Katoro Gold Regulatory News (KAT)

Katoro Gold plc (Incorporated in England and Wales)

(Registration Number: 9306219)

Share code on AIM: KAT

ISIN: GB00BSNBL022

("Katoro" or "the Company")

Dated: 22 December 2020

Katoro Gold PLC ('Katoro' or the 'Company')

Financing, Business Update and TVR

Katoro Gold PLC (AIM: KAT), the gold and nickel exploration and development company, is pleased to announce that is has raised £960,000 (gross), through a placing and subscription of new ordinary shares at 2 pence per share (the 'Fundraise'), conditional to approval at a General Meeting ('GM') that will be held on or around 15 January 2021 to seek approval from shareholders to increase the Company's authorised share capital. The placing was completed by the Company's broker SI Capital.

Louis Coetzee, Executive Chairman of Katoro Gold plc commented: "Today's financing reinforces the working capital of the Company at a highly important time in our development.

"In the context of the financing challenges faced by many companies with the impact of COVID-19, we are pleased to be able to demonstrate to our shareholders that the Company has bolstered its working capital position with a placing that was oversubscribed by 37%. We are now confidently moving forward towards completing critical workstreams related to the Blyvoor Gold Project and ongoing exploration work on the Haneti nickel project.

"As a result of the significant advancement of the Blyvoor Gold Tailings Project and progress on the Haneti nickel exploration programme, our business continues to develop its interests productively and we look forward to keeping shareholders updated on this progress."

Highlights:

· Katoro has raised £960,000 (gross) through a placing and subscription of 48,000,000 new ordinary shares of 1p each in the capital of the Company ('Ordinary Shares') ('Financing Shares') at 2p per share with new and existing shareholders. The placing was oversubscribed by 37%;

· Each Financing Share has an attaching warrant to subscribe for a further new Ordinary Share at a price of 3p, with a life to expiry of 3 years from the Financing Shares admission to trading on AIM ('Admission'), creating 48,000,000 new warrants ('Financing Warrants');

· The Fundraise will significantly bolster the Company's ability to continue uninterrupted with work on its projects during the current uncertainty and unpredictability associated with COVID-19 and to advance the project funding initiatives as well as complete technical study work for the Blyvoor Gold Tailings Project and also expanded follow-up work on the Haneti nickel exploration programme;

· In addition to the Financing Warrants, the Company currently has 69,066,666 warrants outstanding, including 10 million held by Power Metal Resources plc (LON: POW) exercisable at 1.25p, 5.2 million held by participants in the October 2019 fundraise exercisable at 1.50p, 17.2 million warrants held by participants in the March 2020 fundraise exercisable at 2p per warrant, and 36,666,666 warrants held by participants in the June 2020 fundraise exercisable at 3p per warrant;

· Should all 117,066,666 warrants (including Financing Warrants) be exercised, the Company would receive an additional £3,087,000 in cash inflow which would provide a significant additional cash runway for the Company;

· Based on the preliminary economic assessment / scoping study for the Blyvoor JV gold tailings project, further drilling and technical work was conducted on TSF6 and 7 of the Blyvoor Gold Tailings Project to produce a restated SAMRAC compliant Resource and Reserve Statement (See RNS dated 14 December 2020) as well as a SAMRAC compliant CPR inclusive of a SAMVAL valuation report; and

· The final draft versions of the SAMRAC CPR and SAMVAL valuation report referred to above, was received on 18 December 2020 and are now under review before the final version of said reports will be delivered.

Admission and Total Voting Rights

Application will be made for the Admission of the Financing Shares, with such Admission expected to become effective on or around 22 January 2021, subject to receiving GM approval referred to above. Following Admission, the share capital of the Company will comprise 376,698,308 Ordinary Shares.

Each Ordinary Share has one voting right. No Ordinary Shares are held in treasury. Accordingly, the total number of voting rights will be 376,698,308 and this figure may be used by shareholders as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change to their interest in, Katoro under the FCA's Disclosure Guidance and Transparency Rules.

Following the issue of the Financing Shares and Admission, Kibo Energy plc will be interested in, in aggregate, 96,138,738 Ordinary Shares representing approximately 25.52% of the Company's then issued share capital.

This announcement contains inside information as stipulated under the Market Abuse Regulations (EU) no. 596/2014.

**ENDS**

For further information please visit www.katorogold.com or contact: