Anglo Asian Mining PLC
Annual report and accounts 2007
Logo is 129 U on uncoated (above)
143 C on coated. (below) AngL o ASiAn Mining PLc
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02 cHAiRMAn’S STATEMEnT
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Anglo Asian Mining PLc is a mining development 
company with eight gold and copper development 
properties in three separate mining areas of Azerbaijan.
The rights to extract all minerals in the contract Areas 
are through a Production Sharing Agreement with 
the Azerbaijan government. Anglo Asian Mining PLC
Annual report and accounts 2007 01
AZERBAIJAN
CASPIAN SEA
RUSSIA
GEORGIA
ARMENIA
IRAN
TURKEY
Gedabek
Gosha
Vejnali
Ordubad
Soutely
Gyzilbulakh
Baku
I Gedabek feasibility study successful
I  CIL plant sold
I  Bank funding of $25 million in place with 
the International Bank of Azerbaijan (“IBA”)
I  Development plans proceeding 
for 2008 operation
> Tertiary fold belt (area in red)
 The Contract Areas are located on a major 
tectonic belt known as the Middle East Tertiary 
Fold Belt, also known as the Tethyan Tectonic Belt. 
This is one of the world’s significant gold and 
copper bearing belts.
Azerbaijan is situated in 
south‑western Asia, bordering 
the Caspian Sea between Iran 
and Russia.
Azerbaijan borders Armenia, Georgia, Iran, Russia and Turkey 
and is split into two parts by Armenia; the smaller part is called 
the Autonomous Republic of Nakhchivan.
Azerbaijan covers an area of over 86,000km
2
, ranging from 
the flat Kura‑Araks Lowland with Great Caucasus Mountains 
to the north to the Karabakh Upland in the west. The climate 
is semi‑arid, with cold winters and hot summers.
hIGhLIGhTs
MAP KEY
 Contract Area locations
 Occupied territories (hatched area) Anglo Asian Mining PLC
Annual report and accounts 2007
02
I am pleased to report to you on the Company’s progress 
during the past year.
As incoming Chairman half way through 2007, I have witnessed 
an interesting year in Azerbaijan, where the Company was able 
to consolidate its strategic position in the country and fulfil 
its obligations under the Production sharing Agreement (“PsA”) 
it shares with the Government. Our most important development 
has been the advancement of the Gedabek gold/copper project, 
for which we commenced construction after identifying 
an indicated resource in November 2006. 
During the last twelve months the demand for base and precious 
metals has remained strong, led by the extraordinary growth 
of the Indian and Chinese economies. Gold prices have remained 
buoyant over the period, reaching new highs in early 2008, 
fuelled by soaring oil prices and power outages in south Africa.
Despite record prices for gold, silver and copper, the mining 
industry is struggling to keep pace with the high demand for 
metals. The time from discovery to production has increased 
significantly as companies struggle over land title issues, 
changes to tax laws, environmental constraints, shortages 
of qualified mining individuals and extra long lead times 
on key items of equipment.
Gedabek
At Gedabek, our Company has been fortunate in being able 
to fast‑track this gold and copper mining project, requiring 
small and available machinery, with minimal delays through 
the approval processes. We obtained feasibility study approval 
in June 2007, the environmental approval in september 2007 
and put the financing in place in early 2008. The project is now 
poised to deliver its first gold production before the end of 
2008 with copper production following shortly thereafter.
The Gedabek project consists of an open pit mine producing 
1.5 million tonnes of ore each year, a heap leach pad and 
processing facility for the recovery of gold, copper and silver. 
The stripping ratio is low at around 1.5 to 1.0, enabling the 
flat lying ore deposit to be readily accessed and higher grades 
mined early in the project’s life. The project should return 
its capital investment very quickly due to the high grades 
scheduled to be leached during 2009.
The products from Gedabek, in the form of gold doré and 
copper/silver rich concentrates will be exported for further 
processing and refining. The Company has no restrictions 
on these exports under the terms and conditions of the PsA.
The Gedabek feasibility study was completed in June 2007 and 
the Development and Production Plan was submitted to the 
Government and approved in the third quarter. Environmental 
approvals were also obtained from the Ministry of Ecology and 
Natural Resources during the third quarter. These approvals 
required the completion of a base‑line study and an environmental 
impact study and included a local environmental hearing at which 
the residents of Gedabek were able to express their overwhelming 
support for the project. The Company is determined to maintain 
the highest environmental standards at the mine, recognising 
that it is located close to a populated area.
I am pleased to report that the Group has continued to 
assist the local community at Gedabek. Following severe 
weather damage to schools and public buildings earlier this 
year, we purchased roofing materials which enabled repairs 
to be carried out in a timely manner. We also partnered with a 
local company in Azerbaijan to join the USAID Farmer‑to‑Farmer 
programme to improve the productivity and income of over 
800 families in the Gedabek region.
Exploration
Although the Company focused most of its resources 
on the Gedabek deposit during 2007, exploration efforts 
continued both in Ordubad in the south and at the Gosha 
property, which is located to the north west of Gedabek.
At Gosha, further test sampling and ore grade comparisons 
with Russian data confirmed that potentially economic 
mineralisation exists. The area around Gosha was mapped 
and sampled during the year as part of a reconnaissance 
programme in search of further mineralised areas.
The exploration work in Ordubad was focused around mapping 
and sampling of some of the smaller deposits in the area which 
are considered prospective for copper and molybdenum. 
soils and sediment sampling was also taken out in areas 
between the known mineral occurrences.
The Company has until April 2009 to further evaluate 
the properties it has been granted under the PsA, with the 
possibility of an extension to this time period. We look forward 
to more exploration success, especially if in the future we can 
explore three more prospects located in the Occupied Territories 
of western Azerbaijan.
Sale of CIL plant
Following extensive advertising, the CIL plant purchased 
by the Company in 2005 was sold to a Kazakhstan gold 
producer for a consideration of $7.5 million, before sales costs. 
Although the sale value of the plant was less than expected, 
the cash inflow occurred at a critical time for the Company. 
ChAIRMAN’s sTATEMENT
Our most important development has been the advancement 
of the Gedabek gold/copper project, for which we have commenced 
mine construction.
HIGHLIGHTS
I Gedabek development advanced
I  Bank financing in place
I sale of CIL plant
I Further exploration intended 03
Anglo Asian Mining PLC
Annual report and accounts 2007
The proceeds greatly assisted with financing the Gedabek 
project and enabled the project team to continue with 
the planning and infrastructure requirements.
Financing
The strategy on the further financing requirement of $25 million 
for the Gedabek project was to first explore local Azeri sources 
of debt. The Azerbaijan economy receives increasingly substantial 
revenues from the oil and gas sector and local banks are well 
placed to assist with the funding of ventures to support growth 
in other sectors of the economy.
Through extensive discussions and a strong relationship with 
the IBA, the Company was able to obtain an unsecured $5 million 
credit line from the bank in January 2008 to add to its own 
internal funding. In April 2008 the IBA also committed to 
a $20 million term loan, which has subsequently been executed 
and enables the Company to build the mine at Gedabek. The IBA 
funding is considered a major breakthrough for the Group.
The current forecasts demonstrate that the existing cash resources 
and available debt provide sufficient funds to complete the 
construction of the mine at Gedabek. The Board is aware of 
the current inflationary pressures in the mining industry, the risk 
of delays to the development, production and revenue falling 
short of expectations and the uncertainty that brings to going 
concern. If there are either cost overruns or delays which result 
in a funding shortfall then the Board will have to take steps to 
ensure there is adequate funding in the period to 30 June 2009. 
The major shareholders on the Board have confirmed that they 
would be willing to provide additional funding in such an event 
and also consider that further working capital facilities could be 
negotiated with the IBA. The Company is seeking the approval 
of the shareholders, at the AGM on 23 July to increase the 
borrowing capacity under the Articles of Association to four 
times the Adjusted Capital and Reserves and also to increase 
the ability to allot for cash up to 10% of the current share 
capital on a non pre‑emptive basis. Approval of these Special 
Resolutions will if necessary facilitate the ability to raise additional 
funds. For these reasons the Directors continue to adopt the going 
concern basis in preparing the financial statements (see note 1 
to the consolidated financial statements). The projected cash flows 
commencing in the first quarter of 2009 will put the Company 
in a strong position to pay back the debt quickly and generate 
funds for future growth.
Financial results
The Group reported a loss of $14,683,306 (2006: $4,428,073). 
The operating loss resulted from the costs of administrative 
expenses of $4,935,566 (2006: $4,824,096), a provision 
for impairment of exploration expenditure and mining rights 
of $6,692,218 (2006: $185,053) and the write‑down of 
the CIL plant held for sale of $3,273,887 (2006: $nil).
Net interest income in the year was $218,365 (2006:$581,126).
Exploration and evaluation expenditure of $2,035,970 
(2006: $6,017,138) was capitalised in the year.
At the year end the Group retained cash balances of $6,810,902 
(2006: $6,354,102): there was no borrowing.
Board and management
In July 2007 I joined the Board as Chairman following the 
departure of Mr Graham Mascall. It was with great pleasure 
that I was able to assist in the challenging process of raising 
the necessary funds to develop the Gedabek project.
I would like to take this opportunity to thank Graham Mascall 
for his term as Chairman, during which time the Company’s 
strategic focus was identified and executed.
Following the Company securing its financing, the management 
team in Azerbaijan was enhanced with experienced individuals 
from Kazakhstan to supplement a number of competent Azeri 
staff for the development phase of the project. This combination 
has subsequently been boosted by engaging a Turkish construction 
management group to supervise the construction of the mine.
Tim Eggar has advised the Board that he will not be offering 
himself up for re‑election at the AGM scheduled for 23 July and 
will step down from the Board at that time. Tim has been on 
the Board for the three years following the IPO and on behalf 
of the whole Board I would like to thank him for his significant 
contribution during this period. At the same time Richard Round 
will step down from his executive duties as Finance Director and 
take up a position as a Non‑executive Director also filling the 
vacancy of Chairman of the Audit Committee currently held by 
Tim. This follows the conclusion that we will need a full time 
CFO based in Azerbaijan as we head towards production. We have 
already appointed John Gibson to the non‑board position of 
interim CFO and the search for a full time CFO is underway.
I would like to thank all of our employees for their persistence 
and hard work during 2007. I believe the uncertain phase for 
the Company is behind us and we can look forward to building 
a strong foundation during the coming year. 
Khosrow Zamani 
CHAIRmAn
25 June 2008 Anglo Asian Mining PLC
Annual report and accounts 2007
04
A mine development is underway at Gedabek following the Company’s 
successful feasibility study of the project and financing for the full 
scale development.
ChIEF ExECUTIvE’S REvIEw
Introduction
The Group has made some exciting progress during 2007. 
A mine development is underway at Gedabek, following the 
Group’s successful feasibility study of the project and financing 
for the full scale development of the mine. In addition, some 
very good exploration targets are being pursued this year, 
two of which are in the vicinity of the Gedabek development.
The Gedabek project will provide the Group with cash flow 
to assist with its future growth in the region. The highly rated 
Tethyan belt running through Iran, Azerbaijan, Georgia and 
Turkey can be expected to produce more development 
opportunities, as this area remains under‑explored compared 
with many other gold/copper districts throughout the world. 
Funds to be generated by Gedabek and good financial relationships 
in Azerbaijan will place Anglo Asian in a strong position to 
take advantage of the exploration, acquisition and development 
opportunities the region has to offer. As the first major gold 
project in Azerbaijan, the Company is expected to receive on‑going 
support for its activities under its PsA with the Government 
of Azerbaijan. We have acquired rights for mining and exploration 
for up to 25 years in the Gedabek Contract Area, under the PsA 
following the successful discovery.
At least one area in Ordubad and the Gosha prospects remain as 
an exploration target. In addition, the Group holds rights for three 
highly rated prospects in the Occupied Territories to the south 
of Gosha and Gedabek. Following recent political changes 
in Armenia, we are advised that negotiations are progressing 
well between the Governments of Armenia and Azerbaijan.
Exploration programmes
During 2007, the Group focused its efforts on field exploration 
in and around the Gedabek and Gosha Contract Areas. soils and 
grab samples were taken over previously un‑explored territory 
and areas were checked between the known anomalies in these 
Contract Areas. sampling continued at the Gosha prospect and 
at nearby streams and outcrops. samples taken from the 
Maskhit deposit near Gedabek showed there is potential 
for economic grades of copper in the area and the Group will 
focus on this prospect and the known Maarif deposit during 
the 2008 exploration programme.
ORduBAd
Activity in the Ordubad region was restricted to mapping 
and sediment sampling during 2007. The camp at Keleky was 
moved to Gedabek and both geological and ancillary staff 
numbers reduced to focus resources on the Gedabek project. 
however, the Group does intend to explore further in the 
Misdag/Agyurt prospect area, where only limited exploration 
work was possible in the past.
The Group remains optimistic that other prospects such as 
Piyazbashi will become increasingly attractive at sustained high 
gold prices. The Piyazbashi prospect consists of a multitude of 
gold bearing quartz sulphide veins, which vary substantially 
in grade and thickness. Grades from re‑sampling of the adits 
show good correlation with previous Russian data. The Group’s 
sample results returned grades in the range 0.2 g/t to 80.7 g/t, 
reflecting the high variability of grades within each of the vein 
structures. Although tonnages would be restricted by underground 
mining at Piyazbashi and grades diluted in some of the narrow 
veins, the prospect will become more viable as the gold price 
continues to rise.
The Diakhchay copper/gold/molybdenum prospect is another 
target for further work in future exploration programmes. 
some good surface sample results provide added incentive 
to explore this prospect further.
GOSHA
Additional sampling and evaluation at Gosha during 2007 
showed the deposit to be erratic in grade and a high risk 
mining proposition, due to the nature of the ore and apparent 
distribution of the grade. Consistent gold grades would seem 
to be limited to the upper level east‑west structure, which 
has seemingly little potential at depth.
It is considered that substantial underground driving and sampling 
is required to evaluate fully this prospect. Because of the focus 
on Gedabek during 2007, exploration efforts at Gosha were 
restricted. At higher gold prices the option of trucking some 
of this ore to Gedabek for processing remains a possibility.
HIGHLIGHTS
I Gedabek feasibility study successful
I  Funding secured with the IBA
I Gedabek mine development now being progressed
I Exploration targets at Ordubad and Gosha identified Anglo Asian Mining PLC
Annual report and accounts 2007 05
The Gedabek project will provide the Company with cash 
flow to assist with its future growth in the region. Anglo Asian Mining PLC
Annual report and accounts 2007
06
The location, nature and size 
of the Gedabek deposit make it 
ideally suited to open pit mining 
and heap technology.
The current construction schedule 
shows first mine production by 
the last quarter of 2008.
Exploration programmes continued
mAARIF
The geological structure at Maarif is represented by tuffs and 
andesite porphyrites, together with rhyolites. The area was initially 
investigated by siemens during the operation of the nearby 
Gedabek mine. Government geologists have since identified 
an area of strongly hydrothermally altered and tectonically 
dislocated material covering a surface area of four kilometres 
by about 300 metres in width.
A short Government drilling programme, prior to the PsA, 
identified a potential low grade copper resource, which is also 
believed to host gold, silver and molybdenum. The Group is 
undertaking further investigations of this prospect during 2008 
to determine its economic potential. Both its prospectivity and 
close proximity to Gedabek rank Maarif as a high priority 
exploration target for the Company.
Gedabek development
The Gedabek project was taken through scoping, feasibility 
and financing stages during 2007. The project is the highlight 
of a successful year for the Group, and higher metal prices have 
enhanced the potential value of this project. The value of the 
by‑product metals, silver and copper, has also assisted in keeping 
cash costs per ounce of gold well within the first quartile of 
gold producer costs. 
A recently revised capital cost estimate of $25 million for the 
project is consistent with earlier estimates, given that the 
purchasing of a new mining fleet has been deferred until after 
production start‑up. Steel and contracting costs have risen, 
but the Group believes that its current loan facilities will provide 
sufficient finance to take Gedabek to production, although the 
Board is aware of the current inflationary pressures in the mining 
industry and the risk of construction delays, which could result 
in a further funding requirement.
During 2007, the Group produced a feasibility study by mid year 
which showed the Gedabek deposit can be successfully 
developed using relatively simple heap leach technology, 
supplemented by a sulphidation, acidification, recycling and 
thickening of the precipitate (sART) process which recovers 
valuable metal credits for copper and silver. The application 
of this process also reduces overall cyanide consumption by 
returning cyanide associated with copper and silver back into 
the leaching circuit. Its application has been restricted in the 
past by low copper prices. The cost of recovering copper by 
this means is estimated to be higher than $1.00 per pound at 
current costs of reagents. however, at sustained high copper 
prices, the process is finding wider application in the mining 
industry, with several companies introducing sART in similar 
circumstances to Gedabek. The Group was fortunate to retain 
first class consultants in SRK, SGS Lakefield and Knight Piesold 
for this study.
ChIEF ExECUTIvE’S REvIEw CONTINUED Anglo Asian Mining PLC
Annual report and accounts 2007 07
The Gedabek project has been developed from a JORC coded 
resource base of 15.6 million tonnes of ore grading 1.4 g/t 
gold, 0.24% copper and 12.2 g/t silver in the indicated and 
inferred categories. Mining reserves at conservative metal prices 
of $600 per ounce for gold, $6 per ounce for silver and $1.80 
per pound for copper were calculated to be 7.7 million tonnes 
of ore grading 1.80 g/t gold, 15.9 g/t silver and 0.29% copper. 
The mining reserve is very sensitive to both metal prices and 
operating costs. This gives the mine a good chance of extending 
the mine life beyond the current six years on the current resource 
base alone. In addition, the ore body remains open in several 
directions and old stockpiles are likely to account for at least 
one extra year of production. A low grade copper halo surrounding 
the gold/copper ore deposit is also of economic interest, 
should copper prices remain at current levels, together with the 
old siemens workings, most of which lie beneath the planned 
open pit mine.
The location, nature and size of the Gedabek deposit make 
it ideally suited to open pit mining and heap technology. 
Mining will take place on a hill slope with a two kilometre 
haul to a leach pad, which is to be formed on existing sloping 
ground at a similar elevation. No clearing of vegetation is required, 
simply removal of the topsoil. The extensive clay beds in the 
area will provide an ideal, impervious base for the leach pad. 
Earthworks requirements are not extensive and water supplies 
are readily available from nearby streams. To ensure reliability 
of power supply, the Group plans to use its own diesel powered 
generators initially.
Suitable mining and earthworks contractors have been identified 
in Azerbaijan. Consideration will be given to purchasing a mining 
fleet once construction work and the pre‑strip mining is underway 
dependent on cash flows and performance of the mining 
contractor during the construction phase.
The current construction schedule shows first mine production 
by the last quarter of 2008. The mining schedule has been 
designed to access high grade ore relatively early in the mine 
life. Gold production is expected to exceed 80,000 ounces 
during 2009.
The Group is fully committed to its environmental and safety 
obligations at Gedabek. An environmental baseline study and 
environmental impact study were completed during the year 
and approved by the Government authorities. Land has been 
assigned to the project for its duration and both the Gedabek 
community and local authorities have strongly supported the 
development. The project is of national importance to the 
Azerbaijan Government in a country dominated by the oil 
sector. Gedabek will be the first significant gold mining 
project in the country.
Infrastructure
The Group has substantially improved its facilities at Gedabek 
during 2007. The rented hotel has been upgraded to accommodate 
additional staff and workers, adding a new dining room and 
improving plumbing and communications systems. In June 2007, 
work commenced on the permanent mine camp. Most of the 
camp buildings have been constructed under Company supervision, 
using local labourers. This approach has been successful and 
good quality work has been achieved. The exploration camp 
from Ordubad was moved to Gedabek as a starting point for 
the camp, which is planned to accommodate 80–100 staff 
during operations.
CIL plant
The CIL plant was sold during the third quarter of 2007 for 
$7.5 million, before costs of disposal, providing cash reserves 
to continue with the Gedabek development and arrange 
project financing.
Staffing
During 2007, the Group retained sufficient staff to keep the 
Gedabek project moving and has since appointed construction 
and operating personnel to commence the early construction 
work. several experienced operations personnel have been recruited 
from Kazakhstan to assist with the mine start‑up. These people 
complement a local Azeri management team, several of whom 
have a mining or oil industry background. It is anticipated 
that additional management resources will be needed during 
construction and these are being sought from neighbouring 
Turkey and Iran, where the mining industries has been 
firmly established.
Attention has been given to the reduction of our cost base and 
we have achieved savings from the closure of the London office 
in February 2007.
Financing
The Group has obtained funding since the year end from 
the IBA which enables us to develop Gedabek. The Bank has 
provided two facilities, firstly, one of $5 million repayable in 
three years and secondly, one of $20 million repayable over four 
years with a two year grace period. Both facilities carry interest 
at 15%. Further details on this and going concern are given 
in the finance review.
Gordon Lewis
CHIEF ExECuTIvE
25 June 2008 Anglo Asian Mining PLC
Annual report and accounts 2007
08
The Group reported a loss for 2007 of $14,683,306 
(2006: $4,428,073). The operating loss resulted from administration 
expenses of $4,935,566 (2006: $4,824,096) and a provision for 
impairment of capitalised exploration expenditure and impairment 
of mining rights of $6,692,218 (2006: $185,103) and the 
write‑down of plant held for sale of $3,273,887 offset by net 
interest income of $218,365 (2006: $581,126).
The administrative expenses have been incurred in Azerbaijan 
and London. Our London office was closed in February 2007 
to reduce the cost base.
The Group has prepared its consolidated accounts for 2007 
in accordance with International Financial Reporting standards 
(“IFRS”) adopted by the European Union. On adoption of 
IFRs no changes have been required to the comparative 
results for the previous year.
The Directors have decided that a provision should be made 
against the capitalised exploration expenses relating to Piyazbashi 
of $1,111,286 reducing the carrying value to $1,000,000 and 
Misdag/Agyurt of $580,932 reducing the carrying value to $nil. 
In addition a provision for impairment has been raised against 
mining rights relating to Ordubad of $5,000,000. The decision 
to impair these asset results from the reduction in time available 
in the exploration period of the PsA. This follows the decision 
to concentrate resources on the development of Gedabek.
The net interest income in the period arose from the interest 
received on deposits.
As there was no income generated in the Group, the tax charge for 
the period was nil and an additional deferred tax asset was created 
in the form of losses to carry forward in both the UK and Azerbaijan. 
The deferred tax assets are not recognised in the balance sheet.
Exploration and evaluation expenditures of $2,035,970 
(2006: $6,017,138) were incurred and capitalised in the year.
Following the results of the Gedabek scoping study, a decision 
was made to sell the CIL plant and use the proceeds to develop 
a heap leach facility at Gedabek. The plant was sold in september, 
after the cost of disposal, for $7,004,585. 
The Group retained cash balances of $6,810,902 
(2006: $16,354,102) at the year end. 
The Board reviews and agrees policies for managing financial risks.
Commodity price risk
The Group has not yet commenced commercial mining and 
does not hold any financial instruments to hedge the commodity 
price risk on its expected future production. The Board will review 
this exposure prior to any mines becoming operational.
Foreign currency risk
The Group reports in US dollars and a large proportion of its 
business is conducted in US dollars. It also conducts business 
in Australian dollars, Azerbaijan manats and UK sterling.
Liquidity/interest rate risk
shortly after the IPO the only debt in the Group was repaid 
and there is no debt as at 31 December 2007. Board approval 
is required for all new borrowing facilities. The Group has not 
used any interest rate swaps or other instruments to manage 
its interest rate profile during 2007.
At the year end the Group had cash on short‑term deposit. 
Short‑term deposits during the period included overnight, 
one week and monthly up to 12 months.
In January 2008 the Group obtained a credit facility with 
the IBA of $5 million repayable after three years, expiring 
on 14 January 2011, with an interest rate of up to 15%. 
Repayments in equal monthly instalments are due from 
February 2010. In April 2008 the IBA also agreed to additional 
funding to the Group by way of a further credit facility of 
$20 million at an all inclusive annual interest rate of 15%. 
The loan agreement is for four years from 15 February 2008 
with a two year grace period to repay the monies loaned. In 2010 
$8 million is scheduled to be repaid in quarterly instalments and 
in 2011 $5 million and $7 million are repayable in March and 
June respectively. There is no penalty for early repayment.
market risk
Exposure to interest rate fluctuations is minimal as the Group 
currently has no debt. Interest rates on UK sterling and US dollar 
deposits are relatively stable and the impact of a fluctuation 
in the interest rate on interest earned on the Group’s short‑term 
deposits is likely to be minimal. The Group will be exposed to 
fluctuations in commodity prices once production commences.
Operational risk
There is exposure to delay in the construction programme 
and the resulting timing of production and sale of minerals. 
The Group will monitor progress on a regular basis.
Richard Round
FInAnCE dIRECTOR
25 June 2008
The Group has obtained credit facilities with the International Bank 
of Azerbaijan to secure the Gedabek development.
FINANCE REvIEw
HIGHLIGHTS
I Bank funding secured
I CIL plant sold
I Further cost reductions
I Net cash at the year end: no debt Anglo Asian Mining PLC
Annual report and accounts 2007 09
BOARD OF DIRECTORs
mr Khosrow Zamani
nOn‑ExECuTIvE CHAIRmAn, AGE 65
Appointed 1 June 2007
Khosrow Zamani was director of the Southern Europe and 
Central Asia Department of the International Finance Corporation 
(IFC), the private sector lending arm of the World Bank, from 
March 2000 to July 2005. This department was responsible 
for the IFC investment programme in 15 countries across the 
region. In July 2005, Khosrow was appointed as Senior Adviser 
to the v ice President of Operations. w hilst a director at IFC, 
Khosrow was instrumental in building the IFC investment 
programme in the region with several new initiatives, particularly 
in Central Asia and Caucasia. he oversaw the IFC portfolio 
of more than $2 billion, diversified across the financial, 
oil and gas, mining and manufacturing sectors.
mr Reza vaziri
PRESIdEnT, AGE 55
Reza vaziri served at the Ministry of the Imperial Court of the 
Shah of Iran before moving to the US. Mr vaziri was the initial 
founder of the US Azerbaijan Chamber of Commerce (“USACC”) 
and has been appointed chairman for life. In his role with USACC, 
he has arranged and participated in a number of economic 
delegations to Azerbaijan and played a key role in bringing 
US investment to the country.
mr Gordon Lewis
CHIEF ExECuTIvE, AGE 59 
Over the course of his career, Gordon has worked as a senior 
mining executive on a significant number of projects across 
a range of emerging markets. he previously managed Avocet 
Mining PLC’s Indonesian operations, including taking the North 
Lanut gold mine from in‑fill drilling through to production and 
overseeing the start‑up of Malaysia’s largest gold mine. he has 
also run various mining operations for RTZ and, more recently, 
was chief operating officer of Alexander Mining PLC. Gordon is 
a member of the Australian Institute of Mining and Metallurgy 
and holds a First Class Mine Manager’s Certificate, South Australia.
mr Richard Round FCCA
FInAnCE dIRECTOR, AGE 50
Richard Round is a fellow of the Chartered Association of Certified 
Accountants. he began his career with British Coal in 1977. 
In 1987 Richard joined Ferrum holdings plc, becoming group 
finance director in 1993. In 1995 Richard became finance 
director of Consolidated supply Management Limited, 
an international oilfield logistics group operating primarily 
in Latin America and the Former Soviet Union, including 
Azerbaijan and Kazakhstan. In 2001, Richard became financial 
director for the Mining (scotland) Group, the largest opencast 
coal mining company in the UK, before joining Anglo Asian 
as finance director in September 2005. Richard has also been 
finance director for Cambrian Mining PLC and is now chief 
financial officer of Lubel Coal Company Limited.
dr Ross Bhappu
nOn‑ExECuTIvE dIRECTOR, AGE 48
Dr Bhappu is a partner with Resource Capital Funds with 
extensive experience in the mining industry working for both 
senior and junior mining companies. Prior to joining Resource 
Capital Funds in early 2001, he served as chief executive officer 
of GTN Copper Corporation, director of business development 
for Newmont Mining Corporation and held various technical 
and commercial roles with Cyprus Minerals Company. Ross holds 
a Ph.D. in Mineral Economics from the Colorado school of Mines 
and B.s. and M.s. degrees in Metallurgical Engineering from the 
University of Arizona.
The Rt Hon Tim Eggar
nOn‑ExECuTIvE dIRECTOR, AGE 56
Tim Eggar began his career with hambros Bank. In 1979, he was 
elected as a member of the UK Parliament and between 1985 
and 1996 held a number of ministerial positions, including 
minister for energy. he has had a number of senior board 
positions including chairman of AGIP UK Ltd, Mw Kellogg Ltd, 
and chief executive of Monument Oil & Gas plc. From 2000 to 
2004, he was head of ABN AMRO’s Global Energy Corporate 
Finance Group. he is currently chairman of Indago Petroleum PLC 
and Nitol Solar Ltd and a non‑executive director of Rock w ell 
Petroleum Inc. he was the founding chairman of the 
Anglo‑Azeri Society.
Governor John H Sununu
nOn‑ExECuTIvE dIRECTOR, AGE 68
Governor sununu received a Ph.D. from Massachusetts 
Institute of Technology and taught engineering at Tufts 
University for 16 years. he served three terms as the governor 
of New hampshire before President George h.W. Bush 
appointed him chief of staff in 1989, a position that he 
held until March 1992. After his tenure as chief of staff, he 
co‑hosted CNN’s Crossfire, ran an engineering firm, and then 
in 2004 served as the visiting Roy M. and Barbara Goodman 
Family Professor of Practice in Public Service at the Kennedy 
School of Government at harvard University. Governor Sununu 
is a former partner in Trinity International Partners, a private 
financial firm, and currently serves as President 
of Jhs Associates Ltd. Anglo Asian Mining PLC
Annual report and accounts 2007
10
Directors’ report
The Directors submit their report and the financial statements of Anglo Asian Mining PLC for the year ended 31 December 2007.
Principal activities
The principal activity of the Group is the exploration and development of gold and copper projects in Azerbaijan. 
Review of developments and future prospects
The Group’s financial performance for the year was in line with Directors’ expectations. The Group loss after taxation for the year 
ended 31 December 2007 amounted to $14,683,306 (2006: $4,428,073).
In future when the mine is operational, relevant Key Performance Indicators will be given for the business.
The record of the business during the year and an indication of likely further developments may be found in the Chairman’s statement, 
(page 2) the Chief Executive’s review (page 4) and the finance review (page 8).
Business review
The financing risks are discussed on page 3 of the Chairman’s statement. Other risks are discussed in the finance review on page 8.
Share capital
Details of the movements in share capital during the period are set out in note 23 to the consolidated financial statements.
Statement of directors’ responsibilities
The Directors are responsible for preparing the annual report and the financial statements. The Directors are required to prepare 
financial statements for the Group in accordance with IFRS as adopted by the EU. Company law requires the Directors to prepare 
such financial statements in accordance with IFRS, the Companies Act 1985 and Article 4 of the IAS Regulation.
IAS 1 requires that financial statements present fairly for each financial year the Company’s financial position, financial performance 
and cash flows. This requires that faithful representation of the effects of transactions, other events and conditions in accordance 
with the definitions and recognition criteria for assets, liabilities, income and expenses set out in the IAS Board’s “Framework for 
the Preparation and presentation of Financial Statements”. In virtually all circumstances, a fair presentation will be achieved by 
compliance with all applicable IFRS. Directors are also required to:
I properly select and apply accounting policies;
I  present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable 
information; and
I  provide additional disclosures when compliance with the specific requirements in IFRS is insufficient to enable users 
to understand the impact of particular transactions, other events and conditions on the entity’s financial position 
and financial performance.
The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the 
financial position of the Company, for safeguarding the assets, for taking reasonable steps for the prevention and detection 
of fraud and other irregularities and for the preparation of a directors’ report which complies with the requirements of the 
Companies Act 1985.
The Directors have elected to prepare the parent company financial statements in accordance with United Kingdom Generally 
Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The parent company financial 
statements are required by law to give a true and fair view of the state of affairs of the Company. In preparing these financial 
statements, the Directors are required to:
I select suitable accounting policies and then apply them consistently;
I  make judgements and estimates that are reasonable and prudent;
I   state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed 
and explained in the financial statements; and
I   prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company 
will continue in business.
The Directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time 
the financial position of the Company and enable them to ensure that the parent company financial statements comply with 
the Companies Act 1985. They are also responsible for safeguarding the assets of the Company, for taking reasonable steps 
for the prevention and detection of fraud and other irregularities and for the preparation of the directors’ report which complies 
with the requirements of the Companies Act 1985.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the 
Company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements 
may differ from legislation in other jurisdictions.
Directors
The current Directors and their biographies are set out on page 9. Anglo Asian Mining PLC
Annual report and accounts 2007 11
Directors’ interests
The Directors in office during the year and their interests in ordinary shares of the Company at 31 December 2007 and 
31 December 2006 were:
       31 December  31 December  
       2007  2006  
       number of  number of 
Directors      shares shares
Khosrow Zamani (appointed 1 June 2007)      20,000 —
Graham Mascall (resigned 17 July 2007)      — —
Reza Vaziri      29,111,208 28,771,200
Gordon Lewis       — —
richard round      — —
Ross Bhappu      — —
Tim Eggar       45,564 19,500
John Sununu       9,631,400 9,595,400
A total of 450,080 shares were issued during the year to the Directors and Resource Capital Fund III L.P . in lieu of salaries and fees, 
bringing the total number of ordinary shares with voting rights to 99,621,880 at 31 December 2007.
The interests of the Directors, financial advisers and staff in options to subscribe for ordinary shares of the Company were:
  Exercise   Latest  As at  Granted Lapsed in  As at 
  price   exercise  1 January during in the 31 December 
  (p)  date  2007 the year  year  2007
Directors
Khosrow Zamani 16.5  1 June 2017 — 100,000 — 100,000
  12.0  27 July 2017 — 500,000 — 500,000
Graham Mascall 39.5  13 March 2016 1,487,577 — (1,487,577) —
  55.0  13 March 2016  495,858 — (495,858) —
Gordon Lewis 42.5  1 July 2016 1,487,577  — 1,487,577
  12.0  27 July 2017  — 1,400,000 — 1,400,000
Richard Round  77.0  26 July 2015 432,900 — — 432,900
  42.5  12 April 2016 495,859  — — 495,859
  12.0  27 July 2017 — 600,000 — 600,000
Ross Bhappu 42.5  12 April 2016 123,965 — — 123,965
Tim Eggar 77.0  26 July 2015 743,788 — — 743,788
Others
  *77.0  26 July 2008 991,718 — — 991,718
   77.0  16 October 2007 330,573 — (330,573) —
   *77.0  26 July 2008 991,718 — — 991,718
  97.0  11 August 2015 247,925 — — 247,925
  42.5  12 April 2016 59,503 — — 59,503
     7,888,961 2,600,000 (2,314,008) 8,174,953
All options can be exercised at various dates ranging from 26 January 2006 to 31 May 2010 other than those marked * which 
can be exercised from date of grant.
Directors indemnities
The Company has made qualifying third party indemnity provision for the benefit of its Directors which were made during the year 
and remain in force at the date of this report.
Going concern
After making enquiries, the Directors have formed a judgement, at the time of approving the financial statements, that there is 
a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. 
These resources include the anticipated revenues from the projected gold, silver and copper production at Gedabek, existing cash 
balances, existing debt facilities and the Group’s ability to raise further funds through either debt or equity, should production 
from the mine be delayed or if costs of the development increase. Although there is material uncertainty in this respect the Board 
is expecting that Gedabek will be in production before the end of 2008. For this reason the Directors continue to adopt the going 
concern basis in preparing the financial statements. Refer to note 1 to the consolidated financial statements for further detail.
Charitable and political contributions
There were no charitable or political contributions made during the year. Anglo Asian Mining PLC
Annual report and accounts 2007
12
DIRECTORS’ REPORT COnTInUED
Substantial shareholdings
The Company has been informed that on 19 June 2008 the following shareholders held substantial holdings in the issued ordinary 
shares of the Company: the number of shares in issue at this date was 100,145,229.
       number of   
       ordinary  Holding 
Shareholders      Shares  %
Reza Vaziri      29,506,566  29.5
John Sununu      9,673,261 9.7
Khagani Bashirov      9,209,445 9.2
Resource Capital Fund III L.P .      6,260,575 6.3
Limelight Industrial Developments Limited      4,038,600 4.0
Colby Mining Limited      3,279,200 3.3
Charles Hancock      3,216,600 3.2
Payment policy
It is the Group’s policy to pay suppliers in accordance with agreed terms, provided the supplier has also complied with agreed 
terms and conditions. The average creditor days is 30.
Auditors
Each of the persons who is a Director at the date of approval of this annual report confirms that:
I so far as the Director is aware there is no relevant audit information of which the Company’s auditors are unaware; and 
I  the Director has taken all the steps that he ought to have taken as a Director in order to make himself aware of any relevant 
audit information and to establish that the Company’s auditors are aware of that information.
This information is given and should be interpreted in accordance with the provisions of Section 234ZA of the Companies Act 1985.
Annual general meeting
The Company will hold its next Annual General Meeting on 23 July 2008 at which this report and financial statements will be presented. 
notification of the meeting has been sent along with this report.
By order of the Board
Janette Davies
COMPANY SECRETARY
25 June 2008 Anglo Asian Mining PLC
Annual report and accounts 2007 13
Introduction
Although the rules of AIM do not require the Company to comply with the Combined Code on Corporate Governance 
(“the Code”), the Company fully supports the principles set out in the Code and will attempt to comply wherever possible, 
given both the size and resources available to the Company. Details are provided below of how the Company applies the Code. 
The board
The Board of Directors currently comprises three Executive Directors and four non‑executive Directors, one of whom is the Chairman. 
The roles of Chairman and Chief Executive are split in line with recommended policy.
The Board meets regularly throughout the year and receives a Board pack comprising individual reports from each of the Executive 
Directors together with any other material deemed necessary for the Board to discharge its duties. The Board also conducts 
telephone Board meetings as issues which require Board attention arise. It is the Board’s responsibility to formulate, review and 
approve the Group’s strategy, budgets and major items of expenditure. The Board sets the Group’s objectives and policies and 
monitors their implementation by the executive team.
The Board considers two of the non‑executive Directors other than the Chairman to be independent and Tim Eggar to be the 
Senior Independent non‑executive Director.
Audit committee
The Audit Committee comprises Tim Eggar and John Sununu and is scheduled to meet at least twice a year. The external auditors 
attend the meetings and the Chief Executive and Finance Director attend by invitation. It is the Audit Committee’s role to provide 
formal and transparent arrangements for considering how to apply the financial reporting and internal control requirements 
of the Code, whilst maintaining an appropriate relationship with the independent auditors of the Group.
Remuneration committee
The Remuneration Committee currently comprises Khosrow Zamani, Tim Eggar and John Sununu and meets as required. It is the 
Remuneration Committee’s role to establish a formal and transparent policy on executive remuneration and to set remuneration 
packages for individual Directors.
Nomination committee
The nomination Committee currently comprises Khosrow Zamani, Tim Eggar, John Sununu and Gordon Lewis. It is the role of the 
nomination Committee to review and consider the Board structure and composition and it meets as required to consider and make 
recommendations on the appointment of Directors to the Board.
Shareholder relations
The Company meets with its institutional shareholders and analysts as appropriate and encourages communication with 
private shareholders via the Annual General Meeting (“AGM”). In addition, the Company uses the annual report and accounts, 
interim statement and web site (www.aamining.com) to provide further information to shareholders.
Internal control and risk management
The Board is responsible for the system of internal control and for reviewing its effectiveness. Such systems are designed to manage 
rather than eliminate risks and can provide only reasonable and not absolute assurance against material misstatement or loss. 
For each year, on behalf of the Board, the Audit Committee reviews the effectiveness of these systems. This is achieved primarily 
by considering the risks potentially affecting the Group and discussions with the external auditors.
The Group does not currently have an internal audit function due to the small size of the administrative function.
A comprehensive budgeting process is completed once a year and is reviewed by the Board and where appropriate revised 
forecasts are prepared and also reviewed by the Board. The Group’s results, as compared against budget, are reported 
to the Board on a monthly basis and discussed in detail at each meeting of the Board.
The Group maintains appropriate insurance cover in respect of legal actions against the Directors as well as against material loss 
or claims against the Group and the Board reviews the adequacy of the cover regularly.
CORPORATE GOVERnAnCE Anglo Asian Mining PLC
Annual report and accounts 2007
14
We have audited the Group financial statements of Anglo Asian Mining PLC for the year ended 31 December 2007 which comprise 
the consolidated income statement, the consolidated statement of recognised income and expense, the consolidated balance 
sheet, the consolidated cash flow statement, and the related notes 1 to 29. These Group financial statements have been 
prepared under the accounting policies set out therein.
We have reported separately on the parent company financial statements of Anglo Asian Mining PLC for the year ended 
31 December 2007. That report is modified by the inclusion of an emphasis of matter.
This report is made solely to the Company’s members, as a body, in accordance with Section 235 of the Companies Act 1985. 
Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state 
to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume 
responsibility to anyone other than the Company and the Company’s members as a body, for our audit work, for this report, 
or for the opinions we have formed.
Respective responsibilities of directors and auditors
The Directors’ responsibilities for preparing the annual report and the Group financial statements in accordance with applicable 
law and International Financial Reporting Standards (“IFRS”) as adopted by the European Union are set out in the statement 
of directors’ responsibilities.
Our responsibility is to audit the Group financial statements in accordance with relevant legal and regulatory requirements 
and International Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the Group financial statements give a true and fair view, whether the Group financial 
statements have been properly prepared in accordance with the Companies Act 1985. We also report to you whether in our opinion 
the information given in the directors’ report is consistent with the Group financial statements. The information given in the 
directors’ report includes that specific information presented in the business review that is cross referred from the Principal Activity 
and business review section of the directors’ report.
In addition we report to you if, in our opinion, we have not received all the information and explanations we require for our audit, 
or if information specified by law regarding director’s remuneration and other transactions is not disclosed.
We are not required to consider whether the Board’s statements on internal control cover all risks and controls, or form an opinion 
on the effectiveness of the Group’s corporate governance procedures or its risk and control procedures.
We read the other information contained in the annual report as described in the contents section and consider whether it is consistent 
with the audited Group financial statements. We consider the implications for our report if we become aware of any apparent 
misstatements or material inconsistencies with the Group financial statements. Our responsibilities do not extend to any further 
information outside the annual report.
Basis of audit opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices 
Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the Group financial 
statements. It also includes an assessment of the significant estimates and judgements made by the Directors in the preparation 
of the Group financial statements, and of whether the accounting policies are appropriate to the Group’s circumstances, 
consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary 
in order to provide us with sufficient evidence to give reasonable assurance that the Group financial statements are free from 
material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall 
adequacy of the presentation of information in the Group financial statements.
Opinion
In our opinion:
I  the Group financial statements give a true and fair view, in accordance with IFRS as adopted by the European Union, 
of the state of the Group’s affairs as at 31 December 2007 and of its loss for the year then ended;
I  the Group financial statements have been properly prepared in accordance with the Companies Act 1985 and Article 4 
of the IAS Regulation; and
I the information given in the directors’ report is consistent with the Group financial statements.
Emphasis of matter – going concern
Without qualifying our opinion we draw attention to the disclosures made in note 1 of the financial statements concerning the 
Group’s ability to continue as a going concern which would depend upon the Gedabek Development being completed to budget, 
production starting before the end of 2008 and revenues meeting expectations, or alternatively, on obtaining additional financing. 
These considerations, together with the other matters set out in note 1, indicate the existence of a material uncertainty which 
may cast significant doubt about the Group’s ability to continue as a going concern. The financial statements do not include 
the adjustments that would result if the Group was unable to continue as a going concern as it is not practicable to determine 
or quantify them.
Deloitte & Touche LLP
ChARTERED ACCOuNTANTS AND REGISTERED AuDITORS
London
25 June 2008
InDEPEnDEnT A UDITORS’ REPORT
TO THE MEMBERS OF AnGLO ASIAn MInInG PLC Anglo Asian Mining PLC
Annual report and accounts 2007 15
      Year  Year 
      ended  ended 
      31 December  31 December 
      2007  2006 
    Notes  uS$  US$
Administrative expenses     (4,935,566)  (4,824,096)
Write‑down of capitalised intangible assets   8  (6,692,218)  (185,103)
Write‑down of assets held for sale   9  (3,273,887)  —
Operating loss   5  (14,901,671)  (5,009,199)
Finance income   10  218,365  581,152
Finance costs   11  —  (26)
Loss before tax     (14,683,306)  (4,428,073)
Income tax expense   12  —  —
Loss for the year     (14,683,306)  (4,428,073)
Loss per share
Basic (cents per share)   13  (14.80)  (4.47)
Diluted (cents per share)   13  (14.80)  (4.47)
The Group’s loss relates to continuing operations in both years.
 
      Year  Year 
      ended  ended 
      31 December  31 December 
      2007  2006 
      uS$  US$
Exchange differences on translation of foreign operations    —  (175,616)
net expense recognised directly in equity      —  (175,616)
Loss for the year     (14,683,306)  (4,428,073)
Total recognised income and expense for the year    (14,683,306)  (4,603,689)
COnSOLIDATED InCOME STATEMEnT
FOR THE yEAR EnDED 31 DECEMBER 2007
COnSOLIDATED STATEMEnT OF RECOGnISED InCOME AnD ExPEnSE
FOR THE yEAR EnDED 31 DECEMBER 2007 Anglo Asian Mining PLC
Annual report and accounts 2007
16
      2007  2006 
    Notes  uS$  US$
Non‑current assets
Intangible assets   14  49,727,700  54,383,948
Property, plant and equipment   15  1,242,048  1,029,750
      50,969,748  55,413,698
Current assets
Trade and other receivables   17  444,514  170,607
Cash and cash equivalents   18  6,810,902  6,354,102
      7,255,416  6,524,709
Assets classified as held for sale   9  —  10,273,887
Total assets     58,225,164  72,212,294
Current liabilities
Trade and other payables   19  (1,332,491)  (1,240,453)
Total liabilities     (1,332,491)  (1,240,453)
Net current assets     5,922,925  15,558,143
Net assets     56,892,673  70,971,841
Equity
Share capital   22  1,792,015  1,782,605
Share premium account   23  30,387,514  30,279,301
Share‑based payment reserve   23  1,852,752  1,366,237
Merger reserve   23  46,206,390  46,206,390
Accumulated loss   23  (23,345,998)  (8,662,692)
Total equity     56,892,673  70,971,841
The financial statements were approved by the Board of Directors and authorised for issue on 25 June 2008. They were signed 
on its behalf by:
Gordon Lewis
ChIEf ExECuTIvE
COnSOLIDATED BALAnCE SHEET
AS AT 31 DECEMBER 2007 Anglo Asian Mining PLC
Annual report and accounts 2007 17
      Year  Year 
      ended  ended 
      31 December  31 December 
      2007  2006 
    Notes  uS$  US$
Net cash used in operating activities   24  (4,308,710)  (2,906,521)
Investing activities
Interest received     218,365  581,152
Purchase of property, plant and equipment     (421,470)  (6,649,068)
Expenditure on intangible assets     (2,035,970)  (6,017,138)
net proceeds from sale of property, plant and equipment    7,004,585  —
Net cash from/(used) in investing activities     4,765,510  (12,085,054)
Financing activities
interest paid     —  (26)
Net cash used in financing activities     —  (26)
Net increase/(decrease) in cash and cash equivalents    456,800  (14,991,601)
Cash and cash equivalents at beginning of year    6,354,102  21,345,703
Cash and cash equivalents at end of year     6,810,902  6,354,102
COnSOLIDATED CASH FLOW STATEMEnT
FOR THE yEAR EnDED 31 DECEMBER 2007 Anglo Asian Mining PLC
Annual report and accounts 2007
18
1. Going concern
The Directors’ assumption over the capital costs and timing of production from the Gedabek development are crucial to the Group 
meeting its forecast cash flows for the year to 30 June 2009. Should the costs of the development increase, production be delayed 
or the revenues fall short of expectations there may be insufficient cash flow for the Group to manage its day to day operations 
without seeking and relying on further financing, which may or may not be available. Therefore a material uncertainty exists which 
may cast significant doubt on the entity’s ability to continue as a going concern and that it may be unable to realise its assets and 
discharge its liabilities in the normal course of business.
After making enquiries, the Directors have formed a judgement, which assumes at the time of approving the financial statements, 
that there is a reasonable expectation that the Group can access adequate resources to continue in operation and remain in 
existence for the foreseeable future. The current forecasts demonstrate that the existing cash resources and available debt provide 
sufficient funds to complete the construction of the mine at Gedabek. The Board is aware of the current inflationary pressures in 
the mining industry and the risk of delays to the development. If there are either cost overruns or delays which result in a funding 
shortfall then the Board will have to take steps to ensure that there is adequate funding in the period to 30 June 2009. The major 
shareholders on the Board have confirmed that they would be willing to provide additional funding in such an event. The Directors 
also consider that further working capital facilities could be negotiated with the IBA. The Company is seeking the approval of the 
shareholders, at the AGM on 23 July 2008 to increase the borrowing capacity under the Articles of Association to four times the 
Adjusted Capital and Reserves and also to increase the ability to allot for cash up to 10% of the current share capital. Approval of 
these Special Resolutions will be necessary to facilitate the ability to raise additional funds. The Board is expecting that Gedabek 
will be in production before the end of 2008. In addition, the Directors consider that there are various costs in relation to the 
mining activities which could be deferred without an adverse impact on the operations.
For these reasons the Directors continue to adopt the going concern basis of preparing the financial statements.
2. General information
Anglo Asian Mining PLC is a public limited Company incorporated in the Great Britain under the Companies Act 1985. 
The Company’s ordinary shares are traded on the Alternative Investment Market of the London Stock Exchange. The nature 
of the Group’s operations and its principal activities are set out in the directors’ report on pages 10 to 12.
These financial statements are presented in US dollars. Foreign operations are included in accordance with the policies set out in note 2.
3.	 Significant	accounting	policies
BASIS Of PREPARATION
For all periods up to and including the year ended 31 December 2006, the Group prepared its financial statements in accordance 
with United Kingdom Generally Accepted Accounting Practice (“UK GAAP”). These financial statements, for the year ended 
31 December 2007, are the first that the Group has prepared in accordance with IFRS as adopted by the European Union (“EU”). 
The financial statements have also been prepared in accordance with International Financial Reporting Interpretations Committee 
(“IFRIC”) interpretations and with those parts of the Companies Act 1985 applicable to companies reporting under IFRS. 
As a result of the conversion from UK GAAP to IFRS, no adjustments have been required to be made to the comparatives for the 
year ended 31 December 2006, nor the balance sheet at the transition date of 1 January 2006. Although certain presentational 
changes have been made in order to present the comparatives in accordance with the requirements of IFRS there is no requirement 
to present the detailed disclosures set out in IFRS 1 First‑time adoption of IFRS. The Group has utilised the exemptions that are 
available under IFRS 1 in relation to currency translations where by cumulative translation differences are deemed to be zero 
at the date of transition to IFRS. 
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted 
are set out below.
NEw STANDARDS AND INTERPRETATIONS NOT APPLIED
At the date of authorisation of these financial statements, the following Standards and Interpretations which have not been 
applied in these financial statements were in issue but not yet effective:
IFRS 2  Amendment to IFRS 2 – Vesting Conditions and Cancellations
IFRIC 11 (IFRS 2) Group and Treasury Share Transactions
IFRS 3  Business Combinations (revised January 2008)
IFRS 8  Operating Segments
IAS 1  Presentation of Financial Statements (revised September 2007)
IAS 23  Borrowing Costs (revised March 2007)
IAS 27  Consolidated and Separate Financial Statements (revised January 2008)
IFRIC 12 Service Concession Arrangements
IFRIC 13 Customer Loyalty Programmes
IFRIC 14 IAS 19  The limit on a Defined Benefit Asset, Minimum Funding Requirements, and their Interaction.
The Directors anticipate that the adoption of these Standards and Interpretations in future periods will have no material impact 
on the financial statements of the Group.
nOTES TO THE COnSOLIDATED FInAnCIAL STATEMEnTS
FOR THE yEAR EnDED 31 DECEMBER 2007 Anglo Asian Mining PLC
Annual report and accounts 2007 19
3.	 Significant	accounting	policies	continued
BASIS Of CONSOLIDATION
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company 
(its subsidiaries) made up to 31 December each year. Control is achieved where the Company has the power to govern the financial 
and operating policies of an investee entity so as to obtain benefits from its activities.
All intra‑group transactions, balances, income and expenses are eliminated on consolidation.
LEASING
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership 
to the lessee. All other leases are classified as operating leases.
Rentals payable under operating leases are charged to income on a straight‑line basis over the term of the relevant lease.
fOREIGN CuRRENCIES
The individual financial statements of each Group company are maintained in the currency of the primary economic environment 
in which it operates (its functional currency). For the purpose of the consolidated financial statements, the results and financial 
position of each Group company are expressed in US dollars, the functional currency of the Company and the presentation 
currency for the consolidated financial statements.
In preparing the financial statements of the individual companies, transactions in currencies other than the entity’s functional 
currency (foreign currencies) are recorded at the rates of exchange prevailing on the dates of the transactions. At each balance 
sheet date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the 
balance sheet date. non‑monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.
Exchange differences arising on the settlement of monetary items, and on the retranslation of monetary items, are included 
in the income statement for the period. 
fOREIGN CuRRENCIES CONTINuED
For the purpose of presenting consolidated financial statements, the assets and liabilities of the Group’s foreign operations 
are translated at exchange rates prevailing on the balance sheet date. Income and expense items are translated at the average 
exchange rates for the period, unless exchange rates fluctuate significantly during that period, in which case the exchange rates 
at the date of transactions are used. Exchange differences arising, if any, are classified as equity and transferred to the Group’s 
translation reserve. Such translation differences are recognised as income or as expenses in the period in which the operation 
is disposed of.
OPERATING LOSS
Operating loss is stated before finance income, finance costs and other gains and losses.
TAxATION
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities 
in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using 
the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred 
tax assets are recognised for all deductible temporary differences, carry forward of unused tax assets and unused tax losses to the 
extent that it is probable that taxable profits will be available against which deductible temporary differences and the carry forward 
of unused tax credits and unused tax losses can be utilised. 
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is 
realised, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date. Deferred tax 
is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case 
the deferred tax is also dealt with in equity.
Deferred tax assets are not recognised in respect of timing differences relating to tax losses where there is insufficient evidence 
that the asset will be recovered. Unrecognised deferred tax assets are reassessed at each balance sheet date and are recognised 
to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.
INTANGIBLE ASSETS 
Exploration and evaluation assets
The costs of exploration properties and leases, which include the cost of acquiring prospective properties and exploration rights and 
costs incurred in exploration and evaluation activities, are capitalised as intangible assets as part of exploration and evaluation assets.
Exploration and evaluation assets are carried forward during the exploration and evaluation stage and are assessed for impairment 
in accordance with the indicators of impairment as set out in IFRS 6 Exploration for and Evaluation of Mineral Resources. 
In circumstances where a property is abandoned, the cumulative capitalised costs relating to the property are written off 
in the period. no amortisation is charged prior to the commencement of production. 
When commercial production commences, exploration, evaluation and development costs previously capitalised are amortised 
over the commercial reserves of the mining property on a unit of production basis.
Mining rights
Mining rights are carried at cost to the Group and less any provisions for impairments which result from evaluations 
and assessments of potential mineral recoveries.
PROPERTY , PLANT AND EquIPMENT
Buildings and plant and equipment are stated at cost less accumulated depreciation and any recognised impairment loss.  Anglo Asian Mining PLC
Annual report and accounts 2007
20
3.	 Significant	accounting	policies	continued
PROPERTY , PLANT AND EquIPMENT CONTINuED
Depreciation is provided on all depreciable property, plant and equipment at rates calculated to write‑off the cost of each asset 
over its expected useful life as follows:
Leasehold improvements   Over the life of lease
Plant, equipment and motor vehicles  25% decreasing balance
Office and computer equipment  25% decreasing balance
Temporary buildings   25% decreasing balance
The cost of maintenance, repairs and replacement of minor items of property, plant and equipment are charged to the income 
statement as incurred. Renewals and asset improvements are capitalised. 
An item of property, plant and equipment is derecognised upon disposal or when no further economic benefits are expected 
from its use or disposal. Upon sale or retirement of property, plant and equipment, the cost and related accumulated depreciation 
are eliminated from the financial statements. Any resulting gains or losses are included in the income statement.
IMPAIRMENT Of TANGIBLE AND INTANGIBLE ASSETS
At each balance sheet date, the Group reviews the carrying amounts of its tangible and intangible assets to determine whether 
there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount 
of the asset is estimated in order to determine the extent of the impairment loss (if any). Where the asset does not generate cash 
flows that are independent from other assets, the Group estimates the recoverable amount of the cash‑generating unit to which 
the asset belongs. 
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future 
cash flows are discounted to their present value using a pre‑tax discount rate that reflects current market assessments of the time 
value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash‑generating unit) is estimated to be less than its carrying amount, the carrying amount 
of the asset (cash‑generating unit) is reduced to its recoverable amount. An impairment loss is recognised as an expense immediately. 
Where an impairment loss subsequently reverses, the carrying amount of the asset (cash‑generating unit) is increased to the revised 
estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would 
have been determined had no impairment loss been recognised for the asset (cash‑generating unit) in prior years. A reversal 
of an impairment loss is recognised as income immediately. 
ASSETS CLASSIfIED AS hELD fOR SALE
non‑current assets classified as held for sale are measured at the lower of carrying amount and fair value less costs to sell 
and are not depreciated.
non‑current assets are classified as held for sale if their carrying amount will be recovered through a sale transaction rather than 
through continuing use. This condition is regarded as met only when the sale is highly probable and the asset is available for 
immediate sale in its present condition. Management must be committed to the sale and completion should be expected within 
one year from the date of classification.
fINANCIAL INSTRuMENTS
Financial assets and financial liabilities are recognised in the Group’s balance sheet when the Group becomes a party to the contractual 
provisions of the instrument.
Trade and other receivables
Trade and other receivables are measured at initial recognition at fair value, and are subsequently carried at cost. Appropriate allowances 
for estimated irrecoverable amounts are recognised in the income statement when there is objective evidence that the asset is impaired.
Cash and cash equivalents
Cash and cash equivalents comprise cash at banks and in hand and short‑term deposits with an original maturity of three months 
or less.
For the purpose of the consolidated cash flow statement, cash and cash equivalents consist of cash and cash equivalents 
as defined above.
Trade and other payables
Trade payables are initially measured at fair value, and are subsequently measured at amortised cost, using the effective interest 
rate method.
nOTES TO THE COnSOLIDATED FInAnCIAL STATEMEnTS COnTInUED
FOR THE yEAR EnDED 31 DECEMBER 2007 Anglo Asian Mining PLC
Annual report and accounts 2007 21
3.	 Significant	accounting	policies	continued
EMPLOYEE LEAvE BENEfITS
Liabilities for wages and salaries, including non‑monetary benefits and accrued but unused annual leave are recognised in respect 
of employees’ services up to the reporting date. They are measured at the amounts expected to be paid when the liabilities 
are settled. 
RETIREMENT BENEfIT COSTS
The Group does not operate a pension scheme for the benefit of its employees but instead makes contributions to their personal 
pension policies. The contributions due for the period are charged to the income statement.
ShARE‑BASED PAYMENTS
The Group has applied the requirements of IFRS 2 Share‑based Payment. IFRS 2 has been applied to all grants of equity instruments.
The Group issues equity‑settled share‑based payments to certain employees. Equity‑settled share‑based payments are measured at 
fair value (excluding the effect of non market‑based vesting conditions) at the date of grant. The fair value determined at the grant 
date of the equity‑settled share‑based payments is expensed on a straight‑line basis over the vesting period, based on the Group’s 
estimate of shares that will eventually vest and adjusted for the effect of non market‑based vesting conditions.
Fair value is measured by use of the Black‑Scholes model. The expected life used in the model has been adjusted, 
based on management’s best estimate, for the effects of non‑transferability, exercise restrictions and behavioural considerations.
CRITICAL JuDGEMENTS IN APPLYING ThE GROuP ’S ACCOuNTING POLICIES
In the process of applying the Group’s accounting policies, which are described in note 3, management has made the following 
judgements that have the most significant effect on the amounts recognised in the financial statements (apart from those 
involving estimations, which are dealt with below).
Impairment of tangible and intangible assets
The assessment of tangible and intangible assets for any indications of impairment involves judgement. If an indication of 
impairment exists, a formal estimate of recoverable amount is performed and an impairment loss recognised to the extent that 
carrying amount exceeds recoverable amount. Recoverable amount is determined as the higher of fair value less costs to sell 
and value in use.
Deferred tax assets
The assessment of availability of future taxable profits involves judgement. A deferred tax asset is recognised to the extent that 
it is probable that taxable profits will be available against which deductible temporary differences and the carry forward of unused 
tax credits and unused tax losses can be utilised.
KEY SOuRCES Of ESTIMATION uNCERTAINTY
The preparation of financial statements requires management to make estimates and assumptions that affect the amounts reported 
for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. 
The nature of estimation means that actual outcomes could differ from those estimates. The key sources of estimation uncertainty 
that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial 
year are discussed below.
Share‑based payments
The estimation of share‑based payment costs requires the selection of an appropriate valuation model and consideration as to the 
inputs necessary for the valuation model chosen. The Group has made estimates as to the volatility of its own shares, the probable 
life of options granted and the time of exercise of those options. The model used by the Group is the Black‑Scholes pricing model. 
4. Segment information
The operations of the Group comprise one reportable segment with the primary and secondary segments identical, being the 
exploration and development of gold and copper projects in Azerbaijan.
Operations in Azerbaijan comprise of exploration and development projects for gold and copper at eight development properties 
in three separate mining areas.
The unallocated entries in the segment note relate to activities in the United Kingdom which comprise of administration and treasury 
functions carrying out general expense processing, remuneration of Directors and monitoring and placing of Group deposits. Anglo Asian Mining PLC
Annual report and accounts 2007
22
4. Segment information continued
The following table presents losses and certain asset and liability information regarding the Group’s reportable segment for the 
years ended 31 December 2007 and 2006.
 2007  2006
  Azerbaijan  Consolidated  Azerbaijan  Consolidated 
year ended 31 December uS$  uS$  US$  US$
Segment result (10,935,400)  (10,935,400)  (1,487,121)  (1,487,121)
Unallocated expenses   (3,966,271)    (3,522,078)
Group operating loss   (14,901,671)    (5,009,199)
Net interest income   218,365    581,126
Loss before taxation   (14,683,306)    (4,428,073)
Tax expense   —    —
Loss for the year   (14,683,306)    (4,428,073)
Assets and liabilities
Segment assets 51,159,754  51,159,754  55,381,578  55,381,578
Unallocated assets   7,065,410    16,830,716
Total assets   58,225,164    72,212,294
Segment liabilities 68,958  68,958  308,891  308,891
Unallocated liabilities   1,263,533    931,562
Total liabilities   1,332,491    1,240,453
Other segment information
Capital expenditure:
Property, plant and equipment 421,470  421,470  710,394  6,649,068
Intangible assets 2,035,970  2,035,970  6,017,138  6,017,138
Depreciation  205,340  209,172  142,563  148,615
Write‑down of intangible assets 6,692,210  6,692,210  185,103  185,103
Share‑based payment expense —  486,515  —  776,668
Write‑down of assets held for sale  —  3,273,887  —  —
Gain on disposal of non‑current assets  —  4,575  —  —
5. Operating loss
      Year  Year 
      ended  ended 
      31 December  31 December 
      2007  2006 
    Notes  uS$  US$
Operating loss is stated after charging:
Depreciation on property, plant and equipment – owned  15  209,172  148,615
Impairment of intangible assets   8, 14  6,692,218  185,103
Share‑based payment charge   25  486,515  776,668
The analysis of auditors’ remuneration is as follows:
Fees payable to the Company’s auditors for the audit  
of the Group’s annual accounts     93,746  87,857
The audit of the Company’s subsidiaries pursuant to legislation    4,000  3,500
Total audit fees     97,746  91,357
Tax services     23,700  29,458
Total non‑audit services     23,700  29,458
The audit fees for the parent company were $19,856 (2006: $18,555).
nOTES TO THE COnSOLIDATED FInAnCIAL STATEMEnTS COnTInUED
FOR THE yEAR EnDED 31 DECEMBER 2007 Anglo Asian Mining PLC
Annual report and accounts 2007 23
6. Remuneration of Directors 
 Year ended 31 December 2007
  Salary	 Bonus	 Consultancy	 F ees	 P ension	 Benefits	 T otal 
  uS$ uS$ uS$ uS$ uS$ uS$ uS$
Ross Bhappu 
(a)
 — — — — — — —
Tim Eggar — — — 44,040 — — 44,040
Gordon Lewis 
(b)
 389,072 97,915 — — 30,000 40,097 557,084
Graham Mascall 
(c)
 — — — 60,192 — — 60,192
richard round 
(b)
  113,572 40,036 — — 19,733 4,525 177,866
John Sununu — — — 36,072 — — 36,072
Khosrow Zamani — — — 49,358 — — 49,358
Reza Vaziri — — 308,042 28,025 — — 336,067
Total 502,644 137,951 308,042 217,687 49,733 44,622  1,260,679
(a)  Fees of $28,025 in relation to the services of Ross Bhappu as a non‑executive Director for the period to 31 December 2007 are payable 
to RCF Management LLC a Company related to but not controlled by Ross Bhappu.
(b) There were two Directors in a defined contribution scheme during the period (2006: three).
(c) The fees payable to Graham Mascall have now terminated.
(d) Directors’ fees amounting to $191,503 included above were paid in shares.
 year ended 31 December 2006
  Salary Bonus Consultancy Fees Pension Benefits Total 
  US$ US$ US$ US$ US$ US$ US$
Ross Bhappu 
(a)
 — — — — — — —
Tim Eggar — — — 44,160 — — 44,160
Charles Hancock 
(b)
 121,440 — — — 11,040 — 132,480
Robert Jeffcock — — 27,145 17,732 — — 44,877
Gordon Lewis 
(b)
 163,261 — — — 13,800 10,106 187,167
Graham Mascall — — — 94,167 — — 94,167
richard round 
(b)
 234,217 27,600 — — 23,422 2,581 287,820
John Sununu — — — 35,573 — — 35,573
Reza Vaziri — — 287,268 26,987 — — 314,255
Total 518,918 27,600 314,413 218,619 48,262 12,687 1,140,499
(a)  Fees of $26,987 in relation to the services of Ross Bhappu as a non‑executive Director for the period to 31 December 2006 are payable 
to RCF Management LLC a Company related to but not controlled by Ross Bhappu.
(b) There were three Directors in a defined contribution scheme during the period (2005: two). Anglo Asian Mining PLC
Annual report and accounts 2007
24
7. Staff numbers and costs
The average number of persons employed by the Group (including Directors) during the year, analysed by category, was as follows:
      Year  Year 
      ended  ended 
      31 December  31 December 
      2007  2006 
      number  number
Management and administration     31  41
Processing and exploration     82  139
other     —  24
Total     113  204
The aggregate payroll costs of these persons were as follows:
      Year  Year 
      ended  ended 
      31 December  31 December 
      2007  2006 
      uS$  US$
Wages and salaries     3,377,343  3,513,266
Social security costs     243,695  420,000
pension costs     49,733  48,262
      3,670,771  3,981,528
Less: salary costs capitalised as exploration and evaluation expenditure   (799,318)  (1,208,539)
Total employee costs     2,871,453  2,772,989
8. Other expenses
During the year there have been impairment charges taken against capitalised intangible expenditure. Analysis of these expenses 
is provided below:
      Year  Year 
      ended  ended 
      31 December  31 December 
      2007  2006 
      uS$  US$
Write‑down of capitalised exploration and evaluation expenditure   1,692,218  185,103
Write‑down of mining rights     5,000,000  —
      6,692,218  185,103
9.	 Assets	classified	as	held	for	 sale
      Year  Year 
      ended  ended 
      31 December  31 December 
      2007  2006 
      uS$  US$
Cost as at 1 January     10,273,887  —
Additions     —  10,273,887
Disposal     (10,273,887)  —
As at 31 December     —  10,273,887
Impairment
As at 1 January     —  —
impairment     3,273,887  —
Disposal     3,273,887  —
As at 31 December     —  —
Carrying amount
As at 31 December     —  10,273,887
In its 2007 interim results, the Group announced a write‑down of the CIL plant of $3,273,887 as discussions with interested 
parties showed that the full carrying value of the plant was unlikely to be recovered through a sale.
On 15 October 2007 the Group entered into an agreement with Celtic Resources Holdings PLC, a gold producer, to dispose 
of its CIL plant for a gross consideration of $7,500,000 (less expenses) previously being classified under assets held for sale. 
The CIL plant constitutes a processing plant, including crushing equipment, three grinding mills and carbon in leach gold 
treatment equipment.
nOTES TO THE COnSOLIDATED FInAnCIAL STATEMEnTS COnTInUED
FOR THE yEAR EnDED 31 DECEMBER 2007 Anglo Asian Mining PLC
Annual report and accounts 2007 25
10. finance income
      Year  Year 
      ended  ended 
      31 December  31 December 
      2007  2006 
      uS$  US$
Interest receivable from short‑term bank deposits     218,365  581,152
11. finance costs
      Year  Year 
      ended  ended 
      31 December  31 December 
      2007  2006 
      uS$  US$
Bank interest     —  26
12. Taxation
      Year  Year 
      ended  ended 
      31 December  31 December 
      2007  2006 
      uS$  US$
UK Corporation tax
– Current year     —  —
– Prior year     —  —
Foreign tax
– Current year     —  —
– Prior year     —  —
Total current income tax     —  —
Deferred tax (note 21)     —  —
      —  —
Corporation tax is calculated at 30% (2006: 30%) of the estimated assessable profit for the year. Taxation for other jurisdictions 
is calculated at the rates prevailing in the respective jurisdictions. The Group tax charge for the year can be reconciled to the loss 
per the income statement as follows:
      Year  Year 
      ended  ended 
      31 December  31 December 
      2007  2006 
      uS$  US$
Loss before tax:     (14,683,306)  (4,428,073)
Tax at the UK corporation tax rate of 30% (2006: 30%)    4,404,991  1,328,422
Expenses not deductible for tax purposes     (2,804,154)  (462)
Prior year adjustment     —  335,237
Unrecognised tax losses     (1,685,700)  (1,806,185)
other     84,863  142,988
      —  —
fACTORS ThAT MAY AffECT fuTuRE CuRRENT AND TOTAL TAx ChARGES
The unrecognised deferred tax asset (note 21) may affect the future current and total tax charges if the recoverability of the 
deferred tax assets is considered likely in future periods.
13. Loss per share
The statutory loss per share of 14.80 cents (2006: 4.47 cents) has been based on a weighted average number of shares in issue 
of 99,224,823 (2006: 99,171,800) and a loss of $14,683,306 (2006: $4,428,073).
Basic and dilutive EPS are the same because the only outstanding share options are anti‑dilutive as the Group has made a loss. Anglo Asian Mining PLC
Annual report and accounts 2007
26
14. Intangible assets
EvALuATION AND ExPLORATION ExPENDITuRE
    Misdag/      
  Piyazbashi Shakardara Agyurt Shalala Diakhchay Gedabek Gosha Total 
  uS$ uS$ uS$ uS$ uS$ uS$ uS$ uS$
Cost
As at 1 January 2006 1,098,474 41,658 41,658 — — 270,255 174,606 1,626,651
Additions 1,012,812 143,445 539,274 58,663 39,264 4,039,859 183,821 6,017,138
Provision for impairment — (185,103) — — — — — (185,103)
As at 31 December 2006  2,111,286 — 580,932 58,663 39,264 4,310,114 358,427 7,458,686
Additions — — — — — 1,940,527 95,443 2,035,970
Provision for impairment (1,111,286) — (580,932) — — — — (1,692,218)
As at 31 December 2007 1,000,000 — — 58,663 39,264 6,250,641 453,870 7,802,438
MINING RIGhTS
Cost
As at 31 December 2006        46,925,262
Provision for impairment        (5,000,000)
As at 31 December 2007        41,925,262
Total intangible assets
As at 31 December 2006        54,383,948
As at 31 December 2007        49,727, 700
Provisions have been made for impairment against the carrying value of capitalised exploration and evaluation expenditure relating 
to Piyazbashi and Misdag/Agyurt and against mining rights relating to Ordubad following an impairment review. The impairment 
loss has been recognised as an expense in the income statement for the year.
15. Property, plant and equipment
        Assets  
	 	 	 T emporary	 Plant	and	 Motor	 Office	 Leasehold	 under	 
   buildings equipment vehicles equipment improvements construction Total 
   uS$ uS$ uS$ uS$ uS$ uS$ uS$
Cost
As at 1 January 2006  84,286 82,391 58,516 141,180 124,815 — 491,188
Additions  — 34,061 69,336 220,322 239,813 161,649 725,181
As at 31 December 2006   84,286 116,452 127,852 361,502 364,628 161,649 1,216,369
Additions  215,521 19,028 290 44,961 73,080 68,590 421,470
As at 31 December 2007  299,807 135,480 128,142 406,463 437,708 230,239 1,637,839
Accumulated depreciation  
and impairment
As at 1 January 2006  (2,107) (10,298) (7,314) (16,725) (1,560) — (38,004)
Charge for year  (6,322) (22,282) (41,940) (67,477) (10,594) — (148,615)
As at 31 December 2006  (8,429) (32,580) (49,254) (84,202) (12,154) — (186,619)
Charge for year  (25,449) (23,345) (13,064) (65,371) (81,943) — (209,172)
As at 31 December 2007  (33,878) (55,925) (62,318) (149,573) (94,097) — (395,791)
Carrying amount
As at 31 December 2006  75,857 83,872 78,598 277,300 352,474 161,649 1,029,750
As at 31 December 2007  265,930 79,554 65,824 256,890 343,611 230,239 1,242,048
The capital commitments by the Group have been disclosed in note 26.
16. Subsidiary undertakings
A list of the significant investments in subsidiaries, including the name, country of incorporation, and proportion of ownership 
interest is given in note 5 in the Company’s financial statements.
17. Trade and other receivables
      As at  As at  
      31 December  31 December 
      2007  2006 
      uS$  US$
Prepayments     332,203  126,318
HMRC     1,554  19,784
Other receivables     110,757  24,505
      444,514  170,607
The carrying amount of trade and other receivables approximates to their fair value.
nOTES TO THE COnSOLIDATED FInAnCIAL STATEMEnTS COnTInUED
FOR THE yEAR EnDED 31 DECEMBER 2007 Anglo Asian Mining PLC
Annual report and accounts 2007 27
18. Cash and cash equivalents and short‑term deposits
      As at  As at 
      31 December  31 December 
      2007  2006 
      uS$  US$
Cash and cash equivalents     6,810,902  6,354,102
Short‑term deposits are those with an original maturity of three months or more and hence are excluded from cash and cash 
equivalents and are recognised separately in the balance sheet.
Cash and cash equivalents comprise cash held by the Group and short‑term bank deposits with an original maturity of three 
months or less. The carrying amount of these assets approximates to their fair value.
19. Trade and other payables 
      As at  As at 
      31 December  31 December 
      2007  2006 
      uS$  US$
trade creditors      76,263  172,889
Other payables and accruals     1,256,228  1,067,564 
      1,332,491  1,240,453
Trade creditors and other payables and accruals principally comprise amounts outstanding for trade purchases and ongoing 
costs. Trade creditors are non‑interest bearing and are normally settled on 30 day terms. The Directors consider that the carrying 
amount of trade and other payables approximates to their fair value.
20. financial instruments
fINANCIAL RISK MANAGEMENT OBJECTIvES AND POLICIES
The Group’s principal financial instruments comprise cash and cash equivalents and other short‑term deposits. The main purpose 
of these financial instruments is to finance the Group operations. The Group has other financial instruments, such as trade and 
other receivables and trade and other payables, which arise directly from its operations. Surplus cash within the Group is put 
on deposit, the objective being to maximise returns on such funds whilst ensuring that the short‑term cash flow requirements 
of the Group are met.
The Group has not used derivative financial instruments during 2007. The Board will review the need for the use of derivative 
financial instruments in the future.
INTEREST RATE RISK AND LIquIDITY RISK MANAGEMENT
Shortly after the IPO in 2005, the only debt in the Group was repaid and there is no debt as at 31 December 2007. Board approval 
is required for all new borrowing facilities. The Group has not used any interest rate swaps or other instruments to manage 
its interest rate profile during 2007.
At the year end the Group had cash and cash equivalents and other short‑term deposits. Short‑term deposits during the period 
included overnight, one week and monthly up to 12 months.
INTEREST RATE RISK PROfILE Of fINANCIAL ASSETS
The following table sets out the carrying amount, by maturity of the Group’s financial instruments that are exposed to interest 
rate risk:
Year ended 31 December 2007
      More   
    within  than   
floating rate   1 year  1 year  Total
Short‑term deposits
Cash and cash equivalents   6,810,902  —  6,810,902
Year ended 31 December 2006
      More   
    Within  than   
Floating rate   1 year  1 year  Total
Short‑term deposits
Cash and cash equivalents   6,354,102  —  6,354,102
Interest rate sensitivity analysis
The sensitivity analyses below have been determined based on the exposure to interest rates for financial instruments at the balance 
sheet date. For floating rate cash deposits, the analysis is prepared assuming the amount of deposits outstanding at the balance 
sheet date was outstanding for the whole year. A 50 basis point increase or decrease is used when reporting interest rate risk internally 
to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.
If interest rates had been 50 basis points higher/lower and all other variables were held constant, the Group’s loss for the year 
ended 31 December 2007 would decrease/increase by $20,825 (2006: decrease/increase by $69,250). This is mainly attributable 
to the Group’s exposure to interest rates on its floating rate cash deposits.
Credit risk
There are no significant concentrations of credit risk within the Group. The maximum credit risk exposure relating to financial 
assets is represented by their carrying value as at the balance sheet date.  Anglo Asian Mining PLC
Annual report and accounts 2007
28
20. financial instruments continued
INTEREST RATE RISK PROfILE Of fINANCIAL ASSETS CONTINuED
foreign currency management
The presentational currency of the Group is US dollars. The Group is exposed to currency risk due to movements in foreign 
currencies relative to the US dollar affecting foreign currency transactions and balances.
The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities at the reporting date 
are as follows:
 Liabilities  Assets
  2007  2006  2007  2006 
  uS$  US$  uS$  US$
UK sterling 223,308  356,140  162,009  355,440
Azerbaijan manats 17,108  19,376  67,451  75,557
other 3,867  36,893  —  62
foreign currency sensitivity analysis
The Group is mainly exposed to the currency of United Kingdom (UK sterling) and the currency of Azerbaijan (Azerbaijan manats).
The following table details the Group’s sensitivity to a 10% increase and decrease in the US dollar against the relevant foreign 
currencies. 10% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and 
represents management’s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes 
only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 10% change 
in foreign currency rates. A positive number below indicates an increase in profit and other equity where the US dollar strengthens 
10% against the relevant currency. For a 10% weakening of the US dollar against the relevant currency, there would be an equal 
and opposite impact on the profit and other equity, and the balances below would be reversed.
 UK sterling impact  Azerbaijan mantas impact
  2007  2006  2007  2006 
  uS$  US$  uS$  US$
Profit/(loss) 6,132  70  (5,034)  (5,618)
Market risk
Exposure to interest rate fluctuations is minimal as the Group currently has no debt. Interest rates on UK sterling and US dollar 
deposits are relatively stable and the impact of a fluctuation in the interest rate on interest earned on the Group’s short‑term 
deposits is likely to be minimal.
21. Deferred tax
At the balance sheet date, the Group has unused tax losses of $4,369,449 (2006: $2,683,749) available for offset against future 
profits. no deferred tax asset has been recognised in respect of such losses due to the unpredictability of future profit streams. 
Unused tax losses may be carried forward indefinitely.
22. Share capital 
      As at   As at 
      31 December  31 December  
      2007  2006 
      £  £
Authorised:
600,000,000 ordinary shares of 1p each     6,000,000  6,000,000
      uS$  US$
Issued and fully paid:
99,621,880 ordinary shares of 1p each (2006: 99,171,800 ordinary shares of 1p each)  1,792,015  1,782,605
Fully paid ordinary shares carry one vote per share and carry the right to dividends. 
share options
The Group has granted options to subscribe for the Company’s shares (note 25). 
nOTES TO THE COnSOLIDATED FInAnCIAL STATEMEnTS COnTInUED
FOR THE yEAR EnDED 31 DECEMBER 2007 Anglo Asian Mining PLC
Annual report and accounts 2007 29
23. Reconciliation of changes in equity 
     Share‑based    
   Share Share payment Merger Accumulated Total 
   capital premium reserve reserve loss equity 
   uS$ uS$ uS$ uS$ uS$ uS$
At 1 January 2006  1,782,605 30,279,301 589,569 46,206,390 (4,059,003) 74,798,862
Share‑based payment  — — 776,668 — — 776,668
Currency translation differences  — — — — (175,616) (175,616)
Loss for the year  — — — — (4,428,073) (4,428,073)
At 31 December 2006  1,782,605 30,279,301 1,366,237 46,206,390 (8,662,692) 70,971,841
Shares issued  9,410 108,213 — — — 117,623
Share‑based payment  — — 486,515 — — 486,515
Loss for the year  — — — — (14,683,306) (14,683,306)
At 31 December 2007  1,792,015 30,387,514 1,852,752 46,206,390 (23,345,998) 56,892,673
ShARE‑BASED PAYMENT RESERvE
This reserve is used to record the value of equity benefits provided to Directors and senior employees of the Group from time 
to time as part of the consideration paid. See note 25 for further details.
MERGER RESERvE
The merger reserve was created in accordance with the merger relief provisions under Section 131 of the Companies Act 1985 
(as amended) relating to accounting for group reconstructions involving the issue of shares at a premium. In preparing Group 
consolidated financial statements, the amount by which the base value of the consideration for the shares allotted exceeded 
the aggregate nominal value of those shares was recorded within a merger reserve on consolidation, rather than in the share 
premium account.
24.	 Notes	to	the 	cash	flow	state ment
      Year ended  Year ended 
      31 December  31 December 
      2007  2006 
      uS$  US$
Operating loss     (14,901,671)  (5,009,199)
Adjustments for:
 Depreciation of property, plant and equipment     209,172  148,615
 Gain on disposal of property, plant and equipment    (4,585)  —
 Share‑based payment expense     486,515  776,668
 Exchange loss on non‑operating activities     —  (175,616)
 Write‑down of fixed asset held for sale     3,273,887  —
 Shares issued in exchange for salaries     117,623  —
 Increase in provisions     6,692,218  185,103
Operating cash flows before movements in working capital    (4,126,841)  (4,074,429)
 (Increase)/decrease in trade and other receivables    (273,907)  725,668
 Increase in trade and other payables     92,038  442,240
cash used in operations     (4,308,710)  (2,906,521)
Income taxes paid     —  —
net cash used in operating activities     (4,308,710)  (2,906,521)
Cash and cash equivalents (which are presented as a single class of assets on the face of the balance sheet) comprise cash at bank 
and short‑term deposits with a maturity of three months or less.
25. Share‑based payments
EquITY‑SETTLED ShARE OPTIONS
The Company operates a share option scheme for Directors and senior employees of the Company. Options are granted at a price 
agreed at the time of the grant. The vesting periods are up to three years. Options are exercisable at a price equal to the closing 
quoted market price of the Company’s shares on the date of the Board approval to grant options. Options are forfeited if the 
employee leaves the Group and the options are not exercised within three months from leaving date. Details of the share options 
outstanding during the year are as follows.
 2007  2006
    weighted    Weighted 
  Number of  average  number of  average 
  share  exercise price  share  exercise price 
  options  pence  options  pence
Outstanding at beginning of year 7,888,961  0.60  4,616,217  0.78
Granted during the year 2,600,000  0.12  4,150,339  0.43
Lapsed during the year (2,314,008)  0.48  (877,595)  0.77
Outstanding at 31 December 8,174,953  0.48  7,888,961  0.60
Exercisable at 31 December 3,882,423  0.72  3,026,314  0.79 Anglo Asian Mining PLC
Annual report and accounts 2007
30
25. Share‑based payments continued
EquITY‑SETTLED ShARE OPTIONS CONTINuED
The options outstanding at 31 December 2007 had a weighted average exercise price of 0.48 pence and a weighted average 
remaining contractual life of nine years. In the year ended 31 December 2007, options were granted on 1 June and 27 July. 
The aggregate of the estimated fair values of the options granted on those dates is £119,749 ($234,708). In 2006 options were 
granted on 13 March, 12 April and 1 July. The aggregate of the estimated fair values of the options granted on those dates 
is £612,700 ($1,115,113).
The inputs into the Black‑Scholes model are as follows:
Granted on 21 July 2007       
Weighted average share price       0.12
Weighted average exercise price       0.12
Expected volatility       64%
Expected life       2 years
Risk free rate       4.50%
Expected volatility was determined by calculating the historical volatility of the Company’s share price over the previous two years. 
The expected life used in the model has been adjusted, based on management’s best estimate, for the effects of non‑transferability, 
exercise restrictions, and behavioural considerations.
The weighted average fair value of options granted on 21 July 2007 is £0.05.
Granted on 1 June 2007       
Weighted average share price       0.16
Weighted average exercise price       0.16
Expected volatility       64%
Expected life       2 years
Risk free rate       4.50%
Expected volatility was determined by calculating the historical volatility of the Company’s share price over the previous two years. 
The expected life used in the model has been adjusted, based on management’s best estimate, for the effects of non‑transferability, 
exercise restrictions, and behavioural considerations.
The weighted average fair value of options granted on 1 June 2007 is £0.06.
Granted on 1 July 2006       
Weighted average share price       0.42
Weighted average exercise price       0.35
Expected volatility       64%
Expected life       2 years
Risk free rate       4.41%
Expected volatility was determined by calculating the historical volatility of the Company’s share price over the previous two years. 
The expected life used in the model has been adjusted, based on management’s best estimate, for the effects of non‑transferability, 
exercise restrictions, and behavioural considerations.
The weighted average fair value of options granted on 1 July 2006 is £0.16.
Granted on 12 April 2006       
Weighted average share price       0.42
Weighted average exercise price       0.42
Expected volatility       64%
Expected life       2 years
Risk free rate       4.41%
Expected volatility was determined by calculating the historical volatility of the Company’s share price over the previous two years. 
The expected life used in the model has been adjusted, based on management’s best estimate, for the effects of non‑transferability, 
exercise restrictions, and behavioural considerations.
The weighted average fair value of options granted on 12 April 2006 is £0.16.
Granted on 13 March 2006       
Weighted average share price       0.4
Weighted average exercise price       0.4
Expected volatility       64%
Expected life       2 years
Risk free rate       4.41%
Expected volatility was determined by calculating the historical volatility of the Company’s share price over the previous two years. 
The expected life used in the model has been adjusted, based on management’s best estimate, for the effects of non‑transferability, 
exercise restrictions, and behavioural considerations.
The weighted average fair value of options granted on 13 March 2006 is £0.12.
nOTES TO THE COnSOLIDATED FInAnCIAL STATEMEnTS COnTInUED
FOR THE yEAR EnDED 31 DECEMBER 2007 Anglo Asian Mining PLC
Annual report and accounts 2007 31
25. Share‑based payments continued
TOTAL ShARE‑BASED PAYMENT ExPENSE RECOGNISED BY ThE GROuP
The Group recognised total expenses of $486,515 and $776,668 related to equity‑settled share‑based payment transactions 
in 2007 and 2006 respectively.
The cumulative amount recognised in equity relating to share‑based payments at the balance sheet date was $1,852,752 
(2006: $1,366,237).
26. Contingencies and commitments
Obligations under the PSA (“Production Sharing Arrangement”) – The PSA contains various provisions relating to the obligations 
of the R.V. Investment Group Services LLC (“RVIG”) including carrying out certain tasks by certain dates.
The Directors believe that RVIG is in compliance with the requirements of the PSA.
Environmental liability – RVIG is required to comply with the clauses contained in the PSA relating to environmental damage. 
The Directors believe RVIG is substantially in compliance with the environmental clauses contained in the PSA.
There are no operating lease commitments at 31 December 2007. 
There were no capital commitments at 31 December 2007.
27. Events after the balance sheet date
The following subsequent events relate to the period from 31 December 2007 to the date of approval of the financial statements 
on 25 June 2008.
The Group has obtained a credit facility with the International Bank of Azerbaijan of $5 million repayable after three years, expiring 
on 14 January 2011, with an interest rate of up to 15%. Repayments in equal monthly instalments are due from February 2010.
The International Bank of Azerbaijan has also agreed a credit facility of $20 million at an all inclusive interest rate of 15%. The facility 
agreement is four years from 15 February 2008 with a two year grace period to repay the monies loaned. In 2010 $8 million is due 
to be repaid in quarterly instalments, and in 2011 $5 million and $7 million are repayable in March and June respectively. There is no 
penalty for early repayment.
28. Related party transactions
Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation 
and are not disclosed in this note. Transactions between the Group and other related parties are disclosed below. 
TRADING TRANSACTIONS
During the years 2007 and 2006, there were no trading transactions between Group companies and related parties who are not 
members of the Group.
OThER RELATED PARTY TRANSACTIONS
a)  Mr Charles Hancock was a Director of and has a controlling interest in Anglo‑Suisse Capital Limited. During 2006 services were 
provided by Anglo‑Suisse Capital Limited to the Company at arm’s length as follows:
      Year  Year 
      ended  ended 
      31 December  31 December 
      2007  2006 
      uS$  US$
Corporate finance and administrative services, including provision of office facilities  —  28,360
As at 31 December 2007 the Company owed Anglo‑Suisse Capital Limited $nil (2006: $20,520).
b)  Mr Reza Vaziri retains an indirect interest in the lease of the office in Baku, Azerbaijan. The cost of the lease in the year 
was $93,904 (2006: $98,766).
c)  Shares issued to Directors are disclosed in the directors’ report.
REMuNERATION Of KEY MANAGEMENT PERSONNEL
The remuneration of the Directors who are the only key management personnel of the Group, is set out below in aggregate 
for each of the categories specified in IAS 24 Related Party Disclosures.
      Year  Year 
      ended  ended 
      31 December  31 December 
      2007  2006 
      uS$  US$
Short‑term employee benefits     1,210,946  1,092,237
Post‑employment benefits     49,733  48,262
Share‑based payment     482,998  740,282
      1,743,677  1,880,781
29 Transition to IfRS
The Group’s financial statements for the year ended 31 December 2007 are the first annual financial statements that comply with 
IFRS. The adoption of IFRS has not required any adjustments to the financial statements for the previous year under UK GAAP. Anglo Asian Mining PLC
Annual report and accounts 2007
32
We have audited the parent company financial statements of Anglo Asian Mining PLC for the year ended 31 December 2007 
which comprise the balance sheet and the related notes 1 to 17. These parent company financial statements have been prepared 
under the accounting policies set out therein.
We have reported separately on the Group financial statements of Anglo Asian Mining PLC for the year ended 31 December 2007. 
That report is modified by the inclusion of an emphasis of matter.
This report is made solely to the Company’s members, as a body, in accordance with Section 235 of the Companies Act 1985. 
Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state 
to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume 
responsibility to anyone other than the Company and the Company’s members as a body, for our audit work, for this report, 
or for the opinions we have formed.
Respective responsibilities of directors and auditors
The Directors’ responsibilities for preparing the annual report and the parent company financial statements in accordance with 
applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) are set 
out in the statement of directors’ responsibilities.
Our responsibility is to audit the parent company financial statements in accordance with relevant legal and regulatory 
requirements and International Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the parent company financial statements give a true and fair view and whether the 
parent company financial statements have been properly prepared in accordance with the Companies Act 1985. We also report 
to you whether in our opinion the directors’ report is consistent with the parent company financial statements. 
In addition we report to you if, in our opinion, the Company has not kept proper accounting records, if we have not received 
all the information and explanations we require for our audit, or if information specified by law regarding directors’ remuneration 
and other transactions is not disclosed.
We read the other information contained in the annual report as described in the contents section and consider whether it is 
consistent with the audited parent company financial statements. We consider the implications for our report if we become aware 
of any apparent misstatements or material inconsistencies with the parent company financial statements. Our responsibilities 
do not extend to any further information outside the annual report.
Basis of audit opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices 
Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the parent company 
financial statements. It also includes an assessment of the significant estimates and judgements made by the Directors in the 
preparation of the parent company financial statements, and of whether the accounting policies are appropriate to the Company’s 
circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order 
to provide us with sufficient evidence to give reasonable assurance that the parent company financial statements are free from 
material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall 
adequacy of the presentation of information in the parent company financial statements.
Opinion
In our opinion:
I  the parent company financial statements give a true and fair view, in accordance with United Kingdom Generally Accepted 
Accounting Practice, of the state of the Company’s affairs as at 31 December 2007;
I the parent company financial statements have been properly prepared in accordance with the Companies Act 1985; and
I the information given in the directors’ report is consistent with the parent company financial statements.
Emphasis of matter – going concern and amounts owed by subsidiary undertakings
Without qualifying our opinion we draw attention to the disclosures made in note 1 of the financial statements concerning 
the Company’s ability to continue as a going concern and the recoverability of amounts owed by subsidiary undertakings. 
The Company’s ability to continue as a going concern is dependant upon the Group’s ability to continue as a going concern. 
These conditions along with other matters set out in note 1 indicate the existence of a material uncertainty which may cast 
significant doubt about the Company’s ability to continue as a going concern and the recoverability of amounts owed by 
subsidiary undertakings. The financial statements do not include the adjustments that would result if the Company was unable 
to continue as a going concern as it is not practicable to determine or quantify them. 
Deloitte & Touche LLP
ChARTERED ACCOuNTANTS AND REGISTERED AuDITORS 
London
25 June 2008
InDEPEnDEnT AUDITORS’ REPORT
TO THE MEMBERS OF AnGLO ASIAn MInInG PLC Anglo Asian Mining PLC
Annual report and accounts 2007 33
      2007  2006 
    Notes  uS$  US$
Fixed assets
Tangible assets   3  164,801  10,442,520
Investments   4  1,325,007  1,325,007
      1,489,808  11,767,527
Current assets
Debtors – amounts falling due within one year   6  18,615,802  13,345,427
Cash at bank and in hand   7  6,750,721  6,236,950
      25,366,523  19,582,377
Creditors – amounts falling due within one year   8  (1,248,559)  (916,465)
Net current assets     24,117,964  18,665,912
Net assets      25,607,772  30,433,439
Capital and reserves
Called up share capital   10  1,792,017  1,782,605
Share premium account   11  30,387,514  30,279,301
Accumulated loss   11  (6,571,759)  (1,628,467)
Capital employed     25,607,772  30,433,439
These financial statements were approved by the Board of Directors on 25 June 2008 and were signed on its behalf by:
Gordon Lewis 
ChIEf ExECuTIvE
COMPAny BALAnCE SHEET
AS AT 31 DECEMBER 2007 Anglo Asian Mining PLC
Annual report and accounts 2007
34
1.	 Significant	accounting	policies	and	going	concern
1a. Going concern
As detailed in note 1 to the Group accounts on page 18, there is a material uncertainty which may cast significant doubt on the 
Group’s, and therefore the Company’s ability to continue as a going concern. As a consequence the Company may be unable to 
realise its assets and discharge its liabilities in the normal course of business. In addition, these uncertainties could result in the 
subsidiaries not being able to discharge their liabilities to the Company which at 31 December 2007 amounted to $18,500,516. 
For the reasons set out in note 1 to the Group accounts, the Directors have formed a judgement which assumes at the time of 
approving these financial statements that the amounts owed by the subsidiary undertakings will be recoverable and that it is 
appropriate to continue to adopt the going concern basis.
1b.	 Significant	accounting	policies
BASIS Of PREPARATION
The parent company financial statements of Anglo Asian Mining PLC (the “Company”) are presented as required 
by the Companies Act 1985 and were approved for issue on 25 June 2008.
The financial statements are prepared under the historical cost convention and are prepared in accordance with United Kingdom 
Generally Accepted Practice.
no profit and loss account is presented by the Company as permitted by Section 230 of the Companies Act 1985 and the 
Company has taken the exemption under FRS 1 not to present a cash flow statement.
The Company has taken advantage of the exemption in paragraph 2D of FRS 29 Financial Instruments: Disclosures and has 
not disclosed information required by that standard, as the Group’s consolidated financial statements, in which the Company 
is included, provide equivalent disclosures for the Group under IFRS 7 Financial Instruments: Disclosures.
The Company has taken advantage of the exemption in paragraph 36 of FRS 8 Related Party Disclosures and has not disclosed 
information required by that standard, as the Group’s consolidated financial statements in which the Company is included, 
provide equivalent disclosures for the Group.
TANGIBLE fIxED ASSETS
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Such cost included costs 
directly attributable to making the asset capable of operating as intended. Borrowing costs attributable to assets under construction 
are recognised as an expense when incurred.
Depreciation is provided on cost in annual instalments over the estimated useful lives of assets which are reviewed annually. 
The rates of depreciation are as follows:
Office and computer equipment  25% decreasing balance
The carrying values of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate that 
the carrying amount may not be recoverable.
INvESTMENTS
Investments in subsidiaries are stated at cost less, where appropriate, provisions for impairment.
LEASED ASSETS
Rentals where substantially all of the benefits and risks of ownership remain with the lessor are charged to the profit and loss 
account on a straight‑line basis over the period of the lease.
DEBTORS
Debtors are recognised and carried at the lower of their original invoiced value and recoverable amount. Provision is made when 
there is objective evidence that the Company will not be able to recover the balances in full.
DEfERRED TAxATION
Deferred tax assets are not recognised in respect of timing differences relating to tax losses where there is insufficient evidence 
that the asset will be recovered.
ShARE‑BASED PAYMENTS
The Company has applied the requirements of FRS 20 Share‑based Payment from 1 January 2006. In accordance with the transitional 
provisions, FRS 20 has been applied to all grants of equity instruments after 7 november 2002 that were unvested as of 1 January 2006. 
Application of this standard has been applied retrospectively.
The Company issues equity‑settled share‑based payments to certain employees. Equity‑settled share‑based payments are measured 
at fair value at the date of grant. The fair value determined at the date of the equity‑settled share‑based payments is expensed 
on a straight‑line basis over the vesting period, based on the Company’s estimate of shares that will eventually vest.
Fair value is measured by use of the Black‑Scholes pricing model. The expected lives used in the model have been adjusted, 
based on management’s best estimate, for the effects of non‑transferability, exercise restrictions and behavioural considerations.
2. Loss attributable to members of the parent company
The loss dealt with in the financial statements of the parent company is $5,429,807 (2006: $2,133,204).
nOTES TO THE COMPAny FInAnCIAL STATEMEnTS
FOR THE yEAR EnDED 31 DECEMBER 2007 Anglo Asian Mining PLC
Annual report and accounts 2007 35
3.	 T angible	fixe d	assets
  Office  Assets held for  Assets under   
  equipment  disposal  construction  Total 
  US$  US$  US$  US$
Cost
As at 1 January 2007 20,070  10,273,887  154,615  10,448,572
Disposals —  (10,273,887)  —  (10,273,887)
As at 31 December 2007 20,070  —  154,615  174,685
Accumulated depreciation
As at 1 January 2007 (6,052)  —  —  (6,052)
Charge for year (3,832)  —  —  (3,832)
As at 31 December 2007 (9,884)  —  —  (9,884)
Net book value
As at 31 December 2006 14,018  10,273,887  154,615  10,442,520
As at 31 December 2007 10,186  —  154,615  164,801
4. Investments
      Year  Year 
      ended  ended 
      31 December  31 December 
      2007  2006 
      uS$  US$
Shares in subsidiary undertakings
Anglo Asian Operations Limited     1,325,007  1,325,007
5. List of subsidiaries
Details of the Company’s subsidiaries at 31 December 2007 are as follows:
        Percentage 
     Country of  Primary of holding 
name   incorporation  activity %
Anglo Asian Operations Limited   Great Britain  Holding Company 100
Holance Holdings Limited   British Virgin Islands  Holding Company 100
Anglo Asian Cayman Limited   Cayman Islands  Holding Company 100
R.V. Investment Group Services LLC   Delaware, USA  Mineral development 100
Azerbaijan International Mining Company Limited   Cayman Islands  Mineral development 100
6. Debtors
      Year  Year 
      ended  ended 
      31 December  31 December 
      2007  2006 
      uS$  US$
Amounts falling due within one year:
Prepayments     89,694  112,072
HMRC     1,544  19,784
other debtors     24,048  18,028
Amounts owed by subsidiary undertakings     18,500,516  13,195,543
      18,615,802  13,345,427 Anglo Asian Mining PLC
Annual report and accounts 2007
36
7. Cash
There are no restrictions over the access to, and use of, the Company’s bank and cash balances, other than those that customarily 
relate to periodic short‑term deposits.
8. Creditors
      Year  Year 
      ended  ended 
      31 December  31 December 
      2007  2006 
      uS$  US$
Amounts falling due within one year:
trade creditors     61,422  102,432
other creditors     22,738  74,258
Accruals     1,164,399  739,775
      1,248,559  916,465
9. Deferred taxation
      Year  Year 
      ended  ended 
      31 December  31 December 
      2007  2006 
      uS$  US$
The elements of unrecognised deferred taxation are as follows:
Tax losses     896,407  497,482
Unrecognised deferred tax asset     896,407  497,482
A deferred tax asset has not been recognised in respect of timing differences relating to tax losses as there is insufficient evidence 
that the asset will be recovered. none of the assets are recognised. The asset would be recovered if suitable taxable profits were 
generated in future periods.
10. Share capital
 2007  2006
  Number  £  Number  £
Authorised
Ordinary shares of 1p each 600,000,000  6,000,000  600,000,000  6,000,000
  Number  uS$  number  US$
Allotted and fully paid
At the beginning of the year 99,171,800  1,782,605  99,171,800  1,782,605
At the end of the year 99,621,880  1,792,017  99,171,800  1,782,605
11. Reconciliation of shareholders’ funds and movements on reserves
    share     
  Share  premium  Accumulated  Shareholders’ 
  capital  account  loss  funds 
  US$  US$  US$  US$
As at 1 January 2007 1,782,605  30,279,301  (1,628,467)  30,433,439
Loss for the year —  —  (5,429,807)  (5,429,807)
Share issues 9,412  108,213  —  117,625
Share‑based payment —  —  486,515  486,515
As at 31 December 2007 1,792,017  30,387,514  (6,571,759)  25,607,772
nOTES TO THE COMPAny FInAnCIAL STATEMEnTS COnTInUED
FOR THE yEAR EnDED 31 DECEMBER 2007 Anglo Asian Mining PLC
Annual report and accounts 2007 37
12. Share‑based payments
EquITY‑SETTLED ShARE OPTION SChEME
Details in relation to the Company’s equity‑settled share option scheme is given in note 25 to the consolidated financial statements.
13. Commitments and contingencies
Obligations under the PSA (“Production Sharing Arrangement”) – The PSA contains various provisions relating to the obligations 
of the R.V. Investment Group Services LLC (“RVIG”) including carrying out certain tasks by certain dates.
The Directors believe that RVIG is in compliance with the requirements of the PSA.
Environmental liability – RVIG is required to comply with the clauses contained in the PSA relating to environmental damage. 
The Directors believe RVIG is substantially in compliance with the environmental clauses contained in the PSA.
There are no operating lease commitments.
14. Subsequent events
There were no subsequent events in the period from 31 December 2007 to the date of approval of these financial statements 
on 25 June 2008.
15. Auditor’s remuneration
The Company paid $23,700 (2006: $29,458) to its auditors in respect of the audit of the financial statements of the Company.
Fees paid to Deloitte & Touche LLP and its associates for non‑audit services to the Company itself are not disclosed in the individual 
accounts of Anglo Asian Mining PLC because Group financial statements are prepared which are required to disclose such fees 
on a consolidated basis.
16. Related parties
The information in relation to related parties is given in note 28 to the consolidated financial statements.
17. Staff numbers and costs
The average numbers of persons employed by the Company (including Directors) during the year analysed by category was as follows:
      Year  Year 
      ended  ended 
      31 December  31 December 
      2007  2006 
      number  number
Management and administration     5  8
The aggregate payroll costs of these persons were as follows:
      Year  Year 
      ended  ended 
      31 December  31 December 
      2007  2006 
      uS$  US$
Wages and salaries     311,691  589,357
Social security costs     31,122  77,496
pension costs     19,733  23,422
Total employee costs     362,546  690,275 Anglo Asian Mining PLC
Annual report and accounts 2007
38
notice is hereby given that the AGM of the Company will be held at the offices of Hammonds LLP, 7 Devonshire Square, 
London EC2M 4yH on Wednesday 23 July 2008 at 9.30am at which the following matters will be dealt with:
Ordinary business
To consider and if thought fit to pass the following resolutions which will be proposed as ordinary resolutions.
1  To receive the Company’s report and accounts for the financial year ended 31 December 2007 together with the auditors’ 
report on those accounts.
2 To elect Khosrow Zamani as a Director of the Company.
3 To re‑elect Mohammed Reza Vaziri as a Director of the Company.
4  To re‑appoint Deloitte & Touche LLP as auditors of the Company to hold office from the conclusion of this Meeting until 
the conclusion of the next AGM at which accounts are laid before the Company and to authorise the Directors to determine 
the remuneration of the auditors.
Special business
To consider and, if thought fit, to pass the following resolutions, of which resolution number 5 will be proposed as an ordinary 
resolution and resolution numbers 6 and 7 will be proposed as special resolutions:
5  That for the purposes of Section 80 of the Companies Act 1985 (the “Act”) (and so that expressions defined in that section 
shall bear the same meanings as in this resolution) the Directors be, and they are, generally and unconditionally authorised 
to exercise all the powers of the Company to allot relevant securities up to a maximum nominal amount of £333,817 
to such persons at such times and on such terms as they think proper during the period expiring on the date of the next AGM 
after the passing of this resolution (or any adjournment thereof) save that the Company may before such expiry make an offer 
or agreement which would or might require relevant securities to be allotted after such expiry and the Board may allot relevant 
securities in pursuance of such offer or agreement as if the authority conferred by this resolution had not expired.
6  That the Articles of Association be amended by the deletion of the words “two times the Adjusted Capital and Reserves” 
in Article 28.2 and the insertion of the words “four times the Adjusted Capital and Reserves”.
7  That subject to the passing of the previous resolution the Directors be and they are hereby generally and unconditionally 
authorised and empowered to allot for cash or otherwise equity securities (as defined in Section 94(2) of the Act) of the 
Company pursuant to the authority conferred by resolution 5 above as if Section 89(1) of the Act did not apply to such 
allotment provided that this power shall be limited to the allotment of equity securities:
 (a)  in connection with a rights issue, open offer or otherwise in favour of the holders of ordinary shares of 1p each 
(“Ordinary Shares”) where the equity securities respectively attributable to the interests of all such shareholders are 
proportionate (as nearly as may be practicable) to the respective numbers of ordinary shares held by them on the record 
date for such allotment but subject to such exclusions or other arrangements as the Directors may deem necessary 
or expedient in relation to fractional entitlements or legal or practical problems under the laws of, or the requirements, 
of any recognised regulatory body or any stock exchange in any territory;
 (b) pursuant to the terms of any share schemes for Directors and employees of the Company or any of its subsidiaries; and
 (c)  otherwise than pursuant to subparagraphs (a) and (b) above of equity securities not exceeding in aggregate the nominal 
amount of £100,145 provided further that the authority hereby granted shall expire at the conclusion of the next AGM 
after the passing of this resolution (or any adjournment thereof) save that the Directors shall be entitled to make at any 
time before the expiry of the power hereby conferred any offer or agreement which might require equity securities to 
be allotted after the expiry of such power.
By order of the Board
Janette Davies
COMPANY SECRETARY
7 Devonshire Square 
London EC2M 4Yh
25 June 2008
Notes:
1  A member entitled to attend and vote at the meeting is entitled to appoint a proxy or proxies to exercise any of their rights to attend, speak and 
vote on their behalf at the AGM. A proxy need not be a member of the Company. Where more than one proxy is appointed, each proxy must be 
appointed for different shares. A proxy form is enclosed. Completion and return of a proxy form will not preclude a member from attending 
and voting at the meeting should he subsequently decide to do so. To be effective, the proxy form and any power of attorney or other such 
instrument (if any) under which it is signed or a notarially certified copy of such power of attorney must be deposited at the offices 
of Anglo Asian Mining PLC c/o 7 Ensign House, Admirals Way, London E14 9xQ not less than 48 hours before the time of the AGM.
2  In accordance with Regulation 41 of the Uncertificated Securities Regulations 2001, only those members entered on the register of members of the 
Company 48 hours before the time of the AGM are entitled to vote in respect of shares registered in their name at that time. Changes to the register 
of members after 48 hours before the time of the AGM shall be disregarded in determining the rights of any person to attend or vote at the AGM.
3  The register of interests of the Directors and their families in the share capital of the Company, copies of contracts of service with the Company 
and current and amended Articles of Association will be available for inspection at the AGM for 15 minutes prior to the start of the AGM until 
its conclusion.
nOTICE OF AnnUAL GEnERAL MEETInG Anglo Asian Mining PLC
Annual report and accounts 2007 39
FORM OF PROxy
Before completing this form, please read the explanatory notes below.
I/We 
(BLOCK LETTERS)
of 
being a member of Anglo Asian Mining PLC hereby appoint
name 
number of shares 
or failing him the Chairman of the AGM as my/our proxy to exercise all or any of my/our rights to attend, speak and vote 
in respect of my/our voting entitlement on my/our behalf at the AGM of the Company to be held at 7 Devonshire Square, 
London EC2M 4yH on Wednesday 23 July 2008 at 9.30am and at any adjournment thereof. I/we request the proxy to vote 
on the following resolutions as indicated.
 Ordinary resolutions for Against
 1 To receive the report of the Directors and the accounts for the year ended 31 December 2007.
 2 To elect Khosrow Zamani as a Director.
 3 To re‑elect Mohammad Reza Vaziri as a Director.
 4 To re‑appoint Deloitte & Touche LLP as auditors.
 5 To authorise the allotment of securities as described in the notice of AGM.
 Special resolutions
 6 To amend the Articles of Association as described in the notice of AGM.
 7 To disapply statutory pre‑emption rights as described in the notice of AGM.
Signature or common seal Date  2008
Notes:
I  you may appoint a proxy or proxies of your own choice to exercise all or any of your rights to attend, speak and vote on your behalf at the 
AGM. The Chairman of the AGM shall act as a proxy unless another proxy is desired. A proxy need not be a member of the Company. A proxy 
will act in his/her discretion in relation to any business, other than that above, at the AGM (including any resolution to amend a resolution or 
to adjourn the AGM). To appoint more than one proxy you may photocopy this form. Please indicate the proxy holder’s name and the number 
of shares in relation to which they are authorised to act as your proxy (which, in aggregate shall not exceed the number of shares held by you).
I  If the proxy is being appointed in relation to less than your full voting entitlement, please enter the number of shares in the space provided. 
If left blank your proxy will be taken to have been given in respect of your full voting entitlement.
I  In the case of a corporation, this form of proxy must be executed under its common seal or signed on its behalf by an officer of the corporation 
or an attorney duly authorised in writing.
I  Please indicate how you wish your vote to be cast. If you do not indicate how you wish your proxy to use your vote on any particular matter the proxy 
will exercise his discretion both as to how he votes and as to whether or not he abstains from voting.
I  In the case of joint holders only one need sign as the vote of the senior holder who tenders a vote will alone be counted. For this purpose, 
seniority shall be determined by the order in which the names of such holders stand in the register of members in respect of the joint holding.
I  To be effective this form of proxy must be completed, signed and must be lodged (together with any power of attorney or duly certified copy 
thereof under which this proxy is signed) at the offices of Anglo Asian Mining PLC c/o 7 Ensign House, Admirals Way, London E14 9xQ not less 
than 48 hours before the time appointed for the AGM.
I  In accordance with Regulation 41 of the Uncertificated Securities Regulations 2001, only those members entered on the register of members 
of the Company 48 hours before the time of the AGM are entitled to vote at the AGM in respect of shares registered in their name at that time. 
Changes to the register of members after 48 hours before the time of the AGM shall be disregarded in determining the rights of any person 
to attend or vote at the AGM.
 First Class 
Stamp Required
Anglo Asian Mining PLC
7 Ensign House
Admirals Way
London E14 9XQ
first fold
second fold
third fold and tuck in AZERBAIJAN OFFICE
16 H.Aleskerov str. 
Baku 
Republic of Azerbaijan
SECRETARY AND REGISTERED OFFICE
MS JANETTE DAvIES
7 devonshire Square 
cutlers gardens 
London Ec2M 4yH 
united Kingdom
COMPANY NUMBER
05227012
Registered in England and w ales
v AT REGISTRATION NUMBER
872 3197 09
BANKERS – UNITED KINGDOM
ANGLO IRISh BANK
10 old Jewry 
London Ec2R 8dn 
united Kingdom
SOLICITORS – UNITED KINGDOM
hAMMONDS
7 devonshire Square 
cutlers gardens 
London Ec2M 4yH 
united Kingdom
SOLICITORS – AZERBAIJAN
MGB LAw OFFICES
340 nizami Street 
iSR Plaze, 3rd Floor 
Baku 
Azerbaijan 
AZ1000
AUDITORS
DELOITTE & TOUChE LLP
Stonecutter court 
1 Stonecutter Street 
London Ec4A 4TR 
united Kingdom
NOMINATED ADvISER AND BROKER
NUMIS SECURITIES LIMITED
10 Paternoster Square 
London Ec4M 7LT 
united Kingdom
FINANCIAL PR ADvISERS
PARKGREEN COMMUNICATIONS
Pegasus House 
37–42 Sackville Street 
London w1S 3EH 
united Kingdom
REGISTRAR
CAPITA REGISTRARS
The Registry 
34 Beckenham Road 
Beckenham 
Kent BR3 4Tu 
united Kingdom
coRPoRATE inFoRMATion
COMPANY DIARY
September 2008  interim results 
31 december 2008  Financial year end 
June 2009  Preliminary results 
July 2009   Annual general Meeting Anglo Asian Mining PLC
16 H. Aleskerov Str. Baku 
Republic of Azerbaijan
TEL +994 (12) 596 3350 
FAX +994 (12) 596 3354
www.aamining.com
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