Eurasia Mining Regulatory News (EUA)

Eurasia Mining plc (AIM: EUA)

("Eurasia" or the "Company")

Monchetundra mine permit application lodged and West Kytlim reserves and resources and project update

Highlights:

- Monchetundra project mining license application completed and submitted for approval

- Eurasia team continuing to mine at West Kytlim, with final closure for the 2017 season imminent

- New exploration license applications made adjacent West Kytlim mining license

Eurasia, the London listed platinum group metals and gold producer, is pleased to announce that the application for a mining permit at its Monchetundra Project on Kola Peninsula has been officially lodged for approval at Rosnedra, the Russian federal commission on subsoil use. Monchetundra is a major Platinum Group Mineral ('PGM') and base metals project with state approved reserves plus resources of 2 million ounces PGM (predominantly palladium) with additional base metal and gold credits. A discovery certificate, guaranteeing mining rights was issued to the company in July of this year. (See RNS dated 17 July 2017)

An update is also provided below on the 2017 mining season at the West Kytlim platinum and gold operating mine in the Ural Mountains, and the plans for the projects development through 2018.

Christian Schaffalitzky, Executive Chairman at Eurasia commented "We are very pleased to have submitted the Monchetundra mining license application, our second application in just over three years. We are hopeful for a reasonable processing time and have the in-house knowledge and experience to make the process as smooth as is possible. We look forward to updating on the application's progress in due course. Meanwhile we continue to make progress at our West Kytlim Mine which is expected to temporarily close for the winter season, as usual, before the end of the month. Production volumes are considerably less than anticipated due to continued optimisations and modifications required to the machinery on-site. We are actively working on new commercial arrangements to upscale the operation for the 2018 mining season".

Projects Update

Monchetundra: Summary

Monchetundra is a 2 million oz (reserve and resource) PGM deposit with significant gold and base metal credits. The largest component of the previously estimated in-situ metal value of $1.7 billion is contained in Palladium (See RNS 17 July 2017 or Eurasia website for a complete summary of reserves and resources). Reserves and resources have already achieved state approval and a discovery certificate previously issued for this deposit on the Kola Peninsula, Fennoscandia, North West Russia.

Monchetundra: Production Permit

The application for a production permit for the Monchetundra reserves and resources has now officially been lodged. The review of the application has already begun, and it is expected to progress through the Anti-Monopolies board, Rosgeolexpertiza and other departments within Rosnedra. The award of the production permit may occur five to twelve months after submission. Although time consuming, the directors feel the risk to the Company is nominal, as the company has already been awarded the Discovery Certificate which guarantees mining rights to the holder.

West Kytlim: Summary

Eurasia holds a 75% interest in the West Kytlim (palladium, platinum, gold, iridium and rhodium) open pit mine in the Ural Mountains which, with state approved reserves totalling 81,059oz raw platinum (2,298kg), and significant resource upside, is the second largest alluvial platinum reserve in the world. This deposit of platinum group and precious metal nuggets within river sediments is being developed using alluvial mining methods which are widely considered as a lower cost alternative to the more complicated and capital intensive underground mining operations elsewhere in the world*.

As announced on 20 November 2017, Eurasia have welcomed a significant new direct equity investment from Venus Garden Holdings Limited (BVI) ('VGH'), which is owned by Mr Alexei Churakov, as a cornerstone investor participating at the then current mid share price and in line with a positive long-term outlook for the Company's assets and prospects. It is Mr. Churakov's stated intention to acquire a direct interest in Kosvinsky Kamen, the Russian company holding the mining right to the West Kytlim Project, although there is no guarantee that this will occur. Already Mr. Churakov has introduced potential new contractors to participate in the development of the project through 2018.

West Kytlim: Contract Mining

In January 2017, Eurasia renegotiated the terms of the agreement with its mining contractor RegionMetall, principally to ensure the contractor's commitment to developing the project in an economically sensible manner. To ensure sufficient capital was deployed to the project it was agreed that the contractor would fulfil a specific mining schedule. In return, the contractor was offered an exclusive right to mine all reserves and resources within the mining license. Certain concerns regarding the equipment used were addressed and modifications to the scheme used to wash gravels and concentrate platinum were agreed and were to be implemented before the commencement of mining in 2017. Early in the summer of 2017, the contractor's exclusive mining right was automatically revoked for failing to fulfil the agreed production schedule, timing and volumes in the initial months of the season.

As the contractor's mining method is more sensitive to weather conditions RegionMetall elected to largely discontinue operations in mid-October, though some equipment and personnel remained on-site. The total amount of metal produced by the contractor in this seasons operation amounted to 211 ounces (6kg) raw platinum.

West Kytlim: Large Enrichment Plant Fine Tuning

Ongoing maintenance and modifications to the large enrichment plant at site aimed at optimising recovery and increasing throughput, necessitated downtime and therefore actually reduced the anticipated production volumes. A series of vibrating screens, a key element of the gravel washing process, were further modified on site during the mining season to allow for better handling of oversized material. To increase capacity and to avoid blockages in the system it was decided to pump the platinum bearing product of the vibrating screen to the sluice, a modification which incurred further downtime.

As the operation at West Kytlim is contracted, the majority of operating and capital costs are borne by the contractor. In that respect, losses incurred by the contractor do not impact Eurasia as a consequence of less than anticipated mining volumes, however forecasted revenues are reduced.

West Kytlim: Eurasia's Role

Eurasia staff, principally a mining engineer, senior geologist and the director of the local company and project owner remained on site throughout the mining season, actively supporting the contractors work. The large enrichment plant is now optimised for full capacity in 2018. The directors feel progress in further proving the mining scheme and fully testing the equipment as applied to the specific parameters of the river sediments at West Kytlim has been satisfactory despite the less than anticipated production volumes.

Eurasia have taken the following steps to prepare for the 2018 mining season:

- Continued mining since mid-October, using Eurasia's own enrichment plant, and utilising some of the contractor's equipment, with additional machinery on hire from local providers. Work will continue until the natural close of this current mining season, expected before the end of November. This allows Eurasia to enjoy the full margin of the project, as owner operator, with indicative cash costs below $400/oz and in the lowest quartile of the global operating cash costs curve*.

- As of Wednesday 29 November 2017, the Eurasia operated washplant, utilising a simpler and lower volume processing scheme to the contractors, had produced a further 135 ounces (3.8kg) of raw platinum.

- Eurasia's washplant, operational for just one month has produced 38% of the seasons current total production of 346 ounces (9.83kg) raw platinum. Modifications to upscale this efficient though small-scale washplant for use in the 2018 season are now being considered. In addition, a detailed estimation of the operating costs associated with Eurasia's washplant will be conducted as time permits during the winter months.

- Maintained positive relations with the contractor, despite continued modifications to their processing scheme which led to reduced production volumes; this to ensure smooth working relationships in the 2018 mining season and beyond.

- Attracted bids and tenders for further suitably qualified contractors to ensure production in parallel from several open pits in subsequent mining seasons, thereby mitigating the single operator risk.

Mining may progress to at least two open pit sites in 2018, to further manage the single asset risk: current plans are for two open pits to be mined under contract and another by Eurasia itself as owner operator. The reserves targeted at Malaya Sosnovka in the 2016 and 2017 trial mining seasons remain a focus for the 2018 season, as well as the Kluchiki and Bolshaya Sosnovka mine sites which are also ready for development. The reserves statement at Malaya Sosnovka will show a small net increase year on year, as a 15% increase in reserves which achieved state approval earlier in this year (see RNS dated 24 March 2017) offset depletion by 2017 production.

West Kytlim: New licence applications

Based on earlier geological mapping and exploration work in the area, the directors believe that there is very good potential to increase both reserves and resources in the ground nearby to the West Kytlim area. Known platinum bearing geological units are continuous outside the current license but within the same river system as current reserves and resources. These geological units are a sensible target for further work. In that regard the Company has applied for two new areas to detail this potential, namely; Tipil (23.14km2) and Malaya Kosva (9.42km2) which were officially applied for in September of this year. As is the case with other parts of the current mining license, the Malaya Kosva area has been previously mined by dredging, the target for Eurasia's exploration will be potentially productive sediments in the near surface, beneath the previously dredged platinum bearing gravels.

Company's Update on Reserves and Resources (West Kytlim)

Following the increase of the reserves at the Malaya Sosnovka Area, which have now been approved by Rosnedra, an update on reserves at West Kytlim is here provided. Net attributable is net attributable to Eurasia through its 75% owned Russian subsidiary Kosvinsky Kamen. Reserves are calculated in-house and later approved and credited to the state balance by Rosnedra. Resources are not compliant with the Russian Standard, are not reviewed by Rosnedra and are calculated in-house in accordance with the Russian categories P1 and P2, to include resources within the current mining license. The P1 and P2 resource categories are provided for indicative purposes, are internal estimates and prepared by the Company only. They are provided to demonstrate the potential the Company is developing in the West Kytlim area.

Summary table of reserves and resources for the entire area, valid December 2017

** approved by Rosnedra and accordingly prepared in accordance with the Russian Standard

***Prepared in accordance with Russian practise by the Company only.

The detailed table of reserves required in accordance with the AIM Rules is set out in Appendix 1 below.

A more complete production report, including details of refinery receipts in gold and other PGM iridium, palladium and rhodium will follow after final reconciliation. Grade of run of mine ore is cross referenced with reserve grade after direct measurement of gravel volume depletion at the open pit, and accumulation in the tailings and land rehabilitation stockpiles.

A graphic describing the various processing schemes mentioned above has been uploaded to the company's website at http://eurasiamining.co.uk/operations/west-kytlim

*Global cash cost information published for platinum producers by GFMS Research & Forecasts via Thomson Reuters.

Russian C1 and C2 categories are GOST categories and broadly correspond to Proved or Probable Reserves in international reporting codes, as the economics of their development must be demonstrated in parallel with measuring the Reserve. Russian category P Resources broadly correspond to Inferred Resources in international reporting systems.

Christian Schaffalitzky, FIMMM, PGeo, CEng, is a director of the Company. He has reviewed the update and consents to the inclusion of the exploration information in the form and context in which it appears here. He is a Competent Person for the purposes of the reporting of these results.

This announcement includes inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.

Glossary of Key Terms

A,B, C1 and C2, P1 and P2 - Categories of ore body defined under the Russian Standard as having met minimum requirements of exploration information and knowledge.

Cut-off grade - Grade of a commodity, measured as an amount per unit mass, used to delineate the outer limits of a proposed ore body.

 JORC - The Australian code for reporting of exploration results, mineral resources and ore reserves, as published by the Joint Ore Reserves Committee of the Australian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia.

GKZ - Russian state commission on mineral reserves which ensures Gosstandart compliance.

Reserves - Probable and Proven Reserves (or equivalent depending on the Standard used). Closely comparable to Russian Standard C1 but may contain material of Russian Standard categories A, B, C1 and C2.

Resources - Inferred, Indicated and Measured Resources (or equivalent depending on the Standard used). Closely comparable to Russian Standard C2 but may contain material of Russian Standard categories A, B, C1 and C2, and P1 and P2.

Russian Standard - Referring to the Gosstandart of Russia, the national Russian standard on mining and minerals as published by the National Certification Body of the Russian Federation and adhered to by GKZ and Rosnedra. - Russian federal agency for subsoil use which oversees the work of GKZ and manages the state balance of mineral resources.

Appendix 1 : Reserve statement 2017

 Enquiries:

Eurasia Mining Plc

Christian Schaffalitzky/Keith Byrne

+44 (0)207 932 0418

WH Ireland Limited

Katy Mitchell/James Sinclair-Ford

+44 (0)161 832 2174

Beaufort Securities

Elliot Hance

+44 (0)207 382 8300