------------------------------------------------------------ http://us2.campaign-archive2.com/?u=b2509bf4262d15b1a66d37bc4&id=f0126535b3&e=ba26fee041 Anglesey Mining plc 25 September 2013
** Chairman’s Statement and Management Report ------------------------------------------------------------ The half year to the end of September 2013 has been difficult for the group and particularly for the investment in Labrador Iron Mines (“LIM”). For the six months ended 30 September 2013, LIM sold six shipments of iron ore totalling 980,000 dry tonnes and expects to achieve its target for the production and sale of 1.7 million wet tonnes for the year.

However the quality of that product was below expectations, largely because of lower grade encountered in the deeper part of the James mine, and the net revenue received was negatively impacted, despite the improvement in iron ore prices.

At the same time LIM’s operating costs continued at higher levels than anticipated.

The result was a very large loss reported by LIM.

Now that LIM is treated as an investment this loss does not directly impact the group’s accounts.

However the LIM share price had declined at the period end and that fall in price is now reflected as a loss in our income statement.

The increase in value of sterling against the Canadian dollar over the period has added further to this loss. At the same time Parys Mountain has been maintained on a low activity level with only a limited amount of geological review being conducted.

This has ensured that costs have been kept to a minimum and cash conserved.

A number of cost limitation matters have been completed and these should lead to a reduction of operating expenses in future periods. We continue to monitor the markets for the various metals that comprise the Parys Mountain project with the expectation that we will be able to move the project forward, with its relatively short lead time, to production once we sense the future upturn in these metal prices is well founded.

We also continue to monitor other potential projects in suitable commodities in politically stable environments. Labrador Iron LIM detailed the following highlights for the three and six month periods ended 30 September 2013: * During the quarter, LIM sold four shipments of iron ore totalling 652,000 dry tonnes, and reported revenue of C$40.3 million.

For the six months ended September 30, 2013, LIM has completed the sale of six shipments of iron ore totalling 980,000 dry tonnes. * Revenues were impacted by value-in-use deductions arising primarily from the lower grade of ore mined. * With a number of cost reduction measures implemented and higher production volumes achieved, operating unit costs were lower quarter over quarter. * For the half year ended 30 September 2013, LIM reported a net loss of C$53.4 million, which included a non-cash depletion and depreciation charge of C$26.3 million. * During the period, LIM completed the Joint Venture Agreement with Tata Steel Minerals Canada (“TSMC”) for the exploration and development of LIM’s Howse Deposit and received a cash consideration of C$30 million. Mining, Processing and Rail During the first half of the 2013 operating season, LIM mined a total of 1.33 million tonnes of ore from the James Mine, Redmond Mine and Ferriman stockpiles.

At James, approximately 1.12 million tonnes of ore were mined during the period.

Mining activity took place deeper in the pit and the ore exhibited a lower in-situ iron grade and contained a greater fines component than previously experienced. Initial mining of the Redmond Mine commenced in July 2013 and 190,000 tonnes of ore was extracted during the period.

Waste removal from Redmond was minimal, partially offsetting the additional costs of hauling the material approximately 12 kilometres to Silver Yards.

High clay content in the Redmond material caused difficulties in the wet processing plant, resulting in poor recovery levels. Bulk sampling of ore from the Ferriman stockpiles commenced in September 2013 and 18,500 tonnes of ore was reclaimed from Ferriman.

The Ferriman material has responded well to wet processing. Processing activities at Silver Yards increased significantly in the second quarter, with full operations from both the wet processing and dry screening facilities.

A total of 1.8 million tonnes of plant feed were processed and screened during the period, producing an aggregate of 1.1 million tonnes of lump and sinter iron ore product.

Product recovery rate was low at 61%, which was attributable to a higher amount of fines in the James plant feed extracted from deep in the pit, the high clay content of the Redmond plant feed and underperformance of the newly installed wet high intensity magnetic separator. LIM railed a record of approximately 1.05 million tonnes of iron ore to the Port of Sept-Îles.

By the end of July, a fourth train set was operating and rail operations averaged approximately five trains per week. Iron Ore Sales LIM completed six shipments of iron ore totalling 980,000 dry tonnes during the period.

These shipments were sold to the Iron Ore Company of Canada.

LIM recognized net revenue of C$58.2 million after netting shipping costs and IOC’s participation from the CFR China actual realized price for these shipments. LIM’s product sales during the period experienced value-in-use deductions related to the silica, iron content and sizing specifications, which deviated from benchmark standards. Parys Mountain There has been a limited amount of work carried out on the Parys Mountain site.

Geological data compilation, assessment and review have continued and this will increase in the coming months.

The group continues to monitor the markets for its major metals and in particular the medium term prospects for zinc on which the immediate future development of mining and treatment operations is highly dependent.

The lead time to move Parys Mountain into production, subject to financing, is relatively short.

In the meantime expenditure will be kept to a minimum consistent with sufficient geological review being maintained. Financial Results There was a net loss for the period of £3.2 million (2012 loss - £7.4 million); almost £3 million of this loss was in respect of the holding in LIM.

Administration expenses were slightly reduced.

The group has no revenues from the operation of its properties.

At the period end the cash resources of the group were £0.4 million (31 March 2013 - £0.7 million). Outlook The iron ore price has firmed during the half year and has maintained some stability for a couple of months.

Recent political signals from China suggest that infrastructure investment will continue and this should continue to support the price around current levels.

LIM has to maintain its programme of cost reductions and couple this with detailed planning for the next stage of development at Houston.

Together all these should, subject to additional financing, provide a solid basis for future operations. Base metal prices, particularly of lead and zinc, have still to respond to any Chinese stimulus and to the perceived reduction in global production levels in the next few years.

The group is of the view that sustained upward movements will occur in the near future. John F Kearney Chairman 25 November 2013 Full half yearly results announcement About Labrador Iron Mines Holdings Limited (LIM) Labrador Iron Mines (LIM) is Canada’s newest iron ore producer with a portfolio of direct shipping (DSO) iron ore operations and projects located in the prolific Labrador Trough.

Now in its third year of operations, LIM is targeting the sale of 1.7 million tonnes of iron ore products in 10 shipments in 2013. About Anglesey Mining Anglesey holds 15.3% of Toronto-listed Labrador Iron Mines Holdings Limited which is producing high grade hematite from a number of direct shipping iron ore deposits in western Labrador and north-eastern Quebec. Anglesey is also carrying out exploration and development work at its 100% owned Parys Mountain zinc-copper-lead deposit in North Wales, UK where a JORC Code-compliant resource of 2.1mt at 6.9% combined base metals in the indicated category and 4.1mt at 5.0% combined in the inferred category was published in November 2012. For further information, please contact: Bill Hooley, Chief Executive +44 (0)1492 541981; Danesh Varma, Finance Director +44 (0)207 6539881; Samantha Harrison: RFC Ambrian +44 (0)20 3440 6800; Emily Fenton/Jos Simson: Tavistock Communications +44 (0)20 7920 3155.
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