Operational Update

Anglo Asian Mining PLC
11 October 2006



11 October 2006

                             ANGLO ASIAN MINING PLC

                        ('Anglo Asian' or 'the Company')


                               OPERATIONAL UPDATE


Anglo Asian Mining PLC (AIM: AAZ), the gold and copper development company with
projects in Azerbaijan, today issues the following operational update:



Gedabek



The Company is moving towards feasibility at its Gedabek gold, copper and silver
project in north-west Azerbaijan and a resource estimate is being prepared,
following an in-fill drilling programme on 40m x 40m spacing.  It is expected
that this resource estimate will be announced in November 2006 and follows the
two releases by the Company detailing encouraging results from drilling at
Gedabek made on 2 June 2006 and 24 August 2006.



Early indications show that a high proportion of the resource is amenable to
heap leaching and further metallurgical leaching tests are underway at SGS
Lakefield laboratories in Canada and at Gekko Systems in Australia.  Under a
heap leaching scenario the Directors estimate that an initial annual production
rate of 50,000 to 70,000 oz of gold with silver and copper credits can be
achieved.  Heap leaching is a less capital intensive option than the CIL/
flotation alternatives, resulting in both a lower capital cost and shorter
construction period.  It is therefore expected that under this option the
construction could be completed before the end of 2007 allowing production to
commence shortly thereafter.



The Company is in the process of commissioning a geophysical survey on the site
in order to establish potential extensions to the ore body.



Funding



In light of the positive drilling results and the encouraging metallurgical test
work at Gedabek, the Company has decided to direct all financial and human
resources towards this project with minimal focus on other contract areas.  The
Company is working towards early production at Gedabek as its first priority.



The Company has put in place a cost reduction programme throughout the
organisation with the aim of ensuring that the current cash resource is
sufficient to provide funding for the Company through to the end of 2007.  It is
anticipated that additional funding will be required to cover the capital and
working capital costs for the Gedabek project.  Should the heap leach option
continue to be the process of choice, the sale of the CIL plant now located in
Singapore will provide a significant proportion of the required funding and will
also allow construction to start in early 2007, pending the necessary government
approvals.



A decision on the plant will be taken when the results of the resource estimate
and current metallurgical test-work are completed in November 2006.



Gosha



Exploration work continues in the adits at the Gosha property, some 50km from
Gedabek.  The results of the adit sampling carried out to date are consistent
with the Soviet data incorporated in the Company's AIM Admission Document dated
26 July 2005 (the 'Admission Document'), which identified an inferred resource
of 424,000 oz gold.  Further limited evaluation and sampling of this prospect is
planned over the coming winter months



Ordubad



In light of the progress made at Gedabek and the prioritisation of early
production at this project, the exploration work in Ordubad will be put on hold
and the camp currently located in Ordubad will be relocated to Gedabek.



Previous releases on 17 January 2006 and 24 August 2006 detailed the outcome of
the work carried out to date, which is summarised as follows:



The drilling programme at Piyazbashi was completed in March 2006.  The results
of the drilling and adit sampling provided confirmation of gold grade in the
veins broadly in line with the Soviet data.  An assessment of the resource is
still to be completed.



Adit sampling at Shakardara, as announced in January 2006, was disappointing and
a brief drilling campaign did not provide any further encouragement.  In
addition, as reported in the same release, the retesting and resampling of grab
samples from the dump outside adit 12 gave two results around 1 gram per tonne
('g/t'), in contrast to the significantly higher grades of two grab samples
taken by Behre Dolbear, which were included in table 3.1 of the Admission
Document of 14.88 and 33.6 g/t gold. These discrepancies have been the subject
of discussion between the Company and Behre Dolbear, however, the Directors note
that the results of the said grab samples were excluded from Behre Dolbear's
resource estimates and project valuations stated in the Admission Document. The
Directors and their advisers therefore believe that the information released to
date on Shakardara provides an accurate summary of the situation.



Further methodical exploration work is planned in due course for the other
contract areas of Ordubad, namely Misdag, Diakahchy, Agyurt and Shalala and the
Company will also complete its assessment of Shakardara. The remainder of the
programme in Ordubad will be carried out when it is considered appropriate and
the utilisation of cash and human resources will not affect the chances of
success on the Gedabek project.  The Company has a minimum of two and a half
years under the Production Sharing Agreement to complete the exploration work in
this area.



Chief Geologist



To strengthen the Company's technical management, Mr Kevin Shugg has been
appointed as Chief Geologist.  Mr Shugg, an Australian, has extensive experience
in both exploration and mine geology and has previously worked in Central Asia.





-Ends-



For further details, please contact:



Anglo Asian Mining PLC        Gordon Lewis, Chief Executive     [phone]
                              Richard Round, Finance Director   [phone]

Numis Securities Limited      John Harrison                     [phone]

Parkgreen Communications      Victoria Thomas                   [phone]




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