Anglesey Mining plc                LSE:AYM                      21 July 2010

Announcement of annual results

A UK mining company listed on the London Stock Exchange with -

• A 41% interest in Labrador Iron Mines Holdings Limited, a TSX quoted Canadian company developing 150 million tons of direct shipping hematite iron ore near Schefferville in Canada, with production due to commence later in 2010

• 100% of the Parys Mountain copper-lead-zinc project in North Wales with a total historical resource of 7.76 million tonnes at 9.3% combined copper, lead and zinc, held awaiting development

2010 - a special year - ?8.2 million profit

"During the past year Labrador Iron has continued to develop its Labrador and Quebec properties, increased its resources and completed a C$35 million fund-raising. We are now poised to complete the construction and bring the stage 1 deposits into production. Iron ore prices at very satisfactory levels look set to continue for some time."

John Kearney - Chairman

"While our emphasis during the year has been very much on the Labrador developments, Parys Mountain remains a significant asset, and one which we would like to develop in co-operation with others."

Bill Hooley - Chief Executive

Chairman's Statement

This past year has been extremely satisfactory for Anglesey Mining plc. The main project and major driver of shareholder value is the group's interest in Labrador Iron Mines (LIM) where excellent progress has been made.

LIM successfully raised a further C$35 million in equity for its operations and Anglesey raised ?2.7 million through the sale of a small portion of its shares in LIM. As a consequence of these fund raisings the group's interest in LIM is now 41%, compared to its 50% interest at 31 March 2009 and the quoted market value of the group's holding is ?45 million at 6 July 2010 compared to ?11 million at 31 March 2009.

The profit this year of ?8.2 million results from the deemed disposal arising on LIM's March 2010 placing in Toronto and the profit on sale of LIM shares..

Labrador Iron

Steady progress has been made in advancing the Schefferville Projects toward production with ongoing active programmes in respect of drilling, metallurgical testing, environmental, permitting, marketing, engineering and purchasing.

Since the last annual report we have -

• acquired additional significant deposits in both Labrador and Quebec, including some with potential for the extraction of manganese,

• carried out a property exchange which rationalised our mineral holdings and improved the potential of our iron ore deposits,

• completed the environmental approval process for the stage 1 operations and obtained project approval from the Government of Newfoundland and Labrador,

• established new estimates of resources (NI 43-101 compliant) on the James, Redmond and Houston deposits showing a significant increase in tonnage over the historical resources,

• carried out metallurgical testwork confirming the high iron content, low gangue content and high quality of the ore to be produced in stage I of operations,

• laid the 2.5 mile rail spur from the Sept-?les - Schefferville main line to the Silver Yards area where it is planned to install the beneficiation plant,

• signed an agreement with the Sept-?les Port Authority for the use of the port to ship LIM's iron ore products.

In 2008, LIM and the Innu Nation of Labrador signed an Impact Benefit Agreement. The Labrador Innu, as represented by the Innu Nation, are the only aboriginal party with a land claim that has been accepted by the Government of Newfoundland and Labrador. LIM has recently been in negotiations towards an Impact Benefit Agreement with the Quebec Innu who claim Aboriginal rights in the general Schefferville area but has not yet concluded an agreement.

Numerous permits and approvals have been received including the mining leases for the first stage James and Redmond deposits, the surface use leases over the Silver Yards beneficiation area and the camp. LIM is awaiting the Certificate of Approval for the operation of the rail spur from the Government of Newfoundland and Labrador. The receipt of these permits has taken longer than anticipated, which has resulted in some delay in LIM's planned construction and production timeline.

Upon receipt of all remaining necessary permits, licenses and approvals, and the completion of the aboriginal agreements, LIM is planning to commence construction of the mine and beneficiation facilities during the summer of 2010 and hopes to achieve start up and initial production before the seasonal shut down of operations at the end of November 2010. LIM plans to commence full scale commercial production in April 2011 and expects output of 2 million tonnes of iron ore during that calendar year.

Marketing

LIM has not yet entered into agreements for the sale of any iron ore but it anticipates that it will sell most of its early production into the spot market. Iron ore prices grew strongly during the year and whilst there has been some softening recently it is expected that these prices will continue to be supported by robust Chinese demand.

Parys Mountain

During most of the year activities at Parys Mountain have been overshadowed by the drive towards production in Labrador. We feel that the best route forward for developing Parys Mountain would be with a partner. Efforts in this direction will be increased in conjunction with limited technical programmes designed to improve geological understanding on the Parys deposits and the potential of the property, such as the computer-based geological remodelling which was carried out over the past few months.

Financial

The fundraising by LIM resulted in the dilution of our stake in that company, and the operation of accounting standards means that this dilution is treated for accounting purposes as a 'deemed disposal' or partial sale; in addition some of our shares were sold to raise funds for Anglesey. We have recorded profits on the deemed and actual disposals of LIM shares of ?8.8 million in the year. After taking into account operating expenses and other items there was a net profit for the year of ?8.2 million. The Canadian dollar has strengthened against the pound sterling during the year so we have for the second year running recorded an exchange rate gain on our investment in LIM and this together with the profits on sale mean that total shareholders' equity has increased by more than ?10 million during the year.

Outlook

The progress of the past year, together with high iron ore prices and a great deal of market interest in iron ore generally, lead to the company's share price peaking at 44 pence in April 2010. This is a dramatic improvement on the price of 4.75 pence when the 2009 annual report was issued.

The stock market has been more than usually volatile and unpredictable over the past few months following concerns that growth in the Chinese economy might be weaker than previously anticipated. We remain confident that iron ore price levels in 2011 will provide strong cashflows from the Labrador operations.

The short term objective is very clear: to put Labrador Iron Mines into production. In the medium term we would like to move Parys Mountain forward, preferably with an industry partner, and bring new projects into the group for development.

John F. Kearney

Chairman

21 July 2010

The company's full financial statements in Adobe pdf format may be viewed here.

Labrador Iron Mines Holdings Limited (LIM)

LIM?s Schefferville area project involves the development of twenty direct shipping iron ore deposits in western Labrador and north-eastern Quebec near Schefferville, Quebec. LIM?s properties are part of the historic Schefferville area iron ore district where mining of adjacent deposits was previously carried out by the Iron Ore Company of Canada from 1954 to 1982. Labrador Iron Mines contemplates mining in four stages, the first phase of Stage 1 comprising the James and Redmond deposits, which are located in close proximity to existing infrastructure. LIM plans to start up production in the fall of 2010, subject to timely receipt of remaining permits.

For further information, please see www.labradorironmines.ca.

Anglesey Mining plc

Anglesey Mining with its LSE main board listing is primarily focused on its 41% interest in LIM. In addition to any new projects that may be brought forward the company owns 100% of Parys Mountain in North Wales with an historical resource in excess of 7 million tonnes at over 9% combined copper, lead and zinc.

For further information contact:

Bill Hooley, Chief Executive +44 (0) 1492 541981

Ian Cuthbertson, Finance Director  +44 (0) 1248 361333

Emily Fenton/Charlie Geller, Conduit PR  +44 (0) 20 7429 6608 / +44 (0) 7788 554035  

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