[cid:image001.jpg@01CD4497.91B6A8F0] FAIRFAX I.S.

PLC, 46 Berkeley Square, Mayfair, London W1J 5AT, United Kingdom www.fairfaxplc.com Anglo Asian Mining* (AAZ LN) 34p/s, mkt cap �38m - JORC gold reserve rises to 744,038oz BUY - Target price 70p/s * Anglo Asian have reported a new JORC gold reserve of 744,038oz. * Reserve grades are 1.139g/t of gold, 0.293% copper and 9,456g/t silver. * The new reserve is more than double the last companys internal reserve estimate of 311,000oz of recoverable gold and shows good conversion of resource to reserve with the resource model. * Greater understanding of the orebody and the ongoing identification of mineralisation beyond the current resource indicates further significant uplift in the reserve and resource next year. * Proven recoverable Ore Resource = 532,607oz eg gold recovered along with 11,305t copper and 1,711,075oz silver. * A further 90,000oz of gold is contained in the heap leach and within the leaching process raising the Proven Ore Resource to over 600,000oz. * A flotation plant is to be built to process sulphide ores in later years. * Two or more mineralised phases of the orebody give rise to higher grades and ore tonnages than expected and we see the mine as continuing to provide better feed to the plant than predicted in the JORC model. Conclusion: Outlying drilling continues to extend the scale of the JORC resource while infill drilling is increasing the scale of the economic mineable reserve.

The orebody is far larger than previous expectations and continues to grow as drilling confirms the geological model. December year end
2010A 2011A 2012E 2013E 2014E 2015E 2016E
Gold price
US$/oz 1,241 1,571 1,603 1,700 1,500 1,250 1,250 Gold produced (incl the Government share)
koz 67.3 57.1 54.1 50.9 82.2 82.2 76.4 Cash costs (net of byproducts)
US$/oz 412 490 548 640 444 581 607 Revenue
US$m 72.0 83.8 90.0 84.5 117.0 80.7 75.4 EBITDA
US$m 47.0 50.6 45.6 40.2 74.2 37.8 34.6 PBT
US$m 19.8 31.6 29.4 23.2 55.5 19.4 17.4 PAT
US$m 15.2 18.8 17.4 13.2 35.8 11.3 10.0
Basic EPS
cents 13.9 16.9 15.6 11.9 32.3 10.2 9.0 Diluted EPS
cents 13.4 16.5 15.2 11.6 31.4 9.9 8.8
Basic PER
x 2.68 4.60 3.48 4.57 1.69 5.35 6.05 Diluted PER
x 2.79 4.72 3.57 4.69 1.73 5.49 6.20
Net cash flow
US$m 4.3 3.3 10.8 25.8 52.7 21.1 18.5
Share price
cents 37.3 77.8 54.4 54.4 54.4 54.4 54.4
*Fairfax acts as Nomad and broker to Anglo Asian Mining ** Fairfax analysts visited the Gedabek goldmine last year in Azerbaijan. [cid:image002.jpg@01CD4497.91B6A8F0] DISCLAIMER This note has been issued by Fairfax I.S.

PLC in order to promote its investment services. This information is a marketing communication for the purpose of the European Markets in Financial Instruments Directive (MiFID) and FSAs Rules.

It has not been prepared in accordance with the legal requirements designed to promote the independence or objectivity of investment research. This document is not based upon detailed analysis by Fairfax of any market; issuer or security named herein and does not constitute a formal research recommendation, either expressly or otherwise. The value of investments contained herein may go up or down.

Where investment is made in currencies other than the base currency of the investment, movements in exchange rates will have an effect on the value, either favourable or unfavourable.

Securities issued in emerging markets are typically subject to greater volatility and risk of loss. This [note] is confidential and is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published in whole or in part, for any purpose. Neither the information nor the opinions expressed herein constitutes, or is to be construed as, an offer or invitation or other solicitation or recommendation to buy or sell investments.

This information is for the sole use of Eligible Counterparties and Professional Customers only and is not intended for Retail Clients, as defined by the rules of the Financial Services Authority ("FSA") and subject to Fairfaxs Terms of Business as published or communicated to clients from time to time. It is not investment advice and does not take into account the investment objectives and policies, financial position or portfolio composition of any recipient.

This document should not to be relied upon as authoritative or taken in substitution for the exercise of you own commercial judgment.

Fairfax I.S.

PLC is not responsible for any errors, omissions or for the results obtained from the use of the information in this document. This document has been prepared on the basis of economic data, trading patterns, actual market news and events, and is only valid on the date of publication.

Fairfax does not make any guarantee, representation or warranty, (either expressly or implied), as to the factual accuracy, completeness, or sufficiency of information contained herein.

This document has been prepared by the author based upon information sources believed to be reliable and prepared in good faith. Fairfaxs officers, directors and employees may own or have positions in any investment(s) mentioned herein or related thereto and may, from time to time add to, or dispose of, any such investment(s). Fairfax I.S.

PLC is a company registered in England and Wales with company number 5496355 and whose registered office address is 46, Berkeley Square, Mayfair, London W1J 5AT.

Fairfax I.S.

PLC is authorised and regulated by the Financial Services Authority whose address is 25, The North Colonnade, Canary Wharf, London E14 5HS and is a Member of the London Stock Exchange plc.
Analysts:
Mining John Meyer 7 598 5364 / 0794 303 1001
Carole Ferguson 7 598 5362
Angus Burt 7 460 4397
Sergey Raevskiy 7 598 5372
Renewables Phil Smith 7 460 4386
Equity Trading Suzi Skinner 7 460 4364
Equity Sales Jody Downes 7 460 4375
Richard Parlons 7 598 5367
www.fairfaxplc.com