29 July 2016

Alexander Mining plc

('Alexander' or 'the Company')

Grant of Share Options

In the best interests of Alexander and its shareholders, the Board has a policy of incentivising and retaining its valued employees, directors and consultants and, to this end, the Company has a share option plan in place. In order to assess whether the existing share options are consistent with their purpose, the Company's Remuneration Committee (the 'Committee') has recently conducted a review of the existing share options, the large majority of which were issued in June 2013. The exercise price of these share options is 4.92 pence which is approximately 38 times yesterday's closing mid share price of 0.13 pence. In its findings and recommendations, the Committee has recommended that in order to continue to provide incentivisation and reward for results, there should be a grant of new share options.

Accordingly the Board has approved the grant of an additional 43,300,000 new share options ('New Share Options') at an exercise price of 0.22p ('Exercise Price') to directors, employees and a consultant.

The New Share Options Exercise Price represents a 20 per cent. premium to the closing mid-market 90 trading day simple moving average share price on 28 July 2016, being the final business day prior to the Board approval. The New Share Options will vest in three equal tranches on the first, second and third anniversary from the date of the grant (being 29 July 2016) and will expire on 28 July 2026.

As a result of the above changes, the Company has a total of 43,300,000 New Share Options (with an exercise price of 0.22p per share) and 12,900,000 pre-existing share options at an exercise price of 4.92p in issue. The total number of share options granted (56,200,000) represents 5.8 per cent. of the issued share capital of the Company on a fully diluted basis.

Details of the share options granted to the directors are as follows:

ENDS

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