Financial Update

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

Highlights

• Additional bridging loan of US$4.5 million from FBC Holdings Sarl ("FBC")
• Angel Mining now has access to sufficient capital to allow it to move into full production and achieve positive cashflow
• The Board of Angel Mining, the Greenland focused mining company, is pleased to provide the following financial update.

Introduction

On 24 May 2010, the Company announced that it was in default in relation to its financing agreements with FBC and that it was in discussions with Cyrus Capital Partners, L.P., the agent under the financing agreements ("Cyrus"), to ensure continued access to liquidity for the Company (the "24 May Announcement"). It was also announced that FBC subsequently advanced a further US$2.0 million, on the same terms as the previous loan agreement, which were summarised in the Company's announcement dated 12 October 2009. This brought the total amount due under this financing agreement to US$16.5 million plus accrued interest.

Cyrus, as agent, has agreed to advance an additional US$4.5 million (the "Bridging Finance") to Angel Mining for general working capital purposes, to fund operations at Nalunaq and to provide the Company with time to implement a longer term financing solution. This will bring the total indebtedness with FBC to US$21.0 million plus accrued interest.

The Company is also in advanced discussions with another party (the "Third Party") in relation to a significant new financing facility, pursuant to which it is anticipated that the Third Party will commit to a debt facility of US$100 million which will include associated equity subscription rights. Any arrangement with the Third Party will be subject to shareholder approval in a general meeting and a further announcement will be made shortly, if an agreement with the Third Party is reached.

Impact on the Company and its Operations

The Directors believe that these two funding facilities will offer Angel Mining a clear way forward to develop the Company's assets and will have demonstrable benefits for shareholders. Specifically:

· the Bridging Finance will be used for general working capital purposes and to fund operations at Nalunaq. As set out in the 24 May Announcement, the gravity plant at the Nalunaq Gold Mine has now been operating for five weeks producing gold concentrate. A polishing table has now been installed which separates out the iron and arsenopyrite leaving a gold concentrate suitable for producing a viable doré bar. With the additional funding from FBC secured, the Company is on schedule to complete the CIP plant and expects to have it in operation during August 2010; and

· the proposed Third Party facility, if executed, will be used, along with cash generated from operations,to meet the repayments required under the Company's financing agreements with FBC and to resolve the defaults that presently exist in relation to those agreements (the "Existing Defaults"). It will also be used to fund the development of the Black Angel lead and zinc mine. Delays in obtaining funding for the Black Angel project and weather related issues inherent in Arctic operations, have resulted in a revision to the construction programme such that, assuming the funding is secured from the Third Party, the Company plans to complete the construction of the upper terminal this year and to take the cables across the ice and then hang them during the winter. This would allow the Company to reduce the cost of completing the cable car which the Directors are now targeting to have operational by the end of Q2 2011. The provision of finance is critical to the revised programme. We are working closely with the Third Party to secure this finance facility as soon as possible and will update shareholders with our progress in due course. In the event that that the Third Party facility is not implemented, and until such time as it, or other alternative funding, is secured, the Existing Defaults will remain unresolved and the Company will not be in a position to meet the repayment obligations of the Bridging Finance.

Angel Mining CEO, Nicholas Hall, commented: "The continued support of Cyrus and FBC is very much appreciated as it should enable us to achieve full-scale production at Nalunaq resulting in positive operating cashflow for the first time in our history. We regret the delays in the commencement of production at Nalunaq but we have risen to the challenge of constructing the world's first underground gold processing plant incorporating cyanide leaching which will give us advantages in both operational efficiency and environmental controls. I remain confident that our negotiations with the Third Party will be concluded successfully and that we will have the funding to meet our obligations to repay FBC."

Further Details of the Bridging Finance

As stated above, the Company and Cyrus, as agent, have now signed an agreement under which FBC will provide an additional US$4.5 million. The Directors believe that this additional funding, which will be used for general working capital purposes and to fund operations at Nalunaq, should be sufficient to allow the Company to achieve positive cashflow later in the year.

Under the terms of the Bridging Finance:

• interest is payable quarterly at 10% per annum;
• a facility fee of US$390,000 is payable. US$100,000 is due on signing and the balance on repayment;
• the loan and any accrued interest is payable on 9 August 2010; and
• the Existing Defaults will remain unresolved until such time as the relevant repayments are met in full or FBC agrees to waive them. Until that time, FBC remain entitled to enforce the remedies within the terms of the original loan documentation.

Enquiries:
Angel Mining plc Nicholas Hall, Chief Executive	07931 709 053
Angel Mining plc Kevin McNair, Chief Financial Officer	07900 690 908
Fox-Davies Capital (Broker) Philip Davies	0207 936 5200
WH Ireland Limited  (Nominated Advisor) Dan Bate	0161 832 2174
Bishopsgate Communications Limited Michael Kinirons	0207 562 3350