MACRO METALS LIMITED — Capital/Financing Update 2020

Aug 31, 2020

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Nigerian Subsidiary
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Tuesday 1[st] September 2020

WELCOME SUPPORT for Australia’s KOGI IRON from NIGERIAN GOVERNMENT

HIGHLIGHTS:

• Nigeria’s Ministry of Mines and Steel Development (MMSD) has formally acknowledged the “efforts Australia’s Kogi Iron Limited is making to contribute to the diversification of the Nigerian economy through Kogi’s proposed Agbaja cast steel project in Nigeria.

• MMSD facilitates by providing information and administrative process for a gas supply agreement for the project.

• Positive response on Kogi Iron’s proposal for funding by MMSD – World Bank MinDiver Project.

Australian-based iron ore and steel development company, Kogi Iron Limited (ASX: KFE) (“Kogi”, “Kogi Iron” or the “Company”), is pleased to inform stakeholders and interested parties that it has received strong, tangible support from the Nigerian Government for the Company’s advanced and wholly owned Agbaja Cast Steel Project, Nigeria.

Despite COVID-19 restrictions, Nigeria’s Ministry of Mines and Steel Development (MMSD) has remained working to support activities, investment and development in Nigeria’s mining industry. The Company received a formal letter from the Honourable Minister – Arc. Olamilekan Adgebite stating that MMSD is willing to facilitate with other Ministries on behalf of Kogi Iron when necessary. It is clear MMSD is aligned with the Company in its near-term focus on critical path value drivers for the Agbaja Cast Steel Project, especially in obtaining a competitive gas supply contract and market entry policy for replacement of steel imports.

In prompt follow-up, MMSD provided the Company with detailed information on the background, current policy status, administrative processes and key contacts in the Nigeria National Petroleum Company (NNPC) and its Government subsidiary gas supplier, Nigeria Gas Company (NGC). Based on inputs by energy consultants and advisors, the Company has held discussions and initiated information exchange as the basis of an application for a gas supply agreement to be sourced from the Ajaokuta – Kaduna – Kano gas pipeline (AKK).

During August, Mr Alabi Samuel – Country Manager, KCM Mining Limited, visited the Federal capital, (Abuja) to meet with officers of the MMSD – World Bank MinDiver Project. He discussed the status of the Company’s proposal for MinDiver Project funding of Environmental, Social and Governance (ESG) programs related to iron ore mining and processing on the Agbaja Plateau. Aims and objectives of these MinDiver Project ESG programs are to reinforce the Company’s commitment to ‘sustainability best practice with zero waste targets’ and support the Community Development Agreement (CDA) including:

1. Water Management – hydrology and environmental baselines, local potable water supply, hydro-power.

KFE Capital Summary Ordinary Shares: 774,833,920 Listed Options: 142,328,948 Share price: $0.037 Market capitalisation: A$28.7m	Board of Directors and Management Mr Greg Boulton AM –Non-Executive Chairman Mr David Turvey –Managing Director Mr Peter Huljich –Non-Executive Director Mr Ray Ridge –Chief Financial Officer and Company Secretary Mr AlabiSamuel –Country Manager, KCM Mining Limited, Nigeria	Contact 10 George Street Stepney SA 5069 Tel: +61 8 7324 4047 E: info@kogiiron.com W:www.kogiiron.com

1. Infrastructure, Building & Road Materials – bricks, tiles, construction aggregates utilising process wastes.

2. Agriculture, Horticulture & Agronomy – soil and crop nutrition (phosphorus), especially for nuts and legumes.

3. Local Employment and Business Opportunities - skills training and employment in all programs.

Subsequently, the MinDiver Project team requested the Company provide it with additional detail in a proposal

and formal application for MinDiver funding . The formal application requires specific information to comply with criteria for World Bank support including:

• a) Environmental and social safeguards, related to current EIS documents and approvals.

• b) Detailed stakeholder engagement plan and grievance redress mechanism, related to current Community Development Agreement.

• c) Labour management plan and potential security risks.

The Company intends to prepare and submit a revised proposal and formal application for MinDiver Project funding in due course. We are excited by the opportunity to showcase the benefits derived from ‘best practice’ mining to the local community and the Nigerian people.

David Turvey commented:

“The Company continues to work closely and enjoy the support of Nigeria’s Ministry of Mines and Steel Development. These working relationships are based on mutual recognition of the importance of the Agbaja Cast Steel Project to the future for economic growth in Nigeria.

“Support for the Company from funding of mining related activities by the MMSD - World Bank MinDiver Project is important for both parties to demonstrate Environmental, Social and Governance (ESG) best practice.

“The Agbaja Plateau Community expects and deserves tangible ESG and economic benefits from sustainable development of the Company’s Agbaja Cast Steel Project.”.

Authorised for release by the Board

For further information, please contact: David Turvey Managing Director Kogi Iron Limited Tel (office): +61 8 7324 4047 Email: info@kogiiron.com

About Kogi Iron (ASX: KFE)

Kogi Iron Limited is an Adelaide-based company with the objective of becoming a producer of cast steel billet product that can be sold to fabricators of finished steel products through the development of its 100% owned Agbaja Cast Steel project located in Kogi State, Republic of Nigeria, West Africa (“Agbaja” or “Agbaja Project”).

Nigeria has substantial domestic demand for steel products, which is currently met largely through imports of scrap steel raw materials. The Agbaja project, located on the Agbaja plateau approximately 15km northwest of Lokoja city in Kogi State and 200km southwest of Abuja, the capital city of Nigeria, opens the opportunity for domestic production of steel.

The Company holds a land position which covers a large part of the Agbaja Plateau. The Agbaja Plateau hosts an extensive, shallow, flat-lying channel iron deposit with an Indicated and Inferred Mineral Resource of 586 million tonnes with an in-situ iron grade of 41.3% reported in accordance with the JORC Code (2012). This mineral resource covers approximately 20% of the prospective plateau area within ML24606 and ML24607.

Figure 1 – Location Plan: Agbaja Cast Steel Project. Nigeria.

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Table 1 – Summary Grade and Tonnage for Agbaja Iron Ore Resource Laterite (Zone A) and Oolitic (Zone B) Horizons (20% Fe lower cut off is applied) Refer ASX announcement 10 December 2013.

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Classification Tonnes (Mt) Fe (%)
Zone A (Laterite Mineralisation)
Indicated 147.5 33.2
Inferred 33.9 31.7
Total Indicated + Inferred (Zone A) 181.4 32.9
Zone B (Oolitic Mineralisation)
Indicated 318.7 45.2
Inferred 86.3 44.7
Total Indicated + Inferred (Zone B) 405.0 45.1
Combined Zone A and Zone B
Total Indicated 466.2 41.4
Total Inferred 120.1 41.1
Total Indicated + Inferred 586.3 41.3
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The Company confirms that it is not aware of any information or data that materially affects the information included in the original market announcements and, in the case of estimated Mineral Resources, which all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed with additional studies. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements.