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per tonne of gold; 8 metres at 2.6 grammes per tonne of gold; 4 metres at 4.7 grammes

per tonne of gold and 3.4 metres at 4.6 grammes per tonne of gold, with narrower

zones up to 14.5 grammes per tonne of gold over 1 metre. An additional 60 drill holes

(BQ size core) with a total of 1,435 metres were drilled to define ore zone geometry.

c.

Bittibulag mineral occurrence

The Bittibulag mineral occurrence is approximately 6 kilometres north-west from the

Gedabek open pit. A surface mapping exercise was completed over the Bittibulag area

covering an area of 0.8 square kilometres that included taking 320 outcrop samples for

analysis. This was followed up by a soil geochemical sampling programme over an area

of 2.8 square kilometres from which 648 samples were taken and which are currently

being prepared for assaying. A total of 56 metres of trenches were excavated and

mapped from which 60 samples were taken. On the basis of the positive results it is

planned to carry out historical adit rehabilitation, diamond drilling and metallurgical test

work drilling in H2 2016.

Exploration work also continued at the Ordubad contract licence area in the Nakhichevan

region of Azerbaijan. During H1 2016, 42 linear metres of trenching was completed. Access was

gained by 2,000 metres of road cleaning to reach exploration adits at the Pyazbashi deposit

which were developed during the Soviet era. 360 metres of underground rehabilitation was

completed, plus portal support infrastructure that allowed 583 metres of channel sampling

from which 740 samples were taken that confirmed the presence of gold mineralisation in the

quartz-kaolin vein system.

Financial review

Revenue of $39.3 million was generated from the sales of Anglo Asian’s share of gold and silver

bullion, refined from doré bars which it produced, and copper concentrate in the six months

ended 30 June 2016. Sales of gold and silver bullion were $34.1 million which comprised 27,719

ounces of gold and 4,496 ounces of silver at an average price of $1,230 and $16 per ounce

respectively. Sales of copper concentrate were $5.2 million.

The Company entered into a series of net zero cost options with a lower (PUT option) sales

price of $1,200 per ounce and an upper (CALL option) sales price of $1,426 per ounce on 27

June 2016. The options mature in lots of 1,500 ounces of gold with the first lot maturing on 12

July 2016. The rest of the lots then mature every two weeks from this date with the final lot

maturing on 13 December 2016. These options were initially recorded at a net cost of $nil and

at 30 June 2016 at their net fair value of a liability of $282,000. The difference between the

value at which initially recorded and at the balance sheet date of $282,000 was expensed to

other operating expense in the income statement. All options will mature within the 2016