Altyn : Results for the year ended 31 December 2016

("Altyn" or the "Company")

Results for the year ended 31 December 2016

Altyn Plc (LSE:ALTN) an exploration and development company, is pleased to announce its results for the year ended 31 December 2016.

• During the year the first transport decline was taken from 250masl (metres above sea level) to 200masl. The decline will now stop at this level.

• Second transport decline was taken from the 250masl and is currently being developed to 225masl.

• Completion of works on the second decline from 250masl to the bottom of the open pit at 320masl.

• Access portal, for the second transport decline was completed during H2 2016.

• Ventilation shafts and ancillary services for the mine works were completed.

• Tailings dam 4 was completed in January 2017. It covers an area of 190,000sqm and has the capacity to absorb 1m tonnes of tailings, and will have an operational capacity of 2-3 years on the basis of the planned production increases.

• Capital investment of US$5.6m (2015: US$9.6m) which includes 30 tonne haulage trucks and new load-haul-dumper (LHD), used to fill the underground trucks with ore. The principal operational fleet is to be further enhanced with an additional 30 tonne haulage truck in 2017 and an additional LHD, to be purchased in 2017.

  Financial Highlights

• Debt raising of US$12m through the issue of convertible bonds, (2015: US$5.1m equity raising) and US$1.66m through unsecured loans.

• Turnover decreased in the year to US$15.9m (2016: US$24.1m).

• 12,602oz of gold sold (2015: 20,890oz), a reduction of 8,288oz.

• Average gold price achieved (including silver as a by-product), US$1,259oz, (2015: US$1,173oz).

• Adjusted EBITDA (Earnings before interest, tax, depreciation and amortisation excluding impairment) of US$260,000 (2015: negative US$2.3m).

  Operational Highlights

• Gold poured 10,970oz, (2015: 15,534oz) a 29.4% decrease year-on-year, due to the continuing development of the second transport decline that resulted in a lower production in the year.

• Underground gold grade 2.70g/t, (2015: 2.55g/t).

• Operating cash cost US$846/oz, (2015: US$837/oz).

• Gold recovery rate 80.20% (2015:76.04%) the improvement is in line with expectations as the higher grade ore is processed.

  Neil Herbert, Director of Altyn Plc commented:

  "The 2016 annual results are in line with expectations, production declined as resources were switched to develop the second decline and infrastructure in order to access the high grade underground ore. With the solid platform developed in 2016, we look forward to progressing the underground mine in 2017, with rising production and profitability."

  For further information please contact:

  Altyn Plc

  Rajinder Basra, CFO +44 (0) 207 932 2456

  VSA Capital (Corporate Broker)

  Andrew Monk / Andrew Raca +44 (0) 203 005 5000

  Blytheweigh (Financial PR)

  Tim Blythe/Camilla Horsfall +44 (0) 207 138 3204

  Information on the Company

  Altyn is a gold mining, exploration and development group based in Kazakhstan. Whilst the Company was initially established to exclusively develop and operate the Sekisovskoye gold and silver mine in the East Kazakhstan Region, it is now actively targeting additional gold mining opportunities in Kazakhstan. This includes the adjacent prospective Karasuyskoye Ore Fields, on which Altyn was recently awarded the tender to perform further confirmatory testing in order to gain the sub-soil user licence.

  The Company holds a 100 per cent shareholding in DTOO GRP Baurgold (Formerly DTOO Gornorudnoe Predpriatie Sekisovskoye ) which holds a subsoil use contract in relation to the Sekisovskoye deposit, covering a total area of 0.855km². The subsoil use contract for Sekisovskoye is valid until 2020 and the Company currently intends to seek to extend the contract in accordance with its terms. The Company also holds a 100 per cent shareholding in TOO GMK Altyn MM (formerly TOO Altai Ken-Bayitu), which owns and operates the processing plant at the Sekisovskoye deposit. The Sekisovskoye deposit is located at the village of Sekisovskoye, approximately 40km north of the town of Ust-Kamenogorsk, the capital city of the East Kazakhstan Region. The current operation is focused on mining the near-vertical deposits which extend to the surface below the open pits which have been previously mined.

  The Company intends that the Sekisovskoye deposit shall become a selective-mining underground operation. As at 31 May 2014, the Company's proven and probable reserves consisted of 2.67moz of gold and 3.52moz of silver and the Company's measured, indicated, inferred resources consisted of 5.14moz of gold, and 3.52moz of silver, in each case as classified in accordance with JORC.

  Chairman's Statement

  Dear shareholders,

  The focus in 2016 as in the prior year has been on moving the underground project forward as efficiently as possib requirements, and ensure our loan commitments are met.

  In relation to the latter the Company currently has a bank loan with EBRD, the capital amount outstanding as at the date Company raised US$12m through the issue of convertible bonds with a coupon rate of 10%. The proceeds include US$2m major shareholder. Additionally, a total of US$1.7m was raised in the form of 13% unsecured loans from the major shar working capital commitments, repay the loan commitments as noted above, in addition to acquiring the capital assets in the

  In order to continue with the underground development plans and move towards the targeted production levels the Co investment in the underground development. As part of the process of engaging with potential investors the Company ha actively market the company. We will keep shareholders updated as the financing progresses.

  The Company has made significant progress utilising the funding so far, and the transition to the underground mine is progr anticipated schedule of approximately 9 months. The underground ore mined in H1 2016 was 28,824mt and in H2 71,939mt rate of 29,000t in 2017, with the anticipation to increasing this toward the target of 40-45,000t during 2017.

  The gold price is still favourable and stable and has been trading in the range of US$1,200/oz -US$1,300oz. As interest rates put under downward pressure. However, based on the Company's revenue and cost assumptions the profits going forward a

  In summary we have now developed the platform to move forward. The forthcoming years, will see the fortunes of the move towards our target of 100,000oz of gold a year.

  Finally, may I once again thank all our employees and our Management team for their hard work and also thank our share forward to a challenging and exciting year ahead for Altyn.

  Kanat Assaubayev Chairman

  Chief Executive Officer's Report Overview

  The management team have had a successful year in advancing the development of the underground mine. The exercise was time consuming and technically difficult in a number of areas leading to a delay from the planned time table, essentially pushing the development back by approximately 9 months from that initially envisaged.

  MAP OF UNDERGROUND MINE SOWING DECLINES Current developments

  To summarise the following progress was achieved in the development of the underground mine in the year, building a solid platform for production growth going forward:

  • Development of the first decline which was taken from the 250masl down to 200masl, this gave access to ore body 11. The first decline will now be terminated at this level and the second decline will be used in the future to access the ore bodies. Development of the second decline has significantly reduced the haulage distance to the underground tracks. The decline was taken from the 250masl up to the 320masl to give access to the bottom of the open pit, and a transport portal was constructed. It is also currently in the process of being further developed to 225masl giving access to a number of ore bodies at this level.

  • Ore bodies were prepared for production including ore body 10 and also ore body 5, the latter was originally expected to be producing ore in H2 2016, however the delay pushed this back to Q1 2017.