Hummingbird Regulatory News (HUM)

Hummingbird Resources plc / Ticker: HUM / Index: AIM / Sector: Mining

1 August 2022

Hummingbird Resources plc

("Hummingbird" or the "Company")

Dugbe Gold Project Update

Hummingbird Resources plc (AIM: HUM) is pleased to announce that Pasofino Gold Ltd ("Pasofino") has filed, on SEDAR, its Feasibility Study ("FS") in respect of the Dugbe Gold Project ("Dugbe") in Liberia.

Further to the Company's announcement on 13 June 2022, now that the option exercise conditions have been satisfied, Pasofino may, within 120 days from the date of its press release dated 1 August 2022, deliver the option satisfaction notice (the "Notice") to Hummingbird. Upon delivery of the Notice, Pasofino would, pursuant to the earn in agreement, acquire its 49% interest in the Project (prior to the issuance of the Government of Liberia's 10% carried interest).

Following Pasofino's acquisition of its 49% interest in the Project, both companies will have the right to exercise the option to consolidate ownership by converting Hummingbird's 51% ownership of the Project for a 51% shareholding in Pasofino, such that Pasofino would own 100% of the Project (prior to the government of Liberia's 10% carried interest), subject to the receipt of all required approvals including from the TSX Venture Exchange.

A strategic review of options to best realise the maximum value of the Project for all stakeholders is underway.

Dan Betts, CEO of Hummingbird Resources, commented: "We are excited by the results of the FS and the huge potential of the Dugbe project. As previously highlighted the 2,500km land package along the Dugbe shear zone has huge exploration potential above and beyond this FS. Hummingbird and Pasofino are now working closely together to review the strategic options for the Dugbe project with the goal to realise long-term value for our stakeholders."

Dugbe Feasibility Study Highlights:

· 5Mtpa throughput, for a potential mine life of 14 years

· Estimated head grade of 1.30 g/t over the life of mine

· Average annual production of ounces of 200,000 ounces ("koz") for the first five years with a Life of Mine Average of 172koz

· Average Estimated Recovery of 83% for the combined Tuzon and Dugbe F pits

· A start-up capital cost of US$435 million

· A post tax NPV at 5% of US$524 million, for a gold price of $1,700/oz

· Life of mine AISC of US$1005/oz

· A post tax IRR of 23.6%

· A 3.3 year payback period

· The Mineral Reserve Estimate has 66Mt at a grade of 1.30 AU G/t with a total of 2,760koz

· Life of Mine strip ratio of 4.02

About The Dugbe Gold Project

The 2,559 km2 Dugbe Gold Project is in southern Liberia and situated within the southwestern corner of the Birimian Supergroup which is host to the majority of West African gold deposits. To date, two deposits have been identified on the Project; Dugbe F and Tuzon discovered by Hummingbird in 2009 and 2011 respectively. The deposits are located within 4 km of the Dugbe Shear Zone which is thought to have played a role in large scale gold mineralization in the area.

A large amount of exploration in the area was conducted by Hummingbird up until 2012 including 74,497 m of diamond coring. Pasofino drilled an additional 14,584 metres at Tuzon and Dugbe during 2021. Both deposits have Mineral Resource Estimates dated 17 November 2021. Following the completion of the Definitive Feasibility Study in June 2022 a Mineral Reserve Estimate was declared, based on the open-pit mining of both deposits over a 14-year Life of Mine.

In addition, there are many gold prospects within the Project including the Bukon Jedeh area acquired in late 2020. Here artisanal mining has extracted gold since the 1930's and includes currently active open pits over 20 m deep working fresh bedrock. At the DSZ target on the Tuzon-Sackor trend Pasofino has discovered a broad zone of surface gold mineralisation in trench and outcrop along strike from Tuzon. At this and several of the other prospects no drilling has been carried out to date.

In 2019, Hummingbird signed a 25-year Mineral Development Agreement ("MDA") with the Government of Liberia providing the necessary long-term framework and stabilisation of taxes and duties. Under the terms of the MDA, the royalty rate on gold production is 3%, the income tax rate payable is 25% (with credit given for historic exploration expenditures), the fuel duty is reduced by 50%, and the Government of Liberia is granted a free carried interest of 10% in the Project.

For further information please visit www.hummingbirdresources.co.uk or contact:

Notes to Editors:

Hummingbird Resources plc (AIM: HUM) is a leading multi-asset, multi-jurisdiction gold production, development and exploration Company, member of the World Gold Council and founding member of Single Mine Origin (www.singlemineorigin.com). The Company currently has two core gold projects, the operational Yanfolila Gold Mine in Mali, and the Kouroussa Gold Mine in Guinea, which will more than double current gold production when production, scheduled for first gold pour end of Q2 2023. Further, the Company has a controlling interest in the Dugbe Gold Project in Liberia that is being developed by Pasofino Gold Limited through an earn-in agreement. The final feasibility results on Dugbe showcase 2.76Moz in Reserves and strong economics such as a 3.5-year capex payback period once in production, 14-year life of mine at a low AISC profile of US$1,005/oz. Our vision is to continue to grow our asset base, producing profitable ounces, while central to all we do being our Environmental, Social & Governance ("ESG") policies and practices.