Kefi Gold & Copper Regulatory News (KEFI)

8 April 2025

KEFI Gold and Copper plc

("KEFI" or the "Company")

Corporate Update

Significant recent across-the-board progress

KEFI (AIM: KEFI), the gold and copper exploration and development company focused on the Arabian-Nubian Shield, is pleased to provide an update on recent positive progress.

Tulu Kapi Project launch update

· Preparations for full launch of the Tulu Kapi Gold Project are advancing across all fronts for signing this quarter of the assembled detailed definitive documentation.

· Property surveys for Phase 1 Resettlement (c.350 properties including c.130 households) are now being reviewed against strict verification standards and procedures. The phased compensation and subsequent resettlement will be in compliance with Ethiopian Law and World Bank IFC Performance Standards.

· Updated tender prices for mining services are being evaluated.

· Construction of initial site facilities is underway, including expanded water supply and camps for construction and security.

· The focus now is on completing the following this quarter:

· Government approvals of residual administrative matters, including AFC membership ratification by the Ethiopian Parliament; and

· Independent certifications for the project's fixed price construction contracts, security, community commitments and overall schedule.

· All contractors have been asked to prepare to proceed from the end of this quarter.

· Operational management being installed at project company Tulu Kapi Gold Mines S.C. (TKGM), with Simon Cleghorn as Managing Director (former COO of a major Kazakh mining group) and Theron Brand as Finance Director (former financial head of Namibian mining groups).

Tulu Kapi Project Finance plan progress

KEFI continues to optimise the finance syndicate at the subsidiary level, as follows:

US$300 million capital requirement net of capex already spent and of contractor capital commitments comprising:

KEFI Founder and Executive Chairman, Harry Anagnostaras-Adams, commented: "The preparations for full launch of Tulu Kapi Gold Project are advancing across all fronts for signing this quarter of the assembled detailed definitive documentation. The economic metrics continue to improve and the stakeholder support is across-the-board.

"Excluding the potential of the underground resources at Tulu Kapi, the business plan model projections results in over seven years of production, averaging 167,000 oz per year, generating a net cash flow to project shareholders of US$1.1-1.6 billion at gold prices of US$2,400-3,000/oz over the life of the project."

Notes to Editor

KEFI Gold and Copper plc

KEFI is focused primarily on the development of the Tulu Kapi Gold Project in Ethiopia and its pipeline of highly prospective exploration projects in the Arabian-Nubian Shield. KEFI targets that production at Tulu Kapi will generate cash flows for capital repayments, further exploration and dividends to shareholders.

Background on the Tulu Kapi Project Economic Metrics

Tulu Kapi boasts strong economic metrics due to minimal overburden, high grades, and high recoveries. This project will significantly benefit the community, region, country, and the Company. Extensive regulatory reforms and preparations were necessary for Ethiopia's first internationally financed mining project, requiring patience and support from the Government.

Development capital expenditure has been project-financed based on the open-pit Ore Reserves of 1 million oz (15.4 million tonnes at 2.1 g/t), using a conservative gold price assumption of US$1,250/oz. The project lenders base case financial model has assumed that only open pit ore is processed with an initial output of 2.5 million tonnes per annum and a project average of 2.0 million tonnes per annum. Ore Reserves and mine plans will be refined with in-fill-grade-control drilling during Tulu Kapi's construction as part of the 'Operational Readiness Program'.

KEFI's business plan goes beyond the open-pit development and includes early underground work to extend the existing underground Indicated Resource of 220,000 oz (1.2 million tonnes at 5.7g/t). The Preliminary Economic Assessment projects recovering about 200,000 oz (1.5 million tonnes at 4g/t) underground, supplementing open pit ore for the first seven years. The deposit is open down plunge with a last drill intercept of 90m at 2.8 g/t, containing high-grade zones. KEFI estimates over 1 million oz potential for underground ore.

Excluding the potential of the underground, the 'Business Plan Model' projections show that running the plant at 2.4 million tonnes per annum results in over seven years of production averaging 167,000 oz per year, generating a net cash flow to project shareholders of US$1.1-1.6 billion at gold prices of US$2,400-3,000/oz over the life of the project. It is worth noting that on this basis net operating cash flow in the first full year of production is estimated at US$231-304 million, compared to project finance debt of US$240 million.

The detailed assumptions underlying the cash flow modelling can be found in the Project Overview sections of the KEFI website. See https://www.kefi-goldandcopper.com/files/files/KEFI-Tulu-Kapi-Gold-Project-Overview-March25.pdf