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UPON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THOSE PERSONS THAT RECEIVED INSIDE INFORMATION (AS DEFINED IN UK MAR) IN A MARKET SOUNDING ARE NO LONGER IN POSSESSION OF SUCH INSIDE INFORMATION, WHICH IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

03 July 2023

Hamak Gold Limited

("Hamak Gold" or the "Company")

Subscription for new shares to raise £350,000 at 8.75 pence per share

Issue of Director Fee Shares

Drilling Contract Signed

Total Voting Rights

Subscription for new Shares

Hamak Gold Limited (LSE: HAMA) is pleased to announce that the Company and its broker Peterhouse Capital have raised gross proceeds of £350,000 (before expenses), from Directors, management, existing shareholders and new investors (the "Subscription") for 4,000,000 new ordinary shares of no par value ("Ordinary Shares") at a price of 8.75 pence each (the "Subscription Price") (the "Subscription Shares"), which is a discount of 5.4% to the closing price of 9.25 pence per Ordinary Share traded on the main market for listed securities (the "Main Market") of London Stock Exchange plc (the "LSE") on 30 June 2023. The Company has utilised existing shareholder authorities for the subscription.

The Subsciption is conditional only on admission of the Subscription Shares to listing on standard segment of the Official List ("Standard Listing") of the Financial Conduct Authority (the "FCA") and to trading on the Main Market of the LSE ("Admission").

Certain directors, management and related parties have subscribed for the following shares in the Subscription;

*Sara Smithson is spouse of Karl Smithson and related party for the purpose of the subscription

Issue of Shares in Lieu of Drilling Contract Fees

The Company further announces that it entered into a drilling contract with Cestos Drilling to undertake the next phase of drilling work, expected to total 1,000 metres ("m") of core drilling.  Cestos Drilling was the contracting drill company that undertook the first successful drilling programme for Hamak Gold. 

As part of the engagement, the Company has issued 359,955 new ordinary shares to a director of Cestos Drilling in lieu of certain drilling fees related to the programme, which are being issued at a price of 8.75 pence per share as part of the Subscription.

Use of Net Proceeds

The Company intends to use the net proceeds of the Subscription to fund the next phase of drilling at its Nimba licence in Liberia and for general working capital purposes. 

An initial drilling programme intersected near surface gold mineralization of 20m @ 7grammes per tonne ("g/t") Au including 5m @ 22g/t Au that is associated with a 3 kilometre ("km") x 1km strong gold in soil anomaly and outcropping gold mineralized metadolerite unit.  The Company recently announced the completion of an Induced Polarization geophysical survey across the discovery site which has identified a number of priority drill targets.  The drilling will be aimed at extending the gold mineralization away from the discovey site.  Mobilisation of the drill rig is expected to commence in the near future.

Issue of Shares in Lieu of Directors' Fees

The Company further announces that it has issued new ordinary shares to the following Directors in respect of fees earned for the quarter of March, April and May 2023.

The above fees are in line with the 2,520,000 Fee Shares arrangement that is set out in the Company's Prospectus, at the time of admission to the LSE on 1^st March 2022 and are based on a price of 10 pence per share.

Directors continue to take shares in lieu of fees to conserve cash in the Company.

Admission and Total Voting Rights

The Company has made applications to the FCA and the LSE to have 4,415,472 Ordinary Shares admitted to the Standard Listing and to trading on the Main Market with Admission expected to occur on or around 6 July 2023. 

On Admission, the Company's issued share capital will comprise 50,148,050 Ordinary Shares, with each Ordinary Share carrying the right to one vote. Accordingly, the total number of voting rights in the Company will be 50,148,050 and this figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules.

Following the subscription and fee shares issue, the directors holdings are as follows:

Karl Smithson, Executive Director of Hamak Gold commented: 

"The funds raised will enable the Company to embark on the next phase of drilling aimed at expanding on the high-grade gold discovery made at the Nimba licence. We expect to mobilise the drill rig and geological team and be drilling in the near future. 

"We are grateful for the ongoing support of shareholders, Directors, management and our drill contractor in supporting this capital raise in these challenging capital markets and we look forward to providing project updates as we progress."

For the purposes of UK MAR, the person responsible for arranging release of this announcement on behalf of Hamak Gold is Karl Smithson, Executive Director.

- Ends -

For further information you are invited to view the company's website at www.hamakgold.com or please contact:

About Hamak Gold Limited

Hamak Gold Limited (LSE: HAMA) is a UK listed company focussed on gold exploration of a portfolio of licences in highly prospective areas of Liberia, where significant drilling results have identified a new high-grade gold discovery with the discovery hole returning 20m @ 7g/t Au near surface.