Anglo Asian gives its corporate responsibilities a very high priority and is mindful that it is operating in the extractive industries in a developing country. There are three keys pillars to the Company’s corporate responsibility activities, Corporate Governance; Health, safety and environment and social responsibility

Corporate Governance – The Company is listed on the AIM market of the London Stock Exchange (“AIM”). It is required by the rules of AIM to follow a recognised code of corporate governance and report its compliance with that code. The Company has adopted the Quoted Companies Alliance Corporate Governance Code which it believes is the most appropriate code.

Health, safety and environment (“HSE”) – The health and safety of our employees and the protection of the environment in and around our mining properties are a prime concern for the Company’s board and senior management team. An overall strategy for HSE is overseen by a HSE committee chaired by a board director and there is a fully qualified HSE department at Gedabek.

Social responsibility – The Company is fully committed to developing a truly sustainable mining operation in Azerbaijan. The Company also contributes to the economic and social development of the local communities.

Introduction

The AIM Rules require the Company to maintain on its website details of a recognised corporate governance code, how the Company complies with that code and an explanation of any deviations from that code. In ensuring good corporate governance, the Company has adopted the Quoted Companies Alliance Corporate Governance Code (the “Code”).

Significant areas of the Code and how the Company complies with each of those areas is as follows:

The board of directors

The board of directors (“the Board”) currently comprises one executive director and three non-executive directors, one of whom is the chairman. The roles of chairman and chief executive are split in line with the Code.

The Board meets regularly throughout the year and receives a board pack comprising individual reports from the executive director together with any other material deemed necessary for the Board to discharge its duties. The Board also conducts video conferencing board meetings as issues arise which require Board attention. It is the Board’s responsibility to formulate, review and approve the Group’s strategy, budgets and major items of expenditure. The Board sets the Group’s objectives and policies and monitors the implementation by the executive team.

Health, Safety, Environment and Technology Committee

The Board has a health, safety, environment and technology committee which comprises John Monhemius and Reza Vaziri and meets as required. The committee’s primary function is to assist the Board in fulfilling its oversight responsibilities in the following areas:

health, safety, environmental and technological issues relating to the Company; the Company’s compliance with corporate policies that provide processes, procedures and standards to follow in accomplishing the Company’s goals and objectives relating to health, safety and environmental issues, to ensure that the Company’s operations and work practices comply as far as is practicable with the best international standards; and the management of risk related to health, safety, environmental and technological issues.