EMED Mining Provides Operational Update for Quarter Ended March 2013

EMED Mining Public Limited (“EMED Mining” or “the Company”), the Europe-based minerals development and exploration company, is pleased to announce the following operational update for the period 01 January 2013 to 31 March 2013. The full Quarterly Report, including consolidated Financial Statements and the Management Discussion and Analysis, will be issued by 14 May 2013.

Harry Anagnostaras-Adams, Managing Director of EMED Mining, commented:

“We are poised at a very delicate and exciting stage, working very closely with the authorities in Andalucía and making every effort to expedite the triggering of the Project, to start works in the second half of 2013 and ramp-up base production by the end of 2015.

“As announced earlier this week, the Company is now one step closer to restarting operations and is fully focused on ensuring that all permitting is in place as soon as possible. Confirmation from the Andalucian Department of Industry that we have satisfied the legal, technical and economic criteria for Administrative Standing (“AS”) of the Company’s mineral rights is another step in the right direction as is the formal confirmation of the remaining steps.

“Preparations of the project and its financing are progressed in parallel with permitting.”

Spain-Rio Tinto Copper Project

• The Start-Up Schedule currently maintains construction starting in H2-2013 and initial production in 2014 with the target date of end-2015 for commencing base case production of 37,000 tonnes per annum of copper in concentrate. The engineering, human resources and other preparatory activities will continue to advance as warranted by regulatory permitting, as set out herein.
• An updated NI 43-101 Independent Technical Report was published in February 2013 reporting that capital and operating costs are consistent with recent guidance provided by the Company.
• The Andalucian Government is progressing the permits required to commence site works in Q3-13:
  • Administrative Standing to be granted by the Department of Industry (administrative recognition of the Company’s Mineral Rights):
    • The Andalucian Department of Industry has cleared the Company’s economic, technical and legal capacities, and has formally written to advise that it intends to finalise Administrative Standing (administrative recognition of the Company’s Mineral Rights) upon:
      • Receipt of a preliminary report from the national civil works technical review agency CEDEX (Centro de Estudios y Experimentación de Obras Públicas) supporting the proposed conditions to be applied to tailings management, as already incorporated into the Company’s plans. The confirmatory investigations were completed last quarter and the report is due in May 2013 confirming the viability of the tailings management plan,and
      • Approval by the Department of Environment of the Environmental Plan (“AAU” or Unified Environmental Authorisation). The conditions of approval need to take into account all matters raised during the public comment period in 2012 and any matters raised by regulators or interested parties.
• In anticipation of the granting of Administrative Standing and approval of the Environmental Plan, the Company is updating the documents required to seek the permits in H2-13 which are necessary to trigger production in 2014 - the Final Restoration Plan and the Mining Permit:
  • The Final Restoration Plan: Requires updating for any conditions incorporated into the Environmental Plans approved by the Department of Environment (which will have already been through the relevant public comment periods), and then it, in turn, will proceed to final public comment and approval by the Department of Industry, and
  • The Mining Permit:
    • Is the regulatory approval of the Project required to commence operations. The documents have already been reviewed but will require updating for any conditions set when Administrative Standing is approved.
    • Is founded on the comprehensive documents already independently reviewed by the technical review agency for mining, IGME (Instituto Geológico y Minero de España). IGME’s supportive formal report was received in Q4-12.
    • The independent safety review of the tailings deposit is completed by CEDEX. Its initial report with supportive conclusions was received in Q4-12 and an update is due in Q2-13. This will facilitate finalisation of refinements.
• Insurance and Bonding for environmental commitments and protection of personnel entitlements: We have implemented the tailings deposit insurance policy with a civil liability cover of €180 million on a basis pre-agreed with the regulators. Bonding aspects are to be resolved when the Final Restoration Plan is approved and before operations can commence.
• Class B Mineral Resources: The Company progresses permits required to commence a feasibility study on the recycling of tailings through a joint venture. The public comment period has ended and only one negative comment was received, which however raised nothing of a material nature that had not already been taken into account in the Company's plans.
• Project finance and product marketing plans are being refined in parallel with the permitting progress.
• Drilling programmes are being planned for implementation during construction and target known areas of mineralisation which require further investigation to qualify under the NI-43-101 standards for inclusion in ore reserves and resources. This is to establish plans for expansion of output and/or mine life and will cover:
  • the targeted expansion of ore reserves on the Cerro Colorado Open Pit
  • the initial reporting of resources on the adjacent higher-grade underground mines which contain significant already-drilled but unmined mineralisation
  • the initial reporting of resources on the potentially recyclable tailings.
• Exploration programmes are also being considered for targeting:
  • undrilled zones beneath the known mineralisation in both open pit and underground deposits
  • the Company’s ancillary mineral concessions in the region of the Rio Tinto Copper Project.
• Rainwater Management has required activation of safety protocols as discussed with the regulatory authorities. The controlled discharge of excess rainwater to preserve the integrity and security of the facility during (force majeure) heavy winter rains serves to highlight the need for approval and installation of the planned infrastructure which includes rainwater diversion, treatment and recycling systems.
• EMED Tartessus Foundation has been incorporated to foster economic diversification in the surrounding communities and it is proposed that the Company’s annual contribution is supplemented by personnel and suppliers, subscribing 1% of their receipts from the Rio Tinto Copper Project.

Slovakia: In Slovakia, the Detva Gold Project focuses on community consultation as part of the processing of its application for the regulatory approval of its Mining Lease Area, which has already been approved at the District Level and has now been referred to the national regulator for ratification.

Corporate:

• The Cyprus banking crisis had no notable impact on the Company;
• Company officers may not exercise their expiring options until after the Company has emerged from the current closed period, which at this stage will be upon release of the Financial Statements and Management Discussion and Analysis for the quarter ended 31 March 2013.