Katoro Gold Regulatory News (KAT)

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Opera Investments plc ("Opera")

Update on Proposed Transaction by Opera to acquire the Imweru and Lubando Gold Projects from Kibo Mining plc ("Kibo")

2 March 2017

Further to the announcements made by Kibo and Opera on 23 September and 2 December 2016, Opera and Kibo are pleased to announce the following update on the potential transaction by Opera to acquire the Imweru and Lubando Gold Projects from Kibo ("the Proposed Transaction"). Opera and Kibo are pleased to confirm that the transaction documentation in connection to the Proposed Transaction is nearing completion.

Resource Update on Imweru and Lubando Gold Projects

As part of the Proposed Transaction, under applicable regulation and commercial requirements, Opera has commissioned an appropriately qualified expert, Minxcon (Pty) Ltd, to undertake a Competent Person's Report, an evaluation of the geological assets to be acquired from Kibo by Opera. As part of this review, the directors of Opera and Kibo have received an update to the resources of Imweru and Lubando Gold Projects.

The updated resources are as follows:

The information provided in relation to this resource update has been reviewed and verified by Kibo's qualified person, Noel O'Keffe B.Sc. (Hons) Geology, PGEO, who is a qualified person for the purposes of the AIM Rules for Companies.

The final Competent Person's Report will be included in the admission document to be issued in due course.

Timings

Following the completion of the final aspects of relevant documentation associated with the Proposed Transaction, the directors of Kibo and Opera are pleased to report that they are looking forward to interacting with potential investors in the coming weeks in order to complete the Proposed Transaction as soon as possible.

Summary of Proposed Transaction

A summary of the Proposed Transaction is as follows:

· Subject to the finalisation of the commercial, technical and legal due diligence, the consideration to acquire the Imweru and Lubando Gold Projects will be satisfied by the allotment and issue to Kibo on completion of the Proposed Transaction of 61,000,000 ordinary shares of one pence each in the capital of Opera at a price of 6 pence per ordinary share immediately following completion of the Proposed Transaction (and completion of the fundraising by Opera referred to below).

· As part of the Proposed Transaction, Opera and Kibo have agreed that there will be a fundraising by way of the issue of new ordinary shares in Opera at a price of 6 pence per ordinary share. Following a detailed review of the costs associated with the future work programme and operations following the completion of the Proposed Transaction, the directors of Kibo and Opera have determined that the minimum fundraising required to complete the Proposed Transaction will now be £1.7million, an increase from £1.2million as announced in September 2016, due to movements in foreign exchange and other prudent budgetary considerations.

· As part of the Proposed Transaction, Opera will delist from the Main Market of the London Stock Exchange and seek admission to the AIM Market of the London Stock Exchange (AIM) of the enlarged share capital of Opera.

· On completion of the Proposed Transaction it is proposed that Opera will be renamed Katoro Gold Mining plc.

· Opera had appointed Strand Hanson Limited to act as its Nominated Adviser and Beaufort Securities Ltd as its broker with respect to the Proposed Transaction.

Shareholders should note that there remain a number of matters upon which completion of the Proposed Transaction is conditional.

Further announcements in relation to the Proposed Transaction will be made as soon as appropriate.

Paul Dudley, Chairman of Opera, commented: "We thank our shareholders for their support and will provide updates as appropriate in due course as we seek to make further progress towards the completion of the transaction."

Louis Coetzee, CEO of Kibo, said: "We are pleased to be nearing completion of the above mentioned transaction and looking forward to see work commence on the Imweru project, as per earlier announcements in this regard.

We are also particularly pleased with the increase in gold ounces in the restated resource statements."

Enquiries

Paul Dudley +44 (0) 20 3551 4872 Opera Investments plc

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 (MAR).