REG-Anglesey Mining PLC: Final Results

Anglesey MiningAnnouncement

28/09/2020 07:05

Anglesey Mining plc

Annual Report 2020

A UK mining company listed on the London Stock Exchange

Projects:

100% of the Parys Mountain underground zinc-copper-lead-silver-gold deposit in
North Wales, UK where an updated Scoping Study was completed in 2017. The
results of this Study are positive and further optimisation studies are is
currently underway.

12% of Labrador Iron Mines Holdings Limited which holds direct shipping iron
ore deposits in Labrador and Quebec.

A 10.0% interest in, and management rights to, the Grangesberg Iron project in
Sweden, together with a right of first refusal to increase its interest to
60.2%.

Chairman’s Statement

To Anglesey Shareholders

The most critical issue facing Anglesey Mining, and indeed every other company
in the world today, is Covid-19 which has impacted everyone from a health,
daily living and financial perspective.  Since Covid-19 was declared a
pandemic by the World Health Organization in March, the world has shifted
dramatically, with everyone having to adjust to a “new normal”, and as I
write this letter there is great uncertainty over the extent and duration of
the impacts Covid-19 may have on economic growth and global financial markets.

The economic impacts of the Covid-19 pandemic initially had a significant
negative effect on demand for metals and on metal prices.  Metal prices, and
by extension the level of investor interest in the mining industry, impact
Anglesey’s ability to finance the Company’s various projects. However, the
downturn had been significantly reversed by the end of August and we are
witnessing a growing strength in the financing markets for mineral projects
and for mineral companies. 

Amidst the ongoing pandemic, we still believe that the medium to long term
demand for metals is growing, especially as the world transitions to a
low-carbon electric economy, and the fundamental outlook for all base metals,
particularly for the metals that would be mined at Parys Mountain, remains
positive.  We expect this will be manifested once the inevitable economic
stimulus measures and government infrastructure spending kick in.

New UK Corporate Governance Code

In recent years there has been an increasing investor focus on environment,
social and governance. This is not something new in Anglesey as we have always
placed high importance on these areas. What is perhaps new is formalizing and
reporting on these matters in greater detail. This year, we are reporting
under the new UK Corporate Governance Code published by the Financial
Reporting Council in 2018.  The new Code is applicable to all companies with
a Premium Listing on the London Stock Exchange and although Anglesey Mining is
not included in the FTSE 350, and is considered a “smaller company”, the
new Code applies to Anglesey Mining because of its Premium Listing status.
Shareholders are encouraged to read the detailed Report on Corporate
Governance included later in this Annual Report.

The Board of Anglesey Mining although infused with entrepreneurial and
pioneering spirit is very small, currently only four members and we are
seeking at least one and preferably two new directors. The Directors believe
that throughout the year, Anglesey has, in general, complied with the spirit
of the Principles of the Code, to the extent such Principles are applicable in
Anglesey’s particular circumstances. However, as a company with limited
active operations and no employees, some of the Principles and many of the
Provisions are not applicable to the individual circumstances of the Company.

The purpose of Anglesey Mining is simple to describe, it is to develop, build
and operate a producing mine at Parys Mountain, on the island of Anglesey in
North Wales, to create value for shareholders in an environmentally, socially,
and ethically responsible manner for the benefit of all stakeholders.

Parys Mountain – Moving steadily forward

In 2017 a new Scoping Study on the Parys Mountain copper-lead-zinc project
demonstrates a viable mine development and a healthy financial rate of return
based on copper prices of $US2.50 per pound, zinc of $US1.25 per pound and
lead of $US1.00 per pound, generating an overall net smelter return of $US270
million with an IRR of 26% and an NPV10 of $US27 million.

In late 2018 Anglesey entered into a Project Development and Cooperation
Agreement with QME Mining Technical Services to carry out an agreed programme
of engineering and optimisation studies relating to the future development of
Parys Mountain.  This has been a major exercise that expanded as it
progressed, as described and discussed in detail in the Strategic Report
included later in this Annual Report. 

The primary objective was to determine the optimum production plan for Parys
Mountain, but importantly to look at the opportunity of including some or all
of the previously identified inferred resources in a revised and larger
development plan that would increase the projected life of the Parys Mountain
mine, with potential positive outcomes on the project economics.

As previously reported, QME identified the potential for improvements in the
development plans contained in the 2017 Micon Scoping Study which was based on
mining only the 2.1 million tonnes of indicated resources reported by Micon in
2012. The QME work suggests that that the project can be further improved if
the potential mineable tonnage can be increased by using a lower cut-off
grade, and that at a production cut-off of $48 per tonne, approximately 5.25
million tonnes in situ within the designed stoping blocks would be available
in the White Rock and Upper Engine Zones for inclusion in a detailed
life-of-mine schedule. This approach allows the unlocking of mineralised areas
within the footprint that were not previously modelled due to not meeting the
higher cut-off grades used in the Micon Scoping Study.  These 5.25 million
tonnes are substantially higher than the mineable tonnage of 2.1 million
tonnes used in the 2017 Scoping Study.

QME then reviewed all the inferred resources originally reported by Micon in
deposits other than White Rock and Upper Engine Zones. These other zones, the
Lower Engine, Garth Daniel and Northern Copper Zones, are located within an
area approximately 1.3 km east-west and 370 metres north-south and lie
immediately to the northeast of the White Rock and Engine zones. This phase of
the QME work has identified 5.5 million tonnes of modelled inferred resources
that could be considered for inclusion in detailed mine design.

The third phase, which started in late 2019 and continued into 2020, involved
developing mine production models based on these enhanced tonnage projections
at a range of annual production scenarios that would be consistent with
maintaining an optimised life of mine. 

The QME work concluded that using the lower cut-off block models, there is an
opportunity to develop a new mineable model for either the White Rock and
Upper Engine zones alone, as per the Micon plan, or extending this to the
entire known resource zones, by re-defining the mining shapes and the stoping
plan, followed by a new development plan and schedule. 

Mining these enhanced tonnages will require an expansion of the planned annual
treatment rate of 1,000 tonnes per day used in the Micon Scoping Study,
potentially to 1,500 tonnes per day.  To optimise the mine life, and
dependent upon the extent of inclusion of the more distant zones, this rate
could be increased in the further expanded case of all zones to perhaps 3,000
tonnes per day. 

The Directors have long believed that the potential for the Parys Mountain
project is far greater than that developed from the indicated resources
only.  QME’s work confirms the overall prospectivity of the Parys Mountain
project and the potential for demonstrating five deposits or zones with
combined resources in the range of 10 million tonnes and that the projected
mine life could  be extended from the Micon Scoping Study base case of 8
years through to a range of 12 to 18 years.

The Cooperation Agreement with QME has enabled the completion of a substantial
amount of further work on mine planning design and project optimisation on
Parys Mountain at no immediate cost to Anglesey and at no dilution to
Anglesey’s current shareholders. The QME work has been of great benefit in
establishing the parameters for determining the optimum mine production model
and we are extremely appreciative of the work that QME has completed.  This
work will form the basis for commissioning a new Preliminary Economic
Assessment, and subject to financing being available, leading on to a
Preliminary Feasibility Study.

We have recently completed a private placing that raised £200,000 gross
together with warrants that could raise an additional £225,000 gross during
the next 12 months.  This will be used to bring the optimisation study into a
compliant basis by incorporating the QME work into an updated Scoping Study or
Preliminary Economic Assessment, as well as for general corporate purposes. We
are very pleased with this financing, which represents significant support for
Anglesey Mining.

Grangesberg Iron

Following, a small investment in late 2019, the Group now holds a direct 10.0%
interest in and management rights to the Grangesberg Iron project in Sweden
about 200 kilometres north-west of Stockholm, together with a right of first
refusal to increase its interest to 60.2%.  Until its closure in 1989 due to
then prevailing market conditions, the Grangesberg mine had produced more than
150 million tonnes of iron ore.

A Technical Report prepared by Roscoe Postle Associates Inc in 2014
estimated  a resource of 115.2 million tonnes at 40.2% Fe in the indicated
category and  33.1 million tonnes at 45.2% Fe in the inferred category and
concluded that the Grangesberg deposit hosts a significant iron resource that
has excellent potential for expansion at depth.

The +67% Fe high-quality product expected to be produced from Grangesberg,
coupled with the previously announced reduced mine life and the increased
level of seismic activity at LKAB’s flagship Kiruna project in northern
Sweden, which is Sweden’s largest iron ore producer, continues to make the
interest in developing the Grangesberg project more likely and more attractive
than many other undeveloped iron ore projects in Europe. 

The price of iron ore increased almost 21% in 2020, and outpaced gold to rank
as the best-performing major commodity in the first half of the year. Demand
for high-quality iron ore remains strong, mainly driven by solid demand from
China's steel mills despite COVID-19 impacts.

Labrador Iron

The Group holds a 12% interest in Labrador Iron Mines Holdings Limited (LIM)
which owns extensive iron ore resources in its Schefferville Projects in
Labrador and in Quebec, Canada. LIM has not undertaken mining operations since
2013 but maintains its iron ore assets on a stand-by care and maintenance
basis. Subject to securing financing, LIM plans to resume mining operations
when economic conditions warrant.

Outlook

The drive towards the sustainable development goals of greater renewable
energy (wind, hydro, solar) and carbon neutrality in the world’s economies
is expected to result in sustained demand for metals and minerals over the
coming decades because the infrastructure necessary to deliver on these goals
is very metal intensive.

Development of a new mine at Parys Mountain can deliver economic growth in the
UK and regional jobs and business opportunities for local service providers.
The minerals that would be mined at Parys Mountain are those that are
necessary for the modern world, copper in electronics, zinc in medicine, and
even much maligned lead is required for large electric battery storage. None
of these important and essential metals is currently produced in the UK,
making the country entirely dependent on imports. Equally important is that
with current precious metal prices, the value of gold and silver to be
produced at Parys Mountain would represent approximately 25% of the total
revenue stream.

We believe that following completion of the QME exercise, it will be possible
to positively report a total compliant resource figure somewhere around 10
million tonnes at Parys Mountain.  On that basis the mine plan, including
both the annual production rates and life of mine, would be significantly
enhanced. Importantly we believe that financial results flowing from such a
revised plan would achieve our goal of significantly enhancing the project
economics indicated by the 2017 Scoping Study.

We plan to bring all of the QME work into a compliant basis by incorporating
its work into an updated Scoping Study or Preliminary Economic Analysis as
appropriate. We would expect this will be followed, as soon as practicable and
subject to funding, with a Pre-Feasibility or full Feasibility study to enable
production financing to be achieved.

This work is very important to Anglesey and is likely to transform the
development prospects of Parys Mountain into a project that should attract
keen interest amongst financiers, metal traders, smelters and particularly
other and larger mining companies.

We will continue to examine development opportunities for our iron ore
projects as the medium-term outlook for iron ore, particularly for the higher
quality concentrates, is positive. We will also continue to seek out new
properties suitable for development that would be complementary to or provide
synergies with the Group’s existing projects within the financing capability
likely to be available to the Company. The Directors have identified copper
and other VMS projects, and gold or precious metals, as the most potentially
attractive and we continue to evaluate a number of early stage opportunities.

Once again, I would like to record my appreciation of the current directors
for their continuing support in moving the Parys Mountain mine project forward
and also thank all our shareholders for their continued interest in Anglesey
Mining.

John F. Kearney

Chairman

25 September 2020

Strategic Report – operations

Principal activities and business review

Anglesey Mining is engaged primarily in exploring and developing its wholly
owned Parys Mountain zinc, lead, copper project in North Wales. Anglesey’s
purpose is the development of a producing mine at Parys Mountain to create
value for shareholders in an environmentally, socially, and ethically
responsible manner for the benefit of all stakeholders. In 2017 a new Scoping
Study demonstrated a viable mine development and a healthy financial rate of
return. The purpose and objectives of the Group are discussed in the Report on
Corporate Governance included as part of this Annual Report. The strategy of
the Group is to systematically and sequentially advance the development of a
mine at Parys Mountain by completing exploration to outline mineral resources,
completing technical and economic studies to assess financial viability,
completing feasibility studies to demonstrate technical and financial
viability and use those studies to attract investment and raise the necessary
capital to build and operate the mine.

In late 2018 Anglesey entered into a Project Development and Co-operation
Agreement with QME Mining Technical Services, a division of QME Limited, an
Irish contracting and consulting group, to carry out an agreed programme of
engineering and optimisation studies relating to the future development of
Parys Mountain. As discussed in more detail below this has been a major
exercise that expanded as it progressed and is now nearing completion. Site
activities at Parys Mountain during the year have continued to be limited to
care and maintenance.

In addition, under various agreements, the Group participates in the
management of the Grangesberg iron ore property in Sweden in which it
increased its holding during the year to 10%, and a right of first refusal to
acquire a further 50% ownership interest. The Group also has a 12% holding in
the Labrador Iron Mines in eastern Canada, currently operating in care and
maintenance, and from time to time continues to look at other potential
projects that may be beneficial or synergistic to its development.

The Group’s business model remains to phase the development and financing of
the Parys Mountain project by undertaking various studies, completing a
prefeasibility or feasibility study and progressing the Parys Mountain Mine
towards production.

Parys Mountain copper zinc lead project

The Parys Mountain property hosts a significant polymetallic zinc, copper,
lead, silver and gold deposit. The site has a head frame, a 300m deep
production shaft and planning permission for operations. The Group has
freehold ownership of the minerals and surface land. Infrastructure is good,
political risk is low and the project enjoys the support of local people and
government.

An independent JORC resource estimate completed in 2012 by Micon International
Limited reported a resource of 2.1 million tonnes in the indicated category at
6.9% combined base metals and 4.1 million tonnes at 5.0% combined base metals
in the inferred category, with substantial exploration potential. These
resource estimates were made at a cut-off of $80 per tonne Gross Metal Product
Value (“GMPV”).

In July 2017 a Scoping Study was prepared by Micon International Limited and
Fairport Engineering Ltd. using the 2012 resource estimate. The Scoping Study
demonstrates a viable mine development mining 1,000 tonnes per day to produce
lead, zinc and copper concentrates and yielding a healthy financial rate of
return. The Scoping Study applied the same GMPV cut-off of $80 per tonne, used
in the 2012 resource estimate.

Development Plan – 2017 Scoping Study

A new mining plan was prepared as part of the 2017 Scoping Study based on a
surface decline to access the White Rock zone on which Anglesey Mining carried
out a detailed drilling programme during the period 2006-2010. The White Rock
zone which extends to surface lies adjacent to the existing 300m Morris Shaft
and largely overlies the deeper Engine Zone deposits.

The Scoping Study proposed that a decline would be developed by mining
contractors and would be used as the initial means of access to the resource
for development and mining. During the initial production phase from the White
Rock zone the decline would continue to be driven to reach the current bottom
of the Morris Shaft and beyond. The shaft would then be dewatered and deepened
by approximately 150 metres and recommissioned as a hoisting shaft for the
remnant White Rock ore and for the deeper and more valuable Engine Zone ore.
Mining would be carried out initially from the main decline using rubber-tyred
equipment including drill jumbos, load-haul-dump machines and trucks to remove
development waste to surface and production ore to the planned adjacent
processing plant. The existing hoist and headframe would be refurbished and
used to bring ore to the surface for delivery to the processing plant through
the deepened shaft.

Scoping Study Results

The 2017 Scoping Study concluded that the selected development option for
Parys Mountain for the extraction of the 2.1 million tonnes of indicated
resource was a 1,000 tonnes per day mine and that this would result in a mine
life of approximately eight years, based only on the indicated resources.

The processing plant proposed in the 2017 Scoping Study consisted of the DMS
component leading to crushing and grinding followed by conventional three
stage flotation to produce copper, zinc and lead concentrates to be shipped to
smelters in Europe. Metallurgical performance and recovery was based on the
large volume of information available from test work on Parys Mountain ores
over the years.

The pre-production capital cost of the base case, including mining, DMS,
concentrator and infrastructure was estimated at $56 million, including a $4
million contingency. Operating costs were developed by Micon and Fairport
based on knowledge and experience which at the higher levels of production
were forecast at around $47 per tonne of ore treated.

This base case yields a pre-tax net present value of $27 million, or £22
million, at a 10% discount rate, using metal prices of $1.25 per pound for
zinc, $1.00 per pound for lead, $2.50 per pound for copper, $17.50 per ounce
for silver and $1,275 per ounce for gold and at an exchange rate of £1.00 =
$US1.25. The indicated internal rate of return was 26%.

Anglesey Mining considers the 2017 study to be well founded and shows a
healthy financial return. Nevertheless, the Directors recognised that
alternative development scenarios may yield better results and concluded that
these should be investigated to enhance future project economics and financing
possibilities.

Project Development Agreement with QME

In late 2018 Anglesey entered into a Project Development and Cooperation
Agreement with QME Mining Technical Services, a division of QME Limited, to
carry out an agreed programme of engineering and optimisation studies relating
to the future development of Parys Mountain. QME Limited is based in Navan,
County Meath, Ireland from which it operates several divisions and provides a
wide range of services in both mine development and mine operations to the
local and international mining community.

QME has carried out both large and small-scale underground mine development
contracts, providing all technical evaluation and budgeting services,
personnel, management, equipment and maintenance. QME Mining Technical
Services division undertakes contract mining projects and employs an
‘in-house’ team of highly experienced operations managers, underground
supervisors, miners, fitters and electricians.

Under the Development and Co-operation Agreement with QME, the Group has
agreed to grant QME various rights and options relating to the future
development of Parys Mountain on completion of the optimisation study and
delivery to the Company of the results thereof.  These are:
1. Anglesey will award QME, on an exclusive basis, contracts for the
development of the decline and underground mine development, including
rehabilitation of the shaft. This will be done on terms to be agreed following
a decision by AYM to proceed with the development of Parys Mountain.
2. In the event Anglesey and QME are not able to agree terms Anglesey may
offer such contracts to third parties, subject to a right of first refusal in
favour of QME, and subject to a payment by Anglesey to QME, upon the award of
such contracts to a third-party, of a break-fee; and
3. In addition, Anglesey will grant to QME the right and option, upon
completion of a Prefeasibility Study (“PFS”), to undertake at QME’s cost
and investment, the mine development component of the Parys Mountain project,
including decline and related underground development and shaft development,
with a scope to be agreed, to the point of commencement of production, in
consideration of which QME would earn a 30% undivided joint venture interest
in the Parys Mountain project.
QME Optimization Studies - Progress

The QME work initially reviewed capital and operating cost forecasts but
importantly looked at the opportunity of including some or all of the inferred
resources previously identified on the site in a revised and larger
development plan. As QME progressed with this work programme, a number of
alternative scenarios were identified, and examination of these alternatives
expanded the scope of the QME work. This has extended the period of final
completion of their work, but this is now in the final stages.

QME conducted three major phases of work.

Phase 1 - Capital and Operating Cost Review

The first phase was a detailed review of mine capital and operating costs as
these would be applicable at Parys Mountain. QME carried out this phase using
their extensive experience in mine development. The main conclusion, as
previously reported, was that an operating cost of approximately $48 per tonne
treated was fair and reasonable. This approach of using lower operating cost
assumptions, benchmarked against QME’s of other underground operations
enabled the application of lower cut-off grades for mine planning of and this
figure was then adopted as the on-going cut-off value for mine planning
purposes.

As a subset of this first phase, and as reported last year, QME reviewed some
alternative means of access to the initial orebodies including early access
via the Morris Shaft, rather than through the new decline as planned by Micon.
On balance that work indicated that the decline remained the preferred means
of initial access and as such the basic Micon mine development plan continued
to be followed.

Phase 2 - Mine Planning

The second phase was to carry out detailed mine planning incorporating all the
mineralised material available, as identified by Micon in its 2012 resource
estimate, to determine an expanded tonnage and grade estimate available for
mining. This work was carried out using the $48 per tonne cut-off noted above.
In this phase QME included not just the indicated resources but also the
inferred resources, and this expanded resource included not just the White
Rock and Upper Engine zones, on which the 2017 Scoping study was based, but
also additional zones, including the Lower Engine Zone as well as the more
distant Garth Daniel and Northern Copper zones. QME developed potential
mineable tonnages for each of the zones including all possible resource
categories.

The QME work suggests that at a production cut-off of $48 per tonne,
approximately 5.25 million tonnes in situ within the designed stoping blocks
would be available within the White Rock and Upper Engine Zones for
consideration in a detailed life-of-mine schedule. This 5.25 million tonnes is
substantially higher than the mineable tonnage of 2.1 million tonnes used in
the 2017 Scoping Study. It is important to note that QME made no changes to
the underlying resource estimates which were calculated by Micon in 2012.

QME then reviewed all of the inferred resources originally reported by Micon
in deposits other than White Rock and Upper Engine zones. These other zones
are the Lower Engine, Garth Daniel and Northern Copper zones. These zones are
located within an area of approximately 1.3 km east-west and 370 metres
north-south and lie immediately to the northeast of the White Rock and Engine
zones, at depths from 180 metres to 620 metres below surface, which is roughly
consistent with, although a little deeper than, the indicated resources in the
Upper Engine Zone.

The QME work identified 5.5 million tonnes of modelled inferred resources that
could be considered for inclusion in detailed mine design. This is in addition
to the 5.25 million tonnes within the White Rock and Upper Engine Zones. This
5.5 million tonnes of modelled inferred resources is defined as the sum of the
mining-scale units associated with the Lower Engine Zone, the Garth Daniel
Zone and the Northern Copper Zone, above a cut-off of $48 per tonne, with no
mining factors applied. These zones represent 35% of the global inferred
resource, which had been previously estimated by Micon at 15.6 million tonnes
at $0 cut-off. It should be noted that the cut-off used of $48 per tonne has
been derived from the break-even point estimated for the White Rock and Upper
Engine zones and therefore is an iterative estimate only at this stage which
has to be confirmed as  applicable to these other zones.

Phase 3 - Production Planning and Scheduling

The third phase, which started in late 2019 and continued into 2020, involved
developing mine production models based on these enhanced tonnage projections
at a range of annual production scenarios that would be consistent with
maintaining an optimised life of mine for the increased total minable volumes.

The capital and operating cost estimates developed earlier were then applied
to these production models to measure their relative financial outcomes
compared to the original Micon Scoping Study base model. These financial
models included not just QME’s detailed operating cost estimates, generated
on a work unit by work unit basis, but also included capital costs both
pre-production and ongoing through production. As these new cases were
developed the outputs were compared to the Scoping Study base case using
various metrics including capital cost, payback period, life of mine, NPV and
IRR. In reviewing the outcomes from these models, it is apparent that some of
the alternatives, particularly those associated with an extended mine life at
the same 1,000 tonnes per day production rate, do not compare favourably with
the Scoping Study base case model. Nevertheless, the financial models
suggested that some of the options where annual throughput is increased, and
where the majority of the available resources across all zones are included,
could generate particularly encouraging results. This third phase is nearing
but not yet at final completion.

As an addition during the third phase, QME looked at the potential of
incorporating an initial small open pit operation on the near surface upper
sections of the White Rock zone ahead of underground mining. The proposed open
cut add-on would appear to be financially beneficial and would provide some
cushion to the underground development programme. The adoption of an open pit
into the final development plan will have to be considered cognisant of
current infrastructure and the likely requirement to seek additional planning
permissions.

Results from QME programmes

The Group considers the QME work to be of great benefit in establishing the
parameters for determining the optimum mine production model. The capital cost
estimates have given support, with a number of adjustments as necessary, to
the estimates made by Micon and Fairport previously. This ‘second set of
eyes’ confirms the previous view that Parys Mountain remains a relatively
low initial capital cost project. The operating cost review again confirms,
with some minor amendments, that the operating costs generated in 2017 remain
generally in line. The benefit of this is that it permits a critical review of
the cut-off grade to be utilised in the production planning exercise. To the
extent that this suggests a lower cut-off would be justifiable, in significant
part, enables a greater tonnage to be made available for mining than would
otherwise not be included. The corollary to this is of course, that the grade
of material mined will be lower than with the prior cut-off grade with the
consequent reduction in Net Smelter Return (NSR) per tonne of ore mined and
treated. The trade-off balance between lower grade and increased tonnage will
need to be evaluated as part of Pre-Feasibility or Full Feasibility Study. 

Increased tonnages available for mining

The Company has long believed that the potential for the Parys Mountain
project was far greater than that developed from the indicated resources only.
It is Anglesey’s opinion that the potentially mineable mineralisation that
has been identified by QME’s work confirms the overall prospectively of the
Parys Mountain project and of the potential for demonstrating five deposits or
zones with combined resources in the range of 10 million tonnes.

Whilst the inclusion of inferred material does not meet the strict criteria
for inclusion into reserve definitions under the applicable codes, and as
generally accepted for feasibility studies by banks for loan evaluation
purposes, it is believed that the QME exercise does give good guidance for
future development planning purposes. It should be noted that the QME work has
not been signed off by a Competent Person, as defined, and as such, specific
financial forecasts arising from it must remain internal to the Group for the
time being.

The inferred resources are targets for future definition drilling and there is
no guarantee that future infill drilling will result in the deposits being
delineated as mineable resources. To bring some if not all of this additional
material to a compliant level will require significant additional exploration,
to be followed by analysis and calculations by a certified Competent Person.
Some of that work can be carried out by surface diamond drilling but would be
more efficiently achieved by drilling from underground locations sited closer
to the target blocks.

Longer Mine Life

Using the lower cut-off QME block models, there is an opportunity to develop a
new mineable model for either the White Rock and Upper Engine zones alone as
per the Micon plan, or extending this to the entire known resource zones by
re-defining the mining shapes and the stoping plan, followed by a new
development plan and schedule. These will require an expansion of the planned
annual treatment rate of 1,000 tonnes per day used in the Micon Scoping Study
model, potentially to 1,500 tonnes per day, particularly as the total
available tonnage increases. To optimise the mine life and dependent upon the
extent of inclusion of the more distant zones, this rate could be increased in
the further expanded case of all zones to perhaps 3,000 tonnes per day. The
projected mine life could then extend from the Scoping Study base case 8 years
through to a range of 12 to 18 years.

Summary and Future Steps

The Directors believe that following completion of the QME exercise, it will
be possible to positively report a total compliant resource figure somewhere
around 10 million tonnes.  From this the mine plan including annual
production rates and life of mine would be significantly enhanced. Importantly
we believe that financial results flowing from such a plan would achieve our
goal of significantly enhancing the project economics indicated by the Scoping
Study Base Case. 

As indicated, QME also reviewed all the capital costs associated with the
various alternative scenarios. This work was based on their particular
experience in mine construction together with some estimates of additional
infrastructure and processing capital cost associated with increased annual
production above the 2017 estimates. While these estimates will require more
detailed review, the Directors feel comfortable that even at the higher level
associated with largest tonnage mined, the forecast costs to put Parys
Mountain into production remain at a level that should be able to be financed
under normal commercial conditions.

We plan to bring all of the QME work into a compliant basis by incorporating
this into an updated Scoping Study or Preliminary Economic Analysis as
appropriate. This work will be carried out by Competent Persons and we look
forward to achieving this during the current financial year. Once that work is
complete, we will be able to publicly report more fully on the financial and
other metrics that make up this exciting project. This will be followed as
soon as practicable, and subject to funding, with a Pre-Feasibility or full
Feasibility study to enable production financing to be achieved.

All of this work, even though it has taken somewhat longer to bring to
conclusion than originally anticipated largely due to the expanded scope that
the ongoing encouraging results dictated, is very important for Anglesey. 
The significantly higher tonnages of material that would be available from
mining beyond that utilised in the Micon Scoping Study will bring a major
change to the way in which the project progresses and to the manner in which
the Company is viewed in the marketplace.

Grangesberg Iron AB

The Grangesberg iron ore project is situated in the mineral rich Bergslagen
district of central Sweden about 200 kilometres north-west of Stockholm. Until
its closure in 1989 due to prevailing market conditions, the Grangesberg mine
had produced in excess of 150 million tonnes of iron ore.

At 31 March 2020 following a small investment in late 2019, the Group holds a
direct 10.0% interest in Grangesberg Iron AB (GIAB) and a right of first
refusal over 50.1% of the share capital of GIAB. This right has been granted
in exchange for the Group continuing to co-manage GIAB on a cost recovery
basis. The Group also has shareholder and cooperation agreements such that it
holds operatorship of GIAB subject to certain conditions and appoints three
out of five directors to the board of GIAB.

GIAB is a private Swedish company founded in 2007 which in 2014 completed
(with assistance from the Group) a financial and capital restructuring. GIAB
holds a 25-year exploitation permit covering the previously mined Grangesberg
underground mining operations granted by the Swedish Mining Inspectorate in
May 2013.

In September 2014 an NI 43-101 Technical Report was prepared by Roscoe Postle
Associates Inc showing a resource estimate for the Grangesberg Mine of 115.2
million tonnes at 40.2% Fe in the indicated category and 33.1 million tonnes
at 45.2% Fe in the inferred category. RPA concluded that the Grängesberg iron
ore deposit hosts a significant iron resource that has excellent potential for
expansion at depth.

The average price for the Platts index for 65% Fe, CFR China ("65% Fe index")
increased 16% to US$104 per tonne in 2019 compared to the average price in
2018 of US$90 per tonne. Demand for the high-quality iron ores remained strong
in the first half of 2020, mainly driven by a combination of seaborne iron ore
supply disruptions and solid demand from China's steel mills despite Covid-19
impacts. The average price for the Platts index for 65% Fe index increased 9%
to US$104 per tonne in the first quarter of 2020 compared to the average price
in the first quarter of 2019 of US$95 per tonne. This rise is continuing into
the third quarter of 2020 and currently spot 65% Fe is quoted at $US126 CFR
Qingdao. Beyond 2020, it is expected that prices may retreat as supplies are
restored, though a significant global economic recovery expected in 2021
should create a supportive price floor for iron ore.

The +67% Fe high-quality product expected to be produced from Grangesberg,
coupled with the previously announced reduced mine life and the increased
level of seismic activity at LKAB’s flagship Kiruna project in northern
Sweden, which is Sweden’s largest iron ore producer, continues to make the
interest in developing the Grangesberg project, albeit at significant capital
cost, more likely and will make Grangesberg more attractive than many other
undeveloped iron ore projects.

Labrador Iron

The Group continues an investment holding of 12% (2019 -12%) in Labrador Iron
Mines Holdings Limited. LIM owns extensive iron ore resources in its
exploration properties in Labrador and in Quebec, Canada, one of the major
iron ore producing regions in the world.

LIM holds measured and indicated DSO mineral resources of approximately 55
million tonnes at an average grade of 56.8% Fe and inferred resources of 5.0
million tonnes at an average grade of 55.6% Fe on its Schefferville Projects.
In addition, LIM holds the Elizabeth Taconite Project, which has an inferred
mineral resource estimate (as at June 15, 2013) of 620 million tonnes at an
average grade of 31.8% Fe.

In the three-year period of 2011 to 2013 LIM produced a total of 3.6 million
dry metric tonnes of iron ore, all of which was sold in 23 cape-size shipments
into the China spot market. LIM has not undertaken mining operations since
2013, primarily due to the low iron ore price environment, but maintains its
properties on a stand-by care and maintenance basis and, subject to securing
financing, is positioned to resume mining operations as soon as economic
conditions warrant.

Other activities

The Directors continue to seek out new properties suitable for development
that would be complementary to or provide synergies with the Group’s
existing projects within the financing capability likely to be available to
the Group. The Directors have identified copper and other VMS projects, and
gold or precious metals, as the most potentially attractive and the Group
continues to evaluate a number of early stage opportunities.

Performance

The Group holds interests in exploration and evaluation properties and, until
economically recoverable reserves can be identified, there are no standardised
performance indicators which can usefully be employed to gauge the performance
of the Group, other than the market price of the Company’s shares.

The chief external factors affecting the ability of the Group to move forward
are primarily the demand for metals and minerals, levels of metal prices and
exchange rates and the market sentiment for investment in mining and mineral
exploration companies. These and other factors are dealt with in the risks and
uncertainties section below.

Section 172 Statement

The Directors, both individually and collectively, believe, in good faith,
that throughout the year they have acted to promote the success of the Group
for the benefit of its members as a whole, as required by Section 172 of the
Companies Act 2006, having regard to the stakeholders and matters set out in
section 172(1) of the Companies Act 2006. The Directors Section 172 Statement
follows.

Section 172 of the Companies Act is contained in the part of the Act which
defines the duties of a director and concerns the “duty to promote the
success of the Company”.

Section 172 adopts an ‘enlightened shareholder value’ approach to the
statutory duties of a company director, so that a director, in fulfilling his
duty to promote the success of the company must act in the way he considers,
in good faith, would be most likely to promote the success of the Company for
the benefit of its members as a whole, and in doing so have regard to other
specified factors insofar as they promote the Company’s interests.

The Board of Anglesey Mining recognises its legal duty to act in good faith
and to promote the success of the Company for the benefit of its shareholders
and with regard to the interests of stakeholders as a whole and having regard
to other matters set out in Section 172. These include the likely consequences
in the long term of any decisions made; the interest of any employees; the
need to foster relationships with all stakeholders; the impact future
operations may have on the environment and local communities; the desire to
maintain a reputation for high standards of business conduct and the need to
act fairly between members of the Company.

The Directors, both individually and collectively, believe, in good faith,
that throughout the year at each and every meeting of the Board, and
management when making every key decision, they have acted to promote the
success of the Company for the benefit of its members as a whole, as required
by Section 172, having regard to the interests of stakeholders and the other
matters set out in Section 172(1) of the Act.

The Board recognises the importance of open and transparent communication with
shareholders and with all stakeholders, including landowners, communities, and
regional and national authorities. We seek to maximise the industry’s
benefits to host communities, while minimising negative impacts to effectively
manage issues of concern to society.

Shareholders have the opportunity to discuss issues and provide feedback at
any time. Further information is available on the Company’s website.

The application of the Section 172 requirements can be demonstrated in
relation to the Group’s operations and activities during the past year as
follows.

Having regard to the likely consequences of any decision in the long term

The Company’s purpose and vision are set out in the Chairman’s Letter and
in the Strategic Report. The Board is committed to the long-term goal of the
development of the Parys Mountain Project and the activities towards that goal
are described and discussed in the Strategic Report. The Board remains mindful
that its strategic decisions have long-term implications for the Parys
Mountain project, and these implications are carefully assessed. The Directors
always consider the likely consequences of any decision in the long-term that
may affect the Group, including key competitive trends, supply and demand of
metals, potential impact on the environment and climate change considerations.

Having regard to the need to foster the Company’s business relationships
with others

The Company operates as a mineral exploration and development business,
without any regular income and is entirely dependent upon new investment from
the financial markets for its continued operation. The Board values the
benefits of maintaining strong relationships with key partners, contractors
and consultants. This is discussed in more detail elsewhere in this Strategic
Report. As a mine development company, the Board understands that a range of
third parties- regulators, contractors, suppliers, and potential customers for
the concentrates that would be produced from a mine at Parys Mountain, are 
relevant to the sustainability of the Company business. .

Having regard to the interests of the Company’s employees

The Group currently has no full-time employees and is managed by its directors
and a small number of associates and sub-contract staff. The Board takes steps
to ensure that the suggestions, views and interests of the Company’s
personnel are considered in decision-making.

Having regard to the desirability of the Company maintaining a reputation for
high standards of business conduct

The Board is committed to high standards of corporate governance, integrity,
and social responsibility and to managing the Company in an honest and ethical
manner, as further discussed in the Corporate Governance Report. The Directors
strive to apply ethical business practices and conduct themselves in a
responsible and transparent manner with the goal of ensuring that Anglesey
Mining plc maintains a reputation for high standards of business conduct and
good governance.

Having regard to the impact of the Company’s operations on the community and
the environment

The Board takes a broad range of stakeholder considerations into account when
making decisions and gives careful consideration any potential impacts on the
local community and the environment.  The Board strives to maintain good
relations with the local community, especially with local businesses in North
Wales. For example, in reviewing various alternative options of the possible
expansion of planned mining operations at Parys Mountain as part of the QME
optimisation studies, the Board considered the impact of such possible
expansion on the local footprint of the property, the potential environmental
impact, the number of employees and the impact on local communities and
businesses. The Corporate Governance Report discusses how the Directors engage
with and have had regard to the community in which the Group operates. 
Further discussion of these activities can be found in the Strategic Report.
As a mine development company, the Board understands that recognising and
having regard to the potential impact the Company’s operations may have on
the community and the environment is essential to underpinning the social
licence to operate. In making decisions about the development of a mine at
Parys Mountain, the Board would seek to maximise the benefits to the local
community, while minimising negative impacts, and effectively manage issues of
concern to society.

Having regard to the need to act fairly as between members of the Company

The Company has only one class of share in issue and all shareholders benefit
from the same rights, as set out in the Articles of Association and as
required by the Companies Act 2006. Since 1996 a Controlling Shareholder
Agreement has been in place with Juno Limited, the largest shareholder, which
provides that Anglesey will maintain an independent board and any transactions
between Juno and Anglesey will be at an arm’s length basis.

The Board recognises its legal and regulatory duties and does not take any
decisions or actions, such as selectively disclosing confidential or inside
information, that would provide any shareholder with any unfair advantage or
position compared to the shareholders as a whole.

Financial results and position

The Group has no revenues from the operation of its properties. The loss for
the year ended 31 March 2020 after tax was £304,510 compared to a loss of
£234,621 in the 2019 fiscal year. The administrative and other costs
excluding investment income and finance charges were £134,796 compared to
£75,538 in the previous year.

During the year there were no additions to fixed assets (2019 - nil) and
£49,835 (2019 - £54,747) was capitalised in respect of the Parys Mountain
property as mineral property exploration and evaluation.

At 31 March 2020 the Group held mineral property exploration and evaluation
assets with a carrying value of £15.2 million. These carrying values are
supported by the results of the 2017 Scoping Study and subsequent further work
and may not reflect the realizable value of the properties if they were
offered for sale at this time.

At the reporting date, the directors assessed the carrying value of the Parys
Mountain exploration and evaluation assets to determine whether specific facts
and circumstances suggest there is any indication of impairment. They
carefully considered the following matters among others: (i) that the Group
has freehold title to its mineral resources; (ii) is planning and carrying out
their development, which has recently resulted in favourable indications of
increased mineral tonnages being available; and (iii) their confidence in the
financial benefits of the Parys Mountain project. They also considered that
the effect of Covid-19 on these plans and estimations, if any, was likely to
be short term relative to the life of the project. Consequently the Directors
concluded that any facts and circumstances which might trigger an impairment
review have not materially changed during the year and that there are no
indicators of impairment.

The Group’s cash balance at 31 March 2020 was £95,311 (2019 - £6,012) the
increase being due to a loan of £100,000 received from Juno Limited in April
2019 and a placement for cash of new shares in May 2019 resulting in an inflow
after fees of £180,000.

Subsequent to the period end, on 24 August 2020 the Company made a private
placing of 12,500,000 new ordinary shares at 1.6 pence per share, to raise a
total of £200,000 gross, together with 12,500,000 warrants with a term of 12
months to subscribe for new ordinary shares at an exercise price of 1.8p per
share that if exercised could raise an additional £225,000. This will be used
for work on the Parys Mountain project, as well as for general corporate
purposes.

At 31 March 2020 there were 186,975,732 ordinary shares in issue (2019 -
177,608,051), the increase being due to the placing in April 2019. At 25
September 2020 there were 199,475,732 ordinary shares in issue following the
placing on 24 August 2020.

The Group’s use of financial instruments is described in note 23.

Employment, community and donations

The Group is an equal opportunity employer in all respects and aims for high
standards from and for its employees. At 31 March 2020 the Company had four
male directors who were the only employees; there were no female directors. It
also aims to be a valued and responsible member of the communities that it
operates in or affects. The Group’s policies on these matters is further
discussed in the Report on Corporate Governance. There are no social,
community or human rights issues which require the provision of further
information in this report.

Environment and greenhouse gas emissions

The Group currently has no operations and consequently its effect on the
environment is very slight, being limited to the usage of two small offices,
where recycling and energy usage minimisation are encouraged. The Group does
not itself undertake any activities or processes which lead to the production
of greenhouse gases. The extent to which its administrative and management
functions result in greenhouse gas emissions is impracticable to estimate and
in any event less than the amount reportable under the Energy and Carbon
Regulations 2018.

Risks and uncertainties

The Directors have carried out an assessment of the principal risks facing the
Group, including those that would threaten its business model, future
performance, solvency or liquidity. In conducting its business, the Group
faces a number of risks and uncertainties, the more significant of which are
described below. The board believes the principal risks facing the Group are
adequately disclosed in this annual report and that there are no other risks
of comparable magnitude which need to be disclosed. Mineral exploration and
mine development is a high-risk speculative business and the ultimate success
of Anglesey Mining will be dependent on the successful development of a mine
at Parys Mountain, which is subject to numerous significant risks most of
which  are outside the control of the Board.

The global spread of the contagious coronavirus disease, causing the outbreak
of Covid-19 respiratory illness was declared a pandemic by the World Health
Organization on March 11, 2020. The Covid-19 pandemic has adversely affected
the economies and financial markets of many countries, resulting in an
economic and financial downturn that is presenting unprecedented challenges to
individual health, communities, jobs, businesses and economies, and
specifically to public companies, shareholders and investors. Although the
pandemic has no direct impact on the Parys Mountain property and is not
expected to affect its ongoing exploration and development, the Group relies
on equity financing to generate additional financial resources to fund its
working capital requirements and to fund its planned programmes. The pandemic
has adversely affected financial markets and investor interest in public
companies that could affect the Group’s ability to finance its operations.
The Group cannot predict the impact of Covid-19, including uncertainties
relating to the duration of the outbreak, and the length of travel and
quarantine restrictions imposed by governments.

In reviewing the risks facing the Group, the Board considers it is
sufficiently close to the Group’s operations and aware of its activities to
be able to adequately monitor risk without the establishment of any formal
process. The Group may become subject to risks against which it cannot insure
or against which it may elect not to insure because of high premium costs or
other reasons. However, there are also risks and uncertainties of a nature
common to all mineral projects and these are summarised below.

General mining risks

Actual results relating to, amongst other things, mineral reserves, mineral
resources, results of exploration, capital costs, mining production costs and
reclamation and post closure costs, could differ materially from those
currently anticipated by reason of factors such as changes in general economic
conditions and conditions in the financial markets, changes in demand and
prices for minerals that the Group expects to produce, legislative,
environmental and other judicial, regulatory, political and competitive
developments in areas in which the Group operates, technological and
operational difficulties encountered in connection with the Group’s
activities, labour relations, costs and changing foreign exchange rates and
other matters.

The mining industry is competitive in all of its phases. There is competition
within the mining industry for the discovery and acquisition of properties
considered to have commercial potential. The Group faces competition from
other mining companies in connection with the acquisition of properties,
mineral claims, leases and other mineral interests, should it seek to pursue
such opportunities, as well as for the recruitment and retention of qualified
employees and other personnel and in attracting investment and or potential
joint venture partners to its properties.

Development and liquidity risk

The going concern risk is discussed in detail in the Directors report. The
Group has relied on equity financing to fund its working capital requirements
and will need to generate additional financial resources to fund future
planned exploration programmes.

On previous occasions and during the year the Group has relied upon its
largest shareholder, Juno Limited, for financial support and may be required
to do so in the future to ensure the Group will have adequate funds for its
current activities. In the absence of support from Juno Limited the Group
would be dependent on the proceeds of share issues or other sources of
funding. Developing the Parys project will be dependent on raising further
funds from various sources.

There is no assurance that the Group will continue to obtain additional
financial resources and/or achieve positive cash flows or profitability.

Exploration and development

Exploration for minerals and development of mining operations involve risks,
many of which are outside the Group’s control. Exploration by its nature is
subject to uncertainties and unforeseen or unwanted results are always
possible. Mineral exploration and development is a speculative business,
characterized by a number of significant risks including, among other things,
unprofitable efforts resulting not only from the failure to discover mineral
deposits but also from finding mineral deposits that, though present, are
insufficient in quantity and quality to return a profit from production.

Substantial expenditures are required to develop the mining and processing
facilities and infrastructure at any mine site. No assurance can be given that
a mineral deposit can be developed to justify commercial operations or that
funds required for development can be obtained on a timely basis and at an
acceptable cost. There can be no assurance that the Group’s current
development programmes will result in profitable mining operations. Current
operations are in politically stable environments and hence unlikely to be
subject to expropriation but exploration by its nature is subject to
uncertainties and unforeseen or unwanted results are always possible.

Metal prices

The prices of metals fluctuate widely and are affected by many factors outside
the Group’s control. The relative prices of metals and future expectations
for such prices have a significant impact on the market sentiment for
investment in mining and mineral exploration companies. Metal price
fluctuations may be either exacerbated or mitigated by currency fluctuations
which affect the amount which might be received by the Group in sterling.

Foreign exchange

LIM is a Canadian company; Angmag AB and GIAB are Swedish companies.
Accordingly, the value of the Group’s holdings in these companies is
affected by exchange rate risks. Operations at Parys Mountain are in the UK
and exchange rate risks are minor. Most of the cash balance at the year-end
was held in sterling – see notes 17 and 24.

Permitting, environment, climate change and social

The Group holds planning permissions for the development of the Parys Mountain
property, but further environmental studies and assessments and various
approvals and consents will be required to carry out proposed activities and
these may be subject to various operational conditions and reclamation
requirements.

Employee and personnel

The Group is dependent on the services of a small number of key executives
specifically the chairman, chief executive and finance director. The loss of
these persons or the Group’s inability to attract and retain additional
highly skilled and experienced employees for any areas in which the Group
might engage may adversely affect its business or future operations. A
discussion on the composition and assessment of the Board of Directors is
included in the Report on Corporate Governance.

Brexit

The Directors believe that the effect on the specific operations of the Group
of the UK leaving the European Union is unlikely to be material and the
resultant expected focus on domestic investment in the UK may be beneficial to
the Group’s Parys Mountain Project.

Covid-19

The Chairman’s statement refers to the effects of the widespread global
outbreak of respiratory illness caused by Covid-19. The Company cannot
accurately predict the impact Covid-19 will have on its operations, including
uncertainties relating to the severity of the disease, the duration of the
outbreak, and the length of travel and quarantine restrictions imposed by
governments. In addition, Covid-19 has resulted in a widespread health crisis
that has adversely affect economies and financial markets that could further
affect the Company’s ability to finance its operations.

The Directors have carefully considered the impact of the Covid-19 pandemic on
the Parys Mountain property and have concluded that to date it has had no
impact on the project and further it is unlikely to have, assuming that the
pandemic does not get any worse and passes over in the next two to three
years. The project is not currently in production, so Covid-19 does not impact
current operations. 

Although the pandemic has no direct impact on the Parys Mountain property and
is not expected to affect its ongoing exploration and development, the Company
relies on equity financing to generate additional financial resources to fund
its working capital requirements and to fund the planned programmes.

Initially, the pandemic adversely affected financial markets and investor
interest and initially, the economic impacts of the pandemic also had a
significant negative effect on demand for metals and on metal prices. Metal
prices, and by extension the level of investor interest in the mining
industry, impact Anglesey’s ability to finance its projects. Paradoxically,
in the face of Covid-19, the fundamental medium to long term outlook for all
base metals, particularly in the time frame and for the metals that would be
mined at Parys Mountain, is very positive.

Company Prospects

The Directors recognise that the company does not have any sales or generate
any revenue and that the continuing operations of the Group are entirely
dependent upon its ability to raise adequate financing. The Company has
operated for more than 30 years, in what at times have been challenging
economic and investment climates and has continued to attract the necessary
investment to continue as a going concern.

Looking to the period beyond the twelve months covered by current cash
resources, the Directors rely upon this experience and particularly upon the
potential of the mineral assets on which the Company is founded.  These
mineral resources are held largely as freehold and cannot be diminished by any
act of nature. Given this permanency, both legally and geologically, the
directors believe that future funding will be found at least for the medium
term of two years from the balance sheet date to support the ongoing
maintenance and operation of the Parys Mountain property.  In making this
assessment the Directors have substantially relied on the key assumption that
the underlying cost of maintenance and operation of the Company will not
change, that the Company does not have any unrecognised liabilities that will
become due and their experience of being able to raise additional investment
as and when required over the last 30 years.  Nevertheless, there is a risk
that additional funding may not be available on a timely basis or on
acceptable terms to move the Parys Mountain project through to its full
potential.

Based on the optimisation work completed by QME as described above, the
Directors are confident that a revised  mine plan, to be confirmed by a
Preliminary Economic Assessment, is likely to transform the development
prospects of Parys Mountain into a project that should attract keen interest
amongst financiers, metal traders, smelters and particularly other and larger
mining companies.

The mining industry is characterised by cyclical metal prices and is impacted
every year by changing commodity prices. As has been the case with all
commodities, the Covid-19 pandemic caused a dramatic drop in the price of zinc
in 2020. During the first quarter, LME zinc prices declined 12% over the
previous quarter, a reduction of 21% over the same quarter in 2019. The
decline in LME zinc prices combined with higher treatment charges for zinc
concentrates put global zinc mine production under pressure with high cost
mines struggling to maintain margins. However, this downturn has been
significantly reversed and by the end of August the LME zinc price at US$2,513
per tonne has recovered 44% from its March low of US$1,744/t.  

All other metals have recorded similar recoveries and we continue to witness a
growing strength in the financing markets for mineral projects and for mineral
companies.  Indeed, in late August, the Company has been able to raise new
equity funds in the market.

In considering metal prices it is essential to look at the whole suite of
metals that comprise the cashflow that would be generated at Parys Mountain.
While at the present time lead and zinc prices are somewhat below the levels
used in the Scoping Study, copper, gold, and silver are higher. As time
progresses there will always be variations in the composition of the suite and
no one metal can truly be considered in isolation from the suite as an
entirety. This is one of the attributes and advantages of a polymetallic
deposit such as Parys Mountain.

While it remains unclear how long the current Covid-19 induced economic
slowdown will last, most observers expect prices to continue the rebound.
Near-term support for prices is expected to come from a gradual recovery in
demand for zinc from the steel sector as mills ramp up production. China
accounts for about half the global demand for zinc. Economic stimulus measures
already announced in China taken together with stimulus packages elsewhere
bode well for a boost in demand for steel from key sectors such as
construction and manufacturing which will in turn boost demand for zinc and
lead and result in higher prices. In particular, the outlook for copper looks
bright because of its use in electric vehicles, clean power plants and
transmission lines, along with its antimicrobial properties that are
attracting attention during the pandemic. Lead is in demand for large battery
storage and electric bicycles, particularly in China.

Mines have a limited life span and the supply of metal will decline unless new
mines are put into production. Investment in new mines will only take place if
companies believe that future metal prices will make investment profitable.
The Directors, who all have had very significant experience in the base metals
markets through many metal price cycles, believe that a significant upward
re-adjustment in metal prices is inevitable because the industry has not been
investing in any significant levels of exploration in recent years while
demand for metals continues to steadily grow. Investment in new mines will
only take place if companies believe that future metal prices will make
investment profitable.

This report was approved by the board of Directors on 25 September 2020 and
signed on its behalf by:

Bill Hooley

Chief Executive Officer    

Directors’ Report

The Directors are pleased to submit their report and the audited accounts for
the year ended 31 March 2020.

The Corporate Governance statement which follows forms part of this report.
The principal activities of the Group and other information are set out in the
strategic report section preceding this report. Certain matters relating to
financial performance, risk exposure and management, and future developments
which are required to be disclosed in the Directors report have instead been
included within the strategic report.

Directors

The names of the Directors are shown in the Directors’ remuneration report
and biographical details are shown on the inside rear cover. All Directors
remain in office. It is the Company’s procedure to submit re-election
resolutions for all Directors at the annual general meeting. The Company
maintains a directors’ and officers’ liability policy on normal commercial
terms which includes third party indemnity provisions. The powers of the
Directors are described in the Corporate Governance Report.

With regard to the appointment and replacement of directors, the Company is
governed by its Articles, the Corporate Governance Code (the 2018 revision is
in effect for the first time this year), the Companies Act and related
legislation. The Articles themselves may be amended by special resolution of
the shareholders. Under the Articles, any director appointed by the board
during the year must retire at the AGM following his appointment. In addition,
the Articles require that one-third of the remaining directors retire by
rotation at each general meeting and seek re-appointment. However, it is now
the Company’s practice to submit re-election resolutions for all directors
at each AGM.

Directors’ interests in material contracts

Juno Limited (Juno), which is registered in Bermuda, holds 31.0% of the
Company’s ordinary share capital. The Company has a controlling shareholder
agreement and working capital agreement with Juno and note 19 sets out
movements under this working capital agreement. £100,000 was advanced on 2
April 2019. Apart from any advances and interest charges there were no
transactions between the Group and Juno or its group during the year. An
independent committee reviews and approves any transactions and potential
transactions with Juno. Danesh Varma is a director and, through his family
interests, a significant shareholder of Juno.

Bill Hooley and Danesh Varma are directors of Grangesberg Iron AB and of the
special purpose vehicle Eurmag AB. Danesh Varma has been associated with the
Grangesberg project since 2007 when he became a director of Mikula Mining
Limited, a company subsequently renamed Eurang Limited, previously involved in
the Grangesberg project. He did not take part in the decision to enter into
the Grangesberg project when this was approved by the board. The Group has a
liability to Eurmag AB, a subsidiary of Eurang, amounting to £321,105 at the
year-end (2019 – £300,087). See also note 24.

There are no other contracts of significance in which any Director has or had
during the year a material interest.

Substantial shareholders

At 14 September 2020 the following shareholder had advised the Company of an
interest in the issued ordinary share capital:
Juno Limited notified an interest in 57,924,248 shares representing 29% of the
issued ordinary shares.

Shares

Allotment authorities and disapplication of pre-emption rights

The Directors would usually wish to allot any new share capital on a
pre-emptive basis, however in the light of the Group’s potential requirement
to raise further funds for the acquisition of new mineral ventures, other
activities and working capital, they believe that it is appropriate to have a
larger amount available for issue at their discretion without pre-emption than
is normal or recommended for larger listed companies. At a general meeting to
be held on 30 October 2020, the Directors will seek a renewal and replacement
of the Company's existing share allotment authorities.

The authority sought in resolution 4 of the meeting is to enable the Directors
to allot new shares and grant rights to subscribe for, or convert other
securities into shares, up to a nominal value of £660,000 (66,000,000
ordinary shares) which is approximately one third of the total issued ordinary
share capital at 14 September 2020. The Directors will consider issuing shares
if they believe it would be appropriate to do so in respect of business
opportunities that arise consistent with the Group's strategic objectives. The
Directors have no present intention of exercising this general authority,
other than in connection with the potential issue of shares pursuant to the
employee share and incentive plans.

The purpose of resolution 5 is to authorise the Directors to allot new shares
pursuant to the general authority given by resolution 4 in connection with a
pre-emptive offer or offers to holders of other equity securities if required
by the rights of those securities or as the board otherwise considers
necessary, or otherwise up to an aggregate nominal amount of £498,000
(49,800,000 ordinary shares). This aggregate nominal amount represents
approximately 25% of the issued ordinary share capital at 14 September 2020.
Whilst such authority is in excess of the 5% of existing issued ordinary share
capital which is commonly accepted and recommended for larger listed
companies, it will provide additional flexibility which the Directors believe
is in the best interests of the Group in its present circumstances. This
authority will expire on 31 December 2021. The Directors intend to seek
renewal of this authority at future annual general meetings.

Rights and obligations attached to shares

The rights and obligations attached to the ordinary and deferred shares are
set out in the Articles of Association. Details of the issued share capital
are shown in note 21. Details of employee share schemes are set out in the
Directors’ remuneration report and in note 21.

Each ordinary share carries the right to one vote at general meetings of the
Company. Holders of deferred shares, which are of negligible value, are not
entitled to attend, speak or vote at any general meeting of the Company, nor
are they entitled to receive notice of general meetings.

Subject to the provisions of the Companies Act 2006, the rights attached to
any class may be varied with the consent of the holders of three-quarters in
nominal value of the issued shares of the class or with the sanction of an
extraordinary resolution passed at a separate general meeting of the holders
of the shares of the class. There are no restrictions on the transfer of the
Company’s shares.

Voting rights

Votes may be exercised at general meetings in relation to the business being
transacted either in person, by proxy or, in relation to corporate members, by
corporate representative. The Articles provide that forms of proxy shall be
submitted not less than 48 hours (excluding any part of a day that is not a
working day) before the time appointed for holding the meeting or adjourned
meeting.

No member shall be entitled to vote at any meeting unless all monies presently
payable in respect of their shares have been paid. Furthermore, no member
shall be entitled to attend or vote at any meeting if he has been served with
a notice after failing to provide the Company with information concerning
interests in his shares.

Significant agreements and change of control

There are no agreements between the Company and its directors or employees
that provide for compensation for loss of office or employment that may occur
because of a takeover bid. The Company’s share plans contain provisions
relating to a change of control. Outstanding awards and options would normally
vest and become exercisable on a change of control, subject to the
satisfaction of any performance conditions.

Dividend

The Group has no revenues and the Directors are unable to recommend a dividend
(2019 – nil).

Going concern and Company prospects

The Directors have considered the business activities of the Group as well as
its principal risks and uncertainties as set out in this report. When doing so
they have carefully applied the guidance given in the ‘Guidance on Risk
Management, Internal Control and Related Financial and Business Reporting’
issued in September 2014.

The financial statements are prepared on a going concern basis. The validity
of the going concern basis is dependent on finance being available for the
continuing working capital requirements of the Group for the foreseeable
future, being a period of at least twelve months from the date of approval of
the accounts. Based on the current cash reserves and the committed support of
Juno, the Group has sufficient finance available for the continuing working
capital requirements of the Group on a status quo basis for at least twelve
months from the date of the financial statements.

The Group will need to generate additional financial resources to meet its
planned business objectives, progress the ongoing development of the Parys
Mountain project and continue as a going concern. The plans to phase the
development of the project by undertaking the various optimisation programmes
and completing a prefeasibility or feasibility study to progress the Parys
Mountain Mine towards production require interim funding to finance the
further studies and optimisation programmes and, in the longer term, senior
financing to fund the capital and development costs to put the Parys Mountain
Mine into production.

The Group has relied primarily on equity financings and its largest
shareholder Juno Limited to fund its working capital requirements and may be
required to do so in the future to ensure the Group will have adequate funds
for its current activities and to continue as a going concern.

The Directors are actively pursuing various financing options with certain
shareholders and financial institutions regarding proposals for financing and
are in discussions with a range of investors, including private equity funds.
Whilst these discussions continue the Directors have reasonable expectations
that these financing discussions will be successful and therefore the
financial statements have been prepared on the going concern basis.

However, given the limited financial resources currently available, and that
there is no guarantee that such funding will be available, there is a risk
that the Group will not have sufficient financial resources to fund its
short-term project funding requirements, and therefore there exists a material
uncertainty concerning the ability of the Group and the Company to continue as
a going concern or that the Group will be successful in raising the necessary
investment to advance the development of the project and put a mine at the
Parys Mountain property into production.

Report on payments to governments

The Group is required to disclose payments made to governments in countries
where exploration or extraction activities are undertaken and hereby reports
that any such payments made in the year were below the minimum disclosable
level.

Post balance sheet events

Subsequent to the period end, on 24 August 2020 the Company made a private
placing of 12,500,000 new ordinary shares at 1.6 pence per share, to raise a
total of £200,000 gross, together with 12,500,000 warrants with a term of 12
months to subscribe for new ordinary shares at an exercise price of 1.8p per
share that if exercised could raise an additional £225,000.

Statement of directors’ responsibilities

The Directors are responsible for preparing the annual report and the
financial statements. The Directors are required to prepare the financial
statements for the Group in accordance with International Financial Reporting
Standards as adopted by the European Union (“IFRS”) and have also elected
to prepare financial statements for the Company in accordance with IFRS.
Company law requires the directors to prepare group and parent company
financial statements for each financial year. Under that law they are required
to prepare the financial statements in accordance with IFRS, the Companies Act
2006 and, in relation to the Group financial statements, Article 4 of the IAS
Regulation.

Under company law the directors must not approve the financial statements
unless they are satisfied that they give a true and fair view of the state of
affairs of the group and parent company financial statements and of their
profit and loss for that period.

In preparing the financial statements the directors are required to:
* select suitable accounting policies and then apply them consistently;
* make judgements and estimates that are reasonable and prudent;
* state that the financial statements comply with IFRSs as adopted by the
European Union; and
* prepare the financial statements on the going concern basis unless it is
inappropriate to presume that the Group and the parent Company will continue
in business.
The Directors confirm that they consider the annual report and accounts, taken
as a whole, are fair, balanced and understandable and provide the information
necessary for shareholders to assess the Company and Group’s performance,
business model and strategy.

The Directors are responsible for keeping adequate accounting records that are
sufficient to show and explain the parent Company’s transactions and
disclose with reasonable accuracy at any time the financial position of the
parent Company and the Group and enable them to ensure that the financial
statements comply with the Companies Act 2006. They are also responsible for
safeguarding the assets of the parent Company and the Group and hence for
taking reasonable steps for the prevention and detection of fraud and other
irregularities.

Under applicable law and regulations, the Directors are also responsible for
preparing a Strategic Report, Directors’ Report, Section 172 Statement,
Remuneration Report and Corporate Governance Statement that comply with that
law and those regulations.  The Directors Section 172 Statement which
describes how the Directors have had regard to the matters set out in section
172(1) (a) to (f) when performing their duty under section 172 follows this
Directors’ Report below.

The Directors are responsible for the maintenance and integrity of the Group
website. Legislation in the United Kingdom governing the preparation and
dissemination of financial statements may differ from legislation in other
jurisdictions.

Each of the Directors, whose names and functions are listed on the inside rear
cover, confirm that, to the best of their knowledge:
* the Group financial statements, which have been prepared in accordance with
IFRSs as adopted by the EU, give a true and fair view of the assets,
liabilities, financial position and loss of the Group; and
* the Strategic and Directors’ Reports include a fair review of the
development and performance of the business and the position of the Group,
together with a description of the principal risks and uncertainties that it
faces.
Auditor

Each of the Directors in office at the date of approval of the annual report
confirms that so far as they are aware there is no relevant audit information
of which the Company’s auditor is unaware. Each Director has taken all of
the steps which they ought to have taken as a director in order to make
themselves aware of that information and to establish that the Company’s
auditor is aware of that information. This confirmation is given and should be
interpreted in accordance with the provisions of s418 of the Companies Act
2006.

This report was approved by the board of directors on 25 September 2020 and
signed on its behalf by:

Danesh Varma

Company Secretary

Audit Committee Report

The audit committee comprises Howard Miller and, until 5 September 2019, David
Lean. Both members of the committee have extensive mineral industry experience
and the necessary recent and relevant experience required by the Code. The
committee’s terms of reference have been approved by the board and follow
published guidelines. The audit committee’s primary responsibilities are to
establish and monitor the Group’s financial risk management systems with
particular reference to internal control systems and to ensure that the
Group’s financial statements and other financial communications are properly
prepared.

Financial statements and internal control

The audit committee reviews the half-yearly and annual accounts before they
are presented to the board, focusing in particular on accounting policies and
areas of management judgement and estimation. The committee ensures that the
judgements made in applying accounting policies and key sources of estimation
uncertainty are properly set out at the end of note 2 to the accounts and has
nothing further to report in respect of them. The committee is responsible for
monitoring the controls which are in force to ensure the information reported
to the shareholders is accurate and complete. It also discusses and considers
internal control and risk management issues and contributes to the board’s
review of the effectiveness of the Group’s internal control and risk
management systems and to the disclosure and explanation of the risks faced by
the Group. These are set out in the strategic report.

The audit committee meets with the external auditors to review the planning of
their audit and, before approving the financial statements, to discuss any
issues which arise from the audit

The committee notes that the consolidation schedules have been prepared under
the direction of the finance director and is satisfied that no further
internal controls over this process are required.

Internal and external audits

The committee considers the need for an internal audit function, which it
believes is not required at present due to the limited staff and operations of
the Group. The committee is available should any personnel wish to make
representations to the committee  about the conduct of the affairs of the
Group.

The committee advises the board on the appointment of external auditors and on
their remuneration for both audit and non-audit work and discusses the nature,
scope and effectiveness of the audit with the external auditor with whom it
meets formally at least once a year. The committee also reviews the
effectiveness of the external audit by enquiries and discussions with the
Group staff involved in the audit and with the finance director.

The audit committee also undertakes a formal assessment of the auditor’s
independence each year which includes: a review of any non-audit services
provided to the Group; discussion with the auditor of all relationships with
the Company and any other parties that could affect independence or the
perception of independence; a review of the auditor’s own procedures for
ensuring the independence of the audit firm and partners and staff involved in
the audit, including the regular rotation of the audit partner; and obtaining
written confirmation from the auditor that, in his professional judgement, he
is independent. An analysis of the fee payable to the external audit firm in
respect of both audit and non-audit services during the year is set out in
note 4 to the financial statements.

Mazars were originally appointed as auditors in 2008 after a tendering process
involving four firms. In 2018 a further tendering process involved three firms
including Mazars and the result of it was that Mazars were reappointed.

Howard Miller

Audit committee chair

25 September 2020

Independent auditor’s report to the members of Anglesey Mining plc

Opinion

We have audited the financial statements of Anglesey Mining plc (the ‘parent
company’) and its subsidiaries (the ‘group’) for the year ended 31 March
2020 which comprise the Group Income Statement, the Group Statement of
Comprehensive Income, the Group Statement of Financial Position, the Company
Statement of Financial Position, the Group and Company Statements of Changes
in Equity, the Group Statement of Cash Flows, the Company Statement of Cash
Flows and notes to the financial statements, including a summary of
significant accounting policies. The financial reporting framework that has
been applied in their preparation is applicable law and International
Financial Reporting Standards (IFRSs) as adopted by the European Union and, as
regards the parent company financial statements, as applied in accordance with
the provisions of the Companies Act 2006.

In our opinion:
* the financial statements give a true and fair view of the state of the
group’s and of the parent company’s affairs as at 31 March 2020 and of the
group’s loss for the year then ended;
* the group financial statements have been properly prepared in accordance
with IFRSs as adopted by the European Union;
* the parent company financial statements have been properly prepared in
accordance with IFRSs as adopted by the European Union and as applied in
accordance with the provisions of the Companies Act 2006; and
* the financial statements have been prepared in accordance with the
requirements of the Companies Act 2006 and, as regards the group financial
statements, Article 4 of the IAS regulation.
Basis for opinion

We conducted our audit in accordance with International Standards on Auditing
(UK) (ISAs (UK)) and applicable law. Our responsibilities under those
standards are further described in the ‘Auditor’s responsibilities for the
audit of the financial statements’ section of our report. We are independent
of the company in accordance with the ethical requirements that are relevant
to our audit of the financial statements in the UK, including the FRC’s
Ethical Standard as applied to public interest entities and listed entities,
and we have fulfilled our other ethical responsibilities in accordance with
these requirements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.

Material uncertainty related to going concern

We draw attention to Note 2 in the financial statements concerning the
applicability of the going concern basis of preparation.  As detailed in the
financial statements and the Strategic Report, the group and the parent
company are not generating revenue and are in the process of getting the Parys
Mountain mining project ready to move into development. Its business model
requires generation of additional financial resources to progress the ongoing
development of the Parys Mountain project. 

At 31 March 2020 the group and parent company had net current assets of £29k
and £47k respectively and cash and cash equivalent reserves of £95k and
£93k. Subsequent to the year end, the group issued further shares with gross
proceeds of £200k. The group therefore has sufficient resources to support
its continuing working capital requirements on a status quo basis for at least
twelve months from the date of the financial statements. In Note 2, the
directors explain that the group needs to generate additional financial
resources to meet its planned business objectives and to progress the
development of the Parys Mountain project. The directors are actively pursuing
various financing options and they are confident that the group will raise the
additional funding when required. Therefore, the financial statements have
been prepared on a going concern basis.

However, as described in Note 2, the directors recognise that the continuing
operations of the group are dependent upon its ability to raise adequate
financing and that there is a risk that additional funding may not be
available on a timely basis or on acceptable terms. Given the limited
financial resources currently available, until the group secures sufficient
investment for short-term funds required for the additional studies and
ultimately for the production phase in the longer term, the current level of
resources may not be sufficient to finance short-term project needs.
Therefore, a material uncertainty exists that may cast a significant doubt on
the group’s and the parent company’s ability to continue as a going
concern.

Our opinion is not modified in respect of this matter.

Conclusions relating to principal risks, going concern and company prospects

Other than as above under ‘Material uncertainty related to going concern’,
we have nothing to report in respect of the following information in the
annual report, in relation to which the ISAs (UK) require us to report to you
whether we have anything material to add or draw attention to:
* the disclosures in the annual report set out on pages 11 and 12 that
describe the principal risks and explain how they are being managed or
mitigated;
* the directors’ confirmation set out on page 11 in the annual report that
they have carried out a robust assessment of the principal risks facing the
group, including those that would threaten its business model, future
performance, solvency or liquidity;
* the directors’ statement set out on page 15 in the financial statements
about whether the directors considered it appropriate to adopt the going
concern basis of accounting in preparing the financial statements and the
directors’ identification of any material uncertainties to the group and the
parent company’s ability to continue to do so over a period of at least
twelve months from the date of approval of the financial statements;
* whether the directors’ statement relating to going concern required under
the Listing Rules in accordance with Listing Rule 9.8.6R(3) is materially
inconsistent with our knowledge obtained in the audit; or
* the directors’ explanation set out on pages 12 and 13 in the annual report
as to how they have assessed the prospects of the group, over what period they
have done so and why they consider that period to be appropriate, and their
statement as to whether they have a reasonable expectation that the group will
be able to continue in operation and meet its liabilities as they fall due
over the period of their assessment, including any related disclosures drawing
attention to any necessary qualifications or assumptions.
Key audit matters

Key audit matters are those matters that, in our professional judgement, were
of most significance in our audit of the financial statements of the current
period and include the most significant assessed risks of material
misstatement (whether or not due to fraud) we identified, including those
which had the greatest effect on: the overall audit strategy; the allocation
of resources in the audit; and directing the efforts of the engagement team.
These matters were addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.

In addition to the matter described in the ‘Material uncertainty related to
going concern’ section, we summarise below other key audit matters in
forming our audit opinion above, together with an overview of the principal
audit procedures performed to address each matter and, where relevant, key
observations arising from those procedures.

These matters, together with our findings, were communicated to those charged
with governance through our Audit Completion Report.

 Key audit matter                                                                                                                                                                                                                                                Our response                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
 Impairment of exploration and evaluation asset (group) The group’s accounting policy in respect of its exploration and evaluation asset is set out under “mineral property exploration and evaluation costs” and its accounting policy in respect of impairment Our audit procedures included, but were not limited to:  Key observations Based on the work performed, no impairment indicators in relation to the exploration and evaluation asset were noted.                                                                                                                                                                                                                                                                                                                           
 is set out under “impairment of tangible and intangible assets” in Note 2 to the financial statements. The group has held rights to explore and mine the Parys Mountain site for many years and has completed a number of geological and technical studies,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
 including a further scoping study in 2017 reaffirming the potential of the property. As indicated in that study report, further studies were recommended to optimise and enhance the project ahead of development, some of which are currently underway. There                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
 is a risk that accounting criteria associated with the capitalisation of exploration and evaluation expenditure may no longer be appropriate and that the carrying value may exceed the recoverable amount. An assessment of the recoverable amount is highly                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
 judgemental, and is based on a combination of independent expert studies and the directors’ assessment of the estimated mineral deposits and the geological potential thereof, projected capital and operating costs associated with mineral extraction and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
 sale, long term commodity metal prices, discount rates, exchange rate factors and the group’s ability to raise finance.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
 Impairment of investment in subsidiary (parent company) The group’s accounting policies in respect of investments and impairment of investments are set out under “investments” and “impairment of investments” in Note 2 to the financial statements.  The cost Given that the same exploration and evaluation asset supports the intangible at group level and the investment at parent company level, it’s reasonable to conclude that the same impairment assessment documented in the key audit matter above is also applicable to this key audit matter.  In that context, our audit procedures included, but were not limited to:    Key observations Based on the work performed, no impairment indicators in relation to the investment in subsidiary undertakings were noted.    
 of the investment and loan due from the subsidiary, Parys Mountain Mines Limited, held in the company statement of financial position, is supported by the recovery of the exploration and evaluation asset following the development of the Parys Mountain                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
 project held by Parys Mountain Mines Limited.  If there were impairment in the exploration and evaluation asset included above, this would have a direct impact on the carrying value of the investment and the loan due from the subsidiary.  Under the                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
 accounting policy, investments are held at cost less accumulated impairments. Therefore, there is a risk that the investment in subsidiary undertaking is impaired as a result of indicators within the underlying assets of the subsidiary, namely the                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
 exploration and evaluation asset discussed above.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         

Our application of materiality

The scope of our audit was influenced by our application of materiality. We
set certain quantitative thresholds for materiality. These, together with
qualitative considerations, helped us to determine the scope of our audit and
the nature, timing and extent of our audit procedures on the individual
financial statement line items and disclosures and in evaluating the effect of
misstatements, both individually and on the financial statements as a whole.
Based on our professional judgement, we determined materiality for the
financial statements as a whole as follows:

Group

 Overall materiality                             £349,000                                                                                                                                                                                                                                       
 How we determined it                            3% of group’s net assets                                                                                                                                                                                                                       
 Rationale for benchmark applied                 Group’s net assets represents shareholders’ funds and we have determined it to be the principal benchmark within the financial statements relevant to shareholders, as the group does not generate revenue and is in pre-production phase      
 Performance materiality & specific materiality  Performance materiality is set as 75% of overall materiality, being £262,000 Specific materiality of £105,000 is used for the audit of the group income statement                                                                              
 Reporting threshold                             3% of overall materiality being £10,000                                                                                                                                                                                                        

Parent company

 Overall materiality              £215,000                                                                                                                    
 How we determined it             2% of parent company’s net assets                                                                                           
 Rationale for benchmark applied  Net assets is considered most appropriate as the parent company is non-trading and mainly holds investment in subsidiaries  
 Performance materiality          Performance materiality is set at 75% of overall materiality, being £161,000                                                
 Reporting threshold              3% of overall materiality being £6,000                                                                                      

The range of financial statement materiality across components, audited to the
lower of local statutory audit materiality and materiality capped for group
audit purposes, was between £215,000 and £307,000, being all below group
financial statement materiality.

An overview of the scope of our audit, including extent to which the audit was
considered capable of detecting irregularities, including fraud

As part of designing our audit, we determined materiality and assessed the
risk of material misstatement in the financial statements, whether due to
fraud or error, and then designed and performed audit procedures responsive to
those risks. In particular, we looked at where the directors made subjective
judgements such as making assumptions on significant accounting estimates.

We tailored the scope of our audit to ensure that we performed sufficient work
to be able to give an opinion on the financial statements as a whole. We used
the outputs of a risk assessment, our understanding of the group and the
parent company, their environment, controls and critical business processes,
to consider qualitative factors in order to ensure that we obtained sufficient
coverage across all financial statement line items.

Our audit procedures were designed to respond to those identified risks,
including non-compliance with laws and regulations (irregularities) and fraud
that are material to the financial statements.

In identifying and assessing risks of material misstatement in respect to
irregularities including non-compliance with laws and regulations, our
procedures included but were not limited to:
* at planning stage, we gained an understanding of the legal and regulatory
framework applicable to the group and the parent company, the structure of the
group, the industry in which they operate and considered the risk of acts by
the group and parent company which were contrary to the applicable laws and
regulations;
* we discussed with the directors the policies and procedures in place
regarding compliance with laws and regulations;
* we discussed amongst the engagement team the identified laws and
regulations, and remained alert to any indications of non-compliance; and
* during the audit, we focused on areas of laws and regulations that could
reasonably be expected to have a material effect on the financial statements
from our general commercial and sector experience and through discussions with
the directors (as required by auditing standards), from inspection of the
group’s and the parent company’s regulatory and legal correspondence and
review of minutes of directors’ meetings in the year. We also considered
those other laws and regulations that have a direct impact on the preparation
of financial statements, such as the Companies Act 2006 and UK tax
legislation.
Our procedures in relation to fraud included but were not limited to:
* inquiries of management whether they have knowledge of any actual, suspected
or alleged fraud;
* gaining an understanding of the internal controls established to mitigate
risk related to fraud;
* discussion amongst the engagement team regarding risk of fraud such as
opportunities for fraudulent manipulation of financial statements, and
determined that the principal risks were related to posting manual journal
entries to manipulate financial performance, management bias through
judgements and assumptions in significant accounting estimates, in particular
in relation to impairment of intangibles, and significant one-off or unusual
transactions; and
* addressing the risk of fraud through management override of controls by
performing journal entry testing.
The primary responsibility for the prevention and detection of irregularities
including fraud rests with both those charged with governance and management.
As with any audit, there remained a risk of non-detection of irregularities,
as these may involve collusion, forgery, intentional omissions,
misrepresentations or the override of internal controls.

As a result of our procedures, we did not identify any key audit matters
relating to irregularities. The risks of material misstatement that had the
greatest effect on our audit, including fraud, are discussed under ‘Key
audit matters’ within this report.

Our group audit scope included an audit of the group and the parent company
financial statements of Anglesey Mining plc. Based on our risk assessment,
Anglesey Mining plc and Paris Mountain Mines Limited within the group were
subject to full scope audit performed by the group audit team.

At the parent level we also tested the consolidation process and carried out
analytical procedures to confirm our conclusion that there were no significant
risks of material misstatement of the aggregated financial information.

Other information

The directors are responsible for the other information. The other information
comprises the information included in the annual report other than the
financial statements and our auditor’s report thereon. Our opinion on the
financial statements does not cover the other information and, except to the
extent otherwise explicitly stated in our report, we do not express any form
of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility
is to read the other information and, in doing so, consider whether the other
information is materially inconsistent with the financial statements or our
knowledge obtained in the audit or otherwise appears to be materially
misstated. If we identify such material inconsistencies or apparent material
misstatements, we are required to determine whether there is a material
misstatement in the financial statements or a material misstatement of the
other information. If, based on the work we have performed, we conclude that
there is a material misstatement of this other information, we are required to
report that fact.

We have nothing to report in this regard.

In this context, we also have nothing to report in regard to our
responsibility to specifically address the following items in the other
information and to report as uncorrected material misstatements of the other
information where we conclude that those items meet the following conditions:
* Fair, balanced and understandable set out on page 16 – the statement given
by the directors that they consider the annual report and financial statements
taken as a whole is fair, balanced and understandable and provides the
information necessary for shareholders to assess the group’s performance,
business model and strategy, is materially inconsistent with our knowledge
obtained in the audit; or
* Audit committee reporting set out on page 28 – the section describing the
work of the audit committee does not appropriately address matters
communicated by us to the audit committee; or
* Directors’ statement of compliance with the UK Corporate Governance Code
set out on pages 22-27 – the parts of the directors’ statement required
under the Listing Rules relating to the parent company’s compliance with the
UK Corporate Governance Code containing provisions specified for review by the
auditor in accordance with Listing Rule 9.8.10R(2) do not properly disclose a
departure from a relevant provision of the UK Corporate Governance Code.
Opinions on other matters prescribed by the Companies Act 2006

In our opinion, the part of the directors’ remuneration report to be audited
has been properly prepared in accordance with the Companies Act 2006.

In our opinion, based on the work undertaken in the course of the audit:
* the information given in the Strategic Report and the Directors’ Report
for the financial year for which the financial statements are prepared is
consistent with the financial statements and those reports have been prepared
in accordance with applicable legal requirements;
* the information about internal control and risk management systems in
relation to financial reporting processes and about share capital structures,
given in compliance with rules 7.2.5 and 7.2.6 in the Disclosure Rules and
Transparency Rules sourcebook made by the Financial Conduct Authority (the FCA
Rules), is consistent with the financial statements and has been prepared in
accordance with applicable legal requirements; and
* information about the parent company’s corporate governance code and
practices and about its administrative, management and supervisory bodies and
their committees complies with rules 7.2.2, 7.2.3 and 7.2.7 of the FCA Rules.
Matters on which we are required to report by exception

In light of the knowledge and understanding of the group and the parent
company and their environment obtained in the course of the audit, we have not
identified material misstatements in:
* the Strategic Report or the Directors’ Report; or
* the information about internal control and risk management systems in
relation to financial reporting processes and about share capital structures,
given in compliance with rules 7.2.5 and 7.2.6 of the FCA Rules.
We have nothing to report in respect of the following matters in relation to
which the Companies Act 2006 requires us to report to you if, in our opinion:
* adequate accounting records have not been kept by the parent company, or
returns adequate for our audit have not been received from branches not
visited by us; or
* the parent company financial statements and the part of the directors’
remuneration report to be audited are not in agreement with the accounting
records and returns; or
* certain disclosures of directors’ remuneration specified by law are not
made; or
* we have not received all the information and explanations we require for our
audit; or
* a corporate governance statement has not been prepared by the parent
company.
Responsibilities of Directors

As explained more fully in the directors’ responsibilities statement set out
on page 11, the directors are responsible for the preparation of the financial
statements and for being satisfied that they give a true and fair view, and
for such internal control as the directors determine is necessary to enable
the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for
assessing the group’s and the parent company’s ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the directors either intend
to liquidate the group or the parent company or to cease operations, or have
no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to
fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with ISAs (UK) will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and
are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on
the basis of these financial statements.

A further description of our responsibilities for the audit of the financial
statements is located on the Financial Reporting Council’s website at
www.frc.org.uk/auditorsresponsibilities. This description forms part of our
auditor’s report.

Other matters which we are required to address

Mazars was initially appointed as auditors by the Board of Directors in 2008.
On 21 February 2018, following the recommendation of the audit committee, we
were reappointed by the Board of Directors to audit the financial statements
for the year ended 31 March 2018 and subsequent financial periods. The period
of total uninterrupted engagement since reappointment is 13 years, covering
the years ended 31 March 2008 and 31 March 2020.

The non-audit services prohibited by the FRC’s Ethical Standard were not
provided to the group or the parent company and we remain independent of the
group and the parent company in conducting our audit.

Our audit opinion is consistent with the additional report to the audit
committee.

Use of the audit report

This report is made solely to the parent company’s members as a body in
accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work
has been undertaken so that we might state to the parent company’s members
those matters we are required to state to them in an auditor’s report and
for no other purpose. To the fullest extent permitted by law, we do not accept
or assume responsibility to anyone other than the parent company and the
parent company’s members as a body for our audit work, for this report, or
for the opinions we have formed.

Robert Neate (Senior Statutory Auditor)
for and on behalf of Mazars LLP
Chartered Accountants and Statutory Auditor

Tower Bridge House,
St. Katharine’s Way,
London.
E1W 1DD 

25 September 2020

Group income statement

All attributable to equity holders of the company

                                                    Notes   Year ended 31 March 2020  Year ended 31 March 2019   
 All operations are continuing                                         £                         £               
                  Revenue                                                          -                         -   
                  Expenses                                                 (134,796)                  (75,538)   
                  Equity-settled employee benefits    21                           -                         -   
                  Investment income                   6                          287                       233   
                  Finance costs                       7                    (170,029)                 (159,336)   
                  Foreign exchange movement                                       28                        20   
                                                                                                                 
 Loss before tax                                      4                    (304,510)                 (234,621)   
                                                                                                                 
                  Taxation                            8                            -                         -   
                                                                                                                 
 Loss for the period                                                       (304,510)                 (234,621)   
                                                                                                                 
                  Loss per share                                                                                 
                  Basic - pence per share             9                       (0.2)p                    (0.1)p   
                  Diluted - pence per share           9                       (0.2)p                    (0.1)p   
                                                                                                                 

Group statement of comprehensive income

 Loss for the period                                                                                       (304,510)  (234,621)   
                 Other comprehensive income                                                                                       
                 Items that may subsequently be reclassified to profit or loss:                                                   
                 Exchange difference on translation of foreign holding                                      (23,350)   (15,095)   
                                                                                                                                  
                                                                                                                                  
 Total comprehensive loss for the period                                                                   (327,860)  (249,716)   
                                                                                                                                  

Group statement of financial position

                                                                     31 March 2020  31 March 2019 
                                                             Notes        £              £        
 Assets                                                                                           
                Non-current assets                                                                
                Mineral property exploration and evaluation    10       15,215,723     15,165,888 
                Property, plant and equipment                  11          204,687        204,687 
                Investments                                    14          100,099         97,795 
                Deposit                                        15          123,748        123,460 
                                                                                                  
                                                                        15,644,257     15,591,830 
                                                                                                  
                Current assets                                                                    
                Other receivables                                           16,505         19,215 
                Cash and cash equivalents                      16           95,311          6,012 
                                                                                                  
                                                                           111,816         25,227 
                                                                                                  
                                                                                                  
 Total assets                                                           15,756,073     15,617,057 
                                                                                                  
 Liabilities                                                                                      
                Current liabilities                                                               
                Trade and other payables                       17         (98,244)       (86,539) 
                                                                                                  
                                                                                                  
                                                                          (98,244)       (86,539) 
                                                                                                  
                Net current assets/(liabilities)                            13,572       (61,312) 
                                                                                                  
                Non-current liabilities                                                           
                Loans                                          18      (3,981,893)    (3,706,722) 
                Long term provision                            19         (50,000)       (50,000) 
                                                                                                  
                                                                       (4,031,893)    (3,756,722) 
                                                                                                  
 Total liabilities                                                     (4,130,137)    (3,843,261) 
                                                                                                  
                                                                                                  
 Net assets                                                             11,625,936     11,773,796 
                                                                                                  
 Equity                                                                                           
                Share capital                                  20        7,380,591      7,286,914 
                Share premium                                           10,258,309     10,171,986 
                Currency translation reserve                              (80,466)       (57,116) 
                Retained losses                                        (5,932,498)    (5,627,988) 
                                                                                                  
                                                                                                  
 Total shareholders' funds                                              11,625,936     11,773,796 
                                                                                                  

The financial statements of Anglesey Mining plc which include the notes to the
accounts on pages 40 to 55

were approved by the board of directors, authorised for issue on 25 September
2020 and signed on its behalf by:

John F. Kearney,    Chairman

Danesh Varma,    Finance Director

Company statement of financial position

                                                        31 March 2020  31 March 2019   
                                                Notes               £              £   
 Assets                                                                                
              Non-current assets                                                       
              Investments                         13       14,460,642     14,389,142   
                                                                                       
                                                           14,460,642     14,389,142   
                                                                                       
              Current assets                                                           
              Other receivables                                 5,960          6,705   
              Cash and cash equivalents           16           92,885          3,979   
                                                                                       
                                                               98,845         10,684   
                                                                                       
                                                                                       
 Total assets                                              14,559,487     14,399,826   
                                                                                       
 Liabilities                                                                           
              Current liabilities                                                      
              Trade and other payables            17         (67,191)       (66,477)   
                                                                                       
                                                             (67,191)       (66,477)   
                                                                                       
              Net current (liabilities)/assets                 31,654       (55,793)   
                                                                                       
              Non-current liabilities                                                  
              Loan                                18      (3,660,788)    (3,406,635)   
                                                                                       
                                                          (3,660,788)    (3,406,635)   
                                                                                       
              Total liabilities                           (3,727,979)    (3,473,112)   
                                                                                       
 Net assets                                                10,831,508     10,926,714   
                                                                                       
 Equity                                                                                
              Share capital                       20        7,380,591      7,286,914   
              Share premium                                10,258,309     10,171,986   
              Retained losses                             (6,807,392)    (6,532,186)   
                                                                                       
 Shareholders' equity                                      10,831,508     10,926,714   
                                                                                       

The company reported a loss for the year ended 31 March 2020 of £275,206
(2019 - £220,241). The financial statements
of Anglesey Mining plc registered number 1849957 which include the notes to
the accounts were approved by the
board of directors, authorised for issue on 25 September 2020 and signed on
its behalf by:

John F. Kearney,    Chairman

Danesh Varma,     Finance Director

Statements of changes in equity

All attributable to equity holders of the company.

   Group                                                    Share      Share     Currency translation reserve  Retained losses     Total    
                                                           capital     premium                                                              
                                                              £           £                    £                      £              £      
   Equity at 1 April 2018                                  7,286,914  10,171,986                      (42,021)      (5,393,367)  12,023,512 
                                                                                                                                            
   Total comprehensive loss for the year:                                                                                                   
   Loss for the year                                               -           -                             -        (234,621)   (234,621) 
   Exchange difference on translation of foreign holding           -           -                      (15,095)                -    (15,095) 
   Total comprehensive loss for the year                           -           -                      (15,095)        (234,621)   (249,716) 
                                                                                                                                            
   Equity at 31 March 2019                                 7,286,914  10,171,986                      (57,116)      (5,627,988)  11,773,796 
                                                                                                                                            
   Total comprehensive loss for the year:                                                                                                   
   Loss for the year                                               -           -                             -        (304,510)   (304,510) 
   Exchange difference on translation of foreign holding           -           -                      (23,350)                -    (23,350) 
                                                                                                                                            
   Total comprehensive income/(loss) for the year                  -           -                      (23,350)        (304,510)   (327,860) 
   Transactions with owners:                                                                                                                
   Shares issued                                              93,677     106,323                             -                -     200,000 
   Share issue expenses                                            -    (20,000)                             -                -    (20,000) 
                                                                                                                                            
   Equity at 31 March 2020                                 7,380,591  10,258,309                      (80,466)      (5,932,498)  11,625,936 
                                                                                                                                            
   Company                                                             Share                Share                 Retained         Total    
                                                                       capital              premium                 losses                  
                                                                          £                    £                      £              £      
   Equity at 1 April 2018                                              7,286,914                    10,171,986      (6,311,945)  11,146,955 
                                                                                                                                            
   Total comprehensive loss for the year:                                                                                                   
   Loss for the year                                                           -                             -        (220,241)   (220,241) 
                                                                                                                                            
   Total comprehensive loss for the year                                       -                             -        (220,241)   (220,241) 
                                                                                                                                            
   Equity at 31 March 2019                                             7,286,914                    10,171,986      (6,532,186)  10,926,714 
                                                                                                                                            
   Total comprehensive loss for the year:                                                                                                   
   Loss for the year                                                           -                             -        (275,206)   (275,206) 
                                                                                                                                            
   Total comprehensive loss for the year                                       -                             -        (275,206)   (275,206) 
   Transactions with owners:                                                                                                                
   Shares issued                                                          93,677                       106,323                -     200,000 
   Share issue expenses                                                        -                      (20,000)                -    (20,000) 
                                                                                                                                            
   Equity at 31 March 2020                                             7,380,591                    10,258,309      (6,807,392)  10,831,508 
                                                                                                                                            

Group statement of cash flows

                                                                              Notes         Year ended 31 March 2020  Year ended 31 March 2019   
                                                                                                       £                         £               
 Operating activities                                                                                                                            
                          Loss for the period                                                              (304,510)                 (234,621)   
                          Adjustments for:                                                                                                       
                          Investment income                                     6                              (287)                     (233)   
                          Finance costs                                         7                            170,029                   159,336   
                          Foreign exchange movement                                                             (28)                      (20)   
                                                                                                                                                 
                                                                                                           (143,583)                  (84,892)   
                          Movements in working capital                                                                                           
                          (Increase)/decrease in receivables                                                   2,685                       374   
                          (Decrease)/increase in payables                                                     15,708                    15,345   
                                                                                                                                                 
 Net cash used in operating activities                                                                     (125,190)                  (69,173)   
                                                                                                                                                 
 Investing activities                                                                                                                            
                          Mineral property exploration and evaluation                                       (53,826)                  (49,476)   
                          Investment                                                                        (11,713)                  (12,472)   
                                                                                                                                                 
 Net cash used in investing activities                                                                      (65,539)                  (61,948)   
                                                                                                                                                 
 Financing activities                                                                                                                            
                          Issue of share capital                                                             180,000                         -   
                          Loan received                                                                      100,000                         -   
                                                                                                                                                 
 Net cash generated from financing activities                                                                280,000                         -   
                                                                                                                                                 
 Net increase/(decrease) in cash and cash equivalents                                                         89,271                 (131,121)   
 Cash and cash equivalents at start of period                                                                  6,012                   137,113   
 Foreign exchange movement                                                                                        28                        20   
                                                                                                                                                 
 Cash and cash equivalents at end of period                                    16                             95,311                     6,012   
                                                                                                                                                 

Company statement of cash flows

                                                              Notes   Year ended 31 March 2020  Year ended 31 March 2019 
                                                                                 £                         £             
 Operating activities                                                                                                    
                          Loss for the period                   23                   (275,206)                 (220,241) 
                          Adjustments for:                                                                               
                          Equity-settled employee benefits                                   -                         - 
                          Finance costs                                                154,153                   144,234 
                                                                                                                         
                                                                                     (121,053)                  (76,007) 
                          Movements in working capital                                                                   
                          Decrease/(increase) in receivables                               745                     (933) 
                          Increase in payables                                             714                    12,356 
                                                                                                                         
 Net cash used in operating activities                                               (119,594)                  (64,584) 
                                                                                                                         
 Investing activities                                                                                                    
                          Investments and long term loans                             (71,500)                  (64,026) 
                                                                                                                         
 Net cash used in investing activities                                                (71,500)                  (64,026) 
                                                                                                                         
                                                                                                                         
 Net (decrease) in cash and cash equivalents                                            88,906                 (128,610) 
 Cash and cash equivalents at start of period                                            3,979                   132,589 
                                                                                                                         
 Cash and cash equivalents at end of period                     17                      92,885                     3,979 
                                                                                                                         

Notes to the Financial Statements

1      General information

Anglesey Mining plc is domiciled and incorporated in England and Wales under
the Companies Act with registration number 1849957. The nature of the
group’s operations and its principal activities are set out in note 3 and in
the strategic report. The registered office address is shown at the end of
this report.

These financial statements are presented in pounds sterling because that is
the currency of the primary economic environment in which the group has been
operating. Foreign operations are included in accordance with the policies set
out in note 2.

2      Significant accounting policies

Basis of Accounting

The group and company financial statements have been prepared in accordance
with International Financial Reporting Standards (IFRS) as adopted by the
European Union and therefore the group financial statements comply with
Article 4 of the EU IAS Regulation.

The financial statements have been prepared on the historical cost basis
except for the fair valuation of certain financial assets. The principal
accounting policies adopted are set out below.

Going concern 

The Directors have considered the business activities of the Group as well as
its principal risks and uncertainties as set out in this report. When doing so
they have carefully applied the guidance given in the ‘Guidance on Risk
Management, Internal Control and Related Financial and Business Reporting’
issued in September 2014.

The financial statements are prepared on a going concern basis. The validity
of the going concern basis is dependent on finance being available for the
continuing working capital requirements of the Group for the foreseeable
future, being a period of at least twelve months from the date of approval of
the accounts. Based on the current cash reserves and the committed support of
Juno, the Group has sufficient finance available for the continuing working
capital requirements of the Group on a status quo basis for at least twelve
months from the date of the financial statements.

The Group will need to generate additional financial resources to meet its
planned business objectives, progress the ongoing development of the Parys
Mountain project and continue as a going concern. The plans to phase the
development of the project by undertaking the various optimisation programmes
and completing a prefeasibility or feasibility study to progress the Parys
Mountain Mine towards production require interim funding to finance the
further studies and optimisation programmes and, in the longer term, senior
financing to fund the capital and development costs to put the Parys Mountain
Mine into production.

The Group has relied primarily on equity financings and its largest
shareholder Juno Limited to fund its working capital requirements and may be
required to do so in the future to ensure the Group will have adequate funds
for its current activities and to continue as a going concern.

The Directors are actively pursuing various financing options with certain
shareholders and financial institutions regarding proposals for financing and
are in discussions with a range of investors, including private equity funds.
Whilst these discussions continue the Directors have reasonable expectations
that these financing discussions will be successful and therefore the
financial statements have been prepared on the going concern basis.

However, given the limited financial resources currently available, and that
there is no guarantee that such funding will be available, there is a risk
that the Group will not have sufficient financial resources to fund its
short-term project funding requirements, and therefore there exists a material
uncertainty concerning the ability of the Group and the Company to continue as
a going concern or that the Group will be successful in raising the necessary
investment to advance the development of the project and put a mine at the
Parys Mountain property into production.

Basis of consolidation

The consolidated financial statements incorporate the financial statements of
the company and entities controlled by the company (its subsidiaries) made up
to 31 March each year. Control is achieved where the company has the power to
govern the financial and operating policies of an investee entity so as to
obtain benefits from its activities.

On acquisition, the assets and liabilities and contingent liabilities of a
subsidiary are measured at their fair values at the date of acquisition. Any
excess of the cost of acquisition over the fair values of the identifiable net
assets acquired is recognised as goodwill. Any deficiency of the cost of
acquisition below the fair values of the identifiable net assets acquired
(i.e. discount on acquisition) is credited to the income statement in the
period of acquisition. The results of subsidiaries acquired or disposed of
during the year are included in the group income statement from the effective
date of acquisition or up to the effective date of disposal, as appropriate.

Where necessary, adjustments are made to the financial statements of
subsidiaries to bring the accounting policies used into line with those used
by the group. All intra-group transactions, balances, income and expenses are
eliminated on consolidation.

Revenue recognition

Interest income is accrued on a time basis, by reference to the principal
outstanding and at the effective interest rate applicable, which is the rate
that exactly discounts estimated future cash receipts through the expected
life of the financial asset to that asset’s net carrying amount.

Foreign currencies

Transactions in currencies other than pounds sterling are recorded at the
rates of exchange prevailing on the dates of the transactions. At the end of
each reporting period, monetary assets and liabilities that are denominated in
foreign currencies are retranslated at the rates prevailing on the period end
date. Non-monetary assets and liabilities carried at fair value that are
denominated in foreign currencies are translated at the rates prevailing at
the date when the fair value was determined. Gains and losses arising on
retranslation are included in net profit or loss for the period.

On consolidation, the assets and liabilities of the group’s overseas
operations are translated at exchange rates prevailing on the period end date.
Exchange differences arising, if any, are classified as items of other
comprehensive income and transferred to the group’s translation reserve
within equity. Such translation differences are reclassified to profit or
loss, and recognised as income or as expense, in the period in which there is
a disposal of the operation.

Segmental analysis

Operating segments are identified on the basis of internal reports about
components of the group that are regularly reviewed by the chief operating
decision-maker.

Retirement benefit costs

Payments to defined contribution retirement benefit schemes are charged as an
expense as they fall due. There are no defined benefit retirement schemes.

Equity-settled employee benefits

The group provides equity-settled benefits to certain employees.
Equity-settled employee benefits are measured at fair value at the date of
grant. The fair value determined at the grant date is expensed on a
straight-line basis over the vesting period, based on the group’s estimate
of shares that will eventually vest and adjusted for the effect of non-market
based vesting conditions. Fair value is measured by use of a Black-Scholes
model.

Taxation

Deferred tax is the tax expected to be payable or recoverable on differences
between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable
profit, and is accounted for using the period end liability method. Deferred
tax liabilities are generally recognised for all taxable temporary differences
and deferred tax assets are recognised to the extent that it is probable that
taxable profits will be available against which deductible temporary
differences can be utilised. Such assets and liabilities are not recognised if
the temporary difference arises from goodwill or from the initial recognition
(other than in a business combination) of other assets and liabilities in a
transaction that affects neither the tax profit nor the accounting profit.

Deferred tax liabilities are recognised for taxable temporary differences
arising on investments in subsidiaries and associates, and interests in joint
ventures, except where the group is able to control the reversal of the
temporary difference and it is probable that the temporary difference will not
reverse in the foreseeable future. The carrying amount of any deferred tax
assets is reviewed at each period end date and reduced to the extent that it
is no longer probable that sufficient taxable profits will be available to
allow all or part of the asset to be recovered.

Deferred tax is calculated at the tax rates that are expected to apply in the
period when the liability is settled or the asset is realised and is charged
or credited in the income statement, except when it relates to items charged
or credited directly to equity, in which case the deferred tax is also dealt
with in equity.

The charge for current tax is based on the results for the year as adjusted
for items which are non-taxable or disallowed. It is calculated using rates
that have been enacted or substantively enacted by the balance sheet date.

Property, plant and equipment

The group’s freehold land is stated in the statement of financial position
at cost. The directors consider that the residual value of buildings, based on
prices prevailing at the date of acquisition and at each subsequent reporting
date as if the asset were already of the age and in the condition expected at
the end of its useful life, is such that any depreciation would not be
material.

Plant and office equipment are stated in the statement of financial position
at cost, less depreciation. Depreciation is charged on a straight line basis
at the annual rate of 25%. Residual values and the useful lives of these
assets are also reviewed annually.

Mineral property exploration and evaluation

Exploration and evaluation assets include acquired mineral use rights for
mineral properties held by the Company. The amount of consideration paid (in
cash or share value) for mineral use rights is capitalised. Mineral
exploration and evaluation expenditures are capitalised on a
project-by-project basis pending determination of the technical feasibility
and the commercial viability of the project. Capitalised costs include costs
directly related to exploration and evaluation activities in the area of
interest. General and administrative costs are only allocated to the asset to
the extent that those costs can be directly related to operational activities.

Exploration and evaluation assets will be amortised to profit or loss once
commercial production has been achieved or written off if the exploration and
evaluation assets are abandoned or sold. Depletion of costs capitalised on
projects when put into commercial production will be recorded using the
unit-of-production method based upon estimated proven and probable reserves.
The ultimate recoverability of the amounts capitalised for the exploration and
evaluation assets and expenditures is dependent upon the delineation of
economically recoverable ore reserves, obtaining the necessary financing to
complete their development, obtaining and retaining the necessary permits to
operate a mine, and realising profitable production or proceeds from the
disposition thereof.

The commercial viability of extracting a mineral resource is considered to be
determinable when resources are determined to exist, the property rights are
current and it is considered probable that the costs will be recouped through
successful development and exploitation of the project, or alternatively by
sale of the property. Upon determination of resources, exploration and
evaluation assets attributable to those resources are first tested for
impairment and then reclassified from exploration and evaluation assets to
mineral property interests. Expenditures deemed unsuccessful are recognised in
operations in the Income Statement.

Expenditures incurred in connection with the development of mineral resources
after such time as mineral reserves are proven or probable; permits to operate
the mineral resource property are received; financing to complete development
has been obtained; and approval of the Board of Directors to commence mining
development and operations, are capitalized as deferred development
expenditures.

Impairment of tangible and intangible assets

The carrying values of capitalized exploration and evaluation assets are
assessed for impairment if fact and circumstances indicate that the carrying
amount exceeds the recoverable amount and sufficient data exists to evaluate
technical feasibility and commercial viability.  If any indication of
impairment exists, an estimate of the asset’s recoverable amount is
estimated. The recoverable amount is determined as the higher of the fair
value less costs of disposition and the asset’s value in use. If the
carrying amount of the asset exceeds its estimated recoverable amount, the
asset is impaired, and an impairment loss is charged to the Income Statement
so as to reduce the carrying amount to its estimated recoverable amount.  

Investments

Investments in subsidiaries are shown at cost less provisions for impairment
in value. Income from investments in subsidiaries together with any related
withholding tax is recognised in the income statement in the period to which
it relates.

Investments which are not subsidiaries are shown at cost unless there is a
practical method of determining a reliable fair value, in which case that fair
value is used.

Impairment of investment

Financial assets are assessed for indicators of impairment at the end of each
reporting period. Financial assets are considered to be impaired when there is
objective evidence that, as a result of one or more events that occurred after
the initial recognition of the financial asset, the estimated future cash
flows of the investment have been affected.

For financial assets carried at amortised cost, the amount of the impairment
loss recognised is the difference between the asset's carrying amount and the
present value of estimated future cash flows, discounted at the financial
asset's original effective interest rate.

For an equity instrument that does not have a quoted price in an active
market, and that is not carried at fair value because its fair value cannot be
reliably measured, the amount of the impairment loss is measured as the
difference between the carrying amount of the financial asset and the present
value of estimated future cash flows discounted at the current market rate of
return for a similar financial asset.

Provisions

Provisions are recognised when the group has a present obligation as a result
of a past event and it is probable that the group will be required to settle
that obligation. Provisions are measured at the directors’ best estimate of
the expenditure required to settle that obligation at the end of the reporting
period and are discounted to present value where the effect is material.

Financial instruments

Initial recognition

All financial assets and liabilities are initially recognised on the trade
date; this being the date that group becomes a party to the contractual
provisions of the instrument.  

All financial instruments are initially recognised at fair value plus, in the
case of financial assets and financial liabilities not held at fair value
through profit or loss, directly attributable transaction costs.

Classification and measurement

Financial assets

The classification of financial instruments depends on the purpose and
management’s intention for which the financial instruments were acquired and
their characteristics. The group classifies its financial assets in one of the
following categories:

• Amortised cost

• Fair value through other comprehensive income (FVOCI)

Financial assets classified and measured at amortised cost

Amortised cost financial instruments are non-derivative financial assets held
within a business model, whose objective is to collect contractual cash flows,
on specified dates that are solely payments of principal and interest on the
principal amount outstanding.

Such financial instruments are those that are subsequently measured at
amortised cost using the effective interest rate method, less any allowance
for impairment based on Expected Credit Loss (ECL). Amortised cost is
calculated by taking into account any discount or premium on acquisition and
fees and costs that are an integral part of the financial asset.

Financial assets classified as amortised cost are other receivables, deposits
and cash and cash equivalent. Carrying value of these financial assets at
yearend are not material to the group.

Financial assets classified and measured at fair value through other
comprehensive income “FVOCI”

FVOCI financial assets are those non-derivative financial assets held within a
business model, whose objectives are both to sell the financial assets and to
collect contractual cash flows, on specified dates, that are solely payments
of principal and interest on the principal amount outstanding.

Financial assets that are classified as FVOCI are measured at fair value. The
changes in fair value are recognised directly in equity with three exceptions,
which are recognised in profit and loss:

• Interest, calculated using the effective interest method;

• Impairment losses; and

• Foreign exchange gains and losses on monetary financial assets.

When the investment is disposed of, the cumulative gain or loss previously
recognised in equity is recognised in the statement of comprehensive income.

Financial assets classified as FVOCI are unlisted shares held by the group. 
The group has made the irrevocable election at initial recognition to classify
these investments at FVOCI. Carrying value of these financial assets at
yearend are not material to the group

Financial liabilities

The group classifies all financial liabilities as other financial liabilities
measured at amortised cost. Financial liabilities are initially recognised at
fair value, net of directly attributable transaction costs, and are
subsequently measured at amortised cost using the effective interest method.

Equity instruments

Equity instruments issued by the company are recorded at the proceeds
received, net of direct issue costs.

Leases

Mining lease payments relating to mineral property exploration and evaluation
are capitalised; there are no other leases, see note 25 for details. There are
no IFRS 16 disclosures required in respect of the mining leases.

New accounting standards  

Standards, amendments and interpretations adopted in the current financial
year:

The adoption of the following standards, amendments and interpretations in the
current financial year has not had a material impact on the financial
statements of the group or the company.

IFRS 9 Financial Instruments (Amendment)

IFRS 16 Leases  

IFRIC 23 Uncertainty over Income Tax Treatments

IAS 19 Employee Benefits (Amendment) Plan Amendment

IAS 28 Investments in Associates and Joint Ventures (Amendment)

Standards, amendments and interpretations in issue but not yet effective:

                                                                                        Effective date               
 Amendments to IAS 1 and IAS 8: Definition of Material                                  1 January 2020               
 Amendment to IFRS 3 Business Combinations: Definition of a Business                    1 January 2020               
 Conceptual Framework (Revised) and amendments to related references in IFRS Standards  1 January 2020               
 IFRS 17 Insurance Contracts                                                            Expected date not available  

The adoption of the above standards and interpretations is not expected to
lead to any changes to the group’s accounting policies or have any other
material impact on the financial position or performance of the group.

There have been no other new or revised International Financial Reporting
Standards, International Accounting Standards or Interpretations that are in
effect since that last annual report that have a material impact on the
financial statements.

Judgements made in applying accounting policies and key sources of estimation
uncertainty

The following critical judgements have been made in the process of applying
the group’s accounting policies:

(a) In determining the treatment of exploration and evaluation expenditures
the directors are required to make estimates and assumptions as to future
events and circumstances. Significant judgment must be exercised in
determining when a project moves from the exploration and evaluation category
phase and into the development category of mineral property interests. The
existence and extent of economic mineral resources, proven or probable mineral
reserves; regulatory permits and licences; the availability of development
financing; current and future metal prices; and market sentiment are all
factors to be considered. Estimates of the recoverable value of exploration
and evaluation assets involves certain inherent uncertainties, including
geological, fluctuation in metal prices, operating costs, and permitting
risks. There are uncertainties inherent in making such assumptions, especially
with regard to: mineral resources; recovery rates; production costs; commodity
prices and exchange rates. Estimates of the recoverability of the Company’s
investment in exploration and evaluation assets have been based on current and
expected conditions. Assumptions that are valid at the time of estimation may
change significantly as new information becomes available and changes in these
assumptions may result in resources or reserves being restated.

(b) In connection with possible impairment of exploration and evaluation
assets and the company’s investment in and loan due from the subsidiary
Parys Mountain Mines Limited, the directors assess each potentially cash
generating unit annually to determine whether any indication of impairment
exists. The judgements made when doing so are similar to those set out above
and are subject to the same uncertainties.

(c) The directors applied assumptions and judgement in determining the fair
value of investments classified and measured as financial assets at FVOCI.
These financial assets disclosed in note 14 are unquoted investments in
companies holding mining rights. The inputs in determining fair value are
taken from observable markets where possible, but where this is not feasible,
a degree of judgement has been applied in establishing fair values. Judgements
include considerations of inputs such as exploration potential, available
market information relating to current demand, prices, economic viability and
future financing. See note 14 for further details.

Nature and purpose of equity reserves

The share premium reserve represents the consideration that has been received
in excess of the nominal value of shares on issue of new ordinary share
capital, less any direct costs of issue.

The currency translation reserve represents the variations on revaluation of
overseas foreign subsidiaries and associates.

The retained earnings reserve represents profits and losses retained in
previous and the current period.

3      Segmental information

The group is engaged in the business of exploring and evaluating the
wholly-owned Parys Mountain project in North Wales, managing its interest in
the Grangesberg properties and has an investment in the Labrador iron project
in eastern Canada. In the opinion of the directors, the group’s activities
comprise one class of business which is mine exploration, evaluation and
development. The group reports geographical segments; these are the basis on
which information is reported to the board. As yet there have been no site
expenses incurred in respect of the group’s interest in Grangesberg and
management expenses for this segment are included in the UK total.

 Income statement analysis                                                                               
                                        2020                                      2019                   
                           UK          Sweden  Canada   Total            UK    Sweden  Canada      Total 
                           £            £        £        £          £          £        £        £      
 Expenses                 (134,796)         -       -  (134,796)   (75,538)         -       -   (75,538) 
 Investment income              287         -       -        287        233         -       -        233 
 Finance costs            (154,153)  (15,876)       -  (170,029)  (144,234)  (15,102)       -  (159,336) 
 Exchange rate loss               -        28       -         28          -        20       -         20 
                                                                                                         
                                                                                                         
 Loss for the year        (288,662)  (15,848)       -  (304,510)  (219,539)  (15,082)       -  (234,621) 
                                                                                                         

   

 Assets and liabilities                                                                                            
                                        31 March 2020                                31 March 2019                 
                              UK          Sweden  Canada    Total          UK          Sweden  Canada        Total 
                              £           £         £         £            £           £         £         £       
 Non-current assets        15,544,158    100,098       1   15,644,257   15,494,035     97,794       1   15,591,830 
 Current assets               110,716      1,100       -      111,816       24,149      1,078       -       25,227 
 Liabilities              (3,809,032)  (321,105)       -  (4,130,137)  (3,543,174)  (300,087)       -  (3,843,261) 
                                                                                                                   
 Net assets/liabilities    11,845,842  (219,907)       1   11,625,936   11,975,010  (201,215)       1   11,773,796 
                                                                                                                   

4      Loss before taxation

 The loss before taxation for the year has been arrived at after charging/(crediting):                              
                                                             2020                                            2019   
                                                                £                                               £   
 Fees payable to the group's auditor:                                                                               
 for the audit of the annual accounts                      37,000                                          22,000   
 for the audit of subsidiaries' accounts                    5,000                                           3,000   
 for other services                                             -                                               -   
 Directors' remuneration                                        -                                               -   
 Foreign exchange movement                                   (28)                                            (20)   
                                                                                                                    

5      Staff costs

 The average monthly number of persons employed (including executive directors) was:                       
                                                                                                           
                                                      2020                                          2019   
 Administrative                                          3                                             3   
                                                         3                                             3   
                                                                                                           
 Their aggregate remuneration was:                       £                                             £   
 Wages and salaries                                 11,000                                        11,175   
 Social security costs                                 390                                           431   
 Other pension costs                                     -                                             -   
                                                                                                           
                                                    11,390                                        11,606   
                                                                                                           

The directors did not receive any remuneration during the year. Further
details are provided in the
directors’ remuneration report together with information on share options.

6      Investment income

                                             2020    2019   
 Loans and receivables                        £       £     
 Interest on site re-instatement deposit      287     233   
                                                            
                                              287     233   
                                                            

7      Finance costs

                                      2020       2019   
 Loans and payables                  £          £       
 Loan interest to Juno Limited     154,153    144,234   
 Loan interest to Eurmag AB         15,876     15,102   
                                                        
                                   170,029    159,336   
                                                        

For both loans the interest shown is accrued and will be repaid together with
the loan principal.

8      Taxation  

Activity during the year has generated trading losses for taxation purposes
which may be offset against investment income and other revenues. Accordingly
no provision has been made for Corporation Tax. There is an unrecognised
deferred tax asset at 31 March 2020 of £1.3 million (2019 - £1.3 million)
which, in view of the group’s trading results, is not considered by the
directors to be recoverable in the short term. There are also capital
allowances, including mineral extraction allowances, of £12.8 million
unclaimed and available at 31 March 2020 (2019 - £12.7 million). No deferred
tax asset is recognised in respect of these allowances.

                                                                  2020                                                2019   
                                                                     £                                                   £   
 Current tax                                                         -                                                   -   
 Deferred tax                                                        -                                                   -   
                                                                                                                             
 Total tax                                                           -                                                   -   
                                                                                                                             
 Domestic income tax is calculated at 19% (2019 - 19%)of the estimated assessed profit for                                   
 the year. Taxation for other jurisdictions is calculated at the rates prevailing in the                                     
 relevant jurisdictions.                                                                                                     
 The total charge for the year can be reconciled to the accounting profit or loss as follows:                                
                                                                                                                             
 Loss for the year                                           (304,510)                                           (234,621)   
                                                                                                                             
 Tax at the domestic income tax rate of 19%                   (57,857)                                            (44,578)   
 Tax effect of:                                                                                  `                           
 Unrecognised deferred tax on losses                            57,857                                              44,578   
                                                                                                                             
 Total tax                                                           -                                                   -   
                                                                                                                             

9      Earnings per ordinary share

                                                                                                    2020           2019   
                                                                                                       £              £   
 Earnings                                                                                                                 
 Loss for the year                                                                             (304,510)      (234,621)   
                                                                                                                          
 Number of shares                                                                                                         
 Weighted average number of ordinary shares for the purposes of basic earnings per share     185,772,778    177,608,051   
 Shares deemed to be issued for no consideration in respect of employee options                                           
 Weighted average number of ordinary shares for the purposes of diluted earnings per share   185,772,778    177,608,051   
                                                                                                                          
 Basic earnings per share                                                                         (0.2)p         (0.1)p   
                                                                                                                          
 Diluted earnings per share                                                                       (0.2)p         (0.1)p   
                                                                                                                          

As the group has a loss for the year ended 31 March 2020 the effect of the
outstanding share options is
anti-dilutive and diluted earnings are reported to be the same as basic
earnings.

10   Mineral property exploration and evaluation costs - group

                                 Parys Mountain 
 Cost                                         £ 
 At 31 March 2018                    15,111,141 
 Additions - site                        29,726 
 Additions - rentals & charges           25,021 
                                                
 At 31 March 2019                    15,165,888 
 Additions - site                        24,341 
 Additions - rentals & charges           25,494 
                                                
 At 31 March 2020                    15,215,723 
                                                
 Carrying amount                                
 Net book value 2020                 15,215,723 
 Net book value 2019                 15,165,888 
                                                

Included in the additions are mining lease expenses of £16,858 (2019 -
£16,626).

Potential impairment of mineral property 

Accumulated exploration and evaluation expenditure in respect of the Parys
Mountain property is carried in the financial statements at cost less any
impairment provision.

The directors assessed the carrying value of the Parys Mountain exploration
and evaluation assets at the reporting date to determine whether specific
facts and circumstances suggest there is an indication of impairment and 
concluded as described in the Strategic Report that those facts and
circumstances have not materially changed during the year and  there are no
indicators of impairment 

11   Property, plant and equipment

 Group                             Freehold land & property  Plant & equipment  Office equipment    Total 
 Cost                                                     £                  £                 £        £ 
 At 31 March 2018, 2019 and 2020                    204,687             17,434             5,487  227,608 
 Depreciation                                                                                             
 At 31 March 2018, 2019 and 2020                          -             17,434             5,487   22,921 
 Carrying amount                                                                                          
 At 31 March 2018, 2019 and 2020                    204,687                  -                 -  204,687 

   

 Company                           Freehold land & property  Plant & equipment  Office equipment   Total 
 Cost                                                     £                  £                 £       £ 
 At 31 March 2018, 2019 and 2020                          -             17,434             5,487  22,921 
 Depreciation                                                                                            
 At 31 March 2018, 2019 and 2020                          -             17,434             5,487  22,921 
 Carrying amount                                                                                         
 At 31 March 2018, 2019 and 2020                          -                  -                 -       - 

12   Subsidiaries - company

The subsidiaries of the company at 31 March 2020 and 2019 were as follows:

 Name of company                               Country of incorporation  Percentage owned  Principal activity                                                            
 Parys Mountain Mines Limited (1)              England & Wales           100%              Development of the Parys Mountain mining property                             
 Parys Mountain Land Limited (1)               England & Wales           100%              Holder of part of the Parys Mountain property                                 
 Parys Mountain Heritage Limited (1)           England & Wales           100%              Holder of part of the Parys Mountain property                                 
 Labrador Iron plc (2)                         Isle of Man               100%              Holder of the company’s investment in Labrador Iron Mines Holdings Limited    
 Angmag AB (3)                                 Sweden                    100%              Holder of the company’s investment in GIAB                                    
 Anglo Canadian Exploration (Ace) Limited (1)  England & Wales           100%              Dormant                                                                       

Registered office addresses:

1. - Parys Mountain, Amlwch, Anglesey, LL68 9RE

2. - Fort Anne, Douglas, Isle of Man, IM1 5PD

3. - Box 1703, 111 87 Stockholm, Sweden

13   Investments - company

                   Shares at cost    Capital contributions       Total      
                          £                    £                   £        
 At 1 April 2018           104,025   14,221,091                14,325,116   
 Advanced                        -                   64,026        64,026   
                                                                            
 At 31 March 2019          104,025               14,285,117    14,389,142   
 Advanced                        -                   71,500        71,500   
                                                                            
 At 31 March 2020          104,025               14,356,617    14,460,642   

The realisation of investments is dependent on finance being available for
development and on a number
of other factors. Interest is not charged on capital contributions.

14   Investments - group

                            Labrador  Grangesberg  Total   
                                   £            £        £ 
 At 1 April 2018                   1       86,659   86,660 
 Change during the period          -       11,135   11,135 
 At 31 March 2019                  1       97,794   97,795 
 Change during the period          -        2,304    2,304 
                                                           
 At 31 March 2020                  1      100,098  100,099 
                                                           

LIM

The directors consider the fair value of 12% investment in LIM for the
purposes of these accounts to be £1.

Grangesberg

The group has, through its Swedish subsidiary Angmag AB, an 10.0% ownership
interest in GIAB (2019 – 8.7%), a Swedish company which holds rights over
the Grangesberg iron ore deposits. The directors assessed the fair value of
its investment in Grangesberg under IFRS 9 and consider the cost at the date
of transition and at the year-end to approximate its fair value at these
dates. The group has, until June 2021, a right of first refusal over a further
50.1% of the equity of GIAB together with management direction of the
activities of GIAB, subject to certain restrictions. The group has significant
influence over certain relevant activities of GIAB however equity accounting
has not been applied in respect of this influence as the directors consider
this would not have any material affect.

During the year the group subscribed £11,713 (2019 - £12,472) for new shares
in GIAB, obtained further shares in exchange for services provided by it to
Grangesberg and transferred shares to Eurang AB as consideration for a
reduction in the loan due to Eurang.

15   Deposit

                                      Group                   
                                  2020         2019           
                                     £            £           
 Site re-instatement deposit  123,748      123,460            
                                                              

This deposit was required and made under the terms of a Section 106 Agreement
with the Isle of Anglesey County Council which has granted planning
permissions for mining at Parys Mountain. The deposit is refundable upon
restoration of the permitted area to the satisfaction of the Planning
Authority. The carrying value of the deposit approximates to its fair value.

16   Cash and cash equivalents

                                 Group                Company         
                              2020       2019      2020        2019   
                                 £          £         £           £   
 Held in sterling          94,210      4,933    92,885       3,979    
 Held in Canadian dollars  1           1        -            -        
 Held in US dollars        443         417      -            -        
 Held in Swedish krona     657         661      -            -        
                                                                      
                           95,311      6,012    92,885       3,979    
                                                                      

The carrying value of the cash approximates to its fair value.

17   Trade and other payables

                          Group                    Company            
                      2020          2019        2020           2019   
                         £             £           £              £   
 Trade payables  (13,537)      (30,067)    (11,939)       (24,477)    
 Other accruals  (84,707)      (56,472)    (55,252)       (42,000)    
                                                                      
                 (98,244)      (86,539)    (67,191)       (66,477)    
                                                                      

The carrying value of the trade and other payables approximates to their fair
value.

18   Loans

                                     Group                          Company               
                                 2020             2019           2020              2019   
                                    £                £              £                 £   
 Loan from Juno Limited  (3,660,788)      (3,406,635)    (3,660,788)       (3,406,635)    
 Loan from Eurmag AB     (321,105)        (300,087)      -                 -              
                                                                                          
                         (3,981,893)      (3,706,722)    (3,660,788)       (3,406,635)    
                                                                                          

Juno: The loan is provided under a working capital agreement, denominated in
sterling, unsecured and carries interest at 10% per annum on the principal
only. It is repayable from any future financing undertaken by the company, or
on demand following a notice period of 367 days. The terms of the facility
were approved by an independent committee of the board. The carrying value of
the loan approximates to its fair value.

Eurmag: The loan arose in connection with the acquisition of the investment in
Grangesberg. It is the subject of a letter agreement, denominated in Swedish
Krona, is unsecured and carries interest at 6.5% per annum on the principal
only. It is repayable from any future financing undertaken by the company, or
on demand following a notice period of 367 days. The terms of the facility
were approved by an independent committee of the board. The carrying value of
the loan approximates to its fair value.

Changes in liabilities arising from financing activities

                         1 April 2019  Cash flows  Non cash movements  31 March 2020  
                                     £           £                   £              £ 
 Loan from Juno Limited  (3,406,635)     (100,000)           (154,153)    (3,660,788) 
 Loan from Eurmag AB     (300,087)               -            (21,018)      (321,105) 
                                                                                      
                           (3,706,722)   (100,000)           (175,171)    (3,981,893) 
                                                                                      

The Juno loan relates to the group and company. The cash flow is in respect of
a single loan drawdown of £100,000 and the non cash movement represents
accrued interest.

The Eurmag loan relates to the group only and its non-cash movement comprises
accrued interest, the value of GIAB shares transferred to Eurang AB which
reduced the loan amount and foreign exchange changes.

19   Long term provision  

                                            Group                    
                                        2020          2019           
                                           £             £           
 Provision for site reinstatement   (50,000)      (50,000)           
                                                                     

The provision for site reinstatement covers the estimated costs of
reinstatement at the Parys Mountain site of the work done and changes made by
the group up to the date of the accounts. These costs would be payable on
completion of mining activities (which is estimated to be more than 20 years
after mining commences) or on earlier abandonment of the site. The provision
has not been discounted because the impact of doing so is not material to the
financial statements. There are significant uncertainties inherent in the
assumptions made in estimating the amount of this provision, which include
judgements of changes to the legal and regulatory framework, magnitude of
possible contamination and the timing, extent and costs of required
restoration and rehabilitation activity.

20   Share capital

                           Ordinary shares of 1p     Deferred shares of 4p      Total   
 Issued and                Nominal        Number     Nominal        Number   Nominal    
 fully paid                 value £                   value £                 value £   
                                                                                        
 At 1 April 2019          1,776,081  177,608,051    5,510,833  137,770,835  7,286,914   
 Issued in the period        93,677    9,367,681                               93,677   
                                                                                        
 At 31 March 2020         1,869,758  186,975,732    5,510,833  137,770,835  7,380,591   
                                                                                        

The deferred shares are non-voting, have no entitlement to dividends and have
negligible rights to return of capital on a winding up.

On  17 May 2019 a placing of 9,367,681 new ordinary shares was made to an
institution, representing approximately 5.3% of the company’s current issued
share capital, at 2.135 pence per share to raise a total of £200,000 gross
and £180,000 net.

On 24 August 2020 a private placing of £200,000 gross together with warrants
that could raise an additional £225,000 gross during the following 12 months
was announced.

21   Equity-settled employee benefits

The 2014 Unapproved share option plan provides for a grant price equal to or
above the average quoted market price of the ordinary shares for the three
trading days prior to the date of grant. All options granted to date have
carried a performance criterion, namely that the company's share price
performance from the date of grant must exceed that of the companies in the
top quartile of the FTSE 100 index. The vesting period for any options granted
since 2014 has been one year. Options are forfeited if the employee leaves
employment with the group before the options vest. No options were granted,
lapsed or forfeited in respect of the 2014 plan during the year.

                                                                                       2020                                                                                      2019                                      
                                          Options  Weighted average exercise price in pence  Remaining contractual life in years    Options  Weighted average exercise price in pence  Remaining contractual life in years 
 Outstanding at beginning of period     3,500,000                                      2.50                                  2.5  4,200,000                                      2.50                                  3.1 
 Granted during the period                      -                                         -                                               -                                         -                                      
 Forfeited during the period                    -                                         -                                               -                                         -                                      
 Exercised during the period                    -                                         -                                               -                                         -                                      
 Expired during the period                      -                                         -                                         700,000                                         -                                      
 Outstanding at the end of the period   3,500,000                                      2.00                                  1.5  3,500,000                                      2.50                                  2.5 
 Exercisable at the end of the period   3,500,000                                      2.00                                  1.5  3,500,000                                      2.50                                  2.5 

There were no expenses in respect of equity-settled employee remuneration for
the year ended 31 March 2020  (2019 – nil).

A summary of options granted and outstanding, all of which are over ordinary
shares of 1 pence, is as follows:                   

 Scheme               Number   Nominal value £ Exercise price    Exercisable from  Exercisable until 
                                                                                                     
 2014 Unapproved   3,500,000            35,000      2.00p       30 September 2017  30 September 2021 
                                                                                                     

22   Results attributable to Anglesey Mining plc

The loss after taxation in the parent company amounted to £275,206  (2019
loss £220,241). The directors have taken advantage of the exemptions
available under section 408 of the Companies Act 2006 and not presented an
income statement for the company alone.

23   Financial instruments

Capital risk management

There have been no changes during the year in the group’s capital risk
management policy.

The group manages its capital to ensure that entities in the group will be
able to continue as going concerns while optimising the debt and equity
balance. The capital structure of the group consists of debt, which includes
the borrowings disclosed in note 19, the cash and cash equivalents and equity
comprising issued capital, reserves and retained earnings.

The group does not enter into derivative or hedging transactions and it is the
group's policy that no trading in financial instruments be undertaken. The
main risks arising from the group's financial instruments are currency risk
and interest rate risk. The board reviews and agrees policies for managing
each of these risks and these are summarised below.

Interest rate risk

The amounts advanced under the Juno loans are at a fixed rate of interest of
10% per annum and those from Eurmag are at a fixed rate of 6.5% per annum. As
a result the group is not exposed to interest rate fluctuations. Interest
received on cash balances is not material to the group’s operations or
results.

The company (Anglesey Mining plc) is exposed to minimal interest rate risks.

Liquidity risk

The group has ensured continuity of funding through a mixture of issues of
shares and the working capital agreement with Juno Limited.

Trade creditors are payable on normal credit terms which are usually 30 days.
The loans due to Juno and Angmag carry a notice period of 367 days. Juno, in
keeping with its long-established practice has indicated that it has no
current intention of demanding repayment. No such notice had been received by
25 September 2020 in respect of either of the loans and they are classified as
having a maturity date between one and two years from the period end.

Currency risk

The presentational currency of the group and company is pounds sterling. The
loan from Juno Limited is denominated in pounds sterling. As a result, the
group has no currency exposure in respect of this loan. Currency risk in
respect of the book value of the investment in LIM is not significant.

In respect of the investment in Grangesberg in Sweden, if the rate of exchange
between the Swedish Krona and sterling were to weaken against sterling by 10%
there would be a loss to the group of £9,374 (2019 - £8,925) and if it were
to move in favour of sterling by a similar amount there would be a gain of
£11,457 (2019 - £10,908). Regarding liabilities denominated in Krona if the
rate of exchange between the Swedish Krona and sterling were to weaken against
sterling by 10% there would be a gain to the group of £29,191 (2019 -
£27,281) and if it were to move in favour of sterling by a similar amount
there would be a loss of £35,678 (2019 - £33,343). These gains or losses
would be recorded in other comprehensive income.

Potential exchange variations in respect of other foreign currencies are not
material.

Credit risk

The directors consider that the entity has limited exposure to credit risk as
the entity has immaterial receivable balances at the year-end on which a third
party may default on its contractual obligations. The carrying amount of the
group’s financial assets represents its maximum exposure to credit risk.
Cash is deposited with BBB or better rated banks.

 Group                        Financial assets classified at fair value through other comprehensive income      Financial assets measured at amortised cost   
                                         31 March 2020                            31 March 2019                    31 March 2020           31 March 2019      
                                                                   £                                        £                       £                       £ 
 Investments                                                 100,099                                   97,795                       -                       - 
 Deposit                                                           -                                        -                 123,748                 123,460 
 Other receivables                                                 -                                        -                  16,505                  19,215 
 Cash and cash equivalents                                         -                                        -                  95,311                   6,012 
                                                                   -                                        -                                                 
                                                             100,099                                   97,795                 235,564                 148,687 
                                                                                                                                                              
                                            Financial liabilities measured at amortised cost                                                                  
                                         31 March 2020                            31 March 2019                                                               
                                                                   £                                        £                                                 
 Trade payables                                             (13,537)                                 (30,067)                                                 
 Other payables                                             (84,707)                                 (56,472)                                                 
 Loans                                                   (3,981,893)                              (3,706,722)                                                 
                                                                                                                                                              
                                                         (4,080,137)                              (3,793,261)                                                 
                                                                                                                                                              

   

 Company                                                                                                                          
                              Financial assets measured at amortised cost     Financial liabilities measured at amortised cost    
                                 31 March 2020           31 March 2019            31 March 2020              31 March 2019        
                                                  £                       £                          £                          £ 
 Other receivables                            5,960                   6,705                          -                          - 
 Cash and cash equivalents                   92,885                   3,979                          -                          - 
                                                                                                                                  
 Trade payables                                   -                       -                   (11,939)                   (24,477) 
 Other payables                                   -                       -                   (55,252)                   (42,000) 
 Loan                                             -                       -                (3,660,788)                (3,406,635) 
                                                                                                                                  
                                             98,845                  10,684                (3,727,979)                (3,473,112) 
                                                                                                                                  

24   Related party transactions

Transactions between Anglesey Mining plc and its subsidiaries are summarised
in note 13.

Juno Limited

Juno Limited (Juno) which is registered in Bermuda holds 29% of the
company’s issued ordinary share capital. The group has the following
agreements with Juno: (a) a controlling shareholder agreement dated September
1996 and (b) a consolidated working capital agreement of 12 June 2002.
Interest payable to Juno is shown in note 7 and the balance due to Juno is
shown in note 18. There were no transactions between the group and Juno or its
group during the year. Danesh Varma is a director and, through his family
interests, a significant shareholder of Juno.

Grangesberg

Bill Hooley and Danesh Varma are directors of Grangesberg Iron AB and of the
special purpose vehicle Eurmag AB; Danesh Varma has been associated with the
Grangesberg project since 2007 when he became a director of Mikula Mining
Limited, a company subsequently renamed Eurang Limited, previously involved in
the Grangesberg project. He did not take part in the decision to enter into
the Grangesberg project when this was approved by the board. The group has a
liability to Eurmag AB a subsidiary of Eurang amounting to £321,105 at the
year-end (2019 – £300,087) – see note 18. During the year £11,713 (2019
- £12,472) was subscribed for new shares in GIAB.

Key management personnel

All key management personnel are directors and appropriate disclosure with
respect to them is made in the directors’ remuneration report.

There are no other contracts of significance in which any director has or had
during the year a material interest.

25   Mineral holdings

Parys

(a) Most of the mineral resources delineated to date are under the western
portion of Parys Mountain, the freehold and minerals of which are owned by the
group. A royalty of 6% of net profits after deduction of capital allowances,
as defined for tax purposes, from production of freehold minerals is payable.
The mining rights over and under this area, and the leasehold area described
in (b) below, are held in the Parys Mountain Mines Limited subsidiary.

(b) Under a mining lease from Lord Anglesey dated December 2006, the
subsidiary Parys Mountain Land Limited holds the eastern part of Parys
Mountain, formerly known as the Mona Mine. An annual certain rent of £11,858
is payable for the year beginning 23 March 2019; the base part of this rent
increases to £20,000 when extraction of minerals at Parys Mountain commences;
this rental is index-linked. A royalty of 1.8% of net smelter returns from
mineral sales is also payable. The lease may be terminated at 12 months’
notice and otherwise expires in 2070.

(c) Under a mining lease from the Crown dated December 1991 there is an annual
lease payment of £5,000. A royalty of 4% of gross sales of gold and silver
from the lease area is also payable. The lease expired in early 2020 and
negotiations in respect of the renewal of this lease or the granting of a new
lease are continuing.  

Lease payments

The group’s mining leases may be terminated by the Group with 12 months’
notice. If they are not so terminated, the minimum payments due in respect of
the leases and royalty agreement are analysed as follows: within the year
commencing 1 April 2020 - £19,095; between 1 April 2021 and 31 March 2026 -
£101,141. Thereafter the payments will continue at proportionate annual
rates, in some cases with increases for inflation, for so long as the leases
are retained or extended.

26   Material non cash transactions

There were no material non-cash transactions in the year. The arrangements
with QME Limited in respect of Parys Mountain development which began in 2018
have a non-cash element and are described in the Strategic Report on pages 5
to 8.

27   Commitments

Other than commitments under leases (note 25) there is no capital expenditure
authorised or contracted which is not provided for in these accounts (2019 -
nil).

28   Contingent liabilities

There are no contingent liabilities (2019 - nil).

29   Events after the period end

Subsequent to the period end, on 24 August 2020, the Company made a private
placing of 12,500,000 new ordinary shares at 1.6 pence per share, to raise a
total of £200,000 gross, together with 12,500,000 warrants with a term of 12
months to subscribe for new ordinary shares at an exercise price of 1.8p per
share that if exercised could raise an additional £225,000.XXXXXXXXXX

Annual General Meeting 2020

The 2020 Annual General Meeting of shareholders of Anglesey Mining plc will be
held on 30 September 2020 and a General Meeting of Shareholders will be held
on 30 October 2020.

In light of current measures relating to Covid-19 and the UK Government advice
on physical distancing measures, no shareholder, except those designated as
attending for the purposes of making up a quorum, will be admitted to the
Annual General Meeting called for 30 September 2020 or to the General Meeting
called for 30 October 2020. Shareholders should submit a proxy vote in advance
of each meeting. Please note that naming a proxy, other than the Chairman of
the meeting, will not enable such proxy to attend the meetings. Shareholders
who wish to ask any questions relating to the business of either of the
meetings are welcome to do so by means of an email to
mail@angleseymining.co.uk with AGM as its subject. . 

Due to the Covid-19 situation, the company’s annual report and accounts will
not be available for publication and distribution at the time of this notice
and therefore the usual resolutions relating to the reception of those
accounts and the directors’ remuneration and remuneration policy reports
will not be presented to the Annual General Meeting.

In June 2020, the UK government enacted legislation to give companies
flexibility to hold their annual general meetings where lockdowns due to the
coronavirus (COVID-19) pandemic would prevent such meetings in person. The
Corporate Insolvency and Governance Act 2020 introduced two key measures to
help those companies required to hold an annual general meeting (AGM) during
this time. Firstly, a company could extend the period in which its AGM must be
held, and secondly, the Act allows companies to hold a closed AGM. However,
the Act includes provisions relating to the holding of meetings of companies
taking place between 26 March 2020 and 30 September 2020 (Relevant Period),
that is primarily those companies with a December financial year end, and
although the Act provides that further extensions will be granted to extend
the Relevant Period in increments of up to three months, not to extend beyond
5 April 2021, such extension, which would have been relevant for those
companies with a March, June or other financial year end, has not been
granted.

To deal with this unusual situation the board is calling a General Meeting of
shareholders to be held on 30 October 2020, the notice of which is also set
out below, to conduct the business and resolutions which will not be
considered at the Annual General Meeting on 30 September 2020.

Enclosed with these notices are proxy cards, one for each of the meetings. It
is re-iterated that (a) shareholders cannot attend the meetings in person and
(b) naming a proxy other than the Chairman of the meeting will not enable such
proxy to attend the meeting. These arrangements appear to the board to be the
best way to comply with the legal requirement to hold an AGM within six months
of the end of the financial year;  to provide shareholders with adequate time
to consider the contents of the annual report before the accounts are
presented at the meeting; and to give the required notice of the resolutions 
to be considered.  Shareholders should visit the website
www.angleseymining.co.uk for any further information and announcements which
might be relevant to these general meetings.

Notice of Annual General Meeting to be held on 30 September 2020

Notice is given that the 2020 Annual General Meeting of Anglesey Mining plc
will be held electronically in a physically distanced manner on 30 September
2020,30 September 2020 at 11.00 a.m. to consider and, if thought fit, to pass
the resolutions set out below.

As ordinary business
1. To reappoint John F. Kearney as a director.
2. To reappoint Bill Hooley as a director.
3. To reappoint Howard Miller as a director.
1. To reappoint Danesh Varma as a director.
2. To reappoint Mazars LLP as auditor.
3. To authorise the directors to determine the remuneration of the auditor.
By order of the board

Danesh Varma

Company secretary

10 September 2020

Notice of a General Meeting to be held on 30 October 2020

Notice is given that a general meeting of shareholders of Anglesey Mining plc
will be held electronically in a physically distanced manner on 30 October
2020 at 11.00 a.m. to consider and, if thought fit, to pass the resolutions
set out below.

Resolutions 1 to 3 will be proposed as ordinary resolutions and resolutions 4
and 5 will be proposed as special resolutions:

As ordinary business
1. To receive the annual accounts and directors' and auditor’s reports for
the year ended 31 March 2020.
2. To approve the directors' remuneration report for the year ended 31 March
2020.
3. To approve the directors' remuneration policy in the directors’
remuneration report for the year ended 31 March 2020.
As special business

4. That, pursuant to section 551 of the Companies Act 2006 ("Act"), the
directors be and are generally and unconditionally authorised to exercise all
powers of the company to allot shares in the company or to grant rights to
subscribe for or to convert any security into shares in the company up to an
aggregate nominal amount of £660,000, provided that (unless previously
revoked, varied or renewed) this authority shall expire on 31 December 2021,
save that the company may make an offer or agreement before this authority
expires which would or might require shares to be allotted or rights to
subscribe for or to convert any security into shares to be granted after this
authority expires and the directors may allot shares or grant such rights
pursuant to any such offer or agreement as if this authority had not expired.

This authority is in substitution for all existing authorities under section
551 of the Act (which, to the extent unused at the date of this resolution,
are revoked with immediate effect).

5. That pursuant to section 570 of the Act, the directors be and are generally
empowered to allot equity securities (within the meaning of section 560 of the
Act) for cash pursuant to the authority granted under section 551 of the Act
pursuant to resolution 4 above as if section 561(1) of the Act did not apply
to any such allotment, provided that this power shall be limited to the
allotment of equity securities:

(a) in connection with an offer of equity securities (whether by way of a
rights issue, open offer or otherwise) (i) to holders of ordinary shares in
the capital of the company in proportion (as nearly as practicable) to the
respective numbers of ordinary shares held by them; and (ii) to holders of
other equity securities in the capital of the company, as required by the
rights of those securities or, subject to such rights, as the directors
otherwise consider necessary but subject to such exclusions or other
arrangements as the directors may deem necessary or expedient in relation to
treasury shares, fractional entitlements, record dates or any legal or
practical problems under the laws of any territory or the requirements of any
regulatory body or stock exchange; and

(b) otherwise than pursuant to paragraph 12(a) above, up to an aggregate
nominal amount of £498,000

and (unless previously revoked, varied or renewed) this power shall expire on
31 December 2021, save that the company may make an offer or agreement before
this power expires which would or might require equity securities to be
allotted for cash after this power expires and the directors may allot equity
securities for cash pursuant to any such offer or agreement as if this power
had not expired. This power is in substitution for all existing powers under
section 570 of the Act which, to the extent effective at the date of this
resolution, are revoked with immediate effect.

By order of the board

Danesh Varma

Company secretary

10 September 2020

Notes to the notice of AGM and the subsequent General Meeting 

Entitlement to attend and vote

1.       The right to vote at the meeting is determined by reference to
the register of members. Only those shareholders registered in the register of
members of the Company as at the close of business on 28 September 2020 in
respect of the AGM and 28 October 2020 in respect of the subsequent General
Meeting (or, if either meeting is adjourned, 48 hours (excluding any part of a
day that is not a working day) before the date and time of the adjourned
meeting) shall be entitled to attend and vote at the meeting in respect of the
number of shares registered in their name at that time. Changes to entries in
the register of members after that time shall be disregarded in determining
the rights of any person to attend or vote (and the number of votes they may
cast) at the meeting.

Proxies

2.       A shareholder is entitled to appoint another person as his or
her proxy to exercise all or any of his or her rights to attend and to speak
and vote at the meeting. However any person appointed other than the Chairman
will, on this unusual occasion, not be able to attend and vote at the meeting.
Shareholders are therefore recommended to use their proxy card to vote
directly in the way they see fit. A proxy need not be a member of the Company.
A shareholder may appoint more than one proxy in relation to the meeting,
provided that each proxy is appointed to exercise the rights attached to a
different share or shares held by that shareholder. Failure to specify the
number of shares each proxy appointment relates to or specifying a number
which when taken together with the numbers of shares set out in the other
proxy appointments is in excess of the number of shares held by the
shareholder may result in the proxy appointment being invalid. A proxy may be
appointed only in accordance with the procedures set out in note 3 and the
notes to the proxy form. The appointment of a proxy will not preclude a
shareholder from attending and voting in person at the meeting.

3.       A form of proxy for each meeting is enclosed. When appointing
more than one proxy, complete a separate proxy form in relation to each
appointment. Additional proxy forms may be obtained by contacting the
Company's registrar Link Asset Services, Proxies, The Registry, 34 Beckenham
Road, Kent BR3 4TU or the proxy form may be photocopied. State clearly on each
proxy form the number of shares in relation to which the proxy is appointed.
To be valid, a proxy form must be received by post or (during normal business
hours only) by hand at the offices of the Company's registrar, Link Asset
Services, Proxies, The Registry, 34 Beckenham Road, Kent BR3 4TU, no later
than 11.00 a.m. on 28 September 2020 in respect of the AGM and 28 October 2020
in respect of the subsequent General Meeting (or, if either meeting is
adjourned, no later than 48 hours (excluding any part of a day that is not a
working day) before the time of any adjourned meeting).

Corporate representatives

4.       A shareholder which is a corporation may authorise one or more
persons to act as its representative(s) at either meeting. Each such
representative may exercise (on behalf of the corporation) the same powers as
the corporation could exercise if it were an individual shareholder, provided
that (where there is more than one representative and the vote is otherwise
than on a show of hands) they do not do so in relation to the same shares.

Total voting rights

5.       As at 14 September 2020 (being the last practicable date before
the publication of this notice), the issued share capital consists of
199,475,732 ordinary shares of £0.01 each, carrying one vote each and
21,529,451 Deferred A Shares and 116,241,384 Deferred B Shares which do not
carry any rights to vote. Therefore, the total voting rights as at 14
September 2020 are 199,475,732.

Nominated Persons

6.       Where a copy of this notice is being received by a person who
has been nominated to enjoy information rights under section 146 of the
Companies Act 2006 ("Act") ("Nominated Person"):
(a) the Nominated Person may have a right under an agreement between him/her
and the shareholder by whom he/she was nominated, to be appointed, or to have
someone else appointed, as a proxy for the meeting; or
(b) if the Nominated Person has no such right or does not wish to exercise
such right, he/she may have a right under such an agreement to give
instructions to the shareholder as to the exercise of voting rights. The
statement of the rights of shareholders in relation to the appointment of
proxies in note 2 does not apply to a Nominated Person. The rights described
in such notes can only be exercised by shareholders of the Company.

Shareholders' right to require circulation of resolutions to be proposed at
the AGM only

7.       A shareholder or shareholders meeting the qualification
criteria set out in note 10 below may require the Company to give shareholders
notice of a resolution which may properly be proposed and is intended to be
proposed at the meeting in accordance with section 338 of the Act. A
resolution may properly be proposed unless (i) it would, if passed, be
ineffective (whether by reason of inconsistency with any enactment or the
Company's constitution or otherwise), (ii) it is defamatory of any person, or
(iii) it is frivolous or vexatious. The business which may be dealt with at
the meeting includes a resolution circulated pursuant to this right. Any such
request must (i) identify the resolution of which notice is to be given, by
either setting out the resolution in full or, if supporting a resolution
requested by another shareholder, clearly identifying the resolution which is
being supported (ii) comply with the requirements set out in note 11 below,
and (iii) be received by the Company no later than six weeks before the
meeting.

Shareholders' right to have a matter of business dealt with at the AGM only

8.       A shareholder or shareholders meeting the qualification
criteria set out in note 10 below may require the Company to include in the
business to be dealt with at the meeting any matter (other than a proposed
resolution) which may properly be included in the business in accordance with
section 338A of the Act. A matter may properly be included unless (i) it is
defamatory of any person, or (ii) it is frivolous or vexatious. Any such
request must (i) identify the matter to be included in the business, by either
setting out the matter in full or, if supporting a matter requested by another
shareholder, clearly identifying the matter which is being supported (ii) set
out the grounds for the request (iii) comply with the requirements set out in
note 11 below and (iv) be received by the Company no later than six weeks
before the meeting.

Website publication of audit concerns

9.       A shareholder or shareholders who meet the qualification
criteria set out in note 10 below may require the Company to publish on its
website a statement setting out any matter that such shareholders propose to
raise at the  subsequent General Meeting relating to either the audit of the
Company's accounts (including the auditors' report and the conduct of the
audit) that are to be laid before the meeting or any circumstances connected
with an auditor of the Company ceasing to hold office since the last annual
general meeting of the Company in accordance with section 527 of the Act. Any
such request must (i) identify the statement to which it relates, by either
setting out the statement in full or, if supporting a statement requested by
another shareholder, clearly identify the statement which is being supported
(ii) comply with the requirements set out in note 11 below and (iii) be
received by the Company at least one week before the meeting. Where the
Company is required to publish such a statement on its website (i) it may not
require the shareholders making the request to pay any expenses incurred by
the Company in complying with the request (ii) it must forward the statement
to the Company's auditors no later than the time when it makes the statement
available on the website and (iii) the statement may be dealt with as part of
the business of the meeting.

Notes 7, 8 and 9 above: qualification criteria and methods of making requests

10.     In order to require the Company (i) to circulate a resolution to
be proposed at the meeting as set out in note 7, (ii) to include a matter in
the business to be dealt with at the meeting as set out in note 8, or (iii) to
publish audit concerns as set out in note 9, the relevant request must be made
by (i) a shareholder or shareholders having a right to vote at the meeting and
holding at least five per cent of the total voting rights of the Company or
(ii) at least 100 shareholders having a right to vote at the meeting and
holding, on average, at least £100 of paid up share capital. For information
on voting rights, including the total voting rights of the Company, see note 5
above and the website referred to in note 15 below.

11.     Any request by a shareholder or shareholders to require the
Company (i) to circulate a resolution to be proposed at either of the meetings
as set out in note 7 (ii) to include a matter in the business to be dealt with
at the meeting as set out in note 8 or (iii) to publish audit concerns as set
out in note 9 may be made either (a) in hard copy, by sending it to Anglesey
Mining plc, Tower Bridge, St Katharine's Way, London E1W 1DD (marked for the
attention of the Company Secretary); or (b) in electronic form, by sending an
email to danesh@angleseymining.co.uk; and must state the full name(s) and
address(es) of the shareholder(s) and (where the request is made in hard copy
form) must be signed by the shareholder(s).

Questions at the meeting

12.     Shareholders have the right to ask questions at the meetings
relating to the business being dealt with at the meetings in accordance with
section 319A of the Act. The Company must answer any such question unless: (a)
to do so would interfere unduly with the preparation for the meeting or would
involve the disclosure of confidential information; (b) the answer has already
been given on a website in the form of an answer to a question; or (c) it is
undesirable in the interests of the Company or the good order of the meeting
that the question be answered. Shareholders who wish to ask any questions
relating to the business of either of the meetings are welcome to do so by
means of  an email to AGM@angleseymining.co.uk. 

Documents available for inspection

13.     The following documents will be available for inspection during
normal business hours at the registered office of the Company from the date of
this notice until the time of the meeting. They will also be available for
inspection at the place of the meeting from at least 15 minutes before the
meeting until it ends: (a) copies of the service contracts of the executive
directors, (b) copies of the letters of appointment of the non-executive
directors and (c) the Articles of Association of the Company which are also
available on the Company’s website.

Biographical details of directors

14.     Biographical details of all those directors who are offering
themselves for reappointment at the meeting are attached to this notice and
will also be included in the annual report and accounts.

Website providing information about the meeting

15.     The information required by section 311A of the Act to be published
in advance of the meeting, which includes the matters set out in this notice
and information relating to the voting rights of shareholders, is available at
www.angleseymining.co.uk.

Directors

 John F. Kearney  Irish, aged 69, is Chairman of Anglesey Mining plc and a number of other public companies, including Labrador Iron Mines Holdings Limited, Buchans Resources Limited, Minco Exploration plc and Xtierra Inc, and until 2019 was Chairman of Canadian Zinc       
                  Corporation. Over the course of his career he has served as a senior officer (usually Chairman and/or Chief Executive) of more than thirty public companies incorporated in Canada; Ireland; United Kingdom; United States; Australia and elsewhere, the shares 
                  of which were listed on various stock exchanges (including London Stock Exchange; AIM Market; Toronto Stock Exchange; New York Stock Exchange; American Stock Exchange; NASDAQ; Australian Stock Exchange). Mr. Kearney also served as a Director and Member of 
                  the Executive Committee of the Mining Association of Canada and as a director and two term President of the Northwest Territories and Nunavut Chamber of Mines. Mr. Kearney is a member of the Prospectors and Developers Association of Canada, the Canadian   
                  Institute of Mining and Metallurgy and the Law Society of Ireland. He holds degrees in law and economics from University College Dublin, an M.B.A. degree from Trinity College Dublin, and a Diploma in Mining Law from Osgoode Hall Law School, York           
                  University, Toronto. He qualified as a solicitor in Ireland and as a chartered secretary with the Institute of Chartered Secretaries and Administrators in London.                                                                                              
 Bill Hooley      aged 73, Chief Executive, is a mining engineering graduate from the Royal School of Mines, London and has extensive experience in the minerals industry including mine and processing operations, planning, project management and corporate management in many 
                  countries including Australia, Saudi Arabia, Canada and the UK. He has also practised as a minerals industry consultant at a senior level and has managed other businesses developing and selling products and services to the minerals and related industries. 
                  He is Vice-Chairman and a director of Labrador Iron Mines Holdings Limited as well as Chairman and a director of Grangesberg Iron AB and Eurmag AB. He has been a director of a number of other companies involved in the minerals industry. He is a Fellow of  
                  the Australasian Institute of Mining and Metallurgy.                                                                                                                                                                                                            
 Danesh Varma     aged 70, Finance Director and Company Secretary is a chartered accountant in England and Wales, and Canada, with over 37 years of experience in financial management. He is currently a director of Brookfield Investment Corp., Canadian Manganese Corp.,      
                  Labrador Iron Mines Holdings Limited, Anglesey Mining plc, Grangesberg Iron AB, Eurmag AB and Minco Exploration plc. He also serves as the Chief Financial Officer of Conquest Resources Limited, Buchans Resources Limited and Xtierra Inc. Previously he was  
                  President of American Resource Corporation and Westfield Minerals Limited and a director of Northgate Exploration Limited., Minco plc and Connemara Mining plc                                                                                                  
 Howard Miller    aged 76, non-executive director, a lawyer with over 40 years’ experience in the legal and mining finance sector in Africa, Canada and the UK. He has extensive experience in the financing of resource companies. He is a member of the remuneration, audit and 
                  nomination committees and the senior independent director.                                                                                                                                                                                                      

Anglesey Mining plc

                                                                                               
Parys Mountain
Amlwch, Anglesey, LL68 9RE

                                                                                               
Phone 01407 831275
mail@angleseymining.co.uk

London
office                                                                   
Painters’ Hall Chambers
8 Little Trinity Lane, London, EC4V 2AN
Phone 020 7062 3782

Registrars                                                                           
Link Asset Services
The Registry, 34 Beckenham Road,
Beckenham, Kent BR3 4TU
Share dealing phone 0371 664 0445
Helpline phone 0371 664 0300

                                                                                               
Calls are charged at the standard geographic rate and will vary by provider.
If you are outside the United Kingdom, please call +44 371 664 0300. Calls
outside the United Kingdom will be charged at the applicable international
rate. Lines are open between 9.00am and 5.30pm, Monday to Friday excluding
public holidays in England and Wales

Registered
office                                                            
Tower Bridge House,
St. Katharine’s Way, London, E1W 1DD

Web
site                                                                             
www.angleseymining.co.uk

Company registered number
                                    1849957

Shares
listed                                                                     
The London Stock Exchange - LSE:AYM



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