Anglesey Mining Regulatory News (AYM)

ANGLESEY MINING PLC - LIM announces equity financing

PR Newswire

London, January 17

Anglesey Mining plc LSE:AYM

17 January 2013

LIM Announces Equity Financing

Anglesey Mining's 19.7% owned associate Labrador Iron Mines Holdings Limited(TSX:LIM) announces that it has filed a preliminary short form prospectus inconnection with an overnight marketed public offering (the "Offering") ofcommon shares in LIM ( "Common Shares"). The Offering will be conducted througha syndicate of underwriters led by Canaccord Genuity Corp. (the"Underwriters"). LIM will also grant the Underwriters an over-allotment optionto purchase up to that number of additional common shares (the "Over-AllotmentCommon Shares") equal to 15% of the Common Shares sold pursuant to theOffering, exercisable at any time up to 30 days after and including the closingof the Offering at a price equal to the offering price of the Common Shares.

The Offering will be priced in the context of the market with final terms ofthe Offering to be determined at the time of pricing.

LIM intends to use the net proceeds from the Offering to fund mining,processing and inventory costs, including payments to the LIM's miningcontractors, and transportation costs in connection with the resumption ofproduction operations and to supplement working capital and general andadministrative costs for the remaining winter season.

For the 2012 operating season LIM met its reduced 2012 production target of 1.7million wet tonnes of iron ore production and sold a total of 1.56 million drytonnes of iron ore products. LIM sold two cape-size shipments in October forapproximately 322,000 dry tonnes, the sales proceeds of one of which werereceived in October and one final shipment of lump ore of approximately 103,000tonnes, the sales proceeds of which remained receivable as at December 31, 2012and were received in January 2013.

LIM expects to report revenue from iron ore sales of approximately $23 millionfor the quarter ended December 31, 2012, and approximately $94 million for thenine month period ended December 31, 2012. As at December 31, 2012, LIM hadcash of approximately $10 million and expects to be in a positive workingcapital position as at that date.

For 2013 and following years, operations will be focused on LIM's Stage 1deposits including the James Mine (currently operating) and six smallersatellite deposits and some historical stockpiles located within a 15 km radiusof the James Mine and the Silver Yards processing plants. LIM is currentlytargeting production for the 2013 season at a similar level as in 2012 ofbetween 1.7 million and 2 million wet tonnes of iron ore produced.

In resuming its planned seasonal mining operations in the spring of 2013, forits 2014 fiscal year, LIM will incur regular operating, mining andtransportation expenses for the months of April and May, 2013 before receipt ofpayment for its first sales of iron ore anticipated in June 2013 and willrequire working capital of approximately $40 million to fund these operatingand re-start expenses.

LIM has been actively pursuing working capital financing arrangements for theseasonal start-up of operations in the first quarter of its 2014 fiscal year(April to June 2013). Such financings may include an operating line of creditor product off-take arrangements or a combination of these alternatives.However, while a number of institutions have provided term sheets forfinancings in the range of $20 to $40 million, subject to various conditions,and undertaken due diligence, at the present time there can be no assurancethat such financing can be fully completed by the beginning of the 2013operating season. Accordingly, LIM is pursuing the Offering to ensure no delayin the orderly seasonal resumption of operations in April 2013.

LIM's preliminary operating results for the quarter ended December 31, 2012 andfor the nine months ended December 31, 2012 are outlined in the table below.

The Offering is being made pursuant to a short form prospectus to be filed ineach of the provinces of Canada other than Quebec. The Offered Securities willnot be registered under the U.S. Securities Act of 1933, as amended, and maynot be offered or sold in the United States absent registration or anapplicable exemption from the registration requirements.

This press release does not constitute an offer of securities for sale in theUnited States. The securities being offered have not been, nor will be,registered under the United States Securities Act of 1933, as amended, and maynot be offered or sold within the United States absent U.S. registration or anapplicable exemption from U.S. registration requirements.

For further information, please visit LIM's website at www.labradorironmines.ca

Anglesey holds 19.7% of Toronto-listed Labrador Iron Mines Holdings Limited(TSX:LIM) which is producing high grade hematite from its James pit, one ofLIM's twenty direct shipping iron ore deposits in western Labrador andnorth-eastern Quebec.

Anglesey is also carrying out exploration and development work at its 100%owned Parys Mountain zinc-copper-lead deposit in North Wales, UK where a JORCCode-compliant resource of 2.1mt at 6.9% combined base metals in the indicatedcategory and 4.1mt at 5.0% combined in the inferred category was published inNovember 2012.

For further information, please contact:

Bill Hooley, Chief Executive +44 (0)1492 541981;Ian Cuthbertson, Finance Director +44 (0)1248 361333;Samantha Harrison / Klara Kaczmarek: RFC Ambrian +44 (0)20 3440 6800;Emily Fenton / Jos Simson: Tavistock Communications +44 (0)20 7920 3155