Issue of Equity

 
TIDMHMB 
 
 

  Hambledon Mining plc("Hambledon" or the "Company") 
 

  Proposed Placing to raise approximately GBP2.8 million 
 

  The Board of Hambledon announces that it has conditionally raised GBP2,814,000 (approximately GBP2.7 million net of expenses) by way of a placing of 46,900,000 new ordinary shares of 0.1p each in the capital of the Company ("Placing Shares") at 6 pence per share (together the "Placing"). 
 

  The net proceeds of the Placing will provide the Company with sufficient funds to immediately commence ordering of equipment for and development of underground operations at the Sekisovskoye mine in East Kazakhstan. The Directors anticipate that the lead time for delivery of some of the equipment could be five months and therefore wish to make an immediate start on ordering of the necessary equipment. 
 

  The Placing Shares will be subscribed for by certain new and existing institutional shareholders of the Company. The Placing is conditional, inter alia, on admission of the Placing Shares to trading on AIM ("Admission"). The Placing Shares will represent 9.09 per cent of the issued ordinary share capital of the Company as enlarged by the Placing and the total number of voting shares in issue immediately following Admission will be 516,089,233. The Placing is not underwritten but, as agent for the Company, Fairfax Securities I.S. PLC has conditionally placed 46,900,000 Placing Shares with certain institutional investors. 
 

  Application will be made to the London Stock Exchange plc for the Placing Shares to be admitted to trading on AIM and it is expected that admission will take place at 8.30 a.m. on 30 September 2009. The Placing Shares will, when issued, rank pari passu in all respects with the Company's existing ordinary shares of 0.1p each. 
 

  Commenting on today's news, Nicholas Bridgen, Chief Executive of Hambledon, said: Our institutional investors suggested to us that the time was right to accelerate the underground project. We are delighted that they have shown this confidence in us and supported us with further investment. Although it has always been an integral part of our plans, this will allow us to proceed immediately without waiting for the build up of cash flow from operations. The prospect of a significant increase in production is therefore taking a step nearer". 
 

  Enquiries: 
 
Hambledon Mining plc           Charles Zorab 
                               Telephone [phone] 
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Fairfax I.S. PLC               Ewan Leggat / Laura Littley 
Nominated Adviser and Broker   [phone] 
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