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Quarterly Financial Results

14 Nov 2012 15:00

RNS Number : 1140R

EMED Mining Public Limited

14 November 2012

QUARTERLY FINANCIAL REPORT

14 November 2012

EMED Mining Public Limited (AIM: EMED, TSX: EMD) ("EMED Mining" or "the Comapny"), the Europe-based minerals development and exploration company, announces its unaudited results for the three months ended 30 September 2012 and its unaudited results for the nine-month period ending 30 September 2012.

The full unaudited Quarterly Report (as required by Toronto Stock Exchange reporting standards), including consolidated Financial Statements and the Management Discussion and Analysis relating to the Company, which appear below, are also available under the Company's profile on SEDAR at www.sedar.com and on the Company's website at www.emed-mining.com.

Highlights

·; The start of commissioning at the Rio Tinto Copper Mine remains targeted for end-2013.

·; Andalucian Government key approvals required for the project restart have progressed as follows:

- Administrative Standing: all documents in respect of legal, technical and economic capacities were updated as at the beginning of September, as requested by the regulatory authority, and lodged for final clearance;

- Environmental Plans: the complete report of AAU public comments from the Environment Ministry of the Junta de Andalucía was received in October 2012 and EMED has completed its responses to the few comments received from the public.

- Project Plans: the independent review from the technical review agency IGME (Instituto Geológico y Minero de España) has been completed in October 2012.

·; On 31 August 2012, the Company completed the acquisitions of certain land plots required for planned operations of the Rio Tinto Copper Project, pursuant to sale and purchase agreements entered with Rumbo 5-Cero, S.L. ("Rumbo") and Inland Trading 2006, S.L. ("Inland").

·; The €10 million purchase of land plots, covering part of the tailings dams owned by Rumbo, adjoining the Rio Tinto Copper Project was satisfied by €4.5 million in cash and €5.5 million by the allotment of 48,549,234 new ordinary shares of 0.25p each in the Company at 9.14 pence per share.

·; In addition, the parties have entered into a 50/50 joint venture - of which the Company will be the operator - to test and potentially exploit certain tailings and waste dumps.

·; The €5 million purchase of a land plot owned by Inland, covering part of the Rio Tinto Copper Project's main tailings dam wall and satisfying all of its needs for tailings deposition from proposed operations, along with the potential expansion thereof in the shorter term, was satisfied by €2.5 million in cash and €2.5 million by the allotment of 18,511,675 new ordinary shares of 0.25p each in the Company at 10.61 pence per share.

·; In addition, EMED Mining has been granted options by Inland and Construcciones Zeitung, S.L. to acquire additional plots of land in the surrounding district (the "Option Lands"), exercisable within four years at an aggregate price of €9 million. The Option Lands are of interest to the Company because of the scale of potential expansion of the Project in the longer term.

·; Detva Gold Project in Slovakia: further exploration progress was made at Banska Stiavnica licence with encouraging drill intercept of 5 metres at 5g/t gold-equivalent. The company also continues to advance application for a Mining Lease Area at the Biely Vrch Gold Deposit following community consultation.

Post Period Events

·; On 01 October 2012, Mr. Hui ("Harry") Liu, a Vice President of XGC based in China, was appointed as a non-executive director of EMED Mining. XGC is one of the world's largest copper smelting, refining and processing groups located in Shandong province of China and is a significant shareholder in the Company with a current shareholding of 137,626,181 ordinary shares, representing approximately 12% of the shares currently in issue.

·; On 14 November 2012 the Company announced that it has entered into conditional agreements with another cornerstone customer, Red Kite, for an aggregate funding package of US$50 million.

Commenting on these developments, Harry Anagnostaras-Adams, CEO of EMED, said:

"This was an eventful period for EMED and we are proud to make further progress towards finalising regulatory approvals in Andalucia for a restart of the first mine planned at the Rio Tinto Copper Project. We acquired all lands required for the mine operation and strengthened our financing package with addition of a new cornerstone customer."

Enquiries

EMED Mining	Harry Anagnostaras-Adams	+357 9945 7843
RFC Corporate Finance	Stuart Laing	+61 8 9480 2500
Fox-Davies Capital	Simon Leathers	+44 203 463 5022
Fairfax I.S. PLC	Ewan Leggat/Katy Birkin	+44 207 598 5368
Bishopsgate Communications	Nick Rome	+44 207 562 3350
Proconsul Capital	Andreas Curkovic	+1 416 577 9927

EMED MINING PUBLIC LIMITED

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(uNAUDITED)

	Notes	Three months ended 30 Sept 2012 € 000's	Three months ended 30 Sept 2011 € 000's	Nine months ended 30 Sept 2012 € 000's	Nine months ended 30 Sept 2011 € 000's
Exploration expenses		(399)	(411)	(900)	(1,105)
Care and maintenance expenses		(2,118)	(1,520)	(4,748)	(3,777)
Gross loss		(2,517)	(1,931)	(5,648)	(4,882)
Administration expenses		(954)	(1,050)	(3,666)	(2,928)
Other income		30	30	95	87
Share of results of associates		-	(70)	(136)	(201)
Net foreign exchange loss		(144)	(166)	(100)	(179)
Finance income		-	82	17	178
Finance costs		(122)	(354)	(385)	(1,051)
Loss before tax		(3,707)	(3,459)	(9,823)	(8,976)
Tax		551	558	1,578	1,363
Net loss for the period		(3,156)	(2,901)	(8,245)	(7,613)

Loss attributable to:
Equity holders of the parent		(3,155)	(2,900)	(8,243)	(7,612)
Non-controlling interest		(1)	(1)	(2)	(1)
Net loss for the period		(3,156)	(2,901)	(8,245)	(7,613)

Other comprehensive income/(loss):
Exchange differences on translating foreign operations		18	(123)	(10)	(26)
Total comprehensive loss for the period		(3,138)	(3,024)	(8,255)	(7,639)

Earnings per share information
Loss per share (cents)	4	(0.32)	(0.41)	(0.87)	(1.08)

EMED MINING PUBLIC LIMITED

CONDENSED interim CONSOLIDATED STATEMENTs OF FINANCIAL POSITION

(UNaudited)

	Notes	30 Sept 2012 € 000's	31 Dec 2011 € 000's
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment	5	45,642	28,363
Intangible assets	6	11,552	8,424
Deferred tax		7,399	5,812
Investment in associates		-	16
TOTAL NON-CURRENT ASSETS		64,593	42,615

CURRENT ASSETS
Available-for-sale financial assets		-	38
Trade and other receivables	7	3,839	1,358
Cash at bank and in hand		3,802	7,819
TOTAL CURRENT ASSETS		7,641	9,215

TOTAL ASSETS		72,234	51,830

EQUITY AND LIABILITIES
CAPITAL AND RESERVES
Share capital	8	3,402	2,603
Share premium	8	116,976	89,758
Share options reserve	9	5,533	5,269
Translation reserve		(157)	(147)
Accumulated losses		(69,691)	(61,448)
TOTAL EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT		56,063	36,035
Non-controlling interest		(108)	(106)
TOTAL EQUITY		55,955	35,929

NON-CURRENT LIABILITIES
Trade and other payables	10	9,052	11,051
Provision for liabilities and charges		7	7
TOTAL NON-CURRENT LIABILITIES		9,059	11,058

CURRENT LIABILITIES
Trade and other payables	10	7,220	4,843
TOTAL CURRENT LIABILITIES		7,220	4,843

TOTAL LIABILITIES		16,279	15,901

TOTAL EQUITY AND LIABILITIES		72,234	51,830

EMED MINING PUBLIC LIMITED

CONDENSED interim CONSOLIDATED STATEMENTs OF CHANGES IN EQUITY

(UNAUDITED)

		Share capital	Share premium	Share options reserve	Translation reserve	Accumulated losses	Total	Non -controlling interest	Total
		€'000	€'000	€'000	€'000	€'000	€'000	€'000	€'000

	Balance at 1 Jan 2011	2,059	79,492	5,015	(113)	(51,786)	34,667	(101)	34,566
Total comprehensive loss for the period		-	-	-	(26)	(7,612)	(7,638)	(1)	(7,639)
Issue of share capital		103	3,587	-	-	-	3,690	-	3,690
Share issue costs		-	(210)	-	-	-	(210)	-	(210)
Recognition of share based payments		-	-	206	-	-	206	-	206
Balance at 30 Sept 2011		2,162	82,869	5,221	(139)	(59,398)	30,715	(102)	30,613
Total comprehensive loss for the period		-	-	-	(8)	(2,050)	(2,058)	(4)	(2,062)
Issue of share capital		441	6,889	-	-	-	7,330	-	7,330
Recognition of share based payments		-	-	48	-	-	48	-	48
Balance at 31 Dec 2011		2,603	89,758	5,269	(147)	(61,448)	36,035	(106)	35,929
Total comprehensive loss for the period		-	-	-	(10)	(8,243)	(8,253)	(2)	(8,255)
Issue of share capital		799	28,296	-	-	-	29,095	-	29,095
Share issue costs		-	(1,078)	-	-	-	(1,078)	-	(1,078)
Recognition of share based payments		-	-	264	-	-	264	-	264
Balance at 30 Sept 2012		3,402	116,976	5,533	(157)	(69,691)	56,063	(108)	55,955

EMED MINING PUBLIC LIMITED

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

CASH FLOWS FROM OPERATING ACTIVITIES		Three months ended 30 Sept 2012	Three months ended 30 Sept 2011	Nine months ended 30 Sept 2012	Nine months ended 30 Sept 2011	Year ended 31 Dec 2011
	Notes	€ 000's	€ 000's	€ 000's	€ 000's	€ 000's

Loss before tax		(3,707)	(3,459)	(9,823)	(8,976)	(11,400)
Adjustments for:
Depreciation of property, plant and equipment	5	72	5	130	84	110
Share-based payments		49	113	151	206	254
Share of loss from associates		-	70	136	201	266
Dividends received		-	(8)	(5)	(8)	(11)
Interest income		-	(79)	(12)	(169)	(213)
Interest expense		122	170	385	838	1,120
Profit on disposal of property, plant and equipment		(5)	-	(5)	-	-
Deferred financing expense		-	71	-	213	284
Foreign exchange (profit)/loss on translation of foreign subsidiaries		(119)	401	(110)	58	85
Foreign exchange loss on operating activities		144	166	100	179	363
Loss before working capital changes		(3,444)	(2,550)	(9,053)	(7,374)	(9,142)
Changes in working capital:
Trade and other receivables		(2,429)	(209)	(2,481)	(124)	(291)
Trade and other payables		1,838	(180)	378	(784)	(1,486)
Cash used in operations		(4,035)	(2,939)	(11,156)	(8,282)	(10,919)
Interest paid		(122)	(170)	(385)	(838)	(1,120)
Tax paid		(7)	(20)	(9)	(20)	(22)
Net cash used in operating activities		(4,164)	(3,129)	(11,550)	(9,140)	(12,061)

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment	5	(16,159)	(769)	(17,409)	(1,497)	(2,436)
Proceeds from sale of property, plant and equipment		5	-	5	-	-
Purchase of intangible assets	6	(1,598)	(387)	(3,128)	(1,163)	(2,663)
Increase in the investment of associate		-	-	(120)	-	-
Proceeds from sale of investments		-	-	38	-	-
Dividends received		-	8	5	8	11
Interest received		-	79	12	169	213
Net cash used in investing activities		(17,752)	(1,069)	(20,597)	(2,483)	(4,875)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of share capital	8	16,631	-	29,095	3,432	3,432
Listing and issue costs		(477)	-	(965)	(210)	(210)
Net cash from financing activities		16,154	-	28,130	3,222	3,222
NET DECREASE IN CASH AND CASH EQUIVALENTS		(5,762)	(4,198)	(4,017)	(8,401)	(13,714)
Cash and cash equivalents:
At beginning of the period/year		9,564	17,330	7,819	21,533	21,533
At end of the period/year		3,802	13,132	3,802	13,132	7,819

EMED MINING PUBLIC LIMITED

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

for THE THREE and NINE months to 30 SEPTEMBER 2012 and 2011

(UNAUDITED)

1 General information

Country of incorporation

EMED Mining Public Limited (the "Company") was incorporated in Cyprus on 17 September 2004 as a private limited liability company in accordance with the provisions of the Cyprus Companies Law, Cap. 113 and was converted to a public limited liability company on 26 January 2005. Its registered office is at 1, Lampousas Street, Nicosia, Cyprus. The Company was listed on AIM of the London Stock Exchange in May 2005 and TSX on 20 December 2010.

Principal activities

The principal activity of the Company and its subsidiaries (the "Group") is to explore for and develop natural resources, with a focus on base and precious metals in certain belts of mineralisation spanning Europe, the Middle East and Central Asia.

2 Basis of preparation and accounting policies

Basis of preparation

The condensed interim consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) including International Accounting Standard 34 "Interim Financial Reporting" and using the historical cost convention.

These condensed interim consolidated financial statements ('the statements") are unaudited and include the financial statements of the Company and its subsidiary undertakings. They have been prepared using accounting bases and policies consistent with those used in the preparation of the consolidated financial statements of the Company and the Group for the year ended 31 December 2011. These condensed interim consolidated financial statements do not include all of the disclosures required for annual financial statements, and accordingly, should be read in conjunction with the consolidated financial statements and other information set out in the Company's 31 December 2011 Annual Report. The accounting policies are unchanged from those disclosed in the annual consolidated financial statements.

Going concern

The Directors have formed a judgment at the time of approving the condensed interim consolidated financial statements that there is a reasonable expectation that the Company has adequate resources available, or a reasonable expectation that resources are accessible to continue in operational existence for the foreseeable future. The financial statements have been prepared on a going concern basis, the validity of which depends principally on the discovery of economically viable mineral deposits, obtaining the necessary mining licences and the availability of subsequent funding to extract the resource or alternatively the availability of funding to extend the Company's exploration activities. The financial statements do not include any adjustment that would arise from a failure to complete any of the above. Changes in future conditions could require write downs of the carrying values of property, plant and equipment, intangible assets and/or deferred tax.

Use and revision of accounting estimates

The preparation of the condensed interim consolidated financial statements requires the making of estimations and assumptions that affect the recognised amounts of assets, liabilities, revenues and expenses and the disclosure of contingent liabilities. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

Adoption of new and revised International Financial Reporting Standards (IFRSs)

The Group has adopted all the new and revised IFRSs and International Accounting Standards (IAS) which are relevant to its operations and are effective for accounting periods commencing on 1 January 2012. The adoption of these Standards did not have a material effect on the condensed interim consolidated financial statements.

At the date of authorisation of these condensed interim consolidated financial statements some Standards were in issue but not yet effective. The Board of Directors expects that the adoption of these Standards in future periods will not have a material effect on the consolidated financial statements of the Group.

Critical accounting estimates and judgements

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are unchanged from those disclosed in the annual consolidated financial statements.

3 Business and geographical segments

Business segments

The Group has only one distinct business segment, being that of mineral exploration.

Geographical segments

The Group's exploration activities are located in Cyprus, Slovakia and Spain and its administration and management is based in Cyprus.

Three months ended 30 September 2012

	Cyprus	Georgia	Slovakia	Europe	Spain	Total
	€'000	€'000	€'000	€'000	€'000	€'000

Operating (loss)/profit	(675)	4	(454)	11	(2,327)	(3,441)
Finance costs	-	-	-	-	(122)	(122)
Foreign exchange loss	(125)	(19)	-	-	-	(144)
Operating (loss)/profit for the period	(800)	(15)	(454)	11	(2,449)	(3,707)
Share of results from associates						-
Loss before tax						(3,707)
Tax						551
Net loss for the period						(3,156)

Nine months ended 30 September 2012

	Cyprus	Georgia	Slovakia	Europe	Spain	Total
	€'000	€'000	€'000	€'000	€'000	€'000

Operating (loss)/profit	(2,626)	1	(948)	(7)	(5,639)	(9,219)
Finance income	12	-	-	-	5	17
Foreign exchange (loss)/gain	(109)	9	-	-	-	(100)
Finance costs	-	-	-	-	(385)	(385)
Operating (loss)/profit for the period	(2,723)	10	(948)	(7)	(6,019)	(9,687)
Share of results from associates						(136)
Loss before tax						(9,823)
Tax						1,578
Net loss for the period						(8,245)



Total assets	3,174	-	446	51	68,563	72,234

Total liabilities	420	-	7	22	15,830	16,279

Depreciation of fixed assets	37	-	64	-	29	130

	Three months ended 30 September 2011
		Cyprus	Georgia	Slovakia	Europe	Spain	Total
		€'000	€'000	€'000	€'000	€' 000	€'000

Operating loss		(581)	(1)	(303)	(127)	(1,939)	(2,951)
Finance income		80	-	-	-	2	82
Foreign exchange (loss)/gain		(249)	83	-	-		(166)
Finance costs		(208)	-	-	-	(146)	(354)
Operating (loss)/profit for the period		(958)	82	(303)	(127)	(2,083)	(3,389)
Share of results from associates							(70)
Loss before tax							(3,459)
Tax							558
Net loss for the period								(2,901)

	Nine months ended 30 September 2011
		Cyprus	Georgia	Slovakia	Europe	Spain	Total
		€'000	€'000	€'000	€'000	€' 000	€'000

Operating loss		(1,916)	(1)	(846)	(301)	(4,659)	(7,723)
Finance income		170	-	-	-	8	178
Foreign exchange loss		(165)	(14)	-	-	-	(179)
Finance costs		(604)	-	-	-	(447)	(1,051)
Operating loss for the period		(2,515)	(15)	(846)	(301)	(5,098)	(8,775)
Share of results from associates							(201)
Loss before tax							(8,976)
Tax							1,363
Net loss for the period								(7,613)



Total assets		12,545	-	95	51	41,592	54,283

Total liabilities		7,995	-	20	28	15,632	23,675

Depreciation of fixed assets		33	-	33	-	18	84

4 Loss per share

The calculation of the basic and diluted earnings per share attributable to the ordinary shareholders of the parent is based on the following data:

	Three months ended 30 Sept 2012	Three months ended 30 Sept 2011	Nine months ended 30 Sept 2012	Nine months ended 30 Sept 2011
	€ 000's	€ 000's	€ 000's	€ 000's

Net loss attributable to equity shareholders	(3,155)	(2,900)	(8,243)	(7,612)

Weighted average number of ordinary shares for the purposes of basic earnings per share ('000s)	988,507	708,400	953,756	703,323

Loss per share (cents)	(0.32)	(0.41)	(0.87)	(1.08)

The fully diluted loss per share is the same as the basic loss per share as the exercise of the share options would decrease the basic loss per share, thus being anti-dilutive.

5 Property, plant and equipment

	Land and buildings	Plant and machinery	Motor vehicles	Furniture, fixtures and equipment	Total
Cost	€ 000's	€ 000's	€ 000's	€ 000's	€ 000's
At 1 January 2011	18,243	7,759	163	149	26,314
Additions	-	1,332	69	96	1,497
At 30 September 2011	18,243	9,091	232	245	27,811
Additions	68	851	-	20	939
At 31 December 2011	18,311	9,942	232	265	28,750
Additions	16,749	521	44	95	17,409
Disposals	-	-	(16)	-	(16)
At 30 September 2012	35,060	10,463	260	360	46,143

Depreciation
At 1 January 2011	-	101	101	75	277
Charge for the period	-	24	42	18	84
At 30 September 2011	-	125	143	93	361
Charge for the period	-	7	11	8	26
At 31 December 2011	-	132	154	101	387
Charge for the period	-	24	64	42	130
Disposals	-	-	(16)	-	(16)
At 30 September 2012	-	156	202	143	501
Net book value
At 30 September 2012	35,060	10,307	58	217	45,642

At 31 December 2011	18,311	9,810	78	164	28,363

The above fixed assets are located in Cyprus, Spain and Slovakia.

The Rio Tinto Copper Project

On 31 August 2012, the Company completed the acquisitions of certain land plots required for planned operations of the Rio Tinto Copper Project, pursuant to sale and purchase agreements entered with Rumbo 5-Cero, S.L. ("Rumbo") and Inland Trading 2006, S.L. ("Inland").

The €10 million purchase of land plots, covering part of the tailings dams owned by Rumbo, adjoining the Rio Tinto Copper Project was satisfied by €4.5 million in cash and €5.5 million by the allotment of 48,549,234 new ordinary shares of 0.25p each in the Company at 9.14 pence per share.

In addition, the parties have entered into a 50/50 joint venture - of which the Company will be the operator - to test and potentially exploit certain tailings and waste dumps.

The €5 million purchase of a land plot owned by Inland, covering part of the Rio Tinto Copper Project's main tailings dam wall and satisfying all of its needs for tailings deposition from proposed operations, along with the potential expansion thereof in the shorter term, was satisfied by €2.5 million in cash and €2.5 million by the allotment of 18,511,675 new ordinary shares of 0.25p each in the Company at 10.61 pence per share.

In addition, EMED Mining has been granted options by Inland and Construcciones Zeitung, S.L. to acquire additional plots of land in the surrounding district (the "Option Lands"), exercisable within four years at an aggregate price of €9 million. The Option Lands are of interest to the Company because of the scale of potential expansion of the Project in the longer term.

6 Intangible assets

	Permits of Rio Tinto Project	Acquisition of mineral rights	Goodwill	Total
Cost	€'000	€'000	€'000	€'000
At 1 January 2011	5,761	310	10,023	16,094
Additions	2,663	-	-	2,663
At 31 December 2011	8,424	310	10,023	18,757
Additions	3,128	-	-	3,128
At 30 September 2012	11,552	310	10,023	21,885
Provision for impairment
On 1 January 2011	-	310	10,023	10,333
Provision for the period	-	-	-	-
At 31 December 2011	-	310	10,023	10,333
Provision for the period	-	-	-	-
At 30 September 2012	-	310	10,023	10,333
Net book value
At 30 September 2012	11,552	-	-	11,552
At 31 December 2011	8,424	-	-	8,424

The Rio Tinto Copper Project

In September 2008, the Group moved to 100% ownership of EMED Tartessus (and thus full ownership of the Rio Tinto Copper Project) by acquiring the remaining 49% of the issued capital of EMED Tartessus. The cost of the acquisition was the issuance of 39,140,000 Ordinary Shares to Astor Management AG (formerly MRI Group) at a deemed issue price of 21p per Ordinary Share and a deferred cash settlement of €52,999,999 (including certain loans owed to members of the Astor Group which were incurred in relation to the operation of the Rio Tinto Copper Project amounting to €9,116,617) to be paid by the Group over six or seven years. This consideration is payable once the authorisation from the Junta de Andalucía to restart mining activities in the Rio Tinto Copper Project has been granted and project finance and shareholder approval has been obtained.

In consideration for agreeing to pay the deferred cash settlement over 6 years, the Company agreed to, among other things, potentially pay further deferred consideration of up to €15,900,000 in regular instalments over the deferred consideration payment period depending upon the price of copper. Any such additional payment will only be made if, during the relevant period, the average price of copper per tonne is $6,613.86 or more ($3.00/lb).

The funds required to make these payments, should EMED proceed with the restart of the Rio Tinto Project, would be sourced from senior project debt and from project cash flow.

Carrying Value of Intangible Assets

The ultimate recoverability of balances carried forward in relation to areas of interest or all such assets including intangibles is dependent on successful development, and commercial exploitation or, alternatively sale of the respective areas. The Company conducts impairment testing on an annual basis unless indicators of impairment are present at the reporting date.

In considering the carrying value of the assets at the Rio Tinto Copper Project, including the intangible assets and any impairment thereof, the Company assessed the carrying values having regard to (a) the current recovery value (less costs to sell) and (b) the net present value of potential cash flows from operations. In both cases, the estimated net realisable values exceeded current carrying values and thus no impairment has been recognised.

Regua Tungsten Deposit in Portugal

In September 2010, Iberian Resources Portugal Minerais Unipessoal LDA granted the Company an option to acquire a 100% interest in all of the assets held by it in respect of the Regua Tungsten Deposit in Portugal. As consideration for the grant of the option, the Company issued 2,500,000 Ordinary Shares at a deemed issue price of £0.105.

On 4 January 2012 the Company announced that it allowed to lapse on 31 December 2011 its option over the exploration permit covering the Regua Tungsten Deposit. This decision reflects the results of the evaluation conducted during the period since September 2010. All expenditure on the Regua Tungsten Deposit was impaired.

7 Trade and other receivables

	30 Sept 2012 € 000's	31 Dec 2011 € 000's

Receivables from associates	77	145
Deposits and prepayments	480	648
VAT	3,282	565
	3,839	1,358

8 Share capital and share premium


Authorised				Number of shares 000's	Share Capital GBP 000's	Share premium GBP 000's	Total GBP 000's
Ordinary shares of GBP0.0025 each				1,400,000	3,500	-	3,500

Issued and fully paid				000's	€ 000's	€ 000's	€ 000's
Balance at 1 January 2012				856,452	2,603	89,758	92,361
Issue Date	Price (GBP)
7 Jan 12	0.073	Interest	a)	1,540	5	132	137
21 Feb 12	0.086	Warrants exercised	b)	1,800	5	180	185
16 Mar 12	0.087	Warrants exercised	c)	500	1	51	52
19 Mar 12	0.090	Share placement	d)	105,378	317	11,089	11,406
25 Apr 12	0.041	Options exercised	e) e	250	1	12	13
20 Jun 12	0.084	Warrants exercised	f)	6,435	20	651	671
28 Aug 12	0.100	Share placement	g)	32,248	103	4,010	4,113
29 Aug 12	0.085	Share placement	h)	41,672	133	4,385	4,518
31 Aug 12	0.089	Share placement	i)	48,549	155	5,345	5,500
31 Aug 12	0.107	Share placement	j)	18,512	59	2,441	2,500
		Share issue costs		-	-	(1,078)	(1,078)

Balance at 30 September 2012				1,113,336	3,402	116,976	120,378

Authorised capital

On 12 March 2012, the Company held an extraordinary general meeting of shareholders of the Company at which shareholders approved an increase to the authorized share capital of the Company to £3,500,000 comprised of 1,400,000,000 Ordinary Shares of £0.0025 each.

Issued capital

2012

a) On 7 January 2012, 1,540,081 shares at GBP 0.0025 were issued at a price of GBP 0.073. Upon the issue an amount of €132,256 was credited to the Company's share premium reserve.

b) On 21 February 2012, 1,799,900 shares at GBP 0.0025 were issued upon exercise of warrants at a price of GBP 0.086. Upon the issue an amount of €179,604 was credited to the Company's share premium reserve.

c) On 16 March 2012, 500,000 shares at GBP 0.0025 were issued upon exercise of warrants at a price of GBP 0.087. Upon the issue an amount of €50,581 was credited to the Company's share premium reserve.

d) On 19 March 2012, 105,378,519 shares at GBP 0.0025 were issued at a price of GBP 0.090. Upon the issue an amount of €11,089,179 was credited to the Company's share premium reserve.

e) On 25 April 2012, 250,000 shares at GBP 0.0025 were issued upon exercise of options at a price of GBP 0.041. Upon the issue an amount of €11,881 was credited to the Company's share premium reserve.

f) On 20 June 2012, 6,434,999 shares at GBP 0.0025 were issued upon exercise of warrants at a price of GBP 0.084. Upon the issue an amount of €651,427 was credited to the Company's share premium reserve.

g) On 28 August 2012, 32,247,662 shares at GBP 0.0025 were issued at a price of GBP 0.1. Upon the issue an amount of €4,010,359 was credited to the Company's share premium reserve.

h) On 29 August 2012, 41,672,243 shares at GBP 0.0025 were issued at a price of GBP 0.085. Upon the issue an amount of €4,385,118 was credited to the Company's share premium reserve.

i) On 31 August 2012, 48,549,234 shares at GBP 0.0025 were issued at a price of GBP 0.090. Upon the issue an amount of €5,345,189 was credited to the Company's share premium reserve.

j) On 31 August 2012, 18,511,675 shares at GBP 0.0025 were issued at a price of GBP 0.107. Upon the issue an amount of €2,440,971 was credited to the Company's share premium reserve.

Warrants

The Company has issued warrants to advisers to the Group. Warrants, noted below, expire five or one and a half years after the grant date and are exercisable at the exercise price.

2012

a) On 2 July 2012, 1 million warrants were issued to an external advisor which expire five years after the grant date, and are exercisable at any time within that period.

b) On 22 August 2012, 0.33 million warrants were issued to Canaccord Genuity which expire five years after the grant date, and are exercisable at any time within that period.

c) On 22 August 2012, 1.75 million warrants were issued to Fox Davies Capital which expire five years after the grant date, and are exercisable at any time within that period.

Details of share warrants outstanding as at 30 September 2012:

		Number of share warrants 000's

Outstanding warrants at 1 January 2012:		11,513
- granted during the reporting period		3,084
- cancelled/expired during the reporting period		(1,542)
- exercised during the reporting period		(8,734)

Outstanding warrants at 30 September 2012		4,321

9 Share options and share option reserve


	30 Sept 2012 €'000	31 Dec 2011 €'000

Opening balance	5,269	5,015
Recognition of share based payment	264	254
Closing balance	5,533	5,269

		Number of share options 000's

Outstanding options at 1 January 2012:		76,351
- granted during the reporting period		1,000
- cancelled/expired during the reporting period		(6,341)
- exercised during the reporting period		(250)

Outstanding options at 30 September 2012		70,760

2012

On 21 April 2012, an option was granted to subscribe at any time until 20 April 2017 for an aggregate total of 1,000,000 Ordinary Shares at an exercise price per Ordinary Share of 10.5 pence. These options expire five years after the date of issue, vest in equal installments from the date of grant of administrative standing over the lesser of three years or the time remaining to the expiry of the option.

For the nine months ended 30 September 2012, the impact of share-based payments was a net charge to income of €151,000 (31 December 2011: €254,000) and €1,078,000 share issue costs charged to share premium (31 December 2011: €210,000). At 30 September 2012, the equity reserve recognised for share based payments amounted to €5.53 million (31 December 2011: €5.27 million).

10 Trade and other payables


	30 Sept 2012 € 000's	31 Dec 2011 € 000's
Current Trade and other payables
Trade payables and accruals	3,820	2,030
Social Security debt (see below)	3,400	2,813
	7,220	4,843

Non-current Trade and other payables
Other payables	614	-
Social Security debt (see below)	8,438	11,051
	9,052	11,051

On 25 May 2010, EMED Tartessus S.L recognised a debt with the Social Security's General Treasury in Spain amounting to €16.9 million and incurred by a previous owner, to stop the execution process by public auction of certain land initiated by that entity. On 30 September 2012, the balance of this debt amounts to €11.8 million. Of the non-current element of the debt, €8.4 million is payable within 1-3 years.

11 Acquisition of subsidiaries

There were no acquisitions in the nine months ended 30 September 2012.

12 Related party transactions

The following transactions were carried out with related parties:

Compensation of key management personnel

The total remuneration of the Directors and other key management personnel was as follows:

	Three months ended 30 Sept 2012	Three months ended 30 Sept 2011	Nine months ended 30 Sept 2012	Nine months ended 30 Sept 2011
	€ 000’s	€ 000’s	€ 000’s	€ 000’s

Directors’ fees	184	154	541	423
Directors’ other benefits	44	80	314	150
Share option-based benefits to directors	-	-	20	37
Key management personnel fees	160	130	476	395
Share option-based and other benefits to key management personnel	32	29	259	129
	420	393	1,610	1,134

Share-based benefits

The directors and key management personnel have been granted options as set out in Note 9.

Transactions with KEFI Minerals Plc

The Company has an ongoing service agreement with KEFI Minerals Plc for provision of management and other professional services.

	Three months ended 30 Sept 2012	Three months ended 30 Sept 2011	Nine months ended 30 Sept 2012	Nine months ended 30 Sept 2011
	€ 000's	€ 000's	€ 000's	€ 000's

Transactions with KEFI Minerals Plc	30	30	65	87

13 Contingent liabilities

In 2010, EMED Tartessus was notified that the Andalucían Water Authority ("AWA") had opened a file following allegations by third parties of unauthorized industrial discharges from the Tailings Management Facility ("TMF") at the Rio Tinto Copper Project in the winter months of 2010. The file was suspended pending the outcome of the judicial claims. In December 2011 the judicial claims were dismissed by the appeals Court.

The file has now been re-opened to deal with the purported environmental damages from the winter months of 2011. The original sanction proposed was potentially a fine of €450,000 and damages in the amount of €1.2 million, which has now been increased to €1,418,006.91 due to accumulating allegations of discharges during 2011.

It is improbable that any fine or sanction will be imposed once the file, if re-opened, reaches its conclusion in approximately 3-5 years, and in any event the Company would only be responsible for payment of that amount proportional to its ownership of the TMF, this being 33% at the time of the alleged events. Nonetheless, the Company believes that all charges will be dismissed in due course given the circumstances and the clear recognition of those circumstances in the complete dismissal of all judicial charges.

14 Commitments

There are no minimum exploration requirements at the Rio Tinto Copper Project. However, the Group is obliged to pay municipal taxes which currently are approximately €88,000 per year in Spain and the Group is required to maintain the Rio Tinto site in compliance with all applicable regulatory requirements.

Currently the official exploration budget across the Slovakian tenements, according to the exploration programs submitted to the competent Ministry of Environment, is approx. €3.9 million in total (the total proposed expenditure for the period 2009 to 2015 for all 6 tenements). 70% of the proposed budget is €2.7 million, which represents the minimum financial obligation for potential extensions of current lease holdings. For 2012, only two tenements will complete the first year of the initial 4 year exploration period and thus the minimum 10% required expenditure is approx. €47,000. Moreover there are annual tenement rental fees in the order of €90,000 per year. EMED has met its obligations to date and the exploration program for Slovakia will more than fulfill these commitments. All annual technical and financial reports have been submitted in time and approved straightforwardly.

In Cyprus, there are no exploration commitments required and tenement rentals are approximately €36,000 per annum.

15 Events after the reporting period

On 1 October 2012 the Company announced the appointment of China-based Mr. Hui ("Harry") Liu as a non-executive director of the Company. Mr. Liu was appointed as a director of the Company by Yanggu Xiangguang Copper Co. Ltd ("XGC") pursuant to its rights under the subscription agreement with the Company dated 7 July 2012. XGC is one of the world's largest copper smelting, refining and processing groups located in Shandong province of China and is a significant shareholder in the Company with a current shareholding of 137,626,181 ordinary shares, representing approximately 12% of the shares currently in issue.

On 14 November 2012 the Company announced that it has entered into conditional agreements with another cornerstone customer, Red Kite, for an aggregate funding package of US$50 million, comprising:

(i) An investment by Red Kite of US$15 million (approximately £9,447,000) in the Company by way of a subscription for a total of 63,829,787 new ordinary shares of 0.25 pence each ("Ordinary Shares") in two separate tranches at a price of 14.8 pence per share (equivalent approximately to US$0.235) (the "Subscription") which is a 52.6% premium over the VWAP (volume weighted average price) for the 20 trading days immediately prior to the signing of the non-binding term sheet in relation to the Subscription;

(ii) The entering into a commitment letter (the "Commitment Letter") by Red Kite to conditionally agree to underwrite or arrange a standby loan facility of US$35 million, subject to certain conditions being met, in connection with the restart of commercial production at the Rio Tinto Copper Project (the "Standby Loan Facility"); and

(iii) The granting to Red Kite of limited off-take rights over the Rio Tinto Copper Project's copper production based on current reported life of mine reserves from the planned initial operations (the "Off-take Rights").

Highlights of the transactions with Red Kite

• The Subscription will be in two separate tranches with 50,000,000 Ordinary Shares being subscribed for in the first tranche and 13,829,787 in the second tranche. Both tranches will be conditional upon the approval by the Toronto Stock Exchange ("TSX") and admission to trading on AIM of the relevant tranche ("Admission"). The subscription for the Second Tranche Shares (as defined below) is also conditional upon approval by the shareholders of the Company (the "Shareholders") at the extraordinary general meeting of the Company to be held in December 2012 (the "EGM"). Notice convening the EGM will be despatched by the Company to Shareholders shortly.

• The Standby Loan Facility is subject to the parties negotiating and entering into definitive documentation including inter-creditor agreements and consents required to give effect to security and ranking provisions contained in the terms underlying the funding arrangements.

• The Company's subsidiary, EMED Marketing Limited ("EMED Marketing") has granted Red Kite Off-take Rights to purchase 27% of the annual copper concentrate production from the Rio Tinto Mine Copper Project based on its current reported life of mine existing reserves. In the event that:

(i) definitive documentation in respect of the Standby Loan Facility is not entered into by 31 December 2013;

(ii) the Company notifies Red Kite that it no longer requires the Standby Loan Facility; or

(iii) following execution of definitive documentation for the Standby loan facility, Red Kite fails to make an advance in accordance with the terms of such documentation

Red Kite's entitlement automatically reduces from 27% to 13.5% of annual copper production.

There were no other material events after the reporting period, which have a bearing on the understanding of the condensed interim consolidated financial statements.

Management's Responsibility for Financial Reporting

The accompanying condensed interim unaudited consolidated financial statements of EMED Mining Public Limited were prepared by management in accordance with International Financial Reporting Standards ("IFRS"). Management acknowledges responsibility for the preparation and presentation of the condensed interim unaudited consolidated financial statements, including responsibility for significant accounting judgments and estimates and the choice of accounting principles and methods that are appropriate to the Company's circumstances. The significant accounting policies of the Company are summarised in Note 2 to the condensed interim unaudited consolidated financial statements.

Management has established systems of Internal Control over the Financial Reporting ("ICFR"), process, which are designed to provide reasonable assurance that relevant and reliable financial information is produced. There was no change in the Company's ICFR that occurred during the period beginning on 1 January 2012 and ended on 30 September 2012 that has materially affected, or is reasonably likely to materially affect, the Company's ICFR.

The Board of Directors is responsible for reviewing and approving the condensed interim unaudited consolidated financial statements and for ensuring that management fulfils its financial reporting responsibilities. An Audit and Financial Risk Management Committee assists the Board of Directors in fulfilling this responsibility. The members of the Audit and Financial Risk Management Committee are not officers of the Company. The Audit and Financial Risk Management Committee meets with management to review the internal controls over the financial reporting process, the consolidated financial statements and the auditors' report. The Audit and Financial Risk Management Committee also reviews the Annual Report to ensure that the financial information reported therein is consistent with the information presented in the consolidated financial statements. The Audit and Financial Risk Management Committee reports its findings to the Board of Directors for its consideration in approving the condensed interim unaudited consolidated financial statements for issuance to the shareholders.

Management recognises its responsibility for conducting the Company's affairs in compliance with established financial standards, and applicable laws and regulations, as defined in National Instrument 52-109-Certification of Disclosure in Issuer's Annual and Interim Fillings ("NI 52-109") of the Canadian Securities Regulators, and for maintaining proper standards of conduct for its activities.

MANAGEMENT'S DISCUSSION AND ANALYSIS

FOR THE THREE AND NINE MONTHS ENDED 30 SEPTEMBER 2012

This Management's Discussion and Analysis ("MD&A") should be read in conjunction with the unaudited condensed interim consolidated financial statements and related notes thereto of EMED Mining Public Limited (the "Company" or "EMED Mining") and its subsidiaries (the "Group" or "EMED") for the three and nine months ended 30 September 2012. The unaudited condensed interim consolidated financial statements and related notes on which the MD&A are based have been prepared in accordance with the International Financial Reporting Standards ("IFRS"). The Company's presentation currency is the Euro.

This report which is dated 14 November 2012 and the Company's other public filings, including its most recent Annual Information Form, can be viewed via the SEDAR website (www.sedar.com).

Cautionary Statements Regarding Forward Looking Statements

This MD&A contains "forward‑looking information" which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company, and the Group and its projects, the future price of metals, the estimation of ore reserves and mineral resources, the conversion of mineral resource estimates to ore reserve estimates, the realization of ore reserve estimates, the timing and amount of estimated future production, costs of production, capital, operating and exploration expenditures, costs and timing of the development of new deposits, costs and timing of future exploration, requirements for additional capital, government regulation of mining operations, environmental risks, reclamation expenses, title disputes or claims, limitations of insurance coverage and the timing and possible outcomes of pending litigation and/or regulatory matters. Often, but not always, forward‑looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate" or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Accordingly, readers should not place undue reliance on forward‑looking statements.

Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and are based on facts and assumptions that management considers reasonable. The material assumptions upon which such forward-looking statements are based include, among others, that: the grant of Administrative Standing (as defined herein) will be obtained; all other regulatory approvals and authorizations from the Andalucía Government and departmental ministries will be obtained; requisite shareholder approval for project restart will be obtained if required; definitive documentation for project financing will be completed; regulatory and political views regarding the Rio Tinto Copper Project will remain positive and unchanged; the demand for copper will develop as anticipated; that the price of copper will remain at levels that render the Rio Tinto Copper Project economic; the mineral resource and reserve estimates as disclosed in the Rio Tinto Technical Report (as defined herein) will be realized; and that there are no material unanticipated variations in the production, capital cost and economic estimates as disclosed in the Rio Tinto Technical Report.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward‑looking statements. Such factors include, among others: general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; actual results of reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of metals; the future cost of capital to the Company; possible variations of ore grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; political instability, terrorism, insurrection or war; delays in obtaining governmental approvals or financing or in the completion of development or construction activities, as well as those factors discussed in the section entitled "Risk Factors" in the Company's Annual Information Form for the year ended 31 December 2011 (the "AIF") available under the Company's profile on SEDAR at www.sedar.com.

Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward‑looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward‑looking statements contained herein are made as of the date of this AIF and the Company disclaims any obligation to update any forward‑looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws. There can be no assurance that forward‑looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Reconciliation Note between JORC and CIM Standards

This MD&A may contain disclosure of mineral resources and ore reserves using the Australasian Code for Reporting of Mineral Resources and Ore Reserves prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Mineral Council of Australia, as amended ("JORC"). While the technical disclosure on the Company's material properties in this MD&A has been prepared in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") of the Canadian Securities Administrators, the estimates of mineral resources and ore reserves are disclosed using the categories under JORC. There is no material difference between JORC and The Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Definition Standards for Mineral Resources and Mineral Reserves" adopted by the CIM Council on 11 December 2005.

History and Strategy

EMED Mining (AIM:EMED, TSX:EMD) is committed to the development of metal production operations in Europe, with an initial focus on copper and gold. The strategy is to evaluate and prioritise metal production opportunities in several jurisdictions throughout the well-known belts of base and precious metal mineralisation in the European region.

In Spain, the Group's Rio Tinto Copper Project provides an excellent opportunity to bring a large copper mine back into production at a relatively low total cost as it already has an established open-pit mine, processing plant and other infrastructure.

In Slovakia, the Biely Vrch deposit at the Group's Detva Gold Project is a potential greenfields development of an open-pit gold mine.

EMED Mining has earlier-stage activities in Cyprus via its 95%-owned subsidiary, and in Saudi Arabia via 15.1%-owned associate KEFI Minerals Plc. In 2009, KEFI Minerals formed the Gold and Minerals Joint Venture ("G&M") in Saudi Arabia with a local Saudi partner to explore for gold and associated metals in the Arabian Shield. To date, Kefi Minerals, in conjunction with its joint venture partner (Abdul Rahman Saad Al-Rashid & Sons Company Limited ("ARTAR")) has conducted preliminary regional reconnaissance and lodged 23 Exploration Licence Applications (ELAs), of which 4 have been granted. Diamond drilling has commenced on 2 licences and a geophysics programme started on one prospect.

EMED Mining is managed by a well-qualified, multi-cultural team drawn initially from Australia and the United States of America and now predominantly comprised of European citizens. The main priority for the short term is to safely and efficiently start copper production at the Rio Tinto Copper Project once EMED Mining has completed the regulatory approval process, financed the start-up and obtained shareholder approval.

The Company, listed on AIM in May 2005 and on the TSX in December 2010 continues to be dependent upon cash generated from equity financings to fund its activities.

Overview of Operations and Significant Events

EMED Mining remains focused on copper at the Rio Tinto Copper Project in Spain and gold at the Detva Gold Project in Slovakia and has been continuing its development and maintenance activities in Spain and exploration activities in Slovakia, as well as the administration and maintenance of the Group's operations in compliance with all regulatory requirements.

The ownership of the Company consists of substantial international mining investment specialists including the following:

·; The Board and senior management who come from Australia, Canada, the United States of America and Europe include mining engineers, metallurgical engineers, financiers and management specialists with extensive experience in project development and operations;

·; Resource Capital Fund IV L.P. ("RCF"), the world's largest group of mine development investment funds, is based in the United States of America with offices in Australia and Canada;

·; Yanggu Xiangguang Copper Co. Ltd ("XGC"), a large copper smelting group based in China which has agreed to be a cornerstone customer and project financier for the Rio Tinto Copper Project;

·; RBC Asset Management, a leading Canadian funds management company;

·; Rand Merchant Bank ("RMB"), a large South African mining bank with specialist mine investment teams based in Australia, United Kingdom and the United States of America;

·; RK Mine Finance (Master) Fund II LP ("Red Kite"), a New York based copper trading and investment company

·; Rumbo 5-Cero S.L. ("Rumbo"), part of an established diversified Andalucían investment group.

During the third quarter the following developments are particularly noteworthy:

The Company´s Unified Environmental Authorisation ("AAU") (which includes the Environmental Impact Statement ('EIS') and final restoration plan amongst other environmental permits) public review period concluded on July 24 2012. The Company has completed its responses to the public comments received, none of which are considered material. Once all review processes have been finalised, the Company expects to receive AAU authorisation conditional upon certain undertakings which have been taken into account in project planning.

On 31 August 2012, the Company announced that it completed purchase agreements for all remaining lands, required for the operation of the Rio Tinto Copper Project from Rumbo and Inland Trading 2006, S.L. ("Inland"). This was an important achievement because it eliminated the need for the Company to use compulsory acquisition processes that could have extended the time for project start-up.

The €10 million purchase of certain land plots covering part of the tailings dams owned by Rumbo, adjoining the Rio Tinto Copper Project was satisfied by €4.5 million in cash and €5.5 million by the allotment of 48,549,234 new ordinary shares of 0.25p each in the Company at 9.14 pence per share. In addition, the parties intend to enter into a 50/50 joint venture - of which the Company will be the operator - to test and potentially exploit certain tailings and waste dumps.

The €5 million purchase of the last land plot required for planned operations of the Rio Tinto Copper Project, owned by Inland, covering part of the Rio Tinto Copper Project's main tailings dam wall and satisfying all of the project's needs for tailings deposition from proposed operations along with the potential expansion thereof in the shorter term was satisfied by €2.5 million in cash and €2.5 million by the allotment of 18,511,675 new ordinary shares of 0.25p each in the Company at 10.61 pence per share.

In addition, EMED Mining has been granted options by Inland and Construcciones Zeitung, S.L. ("Zeitung") to acquire additional plots of land in the surrounding district (the "Option Lands"), exercisable within four years at an aggregate price of €9 million. The Option Lands are of interest to the Company because of the scale of potential expansion in the longer term.

Development will be contingent upon the Company's ability to access additional funding through a combination of debt and equity. The general liquidity of the capital markets therefore, which is in turn dependent on the outlook for prices of copper, gold and other commodities, is a major contributing factor to the successful completion of the Group's plans.

As previously reported, the Company has negotiated preliminary arrangements with XGC and Goldman Sachs International to potentially provide $190 million in funding for the Rio Tinto Copper Project restart. Since the end of the quarter, further arrangements have been put in place with Red Kite who have made a commitment to make an immediate equity investment of $15 million and have undertaken to provide, under certain conditions, further project funding of $35 million. Apart from the additional equity, this now brings total available potential project funding to $225 million.

Apart from the equity investments, project funding is subject to the parties negotiating and entering into definitive documentation including inter-creditor agreements and consents required to give effect to security and ranking provisions contained in the terms underlying the funding arrangements.

Mineral Exploration and Development Property Interests

Spain - The Rio Tinto Copper Project

EMED Mining, via its wholly-owned subsidiary EMED Tartessus, owns 100% of the Rio Tinto Copper Project in Andalucía, Spain. The Group is the owner of the mine, the mineral rights and the processing plant and is complying with all regulatory requirements to be awarded Administrative Standing (or "Titularidad Administrativa") along with the operating project and the environmental plans, so that the project can proceed, ultimately to restart copper production.

As detailed in a NI 43-101 Technical Report1, key anticipated production parameters for the Rio Tinto Copper Project are:

·; Ramp-up to a 9 million tonne per annum ("tpa") throughput over a two-year period;

·; Open-pit mine with average waste-to-ore strip ratio of ~ 1.1 to 1;

·; Contained copper-in-concentrate averaging ~37,000 tpa;

·; Measured and Indicated Resources = 203 million tonnes at 0.46% copper, containing 933,000 tonnes of copper (inclusive of Ore Reserves);

·; Ore Reserves = 123 million tonnes at 0.49% copper, containing 600,000 tonnes of copper;Mine life > 14 years.

·; Project cost estimates will require refinement when permitting conditions are finalised and after engineering is duly completed and procurement arranged.

Note 1 : Behre Dolbear International Ltd report entitled "Amended and Restated NI 43-101 Technical Report on Reopening the Rio Tinto Copper Project, Huelva Province, Spain" dated November 17, 2010, which is available under EMED Mining's corporate profile at www.sedar.com.

Steps to Restart Copper Production

·; Revised costs will need to reflect the following:

§ the expanded restoration footprint agreed with the Andalucian Government and the scheduling of consequential environmental works,

§ anticipated revisions in equipment specifications or prices,

§ foreign exchange movements,

§ the refined scheduling of plant repairs, improvements and modernisation, and

§ working capital buffers.

It is also anticipated that the following project features will also be revised in due course after exploration drilling has been conducted:

·; Ore Reserves (Proven and Probable - 123 million tonnes at 0.49% copper, containing 600,000 tonnes of copper) are currently based on a cut-off grade of 0.2% copper which was derived using a copper price of $2.00/lb ($4,400/tonne). In due course, this needs re-optimisation in light of the planned drilling within the open pit;

·; Mineral Resources (Measured plus Indicated - 203 million tonnes at 0.46% copper, containing 933,000 tonnes of copper) which was derived using a copper price of $3.00/lb ($6,600/tonne) for the Cerro Colorado open pit. This needs updating in light of the planned drilling of the open pit and the underground deposits on the property.

Mining activities are the responsibility of the Autonomous Communities of Spain (i.e. individual states, which in the case of the Rio Tinto Copper Project is Andalucía) and the provincial government within those states (for the Rio Tinto Copper Project, this is the province of Huelva). Therefore, for the Rio Tinto Copper Project, the Huelva Territorial division of the Ministry of Economy, Innovation, Science and Employment ("CEICE", as it is now known) of the Junta de Andalucia (the "Andalucian Government") is the substantive regulatory body that has the authority to approve Administrative Standing (administrative approval of the transmission of the mineral rights held by EMED since 2007) and operating licenses for the project. This is the case except for explosive permits which are governed by the Central Government of Spain.

Approvals are also required from:

(i) The Huelva Territorial Division of the now-renamed Ministry of Agriculture, Fishing and Environment ("Environment") which specifically are the:

1. Unified Environmental Authorisation ("AAU") (which includes the Environmental Impact Statement ('EIS') and final restoration plan amongst other environmental permits); and

2. Concession required for public domain water, and

(ii) The Huelva Territorial Delegation of the Ministry of Culture ("Culture") as various project lands are listed as cultural heritage sites.

The steps to restarting production at the Rio Tinto Copper Project are briefly summarised as follows:

·; Receipt of Administrative Standing and operating licences from CEICE. In this regard:

o In August and September 2012 the Company responded to the final Andalucian Government requests for updates to technical and economic information originally submitted in 2010;

o Detailed engineering being completed now that the authorities have informally agreed all permitting conditions.

·; Approvals from Environment and Culture. In this regard:

o The AAU, which has an 8-month approval timeframe, extendable to a maximum of 10 months, was resubmitted in February 2012. As required by administrative procedure, the Company´s AAU was submitted for public review for a 30-day period in June 2012 which concluded on July 24 2012. The Company has completed its responses to the public comments received, none of which were considered material. Once all review processes are finalised, the Company expects to receive it´s AAU authorisation conditional on certain conditions which it believes will have been taken into account in project planning.

o The technical team has expanded the water management and environmental plans to reflect the enlarged land footprint and the Government's new river management policies.

o The relevant water concession application remains in process.

o The Company received conditional approval from Culture in December 2010 which must now be updated to take into account the expanded restoration footprint.

CEICE and Environment have also been informed that in August 2012 the Company purchased all remaining lands required for the operation of the Rio Tinto Copper Project. This was a significant event, eliminating the need for the Company to utilise a compulsory acquisition process that could have extended the time for project start-up.

·; Once Administrative Standing is received, the Company can:

o Commence personnel training programs;

o Commence the drilling programs for extending mine life of the initially planned operation and evaluating the potential to reactivate the other previously worked mines at the Rio Tinto Copper Project;

o Commence site preparation activities so that the full project can proceed;

o Proceed toward formal approval of the final project details to allow project execution and exploitation;

o If not already received, proceed toward formal approval of the final environmental management and restoration plans;

o Obtain final shareholder and financier approvals so the restart project execution programs can proceed;

o Trigger the twelve-month restart project execution programs upon arrangement of unfettered land access;

o Proceed with the appointment and induction of the workforce and contractors;

o Obtain construction permits and operating licences to be issued as project execution proceeds and commissioning is carried out;

o Proceed with the six-month ramp up to start rate of processing 5 million tpa of ore followed by an eighteen-month ramp-up of production to the base case rate of processing 9 million tpa of ore and 37,000 tpa copper-in-concentrate; and

o Concurrently assess project extension or expansion opportunities, based largely on the results of drilling in the vicinity of the existing open pit and underground mines.

The restart is expected to be straightforward from an operational perspective, with an established infrastructure and processing facility that can be readily restarted, albeit with aspects to be updated to incorporate mining industry improvements that have been developed over the past 20 years.

Slovakia - Detva Gold Project

EMED is advancing its 100%-owned Biely Vrch gold deposit, which is a potential greenfields development of an open pit gold mine. Biely Vrch gold deposit contains Indicated Resources of 461,000 ounces (17.7 million tonnes at 0.81g/t gold) and Inferred Resources of 596,000 ounces (24.0 million tonnes at 0.77g/t gold).

A revised Scoping Study completed by AMC Consultants (UK) Ltd in June 2010 confirmed the attractive economics of developing a mine at Biely Vrch based on a gold price of US$1,000/ounce (currently >US$1,600/ounce). The envisaged project has the following parameters:

·; Initial capital cost of ~US$64 million including the acquisition of additional lands;

·; 3 million tonne per annum, heap-leach operation;

·; Open-pit mine with average waste-to-ore strip ratio of 0.84 to 1;

·; Mine plan tonnage of 27.5 million tonnes at 0.86g/t gold, containing 756,000 ounces of gold;

·; Overall gold recoveries averaging 81%; and

·; Annual gold production of 60,000 ounces at an average C1 cash cost of ±US$530/ounce.

The Scoping Study is preliminary in nature and includes Inferred Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorised as ore reserves, and there is no certainty that the preliminary assessment will be realised. The capital cost noted above is a preliminary estimate derived in May 2010. Since that time, a number of changes to costs, commodity prices, and geotechnical data have suggested that updating of the Scoping Study would be beneficial. In fact, the Biely Vrch project is in a transitional phase from Scoping Study to Pre-Feasibility Study, and a series of additional technical works, such as further metallurgical testing, geotechnical and mining engineering are being considered by EMED.

Detva Gold Project Permitting

The Group has been granted Protective Deposit Status over the Biely Vrch gold deposit and an application for a Mining Lease Area has been made. Thirty eight state, regional and local regulatory bodies consented to the Company being granted its Mining Lease Area.

EMED is working towards reaching various agreements with local parties directly impacted by the potential development. However, there has been recent opposition by anti-mining lobby groups and a series of community briefings and consultations are being conducted in the local towns and villages with direct participation by the Group Managing Director and other Directors and staff of the Company's Slovakian subsidiary.

In response to public consultations, the Company voluntarily commissioned and published a Preliminary Social Impact Study and a Preliminary Economic/Technical Study and invited input from local communities and action groups. Community and other stakeholder communications and consultations are the primary focus for 2012 and priorities will be re-assessed as practical possibilities are developed.

On 10 May 2012, EMED reached agreement with Slavia Tools Company, owner of the factory directly adjacent to the Biely Vrch Gold Deposit, whereby the EMED finances Slavia Tools with €340,000 for detailed relocation planning studies and, if within ten years, the development of Biely Vrch is triggered by EMED, the Company will have the right, exercisable at its own discretion, to proceed to fund construction of new premises for Slavia Tools and acquire the old premises for a maximum cost of €11 million. Consultation meetings with the owners of other properties in the vicinity of the contemplated project development continue.

On 12 July 2012, EMED Slovakia has presented its plans on the development of Biely Vrch Gold Project to the Committee for Land Planning and Environmental Protection in Central Slovakia.

KEFI Minerals Plc

KEFI Minerals Plc is a gold and copper exploration company with projects mainly in the Kingdom of Saudi Arabia. It commenced trading on AIM in December 2006. EMED Mining contributed initial assets and currently has a 15.07% shareholding.

In Saudi Arabia, KEFI Minerals Plc has a joint venture with leading Saudi construction and investment group ARTAR. This joint venture has a number of exploration license applications pending in Saudi Arabia.

Selected Financial Data

The table below summarises selected consolidated financial information for the Group's unaudited interim condensed consolidated financial statements for the three and nine months ended 30 September 2012 and 30 September 2011. The audited consolidated financial statements are for the year ended 31 December 2011.

	Three months ended 30 Sept 2012 (€ 000's)	Three months ended 30 Sept 2011 (€ 000's)	Nine months ended 30 Sept 2012 (€ 000's)	Nine months ended 30 Sept 2011 (€ 000's)	Year ended 31 Dec 2011 (€ 000's)

Exploration expenses	(399)	(411)	(900)	(1,105)	(1,427)
Care and maintenance expenses	(2,118)	(1,520)	(4,748)	(3,777)	(4,449)
Administration expenses	(954)	(1,050)	(3,666)	(2,928)	(3,832)
Other income	30	30	95	87	117
Net foreign exchange loss	(144)	(166)	(100)	(179)	(363)
Net finance costs	(122)	(272)	(368)	(873)	(1,180)
Share of results of associates	-	(70)	(136)	(201)	(266)
Tax	551	558	1,578	1,363	1,733
Net loss for the period	(3,156)	(2,901)	(8,245)	(7,613)	(9,667)

Basic and fully diluted loss per share (cents)	(0.32)	(0.41)	(0.86)	(1.08)	(1.40)

Total assets	72,234	54,283	72,234	54,283	51,830
Total liabilities	16,279	26,675	16,279	26,675	15,901

Three months ended 30 September 2012 compared to the three months ended 30 September 2011

EMED Mining recorded a consolidated loss of €3.2 million (or (0.32) cents per share) for the three months ended 30 September 2012, compared with a consolidated loss of €2.9 million (or (0.41) cents per share) for the three months ended 30 September 2011, an increase of €0.3 million. The increase is mainly due to higher care and maintenance expenditure at the Rio Tinto Copper Project.

During the three months ended 30 September 2012, the Group expended €0.4 million on exploration expenditure, unchanged from the three months ended 30 September 2011.

During the three months ended 30 September 2012, the Group expended €2.1 million on care and maintenance at the Rio Tinto Copper Project (30 September 2011: €1.5 million). The increase in expenditure relates to higher activity at the Rio Tinto Copper Project.

Other operating expenditure for the three months ended 30 September 2012 amounted to €1.0 million (30 September 2011: €1.0 million) and includes corporate costs, and costs associated with a listed public company such as shareholder communications, on-going listing costs, legal costs, head office salaries and travel. These costs have decreased in the September quarter this year compared to the same period last year largely due to timing differences.

Net finance costs for the three months ended 30 September 2012 were €0.1 million (30 September 2011: €0.3 million). The decrease in finance costs is largely due to interest paid in 2011 on the Convertible Loan which was converted on 31 December 2011.

The foreign exchange loss of €0.1 million incurred during the reporting period is due to the translation of foreign denominated assets and liabilities into Euros.

During the third quarter of 2012, €0.1 million was charged to the statement of comprehensive income as a result of options vested (30 September 2011: €NIL).

Nine months ended 30 September 2012 compared to the nine months ended 30 September 2011

EMED Mining recorded a consolidated loss of €8.2 million (or (0.87) cents per share) for the nine months ended 30 September 2012, compared with a consolidated loss of €7.6 million (or (1.08) cents per share) for the nine months ended 30 September 2011, an increase of €0.6 million. The increase is primarily due to increased operating expenditure and care and maintenance expenditure at the Rio Tinto Copper Project in Spain and decreased finance costs.

During the nine months ended 30 September 2012, the Group expended €0.9 million on exploration expenditure (30 September 2011: €1.1 million). The reduction in exploration expenditure is due to exploration expenses incurred in Portugal on the Regua tungsten deposit in 2011. In December 2011, the Company allowed the option to acquire the Regua tungsten deposit in Portugal to lapse.

During the nine months ended 30 September 2012, the Group expended €4.7 million on care and maintenance at the Rio Tinto Copper Project (30 September 2011: €3.8 million). The increase in expenditure relates to higher activity in Spain.

Other operating expenditure for the nine months ended 30 September 2012 were €3.7 million (30 September 2011: €2.9 million) and includes corporate costs, costs associated with a listed public company such as shareholder communications, on-going listing costs, legal costs, head office salaries and travel. These costs have increased due to increased legal fees in connection with the various financing activities and the purchase of the lands and management incentive payments.

Net finance costs for the nine months ended 30 September 2012 were €0.4 million (30 September 2011: €0.9 million). The decrease in finance costs is largely due to interest paid in 2011 on the Convertible Loan which was settled on 31 December 2011 by conversion into ordinary shares of the Company.

The foreign exchange loss of €0.1 million incurred during the reporting period is due to the translation of foreign denominated assets and liabilities into Euros.

During the first nine months of 2012, €0.2 million was charged to the statement of comprehensive income as a result of options that vested in the first nine months of 2012 (30 September 2011: €0.2 million). As at 30 September 2012, the Share Option Reserve amounted to €5.5 million (30 September 2011: €5.2 million).

Total assets were €72.2 million as at 30 September 2012 compared to €54.3 million as at 30 September 2011, an increase of €17.9 million. The Group's significant assets are its mineral properties and mining plant, property and equipment at the Rio Tinto Copper Project. The main increase is due to the increase of land and buildings at the mine in Spain resulting from the acquisition of all remaining lands required for the operation of the mine.

Receivables as at 30 September 2012 of €3.8 million are amounts receivable in respect of VAT due from authorities in Cyprus and Spain of €3.3 million and deposits and other prepayments of €0.5 million. As at 30 September 2011, receivables were €1.2 million (VAT: €0.5 million). The increase in the VAT receivable is due to the VAT paid on land acquired in Spain.

Current Liabilities were €7.2 million as at 30 September 2012 compared to €11.8 million as at 30 September 2011, a decrease of €4.6 million. This decrease is mainly due to the conversion of the Convertible Loan on 31 December 2011.

Deferred tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. Currently enacted tax rates are used in the determination of deferred tax. Deferred tax assets relating to the benefit of losses carried forward are only recognised to the extent that it is probable that future taxable profit will be available to apply against these losses. As at 30 September 2012, the Group's deferred tax asset stood at €7.4 million (30 September 2011: €5.4 million).

Nine months ended 30 September 2012 compared to year ended 31 December 2011

Total assets were €72.2 million as at 30 September 2012 compared to €51.8 million as at 31 December 2011, an increase of €20.4 million. The Group's significant assets are land and buildings, mining plant and machinery and mineral properties at the Rio Tinto Copper Project. The increase in assets is mainly due to the increase in land and intangible assets, with a decrease in cash reserves. Cash as at 30 September 2012 was €3.8 million, compared to €7.8 million as at 31 December 2011 (refer to Financing Activities section for more details).

Summary of Quarterly Results

	As at and for the 3 months ended 31 Dec 2010 (€ 000's)	As at and for the 3 months ended 31 Mar 2011 (€ 000's)	As at and for the 3 months ended 30 Jun 2011 (€ 000's)	As at and for the 3 months ended 30 Sep 2011 (€ 000's)	As at and for the 3 months ended 31 Dec 2011 (€ 000's)	As at and for the 3 months ended 31 Mar 2012 (€ 000's)	As at and for the 3 months ended 30 June 2012 (€ 000's)	As at and for the 3 months ended 30 Sept 2012 (€ 000's)

Exploration expenses	(380)	(326)	(368)	(411)	(322)	(246)	(255)	(399)
Care and maintenance expenses	(714)	(1,113)	(1,144)	(1,520)	(672)	(1,308)	(1,322)	(2,118)
Share-based benefits	(137)	(206)	-	-	(48)	(68)	(34)	(49)
Other operating expenses	(1,873)	(730)	(942)	(1,020)	(887)	(1,488)	(1,122)	(905)
Other income	58	-	57	-	60	-	65	30
Net foreign exchange (loss)/gain	(169)	(107)	94	(166)	(184)	(99)	143	(144)
Net finance costs	(339)	(340)	(261)	(272)	(307)	(122)	(124)	(122)
Impairment of intangible assets	(310)	-	-	-	-	-	-	-
Share of results of associates	(59)	(56)	(75)	(70)	(64)	(66)	(70)	-
Tax	507	400	405	558	370	443	584	551
Loss for the period	(3,416)	(2,478)	(2,234)	(2,901)	(2,054)	(2,954)	(2,135)	(3,156)
Loss per share (cents)	(0.74)	(0.36)	(0.32)	(0.41)	(0.28)	(0.34)	(0.21)	(0.32)

The Group recorded a consolidated loss of €3.2 million for the three months ended 30 September 2012, compared with a consolidated loss of €2.1 million for the three months ended 30 June 2012 and compared with a consolidated loss of €3.0 million for the three months ended 31 March 2012. The increase in the loss in the three months ended 30 September 2012 is mainly due to increased care and maintenance expenditure as a result of higher activity at the Rio Tinto Project in Spain.

During the three months ended 30 September 2012, the Group expended €0.4 million on exploration expenditure (30 June 2012: €0.3 million; 31 March 2012: €0.2 million). The increase in exploration expenditure during the quarter ended 30 September 2012 was due to increased exploration expenditure in Slovakia. The increase in exploration expenditure during the quarter ended 30 September 2011 was due to exploration expenses incurred in Portugal on the Regua tungsten deposit. In December 2011, the Company allowed the option to acquire the Regua tungsten deposit in Portugal to lapse.

During the quarter ended 30 September 2012, the Group expensed €2.1m on care and maintenance at the Rio Tinto Copper Project (30 June 2012: €1.3 million; 31 March 2012: €1.3 million). The increase is due to higher activity at the Rio Tinto Copper Project.

Other operating expenditure for the three months ended 30 September 2012 amounted to €0.9 million (30 June 2012: €1.1 million; 31 March 2012: €1.5 million). These costs represent corporate costs including all costs associated with a listed public company such as shareholder communications, on-going listing costs, legal costs, head office salaries and travel. The reduction in the three months ended 30 September 2012 is a timing issue as these costs have increased for the nine months due to increased legal fees in connection with the various financing activities and the purchase of the lands and management incentive payments.

Net finance costs for the three months ended 30 September 2012 were €0.1 million (30 June 2012: €0.1 million; 31 March 2012: €0.1 million).

Financing Activities

Statement of Cash Flows Summary	As at and for the 9 months ended 30 Sept 2012 (€ 000's)	As at and for the 9 months ended 30 Sept 2011 (€ 000's)	As at and for the 12 months ended 31 Dec 2011 (€ 000's)
Cash flows used in operating activities	(11,437)	(9,140)	(12,061)
Cash flows used in investing activities	(20,597)	(2,483)	(4,875)
Cash flows from financing activities	28,017	3,222	3,222
Net decrease in cash and cash equivalent	(4,017)	(8,401)	(13,714)

In 2012, cash flows used in operating activities increased mainly due to an increase in trade and other receivables due to the increased VAT receivable resulting from the VAT paid on the purchase of land in Spain for the operation of the Rio Tinto Copper Project.

In 2012 and 2011, cash flows used in investing activities were mainly due to additions in intangibles and in property plant and equipment.

In 2012, the Group obtained €28.0 million from share issues (2011: €3.2 million).

On 3 May 2010, the Company completed a private placement of 83,571,429 Ordinary Shares at a price of GBP0.105 per Ordinary Share. The total proceeds received from the private placement were approximately €10.1 million.

On 20 December 2010 in conjunction with the TSX listing, EMED Mining raised a total of C$32.7 million (GBP20.5 million) via an Initial Public Offering in Canada and a concurrent Private Placement in the UK.

In January 2011, and as a result of a subsequent exercise of the over-allotment option granted to the Company's Canadian Agents, on its Canadian Initial Public Offering, C$2.4 million (GBP1.5 million) was raised.

On 28 December 2011, under the secured convertible loan agreement, both RCF and RMB exercised their right to convert the outstanding principal amount of the Convertible Loan Facility (see below) amounting to US$8.5 million into new ordinary shares at the conversion price of 4.13 pence per ordinary share. A total of 145,504,558 new ordinary shares were issued to RCF and to RMB. Accordingly, the outstanding principal amount owing under the Loan Agreement of US$8.5 million was satisfied in full by the issue of these shares.

In March 2012 the Company completed a private placement with Yanggu Xiangguang Copper Co. Ltd ("XGC"), a cornerstone copper offtake customer, for an aggregate funding package of US$30 million (intended as to half in the form of share capital and half in the form of a conditional future standby debt facility) in exchange for a 10% ordinary equity position in EMED Mining (on a fully-diluted basis) and the grant of limited off-take rights over the Rio Tinto Copper Project's copper production. XGC provided US$15 million equity by way of a subscription for 105,378,159 new ordinary shares in the Company at a price of 9 pence per share. XGC has also agreed to provide or arrange a US$15 million subordinated debt facility as required by the providers of senior debt finance (who will be providing the senior debt for the purposes of the restart of operations of the Rio Tinto Copper Project). The Company's subsidiary, EMED Marketing Limited ("EMED Marketing") has granted XGC off-take rights over 30% of current reported copper reserves, at market prices.

In August 2012, the Company announced that it completed the purchase of certain land plots, covering part of the tailings dams, (the "Land"), adjoining the Rio Tinto Copper Project, owned by Rumbo, for €10 million. The acquisition of the Land was required in order to restart production. The consideration of €10 million (plus applicable taxes), was satisfied as follows:

·; €4.5 million which was paid in cash; and

·; €5.5 million was satisfied by the allotment of 48,549,234 new ordinary shares of 0.25p each in EMED Mining at 8.98 pence per share.

The Company also completed another private placement with XGC for 32,247,662 new ordinary shares of 0.25 pence each of the Company at a price of 10 pence per share for aggregate proceeds of US$5 million. These funds were partly applied in funding the cash consideration for the acquisition of the Land.

Finally in August 2012, the Company announced that it completed the purchase of the last land plot (the "Land Plot") required for planned operation of the Rio Tinto Copper Project from Inland Trading 2006, S.L. ("Inland"), for €5 million. This Land Plot covers part of the main tailings dam wall and satisfies all of the project's needs for tailings deposition from proposed operations along with the potential expansion thereof in the shorter term. The consideration was satisfied as follows:

·; €1 million which was paid in cash on execution of the sale and purchase agreement;

·; €1.5 million payable in cash in eight equal instalments over a period of 24 months; and

·; €2.5 million by the allotment of 18,511,675 new ordinary shares of 0.25p each in at 10.7 pence per share.

The equity raisings are summarised in the table below:

	Number of Ordinary Shares Issued	Issue Price	Gross Proceeds (C$ million)	Gross Proceeds(GBP million)	Gross Proceeds(€ million)

UK Placement - May 2010	83,571,429	GBP 0.105	14.0	8.8	10.1
Canadian IPO - December 2010	180,970,000	C$ 0.135	24.6	15.4	18.3
UK Placement - December 2010	60,126,386	GBP 0.085	8.1	5.1	6.0
Canadian Option - January 2011	18,145,500	C$ 0.135	2.4	1.5	1.8
XGC Placement - March 2012	105,378,159	GBP 0.090	15.2	9.5	11.4
XGC Placement - August 2012	32,247,662	GBP 0.100	5.1	3.2	4.1
Canadian and UK Placement - August 2012	41,672,243	GBP 0.085	5.7	3.6	4.5
Rumbo Placement - August 2012	48,549,234	GBP 0.089	6.9	4.3	5.5
Inland Placement - August 2012	18,511,675	GBP 0.107	3.2	2.0	2.5

Total			85.2	53.4	64.2

Note: Currency conversion based on an exchange rate of C$1.00 = GBP0.6268.

The proceeds from the above financings, and in the case of the proceeds from the TSX initial public offering, were and will continue to be applied as previously disclosed by the Company without material variation.

Since the end of the quarter under review, the Company announced on 14 November that the Company and one of its subsidiaries have entered into conditional agreements with another cornerstone customer, Red Kite, for an aggregate funding package of US$50 million, comprising:

Liquidity

The Group is currently in the exploration and development stage and as such does not generate revenue from operations. It is the Group's goal to reach producer status and generate revenues that will significantly enhance the value of the Group and reduce the need for equity type funding to maintain its liquidity.

In liquidity terms, the financing needed to achieve such objectives is typically accessed in two steps. Step one is accessing equity based finance and step two is arranging finance from non-equity based external sources such as traditional project finance and off-take facilities.

Financial and commodity markets have shown volatility in recent times due to uncertainty. Nonetheless, the outlook for both copper and gold has remained positive. It is important to recognise that, while the Group is still reliant on equity funding, the commissioning of one of the Group's projects, and in particular the Rio Tinto Copper Project would move EMED into the producer category quite quickly, given the anticipated short start-up time once governmental approvals have been obtained.

Upon the grant of the relevant government approvals, the Group will commence the restart at the Rio Tinto Copper Project and will need to secure additional project financing (see Mineral, Exploration and Development Property Interests - Funding).

Contractual Obligations

The following table lists as of 30 September 2012 information with respect to the Group's known contractual obligations:

Contractual obligations	Total (€ 000's)	Less than 1 year (€ 000's)	1 - 3 years (€ 000's)	4 - 5 years (€ 000's)	After 5 years (€ 000's)

Debt with department of social security (Spain)	11,838	3,400	8,438	-	-
Suppliers property, plant and equipment	2,525	1,911	614	-	-
Total contractual obligations	14,363	5,311	9,052	-	-
Contingent Contractual Obligations
Acquisition of the remaining 49% of the Rio Tinto Copper Project	53,000	8,833	17,666	26,501	-

The following table lists as of 31 December 2011 information with respect to the Group's known contractual obligations:

Contractual obligations	Total (€ 000's)	Less than 1 year (€ 000's)	1 - 3 years (€ 000's)	4 - 5 years (€ 000's)	After 5 years (€ 000's)

Debt with department of social security (Spain)	13,864	2,813	8,635	2,416	-
Total contractual obligations	13,864	2,813	8,635	2,416	-
Contingent Contractual Obligations
Acquisition of the remaining 49% of the Rio Tinto Copper Project	53,000	8,833	17,666	26,501	-

Astor Management AG ("Astor") (formerly MRI) Acquisition Agreement

In September 2008, the Group moved to 100% ownership of EMED Tartessus (and thus full ownership of the Rio Tinto Copper Project) by acquiring the remaining 49% of the issued capital of EMED Tartessus. The cost of the acquisition was the issuance of 39,140,000 Ordinary Shares to Astor at a deemed issue price of 21p per Ordinary Share and a deferred cash settlement of €52,999,999 (including certain loans owed to members of the Astor Group which were incurred in relation to the operation of the Rio Tinto Copper Project amounting to €9,116,617) to be paid by the Group over nine or seven years. This consideration is payable once the authorisation from the Junta de Andalucía to restart mining activities in the Rio Tinto Copper Project has been granted and project finance and shareholder approval has been obtained.

In consideration for agreeing to pay the deferred cash settlement over 6 years and for Astors's consent to the arrangements that were entered into in connection with the Convertible Loan Facility (now repaid), the Company agreed to potentially pay further deferred consideration of up to €15,900,000 in regular instalments over the deferred consideration payment period depending upon the price of copper. Any such additional payment will only be made if, during the relevant period, the average price of copper per tonne is $6,613.86 or more ($3.00/lb).

The funds required to make these payments, should EMED proceed with the restart of the Rio Tinto Project, would be sourced from senior project debt and from project cash flow.

Convertible Loan Facility

On 4 March 2009, the Company entered into a Convertible Loan Facility of US$8.5 million with RCF and RMB to provide funds for the Rio Tinto Copper Project in Spain, the gold project in Slovakia and for general working capital purposes.

On 28 December 2011, RCF and RMB exercised their right to convert the amounts owed to them under the secured convertible loan agreement dated 4 March 2009 into new ordinary shares at a price of 4.13 pence per share. Accordingly, the outstanding principal amount owing under the loan agreement of US$8.5 million was satisfied in full by the issue of shares.

Settlement Agreement with the Department of Social Security

In 2010, EMED Tartessus entered into a Settlement Agreement with the Department of Social Security for extinguishing the liens against its principal landholdings of the Rio Tinto Copper Project upon repayment of the outstanding debt in the amount of €16.9 million. EMED Tartessus has paid €5.1 million to 30 September 2012, in accordance with the agreed repayment schedule.

Contingent liabilities

The file has now been re-opened to deal with the purported environmental damages from the winter months of 2011. The original sanction proposed was potentially a fine of €450,000 and damages in the amount of €1.2 million, which has now been increased to €1.4 million due to accumulating allegations of discharges during 2011. The Company is taking all necessary steps to defend this proposed action.

It is improbable that any fine or sanction will be imposed once the file, reaches its conclusion in approximately 3-5 years, and in any event the Company would only be responsible for payment of that amount proportional to its ownership of the TMF, this being 33% at the time of the alleged events. Nonetheless, the Company believes that all charges will be dismissed in due course given the force majeure circumstances of the alleged discharges and the clear recognition of those circumstances in the complete dismissal of all judicial charges.

Commitments

There are minimum exploration expenditure requirements for the Slovakia tenements. Tenements are granted for 4 years and over this period a minimum of 70% of the budget proposed by the Group must be spent in order to extend the tenement life for another 2 periods (4 and 2 years, respectively). The first year minimum spend is 10% of the individual tenement budget. Currently the official exploration budget across the Slovakian tenements, according to the exploration programs submitted to the competent Ministry of Environment, is approx. €3.9 million in total (the total proposed expenditure for the period 2009 to 2015 for all 6 tenements). 70% of the proposed budget is €2.7 million, which represents the minimum financial obligation for potential extensions of current lease holdings.

For 2012, only two tenements will complete the first year of the initial 4 year exploration period and thus the minimum 10% required expenditure is approx. €47,000. Moreover there are annual tenement rental fees in the order of €90,000 per year.

EMED has met its obligations to date and the exploration program for Slovakia will more than fulfil these commitments. All annual technical and financial reports have been submitted in time and approved straightforwardly.

In Cyprus, there are no exploration commitments required and tenement rentals are approximately €36,000 per annum.

Off-Balance Sheet Arrangements

The Group has no off-balance sheet arrangements.

Transactions with Related Parties

The following transactions are carried out with related parties:

1. Compensation of key management personnel, which includes directors and certain senior managers.

2. Transaction with KEFI Minerals Plc ("KEFI"). EMED Mining has a 15.1% (as at 30 September 2012) interest in KEFI and an ongoing service agreement to provide management and other professional services. The cost of providing this service to KEFI has been GBP 0.1 million per annum, which has been recharged to KEFI.

Both transactions are measured at cost and both have ongoing contractual relationships.

	As at and for the 3 months ended 31 Mar 2011 (€ 000’s)	As at and for the 3 months ended 30 Jun 2011 (€ 000’s)	As at and for the 3 months ended 30 Sep 2011 (€ 000’s)	As at and for the 3 months ended 31 Dec 2011 (€ 000’s)	As at and for the 3 months ended 31 Mar 2012 (€ 000’s)	As at and for the 3 months ended 31 Jun 2012 (€ 000’s)	As at and for the 3 months ended 30 Sep 2012 (€ 000’s)

Compensation – Directors and Key Management Personnel	420	321	393	342	821	369	420
Service charges to KEFI	28	29	30	29	-	65	30

Financial Risk Management Policies

The Group's financial instruments consist mainly of deposits with banks, short-term investments, accounts receivable and payable, and leases. The Group is exposed to interest rate risk, commodity price risk, liquidity risk and currency risk arising from the financial instruments that it may hold. The risk management policies employed by the Group are discussed below.

Treasury risk management

The Board reviews credit risk policies and future cash flow requirements as required. The Board's overall risk management strategy seeks to assist the consolidated group in meeting its financial targets, whilst minimising potential adverse effects on financial performance. The main risks the Group is exposed to through its financial instruments are interest rate risk, foreign currency risk, liquidity risk and credit risk.

Interest rate risk

The Group's exposure to the risks of changes in market interest rates relates primarily to the Group's short-term deposits with a floating interest rate. These financial assets with variable rates expose the Group to cash flow interest rate risk. All other financial assets and liabilities in the form of receivables and payables are non-interest bearing.

Commodity price risk

The Group does not currently derive revenue from sale of products; therefore the effect on profit and equity as a result of changes in the price risk is not considered material. However the fair value of the mineral projects and the ability of EMED to develop the Rio Tinto Copper Project will be impacted by commodity price changes (predominantly copper and gold) and could impact future revenues once operational. Management monitors current and projected commodity prices.

Liquidity risk

The Group manages liquidity risk by monitoring forecast cash requirements. The Group's operations require it to raise capital on an on-going basis to fund its planned exploration program and to commercialise its tenement assets. If the Group does not raise capital in the short term, it can continue as a going concern by reducing planned but not committed exploration expenditure until funding is available and/or entering into joint venture arrangements where exploration is funded by the joint venture partner.

Credit risk

Credit risk is managed on a Group basis and refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group as well as through deposits with financial institutions. The Group has adopted a policy of only dealing with credit worthy counterparties obtaining sufficient collateral or other security where appropriate as a means of mitigating the risk of financial loss from defaults and only banks and financial institutions with an investment grade credit rating are utilised. The maximum exposure to credit risk, excluding the value of any collateral or other security, at the reporting date to recognised financial assets, is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to the consolidated financial statements. The credit risk on liquid funds and financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.

Foreign currency risk

The Group has exploration activities in Spain, Slovakia and Cyprus. During the nine month period to 30 September 2012 most funds are held in Euro, some deposits are held in Canadian Dollars, US Dollars and GBP for working capital purposes. The Group is exposed to fluctuations in foreign currencies arising from the purchase of goods and services in currencies other than the group's measurement currency. The Group is mainly exposed to Euros and the Group's management monitors the exchange rate fluctuations on a continuous basis and acts accordingly. The Group's current policy is not to enter into any currency hedging transactions.

Fair value estimation

The Directors and management consider that the carrying amount of financial assets and financial liabilities recorded in the consolidated financial statements approximates their fair values.

Critical Accounting Estimates

The preparation of the financial report requires the making of estimations and assumptions that affect the recognized amounts of assets, liabilities, revenues and expenses and the disclosure of contingent liabilities. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods, if the revision affects both current and future periods.

EMED takes a conservative approach in its accounting policy towards exploration expenditure and to goodwill on acquisition. All such expenditures are written off on acquisition or when incurred pending the Board's decision to commence project development.

The Group has three major accounting estimates:

(1) Deferred Tax relating to the Rio Tinto Copper Project in Spain. The carry forward tax losses for the Group as at 30 September 2012 were €69.7 million of which €29.6 million (deferred tax value of €7.4 million) was attributable to EMED Tartessus and the Rio Tinto Copper Project. It is only these tax losses that have been recognized by the group as this is the only project where the Group has a reasonable expectation of utilizing such losses.

(2) Capitalisation of expenses at the Rio Tinto Copper Project in Spain. The value of the assets located in Spain relate directly to the ability of the Group to obtain a mining license and restart mining operations. Should the Group not be able to do either, adjustments to the carrying value of assets (tangible and intangible) will have to be made. The value of the adjustments cannot be estimated at present; and

(3) IFRS 2 "Share Based Payments" requires the recognition of equity-settled share-based payments at fair value at the date of grant and the recognition of liabilities for cash settled share based payments at the current fair value at each balance sheet date. The fair value is measured using the Black Scholes pricing model. The inputs used in the model are based on management's best estimates, for the effects of non-transferability, exercise restrictions and behavioural considerations.

	30 Sept 2012 (€ 000's)	30 Sept 2011 (€ 000's)	31 Dec 2011 (€ 000's)
Property, plant and equipment	45,642	27,450	28,363
Intangible assets	11,552	6,919	8,424
Deferred tax	7,399	5,401	5,812
Share options reserve	5,533	5,221	5,269

Changes in Accounting Policies

The Group has not changed any accounting policy since the year ended 31 December 2011.

Financial Instruments and Other Instruments

The Group's financial assets and liabilities consist of cash and cash equivalents, investments, receivables, accounts payable and accrued liabilities, some of which are denominated in British pounds, Canadian dollars, Euros and U.S. dollars.

The Group is at risk of financial gain or loss as a result of foreign exchange movements against the Euro. The Group minimises its foreign exchange risk by maintaining low account balances in currencies other than the Euro. The Group does not currently have major commitments to acquire assets in foreign currencies and historically has incurred the majority of its exploration costs in Euro.

Events after the reporting period

On 14 November 2012 the Company announced that it has entered into conditional agreements with another cornerstone customer, Red Kite, for an aggregate funding package of US$50 million, comprising:

Highlights of the transactions with Red Kite

(i) definitive documentation in respect of the Standby Loan Facility is not entered into by 31 December 2013;

(ii) the Company notifies Red Kite that it no longer requires the Standby Loan Facility; or

(iii) following execution of definitive documentation for the Standby loan facility, Red Kite fails to make an advance in accordance with the terms of such documentation

Red Kite's entitlement automatically reduces from 27% to 13.5% of annual copper production.

There were no other material events after the reporting period, which have a bearing on the understanding of the condensed interim consolidated financial statements.

Outstanding Share Data

The Company's authorised share capital consists of 1,400,000,000 Ordinary Shares of 0.25p each. As at 30 September 2012, the Company had the following shares outstanding and commitments to issue shares:

	Number of shares
Ordinary Shares	1,113,336,161
Warrants	4,321,226
Options	70,760,544
Fully diluted	1,188,417,931

Internal Controls Risks

Management has established systems of Internal Control over the Financial Reporting ("ICFR"), process, which are designed to provide reasonable assurance that relevant and reliable financial information is produced. There was no change in the Group's ICFR that occurred during the period beginning on 1 January 2012 and ended on 30 September 2012 that has materially affected, or is reasonably likely to materially affect, the Group's ICFR.

Additional Information

Additional information relating to the Company, including the Company's AIF is available under the Company's profile on SEDAR at www.sedar.com.

CORPORATE INFORMATION

Directors

Ronald Beevor Chairman

Aristidis (Harry)

Anagnostaras-Adams Managing Director/ CEO

John Leach Finance Director/CFO

Roger Davey Director

Ashwath Mehra Director

José Sierra López Director

Robert Francis Director

Jasper Bertisen Director

Harry Liu Director

Senior Management

William Enrico

Chief Operating Officer, Spain

Demetrios Constantinides

Deputy Chairman, Slovakia

Rob Williams

Group Development Manager

Ron Cunneen

Group Chief Geologist

Registered Office

1 Lampousas Street,

Nicosia, Cyprus

Stock Exchange Listings

Toronto Stock Exchange

TSX Code: EMD

London Stock Exchange

AIM: EMED

Further Information on EMED Mining

Visit: www.emed-mining.com

Mail: 3 Ag. Demetriou

2012 Nicosia, Cyprus

T: +357 22442705

F: +357 22421956

To be notified by email of future announcements, visit the website www.emed-mining.com and subscribe to EMED Mining email list.

Shareholder Enquiries

The main registrar for the Ordinary Shares is Cymain Registrars Ltd., 26 Vyronos Avenue, 1096 Nicosia, Cyprus.

The custodian of the depositary interest facility is Computershare Investor Services PLC (UK), The Pavilions, Bridgwater Road, Bristol BS13 8AE, United Kingdom.

The Canadian sub-registrar and transfer agent for the Ordinary Shares is Computershare Investor Services Inc., 100 University Avenue, 9th Floor, Toronto, Ontario, M5J 2Y1.

This information is provided by RNS

The company news service from the London Stock Exchange

END

QRTLZLFFLFFBFBB

Date		Source	Headline
29th Apr 2024	4:32 pm	RNS	Holding(s) in Company
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