Akobo Minerals

Business and Financial Review • Mar 25, 2024

Akobo Minerals AB releases updated and improved production mine plan for first 12 months

Akobo Minerals AB releases updated and improved production mine plan for first 12 months

Oslo, 25.03.2024 - Akobo Minerals

AB (https://www.otcmarkets.com/stock/AKOBF/quote?utm_source=Press+Release&utm_med

ium=Press+Release&utm_campaign=New+OTCQX+Company) (Euronext and Frankfurt:

AKOBO) (OTCQX:AKOBF).

The Scandinavian-based Ethiopian gold exploration and mining company has today

released an improved gold production mine plan for its first 12 months of mining

operations in the Eastern and Western winzes (tunnels). The updated plan

improves the current production schedule and will have a significant effect on

the initial revenue and EBITDA from the Segele mine. Most of the improvements

will come in the first part of production.

Table 1: Comparison to previously released revenue and EBITDA estimates

+-------------------+---------------+-----------------+----------+

| |Updated version|Previous version*|Difference|

+-------------------+---------------+-----------------+----------+

|12 months revenue**|39,0 mUSD |29,4 mUSD |9,6 mUSD |

+-------------------+---------------+-----------------+----------+

|12 months EBITDA |28,8 mUSD |20,0 mUSD |8,8 mUSD |

+-------------------+---------------+-----------------+----------+

* Source: 27 Feb 2024. Press release: Agreement on debt restructuring, Private

Placement successfully completed, announcement of rights issue and proposed

conversion of unsecured debt

** Gold price estimate of 1950 USD per ounce

Following from the advanced operational understanding developed over the last

few months of owner operator mining and hiring of a Mine Planner, the company

has revised its mine plan and estimations for the first 12 months of gold

production. Due to the specific nature of the Segele ore body, the mining will

focus on developing stopes (pockets) targeting the high-grade gold areas of the

ore body first. The very first Stope 00 developed will be a trial stope in an

area that is not explored, before moving into the identified gold rich ore body.

The trial stope will give valuable information and experience regarding geology,

stope practice and feed to commission the plant. The next Stope 01 is then

expected to be one of the best stopes in the life of the mine.

The mine plan primarily focuses of the upper part of the resource and the first

12 months of production. Future optimisation will extend this plan and recover

more gold. The optimised part of the mine plan indicates a recovery of 77 % with

potential upside. The following assumptions have been used:

· 50 % of crosscuts counted as ore with a grade of 22.7 g/t

· No ore recovery from winzes and incline shaft (Upside)

· No pillar drawing/pillar robbing at the end of LOM (upside)

· No use of backfill to recover barrier pillars (upside)

Table 2: Details of initial stope-groups to be mined, representing next 12

months of production. Showing gold endowment from Segele SRK Mineral Resource

Estimate*

+---------------+----------+-------+---------+----------------------------------

-+

|Stope group no.|Avg. grade|Tonnage|Ounces |Classification**

|

+---------------+----------+-------+---------+----------------------------------

-+

|1 (group) |74.61 g/t |4,272 t|10,248 oz|Indicated mineral resource

estimate|

+---------------+----------+-------+---------+----------------------------------

-+

|2 (group) |43.78 g/t |6,167 t|8,680 oz |Indicated mineral resource

estimate|

+---------------+----------+-------+---------+----------------------------------

-+

|3 (group) |15.99 g/t |5,203 t|2,676 oz |Indicated mineral resource

estimate|

+---------------+----------+-------+---------+----------------------------------

-+

* Mineral Resource Estimate of 94ktons at an average grade of 22.7g/t and

totally 69k ounces. The Mineral Resources are reported above a 2.65g/t Au cut

off (22 April 2022)

** Source: 22nd April 2022. Press release: Akobo Minerals reports significant

gold mineral resource increase and classification upgrade which underpins strong

mine economics.

The updated mine plan uses the SRK Mineral resource model as it's basis. The

production schedule is adjusted according to the actual mine development plan.

Early production plan for Western and Eastern Winzes (Stope group 1 and 2 from

Table 2). High grades areas indicated.[image]

In conclusion, while we acknowledge the ongoing challenges in our operational

environment that have created significant delays, including procurement and

logistics issues, we want to assure our stakeholders that we are fully committed

to addressing these obstacles. Though uncertainties still persist and may impact

our future progress, we remain focused on diligently working through these

challenges day by day, with the aim of achieving our production goals.

For further information, contact:

Jørgen Evjen, CEO, Akobo Minerals

Mob: (+47) 92 80 40 14

Mail: jorgen@akobominerals.com

LinkedIn: www.linkedin.com/company/akobominerals

Web: www.akobominerals.com

About Akobo Minerals

Akobo Minerals is a Scandinavian-based gold exploration and boutique mining

company, currently holding an exploration license covering 182 km2 and a mining

license covering 16 km2 in the Gambela region and Dima Woreda, Ethiopia. The

company has established itself as the leading gold exploration company in

Ethiopia through more than 13 years of on-the-ground activity, which has now

been enhanced further with the development of its Segele mine.

Akobo Minerals' Segele mine has an Inferred and Indicated Mineral Resource of

68,000 ounces, yielding a world-class gold grade of 22.7 g/ton. Still open to

depth, the gold mineralised zone continues to expand and will have a positive

impact on future resource estimates and the life expectancy of the mine. The

exploration license holds numerous promising exploration resource-building

prospects in both the vicinity of Segele and in the wider license area.

Akobo Minerals has an excellent relationship with local communities all the way

up to national authorities and the company places environment and social

governance (ESG) at the heart of its activities - as demonstrated by a planned,

industry-leading, extended shared value program.

Akobo Minerals has built a strong local foothold based on the principles of

sound ethics, transparency and communication, and is ready to take on new

opportunities and ventures as they arise. The company is uniquely positioned to

become a major player in the future development of the very promising Ethiopian

mining industry. The company is headquartered in Oslo and is publicly listed on

the Euronext Growth Oslo Exchange and the Frankfurt Stock Exchange under the

ticker symbol AKOBO. For US investors, Akobo Minerals AB (OTCQX: AKOBF) is

traded on the OTCQX Best Market, adhering to high financial standards, best

practice corporate governance, and compliance with U.S. securities laws.

Additionally, the company has a professional third-party sponsor introduction,

and investors can access current financial disclosures and Real-Time Level 2

quotes for the company on

www.otcmarkets.com (https://eur03.safelinks.protection.outlook.com/?url=http%3A%2

F%2Fwww.otcmarkets.com%2F&data=05%7C02%7Cmartine.vik%40schjodt.com%7C4d5e091c202b

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092%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiL

CJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=usf8PyEpjE6IyHg5KA1jol5VwiR%2Fw%2FXI9c1Z5JZ4AiM%

3D&reserved=0).

Akobo Minerals places great emphasis on meeting and exceeding industry

standards, fully complying with all aspects of the JORC code, 2012. For detailed

information on their adherence to this code, please refer to

https://www.jorc.org/. Akobo Minerals' unwavering commitment to ethical

practices, community engagement, and environmental responsibility positions them

as a formidable force in the evolving landscape of the Ethiopian mining sector.