Interim results 2024

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

26 September 2024

Anglo Asian Mining plc

Interim results for the six-months to 30 June 2024

Ramp-up to full production underway

FY 2024 Production Guidance of 15,000 to 19,500 gold equivalent ounces maintained

Anglo Asian Mining plc ("Anglo Asian", the "Company" or the "Group"), the AIM-listed copper, gold, and silver producer in Azerbaijan announces its interim results for the six-months ended

30 June 2024 ("H1 2024" or the "Period").

The Group's performance was in keeping with expectations, given that agitation leaching and flotation processing were suspended throughout the Period.

The Group has now received authorisation from the Government of Azerbaijan for the raise of its tailings dam wall, construction of which started on 6 August 2024. The Group is swiftly progressing towards normalised production.

Financial highlights

• Total revenues of $13.4 million (H1 2023: $30.8 million) due to agitation leaching and flotation production being suspended throughout the period
  o Lower gold bullion sales of 6,000 ounces (H1 2023: 10,506 ounces) partially offset by a higher average gold price of $2,174 per ounce (H1 2023: $1,939 per ounce)
  o Copper concentrate sales lower at $0.5 million (H1 2023: $10.4 million)
• Loss before taxation of $5.5 million (H1 2023: profit of $1.4 million)

1. Gross loss of $1.7 million (H1 2023: gross profit of $5.6 million)

• 1. Higher finance costs at $1.2 million (H1 2023: $0.7 million) due to higher borrowings
• Net cash generated by operating activities of $3.2 million (H1 2023: $0.6 million)
• Investment in our future growth continued in the Period
• 1. $6.3 million mine development and other capital expenditure (H1 2023: $6.6 million)
• Net debt of $12.0 million as at 30 June 2024 (31 December 2023: $10.3 million)
• No interim dividend declared for 2024 due to the loss in the Period

Operational highlights

• Total production of 5,270 Gold Equivalent Ounces ("GEOs") (H1 2023: 23,391 GEOs) due to suspension of agitation leaching and flotation processing throughout the Period
  o Gold production of 4,704 ounces (H1 2023: 14,623 ounces)
  o Copper production of 100 tonnes (H1 2023: 1,870 tonnes)
  o Silver production of 12,746 ounces (H1 2023: 44,696 ounces)

• Garadag JORC maiden mineral resources estimate published on 24 September 2024

• 1. Group's four new mineral deposits now have a combined JORC mineral resources estimate of over one million tonnes of copper
• Full year 2024 production guidance maintained of between 15,000 to 19,500 GEOs
• 1. Gold production of between 14,000 to 16,000 ounces

1. Copper production of between 250 to 850 tonnes

Approval of tailings dam wall raise and restart of full production

• Authorisation from the Government of Azerbaijan received on 5 August 2024 for the Group to raise the wall of its existing tailings dam
  o The first phase of 2.5 metres is expected to be completed in November 2024
• Agitation leaching processing nearing the end of its start-up commissioning with production to restart imminently with flotation processing restarting in November
• First ore expected to be mined from Gilar in December 2024

Anglo Asian CEO Reza Vaziri commented:

"I am pleased to report on a satisfactory performance during the first half of 2024. Production was significantly reduced due to the partial suspension of processing throughout the Period which resulted in a loss. The loss was minimised by stringent cost control. Cash was also carefully managed resulting in net debt increasing by less than two million dollars in the Period.

"During this time of significantly reduced production, we have taken a number of important steps to deliver future growth and achieve our medium-term target of becoming a mid-tier producer. We are currently ramping up towards previous rates of production and are also close to bringing Gilar into production. I look forward to updating the market on these and other developments in due course."

Market Abuse Regulation (MAR) Disclosure

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Chairman's statement

Dear Shareholders

The six months to 30 June 2024 remained challenging for Anglo Asian as production from agitation leaching and flotation was suspended throughout the Period while we waited for authorisation from the Government of Azerbaijan to raise our tailings dam wall. We were pleased to receive authorisation in early August and immediately started the raise of the tailings dam wall. We are now making rapid progress to restart both agitation and flotation processing.

The Company continued to make progress on its growth plans. Development of the new Gilar mine continued with its first ore expected to be extracted in December. We continued to confirm our mineral resources with the publication of the maiden Xarxar JORC mineral resources estimate in February. The maiden Garadag JORC mineral resources estimate was also published post Period-end on 24 September 2024. Restricted access to Demirli was obtained and we have now started work at the property. We also took steps to strengthen our Environmental Social and Governance ('ESG') credentials, including the formation of a Sustainability Committee.

Production

Our performance in the Period was severely impacted by the partial suspension of processing, resulting in total production of only 5,270 gold equivalent ounces ("GEOs"). This was predominantly 100 tonnes of copper and 4,704 ounces of gold from heap leaching and SART processing. This was a major reduction compared to last year, which included a full six months of agitation leaching and flotation processing. Our production from heap leach and SART processing proved critical to maintaining the Company's solvency during the Period. This flexibility in our processing operations is another demonstration of the Company's resilience.

Tailings dam wall construction and production guidance

On 5 August 2024, we received authorisation from the Government of Azerbaijan to raise the wall of our tailings dam which is a credit to the many parties involved for all their hard work. Construction is now underway, and we expect the first phase, which is a 2.5 metre raise of the dam wall, to be completed in November. Accordingly, we have issued 2024 production guidance of between 15,000 and 19,500 GEOs, including 250 to 850 tonnes of copper and 14,000 to 16,000 ounces of gold.

Strategic growth plan

Our medium-term growth strategy remains intact, with the Gilar mine expected to enter first production in December. The start-up of Gilar will be a significant milestone in the Company becoming a mid-tier copper producer, as it is the first new mine the Company will open since the Gedabek underground mine in 2020. Gilar will enable the Company to start reversing the

declining production of the last few years from its existing mines which are all starting to approach the end of their lives.

Another important event during the Period was that our production sharing agreement ("PSA") was revised, with AzerGold Closed Joint Stock Company ("AzerGold CJSC") replacing the Ministry of Ecology and Natural Resources as the local party to the PSA. Our future collaboration with AzerGold CJSC will allow us to leverage their extensive local experience and expertise.

Libero Copper and Gold Corporation ("Libero")

Our shareholding in Libero remained unchanged throughout the Period. However, our interest in Libero suffered a very significant dilution in early 2024 following a major fund raising in which we did not participate. Libero ceased to be an associate company following the fund raising and will now be classified as an equity investment. Although the overall investment to date has been a disappointment, we still believe Libero has the ability to create shareholder value.

Dividend and going concern

The Company continued to make losses in the Period and therefore does not intend to pay an interim dividend. The directors fully intend to resume dividend payments once conditions allow.

The Micon environmental audit and subsequent partial suspension of processing resulted in the financial statements for the six months to 30 June 2023 and the full year to 31 December 2023, containing material uncertainties as to going concern. However, given the receipt of the authorisation of the tailings dam wall raise and imminent restart of full operations, the financial statements for the Period do not contain any material uncertainties to going concern. Further details regarding going concern are contained within the financial review and financial statements below.

UN Climate Change Conference in Baku in November 2024 ("COP 29")

Preparations for the COP 29 conference are now well underway in Baku with significant work being undertaken to prepare the city for the event. The Company welcomes this opportunity for Azerbaijan to showcase its capital city and, as a significant business in Azerbaijan, it intends to fully participate in the conference where appropriate.

Annual General Meeting for 2024 ("AGM")

Our AGM was held on 20 June 2024 and we were very pleased with the continuing strong support and interest from our shareholders. For the first time, a detailed presentation about the Company was made following the formal business of the AGM. We believe this was well received by our shareholders and the Company plans to make further such presentations at future AGMs.

Appreciation

I would like to extend my gratitude to all Anglo Asian employees, partners and the Government of Azerbaijan for their continued support. I would also like to thank our shareholders for their unwavering commitment to Anglo Asian during what has been a challenging time. As we navigate the remainder of 2024, we are poised to deliver on our strategic goals and look forward to a strong finish to the year and a better 2025.

Khosrow Zamani Non-executive chairman 25 September 2024

Chief Executive Officer's review

I am pleased to report a satisfactory performance for the six months to 30 June 2024 given the circumstances. Production was significantly reduced due to the partial suspension of processing throughout the Period which resulted in a loss. However, strict cost control in the Period limited the loss before tax to $5.5 million.

Following the authorisation for the raise of our tailings dam wall, we are now working to return to full production in a prompt and responsible manner. We expect full processing to restart in November.

Operational review

Total production for the Period was 5,270 gold equivalent ounces ("GEOs"), compared to 23,391 GEOs during the same period last year ("H1 2023"). Copper production totalled 100 tonnes, compared with 1,870 tonnes in H1 2023, while gold production totalled 4,704 ounces, compared with 14,623 ounces in H1 2023.

We took the opportunity of the shut-down of agitation leaching and flotation processing to undertake extensive renovation and refurbishment of our plants. The agitation leaching plant has now undergone cold commissioning using water for testing and all minor leaks have been rectified. All crushing and grinding equipment has been subject to extensive maintenance and is fully operational.

Development of the Gilar mine continued throughout 2024. The tunnelling encountered worse ground conditions than anticipated, which has required the use of shotcrete and reinforced roof supports. Water has also been encountered which is now being pumped from the mine. Approximately 515 metres of the ventilation tunnel and 1,199 metres of the production tunnel have been completed. The surface infrastructure is now complete and includes a heavy equipment maintenance workshop. Our new Caterpillar mining fleet has been deployed in the tunnelling.

We also made important progress with our development portfolio. In January, drilling results confirmed a significant quantity of copper mineralisation at Xarxar. In February, the maiden JORC mineral resources estimate of Xarxar was published. This confirmed that Xarxar contains

24.9 million tonnes of mineralisation with average grades of 0.48 per cent. copper which equates to over 100,000 tonnes of copper in the ground. Post period-end on 24 September, the maiden JORC mineral resources estimate of Garadag was published which showed the deposit contains 285 million tonnes of mineralisation with an average grade of 0.32 per cent. copper. The Group now has in total a JORC minerals resource of over one million tonnes of copper. Xarxar and Garadag are significant pillars in our ability to transition to a copper focused producer.

We have obtained restricted access to Demirli and there have been various visits by senior management and directors. Environmental, tailings dam and other studies are currently underway to fully evaluate the property. We are also refurbishing the site accommodation and laboratory. A drill programme of the remaining resource is also being planned.

We decided not to take part in Libero Copper & Gold Corporation's ("Libero") fundraise in January. This decision reflected the Company's priorities and cash requirements. Our shareholding reduced to 5.9 per cent., with Michael Sununu resigning from Libero's Board in February.

Tailings storage and the restart of production

We were delighted in early August to receive authorisation from the Government of Azerbaijan to raise our tailings dam wall and construction began immediately. The work is progressing well, and the Company anticipates that the first raise of 2.5 metres will be completed in November. We have also commenced our return to full production with the agitation leaching processing plant currently being commissioned and flotation processing to be restarted in in November. The plants will initially process ore from our existing mines with processing of ore from Gilar expected to start in December.

Financial review

Revenues were $13.4 million compared to $30.8 million in the six months to 30 June 2023 ("H1 2023"). Revenues for H1 2024 include gold bullion sales of 6,000 ounces at an average price of $2,174 per ounce and total copper concentrate sales of 331 dry metric tonnes valued at $0.5 million.

The Company did not hedge any of its gold bullion production in the Period. 1,600 ounces of gold in respect of hedges entered into in 2023 were closed in the Period, resulting in a small loss compared to the spot price of gold at the date of closure of the hedges.

The Company incurred a loss before tax of $5.5 million compared with a profit in H1 2023

of $1.4 million. This loss was incurred due to the partial suspension of processing throughout the Period and higher finance costs.

The Group will not report an All-In Sustaining Cost ("AISC") of gold produced for H1 2024. The Group's costs in H1 2024 include substantial non-production costs, such as maintaining the idle plant and Gedabek site, and the cost of the Gedabek workforce, many of whom were placed on administrative leave. The AISC metric is therefore not meaningful for this Period.

Following a refinancing by Libero in early 2024, in which Anglo Asian did not participate, our holding in Libero fell to 5.9 per cent. in February 2024 and it ceased to be an associate company. Since February 2024, Libero has been accounted for as an equity investment. A net gain of $0.3 million was recognised the Period in respect of Libero due to the increase in its share price.

The Company had net debt of $12.0 million at 30 June 2024 and saleable inventory of 1,463 ounces of gold with a market value of approximately $3.0 million.

In May, the Company signed a vendor financing facility with Caterpillar Financial Services Corporation to refinance $3.7 million of the purchase price of the Caterpillar mining fleet purchased in 2023. The facility was fully drawn down in August. The Group also consolidated loans totalling $5.0 million with the International Bank of Azerbaijan into one loan which was renewed for one year until May 2025.

In June, the Company entered into a prepayment agreement with Trafigura Pte Ltd ("Trafigura") for copper concentrate sales totalling $5.0 million. A $3.0 million prepayment was received in June and a further $2.0 million prepayment will be receivable upon resumption of flotation processing. Trafigura has been given the exclusive right to purchase 50 per cent. of the first year of future copper concentrate production from Demirli.

Revenues from production at Gedabek throughout the Period continued to be subject to an effective royalty of 12.75 per cent. through our production sharing agreement with the Government of Azerbaijan. We anticipate that this same royalty rate will continue to apply to at least the end of 2025.

Environmental, Social and Governance ("ESG")

We have put several practices in place in the Period to ensure that we grow sustainably and uphold our commitment to operate responsibly.

In March, we were pleased to announce the establishment of our sustainability committee, which is chaired by Professor John Monhemius. The committee will oversee the development of our strategy related to sustainable development and social responsibility. It reflects our

dedication to operational safety, sustainable practices, environmental stewardship and community engagement.

As part of our ongoing commitment to upholding the highest standards of tailings management, we announced our commitment to the Global Industry Standard on Tailings Management ("GISTM"). This set of principals was established under the auspices of the UN Environment Programme, the International Council on Mining and Metals and the Principles of Responsible Investment. We have confirmed with the Church of England Pensions Board, which oversees the implementation of the GISTM, that Anglo Asian will work towards full compliance by the end of 2026.

We were also very pleased to include full 'Climate change and task force on climate-related financial disclosures (TCFD)' for the first time in our 2023 annual report.

Outlook

The last 12 months have been challenging for the Company. However, we believe this difficult period is now behind us. Our immediate focus is now on fully restarting our operations and bringing Gilar into production. We remain on track to restart full production in November, with production from Gilar commencing in December.

We recently issued production guidance for the year of between 16,000 and 19,500 GEOs, comprising 14,000 to 16,000 ounces of gold and 250 to 850 tonnes of copper. We anticipate agitation leaching production to restart imminently and flotation processing in November.

We have maintained our focus on the future development of the Company. We remain on track to deliver our growth targets and to become a mid-tier,multi-asset, primarily copper producer in the medium term.

Reza Vaziri

President and chief executive 25 September 2024

Corporate Governance

A statement of the Company's compliance with the ten principles of corporate governance in the Quoted Companies Alliance Corporate Governance Code ('QCA Code') can be found on

http://www.angloasianmining.com/media/pdf/CORPORATE_GOVERNANCE.pdf

Competent Person Statement

The information in the announcement that relates to exploration results, minerals resources and ore reserves is based on information compiled by Dr Stephen Westhead, who is a full time employee of Anglo Asian Mining with the position of Vice President. Dr Stephen

Westhead is a Fellow of The Geological Society of London, a Chartered Geologist, Fellow of the Society of Economic Geologists, Fellow of The Institute of Materials, Minerals and Mining and a Member of the Institute of Directors.

Dr Stephen Westhead has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'; who is a Member or Fellow of a 'Recognised Professional Organisation' (RPO) included in a list that is posted on the ASX website from time to time (Chartered Geologist and Fellow of the Geological Society and Fellow of the Institute of Material, Minerals and Mining).

Dr Stephen Westhead has sufficient experience, relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking, to qualify as a "competent person" as defined by the AIM rules.

Dr Stephen Westhead has reviewed the resources and reserves included in this announcement and consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears.

Strategic report

Principal activities

Anglo Asian Mining PLC (the "Company"), together with its subsidiaries (the "Group"), owns and operates gold, silver and copper producing properties in the Republic of Azerbaijan ("Azerbaijan"). It also explores for, and develops, gold and copper deposits in Azerbaijan.

The Group has a substantial portfolio of greenfield assets that lay the foundation for future growth of the business. Gilar, Zafar, Xarxar and Garadag all host significant ore deposits which contain total JORC mineral resources (measured, indicated and inferred) of over one million tonnes of copper and 328,000 ounces of gold.

Production Sharing Agreement with the Government of Azerbaijan

The Group's mining concessions ("Contract Areas") in Azerbaijan are held under a Production Sharing Agreement ("PSA") with the Government of Azerbaijan dated 20 August 1997. Amendments to the PSA which granted the Group additional Contract Areas were passed into law in Azerbaijan on 5 July 2022.

A further amendment was made to the PSA which replaced the local party to the PSA, the Ministry of Ecology and Natural Resources, with AzerGold Closed Joint Stock Company ("AzerGold CJSC"). Minor amendments were also made in respect of the use of facilities for

the Kyzlbulag, Demirli and Vejnaly contract areas. These amendments were passed into law in Azerbaijan on 21 June 2024.

Contract Areas in Azerbaijan

The Group has eight Contract Areas covering a total of 2,544 square kilometres in western Azerbaijan:

• Gedabek. The location of the Group's primary gold, silver and copper open pit mine and the Gadir and Gedabek underground mines. The Group has a major new underground mine in development at Gedabek - Gilar. The Zafar deposit is also situated at Gedabek. Development of Zafar started in 2023 but has been suspended since mid-2023. The Group's processing facilities are also located at Gedabek.
• Xarxar. Located adjacent to Gedabek and Garadag and which hosts the Xarxar deposit. It is likely part of the same mineral system.
• Garadag. Located to the north of Gedabek and Xarxar and hosts the large Garadag copper deposit.
• Gosha. Located approximately 50 kilometres from Gedabek and hosts a narrow vein gold and silver mine.
• Vejnaly. Situated in the Zangilan district of Azerbaijan and hosts the Vejnaly deposit.
• Ordubad. An early-stage gold and copper exploration area located in Azerbaijan's Nakhchivan exclave.
• Kyzlbulag. Situated in Karabakh. It hosts the Kyzlbulag mine.
• Demirli. Adjacent to Kyzlbulag and expands the Kyzlbulag Contract Area to the northeast. It hosts a copper and molybdenum mine and a processing plant.

The Gedabek, Xarxar, Garadag and Gosha Contract Areas form a contiguous territory totalling 1,408 square kilometres. The Group currently has restricted access to the Demirli Contract Area and no access to the Kyzlbulag Contract Area which are both situated in Karabakh. The PSA will only commence in respect of these latter two Contract Areas upon notification by the Government of Azerbaijan to the Group that it is safe to grant full access to the district in which the Contract Areas are located.

Overview of the six months to 30 June 2024

The Company's strategy is to transition into a mid-tier,copper-focused producer, which will be achieved through developing its considerable assets. Production from the Group's agitation leaching and flotation plants was suspended throughout the Period whilst permission was being obtained for a final raise of the tailings dam wall. Limited production of gold doré and copper continued throughout the Period by heap leach and SART processing. Only limited mining took place but development of the Gilar mine continued throughout the period.