compared to €3.5 million, €0.8 million, and €0.8 million respectively as at 31 March 2012.

Deferred tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements.

Currently enacted tax rates are used in the determination of deferred tax. Deferred tax assets are only recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. As at 31 March 2013, the Group's deferred tax assets stood at €6.5 million (31 March 2012: €6.3 million).

Summary of Quarterly Results

In 1Q13 the Group recorded a consolidated loss of €3.0 million, compared with a 4Q12 consolidated loss of €3.2 million, a 3Q12 consolidated loss of €3.2 million and a 2Q12 consolidated loss of €2.1 million. The decrease in the care and maintenance expenditures expensed in 1Q13 was offset by the increase in other operating expenses.

During 1Q13, the Group expended €0.2 million on exploration (4Q12: €0.3 million; 3Q12: €0.4 million; 2Q12: €0.3 million). Exploration expenditures were relatively constant throughout these periods and was largely attributable to exploration activities in Slovakia.

During 1Q13, the Group incurred expenditure on care and maintenance at the Rio Tinto Copper Project of €0.8 million (4Q12: €0.9 million; 3Q12: €2.1 million; 2Q12: €1.3.million). Expenditure varied between quarters primarily due to levels of activity as required by weather and other conditions prevailing at the time.

Other operating expenses for 1Q13 was €1.9 million (4Q12: €0.8 million; 3Q12: €0.9 million; 2Q12: €1.1 million). These costs are corporate costs which include costs of being a listed public company such as shareholder communications, on-going listing costs, legal costs, administrative salaries and travel. The increase of other operating expenses in 1Q13 was mainly due to advisory costs incurred for the financing of the project restart and timing differences in costs incurred.

Net finance costs for 1Q13 were €0.1 million (4Q12: €0.1 million; 3Q12: €0.1 million; 2Q12: €0.1 million).

Financing Activities

In 2013, cash flows used in operating activities decreased mainly due to a decrease in trade and other receivables, as a result of the VAT refund from the Spanish authorities on land purchased in Spain for the operation of the Rio Tinto Copper Project.

In 2013, cash flows used in investing activities were mainly due to €1.1 million investment in property plant and equipment (31 March 2012: €0.2 million) and due to €0.5 million investment in intangible assets (31 March 2012: €0.6 million).

In 2013, the Group obtained net €NIL million from share issues (31 March 2012: €11.3 million).

The gross equity raisings are summarised in the table below in chronological order:

Note: Currency conversion based on an exchange rate of C$1.00 = GBP0.6268.

On 3 May 2010, the Company completed a private placement of 83,571,429 Ordinary Shares at a price of GBP0.105 per Ordinary Share. The total proceeds received from the private placement were approximately €10.1 million.

On 20 December 2010 in conjunction with the TSX listing, EMED Mining raised a total of C$32.7 million (GBP20.5 million) via an Initial Public Offering in Canada and a concurrent Private Placement in the UK.

In January 2011, and as a result of a subsequent exercise of the over-allotment option granted to the Company's Canadian Agents, on its Canadian Initial Public Offering, C$2.4 million (GBP1.5 million) was raised.

On 28 December 2011 RCF and RMB converted the outstanding principal amount of the Convertible Loan Facility (see below) of US$8.5 million into new ordinary shares at the conversion price of 4.13 pence per ordinary share and a total of 145,504,558 new ordinary shares were issued.

In March 2012, the Company completed a private placement with XGC, for an aggregate funding package of US$30 million. XGC provided US$15 million equity by subscribing for 105,378,159 new ordinary shares in the Company at a price of 9 pence per share, representing a 10% ordinary equity position on a fully diluted basis.

XGC also provided a conditional agreement to underwrite or arrange a standby loan facility of US$15 million in connection with the restart of commercial production at the Rio Tinto Copper Project. In August 2012, XGC made an additional investment of US$5 million by subscribing for 32,247,662 ordinary shares of 0.25 pence at a price of 10 pence per share bringing its interest in the Company to 11% on a fully diluted basis. EMED Marketing Limited has granted XGC off-take rights over 30% of current reported copper reserves, at market prices.

In August 2012 the Company purchased land plots from Rumbo covering part of the tailings dams at the Rio Tinto Copper Project for €10 million, €4.5 million in cash and €5.5 million by the allotment of 48,549,234 new ordinary shares of 0.25p each at 8.98 pence per share.

The cash portion was funded by a private placement in Canada and the UK of 41,672,243 Ordinary Shares at a price of GBP0.085 per Ordinary Share raising total proceeds of €4.5 million.

Also in August 2012, the Company purchased land plots covering the main tailings dam wall at the Rio Tinto Copper Project from Inland Trading 2006, S.L. ("Inland"), for €5 million, €1 million in cash, €1.5 million payable in cash in eight equal instalments over a period of 24 months and €2.5 million by the allotment of 18,511,675 new ordinary shares of 0.25p each in at 10.7 pence per share.

In addition, EMED Mining has been granted options by Inland and Construcciones Zeitung, S.L. ("Zeitung") to acquire additional plots of land in the surrounding district (the "Option Lands"), exercisable within four years at an aggregate price of €9 million. The Option Lands are of interest to the Company because of the scale of potential expansion in the longer term.

The land plots acquired from Rumbo were necessary for the restart of operations at the Rio Tinto Copper Project and those plots acquired from Inland, which cover part of the main tailings dam wall, together with the Option Lands, satisfy all of the project's needs for tailings deposition from proposed operations along with the potential expansion thereof in the shorter term.

On 14 November 2012, the Company completed an agreement with a cornerstone customer, Red Kite, for an aggregate funding package of US$50 million. The agreement comprised an investment by Red Kite of US$15 million (approximately £9,447,000) in the Company by way of a subscription for a total of 63,829,787 new ordinary shares of 0.25 pence each at a price of 14.8 pence per share (equivalent approximately to US$0.235) and a conditional agreement to underwrite or arrange a standby loan facility of US$35 million in connection with the restart of commercial production at the Rio Tinto Copper Project. The Company granted to Red Kite initial off-take rights of 13.5% over the Rio Tinto Copper Project's copper production based on current reported life of mine reserves which can increase to 27% if the standby loan facility is used.

Liquidity

The Group is in the exploration and development stage and as such does not generate revenue from operations. It is the Group's goal to reach producer status and generate revenues that will significantly enhance the value of the Group and reduce the need for equity type funding to maintain its liquidity.

Financial and commodity markets continue to show volatility due to uncertainty. Nonetheless, the outlook for copper has remained positive. It is important to recognise that, while the Group is still reliant on equity funding, the commissioning of one of the Group's projects, and in particular the Rio Tinto Copper Project would move EMED into the producer category quite quickly, given the anticipated short start-up time once governmental approvals have been obtained. Upon the grant of the relevant government approvals, the Group will commence the restart at the Rio Tinto Copper Project and will need to secure additional project financing (see Mineral, Exploration and Development Property Interests - Funding).

Contractual Obligations

The following table lists, as of 31 March 2013, information with respect to the Group's known contractual obligations: 

The following table lists, as of 31 December 2012, information with respect to the Group's known contractual obligations:

Astor Management AG ("Astor") (formerly MRI) Acquisition Agreement

In September 2008, the Group moved to 100% ownership of EMED Tartessus (and thus full ownership of the Rio Tinto Copper Project) by acquiring the remaining 49% of the issued capital of EMED Tartessus. The cost of the acquisition was satisfied by issuing 39,140,000 Ordinary Shares to MRI Investment AG ("MRI") at an issue price of 21p per Ordinary Share and a deferred cash settlement of €52,999,999 (including loans of €9,116,617 owed to companies related to MRI incurred in relation to the operation of the Rio Tinto Copper Project) to be paid by the Group over six or seven years (at the option of the Company). This consideration is payable once the authorisation from the Junta de Andalucía to restart mining activities in the Rio Tinto Copper Project has been granted and the Group has secured project finance and is able to draw down funds under such facilities.

In consideration for agreeing to pay the deferred cash settlement over six or seven years and for MRI's consent to the arrangements that were entered into in connection with the Convertible Loan Facility (now repaid), the Company agreed to potentially pay further deferred consideration of up to €15,900,000 in regular instalments over the deferred consideration payment period depending upon the price of copper. Any such additional payment will only be made if, during the relevant period, the average price of copper per tonne is US$6,614 or more (US$3.00/lb). On 11 November 2011, MRI novated its right to be paid the deferred consideration to Astor.

Astor Management AG ("Astor") (formerly MRI) Acquisition Agreement - continued

As security for the obligation on EMED Tartessus to pay the deferred consideration to Astor, EMED Holdings (UK) Limited has granted a pledge to MRI Resources AG (part of the Astor Group) over the issued capital of EMED Tartessus and the Company has provided a parent company guarantee.

The funds required to make these payments, should EMED proceed with the restart of the Rio Tinto Project, would be sourced from senior project debt and from project cash flow.

Convertible Loan Facility

On 4 March 2009 the Company entered into a Convertible Loan Agreement with RCF and RMB to provide a borrowing facility of up to US$8.5 million (the 'Facility'). The Facility was arranged to provide funds for the Rio Tinto Copper Project in Spain, gold project in Slovakia and for general working capital purposes and was convertible at a share price of 4.13 pence ("Conversion Price"). On 28 December 2011, both RCF and RMB converted the outstanding principal amount of the Facility into Ordinary Shares at the Conversion Price.

Settlement Agreement with the Department of Social Security

In 2010, EMED Tartessus entered into a Settlement Agreement with the Department of Social Security for extinguishing the liens against its principal landholdings of the Rio Tinto Copper Project upon repayment of the outstanding debt in the amount of €16.9 million. EMED Tartessus has paid €6.6 million to 31 March 2013 (31 December 2012: €5.9 million), in accordance with the agreed repayment schedule. The balance outstanding at 31 March 2013 is €10.3 million.

Contingent liabilities

On 23 September 2010, EMED Tartessus ("EMEDT") was notified that the Andalucían Water Authority ("AWA") had initiated a Statement of Objections and Opening of File (the "Administrative File") following allegations by third parties of unauthorized industrial discharges from the Tailings Management Facility ("TMF") at the Rio Tinto Copper Mine in the winter months of late 2010 and early 2011. These assertions are judicial (alleging negligence) and administrative (alleging damage to the environment) in nature. At that time, the Company owned 33% of the TMF and the owners of the remaining 67% are co-defendants (Rumbo and Zeitung).

In December 2011 the judicial claims were dismissed in the initial discovery phase by the appeals Court (upholding a lower court decision) finding that the controlled discharges of excess rainwater were force majeure events carried out to protect the stability of the TMF, thereby ensuring public safety and protection of the environment (the "Court Decisions"). Given that all judicial claims were dismissed in the very early stages of the court´s investigation, no formal charges were ever made against EMEDT or against any of its Directors or Officers.

Now that the Court Decisions are final, the Administrative File, which can only result in a monetary sanction against the co-defendants, has been re-opened.

On January 2, 2013 EMEDT, Rumbo and Zeitung were notified of a Resolution of Fine and Damages (in a total amount of €1,867,958.39). In February 2013 EMEDT appealed this Resolution and separately requested a suspension of obligation to pay the proposed fine and damagespendingthe result of the underlying issue regarding the alleged discharges in question. In April 2013 EMEDT was granted its request to have suspended the obligation to pay the fine and damages in the form of a bond or other related financial instrument, and instead, as offered by the Company, the Court has agreed that the Fine and Damages amount be secured by a mortgage over certain properties owned by EMED until the final decision on the alleged discharges is known.

The Company will continue to defend its actions vigorously. In fact, no "industrial discharge" took place, but rather a force majeure controlled discharge of excess rainwater accumulated in the TMF since industrial operations ceased in the early 2000´s with no actual damage to the environment having taken place. All actions taken by the Company were conducted with full transparency and in constant communication with the Government of Andalusia.

EMEDT did all it could under the circumstances to meet its standard of care to protect the environment and public safety under the relevant legislation, as acknowledged in the Court Decisions and it is important to note was the only co-owner to do so.

It is improbable that any fine or sanction will be imposed against EMEDT once the Administrative File, reaches its conclusion in approximately 3-5 years.

As part of the acquisition cost of a 95% share in Eastern Mediterranean Minerals (Cyprus) Limited, an additional contingent consideration of €616,200 is payable by the Company to Hellenic Mining Company Ltd one month after the date on which Eastern Mediterranean Minerals (Cyprus) Limited first receives revenue of €1,027,000 from or in respect of specific exploration tenements.

Commitments

Spain

There are no minimum exploration requirements at the Rio Tinto Copper Project. However, the Group is obliged to pay municipal taxes which currently are approximately €88,000 per year in Spain and the Group is required to maintain the Rio Tinto site in compliance with all applicable regulatory requirements.

As part of the consideration for the purchase of land from Rumbo, EMED Tartessus has agreed to pay a royalty to Rumbo subject to commencement of production of $250,000 in each quarter where the average price of LME copper or the average copper sale price achieved by the Group is at least $2.60/lb. No royalty is payable in respect of any quarter where the average copper price for that quarter is below this amount and in certain circumstances any quarterly royalty payment can be deferred until the following quarter. The royalty obligation terminates 10 years after commencement of production. Commencement of production is defined as being the earlier of processing of ore at a rate of nine million tonnes per annum for a continuous period of six months or the date that is 18 months after the first product sales from the Rio Tinto Copper Project.

Additionally, if after seven years from the date of the land purchase, the Group has not obtained all necessary licenses to open and operate the Rio Tinto Copper Project, the land will be sold back to Rumbo for €1. Should the Group sell the land prior this date to a third party Rumbo shall be paid €5.5 million and the above mentioned royalty novated to the third party,

EMED Tartessus has entered into a 50/50 joint venture with Rumbo to evaluate and exploit the potential of the class B resources in the tailings dam and waste areas at the Rio Tinto Copper Project. Under the joint venture agreement EMED Tartessus will be the operator of the joint venture, will reimburse Rumbo for the costs associated with the application for classification of the Class B resources and will fund the initial expenditure of a feasibility study up to a maximum of €2 million. Costs are then borne by the joint venture partners in accordance with their respective ownership interests. Half of the costs paid by EMED Tartessus in connection with the feasibility study can be deducted from any royalty paid to Rumbo which may fall due to be paid.

At the Rio Tinto Copper Project, the Group has four year options with each of Zeitung and Inland for the purchase of certain land plots adjacent to the mine at a purchase price of €4.202 million (expiry date 31 July 2016) and €4.648 milion (expiry date 2 August 2016) respectively. The Zeitung option requires an annual option payment from the Group of €119,500 and the Inland option requires an annual payment of €130,500 which are deductable from the purchase price. In each case, half of the purchase price can be made by the issue of shares in EMED Mining based on a weighted average market price at the time of the purchase.

Slovakia

There are minimum exploration expenditure requirements for the Slovakia tenements. Tenements are granted for 4 years and over this period a minimum of 70% of the budget proposed by the Group must be spent in order to extend the tenement life for another 2 periods (4 and 2 years, respectively). The first year minimum spend is 10% of the individual tenement budget.

Slovakia - continued

Currently the official exploration budget across the Slovakian tenements, according to the exploration programs submitted to the competent Ministry of Environment, is approx. €3.9 million in total (for the period 2009 to 2015 for all 6 tenements). Annual tenement rental fees for 2013 are in the order of €56,000 this year. EMED has met its obligations to date. All annual technical and financial reports have been submitted in time.

Other

In Cyprus, there are no exploration commitments required and tenement rentals are approximately €30,000 per annum.

Off-Balance Sheet Arrangements

The Group has no off-balance sheet arrangements.

Transactions with Related Parties

The following transactions are carried out with related parties:

1. Compensation of key management personnel, which includes directors and certain senior managers.

2. Transaction with KEFI Minerals Plc ("KEFI"). EMED Mining has a 15.0% interest in KEFI and an ongoing service agreement to provide management and other professional services. The cost of providing this service to KEFI has been GBP 0.1 million per annum, which has been charged back to KEFI.

Both transactions are measured at cost and both have on-going contractual relationships.