Akobo Minerals

Regulatory Filings • May 23, 2022

Akobo Minerals announces first cash flow estimate for its Segele gold mine in Ethiopia

Akobo Minerals announces first cash flow estimate for its Segele gold mine in Ethiopia

Investors invited to corporate update at lunch presentation on 25 May 2022

OSLO, 23 May 2022: Akobo Minerals AB (publ) (EURONEXT: AKOBO), the Scandinavian

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

the first ever cash flow estimate for its Segele mine, which is expected to

commence production at the beginning of 2023.

The company will be hosting a lunch presentation at SpareBank 1 Market's office

in Oslo on Wednesday 25 May 2022, at 11.00 am CET to present the estimated

numbers. To register, please contact: corporateaccess@sb1markets.no.

This first cash flow estimate announcement follows the signing of a deal with

Solo Resources as a partner to develop the Segele processing plant; an updated

Mineral Resource estimate from SRK Australasia; and good visibility on other

cost elements for its operations. As was expected, the economics are very

positive, with high and bonanza grade intersects, as well as ore body close to

surface and still open at depth.

The updated Mineral Resource estimate means a considerable step towards mining

at Segele. A critical aspect of this was the upgrade to Indicated Resources

which has allowed the company to move forward with a resilient mining schedule.

This schedule has given the company the knowledge needed to create a reliable

prediction of when and how the mineralization can be extracted and processed.

The cash flow estimate is as follows:

CASH FLOW Unit 2022 2023 2024 Sum

EBITDA USD' -   62,105,180 22,953,665 85,058,845

Income tax USD'                 14,853,972    5,066,094 19,920,066

-

Investments USD'   7,413,248       1,630,541 10,757,161

1,713,372

Free carry USD' -         1,063,880    4,183,214

3,119,334

Free cash USD' -7,413,248 42,418,501 15,193,151 50,198,404

flow

The model, based upon Akobo Minerals' current Mineral Resource estimate, shows a

highly profitable mine operation with an estimated free cash flow of USD 50

million up until the end of 2024.

Jørgen Evjen, CEO of Akobo Minerals, stated: "This is the first time we have

released cash flow numbers for our Segele mine operation, - adding up to 50

million dollars by the end of 2024. With more targets being explored and the

fact that the ore body is open at depth, we are confident that mining operations

will continue for many years beyond 2024."

The cash flow model is based upon the following assumptions:

· Average gold price of 1,800 USD per ounce for the period 2023-2024

· Royalty fee to the Ethiopian Government of 5% of revenues

· Community fund payment of 2% of net profits

· Free carry to federal and regional governments of 7 % of net profits

· Income tax of 25%

Other relevant assumptions are from the scoping study, namely:

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

-+

|Metric |Figure |Notes

|

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

-+

|Inferred and |94ktonnes@ |Improved from Scoping Study.  SRK MRE

|

|Indicated Mineral |22.7g/t |22ndApril 2022.

|

|Resource | |

|

| |68,811oz |

|

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

-+

|CAPEX |USD 8.042m |50% fixed cost due to processing plant

|

| | |contract. Remaining factored Scoping Study

|

| | |estimate.

|

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

-+

|Total LOM OPEX |USD 87 / tonne |

|

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

-+

|Total LOM OPEX |USD 137 / ounce|Without royalties

|

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

-+

|Total LOM OPEX |USD 243 / ounce|7%royalties at 20g/t and 1,500 USD/oz

|

| | |

|

|All in Sustaining | |

|

|Costs (AISC) | |

|

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

-+

|LOM Plant Head |20g/t |Factored from dilution.

|

|Grade | |

|

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

-+

|Underground |Ongoing |Stoping commences in May 2023

|

|Development Time |throughout life|

|

| |of mine |

|

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

-+

|Production Rate |6,500 tonnes |At peak production

|

| |per month |

|

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

-+

|Metallurgical |97.2% |Improved from Scoping Study on

metallurgical|

|Recovery | |test work

|

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

-+

|Extraction Rate |81% |Assumption

|

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

-+

|Dilution |5% |Assumption

|

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

-+

|Ore Loss |8% |Assumption

|

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

-+

|Plant Throughput |10-20tph |

|

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

-+

|Negotiated royalty|5% |7% in the Segele scoping study

|

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

-+

The underground mine design has changed slightly from the scoping study to allow

for the development of two steeply angled winzes in addition to the planned

incline shaft. These winzes will allow for fast access to the mineralization.

After considerable investigation, Akobo Minerals considers that the key cost

assessments released from the Scoping Study of September 2021 are still valid.

Since the scoping study was released, the company has made advances in several

key areas. The signing of the fixed price processing plant contract has provided

certainty to half of the upfront capital cost. Negotiations with a mining

contractor have also brought greater certainty to the cost of establishing the

underground operation, thereby further improving confidence in the anticipated

up-front capital costs.

The financial information for year 2022 and onwards is only an illustrative

example on potential future development, based on a flat gold price of USD

1,800/ounce and USD/NOK of 9. Any deviations in actual development of these

assumptions may have potentially material impact on the actual financial

performance of the company.

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 (https://akobominerals.sharepoint.com/site

s/AkoboMinerals121/Delte%20dokumenter/01.%20Corporate/03.%20Investor%20relations/

01.%20Press%20releases/www.linkedin.com/company/akobominerals)

Web: https://akobominerals.com/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 12 years of on-the-ground activity.

Akobo Minerals holds a 16 km2 mining licence and is working to start up mining

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

Resource yielding a world-class gold grade of 22.7 gr/ton, combined with an

estimated all-in sustaining cost (AISC) of 243 USD 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 it places environment, social and environment

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

-leading community 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, while adhering to a lean

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

Euronext Growth Oslo Exchange under the ticker symbol AKOBO.

Important information

This release is not for publication or distribution, directly or indirectly, in

or into Australia, Canada, Japan, the United States or any other jurisdictions

where it would be illegal. It is issued for information purposes only and does

not constitute or form part of any offer or solicitation to purchase or

subscribe for securities, in the United States or in any other jurisdiction. The

securities referred to herein have not been, and will not be, registered under

the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), and may

not be offered or sold in the United States absent registration or pursuant to

an exemption from registration under the U.S. Securities Act. Akobo Minerals

does not intend to register any portion of the offering of the securities in the

United States or to conduct a public offering of the securities in the United

States. Copies of this publication are not being, and may not be, distributed or

sent into Australia, Canada, Japan or the United States.