Placing to raise £1.2 million

The Board of Angel Mining is pleased to announce that it has completed a placing of shares to raise £1.2 million (the "Placing"). Under the Placing, the Company has conditionally raised £1.2 million through the issue of 75,000,000 new ordinary shares of 1p each in the Company ("Ordinary Shares") to investors at 1.6p 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 Thursday 6 October 2011.

The new funds will be used for the remaining works program to complete the construction of the cable car upper terminal, to establish the cables across the fjord at the Black Angel Mine and to provide greater working capital.  They will also be used to fund improvements to the buildings and camp infrastructure at the camp in Maarmorilik.  These improvements will carry on through the winter in anticipation of next year's construction programme.

Nick Hall, CEO of Angel Mining, commented: "Not withstanding the recent decline in the gold price, we are now at the point where cash generated from gold production at Nalunaq in October is expected to meet all operational costs at Nalunaq. The increasing size of the gold pours at Nalunaq are evidence of our strategy of maximizing the cash generation from Nalunaq but, with a JORC resource of 4.425mt of high grade zinc and lead, the Black Angel mine remains the Company's primary longer term asset."

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.