Akobo Minerals

Business and Financial Review • Apr 22, 2022

Akobo Minerals reports significant gold mineral resource increase and classification upgrade which underpins strong mine economics

Akobo Minerals reports significant gold mineral resource increase and classification upgrade which underpins strong mine economics

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

exploration and boutique mining company, today announced that it has released

its updated Mineral Resource estimate for the Segele deposit.

The results from SRK (Australasia) Pty Ltd shows;

· significant increase of 31% in the gold ounces

· world class gold grade of 40.6 gram per ton for Indicated Mineral Resources

· improved potential for high margin gold production

The increase in ounces is derived from an increase in the tonnage and better

than expected average gold grade than previously indicated in our press release

of 19.04.22. At time of the previous press release the indications were that we

would see a drop in average gold grade. However, after improvements to the

estimation method and after the application of a higher cut-off grade to match

the planned underground mining methodologies, the average grade shows a more

similar average grade as seen in the previous resource estimate from April 2021.

In addition to the increase in the Mineral Resources, the classification of

parts of the mineralisation has been upgraded from Inferred to Indicated,

increasing the confidence in the figures. The average grade of 40.6 g/t for

Indicated Mineral Resources will have a positive impact on the cash flow

potential for the mine operations as this part of the resource is assumed to be

possible to access in the early stages of the mine operations

The updated Mineral Resources for the Segele deposit are tabulated in Table 1,

and is based upon all relevant assays related to the Segele infill and extension

drill program. The Mineral Resources are reported above a 2.65g/t Au cut off.

Table 1: Segele Deposit Mineral Resources as of 22 April 2022

Classification Cut off Grade1 Tonnes (kt) Au (g/t) Gold Ounces (kOz)

(Au g/t)

Measured 2.65 0 0 0

Indicated 32 40.6 41

Inferred 62 13.6 27

Total Mineral 94 22.7 69

Resources

The Mineral Resource cut-off grade was calculated using a gold price of USD

1,600 per ounce, costs per tonne for mining, processing, administration, and

environment, social and governance (ESG) and a 5% royalty for the federal

Government of Ethiopia on gold sales.

The increase in Mineral Resources is due to the results of the Segele drilling

campaign completed in March 2022. A total of 99 drill holes have been added to

the database, and the results returned several spectacular high-grade and

bonanza intersections that are incorporated into the present estimate. The

updated Mineral Resource estimate now covers gold mineralization in a series of

narrow stacked lodes that extends from surface to approx. 280m vertical depth

and the Indicated Mineral Resources stretching from approx. 20m to 110m below

surface.

The mineralisation covered in this Mineral Resource estimate is still open at

depth and several deep boreholes have confirmed that the gold zone is

continuing. It must be assumed that this can lead to new gold resources, which

in turn will lead to a longer life of the mine than expected.

Jørgen Evjen, CEO of Akobo Minerals, stated: "We are thrilled about the latest

resource estimate update, and look very much forward to start the production.

With the current gold price and low estimated operation costs, the cash flow

from mining will support our continued exploration efforts and also make room

for dividend pay-outs."

And further: "In addition to the significant increase in resources, the leap in

understanding of the mineralisation is just as important for us. This new

knowledge will make us even more capable of discovering new targets and deposits

in the highly prospective Segele area that at some point will be mined. "

More results from ongoing exploration of new targets in the vicinity of the

Segele deposit will be released soon in addition to an update on mining relevant

contracts.

The estimates for the Segele deposit has been prepared according to the 2012

Australasian Code for Reporting of Mineral Resources and Ore Reserves (Joint Ore

Reserve Committee - JORC-code).

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, southwest 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 a combined Mineral Resource (Indicated and

Inferred) 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 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.

Competent Person for Mineral Resources

The information in this press release that relates to Mineral Resources is based

on information compiled by Mr Michael Lowry who is a member of the Australasian

Institute of Mining and Metallurgy and is a full-time employee of SRK Consulting

(Australasia) Pty Ltd. Mr Lowry has sufficient experience which is relevant to

the style of mineralisation and type of deposit under consideration and to the

activity which he is undertaking to qualify as a Competent Person as defined in

the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results,

Mineral Resources and Ore Reserves'. Mr Lowry consents to the inclusion in the

report of the matters based upon his information and context in which it

appears.

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

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.