Kefi Gold Regulatory News (KEFI)

26 April 2017

KEFI Minerals plc

("KEFI" or the "Company")

 UPDATE ON TULU KAPI PROJECT AND SITE VISIT

KEFI and Government of Ethiopia Finalise Community Resettlement Plan

KEFI Minerals (AIM: KEFI), the gold exploration and development company with projects in the Kingdom of Saudi Arabia and the Federal Democratic Republic of Ethiopia, is pleased to announce that

KEFI and the Government of Ethiopia have triggered the resettlement arrangements for the Tulu Kapi community. Tasks include property survey and data updates plus new lands site preparations.

The objective for the Government of Ethiopia and KEFI is for construction to commence in H2-17. Consultations are at the relevant federal Government ministries, Oromia National Regional State, West Wolega Zone and the Municipalities (Genji Woreda, Kapi Guracho and Bikiltu Ankore).

The Company will be hosting site visits which will start today and end on Friday 28 April 2016. Attendees include shareholders, analysts, financier groups and government representatives, who will receive presentations from the senior management team.

A copy of the summary presentation will be available for download from KEFI's website: www.kefi-minerals.com. No new material financial or trading information will be disclosed during the event.

Commenting on the resettlement, KEFI's Executive Chairman, Mr Harry Anagnostaras-Adams, said:

"KEFI and the government at all levels, have worked diligently with the local community to ensure that they are supported and compensated appropriately throughout the resettlement process. 

"Tulu Kapi is an important project, not just for KEFI but for the district, region and for Ethiopia as a whole. All stakeholders recognise the value-added contribution this project is expected to make, especially to the community and district, including training and long term jobs for over 500 people, a significant local economic multiplier effect and the generation of over US$1 billion of hard currency exports from initial open pit operations alone.

"With this vital step now taken, we look forward to progressing with the final steps ahead before commencing construction."

Further information can be viewed on www.kefi-minerals.com

NOTES TO EDITOR

KEFI Minerals plc

KEFI is the operator of two advanced gold development projects within the highly prospective Arabian-Nubian Shield, with an attributable 1.93Moz (100% of Tulu Kapi's 1.72Moz and 40% of Jibal Qutman's 0.73Moz) gold Mineral Resources (JORC 2012) plus significant resource growth potential. KEFI targets that production at these projects generates cash flows for further exploration and expansion as warranted, recoupment of development costs and, when appropriate, dividends to shareholders.

KEFI Minerals in Ethiopia

The Tulu Kapi gold project in western Ethiopia is being progressed towards development, following a grant of a Mining Licence in April 2015.

Following completion of KEFI's Definitive Feasibility Study for Tulu Kapi, the Company is now refining contractual terms for project construction and operation. Latest estimates for annual gold production are c. 100,000oz pa for a 10-year period and All-in Sustaining Costs (including operating, sustaining capital and closure but not including leasing and other financing charges) of

All aspects of the Tulu Kapi (open pit) gold project have been reported in compliance with the JORC Code (2012) and subjected to reviews by appropriate independent experts. These plans now also reflect the agreed construction and operating terms with project contractors, and have been independently reviewed by experts appointed for the project finance syndicate.

A Preliminary Economic Assessment has been published that indicates the economic attractiveness of mining the underground deposit adjacent to the Tulu Kapi open pit, after the start-up of the open pit and after positive cash flows have begun to repay project debts.

The projected cash flows indicate that the net cash build-up (after servicing financing) in the first three production years is US$31 million to US$216 million within the 5 year gold price range of US$1,050/oz to US$1,750/oz.

KEFI Minerals in the Kingdom of Saudi Arabia

In 2009, KEFI formed G&M in Saudi Arabia with local Saudi partner, Abdul Rahman Saad AlRashid & Sons Company Limited ("ARTAR"), to explore for gold and associated metals in the Arabian-Nubian Shield. KEFI has a 40% interest in G&M and is the operating partner. To date, G&M has conducted preliminary regional reconnaissance and has had five exploration licences ("ELs") granted, including Jibal Qutman and the more recently granted Hawiah EL that contains over 6km strike length of outcropping gossans developed on altered and mineralised rocks with all the hallmarks of a copper-gold-zinc VHMS deposit.

At Jibal Qutman, G&M's flagship project, Mineral Resources are estimated to total 28.4Mt at 0.80g/t gold for 733,045 contained ounces. The shallow oxide portion of this resource is being evaluated as a low capital expenditure heap-leach mine development.

ARTAR, on behalf of G&M, holds over 20 EL applications. ELs are renewable for up to three years and bestow the exclusive right to explore and to obtain a 30-year exploitation (mining) lease within the area. The Kingdom of Saudi Arabia has instituted, and is further overhauling, policies to encourage minerals exploration and development, and KEFI Minerals supports this priority by serving as the technical partner within G&M. ARTAR also serves this government policy as the major partner in G&M, which is one of the early movers in the modern resurgence of the Kingdom's minerals sector.