Akobo Minerals

M&A Activity • May 9, 2022

Akobo Minerals reaches fundamental milestone on the way to gold production

Akobo Minerals reaches fundamental milestone on the way to gold production

Akobo Minerals (Euronext Oslo - "AKOBO"), the Scandinavian-based Ethiopian gold

exploration and boutique mining company, today announced that it has reached an

agreement with the South African company Solo Resources (Pty) Ltd for delivery

of a processing plant for production of gold at the Segele Mine.

· Commissioning expected to start by end of first quarter 2023

· The plant will be tailored to process the highly gold rich Segele Mine ore

with an Inferred and Indicated Mineral Resource Estimate of 69 kOz gold @22.7

grams per tonne

· The plant is designed to process 10 tons of mass per hour, with the

possibility of upgrading to 20 tons of mass per hour

· Current dimensions will be able to process 4,000 ounces of gold per month

· With an all-in production cost of USD 243 per ounce this small boutique

mining operation will be able to generate significant cash flow

Akobo Minerals has been engaged in targeted exploration for gold in Ethiopia for

more than 10 years. After solid discoveries in Segele, the company has

previously announced that it will produce the gold from this area on its own.

Now the company confirms that mining will start and that it has signed an

agreement with Solo Resources, which is one of the most experienced suppliers of

processing plants in Africa. The company has more than 30 years of experience

and has completed a total of 31 projects, of which 11 small and medium-sized

gold processing plants in Africa.

Jørgen Evjen, CEO of Akobo Minerals, stated: "We have consistently delivered on

all the important milestones of recent years, but this is the most important so

far. With this agreement, I am confident that we will be produce gold from the

Segele mine for many years to come, and that with a solid cash flow. "

Jørgen Evjen further states: "The cooperation with Solo Resources has been

excellent, and I look forward to starting the work with Craig and his team. They

have the experience and capacity needed, and we share much of the same corporate

philosophy. I am confident this will be a success for both parties"

Craig Naude, CEO of Solo Resource Pty, stated: "We are pleased to have been

recognized and appointed as the partners for Akobo Minerals. The relationship

with Akobo Minerals to date has been professional and cooperative, and we are

confident the management of Akobo will deliver for their shareholders. We look

forward to a mutually beneficial project."

Despite increased uncertainty in the global trade and supply chains, deliveries

and commissioning will not be significantly delayed. Start-up is expected by the

end of the first quarter of 2023, with efforts being made to get gold production

started as early as possible.

The agreement concluded is a fixed-price contract that will provide good

protection against continued uncertainty in the world economy. Entering into a

fixed-price contract has in itself led to some cost increase in relation to the

Scoping study. In addition, there are also other moderate cost increases due to

higher prices for steel, fuel and other raw materials. Nevertheless, the company

does not expect that the total investments associated with the start-up of the

mining activities will be significantly higher than estimated in the Scoping

study.

Other terms of the agreement are as follows

· Solo Resources will design the processing plant as well as order and ship

all necessary parts to Ethiopia

· Akobo Minerals will be responsible for transport to Segele and the

construction of local infrastructure

· Solo Resources personnel will be present at site to supervise installation

and commissioning alongside Akobo Minerals consultants and processing plant

staff

· Payments will be made in South African Rand

· Payment will be done in instalments over the period of design and

procurement in line with the progress achieved

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: https://akobominerals.com

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About Solo Resources

Solo Resources (Pty) Ltd is a wholly owned South African company that acts as an

agent for selected international companies as well as designs and supplies

affordable turnkey type plants. Based in Johannesburg, Solo boasts of over 30

years of experience in the sales, design, installation, and commissioning of

metallurgical processing equipment into a variety of applications. Solo's core

competencies include project management, project engineering, process

engineering, mechanical engineering, and a fully equipped drawing office. Solo

has experience in many commodities and has been instrumental in a total of 31

plants.

About Akobo Minerals

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

company, currently with ongoing exploration and 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 mining licence and is working to start up mining of its

very promising Segele target. It has an Inferred Mineral Resource yielding a

world-class gold grade of 22.7 grams per tonne, 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 the vicinity of Segele, in

addition to the lower grade high volume area of Joru. These areas will continue

to be explored.

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 ground

-breaking community program.

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

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

opportunities and ventures as they arise. Akobo Minerals 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.

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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.