Caracal Gold plc / EPIC: GCAT / Market: Main / Sector: Mining

12 July 2022

                                                           Caracal Gold plc ('Caracal' or the 'Company')                          

Increased Mineral Resource estimate for Kilimapesa Gold Mine

Caracal Gold plc, the expanding East African gold producer with over 1,300,000oz JORC-compliant gold resources, is pleased to announce an updated Mineral Resource Estimate ('MRE') for the Kilimapesa Hill Deposit ('KHD') at the Company's flagship Kilimapesa Gold Mine and Processing Operation in Kenya ('Kilimapesa' or the 'Project').

Highlights

·    Expanded Measured, Indicated and Inferred Resource of 12.15Mt @ 1.5g/t gold for 565.7koz contained gold for the Kilimapesa Hill Deposit, following successful resource expansion drill campaign.

·    Significant 202% increase in the Measured and Indicated category, with 56% of the contained ounces (317.6koz) now in Measured and Indicated (previously 105koz).

·    Result supports at least a 10-year Life of Mine for the current Project expansion, targeting 24,000oz per annum production

o  The significant increase in the Measured and Indicated Resource provides the required optionality for the current mining operations and the required difference in grade to feed the Milling Plant and the Heap Leach plants.

·    Overall Project Mineral Resource now stands at 14.05Mt @ 1.56g/t gold for 705koz contained gold.

o  KHD is one of two key deposits at Kilimapesa, the other being Red Ray, a new licence for which has been approved for issue with the Company due to engage with the office of the Cabinet Secretary for finalisation and collection.

·    Caracal's total portfolio Mineral Resource now stands at 26.36Mt @ 1.61g/t gold for 1.365moz contained gold.

o  The acquisition of the Nyakafuru Project in the world-class Lake Victoria Gold Fields in northern Tanzania continues to proceed according to plan (see RNS dated 31 May 2022).

·    Further resource expansion anticipated, with drilling at the Project ongoing; assay results expected from testing the western extent of Kilimapesa Hill and the eastern boundary of the mining licence and drilling also underway at prioritised regional targets.

Resource Summary

Robbie McCrae, CEO of Caracal Plc said, said,

"We are delighted to announce the updated MRE for the Kilimapesa Hill Deposit.

"This significant increase in the quality of the resource at KHD has further strengthened the Project team's confidence and justifies our decision to expand production at Kilimapesa to 24,000oz per annum, with the ounces contained in the Measured and Indicated category now able to be converted into reserves to support the mining and processing plant.

"With resource expansion drilling ongoing, we expect the next batch of drill results to grow the resource and life of mine even further.  These results should further enhance Kilimapesa Hill, as we have tested the western extent of the deposit and stepped out on strike to the eastern boundary of the mining licence. Alongside this, current drilling is focussed outside of the initial MRE area on the prospecting permit and regional targets, where we believe there is higher grade potential.  Accordingly, we believe there is significant further uplift potential and are very excited to find and prioritise the next sources of production to compliment the growth on Kilimapesa Hill and the existing mining licence.

"The early decision to acquire our own drill rigs and assemble our own drilling team to work alongside Franck and his exploration team is proving to be successful as it gives us the flexibility to adapt drilling programmes based on the success of our results and ultimately drill lots of metres cost effectively.   We look forward to translating this into increased resources. 

"Beyond Kenya, the acquisition of the Nyakafuru Project in the world-class Lake Victoria Gold Fields in northern Tanzania continues to proceed according to plan, and we are excited for the new gold mine development opportunity this presents."

**ENDS**

For further information visit www.caracalgold.com or contact the following:

Notes

Caracal Gold plc is an emerging East African focused gold producer with a clear path to grow production and resources both organically and through strategic acquisitions. Its aim is to rapidly increase production to +50,000oz p.a. and build a JORC compliant resource base of +3Moz.  To this end, it is progressing a well-defined mine optimisation strategy at its 100% owned Kilimapesa Gold Mine in Kenya, where there is significant mid-term expansion potential and ability to increase gold production to 24,000oz p.a. and the resource to +2Moz (current JORC compliant resources of approx. 671,000oz). Additionally, its experienced team, with proven track record in successfully developing and operating mining projects throughout Africa, is reviewing other complementary and strategically located gold mine and development projects in East Africa.

Caracal is a responsible mining and exploration company and supports the positive social and economic change that it contributes to the communities in the regions that it operates.  It is a proudly East African-focused company: it buys locally, employs locally, and protects the environment and its employees and their families' health, safety, and wellbeing.

Caracal's shares are quoted on the Main Market of the London Stock Exchange (LON: GCAT) and on the Frankfurt Stock Exchange (FSE: 6IK); a listing on the Nairobi Securities Exchange is underway.