Akobo Minerals

Quarterly Report • Mar 9, 2023

Akobo Minerals announces results for the fourth quarter of 2022

Akobo Minerals announces results for the fourth quarter of 2022

OSLO, 09 March 2023:Akobo Minerals AB (publ) (ticker: AKOBO), the Scandinavian

-based Ethiopian gold exploration and boutique mining company, today reported

its fourth quarter 2022 results.

As the company is still in the project development phase prior to production

start-up, there was no income during the fourth quarter of the year. The net

loss for the quarter was SEK 34.2 million. The company has a loan of USD 8.5

million (repayable as 5,000 ounces of gold) and a cash position of SEK 56.3

million.

KEY COMPANY HIGHLIGHTS

· A 'de-risked' project

· Significant cash flow to be generated

· Excitement around new exploration activity following promising initial

findings

· Ambition of developing world class deposits of 1.5 to 2 Moz

· Potential for dividend following repayment of loan

· Akoko Minerals is the first new gold producer in Ethiopia since Legadembi in

1994

· Company has a first mover advantage, with expansion opportunities identified

IMPORTANT EVENTS

Fourth quarter of 2022

· The first parts of the processing plant arrived at the site

· The contract miner, IW Mining, deployed to the site and broke ground at the

Segele mine

· The company secured a 5,000-ounce gold loan, equal to USD 8.5 million

· Agreement was reached to cease all artisanal activity in the mining

concession

· A memorandum of understanding (MOU) was agreed with Dima Polytechnic to

improve local access to technical and vocational training

· Indigenous tree seeds have been collected and a community tree nursery began

· The company was shortlisted for a Mines and Money ESG Award

· A peace agreement was signed between the Ethiopian government and the Tigray

People's Liberation Front

After the quarter closed

· Some delay expected in startup of processing plant, which also impacts

liquidity

· Positive dialogue with main shareholders to address potential liquidity

constraints through issuance of additional loan

· New exploration target discovered at Gindaba - perhaps the most significant

finding up to date

· A two tons/hour ultra-small plant is packed and ready to be sent to Ethiopia

by air freight for early gold production

· Fabrication and shipping of the main processing plant was completed

· The foundation design for the mine was signed-off and building work started

· The underground mine boxcut was completed

· Two smaller entries into the upper part of the ore body were commenced

· Engagement with gold refineries began in order to establish offtake

agreements

· Gold was confirmed in the first drill hole at the third mineralised zone,

about 130 metres west of the main Segele mineralisation

· Both the Governor of the National Bank of Ethiopia and the Ethiopian

Minister of Mines were replaced - though the program of continuous improvements

in the regulatory framework are expected to continue

· Key ESG community-facing initiatives began:

· A Women and Youth Association was registered

· Artisanal and small-scale mining and solar technology teaching materials

were prepared

· Community Ecobrick production started

· A MOU was signed with Jimma University for ecological monitoring in Akobo

Minerals' project area

· An education programme was approved by the Gambella Regional Government

· The company was nominated for and awarded the Mining Indaba ESG Nature

Award

FINANCIAL PERFORMANCE OVERVIEW

· Operating loss for the quarter of SEK 34.2 million

· Operating loss for the year of SEK 53.8 million

· Cash flow for the quarter of SEK 45.9 million*

· Cash in bank at the end of the quarter of SEK 56.3 million

· Total equity at the end of the quarter of SEK 25.2 million

· Total external debt at the end of the quarter of SEK 95.1 million*

*Including a loan of USD 8.5 million (through a loan of 5,000 ounces of gold)

Commenting on the company's fourth quarter 2022 performance, Jørgen Evjen, CEO

of Akobo Minerals, stated: "We had an exceptionally busy end to the year and

this has continued into 2023 as we build towards initial gold production - and

with it the start of cash flow generation.

"During the quarter, we secured an innovative USD 8.5 million gold loan -

repayable against 5,000 ounces of gold - allowing us to complete the processing

plant and further develop our mining work. There have been delays both from the

general activity in Ethiopia and in receiving plant equipment from South Africa,

but we will shorty receive an ultra-small processing plant from our partner

Solo, in order to commence some gold production work as per our original

schedule."

Evjen concluded: "From securing finance and solving operational and logistics

issues, through to taking on new local employees and further developing our ESG

initiatives, we have had an extensive list of activities to manage. But our

employees - and partners - have dealt admirably with all challenges, which

augurs well for us with first pouring of gold within reach."

Akobo Minerals will host a webcast, in English, for all shareholders and

interested parties today at 10:00 CET. There will be a Q&A session following the

management presentation.

The webcast will be available at: Akobo Minerals Q4 2022

presentation (https://publish.ne.cision.com/l/gvvzwiqmc/channel.royalcast.com/lan

dingpage/hegnarmedia/20230309_1)

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: 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 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 license and is working to start up mining

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

Resource of 68.000 ounces 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 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 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 we place environment and social governance (ESG)

at the heart of our activities - as demonstrated by a planned industry-leading

extending shared value 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, whilst adhering to a lean

business operation. The company is headquartered in Oslo and is listed on the

Euronext Growth Oslo Exchange and Frankfurt Stock Exchange under the ticker

symbol, AKOBO.