19 December 2002

Interim Report  -  30 September 2002

Since publication of the annual report in August metal prices have remained low and the company has continued to minimize its activities in order to conserve its funds. Expenses during the period have been kept to a bare minimum and work on the development of Parys Mountain as a base metal mine was very limited. Other possible opportunities at Parys are receiving attention.

The financial results for the period show a loss of £68,773 compared to a loss of £51,116 in the same period last year. The increase is attributable to last year’s figures being somewhat below normal and to higher administration and share quotation expenses being incurred this year.

The outlook for base metal mining remains poor. Chinese production continues to influence the market, China now being the world’s largest producer of zinc. It is to be hoped that the recent admission of China to the World Trade Organisation will result in higher local consumption and better safety standards in Chinese mines both of which may have positive effects on the metal price.

In June 2002 a new working capital agreement was concluded with Juno Limited, the company’s largest shareholder, in order to provide funding for the company’s routine expenses. Negotiations continued with the lessor of the eastern part of the Parys Mountain property with regard to the settlement of outstanding rent and a reduction of the ongoing rent payable; no conclusion has yet been reached. Recently the company opened discussions with Intermine Limited, the holder of a 4% net profits royalty on base metal production, in an effort to seek alternatives to advance payments due until production commences and on the settlement of outstanding amounts payable.

The company has an important geological resource of 6.5 million tonnes at Parys Mountain which has been identified and described in independent geological reports. This resource is beyond and separate from the old workings and has a combined average grade for zinc, copper and lead of over 10%. There are also estimated to be 60,000 ounces of gold and 250 tonnes (8 million ounces) of silver in this resource. Parys Mountain will continue to be held, awaiting development in accordance the 1990 feasibility study, until metal prices improve.

Further exploration in planned at Parys Mountain with the objective of developing a significantly larger deposit which should support a higher production rate. A larger deposit would be economic at lower metal prices and would also result in a longer mine life than anticipated in the feasibility study. A drilling programme would form a major part of such exploration. New financing is essential for the company’s planned exploration and other programmes.

On behalf of the board of directors

John F Kearney

Chairman
19 December 2002

Unaudited consolidated balance sheet

		30 September 2002	30 September 2001
Fixed assets		£	£
	Intangible assets	7,126,666	9,255,884
	Tangible assets	185,136	185,407
	Total fixed assets	7,311,802	9,441,291
Current assets
	Debtors	103,535	100,938
	Cash	2,271	9,288
	Total current assets	105,806	110,226
Current liabilities (note 1)
	Creditors - amounts due within one year	(1,188,873)	(998,847)
	Net current liabilities	(1,083,067)	(888,621)
Net assets		6,228,735	8,552,670
Shareholders’ funds
	Share capital	6,673,247	6,673,247
	Share premium	5,737,146	5,737,346
	Profit & loss account – deficit	(6,181,658)	(3,857,923)
Total shareholders’ funds		6,228,735	8,552,670

 

	Equity shareholders’ funds	717,977	3,041,837
	Non equity shareholders’ funds	5,510,833	5,510,833

Notes : -

1 Current liabilities include £936,677 (2001 - £807,332) due to Juno Limited, the ultimate parent company.

2 The half year figures are unaudited. The accounts have been prepared on a basis consistent with that of the accounts for the year ended 31 March 2002. The auditors' report on those accounts was not qualified (but contained reference to fundamental uncertainties) and did not contain a statement under section 237 of the Companies Act 1985.

3 This interim statement is being posted to all shareholders and is displayed on the company’s website at www.angleseymining.co.uk. Copies are available on request from the company's registered office.

Unaudited consolidated profit and loss account

	Six months to 30 September 2002	Six months to 30 September 2001
	£	£
Turnover	-	-
Net operating expenses - continuing operations	32,683	17,672
Interest receivable	-	-
Interest payable	36,090	33,444
Loss on ordinary activities before and after taxation	68,773	51,116
Loss per share – basic	0.06 pence	0.04 pence
Loss per share - fully diluted	0.06 pence	0.04 pence

The directors are unable to recommend a dividend.
There are no minority interests or extraordinary items.

Unaudited consolidated cash flow statement

		Six months to 30 September 2002	Six months to 30 September 2001
		£	£
Net cash outflow from continuing operating activities		(23,380)	(28,962)
Returns on investments and servicing of finance
	Interest paid	(2)	(68)
Capital expenditure and financial investment
	Payments to acquire intangible fixed assets	(7,513)	(13,356)
Net cash outflow from capital investment and financial investment		(7,513)	(13,356)
Net cash outflow before financing		(30,895)	(42,386)
Financing
	Increase in loans	20,000	50,930
	Expenses of share issues in year	-	-
		20,000	50,930
(Decrease) / increase in cash		(10,895)	8,544

Corporate office telephone - 01248 361333 fax - 01248 361419
Email - mail@angleseymining.co.uk Web – www.angleseymining.co.uk

Registered office - Parys Mountain, Amlwch, Anglesey, LL68 9RE

Contacts :
Ian Cuthbertson	John F. Kearney
Company Secretary	Chairman
(44)1248 361333	(1)416 362 6686