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

29 June 2016

Anglo Asian Mining plc

Hedging of gold sales for remainder of 2016

Anglo Asian Mining plc ("Anglo Asian" or "the Company"), the AIM listed gold, copper and silver producer focused in Azerbaijan,has taken advantage of the recent strength of the gold price and entered into a transaction to hedge 18,000 ounces of its gold sales for the remainder of 2016. This represents approximately 50 per cent. of its forecast sales for this period.

The Company has entered into a series of net zero cost options with a lower (PUT option) sales price of US$1,200 per ounce and an upper (CALL option) sales price of US$1,426 per ounce. The options mature in lots of 1,500 ounces of gold with the first lot maturing on 12 July 2016. The remainder of the lots mature every two weeks from this date with the final lot maturing on 13 December 2016.

PUT options give the right to the Company (but not the obligation) to sell gold at the option price. CALL options give the right to the holder (but not the obligation) to buy gold at the option price. The 18,000 ounces will therefore have a minimum / maximum sales price per ounce of US$1,200 / US$1,426. Where the spot price on date of sale is between US$1,200 and US$1,426, sales will take place at spot price.

Anglo Asian CEO Reza Vaziri commented, "This is a win win transaction for us. Whilst protecting the downside in the current volatile gold market over the coming six months given Anglo Asian's debt service payments, we also enjoy considerable exposure to any further increase in the price of gold during this period."

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 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. Gedabek is an open cast mine with a series of interconnected pits. The Company is also mines high grade ore from the Gadir underground mine which is co-located at the Gedabek site. The Company has a second underground mine, Gosha, which is 50 kilometres from Gedabek. Ore mined at Gosha is processed at Anglo Asian's Gedabek plant.

Gold production for the year ended 31 December 2015 from Gedabek totaled 72,032 ounces with 969 tonnes of copper also produced. 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 also produces a copper and precious metal concentrate from its flotation plant, which commenced production in the last quarter of 2015. This is initially processing tailings from the agitation leach plant.

Anglo Asian is also actively seeking 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.