Partnership Agreement in Turkey and Iran

21 February 2018

Alexander Mining plc

("Alexander" or the "Company")

Commercial and technical partnership agreement with Proses Mühendislik, Danışmanlık, İnşaat ve Tasarım AS. in Turkey, Iran and the rest of the Middle-East

·    Partnership agreed with Proses Mühendislik, Danışmanlık, İnşaat ve Tasarım AS ("Proses"), a mineral processing specialist consultancy based in Turkey, to investigate the commercial use of Alexander's base metals leaching technology.

·    Subject to securing the necessary funding, Proses proposes to design and construct a semi industrial scale processing plant ("SISP") using Alexander's technology in Turkey and/or Iran.

·    Proses plans to investigate a potential SISP at the world class Mehdiabad zinc project in Iran.

·    Potential for Alexander to agree a technology licence agreement with suitable project owners introduced by Proses, with an agreed success fee payable to Proses.

Alexander is delighted to announce that it has executed a commercial and technical partnership agreement ("Agreement") with Turkish specialist mineral processing consulting company Proses Mühendislik, Danışmanlık, İnşaat ve Tasarım AS ("Proses").  The Agreement covers the potential application and use of Alexander's proprietary processing technologies and know-how ("MetaLeach Technology") in the Middle East, including Turkey and Iran (collectively the "Territory"). 

The Agreement covers the terms and conditions of the use of MetaLeach Technology and appropriate partnership success fees, where due, for introductions made by Proses.

Martin Rosser, CEO, said: "We are delighted with this partnership agreement with Proses.  Proses is a highly regarded mineral processing consultancy with a strong presence in a part of the world that is highly prospective for our technology.  We very much look forward to working together for mutual benefit."

Proses and Alexander will, on a best efforts basis, investigate commercial opportunities for the use of MetaLeach Technology in the Territory.  Proses proposes it will design and construct a SISP (circa. 100,000-300,000 tonnes feed per year) either in Turkey or in Iran subject to securing the necessary funding.  Zinc oxide projects, especially in the Hakkari and Kayseri regions of Turkey and in Iran, are a particular focus but copper projects are also of interest.  Any such SISP would be built and operated with material input from Alexander and would be an excellent demonstration of the commercial value of MetaLeach Technology. 

Proses has advised that it will investigate a possible SISP at the world class Mehdiabad zinc (lead and silver) project in Iran where it has a role in development planning.  Mehdiabad, is a mixed oxide/sulphide deposit (split circa 40%/60% respectively), with some sulphide sections containing zinc carbonates in the host.  It is potentially one of the world's largest zinc mines, which the state-owned Iranian Mines and Mining Industries Development and Renovation Organisation (IMIDRO) expects to go on stream in the next four years.

In March 2017 IMIDRO said it had signed a deal with a consortium of six private companies, led by Iran's Mobin Mining and Construction Company for the project's development.  Mehdiabad has 154Mt of proven reserves, according to IMIDRO, with an exploration target of 700Mt.

Alexander will receive a gross sales revenue royalty on the value of the SISP product.  Subject to the results of the SISP, Alexander will negotiate with the project owners a technology licence agreement ("TLA") for the use of its MetaLeach Technology.  The TLA would be on Alexander's standard commercial terms and should include a gross sales revenue royalty on all commercial scale metal or high value-added processing plant product.

In addition, Proses may, on an independent best efforts basis and from time to time, make introductions to potential mining companies or projects in the Territory (each an "Opportunity") that may be of commercial interest to Alexander.  If so, where Alexander has agreed that a potential Opportunity is of interest (allowing for certain exclusions), Proses will provide material input to the review by Alexander of the Opportunity, to determine whether or not Alexander wishes to negotiate a TLA with the Opportunity owner(s). 

Where both Parties mutually agree, each Party may provide technical consulting services, either separately or jointly, to the third party owners.

About Proses

Proses (https://www.proseseng.com) was established in Turkey in 1997.  The main objective of the founders of the company was to provide the Turkish market with engineering and consulting services, especially in the base metals and precious metals production sector.  In addition to Turkey, Proses has been active in various base metals and precious metals sector projects in Azerbaijan and Saudi Arabia.

ENDS

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