New Loan Facility

Angel Mining plc (the "Company")
AIM: ANGM

The Company announces that it has entered into a new loan facility agreement with Cyrus Capital Partners, LP (“Cyrus”) and FBC Holdings S.à.r.l. (an associated company of Cyrus) to finance the capital expenditure and development costs of the Nalunaq gold mine and Black Angel zinc / lead mine in Greenland.

The facility term is for a period of 12 months and interest will be charged at 15% p.a. A facility fee of 5% will be charged on US$9.5 million, being the amount available for immediate draw down, with a 2% fee on US$3 million which may be drawn down during the term of the loan, at the discretion of Cyrus. The existing loan of US$2 million drawn recently from Cyrus will be rolled into the same facility thus extending the repayment date from 5 November 2009 to 12 months from the date that the additional loan of US$9.5 million is drawn.

The Company has also agreed that it will pay a royalty to Cyrus on each ounce of gold sold by Angel Mining (Gold) A/S from its Nalunaq gold mine, calculated as 2% of the selling price less US$560 per ounce. It will also pay a royalty on each tonne of zinc or lead sold by Black Angel Mining A/S from the Black Angel mine, calculated as 2% of the selling prices less US$1,500 per tonne. The royalty payments will have no security attached to them.

Cyrus, FBC Holdings S.à.r.l. and Daniel Bordessa, non-executive director of the Company, are classed as related parties pursuant to the AIM Rules for Companies.

The directors, excluding Daniel Bordessa, have consulted with WH Ireland Limited, the Company’s nominated adviser, and consider that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned.

CEO Nicholas Hall commented –

“This short term loan facility, provided by Cyrus and FBC Holdings S.à.r.l, should enable us to get Nalunaq into full scale production, subject to the availability of the necessary permits, and reach the point where the Company is generating cash from trading. It is therefore a big step forward that has been achieved with no dilution of shareholder interests. The risk that Cyrus is taking is recognised in the agreement to pay royalties on the profit element of future sales from each of the two mines.”

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