Akobo Minerals

Regulatory Filings • Feb 7, 2022

First gold mover advantage in Ethiopia

First gold mover advantage in Ethiopia

"Our maiden resource estimate done by SRK Consulting indicates 52 000 oz at 20.9

g/t on average, which is fairly astonishing."

Mining Review Africa has captured our story and potential in their 1. issue of

2022. Read the original article here. (https://www.miningreview.com/gold/akobo

-minerals-first-gold-mover-advantage-in-ethiopia/)

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It was a chance meeting between Euronext/Oslo-listed Akobo Minerals' CEO JØRGEN

EVJEN and an Ethiopian businessman in Norway in 2009 that set in motion

exploration activities in the East African country.

Jump forward to today and the company is confident of pouring first gold from

its flagship project Segele in Q4, 2022. GERARD PETER reports.

Evjen explains that Akobo is currently the only gold company listed on the

Euronext exchange in Oslo. This is due to the fact that previously listed mining

companies such as Crew Minerals, Northland Resources, Wega Mining and Avocet

Mining, have had limited or no success with their efforts.

"Previously, the results were catastrophic when companies tried to move from

exploration into mining. As such, there is a mindset that we won't be

successful. However, we are determined to do things differently by being

transparent, ensuring we adhere to regulations and communicating effectively

with our shareholders."

The company is a rather small operation with three managers - Evjen, COO Matt

Jackson and Chief Exploration Manager Johan Sjöberg- first 2 located in Norway

last one in Sweden.

"All our activities on the ground however are undertaken by Ethiopians, which

currently number around 40 staff," Evjen adds.

The company is primarily funded by family and friends with the majority living

in Trondheim, a small town in the middle part of Norway.

Akobo is focusing on two projects - Segele and Joru - along the Akobo River in

south-western Ethiopia, a prolific area with extensive alluvial gold production.

Though both are considered exciting prospects for gold, each is different.

Segele is quite small, with a high concentration of gold, while Joru covers a

larger area, with a lower gold content.

After Segele and Joru, there are many exciting prospects which so far have not

been investigated due to limited capacity.

Evjen explains that up until October 2021, the company was focussed purely on

exploration with no intention of become a gold producer. However, this has

subsequently changed following promising results from Segele, which the company

is now fast tracking to production stage.

Since 2009, the company has been exploring Segele on a sporadic basis, funding

permitted. Then in 2020, Akobo decided to do a final diamond drill programme

based on new information it had acquired. The results proved that Segele is

particularly gold-rich, with several bonanza grade sections.

"Our maiden resource estimate done by SRK Consulting indicates 52 000 oz at 20.9

g/t on average, which is fairly astonishing.

"When you combine those numbers with a scoping study that shows we can establish

a small-scale mining operation with US$8 million worth of capital investments

and all in sustaining costs of $243/oz, then the return on investment for our

shareholders suddenly became quite significant," explains Evjen.

In October 2021, Akobo Minerals received a large-scale gold mining license for

Segele taking the company one step further in what is expected to be an

underground mine from near surface to 200 m+, 27 month life of mine operation

with the ore being accessed via an incline shaft. The company aims to produce 3

500 ounces of gold per month at peak production, with plans to double production

rate once new reserves are discovered.

The mine plant will be a turnkey solution comprising a grinder, concentrator and

cyanide leach containers. Akobo will manage the processing plant but will

appoint a mining contractor to do the mining. "We have already received quotes

from a few companies and I am confident that we will start producing gold by the

end of this year," adds Evjen.

Ethiopia brimming with potential

Historically, Ethiopia is a legendary gold mining country, with its mines

providing gold to the ancient Egyptian empire and possibly even King Solomon's

Mines and the Queen of Sheba. In fact, the Asosa zone of Ethiopia could contain

the oldest known gold mine in the world at 6 000 years of age.

However, in recent decades, not much exploration has taken place in the country.

So, why did Akobo decide to pursue activities in Ethiopia as opposed to in more

established gold mining destinations, most notably in West Africa?

Evjen explains that it was a chance meeting with an Ethiopian businessman that

got him interested in the country. "At the time, I was working as a corporate

financer and an Ethiopian living in Norway told me about his connections who had

a very interesting licence area but they lacked funding. We had a geologist look

at the area and realised that this could be a very promising undertaking."

The region that Akobo is exploring is vastly under-explored. In fact, it is the

first company to do modern exploration in the south-western part of Ethiopia.

Another reason the country is attractive to Akobo is the government's commitment

to attract foreign investment in the country, especially since the appointment

of Abiy Ahmed as prime minister in 2018.

"It is a stable country and the government is keen on modernising its

infrastructure and is looking at ways to incentivise foreign investment. We also

have a great relationship with the Ministry of Mines (MoM) and it has made a

real effort to promote the industry and to make things easier for us to

operate," states Evjen.

Furthermore, Akobo is also paving the way for other mining companies to operate

in Ethiopia. In September last year, it entered into an agreement with the MoM

which gives it the right to hold foreign currency in offshore accounts, and to

repatriate profits from the same accounts. This has been the most difficult

hurdle in attracting international investors to Ethiopia's mining sector.

Mining the responsible way

However, it is not just about operating a profitable mine in the country. Akobo

is keen to do so in a transparent and ethical way, one which benefits the

company, communities and the country. To that end, it employed leading ESG

expert, Dr CATHRYN MACCALLUM of Sazani Associates to draw up its ESG policy.

"We looked at things differently. For example, instead of building roads or

schools, we want to empower communities to do these things on their own. We have

also drawn up a Sustainable National Resource Management Plan where we develop

sustainable livelihoods for communities to replant trees, clean up rivers and

promote agricultural activities," adds Evjen.

The company is working to put a carbon credit system in place. "For example, by

planting more trees, it will increase the biomass of the region and will

generate carbon credits. The money earned will be made available on a local

level to further develop communities," explains Evjen.

The company believes it is a first-mover in a new era of developing alternative

livelihoods for its partners in the community.

Looking ahead, Evjen states the development of Segele will allow the company to

fund further exploration activities in the country over the next 10 to 15 years.

"Our aim is to be the leading exploration company in Ethiopia, one that also

undertakes ESG-positive small-scale mining. And this is the goal not only in the

region we are currently exploring but in other parts of the country as well," he

concludes.

For more information please caontact,

Jørgen Evjen

CEO Akobo Minerals AB and Etno Mining P.l.c

Mob NO: +47 92 80 40 14

Mob ET: +251 944 76 2428

email: jorgen@akobominerals.com

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Akobo Minerals, is a Norway-based gold exploration company, currently with

ongoing exploration and small-scale mine development in the Gambela region and

Dima Woreda, southwest Ethiopia. The operations were established in 2009 by

people with long experience from the public mining sector in Ethiopia and from

the Norwegian oil service industry. Akobo Minerals holds a mining licence and an

exploration license over key targets in the area. Economic mineralisation was

discovered and the company is engaged in mining studies to advance the project

to production, alongside exploration core drilling. Akobo Minerals is

transforming its organisation to support an increased pace of core drilling. At

both the key targets Segele and Joru the company has so far released

exceptionally high-grade gold results including the Segele deposit with an

Inferred Mineral Resource of 78ktons at 20.9g/t.?A scoping study for Segele

includes an up-front capital expenditure of USD $8m and all-in sustaining cost

of USD $243 per ounce of gold produced. Core-drilling and trenching at Joru have

intersected both high-grade gold zones and large wide zones near surface. The

company has an excellent partnership with national authorities and places ESG at

the heart of its activities - a ground-breaking community program is being

planned.