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REG - Kefi Gold and Copper - Company Update

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RNS Number : 3156S  Kefi Gold and Copper PLC  07 January 2025

7 January 2025

KEFI Gold and Copper plc

("KEFI" or the "Company")

Company Update

KEFI (AIM: KEFI), the gold and copper exploration and development company
focused on the Arabian-Nubian Shield, with a pipeline of projects in the
Federal Democratic Republic of Ethiopia and the Kingdom of Saudi Arabia,
advises of the following developments.

Future Minerals Forum

An updated presentation has been uploaded to the Company's website to
facilitate discussions at the Future Minerals Forum, being held in Riyadh,
Saudi Arabia, during the week commencing 13 January 2025.

Key points made in the updated presentation are highlighted below.

Tulu Kapi Gold Project in Ethiopia

·    Development:

o Certain Major Works have now started, including construction of the new main
access road from the highway to the Tulu Kapi site. This Government-funded
project significantly de-risks the overall development schedule.

·    Tulu Kapi Project Finance:

o Debt capital: Detailed finalised terms are being inserted into the
already-drafted detailed documentation for execution of the debt-facility
which has been increased to US$240 million from the previous US$190 million.

o Equity capital: of the original requirement of US$180 million, the Company
is currently arranging the remaining c.US$30 million, explained as follows:

§ US$100 million has already been invested through historical expenditure
(US$50 million since 2014);

§ the Ethiopian Government and private sector investors have already
committed US$20 million for a 10% stake in Tulu Kapi Gold Mines SC  and up to
US$30 million in the form of gold-linked preference shares of KEFI Minerals
(Ethiopia) Limited expected to be issued as the Ethiopian Stock Exchange is
launched (currently scheduled to be by the end of January) ; and

§ the remaining US$30 million is being finalised with certain Middle Eastern
and other sectoral investors, as the Company looks to conclude the optimal
financing scenario from interested parties.

Saudi Arabia

·    The current strategic review of the Company's GMCO joint venture and
the future of KEFI's 15% holding, currently focuses principally on:

o the staged development plans for the Jibal Qutman Gold and Hawiah
Copper-Gold projects; and

o short-listing potential transaction scenarios being discussed with third
parties.

·    Potential valuation estimates have previously been published by the
Company for the two advanced projects, Jibal Qutman Gold and Hawiah Copper and
Gold, including the 2023 pre-feasibility valuation of the Hawiah copper-gold
project at approximately US$301 million NPV (8% discount rate) and a post-tax
IRR of 75% (see the Company's announcement 'Positive PFS and Associated
Studies for Hawiah Copper-Gold Project' released on 28 June 2023).

Updated KEFI financial models

·    The estimated potential value of KEFI for its shareholders has been
updated to 11.1 pence per share ("pps") assuming an NPV at a 5% discount rate
and the Tulu Kapi project at a gold price of US$2,600/oz. This compares with a
10.5 pps potential valuation published in November 2024 despite having
accounted for the recent increase in shares in issue and is due to:

o the currency movement of USD vs GBP; and

o the inclusion of a preliminary valuation of KEFI's 15% beneficial interest
in GMCO by assigning US$80/oz of gold equivalent resources.

KEFI Executive Chairman, Harry Anagnostaras-Adams, commented:

"It is now timely to focus on key alliances for KEFI's aggressive growth
ambitions.

"We will shortly launch broader Major Works at our Ethiopian Tulu Kapi
project, a high-grade and high-recovery gold project larger than any Saudi
gold project today. We will also commence exploration at tantalum/lithium and
copper/nickel/cobalt targets in well-known Ethiopian zones of mineralisation
for these critical materials, following the award of the Konso Project in
December 2024.

"At the same time there is significant interest in our 15%-owned GMCO JV in
Saudi Arabia, currently under strategic review, and we look forward to further
discussions during the Future Minerals Forum in Riyadh next week.

"In short, we have a number of highly attractive opportunities before us and
we are focused on the full launch of Tulu Kapi Gold Project, as well as
finalising our other priority projects and alliances for the next stage."

Enquiries

 KEFI Gold and Copper plc
 Harry Anagnostaras-Adams (Executive Chairman)       +357 99457843
 John Leach (Finance Director)                       +357 99208130

 SP Angel Corporate Finance LLP (Nominated Adviser)  +44 (0) 20 3470 0470
 Jeff Keating, Adam Cowl

 Tavira Financial Limited (Lead Broker)              +44 (0) 20 7100 5100
 Oliver Stansfield, Jonathan Evans

 IFC Advisory Ltd (Financial PR and IR)              +44 (0) 20 3934 6630
 Tim Metcalfe, Florence Chandler

 3PPB LLC (Institutional IR)
 Patrick Chidley                                     +1 (917) 991 7701
 Paul Durham                                         +1-203-940-2538

 

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