Anglo Asian Mining PLC announced that the International Bank of Azerbaijan (IBA) has committed an additional USD 25.5 million to fund the final stages of the construction of an agitation leaching plant to improve gold recoveries at Anglo Asian's Gedabek gold/copper/silver mine in Azerbaijan, with the view to commissioning in the first half of 2013. This is in addition to the USD 18 million already committed to the company by the IBA and brings the total committed funding for the agitation leaching plant from the IBA to USD 43.5 million to date. This commitment of further funding is in line with the letter of intent received by the company from the IBA, which states that, subject to internal consideration and approval, it would provide up to USD 60 million to the Company in total.

Construction of the new agitation plant is well underway with the tailing dam and pipe route construction, plant construction, tank fabrication and steel structure all on schedule and the equipment installation due to commence in January 2013. The plant is expected to be completed within the original budget of USD 52 million and is targeted to treat 100 tonnes of ore per hour initially and improve gold recoveries for oxide and sulphide materials to 85% and 69% respectively. As at December 31, 2012 the company had drawn down USD 29.6 million of the available funding.

Under the terms of the loan agreement, an all inclusive annual interest rate of 12% will apply on funds drawn, payable on a quarterly basis. The loan can be drawn down in tranches of up to USD 1,500,000. Repayment will be within 36 months in equal quarterly installments starting two years from the date that each tranche of funds is drawn down.

There is no penalty for early repayment.