Final Results for the year ended 31 March 2006

Anglesey Mining plc - Preliminary statement of results 2006

Highlights
  ·    Two financings completed raising £1,624,000
  ·    Option secured to earn a 70% interest in the Labrador Iron Mines
         project in Canada
  ·    Continued drilling success at Parys Mountain including delineation of the
         new Engine zone deposit in the Garth Daniel area
  ·    Appointment of Bill Hooley as Executive Director and
         Roger Turner as Non-Executive Director

Commenting on the results, John F. Kearney, chairman of Anglesey Mining, said:
"We have seen significant developments for the company over the past year and
are very pleased with our progress. The drilling programme at Parys Mountain has
continued to produce excellent results and we are confident that further
drilling will lead to an increase in the resources. The Labrador Iron project is
an exciting new initiative and the dramatic improvement in commodity prices over
the past year has placed Anglesey in a strong position to become a metal
producer on two continents. We will work hard to achieve this within a short
time frame."

For further information please contact:
Ian Cuthbertson, Finance Director                      + (44) 1248 361333
Bill Hooley, Executive Director                        + (44) 1492 541981
John F. Kearney, Chairman                              + (1) 416 362 6686
Cathy Malins / Annabel Leather,
Parkgreen Communications                               + (44) 20 7493 3713


Chairman's statement

The  last year has been a most exciting one for our company and I am pleased  to
be  able to report to shareholders that the improvements outlined last year have
continued apace.

Despite  some  corrections  in recent weeks, metal prices  have  increased  very
significantly  over the past year and there is now a consensus that  the  prices
for  the metals we plan to produce are likely to stabilise at far higher  levels
than  those experienced over the past ten years. Higher prices will, of  course,
ensure that the Parys Mountain project is profitable and financeable.

Of particular importance this year was our success in securing an option to earn
a  70%  interest  in an advanced iron-ore project in eastern Canada.  Given  the
continuing  strength of iron-ore prices in recent negotiations this  project  is
likely to be highly valuable to the company in the coming years.

At  Parys  Mountain we have been very encouraged by the success of our  drilling
programme  and  the  delineation of the new Engine zone deposits  in  the  Garth
Daniel  area. This new area has the potential to be extended both eastwards  and
westwards and should add significantly to the Parys Mountain resource base.
Further,  we have been fortunate to make two noteworthy additions to our  board.
Roger Turner (non-executive) and Bill Hooley (executive), both experienced  mine
developers,  have  joined us and I believe that they will  make  very  important
contributions  to the rapid development of Parys Mountain and the Labrador  Iron
project, as well as to the identification of potential new projects.

Financing

Two fundraisings have been effected during the year. The first (reported in last
year's  chairman's statement) raised £464,000 in May 2005 and the second  raised
£1,160,000  in  February 2006. These funds have been and  will  continue  to  be
applied  to exploration at Parys Mountain and at the Labrador Iron project,  and
additionally will be used to progress studies aimed at financing both projects.

Parys Mountain

During  the year the company completed 2,225 metres of diamond core drilling  in
four  holes.  Three  of these were located in an area centred approximately  700
metres  north-east  of the Morris shaft, and the fourth was drilled,  without  a
significant  result, some 400 metres south of the Morris shaft. We have  already
reported on the considerable success achieved with the first three holes and  on
the  delineation  of  a  new zone in the Garth Daniel area.  These  three  holes
intersected  three  mineralised horizons: from the  highest,  the  Carreg-y-Doll
through the North Central to the lowest horizon, the Engine zone. These included
intersections of 2.5 metres at 40% combined copper, lead and zinc and 5.5 metres
at  22% combined Cu-Pb-Zn. The mineralisation in the Engine zone was not part of
any  previous  resource estimates on the site. We believe that the Garth  Daniel
area  has  a potential strike length exceeding 1.5km and has the possibility  of
adding  substantially to the resource base. We are currently drilling a  further
hole in this area and on the basis of the results from this new hole we will  be
able plan our ongoing drill programme for Garth Daniel.
In  addition  to the programme at Garth Daniel, we have commenced a close-spaced
drill  programme on the White Rock zone near to the Morris shaft. This  drilling
will be used for mine planning purposes, particularly for the earliest stopes in
the planned underground mining programme.
In  addition to the physical work on site, we have begun the task of creating an
electronic  geological  model  based on the prior and  present  geological  data
which,  when  completed, will be used for detailed mine  planning  and  will  be
helpful to the search for further resources and for long term mine planning.
The  company is continuing the review of the feasibility study for the  project.
This  review is based on the original 1991 Kilborn Study but will be brought  up
to  date using the revised geological model, additional metallurgical test-work,
a  revised mine plan and updated costings. It is expected that this update  will
be  completed during 2006 and will provide the basis for financing  the  project
through to production. Subject to financing, it is expected that the mine  could
be in production in less than two years of commencement of construction.
The  strategic  location of Parys Mountain on the doorway of the major  European
smelters  is  of  major  benefit.  With the  recent  upsurge  in  metal  prices,
especially zinc and copper, there has been widespread interest expressed in  the
project  from  mining  and associated industry support companies.  A  number  of
detailed site visits have been carried out and we believe that it is likely that
this  interest  could result in the provision of at least part  of  the  finance
required to develop the property.

Labrador Iron

In  October  2005 the company obtained an option to earn a 70% interest  in  the
Labrador  Iron Mines (LIM) project in the province of Newfoundland and  Labrador
in  Canada. As a matter of record I have declared that in a personal capacity  I
was partly responsible for assembling the portfolio of leases and that I hold an
interest in part of the remaining 30% of the joint venture.
LIM  is  based in the vicinity of the original Iron Ore Company of Canada (IOCC)
mines  in the Schefferville region of Labrador. The leases subject to the  joint
venture  were largely drilled by IOCC before 1984, resulting in an  estimate  of
the  resource  remaining  to be at least 100 million  tonnes  of  haematite  ore
averaging around 55% iron. In addition to these drilled resources, the  majority
of the original infrastructure including a 575 kilometre railroad to the port of
Sept-Iles remains in place and functioning.
The  plan  is to develop LIM as a relatively low tonnage operation  of  2  to  5
million  tonnes per annum with an equally low capital cost. Unlike IOCC,  it  is
intended to wash and upgrade the run-of-mine product in order to sell both  high
value lump ore as well as sinter fines into the iron-ore market. We believe that
this  project  can  be developed quickly and at low cost, in contrast  to  other
companies proposing larger but far more complex and expensive projects.
Studies on the various options for development have begun and will continue with
a  substantial confirmatory and exploration drilling programme during the summer
of  2006. It is expected to have the results of a pre-feasibility study to  hand
by  September,  and  if these are as positive as we expect  then  we  will  move
straight  to  a  full  feasibility study to be completed during  2007  with  the
intention  of  completing  finance  by the  end  of  2007  and  obtaining  first
production by 2008.
We believe this is a truly exciting prospect, selling sought-after material into
a  buoyant  market  and, assuming that the pre-feasibility  study  confirms  our
initial  review, we expect it to considerably enhance the value of  the  company
within a short period of time.

Financial Results

This  year  the  accounts  have been prepared under the International  Financial
Reporting Standards now being adopted for all listed companies, and this has led
to the restatement throughout the accounts of the figures for 2005. For the year
ended  31 March 2006 there was a loss of £517,405 compared to a loss of £186,769
in  the previous year. An impairment provision of £194,065, an increase in share
based  compensation payments of £36,815 and generally higher levels of  activity
resulting  in higher expenses are the reasons for the increase in the loss.  The
company  has  no  revenue  from the operation of its properties.  Following  the
placings  made during the year, the cash position at 31 March 2006 has  improved
to £1,201,381 from £44,070 last year.

Outlook

The  continued  long term improvement in commodity prices has  now  placed  your
company  in  a  position where it is poised to become a metals producer  on  two
continents within a short time frame. This is a significant turnaround from  the
difficult position that was faced just three years ago.
We intend to continue to explore and develop our two major projects at the same
time  as carrying out the necessary studies to bring them rapidly to production.
Additionally we will continue to review other prospective properties that  could
give us the opportunity to rapidly develop other operating mines.

John F. Kearney
Chairman


Consolidated income statement
     for the year ended 31 March 2006

 All operations are continuing                2006        2005
                                   Notes
                                                 £           £
 Revenue                                         -           -
 Administration expenses            4    (242,243)   (118,612)
 Provision for impairment           7    (194,065)           -

 Operating loss                          (436,308)   (118,612)

 Investment income                         22,545       2,434
 Finance costs                      5    (103,642)    (70,591)

 Loss before tax                         (517,405)   (186,769)

 Tax                                             -           -

 Loss for the period                     (517,405)   (186,769)

 Loss per share
 Basic and diluted loss per share   6       (0.4)p      (0.2)p



Consolidated statement of recognised income and expense
     for the year ended 31 March 2006
                                              2006        2005
                                                 £           £
 Loss attributable to ordinary           (517,405)   (186,769)
   shareholders
 Differences on translation of             (4,652)           -
   foreign operations

 Recognised income and expense           (522,057)   (186,769)




Consolidated balance sheet
                                          31 March    31 March
                                              2006        2005
                                                 £           £
                                   Notes
Assets
    Non-current assets
    Mineral property development    7    5,571,034   5,274,601
       costs
    Property, plant and equipment          185,102     185,602
    Deposit                                111,679     109,276

                                         5,867,815   5,569,479
    Current assets
    Other receivables                       10,800       1,334
    Cash and cash equivalents            1,201,381      44,070

                                         1,212,181      45,404

 Total assets                            7,079,996   5,614,883

Liabilities
    Current liabilities
    Trade and other payables              (422,851)   (627,945)
    Loans                                     -     (1,260,650)

                                          (627,945) (1,683,501)

    Net current
   assets/(liabilities)                    584,236  (1,638,097)

    Non-current liabilities
    Loans                               (1,336,392)         -
    Long term provision                    (42,000)         -

                                        (1,378,392)         -

 Total liabilities                      (2,006,337) (1,683,501)

 Net assets                              5,073,659   3,931,382


Equity
    Share capital                        6,885,914   6,673,247
    Share premium                        7,090,049   5,737,146
    Share based payment reserve            160,709      61,947
    Currency translation reserve            (4,652)       -
    Retained losses
                                        (9,058,361) (8,540,958)

Total shareholders' equity               5,073,659   3,931,382



Statements of changes in equity
     for the year ended 31 March 2006

Group                  Share    Share    Share  Currency   Retained      Total
                     capital  premium    based translation   losses
                                      payments    reserve
                           £        £        £         £          £          £
 At 1 April 2004   6,673,247 5,737,146       -         -  (8,354,189) 4,056,204
 Recognition of
  share based
  payments                 -         -  61,947         -         -       61,947
 Loss for the year         -         -       -         -   (186,769)   (186,769)

 At 31 March 2005  6,673,247 5,737,146  61,947         - (8,540,958) (3,931,382)

 Recognition of
  share based
  payments                 -         -  98,762         -         -       98,762
 Shares issued for
  cash               212,667 1,411,333       -         -         -    1,624,000
 Share issue
  expenses                 -   (58,430)      -         -         -      (58,430)
 Exchange
  differences on
  translation of
  foreign operations       -         -       -     (4,652)       -       (4,652)
 Loss for the year         -         -       -         -   (517,403)   (517,403)

 At 31 March 2006  6,885,914 7,090,049 160,709     (4,652)(9,058,361) 5,073,659



Consolidated cash flow statement
     for the year ended 31 March 2006
                                              2006        2005
                                                 £           £
Operating activities
Loss from operations                      (436,308)   (118,612)
    Adjustments for:
    Depreciation of plant &                    500         500
      equipment
    Provision for impairment               194,065           -
    Share based payment charge              98,762      61,947

Operating cashflow before
   movements in working capital           (142,981)    (56,165)

    Increase in payables                    (2,790)     44,932
    (Increase)/decrease in                  (9,998)        578
       receivables

Cash utilised by operations               (155,769)    (10,655)

    Interest paid                                -         (12)

Net cash used in operating                (155,769)    (10,667)
activities

Investing activities
    Interest received                       20,676         565
    Mineral property development          (323,166)     (7,094)

Net cash used in investing
activities                               (302,490)      (6,529)

Financing activities
    Proceeds from issue of ordinary      1,615,570           -
       shares, net of costs
    Proceeds from increase in                    -      60,000
       loans

Net cash from financing                  1,615,570      60,000
activities

Net increase in cash                     1,157,311      42,804


Cash and cash equivalents at               44,070       1,266
    beginning of period
 Cash and cash equivalents at end        1,201,381      44,070
    of period



Notes to the preliminary statement of results

1    General information

     Anglesey  Mining plc is a company incorporated in the United Kingdom  under
     the  Companies  Act  1985.  The nature of the group's  operations  and  its
     principal activities are detailed in note 4.
     These financial statements are presented in pounds sterling because that is
     the  currency  of  the  primary economic environment  in  which  the  group
     operates.

2    Adoption of new and revised International Financial Reporting Standards

     In  the  current  year, the Group has adopted all of the  new  and  revised
     Standards  and  Interpretations  issued  by  the  International  Accounting
     Standards  Board  (the  IASB)  and  the International  Financial  Reporting
     Interpretations  Committee (IFRIC) of the IASB that  are  relevant  to  its
     operations  and  effective for accounting periods beginning  on  1  January
     2005.  The  adoption of these new and revised Standards and Interpretations
     has resulted in changes to the Group's accounting policies in the following
     areas  that  have  affected the amounts reported for the current  or  prior
     years:
       ·    Share-based Payments (IFRS 2)
     The  impact of these changes in accounting policies is discussed in  detail
     later in this note.
     At  the  date of authorisation of these financial statements, the following
     Standards and Interpretations were in issue but not yet effective:
       ·    IRFS 6    Exploration for and Evaluation of Mineral Resources
       ·    IFRIC 3   Emission Rights
       ·    IFRIC 5   Right to Interest Arising from Decommissioning, Restoration and
              Environmental Rehabilitation Funds
     The   directors  anticipate  that  the  adoption  of  these  Standards  and
     Interpretations  in  future periods will have no  material  impact  on  the
     financial statements.
     IFRS 2 - Share-based Payments
     IFRS  2  Share-based  Payments requires the recognition  of  equity-settled
     share-based payments at fair value at the date of grant and the recognition
     of  liabilities for cash-settled share-based payments at the  current  fair
     value  at  each balance sheet date. Prior to the adoption of  IFRS  2,  the
     Group  did not recognise the financial effect of share-based payment  until
     such payments were settled.
     In  accordance with the transitional provision of IFRS 2, the Standard  has
     been  applied retrospectively to all grants of equity instruments  after  7
     November  2002  that were unvested at 1 April 2005, and to liabilities  for
     share-based  transactions existing at 1 April 2005. The Standard  therefore
     applies to share options granted in 2005 and 2006.
     For 2005, the change in accounting policy has resulted in a net increase in
     the  loss  for the year of £61,947. The balance sheet at 31 March 2005  has
     been  restated  to  reflect the recognition of a share options  reserve  of
     £61,947.
     For  2006, the impact of share-based payments is a net charge to the income
     statement  of £98,762. At 31 March 2006 the share options reserve  amounted
     to £160,709.
     The  share-based  payments  expense of £98,762  (2005:  £61,947)  has  been
     included with administration costs in the income statement.

3    Significant accounting policies

     Basis of Accounting
     The   financial   statements  have  been  prepared   in   accordance   with
     International Financial Reporting Standards (IFRS) for the first  time.  In
     these  financial  statements the 2005 comparatives have been  presented  in
     accordance with IFRS.
     The financial statements have been prepared on the historical cost basis.
     Going concern
     The  financial  statements  are prepared on  a  going  concern  basis.  The
     validity  of  the  going  concern concept is  dependent  on  finance  being
     available for the continuing working capital requirements of the group  and
     finance  for  the  development  of  the Parys  Mountain  property  becoming
     available.  Based  on  the  assumptions  that  such  finance  will   become
     available,  the  directors  believe  that  the  going  concern   basis   is
     appropriate  for  these accounts. Should the going  concern  basis  not  be
     appropriate, adjustments would have to be made to reduce the value  of  the
     group's  assets,  in  particular  the intangible  fixed  assets,  to  their
     realisable values.
     Other accounting policies are set out in full in the annual report.

4    Business and Geographical segments

     Until September 2005 all development activities and expenditure were in
     the United Kingdom. Following the optioning of the Labrador Iron project
     in Canada in October 2005, expenditures in respect of that property have
     also been incurred.
                                     United    Canada     Total
                                    Kingdom
                                      £         £         £
     Direct property expenses
     Site labour and support         37,311         -    37,311
     Drilling                       197,465         -   197,465
     Geology                         45,965    49,860    95,825
     Feasibility reports             14,457    10,187    24,644
     Property rentals, fees and      62,900         -    62,900
     charges
     Management                           -    30,354    30,354
     Provision for site              42,000         -    42,000
     reinstatement

                                    400,098    90,400   490,498
     Overhead expenses
     Corporate salaries & related    78,448         -    78,448
     costs
     Other corporate costs           65,033         -    65,033
     Share based payments            98,762         -    98,762

                                    242,243         -   242,243

                                    642,341    90,400   732,741
     Less
     Capitalised to mineral
     property development costs    (400,098)  (90,400) (490,498)

     Amount charged to income       242,243         -   242,243
     statement

     Assets and liabilities
     Assets                       6,989,596    90,400  7,079,996
     Liabilities                 (1,927,353)  (78,984)(2,006,337)

     Net assets                   5,062,243    11,416  5,073,659


5    Finance costs
                                       2006         2005
                                          £            £
     Loan interest to Juno           75,742       70,580
     Limited
     Other interest                  27,900           11

                                    103,642       70,591


6    Loss per ordinary share

     All operations are continuing
     As there is a loss for the year, basic and diluted EPS are the same and are
     calculated on the following data:
                                       2006         2005
                                          £            £
     Loss
     Loss for the period
                                   (517,405)     (186,769)

     Number of shares
     Weighted  average number  of  128,492,891   116,241,384
     ordinary  shares   for   the
     purposes   of   basic    and
     diluted earnings per share

     Loss  per  share -  basic  &     (0.4)        (0.1)
     diluted                          pence        pence

     Impact of changes in accounting policy
     The recognition of share-based payments as expenses has increased the
     loss per share - basic and diluted by 0.08 pence (2004: 0.05 pence).


7    Intangible assets

     Group  -  Mineral property development costs
                              Parys                         Total
                           Mountain  Labrador  Dolaucothi
      Cost                        £         £         £         £
      At 1 April 2004    12,223,442         -   193,565  12,417,007
      Additions - own        57,094         -       500      57,594
        expenditure
      At 1 April 2005    12,280,536         -   194,065  12,474,601
      Additions - own       400,098    90,400         -     490,498
        expenditure
      At 31 March 2006   12,680,634    90,400   194,065  12,965,099

      Impairment provision
      At 1 April 2004 and
          2005           (7,200,000)       -         -   (7,200,000)
      Provided in year            -         -  (194,065)   (194,065)
      At 31 March 2006   (7,200,000)           (194,065) (7,394,065)

      Carrying amount
      Net book value 2006 5,480,634    90,400         -   5,571,034
      Net book value 2005 5,080,536        -    194,065   5,274,601

     Parys Mountain development expenditure incurred by the group is carried
     in the financial statements at cost less an impairment provision. The
     directors have given careful consideration to the value at which this
     development expenditure should be shown and are satisfied that in the
     financial environment forecast to prevail over the next few years, the
     fair value of the project exceeds the value shown in the balance sheet.
     Development expenditures at Dolaucothi are shown at cost to the group on
     acquisition in 1997, plus expenditures since then at cost, less an
     impairment provision. This impairment provision was made this year, as
     the directors decided, in view of the current lack of activity, that it
     would be prudent to make a provision against all the Dolaucothi mineral
     development expenditure.
     The realisation of these intangible fixed assets is subject to a number
     of significant potential risks. Should a project prove unsuccessful, the
     value included in the balance sheet would be written down to its net
     realisable value.

end