Update on Second Tailings Dam in Gedabek District, Azerbaijan

17 July 2023

Anglo Asian Mining plc

Gedabek Tailings Dam

Anglo Asian Mining plc ("Anglo Asian" or the "Company"), the AIM listed gold, copper and silver producer focused in Azerbaijan, provides the following update regarding its second tailings dam, which will be located in the Gedabek district of Azerbaijan.

The Company's preferred site for the construction of its second tailings dam is close to its existing dam and the necessary land allocation from the Government of Azerbaijan (the "Government") has been granted. However, the location of the new dam has recently been the subject of protests. Since these began, various Government departments, assisted by independent laboratories, have carried out environmental sampling of the area surrounding the existing tailings dam. No contamination, or a higher incidence of disease in the neighbouring population, has been identified.

Anglo Asian has been operating at Gedabek since 2009 and is proud of its long-standing and strong community relations, particularly its significant social and economic contribution to the local area which was historically impoverished with low levels of employment. Accordingly, the sudden unrest over the location of the second tailings dam was unexpected. Nevertheless, the Company, in collaboration with the Government, has agreed to a re-evaluation of the technical and environmental aspects of its second tailings dam, including the proposed location and other related matters (the "Environmental Study").

The Environmental Study will be carried out by an independent international consultancy under the auspices of the Ministry of Ecology and Natural Resources. The Company's local environmental engineers, CQA International, and its independent tailings management consultants, Knight Piésold, will assist in the process. The Company is currently agreeing a protocol with the Government for how the Environmental Study will be carried out, which it expects to finalise in the coming days. Whilst the Environmental Study is being finalised, and any identified remedial work is completed, the Company expects to curtail the parts of its Gedabek operation which result in discharge into its existing tailings dam (primarily being the operation of its flotation and agitation leaching plants). Details of the protocol will be published when finalised, and the Company will revise its production guidance accordingly.

The Company has full confidence in its complete compliance with all relevant local laws and regulations. The health, safety and well-being of its workforce and local stakeholders is of paramount importance to the Company, underpinning the governance of its operations. It also follows global best practice and upholds all international standards and guidelines. Its tailings dams are constructed and managed to ICMM standards, the industry benchmark of best practice.

The Company has also received technical assurance that the wall of the current dam can be raised, which the Government has agreed to subject to the usual approvals and the completion of the Environmental Study. The Company is therefore confident it has sufficient tailings capacity whilst the second tailings dam is constructed.

The Company will provide updates of progress and further developments in the re-evaluation of the location and other technical aspects of its second tailings dam as appropriate.

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014, which was incorporated into UK law by the European Union (Withdrawal) Act 2018, until the release of this announcement.

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Notes to editors

Anglo Asian Mining plc (AIM:AAZ) is a gold, copper and silver producer with a high-quality portfolio of production and exploration assets in Azerbaijan. The Company produced 57,618 gold equivalent ounces ("GEOs") for the year ended 31 December 2022. 

On 30 March 2023, the Company published its strategic plan for growth which shows a clearly defined path for the Company to transition to a multi-asset, mid-tier copper and gold producer by 2028. By 2028, copper will be the principal product of the Company, with forecast production of around 36,000 copper equivalent tonnes. It plans to achieve this growth by bringing into production four new mines during 2023 to 2028 at Zafar, Gilar, Xarxar and Garadag. 

The Company owns approximately 19.8 per cent. of Libero Copper & Gold Corporation ("Libero"). Libero is listed on the TSX Venture Exchange in Canada and owns, or has the option to acquire, several copper exploration properties in North and South America, including Mocoa in Colombia, one of the world's largest undeveloped copper-molybdenum resources. 

https://www.angloasianmining.com/

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