Proposed Subscription, Support and Arrangements

AIM: EMED TSX: EMD                                     6 February 2012
Proposed Subscription, Cost Overrun Support and Off-take Arrangements
                    with Cornerstone Customer

EMED Mining Public Limited ("EMED Mining" or "the Company"), the
Europe-based minerals development and exploration company, is pleased
to announce that the Company and one of its subsidiaries have entered
into conditional agreements with a cornerstone customer Yanggu
Xiangguang Copper Co. Ltd ("XGC") for an aggregate funding package of
US$30 million (intended as to half in the form of share capital and
half in the form of a future standby debt facility) in exchange for a
10% ordinary equity position in EMED Mining (on a fully-diluted basis)
and the grant of limited off-take rights over the Rio Tinto Mine's
copper production.
Highlights of transaction with XGC

- XGC to provide $15 million equity by way of a subscription for
new ordinary shares in the Company at a price of 9 pence per share (or
approximately US$0.14) (the "Subscription").
- XGC to conditionally agree to provide or arrange a $15 million
subordinated debt facility as required by the providers of senior debt
finance (who will be providing the senior debt for the purposes of the
restart of operations of the Rio Tinto Mine) (the "Cost Overrun
Support").
- The Company's subsidiary, EMED Marketing Limited ("EMED
Marketing") has granted XGC off-take rights over 25% of current
reported copper reserves, at market prices.
- XGC would complement the existing strong international
shareholder base dominated by European, North American and Australian
shareholders.

Further information on the transaction with XGC and the related
agreements between the parties are set out below.

Highlights of Concurrent Activities

- The Company is also in advanced discussions with potential
project financiers with a view to finalising a mandate in respect of
the provision of project debt of $175 million.
- The agreements with XGC together with the project finance
negotiations represent part of the planned finance, hedging, bonding
and insurance package for the start-up funding of the Rio Tinto Mine,
subject to a number of conditions including Spanish regulatory
approvals and shareholder approval.
- Discussions continue with the regulatory authorities in
Andalucia, Spain on the various permits required to start project works
at the end of 2012 and production to start in 2013. As part of the
project preparations, EMED Mining has ensured that the Andalucian
Government has also met most of the Company's carefully assembled set
of large shareholders including XGC.
In relation to the potential mandate to project financiers, the Company
is in advanced detailed discussions with a number of leading global
financial institutions and a further announcement is expected to be
made on this in due course. The quantum of $175 million caters for
previously reported project capital estimates supplemented by
contingency provisions for the expanded land footprint agreed with the
Andalucian Government, anticipated revisions in equipment
specifications or prices, foreign exchange movements and working
capital buffers.