Angel Mining Plc* - Critical Financing Arranged with Major Funding in the Pipeline.

The arrangement of a $4.5 million bridging loan with FBC Holdings was announced today and will provide Angel Mining with the capital to advance its gold mine at Nalanaq to full production and the time to arrange its longer term funding for Black Angel. Interest on the new facility is payable at 10% per annum while a facility fee of $390,000 is payable and the loan and accrued interest is to be repaid on the 9th of August.

FBC has long been a friendly financer to Angel Mining, with the company already having advanced $16.5 million. Today's announcement takes that total to $21 million and will allow Angel to complete the CIP (Carbon in Pulp) plant at Nalunaq and have it operational in August. With cash flows being generated at Nalunaq and the expectation of a long term financing deal in place, Angel Mining anticipates being able to repay the new debt on the 9th of August.

Discussions with an unnamed third party are at an advanced stage and Angel Mining is optimistic that a $100 million debt facility will be in place shortly. This long term funding will be used to meet its repayments to FBC while also funding development at the lead and zinc Black Angel mine. Weather and funding issues have stifled development at Black Angel so far but, under the assumption of a smooth run now, Angel Mining hopes to complete construction of the upper cable car terminal this year and have the cable car system operational in the second quarter of 2011.

With the provision of financing a critical issue for the company, Angel Mining has warned that if it's alternative funding cannot be arranged it will not be in a position of meet its repayment obligations to FBC. However, CEO Nick Hall is upbeat and having "risen to the challenge of constructing the world's first underground gold processing plant incorporating cyanide leaching" the company nothing if not innovative in its solutions. While critical funding may be within reach and if that occurs the upside for investors is likely to be material, GE&CR has suspended its recommendation and target price until Angel's long term financing is confirmed.

^ year to 29th February

*Angel Mining is a corporate client of Bishopsgate Communications which is owned by RSH, the ultimate owner of GE&CR. The SF t1ps Smaller Companies Gold Fund which is managed by another RSH subsidiary owns Angel shares.

This research note cannot be regarded as impartial as GE&CR has been commissioned to produce it by Angel Mining*, it should be regarded as a marketing communication.

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