Annual Results

Eurasia Mining PLC
28 June 2005



Eurasia Mining Plc

28 June 2005



PRELIMINARY ANNOUNCEMENT OF AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 
31 DECEMBER 2004



Chairman's statement


I reported in my interim statement that 2004 was to be a year of consolidation
for the company, and our progress in line with that objective during the year
has left us well placed to exploit the opportunities we believe now offer the
best value for our shareholders. Having disposed of our South African interests,
we are now clearly focused on projects within Russia, and events since the
year-end have already advanced our position significantly.


In Russia, where Eurasia is now focusing its activity, the Government has
introduced major changes designed to open up opportunities to a wider range of
local and international investors. Whilst we welcome the intent of the changes,
these have been accompanied by moratoria on licence renewals and have limited
our activities on existing licences. We have used the time when we could not
conduct field work on our own projects to conduct field and data reviews on more
advanced projects in Russia. In parallel, we have been working on securing
future developments through further strategic alliances.


This culminated in the agreement in April 2005 of an important new partnership
with AngloGold Ashanti Limited ('AngloGold Ashanti'), the world's second-largest
gold producer, which brings us affordable access to potential projects in
eastern Siberia, currently one of the world's most promising areas of
prospectivity for hard-rock gold deposits. In the central Urals, where we have
continued work on our exploration and development alliance with Anglo Platinum
Limited ('Anglo Platinum'), we have sharpened our focus of exploration on our
joint prospects and applied for new exploration rights further to the north.


Taken together, these developments reflect the continued expansion and
strengthening of our activities in both platinum group metals and gold, the
latter becoming an important new element in our development strategy for the
company.



Kola


Eurasia is continuing with its plan to acquire three exploration licences on the
Kola Peninsula in north-west Russia, where early exploration results indicate
the presence of potentially commercial grades of platinum group metals (PGMs).


Together, the licences cover a total area of 450 sq km on a geological trend
where the Canadian mining groups Barrick Gold and Consolidated Puma Minerals
Corporation are carrying out advanced exploration and feasibility studies on
nearby deposits. Gold Fields Limited is completing feasibility studies on
deposits in similar trends across the border in Finland.


The Company has considered several alternative ways to fund the acquisition as
third parties (both Russian and overseas) have expressed interest in
participating in the projects. The company will select the best approach and
agree to final acquisition terms that will realise the best value for
shareholders.



The Urals


The Company continues to work on exploration and development of alluvial
projects in the Urals in a 50:50 joint venture with Anglo Platinum, who are
contributing 100% of the funding.


Commencement of test mining to include bulk sampling and metallurgical test work
planned for this year at West Kytlim has been delayed while we await resolution
of administrative issues related to the extended licence. We remain optimistic
for a re-commencement of work in the second half of 2005.



Successful geological reconnaissance well north of our current projects has
identified several new prospective areas for which licence applications are in
preparation.



Also in the Urals, the Company has applied for a new, reduced licence area to
cover the drill defined bedrock PGM and gold discoveries at Kluevsky and
Baronskoye in the Central Urals. Planned future work will focus on assessment of
metallurgical and mining characteristics of potential near surface bulk mineable
low grade resources, particularly at Kluevsky.



South Africa


Following the completion of our first stage drilling programme and a careful
appraisal of the new minerals legislation, we announced the sale of the Group's
mineral interests in South Africa in December 2004. The interests were sold to
Nkwe Platinum Limited, for a consideration in cash and shares, details of which
can be found in the Financial Statements. A further rationale for this decision
was to sharpen the company's focus on Russia, as well as provide additional
working capital for expansion of our activities in the Russian Gold sector.



AngloGold Ashanti and other alliances


Eurasia has established an exploration alliance with AngloGold Ashanti Limited,
the world's number two gold producer, covering gold and related mineral
exploration and possible development projects in eastern Siberia. The alliance
combines our country experience and exploration management skills in the region
with AngloGold Ashanti's resources.


The Eastern Siberian geological environment, particularly in the vicinity of the
intersection of the Siberian and Mongolia/China tectonic plate margins
represents one of the best endowed, yet least systematically explored regions of
the world for hard rock gold deposits. Historic production in the region was
dominated by placer mining of alluvial gold. Since the mid 20th Century a number
of large hard rock deposits have been explored and developed, Total resources in
these deposits, including previous production and known reserves, stands well in
excess of 65 million ounces, or 2,000 tonnes of gold.


The new agreement gives AngloGold Ashanti the exclusive right to participate in
projects proposed by Eurasia, which has been appraising potential prospects over
a period of 18 months in conjunction with local companies and government in the
region. AngloGold Ashanti will pay an entry fee of $100,000 and fund the first
$2 million of exploration spending in recognition of Eurasia's work to date.
Subsequent spending will be shared equally.


Our objective is to participate in the in the rapid advancement of a number of
projects towards feasibility study. The exploration alliance very considerably
extends the range and type of projects in which Eurasia can participate within
this highly prospective but increasingly more competitive environment for gold
project development. We look forward to early success.


Your company also continues independently to seek projects that will add value
to our portfolio by reviewing and potentially bidding for both prospective
mineral ground as well as advanced stage projects elsewhere in the country. In
this regard the company is working with a Russian partner to jointly acquire
advanced gold development and exploration properties.



Board and Management


The company is reorganising the board and will be adding new blood to strengthen
our developments in Russia. Following the AGM, Dr Michael Martineau will take
over the position of Chairman while I will remain as non-executive director.


Bill Anderson, our Operations director, has decided not to stand for
re-election, to allow for the extra operational time he wishes to devote to
developing the company's gold strategy for which he will now take the lead role.
Mr Ed Slowey, a geologist with broad experience in exploration, mining and
feasibility study management, including at the giant Sukhoi Log gold deposit in
Siberia, has been seconded to Eurasia from CSA Group Limited as part of an
alliance with this consulting group to supply key personnel in engineering and
geology. Ed will manage operations in Russia based out of our office in
Ekaterinburg.



Corporate Issues


The company is in the process of consolidating and simplifying the structure of
its holding companies in Cyprus. In anticipation of this we have written off the
investment in historic gold projects dating from the 1990s and written down, in
the company balance sheet, the related intra group indebtedness. The changes are
designed to reduce ongoing legal and management time and costs and provide a
structure more relevant to our developing activities.


Conclusion


The alliance with AngloGold and our joint venture with Anglo Platinum add great
substance to our work and strengthen our presence in Russia.  The new alliance
also recognizes the major progress we have made in Russia over the past two
years and illustrates the importance of patience and persistence in a vast and
well mineralized country.


Finally, I would like to thank the Board and staff for their continuing work and
contribution during the year, and also our advisors for their ongoing support.
With continuing healthy price projections for both platinum and gold, combined
with a steadily improving business environment in Russia, Eurasia is in a
strengthened position to capitalise on its investment and maximize the options
available to expand its business during 2005.



John Mitchell
Chairman





Consolidated Profit and Loss Account
For the year ended 31 December 2004


                                                          Continuing     Discontinued             Total         Total
                                                          operations       operations
                                                                2004             2004              2004          2003
                                                                   £                £                 £             £   

Impairment of assets                                      (1,008,003)        (453,374)       (1,461,377)      (52,337)

Other administrative expenses                               (726,811)               -          (726,811)     (472,406)
_______________________________________________________________________________________________________________________

Total administrative expenses and operating loss          (1,734,814)        (453,374)       (2,188,188)     (524,743)

Gain on disposal of subsidiaries                             569,627          199,992           769,619             -
_______________________________________________________________________________________________________________________

Loss after disposal of subsidiary                         (1,165,187)        (253,382)       (1,418,569)     (524,743)
______________________________________________________________________________________

Net interest payable / receivable & similar items                                               (69,239)     (103,285)
_______________________________________________________________________________________________________________________

Loss on ordinary activities before taxation                                                  (1,487,808)     (628,028)

Taxation                                                                                              -             -
_______________________________________________________________________________________________________________________

Loss on ordinary activities after taxation                                                   (1,487,808)     (628,028)

Minority interest                                                                                16,018        18,563
_______________________________________________________________________________________________________________________

Loss for the financial year                                                                  (1,471,790)     (609,465)

Loss per share                                                                                    (1.74)p       (1.01)p
_______________________________________________________________________________________________________________________


There were no profits or losses in 2003 in respect of 
the operations discontinued in 2004




Consolidated Balance Sheet
At 31 December 2004



                                                                                                   2004          2003
                                                                                                      £             £
Fixed assets
                                                                                             
Intangible - exploration, development and production                                                                 
             interests                                                                        1,316,485     2,803,835 
                                                                                                                     
Tangible                                                                                         40,160        94,320 
                                                                                             
Investments

Interest in joint venture                                                                      _______________________
                                                                                              |                       |
       Share of gross assets                                                                  | 735,326             - |
                                                                                              |                       |
       Share of gross liabilities                                                             |(107,046)            - |
                                                                                              |_______________________|

                                                                                                628,280             -

Other investments                                                                               154,018         1,108
_______________________________________________________________________________________________________________________

Total fixed assets                                                                            2,138,943     2,899,263
_______________________________________________________________________________________________________________________

Current assets

Debtors                                                                                         247,074        85,662

Cash at bank                                                                                     83,162     1,005,632
_______________________________________________________________________________________________________________________

Total current assets
                                                                                                330,236     1,091,294

Creditors - amounts falling due within one year                                                (237,442)     (225,959)
_______________________________________________________________________________________________________________________

Net current assets                                                                               92,794       865,335
_______________________________________________________________________________________________________________________

Total assets less current liabilities                                                         2,231,737     3,764,598

Creditors - amounts falling due after more than one year                                       (83,290)       (89,638)
_______________________________________________________________________________________________________________________

Net assets                                                                                   2,148,447      3,674,960
_______________________________________________________________________________________________________________________

Capital and reserves

Called-up share capital                                                                      4,250,586      4,210,586

Share premium account                                                                        7,100,374      7,092,374

Capital redemption reserve                                                                   3,539,906      3,539,906

Profit and loss account                                                                    (12,710,717)   (11,150,416)
_______________________________________________________________________________________________________________________
Equity shareholders' funds                                                                   2,180,149      3,692,450

Minority interest                                                                              (31,702)       (17,490)
_______________________________________________________________________________________________________________________

                                                                                             2,148,447      3,674,960
_______________________________________________________________________________________________________________________




Consolidated Cash Flow Statement
For the year ended 31 December 2004
                                                                                                  2004           2003
                                                                                                     £              £


Net cash outflow from operating activities                                                    (697,149)      (306,994)


Returns on investments and servicing of finance                                                 12,763            649

Capital expenditure and financial investment                                                  (443,584)      (489,760)

Acquisitions and disposals                                                                     157,500              -
_______________________________________________________________________________________________________________________

Net cash outflow before financing                                                             (970,470)      (796,105)

Financing:

Issue of ordinary shares                                                                        48,000      1,726,951
_______________________________________________________________________________________________________________________

(Decrease) / increase in cash in the period                                                   (922,470)       930,846
_______________________________________________________________________________________________________________________


Reconciliation of net cash flow to movement in net funds



(Decrease) / increase in cash in the period                                                    (922,470)      930,846
_______________________________________________________________________________________________________________________

Change in net funds resulting from cash flows                                                  (922,470)      930,846

Translation difference                                                                                -         4,142

Conversion of loan stock to equity                                                                    -       394,981
_______________________________________________________________________________________________________________________

Movement in net funds in the period                                                            (922,470)    1,329,969

Net funds/(debt) at 1 January                                                                 1,005,632      (324,337)
_______________________________________________________________________________________________________________________

Net funds at 31 December                                                                         83,162     1,005,632
_______________________________________________________________________________________________________________________


Notes

1.  The financial information set out above does not constitute the Group's 
    statutory accounts, as defined by section 240 of the Companies Act 1985,
    for the years ended 31 December 2004 or 2003 but is derived from those 
    accounts.  Statutory accounts for 2003 have been delivered to the Registrar 
    of Companies and those for 2004 will be delivered before 31 July 2005.  The 
    auditors have reported on those accounts; their reports were unqualified and 
    did not contain statements under section 237(2) or (3) of the Companies Act 
    1985.

2.  The loss per share is calculated by reference to the loss for the year of 
    £1,471,790 (2003: £609,465) and the weighted average number of Shares in
    issue during the year of 84,388,766 (2003: 60,476,830).  There is no 
    dilutive effect of share options or warrants.

3.  The financial information has been prepared under the historical cost
    convention and in accordance with applicable accounting standards.

   In common with many exploration companies, the Company raises finance for its
   exploration and appraisal activities in discrete tranches to finance its
   activities for limited periods only. Further funding is raised as and when
   required.

   The Directors are of the opinion that the Company will require to raise
   additional financial resources to enable the Group to undertake an optimal
   programme of exploration and appraisal activity over the next twelve months.
   Accordingly, the Directors intend either to raise further funds or to engage 
   an additional funding partner as appropriate during the course of the next 
   twelve months.

   Whilst the Directors are confident that the Group will be able to secure
   additional funding to enable it to continue to meet its debts as they fall 
   due and to undertake the programme described above for at least the next 
   twelve months from the date of approval of these financial statements, there 
   can be no guarantee that this will be the case.

   The financial statements do not include any adjustments, particularly in 
   respect of tangible fixed assets, stocks, investments, loans and provisions 
   for winding up which would be necessary if the Company and Group ceased to be 
   a going concern.


4. Reconciliation of operating loss to operating cash outflows
                                                                   



                                                                                                   2004          2003
                                                                                                      £             £

Operating loss                                                                               (2,188,188)     (524,743)

Depreciation charges                                                                             46,139         7,139

Impairment charge                                                                             1,461,377        52,337

(Increase)/decrease in debtors                                                                  (27,960)       62,204

Increase/(decrease) in creditors                                                                 11,483        96,069
_______________________________________________________________________________________________________________________

Net cash outflow from operating activities                                                     (697,149)     (306,994)
_______________________________________________________________________________________________________________________




5.  Copies of the Annual Report and Accounts for the year ended 31 December
    2004 will be posted to shareholders by 30 June 2005 and will be available, 
    free of charge, from the Company's registered office at 14 - 16 Regent 
    Street, London, SW1Y 4PH, for a period of 14 days from the date of their 
    posting.









For further information contact:



Michael Martineau/Christian Schaffalitzky, 
Eurasia Mining plc                                        [phone]

Michael Devilliers, Eurasia Mining plc:                   [phone]

Laurie Beevers, W H Ireland:                              [phone]

Allan Piper, First City Financial Public Relations:       [phone]

                                                          [phone]




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