Strategic Technical Partnership

21 October 2013

Alexander Mining plc

('Alexander' or the 'Company')

Strategic Technical Partnership with Ebullio to Create a Major Mining Company in Turkey

· Ebullio, a significant Alexander shareholder, has entered into a conditional agreement to acquire all the assets in Turkey of Red Crescent Resources Limited

· Assets comprise copper and zinc projects at production, development and exploration stages

· Projects have significant potential for Alexander's mineral processing technology

· Strategic technical partnership, on commercial terms to be agreed, with Ebullio

· Favourable testwork already reported by Alexander for Hakkari Zinc Project

· Ebullio's objective is to create the most efficient and lowest cost producer of copper and zinc in Europe and the largest producer in Turkey by the year 2023

Alexander is delighted to announce that Ebullio Commodities Limited ('Ebullio' - part of the Ebullio Group) will announce, later today, a transaction that on completion would significantly accelerate the first commercial adoption of Alexander's technology in Turkey. Ebullio Resources Fund, also part of the Ebullio Group, owns a 11.85% shareholding in Alexander.

Ebullio has entered into a conditional agreement to acquire all the assets of Red Crescent Resources Limited ('RCR'), a Canada based junior base metals focused mineral exploration and mine development company with mining operations and base and precious metals assets with great potential in Turkey for US$10m in cash and shares, and in addition Ebullio would also settle certain outstanding debts of Red Crescent Resources and its subsidiaries. The acquisition is subject to various conditions being satisfied, including obtaining certain third party consents and the entering into of definitive agreements. At the current time there is no certainty that the acquisition will take place.

Martin Rosser, Chief Executive Officer, said:

"We have made no secret of the outstanding potential for our technology in Turkey. The mutually beneficial relationship with Ebullio, and the completion of its RCR transaction, creates a transformational opportunity for Alexander to achieve the major commercial adoption of its technology in Turkey, and elsewhere. We are delighted to be working closely together."

Lars H Steffensen, Executive Managing Partner, Ebullio Capital Management LLP said of the RCR transaction:

"This is a fantastic opportunity for our investors and organisation as it is expected to contribute to the development efforts for an exciting new generation of copper and zinc production in Europe at low cost and with minimal environmental impact."

The RCR assets all have excellent potential for the use of Alexander's breakthrough AmmLeach® and HyperLeach® mineral processing technologies.

RCR, a listed company on the Toronto Stock Exchange (RCB:TSX) and on the Frankfurt Stock Exchange (FRA:R70), holds through its 100% owned Turkish subsidiary RCR Holding A.S. (RCR), several significant projects in Turkey, notably: Hakkari Zinc (in production), Tufanbeyli Zinc (pre-production stage) and Sivas Copper (exploration stage).

Ebullio intends to work in technical partnership with Alexander to use at full commercial scale, and on commercial terms to be agreed, its proprietary technology. Ebullio's objective is to become a significant, efficient and low cost producer of copper and zinc in Europe, and the largest producer in Turkey by the year 2023.

The acquisition would reinforce Ebullio's commitment to investment in Turkey and the assets acquired from RCR would sit alongside its other base and precious metals assets.

Alexander's technology has the potential to revolutionise the extraction processes for many base metals deposits by reducing capital costs, enhancing operating margins and enabling production of metal at the mine site. It has built up a target list of potentially amenable deposits/projects, especially for copper and zinc, in many different countries around the world.

The assets which would be acquired by Ebullio from RCR are summarised below:

Hakkari Zinc Project

The Hakkari Zinc Project is located in the Hakkari and Şırnak provinces of south-eastern Turkey.

Alexander has already reported favourable AmmLeach® amenability testwork results for the recovery of zinc from samples provided by RCR from its Hakkari Zinc Project. The samples were of a type of common zinc oxide/non sulphide mineralisation that occurs in other parts of Turkey (including Tufanbeyli) and the rest of the world.

The Hakkari testwork showed that zinc recoveries of at least 80% should be possible once the pre-treatment and leaching conditions are optimised. The completion of these amenability tests has shown that AmmLeach® could be used for leaching zinc from the Hakkari ore to produce either zinc metal or an intermediate zinc oxide product.

RCR has focused on getting the Hakkari zinc mining operation to become a cash generating asset as quickly as possible. However, according to a NI 43-101 Technical Report prepared by MSA Group in July 2013, the potential for defining additional new resources and upgrading currently defined resources is regarded as significant. Small-scale informal exploitation of high grade non-sulphide zinc-lead mineralised zones has been on-going for a long time. In excess of 600,000t of zinc-lead material have been officially recorded as sold under contracts through traders with typical grades (certified by SGS and Alfred Knight Laboratories) ranging from 25% to 40% zinc and 4% to 8% lead. A significant proportion of this material has been mined from areas adjacent to and between the RCR licences.

Sivas Copper Project

The property covers an area of approximately 5,240 hectares in the Sivas Region of east Central Turkey. Although more exploration, including drilling, is required, extensive work has already been performed on this property, including by Falconbridge/Noranda (now part of GlencoreXstrata) in the period 2001/2002.

Falconbridge prepared an internal report which concluded that the property was prospective for the discovery of significant tonnages of copper bearing materials, including potential by-products such as gold, nickel and cobalt. Falconbridge stated that the MZ target area had the potential to host a deposit of 200 Mt @ 1.98% copper (3.96Mt copper contained) and the SEZ zone had the potential to host a 100 Mt deposit @ 2.74% copper (2.74Mt copper contained).

Tufanbeyli Zinc Project

Tufanbeyli is located about 15km east of the town of Tufanbeyli in Adana province. It is 450km south-east of the capital Ankara.

According to a NI 43-101 Technical Report prepared in July 2013 by MSA Group, the property hosts five prominent zinc prospects of which two (Akҫal and Belbaşi) were mined on a small scale between 1985 and 1998, producing an estimated 210,000 tonnes of material with grades in the range 20% to 40% zinc.

Significant potential exists to define multiple deposits with lower grade but higher tonnage. Potential also exists to define sulphide resources at depth.

Forward Looking Statements

This news release may contain forward looking statements, being statements which are not historical facts, including, without limitation, statements regarding potential mineralization, exploration results, resource or reserve estimates, anticipated production or results, sales, revenues, costs, "best-efforts" financings or discussions of future plans and objectives. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. The Company disclaims any intention or obligation to revise or update such statements unless required by law.

ENDS

About Ebullio

Ebullio was established in 2007 and manages a range of funds and SPVs focused on commodities and natural resources. Ebullio's FED Commodity Futures Fund was ranked number 1 by Eurohedge for returns in July 2013. Ebullio Capital Management LLP is authorised and regulated by the FCA - reg no 486062.

For further information, visit www.ebullio.com.

For further information please contact: 

Martin Rosser Matt Sutcliffe

Chief Executive Officer Executive Chairman

Mobile: + 44 (0) 7770 865 341 Mobile: +44 (0) 7887 930 758

Alexander Mining plc

1st Floor

35 Piccadilly

London

W1J 0DW

Tel: +44 (0) 20 7292 1300

Fax: +44 (0) 20 7292 1313

Email: [email protected]

Website: www.alexandermining.com

Public/Media Relations

Britton Financial PR

Tim Blackstone

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