Financial Update

Angel Mining plc (the "Company")
AIM: ANGM

Under the terms of the Company's financing agreements with FBC Holdings S a r l., the Company is required to make quarterly interest payments. The Company was not able to meet the most recent quarterly payment when the payment fell due and so is in breach of its financing agreements as a result of this non-payment.

The Company is in ongoing discussions with Cyrus Capital Partners LP, the agent under the financing agreements ("Cyrus"). Cyrus is working with the Company to seek to ensure continued access to liquidity for the Company in the short term while those discussions continue. Accordingly, Cyrus, as agent, has agreed two weeks forbearance on this default in order for the Company to implement a longer term solution and has also agreed to advance a further US$2.0 million, on the same terms as the previous loan agreement, which are summarised in the Company's announcement dated 12 October 2009, to allow the Company to meet its immediate commitments.

Angel Mining CEO, Nicholas Hall, commented:

"The team has worked hard to avoid a default on the Cyrus loan but delays in achieving full scale gold production and delays in securing the finance for Black Angel have contributed significantly to our current situation. Fortunately, we have the continued support of Cyrus and we are working with them to determine a sound financial base for the benefit of the long term future. We are also progressing other discussions regarding the finance for Black Angel and we are looking forward to gold production at Nalunaq providing positive cashflow from July/August. We will advise shareholders as soon as the details of our future financing plans are agreed and we will be issuing a more general update for shareholders shortly."