Gedabek Project Update

Anglo Asian Mining PLC
18 June 2007


                                    

18 June 2007


                             ANGLO ASIAN MINING PLC

                        ('Anglo Asian' or 'the Company')


                            Gedabek Development Plan

                          Feasibility Study Completed


Anglo Asian Mining PLC (AIM:AAZ) the gold and copper development company with
projects in Azerbaijan, announces continued good progress on its Gedabek project
in West Azerbaijan.


Feasibility Study


The Company has completed a Feasibility Study on Gedabek, which shows the
development of the property to be both economically viable and robust. The study
identifies a mining reserve of 7.7 million tonnes of ore at grades of 1.80 grams
per tonne ('g/t') gold, 15.91 g/t silver and 0.29% copper. Gold, silver and
copper production over the mine life has been conservatively estimated to be
311,154 oz of gold, 1,959,109 oz of silver and 17,424,960 lbs of copper
respectively. Under the JORC code this reserve is in the 'probable' mineral
reserve category. Additional ore is expected to be found from the inferred ore
within the current pit boundaries, extensions of the mineralisation already
identified outside the pit and from old mine stockpiles produced from previous
underground mining.


Capital costs are estimated at US$30.7 million, including US$3.1 million of
working capital. The gross cash operating costs are estimated as US$283 per oz
of gold (US$147 per oz net of copper and silver credits). Together with the low
costs of operation and after metal credits, at current metal prices, the project
is expected to payback the capital investment within one year of production
commencing. Analysis of the Gedabek project shows that the Company will receive
63% of the pre-tax cashflows under the terms of the Production Sharing
Agreement.


As described in earlier announcements, the application of heap leach technology
from a low strip open pit mine, combined with the SART
(Sulphidation-Acidification-Recycle-Thickening) copper precipitation process
remains the preferred recovery method for the project.


CIL Plant and funding


The Company is currently marketing the CIL plant which is packed and ready for
transport in Singapore. Negotiations with several interested prospective buyers
are in process. It is expected that proceeds from the sale of the CIL plant will
fund a substantial amount of the construction work planned for this year at
Gedabek. Following completion of the feasibility study, the Company is now
exploring various options to meet the capital requirements of the Group.


Land and approvals


Following the identification of land requirements in May of this year, the
government have already assigned sufficient municipality land to the Company to
meet c.78% of the total requirement. The remaining land, which is privately
held, is in the final stages of negotiation.


Under the rules of the Production Sharing Agreement, the Company submitted a
Work Plan and Budget on 28 May 2007 for the current year and a Development and
Production Programme is ready for submission for the Gedabek project. These are
expected to be approved in coming weeks.


The Environmental Base-Line Study has been approved by the Ministry of Ecology
and Natural Resources, and the Environmental Impact Study was submitted for
approval on 11 June 2007. Approval is expected before the end of July of this
year. A Mining Licence application is in preparation for submission to the
Ministry of Emergency Situations, which is also responsible for explosives, mine
safety and health.


Construction of the main access roads into the mine, the leach pad area,
earthworks and foundations for the plant and crushing facilities and shell
buildings are all planned for the mild weather conditions between August and
December of this year. The mine is scheduled to finish the remaining
construction during the second quarter and commence production in the third
quarter of 2008.


Commenting on the latest developments, Chief Executive Gordon Lewis stated, 'The
results of the study are excellent news for the Company and place it in a strong
position in the Republic of Azerbaijan. Gedabek will be the first significant
gold mine in the country for several decades. These results bode well for
Azerbaijan and are an indication of the economic potential of the region for
gold and copper resources.'


-Ends-


Mr Gordon Lewis has approved the content of this announcement. He is a
professionally qualified mining engineer with over 30 years of relevant
experience in the mining industry and is a member of the Australasian Institute
of Mining and Metallurgy.


-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
Justine Howarth / Clare Irvine    [phone]




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