Akobo Minerals

Business and Financial Review • May 2, 2024

Akobo Minerals addresses operational challenges and advances towards production

Akobo Minerals addresses operational challenges and advances towards production

OSLO, 2 May 2024:Akobo Minerals

AB (https://www.otcmarkets.com/stock/AKOBF/quote?utm_source=Press+Release&utm_med

ium=Press+Release&utm_campaign=New+OTCQX+Company) (Euronext and Frankfurt:

AKOBO) (OTCQX:AKOBF)

Akobo Minerals, a leading gold exploration and mining company based in

Scandinavia with operations in Ethiopia, today provided an operational update

highlighting important progress made in solving recent challenges with

nationwide fuel supply disruptions and new customs procedures, finally enabling

full site activity. Production start-up is as such delayed to July/August, but

with the latest mine plan showing a significant revenue potential of 20 MUSD in

the first few months of full production. The company informed about strategic

initiatives started to evaluate ways of increasing efficiency in production and

further reduce operational risk, in addition to strengthening local management

capacity.

[Et bilde som inneholder utendørs, himmel, tre, grunn

Automatisk generert beskrivelse]

Key highlights

· Successful restructuring of debt obligations: Debt obligations, with respect

to the gold bond financing, restructured with Monetary Metals. All former

convertible debt converted to equity, resulting in only long-term debt to

Monetary Metals remaining

· Successful funding and strategic evaluation: Funding secured and strategic

discussions and evaluations underway with key industry players to mitigate risks

and improve production efficiency to capture the significant short-term

potential seen in the updated mine plan

· Strategic hiring: Seasoned local management consultant Wondwossen Zeleke

with experience in Ethiopian mining and oil industry, including 15 years of

leadership at Lundin's Africa Oil in Ethiopia and highly relevant experience

from the Midroc Legadembi gold mine, joins the team

· Fuel supply agreement Fuel supply agreement signed with Ethiopian National

Oil Company for direct sourcing and improved reliability; awaiting final license

from Ethiopian Petroleum and Energy Authority

· Sourcing and logistics agreements: Collaboration with Leeder Industrial and

Airland Logistics builds supply chain resilience. Organisational changes have

allowed for an increased focus on finding local suppliers that can meet price

and performance requirements

· Updated mine plan: The updated mine plan shows significant enhancements,

including a 9 MUSD EBITDA improvement in the first 12 months of mining, and a

revenue potential of 20mUSD (approx. 10.000 oz) the first few months of full

production

· Beneficial gold price trends: Favourable gold price trends have

significantly increased the value of the Segele resource compared to previous

financial estimates

Operational update

The unforeseen nationwide diesel shortages and customs changes for duty free

imports significantly impacted operations in recent months. Contingency plans

were made, but the rapidly evolving situation proved more challenging than

anticipated. With government support, these issues have been resolved for now.

The commissioning of the main plant has begun in some areas, with plans being

made for Universal Power's arrival to commission generators. The remaining

electrical cables are ready for connection, with progress being made on

finalising diesel infrastructure and TSF membrane.

Production start-up timing is still uncertain but expected pushed to

July/August. Efforts continue to finalize the processing plant and access the

ore body. The arrival of critical mining equipment after a prolonged customs

delay enables full ramp up of mining activities at site. The company has

actively reduced site activity to minimize cash burn rate in the delay period.

As production increases and positive cash flow is achieved, Akobo Minerals will

refocus on exploration to maximize project value.

For more information

Jørgen Evjen, CEO, Akobo Minerals

Mob: (+47) 92 80 40 14

Mail: jorgen@akobominerals.com

LinkedIn: www.linkedin.com/company/akobominerals

Web: 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 a mining

license covering 16 km2 in the Gambela region and Dima Woreda, Ethiopia. The

company has established itself as the leading gold exploration company in

Ethiopia through more than 13 years of on-the-ground activity, which has now

been enhanced further with the development of its Segele mine.

Akobo Minerals' Segele mine has an Inferred and Indicated Mineral Resource of

68,000 ounces, yielding a world-class gold grade of 22.7 g/ton. Still open to

depth, the gold mineralised zone continues to expand and will have a positive

impact on future resource estimates and the life expectancy of the mine. 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 the company places environment and social

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

industry-leading, extended shared value program.

Akobo Minerals has built a strong local foothold based on 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. The company is headquartered in Oslo and is publicly listed on

the Euronext Growth Oslo Exchange and the Frankfurt Stock Exchange under the

ticker symbol AKOBO. For US investors, Akobo Minerals

AB (https://www.otcmarkets.com/stock/AKOBF/quote?utm_source=Press+Release&utm_med

ium=Press+Release&utm_campaign=New+OTCQX+Company) (OTCQX: AKOBF) is traded on

the OTCQX Best Market, adhering to high financial standards, best practice

corporate governance, and compliance with U.S. securities laws. Additionally,

the company has a professional third-party sponsor introduction, and investors

can access current financial disclosures and Real-Time Level 2 quotes for the

company on www.otcmarkets.com.

Akobo Minerals places great emphasis on meeting and exceeding industry

standards, fully complying with all aspects of the JORC code, 2012. For detailed

information on their adherence to this code, please refer to

https://www.jorc.org/. Akobo Minerals' unwavering commitment to ethical

practices, community engagement, and environmental responsibility positions them

as a formidable force in the evolving landscape of the Ethiopian mining sector.