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Thought it worthbring to your attention as news by end of August,via laresr RNS.

RNS Number : 3987Q
Anglo Asian Mining PLC
03 August 2010
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Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector: Mining
3 August 2010
Anglo Asian Mining plc ('Anglo Asian' or 'the Company')
Phase I of the Realistic Mineral Resources Model Report - Gedabek Update

Anglo Asian Mining plc, the AIM quoted gold producer, announces that it has been
advised by its mining consultants, SGS Mineral Services ('SGS'), that the final
JORC compliant resource results of Phase I of the Realistic Mineral Resources
Model Report ('the Report') at the Company's Gedabek gold/copper mine in
Azerbaijan ('Gedabek'), are now expected to be available by the end of August
2010. The resource upgrade, which SGS has indicated will exceed existing
figures by at least 50% for the measured, indicated and inferred gold, copper
and silver metal contents at Gedabek (RNS:13 April 2010), is well progressed,
however additional work required at the modelling stage has necessitated a
longer timetable than expected. Gedabek's resource currently stands at 702,000
ounces of gold, 37,500 tonnes of copper and 6,100,000 ounces of silver.

The Report represents the first phase of SGS's work; the second phase of the
project will involve in-fill drilling to increase the reliability of the results
obtained from the original drill holes and for metallurgical/environmental
assessment of the mineralisation. This work is expected to be completed in Q4
2010/Q1 2011 and will increase the Board's confidence in the new resource
evaluations. It is the Board's intention to prepare a new Mineral Reserves
Statement after completion of the second phase of the project in order to comply
with the JORC Code for producing mines by first half of 2011.
**ENDS**

http://www.investegate.co.uk/Article.aspx?id=201101100700051330Z
http://www.investegate.co.uk/Article.aspx?id=201104060700073739E

http://www.investegate.co.uk/Article.aspx?id=201105260700112995H

http://www.investegate.co.uk/Article.aspx?id=201107110700080987K


http://www.kitco.com
 Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector: Mining 15 June 2011 Anglo
http://www.investegate.co.uk/Article.aspx?id=201110250700257564Q
http://www.investegate.co.uk/Article.aspx?id=201205100700130166D
http://www.investegate.co.uk/Article.aspx?id=201205230700128773D
http://www.investegate.co.uk/Article.aspx?id=201206070700058471E
http://www.moneyam.com/action/news/showArticle?id=4448509
http://www.investegate.co.uk/Article.aspx?id=201210080700051083O
http://www.investegate.co.uk/anglo-asian-mining-%28aaz%29/rns/q4-2012-production-and-operations-update--gedabek/201301090700061182V/
http://www.investegate.co.uk/anglo-asian-mining--aaz-/rns/gedabek---gosha-gold-mining-update-azerbaijan/201309110700106797N/
http://www.investegate.co.uk/anglo-asian-mining--aaz-/rns/interim-results/201309260700089223O/
http://www.investegate.co.uk/anglo-asian-mining--aaz-/rns/record-gold-production-q3-2013---gedabek/201310100700081597Q/
http://www.moneyam.com/action/news/showArticle?id=4728736

http://www.investegate.co.uk/Article.aspx?id=201105260700112995H

Results yesterday seemed very good for Anglo Asian. It seems to be moving forward with increased production, cash generation and sizeable debt reduction. With PE 4/5.
I there anyone who can put a logical explanation to why the price should drop?

http://www.investegate.co.uk/Article.aspx?id=201106030700147941H

droppiing like a rock. :(

Price of gold firmly above 1500 and maybe soon testing 1600 (long term even more) that gives much more revenue even with the same 60 000 kozs.

Debt being reduced further, end of the year should be cleared completely.

Not even mentioning first transaction of copper and small quantity of silver + searching for new golden prospects around the area where the license is granted.

Trade volume is miserable, the only days when is higher than average is when is loosing another -5%.

Am I the only person seeing potential here????

!
http://ru.trend.az/capital/business/1886951.html

Transcript:
"Gold producer in Azerbaijan intends to raise up to $ 50 million as a loan
06.06.2011 13:39

Azerbaijan, Baku, 6 June / corr. Trend N. Ismayilova /

The company Anglo Asian Mining Plc, a manufacturer of gold in Azerbaijan, plans to discuss with the International Bank of Azerbaijan (IBA) ability to attract a loan of up to $ 50 million to build a new plant in Gedebey, told Trend CEO Reza Veziri.

"During the preparation of strategy and business plan of our consultants, it was determined that the gold content in the ore should reach 1.18 grams per tonne. Now, after the company commenced production, revealed that it contained in a volume of more than two grams," - Veziri said.

Therefore, he said, is the ore, where the gold content would exceed two grams per tonne, should be aimed at a new plant in Gedebey. The plant will allow extraction of mineral from the ore at 90 percent. Through chemical extraction company receives only 75 percent of gold. Remaining after the chemical extraction of 25 per cent of the company will also send at the plant for extraction of gold.

"Thus, the first phase of the project company requires a minimum of 30-35 million dollars. Now we want to apply for a loan to the bank, but also considering the implementation of the project due to the profit of the company," - said Veziri.

According to the Wazir, investment in the project could reach $ 50 million, but the first phase should not exceed $ 30 million. Now being prepared feasibility study for construction of the plant, which will be completed in three months. In July and August will also be determined by the desired amount of investment.

To date, payable to the company's main creditor - the International Bank of Azerbaijan is 21 million dollars.

The company Anglo Asian Mining PLC has the right to develop six fields in the south-west of Azerbaijan - Gedabey "," Ordubad "," Gosh Bulag "," Kyzyl Bulag "," Vejnali "and" Soyutlu "based on the signed in August 1997 Azerbaijani government on the type of PSA agreements. Under the contract, the fields will produce about 400 tons of gold, 2500 tons of silver and 1.5 million tons of copper."

Nice rise in today,probably to do with the above article?

Comments drom CEO,$1600/$2000oz ?

http://www.citywire.co.uk/money/gold-rises-to-highest-level-in-a-month/a497178?re=14531&ea=70918&utm_source=BulkEmail_Money_Daily&utm_medium=BulkEmail_Money_Daily&utm_campaign=BulkEmail_Money_Daily

A group of private investors are just back frim inspecting AAZ assets and meeting the CEO,here's the 1st contact from them.

We returned safely after an excellent trip to Azerbaijan. We gained much insight and are very impressed with operations. We return with great confidence in our investments. We will all be posting on iii and here shortly. FF

Thank you, we plan a comprehensive report and we do have some great pictures.
We are currently running our notes via management and others, our sentiment on the prospects are very positive, thanks for your patience.

Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector: Mining

15 June 2011

Anglo Asian Mining plc ('Anglo Asian' or 'the Company')

Gedabek Gold/Copper Mine and Gosha Contract Area Update



Anglo Asian Mining plc, the AIM listed gold producer, provides an update on exploration and development activities at its flagship Gedabek gold/copper mine ('Gedabek') and 300 sq km Gosha Contract Area ('Gosha') in Azerbaijan.



Overview

Defined exploration programme in place aimed at increasing Gedabek's resource, proving reserves and extending the life of mine - new JORC compliant reserve report expected to be available by H1 2012

Completed 2010 infill drilling programme at Gedabek including 61 drill holes over 6,000m - 45 bore hole assays received and remaining assays anticipated July 2011

Advanced Phase 2 of resource development programme at Gedabek - 30 drill holes over 6,000m completed of the planned 17,500m of drilling

Appointed mining consultants to conduct a feasibility study for new agitation leaching plant at Gedabek to improve total gold recovery and increase life of mine

Progressed Development and Production Programme at Gosha - due to be submitted to the Government of Azerbaijan in October 2011, with plan to develop a small gold mine commencing production 2H 2012



Anglo Asian CEO Reza Vaziri said, "Developing Gedabek's production and processing profile remains a key focus for Anglo Asian. We are therefore delighted to have advanced our Phase 2 resource development programme, which includes a 17,500m drilling programme and hope to issue a new JORC compliant reserve report at Gedebek by the first half of 2012. We are also pleased to have appointed mining consultants Arcardis Chile to undertake a feasibility study to build a new agitation leaching plant, which would, we believe, improve total gold recovery rates and increase the life of mine, currently standing at 300,000 ounces of gold over a six year period.



"We are also committed to increasing Anglo Asian's production profile through additional exploration programmes across our portfolio of prospective copper and gold assets in Azerbaijan. At Gosha we have initiated a development and production programme to be submitted to the Government of Azerbaijan in October 2011 with the mid-term intention to develop a small gold mine with production by the second half of 2012."



Gedabek



At Gedabek, the Company has implemented a defined exploration strategy aimed at increasing its resource, proving reserves and extending its life of mine, which currently stands at six years with a targeted production in excess of 300,000 oz of gold. Anglo Asian's current JORC compliant resource, measured at June 2010, stands at 791,000 oz of gold, 49,300 tonnes of copper and 7,597,000 oz of silver at cut-off grade of 0.3 g/t gold for all categories.



Results from the 61 hole 6,000m infill drilling conducted in 2010, which concentrated within the boundaries of the existing pit to increase the confidence in the resource of the Gedabek mine, are expected in July 2011.



Phase 2 of the resource development programme is now underway. To date, 30 drill holes over 6,000m have been completed under the 17,500m drilling programme, which is primarily concentrating on exploration of the existing pit boundaries and target areas in close proximity to the mine such as Choplan and Maarif. This programme has been divided as follows:



7,500m to be drilled in an area that borders the existing mine and will concentrate on an area underground at a depth of 200 to 350 metres - 5,000m completed to date;

7,000m of drilling at Maarif and other areas in the Gedabek Contract Area - 1,000m completed to date; and

3,000m of drilling at Cholpan, a highly prospective area in close proximity to the existing mine.



In terms of Gedabek's mine development, the Company has entered an agreement with mining consultants Arcardis Chile with regards to undertaking a feasibility study to build a new agitation leaching plant This plant would process high grade ore and additional resources that are not suitable for heap leaching, thereby improving total gold recovery rates at Gedabek. Agitation leaching recovery rates for mineral extraction are typically measured at over 90% compared to circa 70% usually recorded in heap leaching. Additionally, residual gold in high grade ore that has been processed by heap leaching and left on the heap leach pad during 2009 through to the end of 2011 could be processed through agitation leaching, again improving total mineral extraction from Gedabek's orebody.



The Company expects the feasibility study to be completed by October 2011 and a new JORC compliant reserve report to be available by early 2012.



On completion of the feasibility study to construct an agitation leaching plant and a review of the financing options, a decision as to whether to build the plant will be made.



Gosha



As previously announced, the Company submitted a Notice of Discovery to the Government of Azerbaijan in February 2011 following active exploration in 2010. This included 3,000m of drilling and 300m of adit and sampling work. According to the terms of the Product Sharing Agreement ('PSA'), Anglo Asian has to submit a Development and Production Programme to the Government of Azerbaijan for approval. The Development and Production Programme is now underway and is expected to be finalised in October 2011. It is the Company's intention to develop a small gold mine with production by 2H 2012.



Under the PSA, the Government of Azerbaijan would receive 12.75% of any gold produced at Gosha until Anglo Asian has recovered its capital, operating and financing costs in full at which point the Government of Azerbaijan is then entitled to a 51% share of profit. It should be noted that costs incurred on Gosha can only be recovered from revenue generated from the Gosha Contract Area.





**ENDS**



For further information please visit www.aamining.com or contact:






Reza Vaziri


Anglo Asian Mining plc


Tel: +994 12 596 3350




Andrew Herbert


Anglo Asian Mining plc


Tel: +994 12 596 3350




John Harrison


Numis Securities Limited, as Nominated Adviser


Tel: +44 (0) 20 7260 1000




James Black


Numis Securities Limited, as Corporate Broker


Tel: +44 (0) 20 7260 1000




Felicity Edwards


St Brides Media & Finance Ltd


Tel: +44 (0) 20 7236 1177




Hugo de Salis


St Brides Media & Finance Ltd


Tel: +44 (0) 20 7236 1177




Notes:

Anglo Asian Mining plc (AIM:AAZ) is a gold producer in Central Asia with a broad portfolio of production and exploration assets in Azerbaijan. The Company has a 1,962 sq km prospective exploration portfolio, assembled on the back of analysis of historic Soviet geological data and held under a Production Sharing Agreement ('PSA') based on the Azeri oil industry. The Company developed Azerbaijan's first operating gold/copper mine, Gedabek, which commenced gold production in May 2009. Gold production for the year ended 31 December 2010 totalled 67,267 oz of gold.



Anglo Asian is actively looking to exploit its first mover advantage in Azerbaijan to identify additional projects, as well as looking for other properties in Central Asia and Caucasia in order to fulfil its expansion ambitions and become a mid-tier gold and base metal production company focussed in these regions.

Post from one of the private investors who visited Azerbiajan.

The tourists have produced a detailed report of their visit to Azerbaijan. We had hoped to release it on advfn this week.

Various legal and compliance issues have got in the way and prevented us from meeting this deadline. We hope to be able to release our report next week.

As you can imagine we do not want to inadvertently fall foul of the law on market abuse so we are moving forward with great care.

As has been reported here and on iii we had a very positive trip and feel optimistic about the Company's future.

I dont understand the 50% drop in share price since January.
Gold price has increased to over 1500$ and so profits have increased.
Plus they plan to produce 25000 to 30000 ounces of gold next year at the Gosha field.
Add this to their existing 60000 ounces of gold per year from Gedabek.
Plus the silver & copper.
On present share price the company is valued at 44m which I think is
way undervalued.
I bought in at 58p and added last Friday at 42p.
Patience required here.

http://kingworldnews.com/kingworldnews/Broadcast/Entries/2011/6/19_KWN_Special__Jim_Sinclair_&_Dan_Norcini_files/Jim%20Sinclair%20Dan%20Norcini%206%3A19%3A2011.mp3

Some feed back from one of the PI's who visited AAZ.

I met lots of people and talked to lots of people. The above was the impression I received and was not all from the company but some may have been closer than I to the Azerii mining world. I was happy that they are pushing hard and that there will be iterative pieces of good news.

Look at the last RNS, read the next one. Their emphasis is on proving up the resource and they are very excited. We will have an update 1st week July and if the drill campaign is nearly finished then there will only be a remaining few samples to analyse in the lab. I suggested late August as a good time for the JORC and was told they thought the same.

I pointed out that getting the last few results back from the lab may take time but I was told that some negotiating may have been carried out to get this speeded up. What I also deduced was that they are getting some great results and that they have nearly finished, however, they may even consider adding a few more holes on to the schedule as everywhere they hit seems to find gold - lots of hits good but if they find the mother load then the game changes...

Bleepy, these guys are cautious and are not willing to release news willy-nilly, any rumours we hear are clues as to activity and what they are up to. We will hear about it soon enough and when it's actually completed - I am now confident that it's not far off and I am happy to forget about things rather than stressing watching the screen.

So we have 1 definite, 1 strong possibility pieces of news in the next few weeks. And one bumper piece relating to a JORC closely following - best scenario August but it may be best if it was strategically positioned either side of October's natural quarterly production update.

Hopefully any bad weather has not affected production targets. Numis now need to work on getting interest in the stock from bigger buyers. I would say tht London's Iranian Finance community would be the best place to begin....

.

http://www.khaleejtimes.com/biz/inside.asp?xfile=/data/business/2011/June/business_June483.xmlion=business

http://www.investegate.co.uk/Article.aspx?id=201107110700080987K

Reply to a PI from CFO.

Hi Steve
The drill results we will be putting out are for 6,000m of infill drilling within the Gedabek pit. We expect to release these results in August. As well as the 6,000m drilling, we are undertaking approximately 8,000m of step out drilling (of which we are half way through) from the Gedabek pit and further drilling in the Gedabek Contract Area. The redefined JORC compliant reserve that we aim to get out in H1,2012 will take in to the account the results of the step out drilling.

I hope this is clear but please let me know if not

Best Regards
Andrew Herbert
Chief Financial Officer
Anglo Asian Mining PLC

niceonecyril nice one:) I'm just afraid that this information will have no impact on price. Investors seem to be not as believing in the company and its potential. With gold being over $1600 steadily and cooper/silver add ons 44p seems to be very harsh valuation for this one

As Chavez Pulls Venezuela's Gold From JP Morgan, Is The Great Scramble For Physical Starting?
Submitted by Tyler Durden on 08/17/2011 16:27 -0400




In addition to the nationalization of his gold insutry, Chavez earlier also announced that he would recover virtually all gold that Venezuela hold abroad, starting with 99 tons of gold at the Bank of England. As the WSJ reported earlier, "The Bank of England recently received a request from the Venezuelan government about transferring the 99 tons of gold Venezuela holds in the bank back to Venezuela, said a person familiar with the matter. A spokesman from the Bank of England declined to comment whether Venezuela had any gold on deposit at the bank." That's great, but not really a gamechanger. After all the BOE should have said gold. What could well be a gamechanger is that according to an update from Bloomberg, Venezuela has gold with, you guessed it, JP Morgan, Barclays, and Bank Of Nova Scotia. As most know, JPM is one of the 5 vault banks. The fun begins if Chavez demands physical delivery of more than 10.6 tons of physical because as today's CME update of metal depository statistics, JPM only has 338,303 ounces of registered gold in storage. Or roughly 10.6 tons. A modest deposit of this size would cause some serious white hair at JPM as the bank scrambles to find the replacement gold, which has already been pledged about 100 times across the various paper markets. Keep an eye on gold in the illiquid after hour market. The overdue scramble for delivery may be about to begin.

From the CME:

Price of gold already testing $1900 , just reminder, last year average selling price for us was $1200 , so with the same quantity sold this year profit may be up 25% . As confirmed by the company they are benefiting from high prices by selling to the spot market.

E-mail to a PI,

We have completed all the necessary drilling and analysis of results of the 6,000 metre infill drilling. However, we need to get a QP sign off and we dont have anyone available in-house to do this. The QP we are using from a consulting company needs to familiarize himself with what we have done from the start of the process before he can sign off.

I do not want to give you a deadline at this stage, but just to reiterate that the work has already been completed and that the QP is going to complete his work as soon as possible

Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector: Mining

Anglo Asian Mining plc ('Anglo Asian' or 'the Company')
Interim Results

Anglo Asian Mining plc, the AIM listed emerging gold producer, is pleased to announce its interim results for the six months ended 30 June 2011.

Overview
Profit before tax up 129% to US$14.2 million (30 June 2010: US$6.2 million)
Gross profit up 62.5% to US$19.8 million (2010: US$12.3 million)
Revenue up 35.6% to US$38.5 million (2010: US$28.4 million)
Operating cash flows before movement in working capital of US$24.8 million (2010: US$18.6 million)
Gold production at Gedabek gold/copper mine for the six months to 30 June 2011 totalled 28,610 ounces of gold
Gold production target for FY 2011 between 58,000 ounces to 60,000 ounces
Produced gold at an average cash operating cost of US$445 per ounce of gold including the Government of Azerbaijan's share and US$524 per ounce of gold net of the Government of Azerbaijan's share
Feasibility study in progress for new agitation leaching plant at Gedabek to improve total gold recovery and increase life of mine
First sales of copper concentrate from SART operations at Gedabek recorded of US$2.1 million
Repaid US$12.6 million of loans to International Bank of Azerbaijan - outstanding loans at 30 June 2011 total US$18.0 million (2010: US$42.1 million)
Focussed on developing 1,962 sq km gold/copper exploration portfolio with the aim of replicating success at Gedabek and developing additional mining operations

Chairman's Statement

During the period under review we have continued our progress as a profitable gold mining company focussed in Central Asia, and have been active in developing and implementing plans to ensure the future growth and success of our flagship Gedabek gold/copper mine ('Gedabek') and two mining development Contract Areas, Gosha and Ordubad, in Azerbaijan. Additionally, we have implemented defined exploration and development programmes across each of these Contract Areas to delineate and upgrade our resource base, which currently stands at 791,000 ounces ('oz') of gold, 49,300 tonnes of copper and 7,597,000 oz of silver for all categories.

At Gedabek, the first gold mine in Azerbaijan in modern times, gold production for the six month period to 30 June 2011 totalled 28,610 oz (2010: 28,497 oz), with an average cash operating cost of US$445 per oz (2010: US$324) of gold including the Government of Azerbaijan's share and US$524 per oz (2010: US$372) of gold net of the Government of Azerbaijan's share. This low cash operating price is up slightly on last year mainly due to the increased consumption of chemicals and reagents, an increase in employee numbers, the impact of lower grade in 2011 compared to 2010 and general inflationary increases. In terms of gold sales completed for the first half of the year, Anglo Asian sold 24,586 oz at an average of US$1,450 per oz (2010: 24,460 oz at an average of US$1,155). As a result of solid gold sales, combined with the buoyant gold price environment, we have achieved a profit before tax of US$14.2 million (2010: US$6.2 million) and operating cash flow of US$16.2 million (2010: US$13.1 million) for the period.

Our headline gold production figure was 28,500 oz of gold, which was slightly behind management's target of 30,000 oz of gold for the half year period. This slight drop in gold production is due to a number of factors relating to a change in the physical characteristics of the ore, whereby a change in density and structure associated more with transitional ore is affecting the leach rates and in turn gold recovery and production. Channelling has also occurred in one of the cells as a result of harsh winter conditions.

In order to address these processing difficulties, we have implemented initiatives which include two-shift drilling for blasting and have employed additional excavators to accelerate waste removal. This will open up areas of known oxide ore over the Gedabek Mine, which will deliver the leaching characteristics more suitable to the heap leach process. We have also started to crush the ore more finely to help with cyanide leaching. Waste removal has increased to approximately 6,000m3 per day; this will rise further when our contractor steps up the haulage of waste to leach pad # 4.

In terms of processing, during the first half of the year we transferred 418,526 tonnes of dry ore onto the leach pad with an average gold content of 3.34 g/t (2010: 370,000 tonnes at an average grade of 4.4 g/t). The reduced grade in 2011 is in line with expectations from the Company's mine plan.

To ensure the long-term success of Gedabek as a leading gold/ copper mine in the Central Asian region we are continually looking at ways to improve operational efficiencies and production. One primary measure of the efficiency of the plant is the gold recovery rate, and in view of this we have entered into an agreement with mining consultants Arcardis Chile with regards to undertaking a feasibility study to assess the potential benefits of building a new agitation leaching plant. This plant would process high grade ore and additional resources that are not suitable for heap leaching, thereby improving total gold recoveries at Gedabek. Agitation leaching recovery rates for mineral extraction are typically measured at over 90% compared to circa 70% typically achieved in heap leaching. Additionally, residual gold in high grade ore that has been processed by heap leaching and left on the heap leach pad during 2009 through to the end of 2011 could be processed through agitation leaching, again improving total metal extraction from Gedabek's orebody. We are expecting the feasibility study to be completed by October 2011 and look forward to reporting on these developments in due course.

In terms of copper production at Gedabek, our Sulphidisation, Acidification, Recycling, and Thickening ('SART') plant, which recovers copper in the form of a precipitated copper sulphide concentrate containing silver with commercial value, has seen increased production. Copper concentrate produced for the first half of the year totalled 433 tonnes, which contained 261 recovered tonnes of copper, 50,739 oz of silver and an additional 109 oz of gold. The SART plant is currently running at 75% capacity and we are on track to achieve the production budgets. The SART plant's full capacity is 1,800 tonnes of copper concentrate with copper recoveries projected to be 50-70% and silver recoveries of 4,000 - 6,000 g/t.

We recorded our first copper concentrate sales in the first half of 2011. Revenue of US$2.1 million was generated from the Company's 87.25% share of the sale of 90 tonnes of payable copper, 29,132 oz of payable silver and 335 oz of payable gold. Subsequent to the period end, further shipments of copper concentrate have been loaded and sales will be finalised over the coming months. At the end of August 2011, there was a stockpile of copper concentrate containing approximately 383 tonnes of copper, 2,422 kg of silver and 3kg of gold. We are in discussions with our government partners and potential buyers about the sale of this stockpile and expect to sign an agreement in regards to this in the near future.

Exploration remains an important part of our focus to increase our current resource base at Gedabek of 791,000 oz of gold 49,300 tonnes of copper and 7,597,000 oz of silver for all categories and define maiden resources at Gosha and Ordubad Contract Areas to prove their economic potential and in turn develop additional mining operations.

In order to increase the life of mine at Gedabek, which currently stands at 300,000 oz of gold over a six year period, we have undertaken an advanced exploration programme comprising a two phase drilling programme. Phase 1 drilling, which was completed February 2011, comprised 61 holes over 6,000m and concentrated within the boundaries of the existing pit. The results, which are presently being assessed by a third party Qualified Person, will be announced to the market shortly. In the first quarter of 2011 we commenced Phase 2 of the exploration programme. So far 47 drill holes with a total of 7,150m of drilling have been completed and some of the assays have been received. Further drill holes have been planned as the ore body shows extensions towards the south of the mine.

Other exploration activities continue within the Gedabek Contract Area, namely at the Maarif target. To date, 1,630m of the planned 3,000m drilling programme (previously 7,000m) has been completed at Maarif, and the samples have been sent for independent assay. Priority for drilling equipment has been given to Phase 2 drilling at Gedabek, which has lead to the Maarif programme being reduced for the year. Drilling was also due to take place at the Cholpan target, a highly prospective area in close proximity to the existing mine, but this has been delayed whilst further geological mapping is undertaken prior to commencing drilling. Additionally, remote sensing has been conducted across the entire Gedabek Contract Area with several potential anomalies detected for further investigations, which are planned for 2012.

It is our intention to issue an upgraded JORC resource report by the first quarter of 2012 with a JORC compliant reserve estimate to follow soon after.

At Gosha, during the period we were delighted to announce that we submitted a Notice of Discovery to the Government of Azerbaijan, following an active exploration programme in 2010, which included 3,000m of drilling and 300m of adit and sample work. We are on course to submit a Development and Production Programme in October 2011 to the Government as per the Product Sharing Agreement ('PSA') rules and we will update shareholders on the programme's approval in due course. It is the Company's intention to develop a small gold mine with production by the second half of 2012.

Exploration work continues in the Ordubad Contract Area focusing on the Agyurt deposit. The Soviet-era galleries have been re-sampled and further underground drilling is planned for 2011.

We continue to work closely with the Government of Azerbaijan and are pleased with the level of support it gives us. Additionally, we have a strong relationship with the International Bank of Azerbaijan ('IBA'), which is majority owned by the Government of Azerbaijan. During the first half of 2011 we repaid US$12.6 million of our loan with the IBA, bringing the outstanding loan balance to US$17.0 million as at 30 June 2011. Including our loan of US$1.0 million from our CEO Reza Vaziri, the value of total outstanding loans at 30 June 2011 is US$18.0 million (2010: US$42.1 million). A further repayment of US$1.0 million has been made subsequent to the balance sheet date. The next repayment to IBA of US$0.6 million is due in March 2012, although the Company will continue to repay this loan ahead of schedule as cash flow allows.

As mentioned earlier, we have a PSA with the Government of Azerbaijan whereby until the time Anglo Asian has recovered its carried forward, unrecovered costs, the Government of Azerbaijan effectively takes 12.75% of the commercial products of each mine, with the Company taking 87.25%. We expect to continue retaining 87.25% of the commercial products until at least the end of 2011.

The Company made a profit before tax of US$14.2 million in the period to 30 June 2010 (2010: US$6.2 million). Revenue of US$38.5 million (2010: US$28.4 million) was generated from gold sales of 24,586 oz (2010: 24,360 oz) at an average price of $1,450 per oz (2010: US$1,155 per oz), silver sales of US$0.8 million (2010: US$0.3 million) and copper concentrate sales of US$2.1 million (2010: nil).

The cost of sales for the period amounted to US$18.7 million (2010: US$16.1 million), resulting in a gross profit of US$19.8 million (2010: US$12.3 million).

Administration costs were US$3.1 million (2010: US$2.3 million) and finance costs were US$1.9 million (2010: US$3.4 million), most of which related to interest on the loans from IBA.

Net cash inflow from operating activities was US$16.2 million (2010: US$13.1 million). This was utilised to fund the purchase of tangible assets of US$2.8 million, exploration expenditure of US$2.7 million, a reduction in loans of US$12.6 million and payment of interest of US$1.8 million.

Current assets have increased from US$25.8 million at 31 December 2010 to US$31.7 million at 30 June 2011 (2010: US$20.6 million). The increase is mostly as a result in increase of gold work in progress and finished inventory. Increased lead time on the leach pad has led to more ounces in stock and increased production cost has led to a higher cost per unit of stock, when compared to 31 December 2010. The other main factor affecting current assets is that the Company has made an advance payment of profit tax for 2011. Under the terms of the PSA, the Company must estimate its profit tax liability for the financial year and pay one-quarter of this amount within 25 days following the end of the calendar quarter in the form of an advance. Following the first quarter, an amount of US$2.1 million was paid (2010: nil). Subsequent to the balance sheet date, a further amount of US$2.1 million was paid. At the balance sheet date, the Company believes that it has unutilised carried-forward tax losses in its subsidiary, R.V. Investment Group Services LLC. However, the Company expects that these carried-forward tax losses will be fully exhausted within 2011 and profit tax will be assessed.

Maintaining good health, safety, social and environmental standards remains a priority to us and in line with this we have a Health, Safety, Environment and Technology Committee ('HSET') at Board level, under the chairmanship of Professor John Monhemius, one of our Non-executive Directors. This committee has the responsibility to oversee all aspects of the HSET performance of the Company and to make recommendations to the Board. During the period we appointed an experienced Health, Safety and Environment manager as a full-time member of our corporate management team. We have approximately 450 personnel working in the Company.

With the buoyant gold price set to continue and speculation that the price range of US$1,700 to US$1,900 will be maintained, we remain confident of the on-going profitability and success of our flagship Gedabek operation. Positive actions are being taken to ensure the smooth running of gold production for the remainder of the financial year and beyond. In addition, copper production has been increasing quarter on quarter, which will add increased profitability to our bottom line once sales of the concentrate have been finalised further. I also look forward to reporting on the development of our extensive exploration portfolio and in turn achieving our milestones towards building a multiple gold mine company.

Last but not least, I would like to thank the employees, my fellow Directors, advisors and shareholders for their continued support and I look forward to updating investors regularly on the progress of Anglo Asian, a highly profitable, cash-generative, producing gold and copper company in Azerbaijan.

Khosrow Zamani
Non-executive Chairman