Akobo Minerals

Capital/Financing Update • Jul 5, 2022

Akobo Minerals secures first phase of the Segele project financing

Akobo Minerals secures first phase of the Segele project financing

Akobo Minerals AB (publ) ("Akobo Minerals" or the "Company") is pleased to

announce that is has secured a convertible loan of NOK 49.175 million (around

USD 5 million equivalent) to fund the first phase of the Segele boutique mining

operation in Gambella, Ethiopia (the "Project"). The remaining USD 7 million for

the final phase of the Project is contemplated to be financed by additional debt

and/or equity. Akobo Minerals is currently progressing its assessment of several

financing alternatives.

"This convertible loan provides us with sufficient flexibility to explore the

optimal financial structure for the overall project, benefitting the company and

all of our shareholders. Supported by our major shareholders, in addition to a

few new faces, I feel comfortable that we will reach a very good solution to see

this project through to cash flow generation. In parallel to the financing we

continue to deliver on plan with work at site on schedule. The processing plant

design and supply phases are well underway and we expect major parts to arrive

in Ethiopia within a short period. Contract mining negotiations are very

advanced and we expect to break ground in October", says CEO Jørgen Evjen

The contribution of said amount, primarily from major shareholders, is

structured as a short-term loan, maturing 12 months after the date of

disbursement, which will be converted into shares in Akobo Minerals subject to

certain conditions being met (the "Loan"). The Loan will be converted at a

discount of 15% to any private placement of shares conducted in the next 12

months, or if no such private placement has taken place, at the lowest price per

share of either (i) NOK 5.75 or (ii) the 30-day VWAP (with a 15% discount) after

the expiry of such 12-month period. The Company also has a contractual right to

convert the Loan prior to such 12-month period at the same pricing terms. The

conversion of the Loan will take place by each lender subscribing for shares in

a private placement through off-setting the loan amount for each lender against

the relevant subscription amount for the shares. The Loan will carry a 5%

interest, which will accrue and be converted together with the principal amount

of the Loan. The actual conversion of the Loan will be subject to a resolution

by the shareholders' meeting of the Company. If the Company, for whatever

reason, is not able to issue the required shares to the lenders, the Loan shall

be immediately repaid in full, together with accrued interest.

Further updates will be provided in due course.

SpareBank 1 Markets acts as Financial Advisor to the Company in relation to the

Project Financing. Advokatfirmaet Schjødt is acting as the legal advisor to the

Company on Norwegian law matters.

For more information, contact:

Jørgen Evjen, CEOAkobo Minerals

Mob: +4792 80 40 14

Mail: jorgen@akobominerals.com

LinkedIn: www.linkedin.com/company/akobominerals

Twitter: @akobominerals

Web: https://akobominerals.com

Oslo, 5 July 2022

Akobo Minerals AB

About Akobo Minerals

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

company, currently holding an exploration license covering 182 km2 and with an

ongoing 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 16 km2 mining licence and is working to start up mining

of its very promising Segele target. It has an Inferred and Indicated Mineral

Resource yielding a world-class gold grade of 22.7 g/ton, combined with an

estimated all-in sustaining cost (AISC) of 243 USD per ounce. Still open at

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 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 it places environment, social and governance

(ESG) at the heart of its activities - as demonstrated by an industry

- leading community program.

Akobo Minerals has built a strong local foothold based upon 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.

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.

Akobo Minerals fully meets and complies with all parts of the JORC code, 2012.

For further information, see https://www.jorc.org/

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.