Anglo Asian Mining : Interim results 2023

26 September 2023

Anglo Asian Mining plc

Interim results for the six-months to 30 June 2023

FY 2023 Production Guidance at 30,000 to 34,000 gold equivalent ounces

Anglo Asian Mining plc ("Anglo Asian", the "Company" or the "Group"), the AIM-listed copper, gold, and silver producer in Azerbaijan announces its interim results for the six-months ended 30 June 2023 ("H1 2023" or the "Period"). The Group's performance in the Period was in line with expectations given the declining grades of the Gedabek open pit. The Group also released its strategic plan to become a mid-tier copper focused miner and double its production.

The curtailment of the Group's agitation leaching and flotation processing from the beginning of August presented the Group with significant challenges in the latter half of the year. The report from Micon International Co Limited ("Micon") containing the results of the environmental inspection is currently being finalised.

Financial highlights

• Total revenues of $30.8 million (H1 2022: $31.5 million)

• • Lower gold bullion sales of 10,506 ounces (H1 2022: 11,273 ounces) partially offset
    by a higher average gold sales price of $1,939 per ounce (H1 2022: $1,901 per ounce)
  • Copper concentrate sales increased to $10.4 million (H1 2022: $9.8 million)
• Profit before taxation of $1.4 million (H1 2022: $5.7 million)
• • Cost of sales increased by $4.8 million due to the increased costs of processing lower grade ore
  • Profit before taxation includes a charge of $0.2 million (H1 2022: $1.6 million) in respect of the Group's share of the loss of Libero Copper & Gold Corporation
• Further investment in Libero Copper & Gold Corporation of $0.6 million (H1 2022: $2.8 million)
• All-insustaining cost ("AISC") of gold production increased to $1,357 per ounce (H1 2022: $983 per ounce) due to lower gold production
• Free cashflow was a net outflow of $9.8 million (H1 2022: $13.2 million)

• $6.6 million capital expenditure and mine development (H1 2022: $4.8 million)

• • $3.8 million on exploration and evaluation activities (H1 2022: $2.4 million)
• Cash of $9.6 million as at 30 June 2023 (31 December 2022: $20.4 million) and no bank debt
• No interim dividend declared for 2023 due to curtailment of processing subsequent to the Period end

Operational highlights

• Total production of 23,391 GEOs (H1 2022: 28,772 GEOs) due to lower gold grades at Gedabek
  o Gold production of 14,608 ounces (H1 2022: 20,906 ounces)
  o Copper production of 1,860 tonnes (H1 2022: 1,283 tonnes)
  o Silver production of 44,576 ounces (H1 2022: 99,548 ounces)
• Construction of Gilar and Zafar mines commenced although development was stopped between August and September
  o Development expected to be restarted in October
• Capacity of flotation plant increased to provide operational flexibility and process the future increased rates of production
• FY 2023 production guidance of between 30,000 to 34,000 gold equivalent ounces

• Decrease as a result of curtailment of agitation leaching and flotation processing since the beginning of August 2023
• Only heap leach production expected to be carried out between August and December 2023
• Assumes restart of agitation leaching and flotation processing in the first quarter of 2024

Curtailment of agitation leaching and flotation processing in August 2023

• As previously announced, the Company's agitation leaching and flotation processing have been curtailed since the start of August 2023
• Heap leaching continues as normal with 3,684 ounces of gold produced from 1 July to 22 September 2023
• Development of the Gilar and Zafar mines delayed due to blasting suspended in August and September
• Micon commissioned to carry out a health, safety and environmental management review of tailings dam management at Gedabek

• • The report of the environmental inspection is currently being finalised
• Until the Micon report is finalised, and the Group is able to restart full operations, there is a material uncertainty as to the Group's ability to continue as a going concern

Anglo Asian CEO Reza Vaziri commented:

"Our results for the Period were satisfactory, and within expectations, given that we were predominantly only mining from our open pit mine. The ore mined contains reducing gold grades as the mine approaches the end of its life. However, copper production increased as the processing capacity of our flotation plant was increased and a higher proportion of the capacity of our crushing and grinding circuits was utilised to provide it with feedstock.

"The curtailment of our agitation leaching and flotation processing whilst an environmental inspection was carried out, whilst regrettable, was understandable. The Company has fully cooperated with all Government requests to ensure the environmental inspection was carried out properly and to expedite other related matters. The report by Micon of the environmental inspection is currently being finalised.

"Given the curtailment of agitation leaching and flotation processing, we have also revised our production guidance for the year to between 30,000 and 34,000 gold equivalent ounces. This guidance assumes agitation leaching and flotation processing will not be restarted until 2024.

"We published our growth strategy during the Period, which we believe is an achievable plan to transition to mid-tier producer status with copper as our principal commodity. We remain committed to our growth strategy, and whilst the curtailment of processing has led to certain implementation delays, we are entirely focused on, and confident of, achieving mid-tier production in the medium term."

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article

• of Regulation (EU) No 596/2014, which was incorporated into UK law by the European Union (Withdrawal) Act 2018, until the release of this announcement.

For further information please contact:

Reza Vaziri	Anglo Asian Mining plc	Tel: [phone]
Bill Morgan	Anglo Asian Mining plc	Tel: [phone]

Stephen Westhead	Anglo Asian Mining plc	Tel: [phone]
Ewan Leggat	SP Angel Corporate Finance	Tel: [phone]
Adam Cowl	LLP
	Nominated Adviser and Broker
Charlie Jack	Hudson Sandler	Tel: [phone]
Harry Griffiths
Chairman's statement
Dear Shareholders

Our performance in the six months to 30 June 2023 was in line with our expectations and previously issued guidance. The Company also made good progress in advancing its strategy to become a mid-tier miner in the next few years.

However, it is important to address the significant challenges the Company is facing in the latter half of 2023 as a result of the protests against the construction of a second tailings dam at Gedabek. To ensure the existing tailings dam presented no danger to local residents or Company employees, Micon carried out a health, safety and environmental review of tailings management at Gedabek in July 2023. Agitation leaching and flotation processing was also curtailed from the beginning of August.

Our first half year performance was resilient despite falling grades at Gedabek and macro-economic inflationary challenges. Total half-year production was 23,291 gold equivalent ounces ("GEOs") and in line with management's expectations. Copper production increased significantly, growing by 45 per cent. year-on-year to a total of 1,860 tonnes in line with our strategic growth targets.

We have revised our production guidance for 2023 to between 30,000 to 34,000 GEOs due to the curtailment of processing in the second half of the year. We maintained a cash balance of $9.4 million at the Period end with a total of saleable inventory at a market value of $9.1 million. We have not declared an interim dividend for 2023 due to the curtailment of processing subsequent to the Period end.

In March, we announced our medium-term growth strategy, which envisaged Anglo Asian more than doubling its production within the next five years as the Company transitions to a multi-asset,mid-tier producer with a portfolio dominated by copper. The completion of this strategy was a significant achievement, and I would like to thank the entire management team for their hard work and dedication in developing it. Whilst the recent curtailment of

processing has led to certain implementation delays to the growth strategy, we are entirely focused on, and confident of, achieving mid-tier production in the medium term and delivering the considerable shareholder value of which the strategy is capable.

During the Period, we made two follow-on investments in Libero Copper & Gold Corporation, the owner of several copper exploration properties in North and South America including Mocoa, one of the world's largest undeveloped copper-molybdenum resources. However, we did not participate in Libero's private placing announced in July 2023. Our shareholding is currently 17.4 per cent. but we have the right to increase this in the future. Libero represents an exciting proposition for Anglo Asian, with meaningful deposits that align with our growth strategy.

We are still waiting for Micon to issue the final report of their Health, Safety and Environmental review of tailings management at the Gedabek site in late July 2023. Once the Micon report is finalised, we will fully update our shareholders. Until the Micon report is released, and the Group is able to resume full operations, there is a material uncertainty as to the Group's ability to continue as a going concern.

At our Annual General Meeting, which was held in London on 22 June 2023, the directors were pleased to engage with shareholders and receive their feedback on the Company's performance. Pleasingly, there was strong support for Anglo Asian's growth strategy and prospects.

We are monitoring closely the very recent events in Karabakh. There have been reports in the press that the Azerbaijan Government has taken back control of the Demirli/Kyzlbulag mine, which is located in our contract areas. We will keep shareholders fully updated regarding future events.

I would like to extend my sincere gratitude to all Anglo Asian employees, partners and the Government of Azerbaijan for their continued support in what continue to be challenging times. I also wish to thank our shareholders for their unwavering support of Anglo Asian Mining.

Khosrow Zamani Non-executive chairman 25 September 2023

Chief Executive Officer's review