Akobo Minerals

Earnings Release • Sep 7, 2023

Akobo Minerals announces results for the second quarter of 2023

Akobo Minerals announces results for the second quarter of 2023

OSLO, 07 September 2023:Akobo Minerals AB (publ) (ticker: AKOBO), the

Scandinavian-based Ethiopian gold exploration and boutique mining company, today

reported its second quarter 2023 results. As the company is still in the project

development phase prior to production start-up, there was no income during the

second quarter of the year. The net loss for the quarter was SEK 31.1 million

with a cash position of SEK 25.1 million.

IMPORTANT EVENTS

Second quarter of 2023

· Construction of the main processing plant began

· The small pilot plant was made fully operational

· First gold was produced from the Gingibil quartz vein system by way of bulk

sampling

· The largest Segele mine underground accessway - the incline shaft - advanced

to 37 metres in length

· The two smaller entries into the upper section of the Segele ore body - the

eastern and western winzes - both extending down to 26 metres in length

· Challenging weather conditions - with historically heavy rain and flooding

in the region

· Internal restructuring began in order to set the company up for the

production phase

· Helge Rushfeldt was appointed as Head of Mining Operations

After the quarter closed

· A refinery agreement was signed with the world-renowned gold refiner, MKS

PAMP

· Results from the Gingibil bulk sampling suggest ore grades are present at

surface

· The Segele incline shaft has advanced to 55 metres in length

· The eastern and western winzes now extend to 28 metres and 41 metres,

respectively

· The community 'ecohub' facility began construction from local waste plastic

bottles

· Dr. Steven Rupprecht was appointed as Mine Manager and Strategic Adviser

· Process initiated to take over all mining operations from IW Mining

· Application filed to begin trading of the AKOBO share on the US OTCQX market

· A convertible loan of NOK 34.4 million was secured

Q2 FINANCIAL PERFORMANCE OVERVIEW

· The result for the period: SEK -31.1 million

· The result for the year-to-date: SEK -68.9 million

· Cash flow for the period: SEK -23.5 million

· Cash at the end of the period: SEK 25.1 million

· Total equity at the end of the period: SEK -35.9 million

· Total external long-term debt at the end of the period: SEK 143.9 million

· Convertible loan of SEK 53 million will be converted to equity beginning of

July 2023

KEY COMPANY HIGHLIGHTS

· A 'de-risked' project

· Significant cash flow to be generated

· Excitement around latest exploration activity following promising initial

findings

· Ambition of developing world class deposits of 1.5 to 2 M oz

· Segele is the first new gold mine in Ethiopia since Legadembi in 1994

· Company has a first mover advantage, with expansion opportunities identified

Akobo Minerals will host a webcast, in English, for all shareholders and

interested parties today at 10:00 CEST. There will be a Q&A session following

the management presentation.

The webcast will be available at: Akobo Minerals Webcast Q2

2023 (https://channel.royalcast.com/landingpage/hegnarmedia/20230907_1/)

For more 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 with an

ongoing mine development 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.

Akobo Minerals holds a 16 km 2 mining license and is working to start up mining

of its very promising Segele target. It has an Inferred and Indicated Mineral

Resource of 68,000 ounces yielding a world-class gold grade of 22.7 g/ton,

combined with an estimated all-in sustaining cost (AISC) of USD 243 per ounce.

Still open to depth, the gold mineralised zone continues to expand and will have

a positive impact on future resource estimates and mine-life. 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 we place environment and social governance (ESG)

at the heart of our activities - as demonstrated by a planned industry-leading

extending shared value program.

Akobo Minerals has built a strong local foothold based upon 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.

Akobo Minerals has a clear strategy aimed at building a portfolio of gold

resources through high-impact exploration and mining, whilst adhering to a lean

business operation. The company is headquartered in Oslo and is listed on the

Euronext Growth Oslo Exchange and Frankfurt Stock Exchange under the ticker

symbol, AKOBO.

Akobo Minerals fully meets and complies with all parts of the JORC code, 2012.

For further information, see https://www.jorc.org/