Ognevka production commences

Hambledon Mining PLC 30 November 2007 PRESS INFORMATION 30 November 2007 HAMBLEDON MINING PLC Production commences at Ognevka Hambledon Mining plc ('Hambledon' or the 'Group' or the 'Company'), the AIM-listed gold mining and processing company operating in Kazakhstan, is pleased to announce that production has started at its Ognevka treatment plant. After a period of commissioning, the plant was started on 26th November 2007 and, following the resolution of some minor faults, full time treatment of clinker commenced on 29th November 2007. The Ognevka processing plant is designed to produce concentrates containing gold, silver, copper, iron and coke from the re-treatment of zinc smelter residues. First indications are that the plant is operating as planned. The processing facility is configured to treat up to 350,000 tonnes per year of copper, gold and silver-containing residues (sinter slag or 'clinker') from the zinc smelters. The initially targeted rate of production will be 240,000 tonnes per year while the optimum operating parameters are assessed. Initial production will involve the re-treatment of 150,000 tonnes of high grade tailings of previously treated clinker. Thereafter, clinker will be procured from other companies that have large stockpiles, for which they currently pay environmental penalties. At the expected metallurgical recoveries and currently available prices, the revenue from each tonne of clinker treated, including by-products, is expected to be over $75. Toll-treatment options are being investigated which are likely to improve this figure to around $125 per tonne, though, the increase would be partly offset by the toll treatment charge. The flexibility of the plant also allows for the treatment of various other feedstocks, including feldspar tailings (recovery of saleable feldspar, lithium and tantalum concentrates), pegmatite ores (tantalum, tin, mica and feldspar concentrates) or other slag via gravity, magnetic separation or flotation methodologies. Nick Bridgen, Chief Executive, commented: 'The plant and related infrastructure at Ognevka have been stripped down and refurbished from top to bottom in just five months: a very creditable achievement by the entirely local management. 'Hambledon is now entering a new era of production and profitability which will be enhanced when the Sekisovskoye gold mine commences production next month.' Enquiries Hambledon Mining plc Nicholas Bridgen, Chief Executive Telephone: +7 701 733 8915 +44 7791 327180 Bankside Consultants Michael Spriggs / Michael Padley Telephone: +4420 7367 8888 Seymour Pierce Nicola Marrin Telephone: +4420 7107 8018 Note to editors Hambledon Mining plc is an AIM-listed gold mining and exploration company which is developing the Sekisovskoye gold deposit and owns the Ognevka processing plant, both of which are close to Ust Kamenogorsk in East Kazakhstan. At Sekisovskoye, the Company is mining from an open pit and constructing an 850,000 tonnes per year treatment plant. Production from the open pit will average over 40,000 ounces per annum. After the start of open pit processing, the Company plans to develop the much larger underground resource that is expected to lead to a combined production rate of around 100,000 ounces per year. The Ognevka processing plant is producing concentrates containing gold, silver, copper, iron and coke from the re-treatment of zinc smelter residues. ENDS This information is provided by RNS The company news service from the London Stock Exchange

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