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Financial Update

Angel Mining plc (the "Company" or "Angel Mining")

AIM: ANGM

HIGHLIGHTS

• Oversubscribed Placing to raise £1.0 million ($1.6 million)
• Nalunaq to recommence full scale gold production this week

The Board of Angel Mining is pleased to announce that it has completed an oversubscribed placing of shares to raise £1.0 million (the “Placing”). Under the Placing, the Company has conditionally raised £1.0 million through the issue of 71,428,565 new ordinary shares of 1p each in the Company (“Ordinary Shares”) to investors at 1.4p per share.  Application has been made for the new Ordinary Shares to be admitted to trading on AIM and admission is expected to take place on Wednesday 11 April 2012.

The new funds will be used to:

• make payments to overdue creditors;
• ensure the continuity of oil and other essential supplies to Nalunaq; and to
• progress detail design work for the Black Angel project.

The Company is also pleased to confirm that full scale production from Nalunaq should recommence later this week. As was announced on 8 March 2012, the main generator at Nalunaq was badly damaged by the loss of a piston which damaged the engine block, cam shafts and the main crank.  New parts were obtained quickly from the Caterpillar dealer in Denmark and arrived on site last week. The rebuilt engine will be tested tomorrow, before being signed off by the engineers.  

Nick Hall, CEO of Angel Mining, commented: “The Company had hoped that it would be able to meet its financial commitments through sales of gold, however, the unforeseen halt in production meant the Company thought it prudent to secure a one-off cash injection from the financial markets.   

Although the failure of the generator on 5 March was a blow, as it has prevented the plant from milling and processing ore, I am delighted with the support we have witnessed from existing shareholders and other financial institutions in the UK. With commercial levels of gold production anticipated to commence later this week, we can look to the recommencement of cash generation. Moreover, given upgrades to the plant over the last month we expect to see a much improved level of gold production and sales in the coming months.”

Background to Angel Mining

Nalunaq

The Company first poured gold at Nalunaq on 27 May 2011 following final completion of the processing plant and is targeting optimal production by Q1 2012 of approximately 24,000 oz per annum thereby providing the Company with cash flow which will be dedicated to funding development at Black Angel, further exploration at Nalunaq and reducing debt.  The current mining plan anticipates a mine life of two to five years, subject to further exploration work. The directors anticipate that Nalunaq may enter into toll treatment arrangements with other potential gold mining activities in the region where appropriate. Angel Mining currently operates the only operational gold mine in the region and anticipates that its operation may be suitable for processing ore from other gold mining companies in the region in the future. 
Black Angel

The Black Angel project is a high grade zinc/lead project based around a previously developed mine in the north of Greenland.  The table below sets out the JORC Code compliant mineral resources estimate for the Black Angel project which includes three sets of zones within the mine and three satellite deposits which have been explored.

The project consists of three phases:

Phase I: Complete the rehabilitation of infrastructure to allow access to the mine, the mine camp and related facilities.

Phase II: Complete the detailed review of the pillar extraction programme within the Angel and Cover Zones, including the construction of the process plant and related systems to allow for the shipment of concentrate from the site.

Phase III: Develop a further exploration programme for the existing JORC resources at the Ark and Glacier deposits as well as identified mineralization at Deep Ice, Nunngarut and a number of other exploration targets within the license area (see the announcements made by the Company on 6 June 2006 titled "Black Angel 2006 Resource Statement" and on 30 November 2007 titled "Black Angel 2007 Resource Statement").

Dr Bob Dowdell is the qualified person that has reviewed and approved the technical information contained in this announcement.  Dr Dowdell holds a BSc and Doctorate in Mining Engineering from Newcastle University and is a Chartered Engineer and Member of the Institution of Mining and Metallurgy.

Gold Pour

Angel Mining plc (the "Company" or "Angel Mining")

AIM: ANGM

The board of Angel Mining plc is pleased to announce a gold doré pour of 15.942kg (463oz) at the Nalunaq Gold Mine on 16th March.

Mining operations have been progressing well, but the Company has been unable to mill crushed rock since the generator failure on 5th March. However, the other parts of the plant have remained operational and the Company has been able to process the milled ore and recover the gold that was already in the system.

The parts needed to repair the generator were despatched from Aalborg on time and are expected to arrive at Nalunaq on 22nd March. Full scale production should therefore recommence before month end.

Nicholas Hall, CEO, commented: "The previous gold doré pour was only 6 days before the generator failed and, although we cannot accurately extrapolate the data to calculate a monthly production rate, I consider this pour to be a good indication that, with a constant high grade feed, the mine and plant are capable of producing 1,500 to 2,000 ounces of gold per month. We are using the current time to get the whole operation as well prepared as possible for production in the coming months."

Another Record Gold Pour and Final Drawdown of Yorkville Promissory Note Facility

Angel Mining plc (the "Company" or "Angel Mining")

AIM: ANGM

Shareholder Newsletter No. 3

Angel Mining plc (the "Company" or "Angel Mining")

AIM: ANGM

Gold Pour

Angel Mining plc (the "Company" or "Angel Mining")

AIM: ANGM

The Board of Angel Mining is pleased to announce that a further 16.1 kilograms (517.8 ounces) of gold doré was successfully poured at Nalunaq on Monday, 9 January 2012. This is the largest single pour to date.

The mine and plant operated with a skeleton crew over the holiday period and they had to deal with very severe weather which at points disrupted production. Access to the mine was hampered at times, due to blizzard conditions, as was access to fuel supplies from the harbor. Photographs are being added to the photo gallery on the website which gives some idea of the conditions that the team dealt with over the last few weeks.

Nicholas Hall, CEO, commented: “I am delighted that the team have started 2012 with a record gold pour. This is the latest step in our steady increase in production at Nalunaq. In December 2011, Nalunaq reached the important milestone of becoming cash generative. We look forward to this cash generation continuing to improve in line with production.”

8th Gold Pour

Angel Mining plc (the "Company" or "Angel Mining")

AIM: ANGM

The Board of Angel Mining is pleased to announce that a further 13.77 kilograms (428 ounces) of gold doré was successfully poured at Nalunaq on Monday 19th December.

This pour brings the total gold doré poured so far in December to 29.2kg (938.8 ounces) and the total poured to date, since the first pour on 27 May, to 103.4 kilograms (3,323.8 ounces).

This recent pour provides yet further confidence in the Company building up its production towards a target of between 1,500 and 2,000 ounces per month, which it hopes to achieve in early 2012.

Production, during the recent two week period was adversely affected by a planned two day plant shut down for repairs and maintenance. The replacement ball mill pinion has been manufactured, is in transit to site and is expected to arrive in early January.

The carbon regeneration circuit is now operational, which is an important step towards increasing the rate of doré production and the Company expects to see the benefit of these reflected in increased production rates in early 2012.

Nicholas Hall, CEO, commented: "The team at Nalunaq have achieved so much in the last few months. We now have a mine that is producing high grade ore to feed the only underground cyanide leaching plant in the world, as far as we know. They will be working throughout the Christmas and New Year period and we look forward to the challenges and opportunities that await us in 2012."