Results for the year ended 31 March 2014

Aurasian Minerals plc

(the "Company" or "AUM")

RESULTS FOR THE YEAR ENDED 31ST MARCH 2014

AUM, the AIM listed gold exploration company focussed on South East Asia, today announces its results for the year ended 31st March 2014.

Tony Shearer, Chairman of AUM commented:

"Recent years have been very disappointing for the Company. However I am excited by the opportunity that we now have with access to Newmont's South-East Asia database and, to help us do that, a team of highly experienced people who were involved in the successful exploration programmes of Normandy Mining (which Newmont acquired in 2002), Newmont, and Anglo American Corporation.

Bruce Kay (former Head of Global Exploration for Normandy and Newmont), Jon Loraine (former Managing Director, International for Normandy and Executive General Manager Exploration and Development for MIME Holdings Ltd) and Paddy Waters (former Senior Geologist at BP Minerals, Australian Consolidated Minerals, Normandy Mining and Anglo American) have all been involved in successful exploration programmes worldwide. The initial work commits us to spend up to approximately USD450,000 this year for work to be carried out relating to Cambodia, Lao PDR and Myanmar, and possibly other countries in the region in the event that attractive opportunities come to our notice there.

The new South-East Asian project gives us a very real opportunity. It will not be easy and, in common with all exploration projects, it contains a high degree of risk. This is particularly so as we are looking to work in countries in South-East Asia that, whilst they have very promising geology, do not have much current experience of exploration; as a result their mining laws and procedures are untested."

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Chairman's Statement

The last year has been very busy. We have established a new South-East Asian gold strategy by starting a new project in Myanmar, Cambodia, Lao PDR, Indonesia and Malaysia. We have concluded an agreement with Newmont that provides us with access to their database and proprietary geochemical analysis for exploration ventures in South-East Asia. We have also reached an agreement with three highly experienced former Newmont, Normandy and Anglo American staff, who are driving this strategy. Since the year end, in recognition of this new strategy, we have changed the name of the Company to Aurasian Minerals plc. We have also, with shareholder consent, re-structured the share capital and created a new share option scheme.

The licence agreement with Newmont is for an initial term of two years and may be extended thereafter, though Newmont may terminate the agreement by giving 60 days prior written notice if its laboratory is decommissioned or sold. We will also utilize Newmont's Proprietary Bulk Leach Extractable Gold ("BLEG") technology, and a number of our BLEG samples will be processed in Newmont's laboratory located in Perth, Western Australia. In consideration, we will pay the reasonable costs associated with processing the BLEG samples, and will grant to Newmont a 1% net smelter royalty over any property with a certified resource of 1 million or more ounces of gold equivalent in which we subsequently take an interest in pursuant to its use of the database or BLEG sample locations at any time during the period of the licence agreement or up to two years thereafter.

I have visited Australia twice in 2014 to discuss the new venture with our new colleagues and on one of those occasions was joined by Chris Goss and Patrick Gorman. The new team has made a great deal of progress over the last six months in organising and combining the data that exists, and we are starting to obtain a really good understanding of the local geology. We are turning our attention to understanding the different business climates, laws and commercial environments that exist in these countries, and how best we can obtain the tenements that we want in these areas. This will need to be handled carefully, and we will probably progress at quite a slow pace initially; the majority of these countries are only starting to open up to exploration work.

During the year we sold our 8% interest in the Crater Mountain joint venture for a cash payment of AUD 200,000 (£110,856), which we received, after the year-end, on 3rd April 2014. Since the year end Newcrest notified us of its decision to withdraw from the Manus Island joint venture, with effect from 16th July 2014. We have provided fully against the £500,000 carrying value of our investment in this joint venture in the accounts set out below.

In addition to our new venture in South-East Asia, we also have at present an interest in the following projects:

Papua New Guinea: Wamum

We have accepted, subject to contract, an offer of USD750,000, payable in cash, to purchase our 12.14% contributing interest in the Wamum project. One of the conditions is that Barrick completes its negotiations for a joint venture involving its 87.86% interest. These negotiations are still progressing, albeit slowly.

Papua New Guinea: Morobe

We have disposed of Exploration Licence EL 1365 (which is over 143 square kilometres) to a subsidiary of Niuminco Group Ltd for a consideration of a 3% Net Smelter Royalty, which is net of any royalty which Niuminco pays to Newmont and which is payable on any production from the tenement. The transaction is conditional upon registration of the transfer by the Papua New Guinea Mineral Resources Authority and approval by the Minister for Mining.

Papua New Guinea: Manus Island

In the middle of June Newcrest advised us that they are withdrawing from this joint venture with effect from 16th July 2014. We are considering what options, if any, exist for these tenements. Due to the considerable uncertainty, we have provided fully against the £500,000 carrying value of our investment in this joint venture in the attached accounts to 31st March 2014.

Vietnam: Pu Sam Cap

We retain a 10% undilutable free-carried non-contributing interest through to the commencement of commercial production in the Pu Sam Cap project, in which Vietnamese government parties hold 30% and Bill Howell, a former director, holds the remaining 60%.

Bill Howell's team has continued to carry out geological mapping, sampling and testing. Bill believes that this work indicates possible deep porphyry-style copper-gold mineralization, which, if proved, could be amenable to block-caving. The availability and suitability of drilling equipment to test the prospect is being assessed.

Results

The Group made a consolidated net loss for the year of £821,000 (2013: loss of £4,885,000). The Directors do not recommend the payment of a dividend (2013: nil).

Our interest in Crater Mountain was sold during the year and post year end we received AUD200,000 for our holding. We have also provided £500,000 as a full provision against our investment in the Manus Island joint venture. Our interest in Wamum is recorded at its open market value of USD750,000.

Financial position

The Board has considered AUM's current cash balance and also looked very carefully at our expected expenditure to the end of the calendar year 2015. There are many imponderables and there is no certainty that our forecasts will be correct. In particular any of our projects or developments may require additional funding. But on these assumptions the Board considers that the Group has adequate financial resources to see it through to the end of calendar year 2015.

Composition of the Board and Officers

The Board comprises Chris Goss and Patrick Gorman (both Non-Executive Directors) and me (Non-Executive Chairman).

The last couple of years have been very difficult, and I am very grateful to all my colleagues for all their wisdom, time and commitment.

Advisory Board

The Advisory Board provides the Group Board with additional specialist technical skills and knowledge, and comprises Dave Royle (Chairman), John Catchpole and Bill Howell. It continues to meet when needed and has provided key specialist expertise to the Group Board, and I am very grateful to its members for their invaluable help.

Conclusion

Recent years have been very disappointing for the Company. However I am excited by the opportunity that we now have with access to Newmont's South-East Asia database and, to help us do that, a team of highly experienced people who were involved in the successful exploration programmes of Normandy Mining (which Newmont acquired in 2002), Newmont, and Anglo American Corporation. Bruce Kay (former Head of Global Exploration for Normandy and Newmont), Jon Loraine (former Managing Director, International for Normandy and Executive General Manager Exploration and Development for MIME Holdings Ltd) and Paddy Waters (former Senior Geologist at BP Minerals, Australian Consolidated Minerals, Normandy Mining and Anglo American) have all been involved in successful exploration programmes worldwide. The initial work commits us to spend up to approximately USD450,000 this year for work to be carried out relating to Cambodia, Lao PDR and Myanmar, and possibly other countries in the region in the event that attractive opportunities come to our notice there.

The new South-East Asian project gives us a very real opportunity. It will not be easy and, in common with all exploration projects, it contains a high degree of risk. This is particularly so as we are looking to work in countries in South-East Asia that, whilst they have very promising geology, do not have much current experience of exploration; as a result their mining laws and procedures are untested. Shareholders should recognise that there is some possibility that we will lose our investment.

I hope that you will be able to attend the Annual General Meeting on 30th July when my colleagues and I hope to meet you and to update you.

Tony Shearer

Non-Executive Chairman

2nd July 2014

Consolidated income statement

For the year ended 31 March 2014

Consolidated statement of comprehensive income

Consolidated balance sheet

As at 31 March 2014

Consolidated statement of cash flows

For the year ended 31 March 2014

Consolidated statement of changes in equity

For the year ended 31 March 2014

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 March 2014 or for the years ended 31 March 2013 or 31 March 2012, but is derived from those accounts. The financial statements for 2014 will be delivered to the Registrar of Companies prior to the Company's Annual General Meeting. The auditors have issued an unqualified report on the 2014 accounts.

2. Summary of significant accounting policies

a) Basis of preparation

These 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 March each year.

b) Intangible fixed assets

Deferred exploration and evaluation costs

Exploration and evaluation (E & E) expenditure costs comprise costs associated with the acquisition of mineral rights and mineral exploration, including those incurred through joint operations, and are capitalised as intangible assets pending determination of the technical and commercial feasibility of the project. They also include certain administrative costs that are allocated to the extent that those costs can be related directly to operational activities.

If an exploration project is deemed successful based on feasibility studies, the related expenditures are transferred to development and production (D & P) assets and amortised over the estimated life of the ore reserves on a unit of production basis. Where a project is abandoned or considered to be no longer economically viable, the related costs are written off in the income statement.

To date the Group has not progressed to the development and production stage in any areas of operation.

3. Dividends

The directors do not recommend the payment of a dividend (2013: nil)

4. Intangible fixed assets

In the middle of June 2014 Newcrest advised the company that they were withdrawing from the Manus Island project with effect from 16th July 2014. We are considering what options, if any, exist for these tenements. Due to the considerable uncertainty, we have provided fully against the £500,000 carrying value of our investment in the Manus Island project as at 31st March 2014.

The Group have agreed to dispose of the investment in Wamum for USD750,000 and have therefore transferred the value of the investment to exploration and evaluation assets held for sale.

The Group have agreed to dispose of the investment in Crater Mountain for AUD200,000 and at the year-end the amount is in other receivables.

5. Annual Report

The Annual Report will be available on the Company's website at www.aurasianminerals.com.

6. Annual General Meeting

The Company's Annual General Meeting will be held at the Gowlings (UK) LLP, 125 Old Broad Street, London, EC2N 1AR at 11:00am on Wednesday 30th July 2014.