Auriant Mining AB (publ.) H1 2013 Operational Upda

Highlights

• Production for the Group increased by c. 220% compared to H1 2012 and amounted to 249.5 kg (8,021 oz.), including 115 kg (3,698 oz) produced in June, on target to achieve the range for the year set by the company of 1,000 – 1,200 kg (c. 32,150 – 38,580 oz.)
• All renovations to the Solcocon heaps, crushing complex and factory are complete. Full mining and processing operations were restarted in June.
• Tardan’s exploration drilling is almost complete with a new resource estimation expected by the end of 2013
• Seasonal production from the Zolotaya Borzya alluvial operations has started ahead of schedule and is currently exceeding set targets.

Denis Alexandrov, CEO of Auriant Mining AB, commenting on the results said, “The production results for the first six month of operations in 2013  were as expected. Tardan did a good job in preparing for the summer season and both mining and stacking is currently exceeding previously set targets. New mining equipment is on the way to start stripping for future periods in the second half of 2013.  

Renovations at Solcocon are complete, with the first kilograms of gold produced from the  new heap at the end of June. Gold from alluvial operations is already half of that produced throughout the whole of 2012. The Group is at full speed to meet the production targets for the year of 1,000 – 1,200 kg.

The recent drop in the gold price continues to have a negative effect on our Profit and Loss statement. Being at the ramp up stage, our fixed cost per once of production is still significant, but will reduce as we reach full capacity. Therefore, scale will be our major cost reducer this year and next. As such, we continue to focus most of our efforts on bringing existing production facilities to full capacity and completing the ramp up stage, as planned, by 2015. In addition, we have started several cost cutting initiatives at all our mines and our head office. These initiatives were carefully considered in order to maintain set production targets, nevertheless all non core activities will be reduced to a bare minimum. 2013 will be the year when we lay down the foundations for profitable operations in future. ”

Production

Production for the first 6 months of 2013 amounted to 249.5 kg (8,021 oz) and represents a significant increase of 220% if compared to the first 6 months of 2012. The majority of the increase comes from the Tardan heap leaching plant. Another contributing factor is the early start this year of alluvial gold production. The Solcocon operations were resumed in late June after a planned stoppage to complete renovations. Please refer to the section on Solcocon for more details.

Tardan

As in the first quarter, all production at Tardan came from heap leaching operations. Overall, production was 170.7 kg (5,487 oz) an increase of  c. 288% if compared to 6 month production in 2012. There wasnt any production at the gravitational circuit, as Tardan continues to accumulate sufficient amounts of high grade ore.

This year, Tardan started stripping operations at ore body Number One which the Company expects will be the source of ore for a minimum of two years of production. This, and limited mining activities in 2012, drove the increase of waste removal (724k tonnes vs. 185k tons) and ore mining (92.4k tonnes vs 55.5k tonnes). As a result, some waste removal will be carried out this year to secure 2014 production. To cope with increased mining volumes, Tardan purchased 5 additional heavy trucks, a heavy front loader and a bulldozer that are scheduled to arrive in July-August. Moreover, blasting, waste / ore removal contractors continue to operate at the site to speed up ore preparation.

Crushing remained at the levels of 2012 or c. 82k tonnes, whilst stacking of ore and tailings rose to c. 130k tonnes, an increase of 43%.

Contractors continued exploration drilling both on the flanks of the Tardan deposit and within the Greater Tardan area. The Company plans to continue with drilling through the summer, with results available by the end of 2013.

Solcocon

As communicated earlier, Solcocon underwent a major renovation to its production facilities: heap leach pads were rebuilt from scratch, with new heaps currently being stacked; the crushing facilities were upgraded and the leaching plant renovated.  All of the upgrades have been completed, and, as planned, production restarted in June.

Total production for 6 months dropped by c. 78% to 7.4 kg (237.4 oz). This was a planned decrease in order to complete renovations and upgrades to boost capacity. On the other hand, alluvial operations resumed in April with 71.4 kg (2,296 oz) of alluvial gold produced.

The Group confirms the production targets for Solcocon at 300 – 350 kg (9,600 – 12,800 oz) for the year.

The lower stripping ratio at the current ore bodies resulted in a decrease of ore removal volumes (228k tonnes vs. 475.9k tonnes) and an increase of mined ore (104k tonnes vs. 54.1 k tonnes). Crushed and stacked ore also increased by 232% to 45.5k tonnes, with 99k tonnes of ore remaining in the ore warehouse that will be stacked in July - August.

For more information, please contact:

Max Yacoub, CIO

tel: +7 495 660 22 20

e-mail: max.yacoub@auriant.com

Company name: Auriant Mining AB

Short name: AUR

ISIN-code: SE0001337213

Website: www.auriant.com Twitter: @auriantmining

Postal and visiting address: Engelbrektsplan 2, 4tr

 SE-114 34 Stockholm

Auriant Mining AB (AUR) is a Swedish junior mining company focused on gold exploration and production in Russia, primarily in Zabaikalye and the Republics of Khakassia and Tyva. The company has currently four assets, including two operating mines (Tardan and Solcocon) and two early stage exploration assets, one of which, Kara-Beldyr, is a joint venture with the major Canadian gold producer Centerra Gold. The group’s mineral licenses are estimated to contain almost 1,000,000 troy ounces of gold reserves according to the Russian standards (GKZ).

Since July 19, 2010, Auriant Mining´s shares are traded on First North Premier at the NASDAQ OMX Nordic Exchange under the short name AUR (before June 25, 2012 - under the short name CAG). For more information please visit www.auriant.com. Mangold Fondkommission is Certified Adviser to Auriant, for more information please call +46 8 503 015 50 or visit www.mangold.se.

Cautionary Statement: Statements and assumptions made in this report with respect to Auriant Mining AB’s (“AUR”) current plans, estimates, strategies and beliefs, and other statements that are not historical facts, are forward-looking statements about the future performance of AUR. Forward-looking statements include, but are not limited to, those using words such as "may", "might", "seeks", "expects", "anticipates", "estimates", "believes", "projects", "plans", strategy", "forecast" and similar expressions. These statements reflect management's expectations and assumptions in light of currently available information. They are subject to a number of risks and uncertainties, including, but not limited to, (i) changes in the economic, regulatory and political environments in the countries where AUR operates; (ii) changes relating to the geological information available in respect of the various projects undertaken; (iii) AUR’s continued ability to secure enough financing to carry on its operations as a going concern; (iv) the success of its potential joint ventures and alliances, if any; (v) exchange rates, particularly between the Russian rouble and the U.S. dollar. In the light of the many risks and uncertainties surrounding any gold production and exploration company at an early stage of its development, the actual results could differ materially from those presented and forecast in this report. AUR assumes no unconditional obligation to immediately update any such statements and/or forecasts

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