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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.

Financial Update

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

Further to the announcements of 30 June 2010 and 24 May 2010, the Company announced that it was in default in relation to its financing agreements with FBC Holdings S a r l ("FBC") and that it was in discussions with Cyrus Capital Partners Europe LLP., the agent under the financing agreements ("Cyrus"), to ensure continued access to liquidity for the Company (the "Announcements"). Cyrus, as agent, agreed a forbearance on this default which expired on 6 July 2010.

The Company is continuing its negotiations with both Cyrus and another party regarding the additional funding described in the announcement made by the Company on 22 June 2009 and is close to completing these negotiations.

Due to the fact that matters are near conclusion, the parties did not feel it necessary to formally extend the period of forbearance further. The Company anticipates updating the market more fully on the details of these financing arrangements shortly.

Financial Update

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

On 24 May 2010, the Company announced that it was in default in relation to its financing agreements with FBC Holdings S a r l ("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"). Cyrus, as agent, agreed a forbearance on this default which expired on 29 June 2010.

The Company is continuing its negotiations with both Cyrus and another party regarding the additional funding described in the announcement made by the Company on 22 June 2009 and a further announcement will be made in due course.

In light of the progress being made in both sets of discussions, Cyrus has confirmed that FBC's forbearance on the default described in the 24 May Announcement will continue until 6 July 2010.

Angel Mining CEO, Nicholas Hall, commented: "We very much appreciate the continued support of Cyrus and FBC which is enabling us to make substantial progress regarding additional funding, the details of which we hope to announce shortly."

Financial Update

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

On 24 May 2010, the Company announced that it was in default in relation to its financing agreements with FBC Holdings S a r l ("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"). Cyrus, as agent, agreed two weeks forbearance on this default. 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. On 10 June 2010, the Company announced that FBC had extended the period of forbearance until the close of business on 22 June 2010.

Cyrus have agreed in principle to provide the Company with additional funding which will allow it to reach a positive cashflow position and resolve all outstanding defaults relating to its present borrowings. This agreement is conditional upon, amongst other things, the Company raising additional funding for the development of the Black Angel zinc/lead project. The Company is in advanced discussions with another party regarding an additional significant funding facility which would, among other things, satisfy this requirement. The Company will make a further announcement in relation to the outcome of these discussions in due course.

In light of the progress being made in both sets of discussions, Cyrus has confirmed that FBC's forbearance on the default described in the 24 May Announcement will continue until 29 June 2010.

Financial Update

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

On 24 May 2010, the Company announced that it was in default in relation to its financing agreements with FBC Holdings S a r l (“FBC”) and that it was in discussions with Cyrus Capital Partners LP, the agent under the financing agreements ("Cyrus"), to ensure continued access to liquidity for the Company (the “24 May Announcement”). Cyrus, as agent, agreed two weeks forbearance on this default and 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.

The Company’s discussions with Cyrus regarding the financing arrangements with FBC continue and Cyrus have confirmed that FBC’s forbearance on the default described in the 24 May Announcement will continue until 22 June 2010.

Appointment of Director

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

The Board of Angel Mining, the Greenland focused mining company, is pleased to announce the appointment of Kevin McNair as Chief Financial Officer.

Kevin Hayes McNair, aged 43, has been appointed as CFO. He gained an MBA at London Business School having obtained a degree in Business Administration from William & Mary in Williamsburg, Virginia, USA. Kevin worked for Fremont Financial Corporation in Chicago, UBS Ltd in London and Zurich and for Granville Baird in London before becoming the Group Finance Director to the Boxwood Group. More recently, he was CFO at Enegi Oil Plc. Kevin has experience of financial management of AIM listed companies, a great understanding of financial markets, and is familiar with the needs of mineral resource based businesses.

In accordance with Schedule 2 of the AIM Rules, the following information is also disclosed:

Kevin Hayes McNair is currently or has in the past five years been a director of the following companies:

Current

• Asheville Richmond Limited

Past

• Enegi Oil Plc
• PDIP Inc.
• Boxwood Group Limited
• Certainty Group Facilities Management (Holdings) Limited
• Certainty Group Facilities Management Limited
• Certainty Group Security Services (Holdings) Limited
• Certainty Group Security Services Limited

In addition, Kevin Hayes McNair was appointed a director of Certainty Group Security Services (Holdings) Limited on 31 October 2002 and resigned on 1 December 2005. The company was placed into administration on 1 May 2006 as part of a larger group restructuring. He has been informed that there was no shortfall to creditors.

Kevin Hayes McNair was appointed a director of Boxwood Group Limited on 1 April 2003. On 15 December 2005, the business and assets of Boxwood Group Limited were acquired by Boxwood Limited as part of a pre-packed administration. He has been informed that there was no shortfall to creditors.

Kevin does not hold any ordinary shares in the Company.

There is no further information to disclose pursuant to AIM Rule 17 or Schedule 2, paragraph (g) of the AIM Rules.

Angel Mining CEO Nicholas Hall commented:

"I am delighted that we have been able to strengthen our team through the recruitment of Kevin McNair, who is already contributing significantly to the task in hand regarding future financing of the Company."