Anglo Asian Regulatory News (AAZ)

21 February 2023

Anglo Asian Mining PLC

Mine Design completed and start of construction at Zafar

Anglo Asian Mining PLC ("Anglo Asian" or the "Company"), the AIM listed gold, copper and silver producer focused in Azerbaijan, is pleased to announce it has completed a Mining Scoping Study (the "Mining Study") for the Zafar underground mine. Development work and the construction of two portals has also started.

The Mining Study included a review of geotechnical conditions, optimal mining methods and mine scheduling and design. The mine will be constructed using sub-level caving ("SLC") supplemented by sub-level open stoping ("SLOS") on the margins of the mineralised zone. A primary haulage decline to access the ore body and a parallel ventilation decline are being constructed. The ventilation decline can be used as an escapeway which reduces risk. A schematic of the proposed design is shown in Figure 1.

The Zafar mine has JORC Mineral Resources of 28,000 tonnes of copper, 73,000 ounces of gold and 36,000 tonnes of zinc. The design is based on ore production of 700,000 tonnes per annum and a 0.5 per cent. copper equivalent cut-off grade.

The Mining Study was compiled by Mining Plus Pty Ltd and is available at https://www.angloasianmining.com/operations/zafar/ andhttp://www.rns-pdf.londonstockexchange.com/rns/5010Q_1-2023-2-20.pdf

Figure 1: Isometric view of the Zafar mine- dual decline mine design. Looking north-east

Construction has started on the two portals which are about 850 metres away from the Company's existing processing facilities and about 1,000 metres from the mineralisation with a design gradient of 1:11. Earthworks for the twin portals, power and compressor areas and a large laydown area for equipment have been completed. The Company is in the process of establishing a mine office, a workshop and heavy equipment maintenance facilities. Images of the portals and the surrounding area are shown in Figure 2.

Figure 2: Images of the portal and surrounding area (see key below)

A: Zafar portal area and building for workshop facilities

B: Location of twin portals

C: Portals under construction

D: Building housing the workshop

The Mining Study has modelled the costs for the mine. Analysis showed a positive net present value for the project. Sensitivity studies using higher than expected mining costs also produced a positive net present value.

Anglo Asian Vice-President, Stephen Westhead commented: "Completing the study provides confidence in our ability to profitably extract an initial 2 million tonnes of ore from the total 5.5 million tonnes as referenced in the JORC report. Once nearing the orebody, underground drilling will be conducted to further evaluate the growth potential of this copper-zinc deposit. The team look forward to updating the market on the developments at Zafar and its contribution to future production."

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014, which was incorporated into UK law by the European Union (Withdrawal) Act 2018, until the release of this announcement.

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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, who 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.

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'. Stephen Westhead consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears.

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. Stephen Westhead has reviewed the mineral resources included in this announcement.

Notice to editors

Anglo Asian Mining plc (AIM:AAZ) is a gold, copper and silver producer in south-west Asia with a broad portfolio of production and exploration assets in Azerbaijan. The Company produced 57,618 gold equivalent ounces ("GEOs") for the year ended 31 December 2022.

In December 2021, the Company undertook a private placement which acquired 19.8 per cent. of Libero Copper & Gold Corporation ("Libero"). Libero is listed on the TSX Venture Exchange in Canada and owns, or has the option to acquire, several copper exploration properties in North and South America, including Mocoa in Colombia, one of the world's largest undeveloped copper-molybdenum resources. Two further follow-on investments have been made in Libero to maintain the Company's shareholding at 19.8 per cent.

On 5 July 2022, the Parliament of Azerbaijan ratified amendments to the Company's Production Sharing Agreement, which granted it legal title to three additional concessions with a combined area of 882 square kilometres, including the Garadagh porphyry copper deposit, with a Soviet classified resource of over 300,000 tonnes of copper. https://www.angloasianmining.com/