Investor Presentation December...

Azerbaijan focused gold, copper and silver production and development company

Investor Presentation December 2013

Anglo Asian Mining Plc | Q4 2013 | “Building a mid-tier gold & base metal mining company focussed in Azerbaijan”

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Disclaimer

The informa,on in this document is subject to upda,ng, revision and amendment. This document neither cons,tutes nor forms nor should be constructed as cons,tu,ng or forming part of any offer or invita,on to sell or any solicita,on of any offer to purchase or to subscribe for any securi,es in Anglo Asian Mining PLC (“Anglo Asian Mining”) or any other body corporate or an invita,on or inducement to engage in investment ac,vity under sec,on 21 of the UK Financial Services and Markets Act 2000 nor shall it or any part of it form the basis of or be relied on in connec,on with any contract therefore. This document does not cons,tute an invita,on to effect any transac,on with Anglo Asian Mining nor to make use of any services provided by Anglo Asian Mining. No reliance may be placed for any purpose whatsoever on the informa,on contained in this document nor on assump,ons made as to its completeness. No representa,on or warranty, express or implied, is given by Anglo Asian Mining, any of its subsidiaries or any of its respec,ve advisers, officers, employees or agents, as to the accuracy, fairness or completeness of the informa,on or opinions contained in this document or expressed in the presenta,on and, no liability is accepted for any such informa,on or opinions (which should not be relied upon) or for any loss howsoever arising, directly or indirectly, from any use of this document or its contents or informa,on expressed in the presenta,on. The informa,on and opinions contained in this document and the presenta,on are provided as the date of this document and the presenta,on and are subject to change without no,ce. This presenta,on contains forward-‐looking statements that are based on Anglo Asian Mining's current expecta,ons and es,mates. Such forward-‐looking statements involve known and unknown risks, uncertain,es and other factors that could cause actual events or results to differ materially from es,mated or an,cipated events or results implied or expressed in such forward-‐looking statements. Factors that could cause such difference include changes in world commodi,es and equity markets, poli,cal developments in Azerbaijan, changes to regula,ons affec,ng Anglo Asian Mining's ac,vi,es and other risks involved in the mining industry. Any forward-‐looking statement speaks only as of the date on which it is made and Anglo Asian Mining disclaims any intent or obliga,on to update any forward-‐looking statement, whether as a result of new informa,on, future events or results or otherwise. Forward-‐looking statements are not guarantees of future performance and, accordingly, undue reliance should not be put on such statements due to the inherent uncertainty therein.

This presenta,on has been prepared in compliance with English law and English courts will have exclusive jurisdic,on over any disputes arising from or connected with this presenta,on.


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Company Snapshot


Multi-stage Portfolio in Azerbaijan

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GEDABEK PRODUCTION

Flagship producing gold, copper & silver mine in Western Azerbaijan

37,700 oz Au, 38,363 oz Ag, 268 t Cu – 9mths 2013

60,000 oz Au target - FY 2013

GOSHA DEVELOPMENT

Gold development project 50km from Gedabek – near term

production in 2014

ORDUBAD EXPLORATION

&DEVELOPMENT Gold E&D project in Nakhchivan region

Anglo Asian Mining is a highly profitable, low cost gold, copper and silver mining company with a progressive portfolio of three

multi-stage assets focused on Azerbaijan


Anglo Asian Snapshot

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Profitable US$4.2M H1

2013

38,363oz Ag 9mths 2013 production

1,962 km² Multi-stage portfolio

37,700oz Au 9mths 2013 production

744,038oz Au

JORC Reserve Estimate at Gedabek

256t Copper concentrate

produced 9mths 2013

60,000oz Au production target FY2013 –

on commissioning of

Agitation Leaching Plant

Low Cost US$450-500

per oz Au target

1.25Moz Au JORC Resource

Company production target

of 80,000 to

90,000oz Au for FY 2014 Extensive management experience in Azerbaijan – good relationship with the

government


Key Data

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Share Price 22.62p (29.11.13)

Market AIM

Ticker AAZ

Market Cap. £25.2 million

Shares in Issue 111,397,307 million

Nom Adviser/ Broker S.P. Angel

Non-Executive Chairman Khosrow Zamani

President & CEO Reza Vaziri

C F O & C o m p a n y Secretary

Sean Duffy

Non-executive Directors Richard Round

John Monhemius

John Sununu


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Projects Overview


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Project Locations - Azerbaijan

Gedabek

Gyzilbulakh*

Vejnali*

Ordubad

Gosha

* Occupied Contract Areas to develop when poli6cal climate permits

Soutely*


Gedabek

•  300km² Contract Area in western Azerbaijan on the highly prospective Tethyan Tectonic Belt

•  Operating open pit, heap and agitation leach mine – low strip ratio enabling simple ore extraction

•  Gold production of 37,700oz for 9mths 2013 – on track to produce 60,000oz Au for FY 2013

•  Agitation Leaching Plant commissioned in June 2013 to improve gold recoveries, reduce

operating costs and increase life of mine – evidenced by record quarterly production in Q3 2013 of 20,242oz Au

•  Operating costs targeted to lower to US$450-500 for FY 2013

•  Copper, silver, gold production from SART operations performing well with income from sales

totalling US$6.5m for 9 mths 2013

•  Stockpiles of Cu concentrate totalled 393 WMT– potential to positively impact FY 2013

•  Extending mine life, reserve figures and identifying additional resources within the mine’s

proximity – upgraded JORC resource 1.12Moz (Measured and Indicated) and maiden reserves of 744,038oz

•  Excellent infrastructure and engineering support

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Gedabek Gold/Copper/Silver Production

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Quarter ended Gold Produced (inc. Govt. of Az’s share) (oz)

Weighted Average Gold Sale Price (US$)

Total for Full Year 2012 50,215 1,660

31 March 2013 8,585 1,638

30 June 2013 8,912 1,438

30 September 2013 20,242 1,328

Target production for FY 2013 60,000 -

Quarter ended Copper Recovered (Tonnes)

Silver Produced (oz)

Gold Produced (oz)

Total for Full Year 2012 502 98,158 86

31 March 2013 93 9,875 16

30 June 2013 63 8,322 12

31 September 2013 112 20,166 4.5

Target production for FY 2013 420 60,000 -

Gold Production

Copper/ Silver/ Gold Production - SART


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Gedabek Mineral Resources

Measured, Indicated and Inferred mineral resources of both the oxide and sulphide mineralisation based on a cut-off grade of 0.3 g/t of gold

Classification Tonnage Grades Products

Au Cu Ag Au Cu Ag t g/t % g/t Oz T Oz

Measured 20,381,748 0.948 0.249 7.962 620,900 50,721 5,217,687

Indicated 24,262,874 0.645 0.104 4.994 502,867 25,174 3,895,325

Measured & Indicated

44,644,658 0.783 0.170 6.349 1,123,767 75,895 9,113,012

Inferred 6,947,244 0.565 0.060 3.128 126,277 4,141 698,706

Total 51,591,901 0.754 0.155 5.915 1,250,043 80,036 9,811,719

JORC compliant resource of 1.12 million oz gold (Measured and

Indicated)


Gedabek Ore Reserves

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Tonnage Grades Products Recovered Products

Ore T

Au g/t

Cu %

Ag g/t

Au Oz

Cu t

Ag Oz

Au Oz

Cu t

Ag Oz

Proved ore Reserves

15,586,952 1.172 0.285 9.203 587,099 44,389 4,611,806 410,623 8,560 1,089,474

Probable Ore Reserves

4,725,928 1.033 0.319 10.292 156,939 15,091 1,563,725 121,984 2,745 621,601

Proved & Probable Ore Reserves

20,312,879 1.139 0.293 9.456 744,038 59,479 6,175,531 532,607 11,305 1,711,075

JORC compliant ore reserves of 744,038 ounces of gold


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Gedabek Mine and Processing Operations


Gedabek Expansion Programme

•  Agitation Leaching Plant was successfully commissioned in June 2013 on time and US$7 million under budget at US$45 million

•  Substantially increase gold production in its first quarter of commissioning – record gold production of 20,242oz Au for Q3 2013 – on target to meet 60,000oz Au for FY 2013 whilst reducing cash operating costs to circa US$450-500 per ounce of gold

•  Recovery rates have been initially estimated at 85% for oxide material and 69% for sulphide material – additional testing underway to further improve recovery rates

•  Capacity to treat 100 tonnes per hour of ore

•  Loan agreed with Amsterdam Trade Bank of US$37 million to pay back original IBA loan at reduced interest rate

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Significant opportunity to increase mine life and production profile and lower the operating cost of Gedabek in the medium term


RAMP UP Gold Production FY2013 – 60,000oz

INCREASE Mine Life

LOWER Operating Costs to c. US$450 per

oz



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Gedabek Exploration and Expansion

•  October 2013 - JORC resource report showed 20% upgrade to 1.12Moz in the

Measured and Indicated classifications

•  Updated resource did not include 145,000 oz extracted from Jan 2012 – 31 August

2013

•  Maiden JORC total mineable Reserve estimate of 20,312,879 tonnes at 1.139 g/t

gold for 744,038 ounces, 0.293% copper for 59,479 tonnes, and 9.456 g/t silver for

6,175,531 ounces

•  61,714 metres over 394 drill holes completed to date

•  On-going exploration programme to further increase resource/reserve base

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Resource/ Reserve Exploration


Gosha

•  300km² Contract Area located 50km north-west of Gedabek

•  Intention to develop a profitable, high grade, underground gold mine producing at an average rate of 15,000 to 20,000oz Ag per annum for a period of up to five years

•  Concentrate produced at Gosha would be processed at the existing Gedabek plant

•  Mine development has commenced – the ore vein has been intercepted and trial batch for 100t of ore was mined in September 2013

•  Production targeted at Gosha by the beginning of 2014 – potential for Company production to increase to 80,000-90,000oz by the end of 2014

•  Good infrastructure, electricity supplies and local skilled labour in close proximity

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Growth Strategy

•  Gedabek

•  Identify further resource/reserves in the proximity of the mine and increase life of mine

•  Increase gold production and lower operating costs following commissioning of Agitation Leaching

Plant

•  Gosha •  Targeting to develop a 15,000oz and 20,000oz per annum with 5 year mine life

•  Full production expected to commence early 2014

•  Ordubad

•  Explore contract area

•  Expand asset base •  Utilise first mover advantage in Azerbaijan to acquire further projects

•  Acquire additional properties in Caucasia

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“Our objective is to build a mid-tier, multi mine, gold and base metal company focussed in Azerbaijan and Caucasia”

Increase production profile – FY2013 circa 60,000oz Au, FY 2014 circa 80,000-90,000oz Au


Why Invest

•  A growth story offering cash flow, profitability and expansion

•  First-mover advantage having opened Azerbaijan’s first gold mining operation

•  Gedabek’s gold production set to increase and production costs lowered with new agitation

leaching plant

•  Considerable potential to further improve ore resource/reserve estimations within close

proximity to the Gedabek Mine

•  Increasing production profile - second mining operation, Gosha has commenced

development with production expected in 2014

•  Extensive portfolio of highly prospective projects across Azerbaijan with value upside

through the resource to production cycle

•  Strong, stable management team with excellent relations with the Government of

Azerbaijan

•  Strong news flow for 2013/2014 – milestones and multiple value kickers

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Appendix


Board and Management

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Khosrow Zamani Non-executive Chairman

Mr. Zamani was director of the Southern Europe and Central Asia Department of the International Finance Corporation (IFC), the private sector lending arm of the World Bank, from March 2000 to July 2005. This department was responsible for the IFC investment programme in 15 countries across the region. As of July 1st 2005, Mr. Zamani was appointed a Senior Advisor to the Vice President of Operation. Whilst a director at IFC, Mr. Zamani was instrumental in building the IFC investment programme in the region with several new initiatives, particularly in Central Asia and Caucasia. He oversaw the IFC portfolio of more than US$2 billion, diversified across the financial, oil and gas, mining and manufacturing sectors.

Mr. Reza Vaziri President and CEO

Mr. Vaziri served at the Ministry of the Imperial Court of the Shah of Iran before moving to the US. Mr Vaziri was the initial founder of the US Azerbaijan Chamber of Commerce (USACC) and has been appointed chairman for life. In his role with the USACC, he has arranged and participated in a number of economic delegations to Azerbaijan and played a key role in bringing US investment to the country.

Mr. Richard Round Non-executive Director

Mr Round is a Fellow of the Chartered Association of Certified Accountants. He began his career with British Coal in 1977. In 1987 Mr Round joined Ferrum Holdings plc, becoming group Finance Director in 1993. In 1995 Mr Round joined Consolidated Supply Management Limited as Finance Director, an international oilfield logistics group operating primarily in Latin America and the Former Soviet Union, including Azerbaijan and Kazakhstan. In 2001, Mr Round became Financial Director for the Mining (Scotland) group, the largest opencast coal mining company in the UK, before joining Anglo Asian in September 2005. Mr Round has also been Finance Director of Cambrian Mining PLC, Lubel Coal Company Limited, Novera Energy PLC and is now CFO of Aquamarine Power Limited, a wave energy developer.


Board and Management Cont.

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Professor John Monhemius Non-executive Director

Emeritus Professor Monhemius held the Roy Wright Chair in Mineral and Environmental Engineering at the Royal School of Mines, Imperial College, London, until 2004, when he retired from full-time academic work. From 2000 to 2004, he was Dean of the Royal School of Mines. He has more than 40 years experience of academic and industrial research and development in hydrometallurgy and environmental control in mining and metallurgical processes, particularly in the management of toxic wastes and effluents, and he has acted as a consultant to many large mining and chemical companies. Professor Monhemius has published over 130 papers in the scientific literature and he has supervised more than 30 PhD students. From 1986-96, he was a co-founder and director of Consort Research Ltd., a consultancy specialising in gold and base metal ore processing. He is a Fellow of the Institute of Materials, Minerals and Mining (IOM3).

Governor John H. Sununu Non-executive Director

Governor Sununu received a Ph.D. from Massachusetts Institute of Technology and taught engineering at Tufts University for 16 years. He served three terms as the governor of New Hampshire before President George H.W. Bush appointed him Chief of Staff in 1989, a position that he held until March 1992. After his tenure as Chief of Staff, he co-hosted CNN’s Crossfire, ran an engineering firm, and then in 2004 served as the visiting Roy M. and Barbara Goodman Family Professor of Practice in Public Service at the Kennedy School of Government at Harvard University. Governor Sununu is a former partner in Trinity International Partners, a private financial firm, and currently serves as President of JHS Associates, Ltd.

Sean Duffy Chief Financial Officer Company Secretary

Mr. Duffy holds a MBA from RMIT University in Australia and has over 25 years experience in the mining arena and has held senior finance positions for BHP Billiton Corporate Head Office in Australia and BHP Billiton Coal Exploration Projects in Indonesia. He has also worked as a Director of Finance for Ma'aden - Saudi Arabian Mining Company, a gold, phosphate and aluminium company and as Vice President Finance based in Dubai for DRC copper/cobalt company Shalina Resources. Additionally Sean has been CFO of a TSX:V listed Kazax Minerals an iron ore company with operations and functions in Kazakhstan, Africa, Malaysia, Singapore and Canada.


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Contacts

Anglo Asian Mining plc

Sean Duffy

Chief Financial Officer

16 H. Aleskerov Str Baku, Republic of Azerbaijan

email: [email protected]

T: +994 12 596 3350

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