Alexander Mining plc-Royalty Licence Agreement Signed with Metalvalue Ltd.

Alexander Mining plc ('Alexander' or the 'Company') (TSX VENTURE:AXD)(AIM:AXM) - 

Alexander is pleased to report that it has signed an agreement (the 'Agreement')
with Metalvalue Ltd. ('Metalvalue') for the use of the Company's mineral
processing technology ('Leaching Technology'). Metalvalue is a successful
private business focused on the commercialisation of leading edge technologies
in the natural resources industry, including in the iron ore beneficiation and
steel business. It is run by its founder, Alain Honnart, an engineer who has a
distinguished career as a senior executive and expert in intellectual property
commercialisation within the global metals business. Whilst Group Industrial
Director with the French multi-national Vallourec Group, he successfully created
and managed several companies and joint ventures in China, Korea, India, Brazil,
Sweden, USA and Europe. 


Under the Agreement, which has a twenty year term (the 'Term'), Metalvalue has
been granted a non-exclusive and non-transferable licence to use and sub-licence
the Leaching Technology. This right is restricted to entities not on an
exclusion list agreed between Alexander and Metalvalue. Under the Agreement,
Metalvalue has the right to licence/sub-licence the Leaching Technology for
potential discrete projects for the development of a particular mineral resource
at a particular site. However, for specific favourable opportunities these terms
may be varied, at Alexander's sole discretion, to include multi-site licensing
or general agreements to maximise commercialisation for mutual benefit with
Metalvalue. For saleable metal product obtained from processing using the
Leaching Technology, Alexander will receive a gross sales royalty based on
normal industry practice. It is the intention that Metalvalue will identify new
targets for the Leaching Technology and will assist in bringing these into
production, using the Leaching Technology, thereby creating a new royalty stream
for Alexander. 


As a condition of the Agreement, Metalvalue has granted Alexander a put option
('Put Option') giving Alexander the right, at its sole discretion, between 1
September 2012 and 30 November 2012, to exercise the Put Option and require
Metalvalue to subscribe for 10,000,000 fully paid ordinary shares in the capital
of the Company at a price of 10 pence per share, for a total consideration of
GBP 1,000,000. 


Martin Rosser, Chief Executive Officer, said: "The agreement with Metalvalue is
a major commercial milestone for Alexander as it gives us the opportunity to
develop a lucrative business relationship. Metalvalue's Managing Director, Alain
Honnart, has extensive industry expertise and a proven record in commercialising
intellectual property, as well as having worldwide contacts at the highest
executive level which complement those of Alexander. We are already working on
significant opportunities with Metalvalue in three countries."


Forward Looking Statements 

This news release contains forward looking statements, being statements which
are not historical facts, including discussions of future plans and objectives.
There can be no assurance that such statements will prove accurate. Such
statements are necessarily based upon a number of estimates and assumptions that
are subject to numerous risks and uncertainties that could cause actual results
and future events to differ materially from those anticipated or projected.
Important factors that could cause actual results to differ materially from the
Company's expectations are in Company documents filed from time to time with the
TSX Venture Exchange and provincial securities regulators, most of which are
available at www.sedar.com. Although the Company does not anticipate any
objection, the Company is required under the rules of the TSX Venture Exchange
to obtain TSX Venture Exchange approval of the issuance of ordinary shares
underlying the Put Option prior to any exercise thereof. The Company disclaims
any intention or obligation to revise or update such statements unless required
by law. 


Notes for editors 

About Metalvalue Ltd. 

Metalvalue was formed in 2006 by its Managing Director and majority shareholder
Alain Honnart. Its focus is on commercialising new technology in the natural
resources sector by securing rights to utilise those technologies and the use
thereof on undervalued mineral deposits. 


Alain Honnart is a graduate materials engineer from the Ecole Centrale de Paris,
who also holds an MSc in Material Science from Harvard and an executive MBA from
HEC Paris. He is a respected worldwide expert in metal transformation and
production processes and has been a consultant and investor since founding
Metalvalue. He has a distinguished career, including 38 years with Vallourec
Group, (current market capitalisation US$5.4bn), a world leader in premium steel
and titanium tubular solutions, primarily serving the energy markets, as well as
other industrial applications with 22,000 employees, integrated manufacturing
facilities, advanced R&D, and a presence in more than 20 countries. Prior to
retiring in 2006, Alain Honnart was Group Industrial Director and CEO of
stainless steel and high alloys division and during his time with the company he
was on the executive committee and responsible, as part of his larger
assignment, for R&D and Intellectual Property. 


Among the other partners of Metalvalue Ltd, all experts in the field of metals
and mining, is Stephane Lamoine, also an engineer from Ecole Centrale de Paris,
and who brings his long experience in setting up and financing projects. This
enables Metalvalue to propose to its customers a whole range of services from
technical assessment, licence agreements and the financing of their projects.