Akobo Minerals

Regulatory Filings • Oct 25, 2021

Akobo Minerals paves the way for a resurgent Ethiopian mining industry clearing a major hurdle for investors being granted the right to hold and repatriate foreign currency from offshore accounts

Akobo Minerals paves the way for a resurgent Ethiopian mining industry clearing a major hurdle for investors being granted the right to hold and repatriate foreign currency from offshore accounts

On the 30th of September, Akobo Minerals and the Ministry of Mines (MoM) entered

into an agreement governing the future mining of the Segele project, and also

opening up the Ethiopian mining sector by agreeing to the right to hold foreign

currency on 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. Akobo Minerals is very proud to have been able to work

closely with the MoM to make this possible.

The agreement covers vital aspects of the mine development and operation. In

addition to other rights and obligations, Akobo Minerals has secured new terms

which promote valuable investment partnerships with Ethiopia, including:

· The right to hold proceeds from sale of gold in overseas USD bank accounts

· The right to freely repatriate profits from overseas USD bank accounts

· The right to a 5 year Mining Licence covering 16 square kilometres of the

Segele mineralisation and other promising targets - extendable in 10 year

increments

· Key clauses include

· Begin development and production programmes within 60 days and 15 months

respectively

· Right to sell gold freely in international markets

· Payment of 5% Royalty to the Federal Government

· Payment of 7% free carried interest in the mining project

Akobo Minerals would like to congratulate H.E. Eng Takele Uma (Minister for

Mines) in his mission to transform the Ethiopian mining sector into a

competitive, proactive and attractive sector for international investments. By

creating more transparency and supporting law abiding investors whilst also

implementing new international standards making it easier to repatriate profits

for mining and companies, the Ethiopian mining industry is now on track for a

bright future.

Chief Executive Officer, Jørgen Evjen said:

"I am impressed by the changes seen with the Ministry of Mines over the last

year, transformed into a partner open to find good solutions. Probably the most

important hurdle for opening up the mining sector in Ethiopia has now been

solved by introducing international mining standard for repatriation of profits,

and also to seek competitive terms and conditions compared to other neighbouring

countries."

As part of the Mining Agreement, the company has committed to develop the Segele

Mine in-line with the plans released previously (see press release, 27th

September 2021). Akobo Minerals has a drilling program underway to extend the

known mineralisation and in line with this, the mining agreement provides the

right to extend the mining licence upon continued economic viability of the mine

and fulfilment of all legal and contractual obligations.

As is normal for mining licences, the Ministry retains the right to withdraw the

mining licence upon failure to perform as pursuant to Ethiopian Law.

For more information contact

Jørgen Evjen, CEO

Mob.: (+47) 92 80 40 14

Mail: jorgen@akobominerals.com

About Akobo Minerals:

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.

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.