LONDON, UNITED KINGDOM--(Marketwire - May 9, 2011) - Alexander Mining plc ("Alexander", the "Company") (News - Market indicators)(AIM:AXM), the AIM-listed mining and mineral processing technologies company, announces its audited results for the year ended 31 December 2010.

Key highlights:

• Important step towards commercialisation with joint venture partnership agreement with Anvil Mining Limited on its Mutoshi copper and cobalt project in the Democratic Republic of the Congo.

• Positive testwork results, using AmmLeach^® on zinc oxide deposits, with Firestone Ventures and Rio Crystal

• Successful listing of Alexander shares on TSX Venture Exchange

• Disposal of Alexander Gold Group Limited for US$2.2m

• The global mining industry has enjoyed another strong year, supported by buoyant metals prices.

• Healthy cash position of £2.45m at the year end

CHAIRMAN'S STATEMENT

Introduction

Our business objective is clear; to capitalise on our breakthrough AmmLeach^® mineral processing technology. AmmLeach^® has the potential to transform the extraction process efficiencies and economics for many base metals but especially copper, cobalt and zinc. We shall grow the Company by securing royalty agreements in producing mines and/or equity interests in advanced projects, in exchange for the use of our technology.

In my last Chairman's statement, I confidently forecasted that the forthcoming year would bring significant progress in achieving our business objective. I am delighted to report that this belief has been amply rewarded, with several notable achievements. 

Firstly, and most importantly, we announced in February 2011 a joint venture partnership agreement with Anvil Mining Limited ('Anvil') on its Mutoshi copper and cobalt project ('Mutoshi') in the Kolwezi region of the 'Copperbelt' in Katanga province, Democratic Republic of the Congo (DRC). This is significant as not only is Mutoshi a major project in its own right but it is our first deal in one of the most important copper/cobalt target regions for our proprietary leaching technology. Moreover, Anvil is an excellent partner, being one of the most experienced and respected mining companies active in the DRC.

The agreement is to build and operate a pilot plant using AmmLeach^® to treat a total of 150,000 tonnes ('t') of cobalt ore for the production of cobalt metal. The plant will also be able (with only minor modification) to process copper ores to produce copper cathode.

Apart from Mutoshi, there is huge upside for our technology because of the magnitude of the copper/cobalt resources in the DRC Copperbelt. It is the world's largest sediment-hosted stratabound copper province. The carbonate geology has particularly high acid consumption which makes it ideally suited to our AmmLeach^® process. By conservative estimates, the DRC Copperbelt contains over 190 million tonnes ("Mt") of copper within at least fourteen giant deposits, each over 2Mt copper, and yet is underexplored. As well as the potential to make a satisfactory economic return as a stand-alone exercise, the results from the pilot plant will form part of the decision by Anvil to undertake a feasibility study for the development of a commercial-scale plant at Mutoshi.

Turning to the opportunities for using AmmLeach^® on zinc oxide deposits, we recently announced significant progress here too. AmmLeach^® amenability test work done for Firestone Ventures Inc. ('Firestone') on its Torlon Hill zinc oxide project ('Torlon Hill') in Guatemala, and Rio Cristal on its Charlotte Bongará property produced favourable results.

The Torlon Hill testwork showed that potentially economic recoveries of zinc should be achievable. As a result, Firestone requested Alexander submit a conceptual process flow sheet using AmmLeach^® for Torlon Hill and a plan for substantial additional next stage testwork. 

Additionally, Alexander and Firestone have agreed to work together collaboratively to identify and target other high acid-consuming, carbonate-hosted zinc oxide opportunities in Firestone's portfolio which may be suitable for using AmmLeach^®. This is an important step in Alexander's aim of demonstrating the commercial use of AmmLeach^® for processing high grade zinc oxide deposits. Such deposits are particularly found in North, Central and South America.

In addition to these important developments, the Company has continued its extensive discussions with mining companies about the use of its technology. These discussions have covered projects with a range of base metals. In most cases, it has led to the signing of confidentiality agreements and the AmmLeach^® amenability testing of copper, copper-cobalt, cobalt, zinc and nickel deposit samples. This has brought meaningful testwork revenue to offset our administrative costs. 

We have continued to devote resources to research and development at the University of Ballarat in Australia under the supervision of our consultant, Dr. Nicholas Welham, for our leaching technologies. This has focused on other ores, including saprolite nickel laterites, molybdenum oxides, and mixed base/precious metals oxides (eg. gold/copper, silver/zinc). The latter, if successful, would open up a major new avenue of use for AmmLeach^® as, hitherto, these ores have been highly problematic to treat.

Our consultancy agreement with RPT Resources has been terminated but it has been fruitful in identifying many project/corporate opportunities potentially suitable for AmmLeach^®. Alexander now has the right to pursue these opportunities directly.

In tandem with our business development efforts, we have been diligent with the protection of our intellectual property ('IP'). A robust IP protection model of patenting is on-going. This includes the filing of supplementary patents as research and development work progresses. Our first patent for 'Method for Ammoniacal Leaching' has been granted in the Republic of South Africa and the patent is in turn, importantly, now subject to import into the DRC. Our other specific applications are at various stages of the patenting process.

In January this year, we announced the listing and admission of the Company's ordinary shares for trading on the TSX Venture Exchange ('TSXV') under the symbol 'AXD'. This is an important step as North American investors and commentators have both a considerable breadth and depth of knowledge of and an interest in investing in the global mining sector. The listing will broaden understanding of the potential of our innovative proprietary mineral processing technology and increase the profile of the Company with the aim of facilitating investment and share trading by this investment community.

We have now completed the sale of our wholly owned subsidiary Alexander Gold Group Limited ('AGGL'), which was the holding company for the Company's Argentina assets, for a total consideration of US$2.2million. An amount of US$400,000 was received on execution of the legally binding sale and purchase agreement ('SPA'), with 18 monthly payments of US$100,000 each due commencing March 2011. Along with the disposal of our investment in Mariana Resources, which realised a profit of £370,000 (on a net consideration of £470,000), this has bolstered our cash position, which was £2.45m at the end of 2010.

Outlook

The global mining industry has enjoyed another strong year, supported by buoyant metals prices. This is despite the volatility in the global economy and equity markets. The healthy fundamentals for base metals mining companies, centred upon strong growth in demand for their core products, should remain. Those developing countries which are the key stimulants for growth in base metals demand, led by China, India and Brazil, are still all enjoying strong economic expansion. 

In this environment, we believe that the fundamental tenets of our business plan are well founded and will amply reward shareholders. Our strong progress to date reinforces this belief and we look forward to the year ahead with enthusiasm and confidence. 

Alexander's significant progress to date would not be possible without the hard work and dedication of its employees, consultants and directors, and I would like to record my grateful appreciation.

Matt Sutcliffe, Executive Chairman

9 May 2011

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 2010 or for the year ended 31 December 2009, but is derived from those accounts. The financial statements for 2010 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.

2. Summary of significant accounting policies

a) Basis of preparation

The financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") 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 and with IFRS and their interpretations adopted by the IASB.

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.

b) Disposal groups and non-current assets held for sale

Disposal groups and non-current assets held for sale are measured at the lower of carrying amount and fair value less costs to sell.

Disposal groups and non-current assets are classified as held for sale if their carrying amount will be recovered through a sale transaction rather than through continuing use.

This is the case, when the asset or disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets or disposal groups and the sale is considered to be highly probable.

A sale is considered to be highly probable if the appropriate level of management is committed to a plan to sell the asset or disposal group, and an active programme to locate a buyer and complete the plan has been initiated. Further, the asset or disposal group has been actively marketed for sale at a price that is reasonable in relation to its current fair value. In addition, the sale is expected to qualify for recognition as a completed sale within one-year from the date that it is classified as held for sale.

c) 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. Disposal group – discontinued operations

A net profit for the year attributed to the discontinuing business amounted to £884,000, comprised as follows:

4. Dividends

The directors do not recommend the payment of a dividend (2009: nil)

Annual Report

The Annual Report will be posted to all shareholders by 20 May 2011 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 on Wednesday 15 June 2011 at 10.30 a.m. at the East India Club, 16 St James's Square, London SW1Y 4LH. The Notice of the AGM is included in the Company's annual report and the associated explanatory notes relating to the proposed resolutions at that meeting.

Disclaimers

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 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. Important factors that could cause actual results to differ materially from the Company's expectations are in Company documents filed from time to time with the TSX Venture Exchange and provincial securities regulators, most of which are available at www.sedar.com. The Company disclaims any intention or obligation to revise or update such statements unless required by law.