eEnergy Group Regulatory News (EAAS)

31 January 2018

Alexander Mining plc

("Alexander" or the "Company")

Vanadium Research and Development Joint Venture

Project Update

· Joint venture ("JV") partner Multicom Resources Pty Ltd. ("Multicom") has received State Government approval for bulk sample extraction required for test work.

· John Webster Innovations ("JWI") has established a research and development ("R&D") facility in Brisbane, Queensland.

· Vanadium pentoxide, a powder form of the metal used in next generation storage batteries and the steel industry, has already increased 27 per cent. in 2018 to an eight year high of US$12.38 per pound.

Alexander is pleased to issue this update on its R&D JV for the potential heap leaching recovery of vanadium from amenable ores ("Vanadium Leaching Technology") originally announced on 8 September 2017. The JV is between Alexander, Multicom, and JWI.

Multicom has advised that it has received approval from the Queensland Government to extract a bulk sample from its St. Elmo Project to initiate test work. Running parallel to this statutory process, JWI has set-up its testing facilities in Queensland to perform the necessary studies.

The expected timetable from the date of this announcement for the proposed technical work programme is as follows:

Bulk sample delivered to JWI testing facilities: 1-2 months

JWI and Alexander to complete phase one test work: 2-3 months

Reporting of initial results: 3-4 months

In addition to the sample provided to JWI and Alexander, Multicom will also be using its existing flow sheet to provide samples of vanadium pentoxide to its identified offtake partners in the steel industry and also its upstream battery partner, StorEn Technologies (see announcement on 22 November 2017).

Martin Rosser, CEO, said: "We are very pleased with the progress of the R&D JV, which provides Alexander a significant opportunity potentially to use its expertise to disrupt conventional processing methodologies in the vanadium sector. If successful, this would provide exposure to this constricted supply, high demand metal and its emerging applications across a number of new technologies."

Nathan Cammerman, Executive Director and Co-Founder of Multicom said: "Compared to most vanadium deposits globally, which are usually hard-rock and require high vanadium grades to ensure project viability, our Saint Elmo Project is a sedimentary deposit. Unlike those hard-rock resources, limited drilling, crushing, blasting and grinding would be required prior to potential leaching. Our existing process flow sheet for the project is already proven, however, if the Alexander and JWI heap leaching test work proves successful, a sub US$2 per pound operating cost may be achievable".

Alexander's involvement in the vanadium sector comes at a time when significant interest is being drawn to the metal. The vanadium pentoxide price has increased over 130 per cent. in the last 12 months, outperforming other battery metals such as cobalt, lithium and nickel. Multicom's Saint Elmo Project is well positioned on the development curve potentially to capitalise on the strength of interest in the metal. A mining lease application has been lodged, feasibility and environmental studies are well underway and the Company has a near full allocation of off-take partners for its potential production. This includes its binding vertical integration agreement, with StorEn Technologies which is rapidly advancing its next generation battery storage units.

ENDS

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