Mr. Evan Spencer reports

ASIAN MINERAL RESOURCES - THE RELEASE OF 2015 FINANCIAL STATEMENTS AND MD&A

Asian Mineral Resources Ltd. has provided a financial and operational update for the full year ended Dec. 31, 2015.

Operational highlights:

• Production increased:
  • Eighteen per cent above target milled production of 447,746 tonnes (379,600 tonnes full-year 2015 target);
  • A total of 8,607 tonnes of nickel contained metal in concentrate (full-year 2014: 6,854 tonnes);
  • A total of 4,011 tonnes of copper contained metal in concentrate (full-year 2014: 3,439 tonnes);
  • Above target nickel mill recoveries of 87.4 per cent (full-year 2014: 85.2 per cent);
• Continued safety performance exceeding annual targeted 25-per-cent improvement in lost-time injury frequency rates;
• No reportable environmental incidents;
• All mined capital development completed ahead of schedule in 2015;
• Tailings dam construction completed for full current life of mine;
• Kingsnake geological mapping and trenching identify 1.2-kilometre mineralized zone at surface with surface electromagnetic identifying the presence of EM conductors at depth.

Financial highlights:

• Revenue of $74.8-million (full-year 2014: $87.8-million) and an average realized nickel price for the year of $6.24 per pound (full-year 2014: $8.81 per pound).

                  C1 UNIT OPERATING CASH COSTS RESULTS
                            (in U.S. dollars)
                                                          2015          2014

Prenet of copper and cobalt byproduct credits         $3.58/lb      $3.98/lb
After net of copper and cobalt byproduct credits      $2.69/lb      $2.67/lb
After royalty/export tax/environment protection fee   $4.30/lb      $4.88/lb

Further financial highlights:

• Strong operational cash flow of $25.3-million (restated full-year 2014: $18.0-million), allowing for:
  • $7.6-million of capital investment (restated full-year 2014: $14.8-million);
  • $18.6-million of debt repayments (restated full-year 2014: $3.4-million);
  • ($900,000) due to cash movement and foreign exchange fluctuations (restated full-year 2014: ($200,000);
• Gross loss of $35.7-million for full-year 2015 (restated full-year 2014: gross profit $12.2-million) due to:
  • Average realized nickel price dropped significantly to $4.88 (U.S.) per pound in 2015 from $7.75 (U.S.) per pound in 2014;
  • Impairment loss of BPNM's PPE of $26.6-million was recognized in 2015;
• Net loss of $47.2-million (restated full-year 2014: net income $3.1-million);
• Received $6.4-million (U.S.) in June and July for value-added-tax refund for period from November, 2013, to June, 2015;
• Full repayment of the outstanding term loan facility of $16-million (U.S.) and full repayment of working capital facility of $2.7-million (U.S.), both facilities with LienViet Post Bank of Vietnam; the board and management of Asian Mineral are proud that these repayments were achieved in a falling nickel price environment;
• Total cash and cash equivalents of $5.7-million and total current assets of $18.6-million as at Dec. 31, 2015.

             SUMMARY ANNUAL FINANCIAL INFORMATION

                                       2015     Restated 2014

Net sales revenue (1)           $74,753,199       $87,818,927
Gross profit/(loss)            ($25,701,111)      $12,231,447
Operating cash flow             $25,304,045       $17,960,760
Net income/(loss)              ($47,207,779)       $3,105,019

(1) Net of $18,192,097 export tariff (full-year 2014: 
$21,510,685)

During the preparation of the current-year financial statements, the company determined that the foreign currency translation of the company's subsidiary that holds the Ban Phuc nickel mine had been incorrectly calculated for the year ended Dec. 31, 2014. The correction of this error in depreciation and amortization expenses is detailed in Note 2 of the 2015 financial statements.

Commenting on the year-end performance, chief executive officer, Evan Spencer, said: "We are extremely pleased with AMR's performance given the extremely low commodity pricing environment throughout 2015. Operational performance continued to achieve increased productivities, enabling AMR to exceeded target production and sales volumes. Despite the sustained drop in nickel price throughout 2015, increased production levels, combined with our strong focus on efficiencies and cost reductions strategies, enabled us to maintain cash flow going forward. At the same time, AMR remains committed to pursuing growth opportunities, on our near-mine exploration and regional exploration targets with a priority focus on Kingsnake, where exploration activities remain ongoing."

The company's audited consolidated financial statements and related notes have been prepared in accordance with international financial reporting standards and the annual information form. Both the financial statements and management's discussion and analysis are available on SEDAR.

We seek Safe Harbor.