MACRO METALS LIMITED — Capital/Financing Update 2016

Nov 13, 2016

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14 NOVEMBER 2016

KOGI IRON LIMITED

ASX: KOGI SIGNS MOUs WITH TENOVA, PW

KOGI IRON LIMITED

MOUs signed with Tenova Pyromet and PW Group to advance Agbaja iron ore and steel project Feasibility Study

Kogi Iron Limited (ASX: KFE, “Kogi”, “the Company”) is pleased to announce that it has signed Memoranda of Understanding (MOUs) with two major African-based groups to progress the Company’s Agbaja iron ore and steel project in Nigeria.

The MOUs are with South Africa-based Tenova Pyromet (‘Tenova”) and Nigeria-based PW Group (‘PW’), two groups Kogi has identified as suitable providers of technical, engineering, construction and mining services to the Agbaja project.

The MOUs create a framework under which contracts for service can be negotiated subject to suitable commercial terms being agreed.

However, Kogi is not bound by the MOUs if acceptable terms are not reached, allowing the Company to enter discussions with other parties.

Tenova is a leading company in the design and supply of high-capacity electric submerged-arc smelting furnaces and complete smelting plants for the production of ferroalloys, base metals, slag cleaning and alloy refining.

PW is a mining, construction and civil engineering group that has operated in Nigeria for 42 years, serving a wide range of corporate and government clients such as Shell, Chevron and the Nigerian Federal Government.

Kogi Chairman Ian Burston said the MOUs represented an important step in the development of Agbaja.

“Tenova and PW are two very substantial groups that bring great experience and expertise to the table,” said Mr Burston.

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“We believe they are the right organisations to partner with Kogi to complete the feasibility study detail and in developing the Agbaja project.”

Tenova has previously worked with Kogi conducting production testing of ore from the Agbaja project to assess the levels of Fe content and impurities after processing in the manner proposed by Kogi.

That testing confirmed that Kogi was capable of producing steel products with 95%+ Fe content and low impurities.

Part of Tenova’s brief will be to assist Kogi in finalising the Definitive Feasibility Study for the project.

This was originally due for completion in June this year but has taken longer than expected due to additional time being needed for expert validation of Kogi’s proposed processing plant throughput, operating and capital cost parameters, greater than anticipated complexity in financial modelling and project planning.

While Kogi has previously announced that it had achieved substantial completion of the study further consideration of these issues will likely delay finalisation late into the first half of 2017. One of the first tasks Tenova will be undertaking is a review of the timeline to complete the DFS. The revised timing will be advised to the market when it is to hand.

Mr Burston said negotiations with Tenova and PW would be progressed during a visit to Nigeria later this month, where Kogi will host a site visit by potential international partners in the project.

“We are pleased to report interest in Agbaja from some substantial groups that are keen to learn more about the project and to speak with local officials on the ground in Nigeria,” he said.

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