eEnergy Group Regulatory News (EAAS)

28th November 2012

Alexander Mining plc

(The 'Company' or 'Alexander')

Excellent progress with Metalvalue Limited

The Company is pleased to announce that further to the signing (17 May 2012) of the Leaching Technology Licence Agreement (the 'Agreement') with Metalvalue Limited ('Metalvalue') excellent progress has been achieved. Metalvalue's management including Alain Honnart (Ex Industrial Director of Vallourec Group), has been instrumental in bringing significant and exciting new opportunities to the Company. Those opportunities will be financed with the help of Metalvalue Capital Holding (Metalvalue group private equity vehicle).

The key highlights, which are discussed in detail below, are as follows:

·; New project company promoted by Metalvalue to build a commercial AmmLeach® copper/cobalt processing plant in the Democratic Republic of the Congo ('DRC'), which has attracted major support from a leading commodity trading company.

·; The development of a batch testing pilot plant to be financed by Metalvalue to demonstrate AmmLeach® in Kalgoorlie, Australia at the Western Australian School of Mines ('WASM').

·; Several projects structured by Metalvalue with partners in Turkey and Western Europe to investigate developing a plant for the recovery of zinc from electric arc furnace dust ('EAFD').

·; Several Metalvalue projects potentially amenable to AmmLeach® investigated for major copper consumers in south-east Asia for developing copper deposits and securing the off-take of copper cathodes.

·; The creation of Metalvalue Capital Holdings (MCH - Luxemburg based Soparfi) - a new private equity vehicle dedicated to the structuring and financing of mining projects involving breakthrough technologies including Alexander's.

·; An agreement with Metalvalue for it to subscribe for up to £1m in Alexander Mining plc shares at 3p.

·; Agreement for Metalvalue to pay Alexander as a consultant and process engineer for all projects' capital expenditure associated with AmmLeach® treatment plants.

·; Numerous other business opportunities are being discussed.

DRC copper/cobalt plant

Metalvalue has created a new special purpose project vehicle to establish an AmmLeach® toll treatment plant to produce copper and cobalt in the DRC. Metalvalue has secured an option on a suitable second-hand plant identified in the DRC. The plant, for which a detailed study on needed engineering is underway, is planned to produce cobalt and copper cathode metal with a capacity of 1,500 tonnes per annum ('tpa') cobalt and 5,000tpa copper. Metalvalue is in negotiations to secure a major supply of ore feed to the plant. Expected total capital expenditure is US$12 million, with a construction time of one year. The project work will entail considerable consulting work for Alexander, including testwork and site visits.

A major commodity trading company has agreed an US$80m off-take agreement with Metalvalue. The plant will be jointly financed by MCH and other investors.

Establishment of AmmLeach® pilot plant at Western Australian School of Mines

Metalvalue has agreed to provide the majority of the finance needed by the Company for the establishment of a batch testing pilot plant to demonstrate AmmLeach® in Kalgoorlie, Western Australia at WASM. Alexander has had a successful research testwork services agreement in place with WASM since March 2012.

The pilot plant will have a nominal throughput of 1tpd of ore (e.g. copper and copper/cobalt) and with the capability to produce up to ~10kg/day of cathode metal. The Company expects that the order for the plant should be placed before the end of 2012. On that basis, the anticipated commissioning of the plant would be mid-2013.

This plant will complete the previous successful AmmLeach® pilot plant work the Company has carried out for copper at Leon in Argentina and, more recently, for copper and cobalt in South Africa. The WASM pilot plant will be suitable for testing large samples from around the world as part of the Company's AmmLeach® commercialisation activities.

Development of solutions for electric arc furnace dust treatment

Metalvalue has been working on technologies other than AmmLeach® and, in particular, it has a project to install an iron production plant in Turkey, for which a memorandum of understanding has been signed with local partners.

Due to this close cooperation with the steel industry, Metalvalue's customers (in Turkey and Western Europe) have requested it to provide them with efficient and environmentally friendly solutions for treating zinc containing EAFD. This hazardous waste has high disposal costs and the current technologies do not offer satisfactory solutions. Metalvalue has been working with Alexander and other technology providers efficiently to solve this problem. The worldwide size of the EAFD market is estimated to exceed US$1bn per year

Preliminary testwork by Alexander's wholly owned MetaLeach Limited subsidiary on recycling EAFD to produce a zinc product has shown highly encouraging results, and the next steps on developing a plant are being discussed with Metalvalue. In addition, Alexander is in the process of applying for any patent(s) and trade mark(s) pertaining to its new intellectual property created by work done to date.

Projects in south-east Asia

Metalvalue's introductions to mine owners and copper processors in south-east Asia have allowed Alexander to present its solutions using AmmLeach® to enable securing direct copper cathode take-off. Metalvalue expects to progress these projects in 2013.

Consultancy fee revenue from Metalvalue

The Company has agreed with Metalvalue that, in addition to any royalties due, it will receive a consultancy fee for work on all projects which Metalvalue instigates using AmmLeach® technology, associated with the investigation, testwork, feasibility, engineering design and commissioning of an AmmLeach® treatment plant.

Financing agreement with Metalvalue Limited

The Company has reached an agreement with Metalvalue Limited for it to subscribe, in two tranches, a total of up to £1,000,000 for 33,333,334 new Alexander Mining plc ordinary shares at 3p per share. The subscription forms part of a revised Leaching Technology Licence Agreement to replace the Agreement signed on 16th May 2012. All of the previously announced technology licensing terms remain unchanged.

The new agreement becomes effective upon the receipt from Metalvalue of a first cash tranche of £200,000 by way of a subscription to 6,666,667 new AXM shares at 3p per share by or on the 14th December 2012. A second cash tranche of £800,000 by way of a subscription for 26,666,667 new Alexander shares at 3p per share is to be made by or on the 5th April 2013; however this obligation to subscribe to the second tranche may be reduced on a pro rata basis by the Company's billing of cash consultancy fee revenue from third parties between the 14th December 2012 and the 5th April 2013 through introductions made by Metalvalue. Nevertheless, Metalvalue retains the right to subscribe for all, or a portion, of the second tranche shares in addition to any consultancy revenue introduced.

Martin Rosser, Chief Executive Officer, said: "The relationship with Metalvalue has been highly productive to date. As well as the significant advancement towards the commercial adoption of our breakthrough leaching technology for several substantial opportunities, we also welcome Metalvalue as an important and strategic investor in Alexander."

Background

Metalvalue Capital Holding

MCH is a Luxembourg based private equity vehicle, managed by Metalvalue Advisors SA, located in Geneva and created in 2012 to seed and promote projects aimed at using new metal processing technologies to improve economic parameters of so far unattractive deposits. The CEO of Metalvalue Advisors is Stephane Lamoine, a respected asset manager active in mining and global equity trading since 1987; namely with LCF Rothschild, Societe Generale and Iskandia. The Chief Investment Officer is Jean Bernard Guyon, recipient of numerous European awards for his excellent performance when managing mining and metals mutual funds since 1980, namely with Credit Lyonnais, BBL and Global Gestion. MCH expects to close its first €50m tranche of fund raising in January 2013.

Metalvalue Limited

Metalvalue was formed in 2006 by its Managing Director Alain Honnart. Its focus is on commercialising new technology in the natural resources sector by securing rights to utilise those technologies and the use thereof on undervalued mineral deposits.

Alain Honnart is a graduate materials engineer from the Ecole Centrale de Paris, who also holds an MSc in Material Science from Harvard and an executive MBA from HEC Paris. He is a respected worldwide expert in metal transformation and production processes and has been a consultant and investor since founding Metalvalue. He has a distinguished career, including 38 years with Vallourec Group, (current market capitalisation US$5.4bn), a world leader in premium steel and titanium tubular solutions, primarily serving the energy markets, as well as other industrial applications with 22,000 employees, integrated manufacturing facilities, advanced R&D, and a presence in more than 20 countries. Prior to leaving Vallourec in 2006, Alain Honnart was Group Industrial Director and CEO of stainless steel and high alloys division and during his time with the company he was on the executive committee and responsible, as part of his larger assignment, for R&D and Intellectual Property.

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