Significant Progress on Tulu Kapi Finance Package

10 January 2024

KEFI Gold and Copper plc

("KEFI" or the "Company")

Significant Progress on Tulu Kapi Gold Project US$320 million Finance Package

KEFI Gold and Copper PLC (AIM: KEFI), an early mover and successful explorer in the highly prospective Arabian Nubian Shield, is pleased to announce that it has received confirmation of conditional final credit committee approval from the lead lender for its "shovel-ready" Ethiopian development project, the high-grade Tulu Kapi Gold Project (the "Project").  This followed the analogous approvals from other key syndicate members including lead contractors and lead equity parties, and the previously reported actions by the Government of Ethiopia ("Government") during 2023.  Key Government actions include the previously negotiated and reported exemptions from foreign exchange restrictions, commitments to provide permanent security protection and the approval of additional protections for the lenders for the Project.

The receipt of these conditional approvals is testament to the collaborative and long-standing supportive attitude of Project syndicate parties.  The entire US$320 million finance package is designed at the subsidiary level, with syndicate members who know the country and are keen to support in our tightly coordinated and safe manner.

KEFI is now mobilising into the field to prepare the community, so far having briefed church leaders and congregations, and distributed medical treatment for the victims of the recent malaria outbreak, via the Tulu Kapi Charitable Endowment.  For good order, the introductory presentation made available to the community has been uploaded to the KEFI website and is accessible via the following link: https://www.kefi-goldandcopper.com/expo-presentation/addis-adaba

In parallel with the social engagement programme, we are preparing detailed definitive documentation for signing between the Project syndicate financiers.  Full Project launch, including funding drawdown, is on course for H1 2024, subject to the satisfaction of all the standard conditions precedent for a transaction of this type, independent confirmation that the Project is ready for launch from security and community standpoints, and final board approvals of all parties.

Speaking from the Future Minerals Forum in Saudi Arabia, where KEFI has been the technical partner in the highly successful Gold and Minerals SLA since 2008, Harry Anagnostaras-Adams, Executive Chairman of KEFI Gold and Copper, commented:

"The Ethiopian Government and the lead syndicate members of our high-grade Tulu Kapi Gold Project have been working hard to support our Project launch. The Government has recently made strong commitments including approving country membership (a set of protections for development finance institutions) for both of our Project lenders, deregulation of exchange controls and commitment to the preparation of security and our community.  These Government initiatives have played a very important supportive role in allowing the Project to move forward.

"By the end of 2023, we had updated all independent technical due diligence and reaffirmed conditional approvals by all lead members of the Project syndicate, including conditional final credit committee approval of the lead lender.  This has now given us the confidence to trigger preparations for Project launch, including progressing the approvals by the other syndicate members, preparing security and community, the readiness of which will be independently assessed, finalising legal documentation and the final board approvals for financial closing by all syndicate members.

"The targeted value-add from Project implementation is many times today's KEFI share price, as illustrated from the various industry-standard valuation benchmarks historically reported in our corporate presentations.  KEFI believes these are realistic targets as we successfully implement KEFI's strictly risk-managed development plans, whilst also addressing our highly prospective exploration pipeline in both Ethiopia and Saudi Arabia."

Market Abuse Regulation (MAR) Disclosure

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

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