Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector: Mining

13 July 2015

Anglo Asian Mining plc

Q2 2015 and HY1 2015 operations update

Gedabek gold, copper and silver mine, Azerbaijan

Anglo Asian Mining plc ('Anglo Asian' or 'the Company'), the AIM listed gold, copper and silver producer focused in Azerbaijan, is pleased to provide a production and operational update from its Gedabek gold, copper and silver mine ('Gedabek') in western Azerbaijan for the three months to 30 June 2015 ('Q2 2015') and six months to 30 June 2015 ('HY1 2015').

Production overview

· Record gold production for HY1 totalling 35,938 ounces (23,436 ounces from the agitation leach plant, 12,488 ounces from heap leach operations and 14 ounces from SART)

· Gold production for Q2 2015 increased to 18,745 ounces with 12,214 ounces from the agitation leach plant, 6,525 ounces from heap leach operations and 6 ounces from SART processing (Q1 2015: total 17,193 ounces)

· Gold production for Q2 2015 was 19 per cent. higher than the same period of the previous year (Q2 2014: total 15,736 ounces)

· Copper production for Q2 2015 totalled 236 tonnes from SART processing (Q1 2015: 182 tonnes).

· Copper production for HY1 2015 of 418 tonnes (HY1 2014: 369 tonnes)

· Silver production for Q2 2015 totalled 4,527 ounces with 586 ounces from the agitation leach plant, 314 ounces from heap leaching operations and 3,627 ounces from SART processing (Q1 2015: total 1,950 ounces)

· Gold production target for the year to 31 December 2015 ('FY 2015') remains at between 70,000 ounces and 75,000 ounces (including approximately 5,000 ounces from the small scale flotation plant) which represents a significant increase of approximately 16 to 24 per cent. compared to FY 2014 production of 60,285 ounces

Operational update

· Construction of the small scale flotation plant to improve gold and copper production is progressing well with the majority of the plant's equipment at site. On target to be commissioned in Q3 2015 and expected to add approximately 5,000 ounces of gold and 1,200 tonnes of copper for FY 2015

· Gadir adit has now reached the ore body with 3,000 tonnes of ore extracted to date and sent to agitation leach plant for processing. Main mining to commence in August.

Sales

· Q2 2015 gold sales of 16,088 ounces at an average of US$1,193 per ounce

· Q2 2015 copper concentrate shipments to the customer totalled 420 dry metric tonnes ('dmt'), containing 253 tonnes of copper

Company financials

· Net debt, being interest-bearing loans and borrowings less cash and cash equivalents, totaled US$48.9 million at 30 June 2015 (US$50.7million at 31 March 2015)

Anglo Asian CEO Reza Vaziri said, 'We are delighted to report continuation of the exceptional gold, copper and silver production seen in Q1 2015 with record gold production for the half year of 35,938 ounces. This exceeded our internal production estimate and ideally positions Anglo Asian for a strong remainder of 2015. The second half of the year has historically been our best performing half due to the seasonally better weather and we are confident of meeting ourproduction target for 2015 of between 70,000 and 75,000 ounces of gold.

'We continue to make good progress on the building of our small scale flotation plant and the necessary modifications to enable it to process the tailings of the agitated leach plant. The majority of the equipment for the plant is now at site. We continue to expect the plant to be commissioned in Q3 2015.The development of the Gadir mine is also progressing well with the first ore having now been extracted. We expect the main mining operation to commence next month.

'I look forward to providing further updates in due course as we continue to improve our production performance in order to deliver the utmost value for shareholders.'

Full details

Gedabek is a polymetallic deposit from which Anglo Asian produces gold, copper and silver from its open pit mining operation and co-located underground Gadir mine. The Company also processes ore from its Gosha deposit, approximately 50 kilometres away from Gedabek. Three different processing methods, agitation leaching, heap leaching and Sulphidisation, Acidification, Recycling, and Thickening ('SART') are used to produce precious metal and copper.

During Q2 2015, the Company produced 18,745 ounces of gold at Gedabek; 12,214 ounces from the agitation leach plant, 6,525 ounces from heap leach operations and 6 ounces from SART processing. For HY1 2015 the Company produced 35,938 ounces of gold; 23,436 ounces from the agitation leach plant, 12,488 ounces from heap leach operations and 14 ounces from SART. Of the 35,938 ounces of gold produced in HY1 2015, 2,182 ounces were produced from ore mined at Gosha, Anglo Asian's second gold mine which is 50 kilometers away from Gedabek. Ore mined at Gosha is transported to Gedabek for processing.

Anglo Asian completed gold sales of 16,088 ounces of gold at an average of US$1,193 per ounce for Q2 2015.

The Company's SART plant has been performing well producing copper concentrate and for Q2 2015 copper production totalled 236 tonnes. Anglo Asian has a strategic three year sales partnership in place with Industrial Minerals (SA) which commenced in May 2014 for the sale of Anglo Asian copper concentrates. Sales of copper concentrate for Q2 2015 totalled 420 dmt.

Silver production for Q2 2015 totalled 4,527 ounces; with 586 ounces from the agitation leach plant, 314 ounces from heap leaching operations and 3,627 ounces from SART (Q1 2015: total 1,950 ounces).

The following summary table of gold production and prices outlines quarter-on-quarter gold production at Gedabek for HY1 2015 and the four quarters of the previous year.

* including Government of Azerbaijan's share

** excludes Government of Azerbaijan's share

As previously reported, low grade ore (less than 1.5 grammes per tonne of gold) is being treated by heap leaching, whilst higher grade ore (more than 1.5 grammes per tonne of gold) is being processed through the agitation leaching plant.

During Q2 2015, Anglo Asian stacked 127,510 (HY1 2015: 220,096) tonnes of dry crushed ore on to heap leach pads with an average gold content of 1.50 (HY1 2015: 1.49) grammes per tonne. The Company also heap leached uncrushed (Run of Mine - 'ROM') ore. During Q2 2015, Anglo Asian stacked 243,444 (HY1 2015: 379,331) tonnes of ROM ore on to heap leach pads with an average gold content of 0.84 (HY1 2015: 0.90) grammes per tonne.

During Q2 2015, the Company processed 141,552 (HY1 2015: 278,269) tonnes of ore with an average gold content of 3.38 (HY1 2015: 3.50) grammes per tonne through the agitation leach plant.

There was a 79per cent. gold recovery in agitation leaching for Q2 2015, compared to 71 per cent. for the previous quarter. The increase in recovery rate was due to the composition of the ore feed which was more amenable to leaching and better configuration of the agitation leach plant.Gold doré is produced from both heap and agitated leach intermediate solutions, which are combined for final processing and also recirculated around the plant, heap leach pads and tailings dam. Heap leaching is also a long term process and recoveries are therefore only estimates calculated from available metallurgical statistics.

The construction of a small scale flotation plant is proceeding to plan and the Company is also proceeding with the necessary design modifications to enable the plant to treat the tailings from the agitation leach plant. The majority of the equipment for the plant is now at site and it is expected that the plant will be commissioned in Q3 2015.

The Company had net debt at 30 June 2015 of US$48.9 million, a reduction of US$1.8 million since 31 March 2015. The net debt at 30 June 2015 was as follows:

**ENDS**

For further information please visit www.angloasianmining.comor contact:

Notes:

Anglo Asian Mining plc (AIM:AAZ) is a gold, copper and silver producer in Central Asia with a broad portfolio of production and exploration assets in Azerbaijan. The Company has a 1,962 square kilometre prospective exploration portfolio, assembled from analysis of historic Soviet geological data and held under a Production Sharing Agreement modelled on the Azeri oil industry.

The Company developed Azerbaijan's first operating gold/copper/silver mine, Gedabek, which commenced gold production in May 2009. Gold production for the year ended 31 December 2014 from Gedabek totalled 60,285 ounces and 784 tonnes of copper. The Company is also developing a second resource area, Gosha, which is 50 kilometres from Gedabek, and the ore produced at Gosha is processed at Anglo Asian's Gedabek plant. The Company's production target for full year 2015 is between 70,000 ounces and 75,000 ounces of gold. Gedabek is a polymetallic deposit and its ore has a high copper content, and as a result the Company produces copper concentrate from its Sulphidisation, Acidification, Recycling, and Thickening (SART) plant. Anglo Asian is also constructing a small scale, low capital expenditure flotation plant to produce a copper and precious metal concentrate. This will initially process ore from its existing stockpiles of sulphide ore with a high copper content.

Anglo Asian is also actively looking to exploit its first mover advantage in Azerbaijan to identify additional projects, as well as looking for other properties in order to fulfil its expansion ambitions and become a mid-tier gold and copper metal production company.