Anglesey Mining PLC Annual Financial Report -3-


property. The reduction in the amounts capitalised was largely due to the 
drilling programme at Parys Mountain being completed in 2013 and to the 
additional costs of cancelling of a net profits royalty interest in 2013. 
 
The group's cash balance at 31 March 2014 was GBP289,097 (2013 - GBP670,345).The 
foreign exchange loss of GBP3,741 (2013 - gain GBP11,196) shown in the income 
statement arises on the cash balances held in Canadian dollars. 
 
At 31 March 2014 the company had 160,608,051 ordinary shares in issue, 
unchanged from last year. 
 
Employment, community, donations and environment 
 
The group is an equal opportunity employer in all respects and aims for high 
standards from and for its employees. It also aims to be a valued and 
responsible member of the communities which it affects or operates in. 
 
The group has no operations; consequently its effect on the environment is 
very slight, being limited to the operation of two small offices, where 
recycling and energy usage minimisation are taken seriously and encouraged. It 
is not practical or useful to quantify the effects of these measures. There 
are no social or community issues which require the provision of further 
information in this report. 
 
Risks and uncertainties 
 
In conducting its business the group faces a number of risks and uncertainties 
some of which have been described above in regard to particular projects. 
However, there are also risks and uncertainties of a nature common to all 
mineral projects and these are summarised below. 
 
General mining risks 
 
Actual results relating to, amongst other things, mineral reserves, mineral 
resources, results of exploration, capital costs, mining production costs and 
reclamation and post closure costs, could differ materially from those 
currently anticipated by reason of factors such as changes in general economic 
conditions and conditions in the financial markets, changes in demand and 
prices for minerals that the group expects to produce, legislative, 
environmental and other judicial, regulatory, political and competitive 
developments in areas in which the group operates, technological and 
operational difficulties encountered in connection with the group's 
activities, labour relations, costs and changing foreign exchange rates and 
other matters. 
 
The mining industry is competitive in all of its phases. There is aggressive 
competition within the mining industry for the discovery and acquisition of 
properties considered to have commercial potential. The group faces strong 
competition from other mining companies in connection with the acquisition and 
retention of properties, mineral claims, leases and other mineral interests as 
well as for the recruitment and retention of qualified employees and other 
personnel. 
 
Development and liquidity risk 
 
On occasions the group has relied upon largest shareholder, Juno Limited, for 
financial support and may be required to do so in the future to ensure the 
group will have adequate funds for its current activities. However in the 
absence of support from Juno Limited the group would be dependent on the 
proceeds of share issues or other sources of funding. Developing the Parys 
project will be dependent on raising further funds from various sources. 
 
Exploration and development 
 
Exploration for minerals and development of mining operations involve risks, 
many of which are outside the group's control. The group currently operates in 
politically stable environments and hence is unlikely to be subject to 
expropriation of its properties but exploration by its nature is subject to 
uncertainties and unforeseen or unwanted results are always possible. 
 
Metal prices 
 
The prices of metals fluctuate widely and are affected by many factors outside 
the group's control. The relative prices of metals and future expectations for 
such prices have a significant impact on the market sentiment for investment 
in mining and mineral exploration companies. Metal price fluctuations may be 
either exacerbated or mitigated by international currency fluctuations which 
affect the actual amount which might be received by the group in sterling. 
 
Foreign exchange 
 
LIM is a Canadian company and the value of the group's holding in LIM is 
affected by an exchange rate risk. Operations at Parys Mountain are in the UK 
and exchange rate risks are minor. The majority of the cash balance at the 
year-end was held in sterling - see notes 17 and 24. 
 
Permitting, environment and social 
 
The group holds planning permission for the development of the Parys Mountain 
property but further consents will be required to carry out proposed 
activities and these permits may be subject to various reclamation and 
operational conditions. 
 
Employees and personnel 
 
The group is dependent on the services of a small number of key executives 
including the chairman, chief executive and finance director. The loss of 
these persons or the group's inability to attract and retain additional highly 
skilled and experienced employees for the operations of LIM or any other areas 
in which the group might engage may adversely affect its business or future 
operations. At 31 March 2014 the company had six male directors and one male 
employee; there were no female directors or employees. 
 
Financial instruments 
 
The group's use of financial instruments is described in note 24. 
 
Approved by the board of directors and signed on its behalf 
 
Bill Hooley 
 
Chief executive officer 
 
30 July 2014 
 
 
Diectors' report 
 
The directors are pleased to submit their report and the audited accounts for 
the year ended 31 March 2014. 
 
The corporate governance statement which follows forms part of this report. In 
accordance with statutory requirements introduced this year, the principal 
activities of the group and certain other information are set out in the 
strategic report section preceding this report. 
 
Directors 
 
The names of the directors with biographical details are shown on the inside 
rear cover. It is the company's procedure to submit re-election resolutions 
for all directors at each annual general meeting. Ian Cuthbertson retired on 
31 July 2013 and Danesh Varma was appointed as finance director and company 
secretary. 
 
The company maintains a directors' and officers' liability policy on normal 
commercial terms which includes third party indemnity provisions. The powers 
of the directors are described in the Corporate Governance Report. 
 
With regard to the appointment and replacement of directors, the company is 
governed by its Articles, the Corporate Governance Code, the Companies Act and 
related legislation. The Articles themselves may be amended by special 
resolution of the shareholders. Under the Articles, any director appointed by 
the board during the year must retire at the AGM following his appointment. In 
addition, the Articles require that one-third of the remaining directors 
retire by rotation at each general meeting and seek re-appointment. However it 
is now the company's practice to submit re-election resolutions for all 
directors at each AGM. 
 
Directors' interests in material contracts 
 
Juno Limited (Juno), which is registered in Bermuda, holds 36.1% of the 
company's ordinary share capital. The company has a controlling shareholder 
agreement and working capital agreement with Juno. Advances made under the 
working capital agreement are shown in note 19. Apart from interest charges 
there were no transactions between the group and Juno or its group during the 
year. An independent committee reviews and approves any transactions and 
potential transactions with Juno. Danesh Varma is a director and, through his 
family interests, a significant shareholder of Juno. 
 
John Kearney is chairman and chief executive of LIM, Bill Hooley is a director 
and vice-chairman of LIM and Danesh Varma is a director of LIM. All three are 
shareholders of LIM, are entitled to remuneration from LIM. There are no 
transactions between LIM, the group and the company which are required to be 
disclosed. 
 
In May 2014 Bill Hooley and Danesh Varma were appointed as directors of 
Grangesberg Iron AB; further details of these appointments are included in the 
strategic report. 
 
There are no other contracts of significance in which any director has or had 
during the year a material interest. 
 
Substantial shareholders 
 
At 14 July 2014 the following shareholder had advised the company of an 
interest in the issued ordinary share capital: Juno Limited notified an 
interest in 57,924,248 shares representing 36.1% of the issued ordinary 
shares. 
 
Shares 
 
Allotment authorities and disapplication of pre-emption rights 
 
The directors would usually wish to allot any new share capital on a 
pre-emptive basis, however in the light of the group's potential requirement 
to raise further funds for the acquisition of new mineral ventures, other 
activities and working capital, they believe that it is appropriate to have a 
larger amount available for issue at their discretion without pre-emption than 
is normal or recommended for larger listed companies. At this year's annual 
general meeting, the directors will seek a renewal and replacement of the 
company's existing share allotment authorities. 
 
The authority sought in resolution 13 of the notice of the AGM is for two 
purposes and in aggregate is to enable the directors to allot shares up to a 
nominal value of GBP840,000 (84,000,000 ordinary shares). The first purpose is 
to allow the directors to allot new shares and grant rights to subscribe for, 
or convert other securities into shares, up to a nominal value of GBP540,000 
(54,000,000 ordinary shares) which is approximately one third of the total 
issued ordinary share capital of the company as at 14 July 2014. The directors 
will consider issuing shares if they believe it would be appropriate to do so 
in respect of business opportunities that arise consistent with the company's 
strategic objectives. The directors have no present intention of exercising
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