10 April 2015

Alexander Mining plc

Audited Results for the Year Ended 31 December 2014

Alexander Mining plc ("Alexander" or the "Company"), the AIM-listed mining and mineral processing technologies company, announces its audited results for the year ended 31 December 2014.

Highlights:

· Further advancement of our proprietary leaching technologies

· Continued interest from mining companies in leaching technologies

· Continued success in registration of patents

Chairman's Statement

After an encouraging start, the Company's progress during 2014 was not as rapid as we envisaged. Although significant technical achievements were made, our commercialisation efforts, due to third party business circumstances and related decisions beyond our control, were frustrated.

However, after an indifferent year, I am delighted with the results of the management team's efforts late in the reporting year which enabled the release of the most recent news announced in February 2015 regarding the potentially transformative commercialisation opportunity with Compass Resources Limited ('Compass'). Subject to the execution of a definitive agreement, which is currently under negotiation, this will provide for the granting of an AmmLeach® licence and certain technical and management services for use at Compass' Browns Oxide copper-cobalt mine. This agreement would bring significant revenue to Alexander by way of upfront and ongoing services fees, plus a future production royalty.

Technical work

There was notable research and technical development success, which underwrites our commercialisation programme. This included the major development announced in April 2014 of the breakthrough testwork to produce the world's first zinc cathode using our AmmLeach® technology. That work used conventional leaching, solvent extraction and electro-winning equipment in the test facility available for hire at Simulus Engineers ('Simulus'), Perth, Western Australia. Importantly, supporting one of the most attractive benefits of the AmmLeach® technology, i.e. significantly lower capital and operating costs, and operating conditions at ambient temperature and pressure. This represents the first successful demonstration of AmmLeach® technology for zinc at this scale and the first solvent extraction of zinc from primary oxide ores using ammoniacal leaching.

We believe that this confirmed our AmmLeach® process as the only economically viable method to unlock the value of hitherto problematic zinc oxide deposits. The Company has built up an extensive database of all of the world's major zinc oxide deposits and has now conducted favourable AmmLeach® amenability testwork on samples from a significant number. The Republic of Turkey is a particular country of interest.

Zinc oxide deposits are highly attractive in terms of their tendency to have high average zinc grades both absolutely and relatively when compared with world averages for sulphide ores. In addition, the fact that most of the known deposits are at or near surface generally makes for easier mining. However, the inherent processing challenges have meant that almost all remain unexploited except those with grades high enough to justify direct shipment (+20-25% zinc) to smelters. Those deposits found in the Tethyan orogenic belt of Turkey are especially prospective.

Commercialisation activities

The results of our commercialisation efforts during the year were disappointing. In particular, this was due to the unravelling of the commercial licence, financing and consultancy agreement ('Agreement') announced in February with the Company's large shareholder the Ebullio Group ('Ebullio'). This was not due to any technology considerations but with Ebullio's commercial decision to terminate its agreement to acquire all of the assets in Turkey of Red Crescent Resources Limited. As this was a condition precedent the Agreement was terminated. Nevertheless, we continue to have a close relationship with Ebullio and to support its interest in developing mining opportunities in Turkey.

In July, the Company announced that Phoenix Global Mining ('PGM') had confirmed its interest in investigating the use of AmmLeach® for highly prospective zinc oxide properties in Turkey. At that time PGM had an earn-in Agreement with a Turkish industrial group, to develop their base metals exploration and mining licences. PGM subsequently decided to drop this opportunity for commercial reasons.

Alexander announced in September that it had signed an option agreement ('Option Agreement') with a mid-tier mining company (the 'Entity'). The Entity was a highly regarded mid-tier, multi-commodity mining company with exploration, development and operational experience. Under the Option Agreement, the Entity had been granted an exclusive three months' option period to complete due diligence on the AmmLeach® zinc processing technology. This was in exchange for the cash payment to Alexander of US$360,000. (£217,000). Exercise of the option would have resulted in further cash payments in exchange for Alexander equity, as well as a licence with a gross sales revenue royalty on all metals production by the Entity using the AmmLeach® technology.

Although a highly detailed and favourable technical due diligence was conducted, unfortunately the Entity had a change in its corporate plans due to a need to focus more on its domestic growth strategy. Accordingly, in December the Entity informed the Company that it would not exercise its option. It advised that its due diligence on the use of the AmmLeach® process for zinc production was favourable and it had formed the view that there is value in the technology. It also said that it remained interested in continuing to build its relationship with Alexander.

Intellectual property

The results of the programme, in conjunction with Wrays, the Company's patent attorney, to protect our leaching technology intellectual property ('IP'), measured by patents granted by method and country have been excellent. This includes patents granted in Mexico, Canada, Mongolia, Botswana, Mozambique, Namibia, Tanzania and Zambia

Developments in 2015

In late February 2015, the Company was delighted to announce that it had signed a non-binding Heads of Agreement ('HoA') with Compass, a listed Australian public company (ASX:CMR), for executing a definitive agreement ('Agreement') covering an AmmLeach® licence and certain technical management services for Compass in the Northern Territory, Australia. These arrangements should significantly accelerate the first commercial adoption of Alexander's proprietary AmmLeach® technology with particular relevance to copper/cobalt resources.

We greatly look forward to working closely together with Compass under this transformative agreement. Assuming the completion of a positive AmmLeach® feasibility study and production go-ahead, the mine would partner our AmmLeach® technology with existing high quality mining assets.

The plan is to generate significant economic value from the Browns Oxide mine and the first step is the completion of an AmmLeach® feasibility study, with a pilot plant programme funded by Compass. This pilot plant programme would be carried out at the independent commercial facilities of Simulus, under the supervision of Alexander's technical personnel. This would lead to the completion of a feasibility study into commercial production and is dependent upon statutory approval and obtaining all necessary permits required to recommence production.

Compass is currently working to complete a financing facility with sophisticated institutional investors as the first stage in a proposed major refinancing and relisting of the company. The proceeds of their financing will be used for various purposes, including payments due under the Agreement to Alexander and for the third party AmmLeach® pilot plant and feasibility study costs. Moreover, Australia is one of the world's leading mining countries and together with Alexander's metallurgical team based in Perth, Western Australia, it provides an exemplary project to work on together with Compass.

Compass and Alexander believe that market conditions are the most favourable for several years for growth by attractively priced corporate acquisitions. Accordingly, the companies expect to form a strategic alliance in Australia to investigate the acquisition by Compass of copper resources which can be exploited using the proprietary Leaching Technologies of Alexander. This will be on terms to be agreed in respect of each such project.

Financial

The Company has maintained its very tight rein on costs whilst ensuring the protection of its intellectual property through patent applications. In January 2015, the Company raised £360,000 (gross) through the issue of 72,000,000 new ordinary shares to institutional and other investors. The net proceeds of the Placing were for general working capital purposes. In conjunction with the expected revenue from the agreement with Compass, this should ensure adequate funding for the next twelve months on the current budget.

Outlook

In these uncertain economic times, especially for the mining business,

I believe that Alexander is better placed than most in the junior sector. Although global economic recovery is volatile and commodity prices have fallen significantly of late, the Company will continue to work hard to succeed with the commercialisation of its technology. Indeed the weakness in most base metals prices during the last year and the deleterious impact on operating margins has led to an imperative for companies to cut costs wherever possible. In this environment, we believe that the scope for major operating and capital cost savings for existing and potential mines using our technology should be of ever greater interest. Particularly as the opportunity offered has significant environmental benefits.

The exciting opportunity with Compass offers Alexander a most encouraging start to 2015 and I look forward with considerable optimism.

As always, I would like to thank the Company's shareholders for their support and also our employees, consultants and directors for their highly-valued effort during the last year.

Matt Sutcliffe

Executive Chairman

10 April 2015

Enquiries

Alexander Mining plc

Consolidated income statement for the year ended 31 December 2014

Consolidated statement of comprehensive income f or the year ended 31 December 2014

Consolidated balance sheet as at 31 December 2014

Consolidated statement of cash flows for the year ended 31 December 2014

Notes

1. Financial statements

The financial information set out in this announcement does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006 for the year ended 31 December 2014 or for the year ended 31 December 2013, but is derived from those accounts. The financial statements for 2014 will be delivered to the Registrar of Companies following the Company's Annual General Meeting. The auditors have issued an unqualified report on these accounts. The auditor has issued an unqualified opinion in respect of the financial statements which does not contain any statements under the Companies Act 2006, Section 498(2) or Section 498(3). The auditor has raised an Emphasis of Matter in relation to going concern and the availability of project finance as follows:

"In forming our opinion, which is not modified, we have considered the adequacy of the disclosures made in note 2(a) to the financial statements concerning near-term corporate developments and the possibility that the company may need to raise further finance within the next twelve months in order to continue its operations and to meet its commitments. If the company is unable to secure such additional funding, this may have a consequential impact on the company's and the group's ability to continue as a going concern.

The outcome of any corporate developments or fundraising cannot presently be determined. These conditions, along with the other matters explained in note 2(a) to the financial statements, indicate the existence of a material uncertainty which may cast significant doubt about the Company's and the Groups' ability to continue as a going concern. The financial statements do not include the adjustments that would result if the Company was unable to continue as a going concern."

2. Summary of significant accounting policies

a) Basis of preparation

The financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRSs") in force at the reporting date and their interpretations issued by the International Accounting Standards Board ("IASB") as adopted for use within the European Union.

The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries) made up to 31 December each year.

Going Concern

Based on a review of the Group's budgets and cash flow forecasts, the directors have identified that if current and near-term corporate development opportunities are unsuccessful in providing adequate funding then the Company will need to raise finance within the next twelve months in order to continue its operations and to meet its commitments.

In common with many mining, exploration and intellectual property development companies, the Company needs to raise finance for its activities in discrete tranches to finance its activities for limited periods. The Directors are confident that the Company currently has a range of corporate development opportunities, which could include significant funding outcomes and moreover that, if necessary, any further funding can be raised as and when required. (Accordingly, attention is drawn to Note 4, Post Balance Sheet events, where details of potential significant business development funding opportunities are provided). On this basis, the Directors have concluded that it is appropriate to draw up the financial statements on the going concern basis. However, there can be no certainty that either development opportunities or alternative funding will be secured in the necessary timescales. This indicates the existence of a material uncertainty that may cast significant doubt on the ability of the company and the group to continue as a going concern and therefore, that it may be unable to realise its assets and discharge its liabilities in the normal course of business. The financial statements do not include the adjustments that would result if the Company and Group were unable to continue as a going concern.

b) Research and development expenditure

Research costs are recognised in the income statement as an expense as incurred. Development costs are recognised in the income statement as an expense as incurred unless the development project meets specific criteria for deferral and amortisation. No development costs have been deferred to date because there is insufficient information at the balance sheet date to quantify the expected future economic benefits from the proprietary leaching technologies.

3. Dividends

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

4 . Post balance sheet events

On 13 January 2015, the Company issued 72,000,000 new shares of 0.1p each for cash at 0.5p each to raise £360,000 (gross). In connection with that placing, the Company issued 3,600,000 warrants, valid for two years, to subscribe for ordinary shares at 0.5p per share

On 13 January 2015 the Company also issued 1,090,909 new shares of 0.1p each, at a price of 0.825p per share, in lieu of £9,000 in fees due to the Company's nominated advisor and 1,500,000 new shares of 0.1p each at a price of 0.80p per share in lieu of £12,000 in fees due to a consultant for investor relations and advisory services.

On 22 January 2015, the Company issued 5,000,000 new shares of 0.1p each, at a price of 0.6p per share, to Cove House Investments Limited, in respect of consultancy and advisory services.

Following admission of the above shares, the Company has a total of 255,910,288 ordinary shares in issue.

On 23 February 2015 the Company announced a non-binding Heads of Agreement ("HoA") signed with Compass Resources Limited ("Compass") a listed Australian public company, for an AmmLeach® licence and certain technical and management services relating to a feasibility study planned for the use of AmmLeach® at Compass's treatment plant and mine in Australia for copper, cobalt and nickel production.

Compass and Alexander are currently working to finalise the definitive agreement ('Agreement'), conditional on completion of Compass' proposed financing. The key commercial terms agreed in the HoA are:

On completion of the definitive agreement, the Company will grant to Compass a licence to use Alexander's leaching technologies ( AmmLeach® ). The principal terms of the licence and technical consultancy and management services will include:

I. Cash payments by Compass totalling A$1,100,000 to Alexander on commencement of the Agreement;

II. Compass will also pay to Alexander:

a. A$400,000 three months after the initial fee payment; and

b. A$425,000 upon delivery of the feasibility study;

III. A$550,000 during the construction and commissioning stage, dependent on a construction go-ahead decision; and

IV. A royalty of 2.6077% on s aleable metal production after capped third party royalties.

Conditional upon the Agreement being executed, and subject to Alexander shareholders' approval at the 2015 AGM, the Company will grant to Compass the following share options:

I. options over 5 million ordinary shares of 0.1p each at an exercise price of 7.5p per share for 18 months from issue; and

II. options over 5 million ordinary shares of 0.1p each at an exercise price of 10.0p per share for 24 months from issue.

Annual Report

The Annual Report will be posted to all shareholders by 17 April 2015 and will be available on the Company's website at www.alexandermining.com. Additional copies will be made available to the public, free of charge, from the Company's registered office at 35 Piccadilly, London W1J 0DW.

Annual General Meeting

The Company's Annual General Meeting will be held at the East India Club, 16 St James's Square, London, SW1Y 4LH at 10:30am on Wednesday 13 May 2015. The Notice of the AGM and the associated explanatory notes relating to the resolutions to be proposed at that meeting will accompany the Company's annual report.

Disclaimers and forward looking statements

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

This news release contains forward looking or future-oriented financial information, being information which is not historical fact, including, without limitation, statements regarding potential results of metallurgical testwork, anticipated applications for the Company's intellectual property and discussions of future plans and objectives. Although the Company believes that the expectations reflected by such information are reasonable, these statements are based on assumptions and factors concerning future events that may prove to be inaccurate. Such statements are necessarily based upon a number of estimates and assumptions based on information available to the Company about itself and the business in which it operates. Information used in developing forward-looking information has been acquired from various sources including third party consultants, suppliers, regulators and other sources and is subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from the Company's expectations are the continuing availability of capital resources to fund the commercialisation of Alexander's technologies; continued positive results from trials and applications of Alexander's AmmLeach® and HyperLeach® technologies and other factors as disclosed in Company documents filed from time to time. Management uses forward-looking statements because it believes they provide useful information to the shareholders with respect to proposed transactions involving Alexander, and cautions readers that the information may not be appropriate for other purposes and should not be read as guarantees of future performance or results.

The Company disclaims any intention or obligation to revise or update such statements unless required by law.