eEnergy Group Regulatory News (EAAS)

25 August 2016

Alexander Mining plc

("Alexander" or the "Company")

Licence Agreement with Accudo Metals Pty. Ltd. for Projects in Australia

· Leaching technology licence agreed with Accudo for projects in Australia

· Attractive royalty and licence fee payments to Alexander

· Accudo is well financed and has excellent mining industry experience and expertise

· First stage testwork in Australia on highly attractive first target copper project underway

Alexander Mining plc is delighted to report that its wholly owned subsidiary, MetaLeach Limited ("MetaLeach"), has executed a licence agreement ("Licence Agreement") with Accudo Metals Pty. Ltd. ("Accudo"), a new Australian company which has been established to exploit Alexander's proprietary leaching technologies ("Leaching Technologies").

Accudo is funded by sophisticated investors and clients of BlueMount Capital ("BlueMount"), a national mid-tier Australian investment bank. Pre-funding for test work and a full Scoping Study on the first targeted opportunity has been committed. Subject to the Scoping Study being positive, Accudo foundation funders and BlueMount clients will fund a detailed feasibility study.

MetaLeach has granted Accudo an exclusive licence for up to five mining projects (each a "Project") in Australia to use its Leaching Technologies, subject to securing commercial terms with the Project owners, on the following terms:

1. Royalty

Alexander will receive a royalty of 3.5 per cent. ("Royalty") for product produced using the Leaching Technologies ("Plant Product"). The Royalty to be calculated either on the gross value of London Metal Exchange Grade copper or zinc cathode ("Sold Product") or, for any other Plant Product which has been sold and for which payment is received or entitled to be received ("Sold Product").

2. Project Payments

In addition to the Royalty, the Licensee shall pay MetaLeach progress payments for each Project as follows:

a. AU$250,000 on the completion of a Definitive Feasibility Study for each Project that clearly establishes the technical, economic and financial feasibility of the Project and the use of the Leaching Technologies in Processing Operations with respect to a Plant located in the particular Project Tenements subject to this Licence Agreement;

b. AU$250,000 within seven calendar days of the first commercial sale and shipment of Plant Product utilising the Leaching Technologies; and

c. AU$250,000 three months after the first sale and shipment of Plant Product utilising the Leaching Technologies.

3. Grant of Option

Conditional upon the payment by the Licensee to MetaLeach of the payments set out below the Licensee shall have the Option to convert the non-exclusive component of the Licence into an exclusive Licence (exclusions excepted for any Licence Agreement(s) already executed with third parties at the time of the Option exercise) for the use of the Leaching Technologies in Australia.

Exercise of the Option is conditional upon the Licensee commencing and funding, on standard commercial terms, technical work with MetaLeach and commencing with a feasibility study for the Leaching Technology on the first Project within one year from the date of execution of the Licence Agreement, and the following payment(s) to MetaLeach:

a) at any time within 12 months from the date of execution of the Licence Agreement: AU$850,000; or

b) on reaching the point where, for the first Project selected, a Licence Fee payment of AU$250,000 is due to MetaLeach as above in 2(a) and within 20 working days therefrom: a payment AU$1,350,000.

Martin Rosser, Chief Executive Officer, said: "We are delighted to have signed this agreement with Accudo which is well financed and intent upon rigorously evaluating the use of Alexander's Leaching Technologies in Australia. We have been in detailed discussion with them about a range of identified potential projects of interest and we look forward to developments with optimism."

Accudo director Saliba Sassine said: "Accudo is pleased to have entered into this ground-breaking agreement for both parties. The Company is excited about the prospects and testing the technology on targeted ores."

Background on Accudo 

Accudo is a special purpose vehicle established to hold granted licences for the MetaLeach technologies and to test the Leaching Technologies on target ore bodies with a view to taking these into commercial production. The company will pursue these projects in a systematic manner and subject them to detailed testing and definitive feasibility studies ahead of commercial production. The privately-held company is funded by sophisticated investors and clients of BlueMount Capital, a national mid-tier Australian investment bank. BlueMount Capital specialises in corporate finance, including IPO, M&A, MBO and cross border transactions (www.bluemountcapital.com).

This announcement is inside information for the purposes of Article 7 of EU Regulation 596/2014.

ENDS

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