Update: Capital Structure & Grant of Share Options

Cora Gold Limited / EPIC: CORA.L / Market: AIM / Sector: Mining

12 October 2020

Cora Gold Limited ('Cora' or 'the Company')

Update on Capital Structure and Granting of Share Options

Cora Gold Limited, the West African focused gold exploration company, is pleased to provide an update on its capital structure and announce the granting of share options.

Highlights:

●     Aggregate proceeds of approximately £1.5m received from the exercise of warrants prior to 30 September 2020

●     Cash of US$5m

●     The Company has no further outstanding warrants

●     Options granted to board, management and consultants to subscribe for 7,200,000 Ordinary Shares at a price of 10 pence per Ordinary Share expiring on 12 October 2025

On 30 September 2019, the Company issued 30,714,285 warrants (the 'Warrants') to subscribe for ordinary shares in the capital of the Company ('Ordinary Shares') at a price of 10p per Ordinary Share as part of a £2m fundraising. The expiry date of these Warrants was 30 September 2020. Numerous Warrants were exercised and announced prior to that date and the Company confirms that in aggregate exercises were made over 14,866,989 Ordinary Shares for total gross proceeds of GBP £1,486,698.90. This means that the Company's cash balances were in excess of US$5 million at the end of September 2020.  There are currently no further warrants outstanding.

Bert Monro, CEO, comments "After strong support from existing shareholders exercising their warrants at 10p I am pleased to report that the Company's cash balance was in excess of US$5 million at the end of September 2020.

"The Company is fully funded for its upcoming work programmes as we are focussed on resource growth at the Sanankoro Gold Project ('the Project').  The longer-term objective of delivering a Definitive Feasibility Study on the Project before the end of 2021 remains in place as we focus on proving up shallow oxide ounces. Following the appointment of Norm Bailie (RNS on 16 September 2020), who has a wealth of West African discovery and development experience, we are extremely excited about seeing the results from the upcoming drill programmes.  We look forward to announcing the details of our exploration plans in the coming weeks."

Grant of Options

The Company operates a structure with a low corporate overhead and its Remuneration and Nominations Committee annually benchmarks executive and non-executive remuneration against its peers. That exercise has demonstrated that the pay of the Company's board and management is currently below the average of its peers. Accordingly, and as part of the Company's ongoing management incentivisation scheme, on 12 October 2020, the Company granted options ('Options') to subscribe for a total of 7,200,000 Ordinary Shares, equivalent to 3.51% of the issued share capital of the Company, to certain directors, management and consultants. The exercise price of the Options is 10 pence per Ordinary Share, representing a premium of 7.58% to the average closing mid-market price of the Ordinary Shares on the 10 trading days prior to the date of grant. The Options expire on 12 October 2025.

The Options are not assignable or transferable and may lapse six months after the holder ceasing to be a director, employee or consultant of the Company.

In addition, regarding vesting:

a.   One quarter of the Options vest immediately;

b.  One quarter of the Options vest on 12 April 2021;

c.   One quarter of the Options vest on 12 October 2021; and

d.  One quarter of the Options vest on 12 April 2022.

Following the grant of the Options, the total number of share options granted to subscribe for Ordinary Shares is 15,300,000, equivalent to 7.45% of the current ordinary issued share capital of the Company. Immediately post granting of the above Options the Company's issued and outstanding capital structure comprised:

●     205,382,159 Ordinary Shares;

●     share options to subscribe for 1,900,000 Ordinary Shares at a price of 16.5 pence per Ordinary Share expiring on 18 December 2022 (awarded in December 2017);

●     share options to subscribe for 6,200,000 Ordinary Shares at a price of 8.5 pence per Ordinary Share expiring on 09 October 2023 (awarded in October 2019); and

●     share options to subscribe for 7,200,000 Ordinary Shares at a price of 10 pence per Ordinary Share expiring on 12 October 2025.

NOTIFICATION AND PUBLIC DISCLOSURE OF TRANSACTIONS BY PERSONS DISCHARGING MANAGERIAL RESPONSIBILITIES AND PERSONS CLOSELY ASSOCIATED WITH THEM:

Market Abuse Regulation ('MAR') Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

**ENDS**

For further information, please visit http://www.coragold.com or contact:

Notes

Cora Gold is a gold company focused on two world class gold regions in Mali and Senegal in West Africa. Historical exploration has resulted in the highly prospective Sanankoro Gold Discovery, in addition to multiple, high potential, drill ready gold targets within its broader portfolio. Cora's primary focus is on further developing Sanankoro in the Yanfolila Gold Belt (Southern Mali), which Cora believes has the potential for a standalone mine development. Sanankoro has a positive Scoping Study published on it showing an 107% IRR and US$41.5m NPV₈ at a US$1,500 gold price. Cora's highly experienced management team has a proven track record in making multi-million-ounce gold discoveries, which have been developed into operating mines.