30 July 08

Anglesey Mining plc

Announcement of final results for the year ended 31 March 2008

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

•             A 50% ownership interest in a newly listed TSX quoted
              Canadian company holding the Labrador iron ore properties
               - market value attributable to the group of
              approx. �36 million at 22 July 2008

•             The Parys Mountain copper-lead-zinc project under negotiation
              for sale to Western Metals Limited for approx. �14 million

Highlights

            Shareholders� funds  �23 million  -  profit for 2008  �10 million

Labrador Iron Ore

•             A very successful flotation in Canada raising C$53 million
              before expenses for the development of the Labrador
              iron ore properties in December 2007

•             Historic resource of 91 million tons of partially developed
              iron ore near Schefferville

•             First iron ore production scheduled for 2009

•             Impact Benefits Agreement signed with Innu Nation in July 2008

Parys Mountain Mine

•             Encouraging evaluation report and drilling in White Rock zone

•             Under negotiation for sale to Western Metals of Perth,
              Western Australia

Chairman�s Statement

This past year has been a most exciting and momentous period in the development of the Company.

The highlight clearly was the flotation of Labrador Iron Mines Holdings Limited (LIMH) on the Toronto Stock Exchange in December 2007. As part of the flotation and the accompanying restructuring, the Company exchanged its 77.5% joint venture interest in the Labrador Iron Project into a 50% interest in the new company. The flotation, which was approved by Anglesey shareholders at an EGM on 30 November 2007, was very successful and raised C$52.7 million before expenses for the development of the properties. LIMH now has sufficient funds to bring the project into production and first production is targeted for 2009.

Following the flotation the group has a holding of TSX-quoted shares in LIMH with a current market value of �36 million, although under equity accounting rules the carrying value in the balance sheet is only �12.1 million. A gain of �11.4 million has been recorded in connection with the flotation.

After the year end we also announced that we had signed a Term Sheet with Western Metals Limited of Perth Western Australia giving them exclusive rights for a period of 120 days to carry out due diligence and to negotiate a definitive agreement for the sale of the Parys Mountain mine. The total consideration for the sale is expected to be approximately �14.2 million. As at the date of this report no formal sale and purchase agreement has yet been signed. Shareholder approval will be required for this transaction.

Labrador Iron Project

Significant progress has been made with the development of the Labrador iron project and its move towards first production of direct shipping lump and sinter fines iron ore scheduled for 2009.

Following the flotation, LIMH began to recruit a dedicated team to drive the project forward. LIMH is now carrying out a number of programmes on site including a 30,000 metre drilling programme, an 8,000 tonne bulk sampling programme, a comprehensive environmental baseline study, detailed resource estimates, design and engineering of the mining, beneficiation and infrastructure requirements, and reviews and engineering of train and port facilities required to ship the iron ore product. The Permit Applications have been submitted to the provincial and federal governments. An Impact Benefit Agreement was signed with the Innu Nation of Labrador. We continue to enjoy strong support from the provincial and federal authorities and from all of the First Nations associated with the project.

We are extremely pleased at the speed with which Labrador Iron Mines has begun its independent life and encouraged by the progress the Company is making to bring first production to the market during 2009.

Parys Mountain Mine

At the Parys Mountain base metals project in North Wales we continued work on the evaluation and planning for mining the White Rock zone. During the year we commissioned a detailed metallurgical review on this zone from Wardell Armstrong together with the final version of a Scoping Study from Micon International. As a result of the recommendations from these reports we commissioned a further short drilling programme at White Rock, including a large diameter hole for further metallurgical testing purposes. These holes further confirmed the continuity of the zone.

In mid-2007 we had commenced preparatory work for the White Rock decline, however a reduction in the zinc price, on which the profitability of White Rock as a stand alone operation is closely based, coupled with the onset of the worldwide liquidity issues, suggested that funding the White Rock project on acceptable terms would not be a simple matter and, other than the drilling programme, the planned development of the White Rock was placed on hold.

After the year end we received a proposal from Western Metals Limited of Perth Western Australia to purchase the Parys Mountain properties. Subsequently we entered into a term sheet giving Western Metals a 120 day exclusive due diligence period. The term sheet contemplated that during that due diligence period both parties would negotiate a binding sale and purchase agreement based on the principal commercial terms detailed in the term sheet. That process is still under way and no formal purchase and sale agreement has been signed.

The key components of the proposed transaction are an initial payment by Western Metals of A$7.3 million in cash or cash and shares to be followed by a period of up to 36 months during which Western Metals would carry out a detailed feasibility study including significant work on site with staged minimum expenditure commitments. At the end of the period Western Metals would either make further payments totalling A$21.5 million or return the property to Anglesey. The total proposed consideration, at current exchange rate, would be equivalent to approximately �14.2 million.

For some time the Company has been seeking the finance to develop the Parys Mountain mine in a manner that would not be overly dilutive to Anglesey shareholders. We believe that the prospective transaction with Western Metals represents a good opportunity for the Company to realize value from the Parys Mountain mine in the near term.

Financial Results

Anglesey reported an increased profit for the year ended March 30, 2008 of �10.2 million up from �6.8 million in the previous year. Almost all of this year�s profit has arisen as a result of the successful flotation of the Labrador Iron project. Even so this profit does not tell the whole story as we have been able to recognise in our accounts only part of the gain which accrues to the group following the flotation.

Anglesey�s balance sheet has been significantly strengthened by the Labrador flotation and shareholders� equity has increased to �23.4 million from �12.0 million in 2007 and �5.1 million in 2006. The company now has a major liquid asset and this liquidity will be further enhanced if the proposed transaction with Western Metals for the sale of the Parys Mountain mine takes place. In accordance with the requirements of the IFRS, the relevant accounting standards, the carrying value of Parys Mountain has been classified as held for sale in the balance sheet as a result of the proposed transaction with Western Metals.  

Outlook

Unlike the last three years when all commodities were very buoyant there is now a very mixed picture developing. Base metals including zinc and lead have weakened considerably although copper remains strong. Precious metals remain at relatively high levels although below their peaks. However many mining companies are experiencing high capital and operating cost inflation and finding it difficult to maintain production levels.

We are of the opinion that much of the softening in metal prices could be due to an unrealistic expectation of new production coming on stream in the next 18 months. However this softening in prices, coupled with significantly higher forecasts for both capital and operating costs at many of the newly planned operations, has now made this expectation less likely. We would therefore expect to see a modest recovery in prices ahead of some stability in the market.

Despite this mixed picture in base and precious metals, the bulk commodities including iron ore and coal continue to be strong. The 85% year on year increase in the sale price of iron ore recently negotiated by the Australian iron ore producers, which generally translates to the world-wide market, is a good indication. The result of these negotiations has been to effectively raise the price of iron ore fines from around $42 per tonne FOB in 2005 to almost $95 per tonne FOB in 2008. These commodities continue to be driven by Chinese and south-east Asian demand which at the present time shows no sign of decreasing. Nonetheless continuing elevated prices for oil and related commodities could eventually dampen demand.

We believe that corporate developments this year have positioned Anglesey to participate in the strong iron ore market and take advantage of other opportunities within our business area as they become available. We will continue to closely monitor these developments and will actively pursue the best of these opportunities.

John F. Kearney

Chairman

30 July 2008

Directors� report

The directors have pleasure in submitting their report and the audited accounts for the year ended 31 March 2008.

Principal activities and business review

The development of the Labrador iron project near Schefferville, eastern Canada, is now the principal activity of the group. Since its formation in 1984 the principal business of the company was the development of the zinc-copper-lead deposits at Parys Mountain in North Wales, a property which is now proposed to be sold. The group continues its search for other mineral exploration and development opportunities.

In December 2007 the group�s development of a series of iron ore deposits around Schefferville in the province of Newfoundland and Labrador was financed in Canada by an initial public offering which raised C$52.7 million before expenses on the Toronto Stock Exchange, following which the group�s ownership holding in Labrador Iron Mines Holdings Limited, which owns 100% of the Schefferville project, became 50.01%. The group recorded a profit of �11.4 million on the deemed disposal of part of the Labrador properties, which are now carried in the accounts as an associated company at a value of �12.1 million and have a published fair value at 22 July 2008 of �35.8 million. This transaction has lead to a significant strengthening of the balance sheet.

After the end of the financial year, on 10 April 2008, a term sheet with Western Metals Limited of Perth Western Australia (WMT) was signed giving WMT exclusive rights for a period of 120 days to carry out due diligence and to negotiate a definitive agreement for the sale of the Parys Mountain mine. The total consideration for the sale is expected to be approximately �14.2 million. As at the date of this report no formal sale and purchase agreement has yet been signed. Shareholder approval will be required for this transaction.

The aim of the group is to continue its support for the Labrador project and to actively engage in other mineral ventures using the group�s own resources together with such external investment and finance as may be required.

Parys Mountain Mine

The Parys Mountain property is the largest known base metal deposit in the United Kingdom. A feasibility study in 1991, based on an identified resource of 6.5 million tonnes with a combined grade of over 10% zinc, copper and lead with small amounts of silver and gold, demonstrated the technical and economic viability of bringing the property into production at a rate of 350,000 tonnes per annum, producing zinc, copper and lead concentrates. However development has been limited since then: over the period from 1991 to 2003 this was chiefly due to poor metal prices.

During the year the group continued with its exploration and development programmes, drilling 632 metres in 4 Diamond core holes all of them in the White Rock area near the existing Morris shaft.

On 10 April 2008 the group agreed and signed a term sheet with ASX-listed Western Metals Limited (WMT) of Perth, Western Australia under which it is expected that both parties will enter into a formal agreement for the sale to WMT of the Parys Mountain poly-metallic base metal project in North Wales. The total consideration for the sale is anticipated to be Australian dollars (A$) 29.136 million, equivalent to approximately �14.2 million at A$2.047/�1.00, the rate of exchange on 22 July 2008 which is used where appropriate in the sterling equivalents below. WMT has paid the company a non-refundable deposit of A$270,000 (�124,984). The agreement will be subject to satisfactory completion of due diligence by WMT and approval by the company�s shareholders.

The main terms of the proposed agreement include a period of up to 36 months in which WMT will complete a bankable feasibility study on the project and an obligation to expend a minimum of A$3.25 million during the first 15 months of this period and an aggregate of A$6.5 million during the first 24 months of the period. Should WMT withdraw from the project then it will return 100% of the project to Anglesey in good standing and free of any additional liabilities. All new data generated by WMT and all payments made to the company by WMT will be retained by the company. There is an initial consideration of  AS7.6 million and the balance of the consideration (A$21.5 million equivalent to �10.5 million at current exchange rates) is due not later than 36 months after the initial payment or on the earlier completion of the feasibility study or certain other events.

Although the total consideration exceeds the carrying value of the Parys Mountain properties which are being sold, for the purposes of these accounts the consideration has been discounted to a net present value, which is less than the carrying value. A Parys Properties fair value adjustment of �698,321 has been made to reduce the carrying value to the net present value. This adjustment will be written back to the income statement over the next two years. In accordance with the requirements of the IFRS, the relevant accounting standards, the carrying value of Parys Mountain has been classified as held for sale in the balance sheet as a result of the proposed transaction with Western Metals. 

Labrador Iron

Since October 2005 the group has been working on a series of iron ore deposits near the town of Schefferville in Labrador, Canada. Schefferville was the location of the Iron Ore Company of Canada�s (IOCC) original mining operations between 1954 and 1984, where IOCC left behind a number of partially developed open�pit iron ore deposits as well as other identified and drilled development sites and a substantial infrastructure, in particular the railway from Schefferville to the port of Sept-Iles on the St. Lawrence River.

In September 2006 an initial feasibility study confirmed that an economic operation may be viable at the Labrador properties and in October 2007 a technical report was received from Canadian consultants SNC-Lavalin. Following a re-evaluation of potential alternatives for financing this project, Canaccord Capital Corporation was appointed as an agent to carry out an initial public offering in Canada in respect of the Schefferville project which was completed on 3 December 2007 with a related over-allotment provision exercised on 2 January 2008 resulting in total gross proceeds from the IPO of $C52.8 million � approximately �26.9 million at those dates.

Following the IPO, Labrador Iron Mines Limited (LIM), the operating company for the Schefferville project, commenced plans to complete a programme of verification drilling and bulk sampling on certain of the properties and the calculation of a compliant mineral resource. A detailed engineering study of mining these hematite deposits to produce �direct shipping� lump and sinter fine ore, requiring minimal processing, for sale to European and Far Eastern steelmakers will also undertaken.

During the ensuing months, LIM expanded its management and operating team with a number of senior appointments, initiated further activities to advance the development stages of the Project and awarded various contracts, including environmental baseline studies, detailed exploration drilling, bulk sampling, resource estimation, metallurgical process testing, rail and port studies and engineering design, all directed to move the Schefferville Project forward towards initial production targeted for 2009.

SNC-Lavalin, in conjunction with Geostat and with participation by the Labrador Innu Development Limited Partnership, has been awarded a contract for a Resource and Engineering Study, including detailed engineering design and specifications for major items of plant and infrastructure. This will include metallurgical test-work aimed at the design of a process circuit required to meet market specifications for the particular types of iron ore.

A major reverse circulation drilling contract has been let to Cabo Drilling Corp. to provide data for a compliant resource estimate on the various deposits, including a reserve estimate on the Phase One Properties, and to assist with both short term mine planning and with longer term operational planning. It is expected that this program will start in July 2008 and will be supplemented by an exploration trenching program.

RSM Mining Services Inc. from Labrador City has commenced a summer program to excavate an 8,000 tonnes ore bulk sample from the Phase One deposits closest to Schefferville and to treat this material by crushing, screening and washing to replicate the expected final product. Some of this material will be used in the metallurgical testing program and the remainder will be available for bulk samples and market testing by potential iron ore buyers.

LIM has submitted the Project Registration Application for the first phase of development of the Schefferville Project to the Department of Environment and Conservation in the Province of Newfoundland and Labrador and to the Canadian Environmental Assessment Agency. The Project Registration Documentation addresses production from the first phase of the Schefferville Project, being the James North, James South and Redmond properties. The development plan calls for the initial production of about 500,000 tonnes of iron ore in 2009, building up to three million tonnes in 2011.

Following from an earlier Memorandum of Understanding (MOU) LIM has signed an Impact Benefit Agreement with the Innu Nation of Labrador committing to an ongoing relationship between the Innu Nation and LIM with respect to the development of the project. The Impact Benefit Agreement covers the life of the mine and establishes the processes and sharing of benefits that will ensure an ongoing positive relationship between LIM and the Innu Nation.

LIM plans the commencement of commercial production of iron ore from the deposits located on the Schefferville Property at the earliest opportunity and, subject to receipt of permits, is working to bring Phase One of the Project into production in 2009.

Dolaucothi

In addition to its other, larger, mineral assets, the group has the small Dolaucothi property in South Wales. It is not the company�s current intention to focus on this property, however this situation will be kept under review.

Other activities

Following the flotation of the Labrador properties in December 2007 and the agreement for sale of Parys Mountain in April 2008, management has engaged in the search for new properties. In general terms this search activity will be concentrated on mineral properties that have the capability of being brought into production in a relatively short time frame and within the financing capability likely to be available to the group.

Performance

So far as the directors are aware, there are no standardised indicators which can usefully be employed to gauge the performance of any group at this stage of its development other than the performance of the company�s shares. The directors expect to be judged by their success in creating value for shareholders. The group has reported profits for the past two years of �10.2 million and �6.8 million.

The chief external factors affecting the ability of the group to move forward are the levels of metal prices and exchange rates; these and other factors are dealt with in the risks and uncertainties section below.

Dividend

The group has no revenues and the directors are unable to recommend a dividend (2007 � nil). Since the date of the accounts the activities of the group have continued in accordance with the directors' expectations.

Financial position

The group�s financial position has been significantly changed this year by the restructuring and flotation of its interests in the Labrador iron project in Schefferville, Eastern Canada. This has resulted in a significant increase in the value of the Labrador operations in the financial statements, as a result of the group�s 50.01% ownership share in the cash raised in the flotation. Because there are outstanding exercisable warrants and options which potentially reduce the group�s voting control, the investment in the Labrador operations is not consolidated but is equity-accounted whereby the equity investment is initially recorded at cost to the group.

The fair value, as indicated by the value ascribed to the Labrador companies in the Canadian flotation, and shown in the accounts of Labrador Iron Mines Holdings Limited, the Toronto Stock Exchange quoted company which now owns the Labrador properties, is very significantly higher than the cost to the group. The market value of the group�s investment in Labrador Iron Mines Holdings Limited was �43.3 million at 31 March 2008 and �35.8 million at 22 July 2008. The carrying value in the consolidated financial statements at 31 March 2008 is �12,068,276.

The group has no revenues from the operation of its properties. The profit for the year after taxation was �10,152,448 (2007 - �6,762,751). Of this profit, �11,427,730 resulted from the disposal of part of the group�s interests in the Labrador properties when they were floated in Canada, as described above. �7,200,000 of last year�s profit comprised a reversal of all the impairment provisions made against the carrying value of the Parys Mountain development expenditure, an intangible asset; these impairment provisions were made over the period from 2000 to 2003 during which low metal prices reduced the estimated net present value of the Parys project.

During the year �19,585 (2007 - nil) was added to fixed assets, �312,617 (2007 - �431,309) was capitalised in respect of the development of the Parys Mountain property and �216,895 (2007 - �453,357) was capitalised in respect of the Labrador Iron property, in respect of the period up to 3 December 2007, the date of the Canadian flotation.

The cash position at 31 March 2008 was �217,968 compared to �34,003 in 2007. There were net current assets of �158,668 at 31 March 2008 compared to net current liabilities of �530,178 at 31 March 2007; most of this change is due to the reclassification of the Parys Mountain activities as held for sale. Following a placing for cash on 19 July 2007, �1,040,564, net of expenses, was added to the group�s cash resources.

At 31 March 2008 the company had 152,558,051 (2007 - 138,808,051) ordinary shares in issue.

In strong contrast to the position in previous years in the company�s history, there are no funding requirements for the group�s current mineral property holdings, Parys Mountain being in the process of sale and Labrador being fully funded for the foreseeable future. Further finance may be required for any new mineral properties which may be evaluated, engaged in or acquired; however such outlays are at the discretion of the directors and would not be made unless finance was available.

Risks and uncertainties

In conducting its business the group faces a number of risks and uncertainties some of which have been described above in regard to particular projects. However, there are also risks and uncertainties of a nature common to all mineral projects and these are summarised below.

General mining risks

Actual results relating to, amongst other things, mineral reserves, mineral resources, results of exploration, capital costs, mining production costs and reclamation and post closure costs, could differ materially from those currently anticipated by reason of factors such as changes in general economic conditions and conditions in the financial markets, changes in demand and prices for minerals that the group expects to produce, legislative, environmental and other judicial, regulatory, political and competitive developments in areas in which the group operates, technological and operational difficulties encountered in connection with the group�s activities, labour relations matters, costs and changing foreign exchange rates and other matters.

The mining industry is competitive in all of its phases. There is aggressive competition within the mining industry for the discovery and acquisition of properties considered to have commercial potential. The group faces strong competition from other mining companies in connection with the acquisition and retention of properties, mineral claims, leases and other mineral interests as well as for the recruitment and retention of qualified employees and other personnel.

Liquidity risk

In order to maintain liquidity and to ensure that sufficient funds are available for operations and developments the company has relied upon share issues and on loans from its major shareholder Juno Limited. Provided the sale of the Parys project to Western Metals Limited completes as planned, the group will receive a minimum of approximately �1.3m in cash, as well as further cash or marketable stock as described above in connection with the proposed sale of the Parys Mountain properties. Following the Labrador flotation, the group�s shareholding in Labrador Iron Mines Holdings Limited has a market value of approximately �36million, at prices current on 22 July 2008. All of this marketable holding is subject to lock in arrangements, which reduce progressively after December 2008.

Exploration and development

Exploration for minerals and development of mining operations involve many risks, many of which are outside the group�s control. The group currently operates in politically very stable environments and hence is unlikely to be subject to expropriation of its properties but exploration by its nature is looking into the unknown or little known and unforeseen or unwanted results are always possible.

Metal prices

Business conditions are expected to be reasonably positive as continuing demand for primary metals from developing countries should help to sustain metal prices which in turn should encourage investor interest in mining and exploration companies. Provided the sale of the Parys project to Western Metals Limited completes as planned, the group�s primary exposure will be to the price of iron ore.

The prices of metals fluctuate widely and are affected by many factors outside the group�s control. The relative prices of metals and future expectations for such prices have a significant impact on the market sentiment for investment in mining and mineral exploration companies. Metal price fluctuations may be either exacerbated or mitigated by international currency fluctuations which affect the actual amount which might be received by the group in sterling.

Foreign exchange

The activities of Labrador Iron Mines Holdings Limited (LIMH) are carried out in Canada and any dividends will be subject to an exchange rate risk, however the group�s interest in LIMH is carried in the group accounts on an equity basis and otherwise than in respect of the group�s share of any annual profits or losses will not be affected by an exchange rate risk. If the proposed sale of Parys Mountain proceeds the group will be exposed to an exchange rate risk in respect of the consideration due of A$28.9 million, equivalent to �14.1 million at current exchange rates.

Permitting, environment and social

Labrador Iron Mines Holdings Limited currently does not have the benefit of any operating permits for the Labrador Iron project. The Schefferville area in particular has a long history of mining in a manner almost identical to that which is proposed, however there is no assurance that the necessary permits will be granted promptly. LIM has signed an Impact Benefits Agreement with the Innu Nation of Labrador, which is an important part of the permitting process, and is in the process of obtaining operational and environmental permits.

The group holds a planning permission for the development of the Parys Mountain property but further consents will be required to carry out proposed activities and these permits may be subject to various reclamation and operational conditions.

Employees and personnel

The group is dependent on the services of a small number of key executives including the chairman, chief executive and finance director and a few other skilled and experienced personnel. Due to the relatively small size of the group, the loss of these persons or the group�s inability to attract and retain additional highly skilled and experienced employees may adversely affect its business or future operations.

Financial instruments

The company�s use of financial instruments is described in note 10.

Directors

In accordance with the company�s practice, Bill Hooley and Roger Turner retire by rotation and, being eligible, offer themselves for re-election. Since Danesh Varma has served for more than nine years as a non-executive, current corporate governance practice requires that he be re-elected annually, and, being eligible, he is also proposed for re-election.

The company maintains a directors� and officers� liability policy on normal commercial terms.

Unless otherwise determined by ordinary resolution, the number of directors, other than alternate directors, shall not be subject to any maximum, but shall not be less than two. The powers of the directors are described in the Corporate Governance Report.

With regard to the appointment and replacement of directors, the company is governed by its Articles, the Combined Code, the Companies Acts and related legislation. The Articles themselves may be amended by special resolution of the shareholders. Under the Articles, any director appointed by the board during the year must retire at the Annual General Meeting following his appointment. In addition, the Articles require that one-third of the remaining directors retire by rotation at each general meeting and seek re-appointment.

Directors� interests in material contracts

Juno Limited (Juno), which is registered in Bermuda, holds 38.0% of the company�s ordinary share capital. The company has a controlling shareholder agreement and working capital agreement with Juno. Advances made under the working capital agreement are shown in note 21. Apart from interest charges there were no transactions between the group and Juno or its group during the year. An independent committee reviews and approves any transactions and potential transactions with Juno. Danesh Varma is a director and, through his family interests, a significant shareholder of Juno.

Upon the flotation in Canada in December 2007 of the group�s interests in its Labrador iron ore project at Schefferville, John Kearney became chairman of the newly formed Labrador Iron Mines Holdings Limited (LIMH), Bill Hooley became chief operations officer and Danesh Varma chief financial officer. All three are shareholders and directors of LIMH, receive salaries from LIMH and have been granted options over the shares of LIMH. There are no transactions between LIMH and the group which have not been disclosed.

There are no other contracts of significance in which any director has or had during the year a material interest.

Directors� shareholdings

The interests of the directors in the share capital of the company, all of which are beneficial, are set out below:

	22 July 2008		31 March 2008		31 March 2007
Director	Number of options	Number of ordinary shares	Number of options	Number of ordinary shares	Number of options	Number of ordinary shares
John Kearney	5,200,000	-	5,200,000	-	5,000,000	-
Bill Hooley	2,500,000	100,000	2,500,000	100,000	1,000,000	100,000
Ian Cuthbertson	2,100,000	727,300	2,100,000	727,300	1,500,000	727,300
David Lean	500,000	-	500,000	-	100,000	-
Howard Miller	1,000,000	-	1,000,000	-	600,000	-
Roger Turner	900,000	-	900,000	-	500,000	-
Danesh Varma	1,200,000	-	1,200,000	-	700,000	-

Substantial shareholders

At 22 July 2008 the following shareholders had advised the company of an interest in the issued ordinary share capital of the company:

Name	Number of shares	Percentage of share capital
Juno Limited	57,924,248	37.97%
Ambrian Capital plc	13,550,000	8.88%
Range Capital	12,500,000	8.19%
Morgan Stanley Securities Limited	10,652,000	6.98%

Authority to allot shares

Under the Articles of Association, the company has authority to allot the unissued shares of the company. The directors would usually wish to allot any new share capital on a pre-emptive basis, however in the light of the group�s potential requirement to raise further funds for the acquisition of new mineral ventures, they believe that it is appropriate to have a larger amount available for issue at their discretion without pre-emption than is normal for listed companies. Accordingly a resolution will be put to the AGM to renew the directors' authority to allot equity securities for cash without pre-emption. In the case of allotments other than for rights or other pre-emptive issues, it is proposed that such authority will be for up to �381,000 being 38,100,000 ordinary shares, which is equivalent to 25% of the issued ordinary share capital at 22 July 2008. Whilst such authority is significantly in excess of the 5% of existing issued ordinary share capital which is commonly accepted for listed companies, it will provide additional flexibility which the directors believe is in the best interests of the group in its present circumstances.

Rights and obligations attaching to shares

The rights and obligations attaching to the ordinary and deferred shares are set out in the Articles of Association. Details of the authorised and issued share capital together with movements in the company�s issued share capital during the year are shown in note 9.

Each ordinary share carries the right to one vote at general meetings of the company. Holders of deferred shares are not entitled to attend, speak or vote at any general meeting of the company, nor are they entitled to receive notice of general meetings.

Subject to the provisions of the Companies Acts, the rights attached to any class may be varied with the consent of the holders of three-quarters in nominal value of the issued shares of the class or with the sanction of an extraordinary resolution passed at a separate general meeting of the holders of the shares of the class.

There are no restrictions on the transfer of the company�s shares.

Voting rights

Votes may be exercised at general meetings in relation to the business being transacted either in person, by proxy or, in relation to corporate members, by corporate representative. The Articles provide that forms of proxy shall be submitted not less than 48 hours before the time appointed for holding the meeting or adjourned meeting.

No member shall be entitled to vote at a general meeting or at a separate meeting of the holders of any class of shares in the capital of the company, either in person or by proxy, in respect of any share held by him unless all monies presently payable by him in respect of that share have been paid. Furthermore, no shareholder shall be entitled to attend or vote either personally or by proxy at a general meeting or at a separate meeting of the holders of that class of shares or on a poll if he has been served with a notice after failing to provide the company with information concerning interests in his shares required to be provided under the Companies Acts.

Shares held in uncertificated form

Subject to the provisions of the Uncertificated Securities Regulations 2001, the Board may permit the holding of shares in any class of shares in uncertificated form and the transfer of title to shares in that class by means of a relevant system and may determine that any class of shares shall cease to be a participating security.

Significant agreements and change of control

The company�s share plans contain provisions relating to a change of control. Outstanding awards and options would normally vest and become exercisable on a change of control, subject to the satisfaction of any performance conditions. There are no agreements between the company and its directors or employees that provide for compensation for loss of office or employment that occurs because of a takeover bid.

Creditor payment policy

The group conducts its business on the normal trade credit terms of each of its suppliers and tries to ensure that suppliers are paid in accordance with those terms. The group�s average creditor payment period at 31 March 2008 was 60 days (2007 - 74 days).

Going concern

After making due and careful enquiry, the directors consider that the group has adequate resources to continue in operational existence for the foreseeable future. For this reason, the going concern basis has been adopted in the preparation of the financial statements.

Charitable and political contributions

The group made no contributions during the year (2007 - nil).

Employment

The group is an equal opportunity employer in all respects.

Directors� responsibilities for the financial statements

The directors are responsible for preparing the annual report and the financial statements. The directors are required to prepare the financial statements for the group in accordance with International Financial Reporting Standards (IFRS) and have also elected to prepare financial statements for the company in accordance with IFRS. Company law requires the directors to prepare such financial statements in accordance with IFRS, the Companies Act 1985 and Article 4 of the IAS Regulation.

International Accounting Standard 1 requires that financial statements present fairly for each financial year the group�s financial position, financial performance and cash flows. This requires the faithful representation of the effects of transactions, other events and conditions in accordance with the definitions and recognition criteria for assets, liabilities, income and expenses set out in the International Accounting Standards Board�s �Framework for the Preparation and Presentation of Financial Statements�. In virtually all circumstances, a fair presentation will be achieved by compliance with all applicable International Financial Reporting Standards.

Directors are also required to:

            properly select and apply accounting policies;

            present information, including accounting policies, in a
            manner that provides relevant, reliable comparable and
            understandable information; and

            provide additional disclosures when compliance with the
            specific requirements in IFRS is insufficient to enable users
            to understand the impact of particular transactions, other
            events and conditions on the entity�s financial position
            and financial performance.

The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the group, for safeguarding the assets, for taking reasonable steps for the prevention and detection of fraud and other irregularities and for the preparation of a directors� report and directors� remuneration report which comply with the requirements of the Companies Act 1985.

The directors are responsible for the maintenance and integrity of the group website.

Auditors

Each of the directors in office at the date of the annual report confirms that so far as they are aware there is no relevant audit information of which the group�s auditors are unaware and that each director has taken all of the steps which they ought to have taken as directors in order to make themselves aware of that information. This confirmation is given and should be interpreted in accordance with the provisions of s234ZA of the Companies Act 1985.

Deloitte & Touche have been the company�s auditors since 1998; in March 2008 the audit committee felt that although an excellent relationship had always existed between the company and Deloittes, there were several reasons, including auditor rotation, why it would be desirable to appoint new auditors. Mazars LLP were selected by the audit committee from a small short-list and engaged by the board to carry out the 2008 audit. A resolution to appoint Mazars LLP and to authorise the directors to fix their remuneration will be proposed at the annual general meeting.

By order of the board

Ian Cuthbertson

Company Secretary    

30 July 2008

 

Consolidated income statement for the year ended 31 March 2008

		Notes	Year ended 31 March 2008	Year ended 31 March 2007
Continuing operations			�	�
	Revenue		-	-
	Administration expenses		(409,788)	(320,054)
	Equity-settled employee benefits		(142,723)	(68,840)
	Impairment reversal		-	7,200,000
	Share of profits in associate	6	10,449	-
	Investment income		18,959	24,520
	Finance costs		(67,326)	(72,875)
	Profit on deemed disposal	6	11,427,730	-
	Parys properties fair value adjustment		(698,321)	-
Profit before tax			10,138,980	6,762,751
	Tax		-	-
Profit for the year from continuing operations		3	10,138,980	6,762,751
Operations to be discontinued
	Profit for the year from               operations to be discontinued	4	13,468	-
Profit for the year			10,152,448	6,762,751
	Earnings per share from continuing and discontinued operations
	Basic - pence per share	7	6.8	4.9
	Diluted - pence per share	7	6.7	4.7
	Earnings per share from continuing operations
	Basic - pence per share	7	6.8	4.9
	Diluted - pence per share	7	6.7	4.7

Consolidated balance sheet

			31 March 2008	31 March 2007
		Notes	�	�
Assets
	Non-current assets
	Mineral property development		-	13,655,700
	Property, plant and equipment		-	185,102
	Interest in associate	8	12,068,276	-
	Deposit		-	114,076
			12,068,276	13,954,878
	Current assets
	Other receivables		4,519	19,103
	Cash and cash equivalents		217,968	34,003
			222,487	53,106
	Assets classified as held for sale	5	13,069,019	-
Total assets			25,359,782	14,007,984
Liabilities
	Current liabilities
	Trade and other payables		(63,819)	(583,284)
			(63,819)	(583,284)
	Net current assets/(liabilities)		158,668	(530,178)
	Non-current liabilities
	Loan		(1,475,993)	(1,408,667)
	Long term provision		-	(42,000)
			(1,475,993)	(1,450,667)
	Liabilities directly associated with              assets classified as held for sale	5	(464,741)	-
Total liabilities			(2,004,553)	(2,033,951)
Net assets			23,355,229	11,974,033
Equity
	Share capital	9	7,036,414	6,898,914
	Share premium		8,092,423	7,189,359
	Equity-settled employee benefits reserve		372,272	229,549
	Currency translation reserve		(2,718)	(48,179)
	Retained profits/(losses)		7,856,838	(2,295,610)
Total shareholders' equity			23,355,229	11,974,033

The financial statements were approved by the board of directors and authorised for
issue on 30 July 2008 and were signed on its behalf by:

John F. Kearney,    Chairman   

Ian Cuthbertson,     Finance Director

 

Statements of changes in equity for the year ended 31 March 2008

	Share capital	Share premium	Equity-settled benefits reserve	Currency translation reserve	Retained losses	Total
	�	�	�	�	�	�
At 1 April 2006	6,885,914	7,090,049	160,709	(4,652)	(9,058,361)	5,073,659
Equity-settled employee     benefits	-	-	68,840	-		68,840
Shares issued for cash	13,000	99,760	-	-	-	112,760
Share issue expenses	-	(450)	-	-	-	(450)
Exchange differences on     translation of foreign     operations	-	-	-	(43,527)	-	(43,527)
Profit for the year	-	-	-	-	6,762,751	6,762,751
At 31 March 2007	6,898,914	7,189,359	229,549	(48,179)	(2,295,610)	11,974,033
Equity-settled employee     benefits	-	-	142,723	-	-	142,723
Shares issued for cash	137,500	962,500	-	-	-	1,100,000
Share issue expenses	-	(59,436)	-	-	-	(59,436)
Exchange differences on     translation of foreign     operations	-	-	-	45,461	-	45,461
Profit for the year	-	-	-	-	10,152,448	10,152,448
At 31 March 2008	7,036,414	8,092,423	372,272	(2,718)	7,856,838	23,355,229

 

Consolidated cash flow statement for the year ended 31 March 2008

		Notes	Year ended 31 March 2008	Year ended 31 March 2007 as restated
			�	�
Operating activities
	Profit for the year		10,152,448	6,762,751
	Adjustments:
	Finance costs recognised in profit or loss		67,326	72,875
	Investment revenue recognised in              profit or loss		(18,959)	(24,520)
	Investment revenue recognised              in discontinued operations		(3,011)	-
	Impairment reversal		-	(7,200,000)
	Equity-settled employee benefits	3	142,723	68,840
	Share of profit retained in associate		(10,449)	-
	Profit on deemed disposal		(11,427,730)	-
	Parys properties fair value adjustment		698,321	-
			(399,331)	(320,054)
	Movements in working capital
	(Decrease) in payables		(203)	(31,099)
	(Increase) in receivables		(12,168)	(2,397)
	Cash utilised by operations		(411,702)	(353,550)
	Interest paid		-	(600)
Net cash used in operating activities			(411,702)	(354,150)
Investing activities
	Interest received		19,121	22,123
	Mineral property development		(445,763)	(947,661)
	Payments for land and buildings		(19,585)	-
Net cash used in investing activities			(446,227)	(925,538)
Financing activities
	Proceeds from issue of shares	6	1,040,564	112,310
Net cash from financing activities			1,040,564	112,310
Net increase/(decrease) in cash			182,635	(1,167,378)
Cash and cash equivalents at start of year			34,003	1,201,381
Exchange rate changes on       foreign currency balances			1,330	-
Cash and cash equivalents at end of year			217,968	34,003

 

Notes to the accounts

1          General information

Anglesey Mining plc is incorporated in the United Kingdom under the Companies Act 1985. The nature of the group�s operations and its principal activities are set out in note 3 and in the business review section of the directors� report.

These financial statements are presented in pounds sterling because that is the currency of the primary economic environment in which the group has been operating. Foreign operations are included in accordance with the policies set out in note 2.

The financial information set out in this announcement does not constitute the company�s statutory financial statements for the period ended 31 March 2008, but is derived from those financial statements. The auditors have reported on the statutory financial statements for the period ended 31 March 2008; their report was unqualified.

This announcement was approved by the board of directors on 30 July 2008.

 

2          Significant accounting policies

Basis of Accounting

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union and therefore the group financial statements comply with Article 4 of the EU IAS Regulation.

The financial statements have been prepared on the historical cost basis. The principal accounting policies adopted are set out below.

Going concern

The financial statements are prepared on a going concern basis. The validity of the going concern concept is dependent on finance being available for the continuing working capital requirements of the group and finance for the development of the group�s projects becoming available. Based on the assumptions that such finance will become available, the directors believe that the going concern basis is appropriate for these accounts. Should the going concern basis not be appropriate, adjustments would have to be made to reduce the value of the group's assets, in particular the intangible fixed assets, to their realisable values.

Non-current assets and disposal groups

Discontinued operations represent cash generating units or groups of cash generating units that have either been disposed of or classified as held for sale, and represent a separate major line of business or are part of a single co-ordinated plan to dispose of a separate major line of business. Cash generating units forming part of a single co-ordinated plan to dispose of a separate major line of business are classified within continuing operations until they meet the criteria to be held for sale.

Discontinued operations

The post-tax profit or loss of the discontinued operation is classified as a single line on the face of the consolidated income statement, together with any post-tax gain or loss recognised on the remeasurement to fair value less costs to sell or on the disposal of the assets or disposal group constituting the discontinued operation.

On changes to the composition of groups of units comprising discontinued operations, the presentation of discontinued operations within prior periods is restated to reflect consistent classification of discontinued operations across all periods presented.

Investment in associates

An associate is an entity over which the group exercises, or is in a position to exercise, significant influence, but not control or joint control, through participation in the financial or operating policy of the investee. In considering the degree of control, any options or warrants over ordinary shares which are capable of being exercised at the period end are taken into consideration.

Where material, the results and assets and liabilities of associates are incorporated in the financial statements using the equity method of accounting, except when these associates are classified as held for sale Investments in associates are carried in the balance sheet at cost adjusted by any material post-acquisition changes of the net assets of the associates, less any impairment of value in the individual investments.

Non-current assets held for sale

Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than continuing use. This condition is regarded as met only when a sale is highly probable and the asset (or disposal group) is available for immediate sale in its present condition. Management must be committed to the sale which should be expected to qualify for recognition as a completed sale within one year from the date of classification. Disposal groups are groups of assets, and liabilities directly associated with those assets, that are to be disposed of together as a group in a single transaction.

Non-current assets (and disposal groups) classified as held for sale are initially measured at the lower of carrying value and fair value less costs to sell. At subsequent reporting dates non-current assets (and disposal groups) are remeasured to the latest estimate of fair value less costs to sell. As a result of this remeasurement any impairment is recognised by charging to the consolidated income statement, any increase in fair value is applied to reverse previous impairment charges on the non-current assets (or disposal groups) to a maximum of the original amortised cost.

Judgements made in applying accounting policies and key sources of estimation uncertainty

The following critical judgements have been made in the process of applying the group�s accounting policies:

(a) the directors� believe, after careful consideration, that the group does not, as a matter of fact, control the activities and operations of Labrador Iron Mines Holdings Limited (LIMH), and that the correct accounting treatment of this interest is to account for it on an equity basis as an associate company. In any event, although the group currently has a 50.01% ownership share in LIMH, there are outstanding exercisable warrants and options which if exercised would reduce the group�s voting control to approximately 40% and under these circumstances the use of equity accounting is mandated by accounting standards.

(b) the directors' have reviewed the qualitative judgements from IFRS 5 in respect of the classification of assets as held for sale.

In determining the discounted value of the proposed deferred consideration receivable in respect of the intended sale of the Parys Mountain project, the directors have assumed that the deferred consideration will (i) be settled within two years of the sale, (ii) should be discounted at a rate of 8.25%, approximately 1% above Australian bank overnight lending rate and (iii) will be settled at A$2.047/�1.00, the rate of exchange on 22 July 2008.

 

3          Business and geographical segments

All activities relate to the group�s principal activity which is the exploration and development of mining properties. The geographical and operational segments in which these activities are carried out coincide and are shown below. The direct property expenses in the UK are in respect of the Parys Mountain base metal project and in Canada they are in respect of the Labrador Iron project prior to its flotation in Toronto on 3 December 2007, after which it became an associated company investment.   

	Parys Mountain	Labrador Iron Mines	Total		Parys Mountain	Labrador Iron Mines	Total
	2008	2008	2008		2007	2007	2007
	�	�	�		�	�	�
Site labour and support	72,778	-	72,778		53,350	-	53,350
Geology & drilling	106,006	58,471	164,477		254,447	298,923	553,370
Feasibility reports	55,650	75,004	130,654		63,340	161,180	224,520
Property rentals and charges	78,183	-	78,183		60,172	-	60,172
Travel	-	24,366	24,366		-	-	-
Currency translation difference	-	59,054	59,054		-	-	-
Total capitalised	312,617	216,895	529,512		431,309	460,103	891,412
Income statement analysis	United Kingdom	Canada	Total		United Kingdom	Canada	Total
Continuing operations
Corporate salaries	185,994	-	185,994		122,276	-	122,276
Other corporate costs	200,213	-	200,213		172,655	-	172,655
	386,207	-	386,207		294,931	-	294,931
Discontinued operations
Investment income	(3,011)	-	(3,011)		-	-	-
Rentals less administrative costs	(10,457)	-	(10,457)		-	-	-
Other corporate costs	-	23,581	23,581		-	25,123	25,123
	(13,468)	23,581	10,113		-	25,123	25,123
Unallocated items
Equity-settled employee     benefits			142,723				68,840
Impairment reversal			-				(7,200,000)
Share of profits in associate			(10,449)				-
Investment income			(18,959)				(24,520)
Finance costs			67,326				72,875
Profit on deemed disposal			(11,427,730)				-
Parys properties fair value adjustment			698,321				-
Profit for the year			(10,152,448)				(6,762,751)
Assets and liabilities
Assets	13,291,506	12,068,276	25,359,782		13,464,227	543,757	14,007,984
Liabilities	(2,004,553)	-	(2,004,553)		(1,937,430)	(96,521)	(2,033,951)
Net assets	11,286,953	12,068,276	23,355,229		11,526,797	447,236	11,974,033

The group does not have any revenues. A proportion of the salary and corporate costs in the UK are in respect of investigating other mineral development opportunities.

In accordance with the group�s accounting policy, mineral property development expenses are capitalised. All other expenses are expensed in the income statement.

 

4          Discontinued operations - Parys Mountain

On 10 April 2008 the company agreed and signed a term sheet with ASX-listed Western Metals Limited (WMT) of Perth, Western Australia under which it is expected that both parties will enter into a formal agreement for the sale to WMT of the Parys Mountain poly-metallic base metal project in North Wales. The total consideration for the sale would be Australian dollars 29.136 million, equivalent to approximately �14.2 million at the exchange rate current on 22 July 2008. The results of the operations which are intended to be sold are as set out below. Note that no income statement was prepared for these operations in 2007.

Profit for the year from operations to be discontinued
	2008		2007
	�		�
Revenues	-		-
Other income	11,667		-
Administrative expenses	(1,210)
Investment income	3,011		-
	13,468		-
Taxation	-		-
Profit for the year from      operations to be discontinued	13,468		-
Cash flows from operations to be discontinued
	2008		2007
	�		�
Net cash flows from operating activities	10,457		-
Net cash flows from investing activities	(229,091)		(462,732)
Net cash flows from financing activities	-		-
Net cash flows	(218,634)		(462,732)

 

5          Assets classified as held for sale - Parys Mountain

As described in note 9, the Parys Mountain project is expected to be sold shortly after the date of these accounts. The values of the assets and liabilities which are included in the sale are:

 

	2008		2007
	�		�
Mineral development expenses	13,424,560		-
Freehold property	204,687		-
Deposit	116,923
Receivables	21,170		-
Less: Parys properties         fair value adjustment	(698,321)
Assets classified as held for sale	13,069,019		-
Trade payables	(58,697)
Accruals	(364,044)		-
Provision for reinstatement	(42,000)		-
Liabilities directly associated     with assets classified as     held for sale	(464,741)		-

The Parys properties fair value adjustment arises in respect of the deferred element of the proposed consideration receivable for the intended sale of the Parys Mountain project to Western Metals Limited,
which IFRS 5 requires to be discounted to its present value. This adjustment will be written back to
the income statement over the next two years.

 

6          Asset disposals - Labrador properties

As described in the directors� report, the group�s 100% owned subsidiary Labrador Iron Mines Limited was restructured during the year and its Schefferville operations were floated on the Toronto stock exchange on 3 December 2007 when �25.9 million before expenses was raised. The dilution of the group�s interest in the Schefferville properties has given rise to a profit on the deemed disposal of part of the properties, which are now held in Labrador Iron Mines Holdings Limited (LIMH). The company�s interest in LIMH is classified as an associate company in the group accounts.

	2008		2007
	�		�
Cash and cash equivalents	1,413		-
Amounts receivable	5,586		-
Mineral property expenditures	760,652		-
Amounts payable	(137,554)		-
Net assets disposed of, representing  historic cost of interest in associated company	630,097		-
Profit on deemed disposal	11,427,730		-
Carrying value at 3 December 2007	12,057,827		-

 

7          Earnings per ordinary share

	2008		2007
	�		�
Earnings
Profit for the year from continuing operations	10,138,980		6,762,751
Profit for the year from discontinued operations	13,468		-
Profit for the year	10,152,448		6,762,751
Number of shares
Weighted average number of ordinary shares for the purposes of basic earnings per share	148,387,969		138,563,941
Shares deemed to be issued for no consideration in respect of employee options	2,529,054		4,839,894
Weighted average number of ordinary shares for the purposes of diluted earnings per share	150,917,023		143,403,835
Basic earnings per share
From continuing operations	6.8 pence		4.9 pence
From discontinued operations	0.0 pence		0.0 pence
Total basic earnings per share	6.8 pence		4.9 pence
Diluted earnings per share
From continuing operations	6.7 pence		4.7 pence
From discontinued operations	0.0 pence		0.0 pence
Total diluted earnings per share	6.7 pence		4.7 pence

 

8          Investment in associate

Labrador Iron Mines Holdings Limited (LIMH), a company registered in Ontario, Canada, became the holder of the group�s interests in the Labrador properties at Schefferville, formerly held by the 100% owned subsidiary Labrador Iron Mines Limited, following a restructuring and flotation on the Toronto stock exchange effective on 3 December 2007.

At 31 March 2008 the group had a 50.01% ownership interest in LIMH, however since there are warrants and options outstanding and exercisable at that date, the group�s diluted interest is less than 50% and consequently LIMH is treated as an associate for the purposes of these group financial statements.

	31 March 2008		31 March 2007
	�		�
Values in group financial statements:
Historic cost of interest in associate at disposal date	630,097		-
Profit on deemed disposal	11,427,730		-
Group's share of profits of associate, adjusted to eliminate fair value uplift, for the period from disposal date to year end	10,449		-
Value of group's share of net assets of the associate as carried in the group accounts without any fair value adjustment in respect of mineral properties	12,068,276		-
Fair value of group's interest based on market price of associate's quoted shares at 31 March 2008	43,344,944		-
Values as shown in the published accounts of the associate including a fair value adjustment in respect of mineral properties, after conversion into sterling:
Total assets	86,210,124		-
Total liabilities	(17,787,265)		-
Total net assets	68,422,859		-
	2008		2007
Total profit of associate for the period from incorporation to 31 March 2008	977,758		-

The group�s interest in LIMH is held in these financial statements at original cost to the group, adjusted for the group�s share of changes in net assets of the associate since acquisition.

In the financial statements of LIMH for the period to 31 March 2008, the Labrador mineral properties are recognised at fair value as indicated by the value ascribed to the Labrador companies in the Canadian flotation. This fair value is very significantly higher than the adjusted cost to the group. It follows that the carrying value of the group�s share of net assets of its associate shown above is not 50.01% of the associate�s net assets.

The published fair value of the group�s investment in LIMH of �43.3 million is derived by valuing the group�s shareholding in LIMH at the LIMH share price quoted in Toronto on 31 March 2008 of Canadian $4.75 per common share.

The associated undertakings of the company at 31 March 2008 were as follows:

Name of company	Country of incorporation	Percentage owned	Principal activity
Labrador Iron Mines Holdings Limited, an associated company (from 3 December 2007)	Ontario, Canada	50.01%	Holding company for Labrador Iron Mines Limited (100%)
Labrador Iron Mines Limited, an associated company (restructured during the year), a subsidiary of LIMH	Ontario, Canada	50.01%	Development of Labrador Iron property

The group holds its interest in these associated companies through Labrador Iron plc, a 100% owned subsidiary.

 

9          Share capital

	Ordinary shares of 1p		Deferred shares of 4p		Total
	Nominal value �	Number	Nominal value �	Number	Nominal value �
Authorised share capital
At 1 April 2006 & 31 March 2007	1,840,000	184,000,000	7,320,000	183,000,000	9,160,000
Created 30 November 2007	400,000	40,000,000	-	-	400,000
At 31 March 2008	2,240,000	224,000,000	7,320,000	183,000,000	9,560,000
Issued and fully paid
At 1 April 2006	1,375,081	137,508,051	5,510,833	137,770,835	6,885,914
Issued 3 May 2006	6,000	600,000	-	-	6,000
Issued 8 July 2006	7,000	700,000	-	-	7,000
At 31 March 2007	1,388,081	138,808,051	5,510,833	137,770,835	6,898,914
Issued 20 July 2007	137,500	13,750,000	-	-	137,500
At 31 March 2008	1,525,581	152,558,051	5,510,833	137,770,835	7,036,414

The deferred shares are non-voting, have no entitlement to dividends and have negligible rights to return of capital on a winding up.

On 20 July 2007, 13,750,000 ordinary shares were issued in respect of a placing at 8 pence per share to five institutional investors.

 

10         Financial instruments

Capital risk management

The group manages its capital to ensure that entities in the group will be able to continue as going concerns while optimising the debt and equity balance. The capital structure of the group consists of debt, which includes the borrowings disclosed in note 21, the cash and cash equivalents and equity comprising issued capital, reserves and retained earnings.

The group does not enter into derivative or hedging transactions and it is the group's policy that no trading in financial instruments be undertaken.

The main risks arising from the group's financial instruments are currency risk and interest rate risk. The board reviews and agrees policies for managing each of these risks and these are summarised below.

Interest rate risk

The group finances its operations through a mixture of equity, and loans from Juno Limited. These loans are at a fixed rate of interest of 10% per annum and as a result the group is not exposed to interest rate fluctuations.

Liquidity risk

The group's policy has been to ensure continuity of funding through a mixture of fresh issues of shares and the working capital agreement with Juno Limited. Since the flotation of Labrador Iron Mines Holdings Limited (LIMH) on 3 December 2007, the group had a significant shareholding in LIMH which is quoted on the Toronto stock exchange (see note 17). This holding is subject to lock-up arrangements, the major part of which are removed on 3 December 2008.

Currency risk

The functional currency of the group is pounds sterling and the loan from Juno Limited is denominated in pounds sterling. As a result, the group has no currency exposure in respect of this loan. The company has no other foreign currency denominated balances at the year end.

If the sale of the Parys Mountain properties to Western Metals Limited described in the directors� report goes ahead as envisaged, the group will be exposed to a currency risk in respect of the consideration to be received which is proposed to be denominated in Australian dollars.

Credit risk

The directors consider that the entity has limited exposure to credit risk as the entity has immaterial receivable balances at the year end on which a third party may default on its contractual obligations. The carrying amount of the group�s financial assets represents its maximum exposure to credit risk.

The financial instruments of the group at 31 March 2008 are:

 

	Cash, loans & receivables		Liabilities
	�		�
Financial assets
Other debtors	4,519
Cash and cash            equivalents	217,968
Financial liabilities
Trade creditors			(40,325)
	222,487		(40,325)

All financial assets and liabilities are initially stated at fair value and measured at amortised cost, and all carrying values approximate to fair values.

 

11         Post balance sheet events

On 10 April 2008 the company announced that it had agreed and signed a term sheet with ASX-listed Western Metals Limited (WMT) of Perth, Western Australia under which it is expected that both parties will enter into a formal agreement for the sale to WMT of the company�s Parys Mountain poly-metallic base metal project in North Wales. The total consideration for the sale would be Australian dollars 29.136 million, equivalent to approximately �14.2 million at the exchange rate applicable on 22 July 2008. At that date negotiations on the formal agreement were continuing and are expected to reach a satisfactory conclusion.

 

Responsibility statement

The directors confirm that the financial statements have (a) been prepared in accordance with applicable accounting standards; (b) give a true and fair view of the assets, liabilities, financial position and profit or loss of the group and the parent company and (c) that the directors' report includes a fair review of the development and performance of the business and the position of the group and the parent company together with a description of the principal risks and uncertainties that they face.

 

Registered office          

Tower Bridge House,
St. Katharine�s Way, London,
E1W 1DD

Corporate office telephone 01248 361333 fax 01248 361419

E-mail mail@angleseymining.co.uk

 

For further information:

 

Bill Hooley, Chief Executive	+(44) 1492 541981
Ian Cuthbertson, Finance Director	+(44) 1248 361333

About Anglesey Mining

Anglesey Mining plc is a UK based company listed on the London Stock Exchange with a 50% interest in a 90 million ton iron ore project in Labrador, Canada, which is under active development towards mining production in 2009. The company's Parys Mountain base metals project is in the process of sale to Western Metals Limited, an ASX-listed company which proposes to spend over �5 million on project development and feasibility.