Blyvoor Gold Tailings Project Progress Update

Katoro Gold plc (Incorporated in England and Wales)

(Registration Number: 9306219)

Share code on AIM: KAT

ISIN: GB00BSNBL022

("Katoro" or "the Company")

30 November 2020

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

BLYVOOR GOLD TAILINGS PROJECT: PROJECT PROGRESS UPDATE

Katoro Gold plc (AIM: KAT), the AIM listed gold and nickel exploration and development company, is pleased to announce an update with regard to the Company's Blyvoor Joint Venture in respect of the Blyvoor Gold Tailings Project (the 'Project').

In accordance with the Company's preferred funding strategy referred to in previous announcements on 21 July 2020, 3 September 2020 and 30 September 2020, the Company has received expressions of interest for funding of an amount significantly more than the peak funding requirement (US$36.4 million) announced on 7 May 2020. The expressions of interest for funding, amongst others, includes a formal non-binding term sheet for funding, which if agreed and accepted by the Blyvoor Joint Venture, will be sufficient to fund up to 40% of the peak funding requirement referred to above.

Funding agreement(s) with the various prospective funder(s) are subject to the following principal conditions, as set by the prospective funders:

1.    The Company must complete and deliver a restated Resource and Reserve Statement for the Project;

2.    The Company must prepare and deliver an independent valuation report for the Project;

3.    Completion of due diligence investigations by each of the prospective funders; and

4.    The Blyvoor Joint Venture, currently unincorporated, must be converted into an incorporated venture

The current status towards meeting each of the above-mentioned funding conditions are as follows:

1.    With regard to points 1 and 2 above; the technical reports referenced here are in an advanced stage of preparation and final draft versions have already been received for review and will be available for release shortly to the potential funding parties;

2.    Prospective funders have commenced due diligence investigations, with completion subject to receipt of the above referred technical reports which would underpin the due diligence exercise; and

3.    The joint venture partners have already agreed to proceed with the incorporation of the unincorporated Blyvoor Joint Venture and are currently negotiating the final terms and conditions of incorporation which will ensure due alignment with the parties' rights and interests as captured under the existing unincorporated version of the Blyvoor Joint Venture.

The existing Blyvoor Joint Venture Agreement will remain in place until the Blyvoor Joint Venture has been incorporated as detailed above.

The impact of COVID-19 remains a debilitating reality and it will, based on current projections, continue to influence the pace and manner in which agreed deadlines can be met. Over the past months COVID-19 has contributed to significant delays in various aspects of our ongoing work on the Project, which the Company and its joint venture partners have been able to contain and mitigate very effectively to date and which the Company believe it will be able to do for the foreseeable future on account of thorough and diligent contingency planning.

Louis Coetzee, Executive Chairman of Katoro, said:

"We are delighted that the Company has reached a significant milestone with expressions of interest for Blyvoor funding of an amount significantly more than the peak funding requirement.

Despite the challenging conditions faced by all parties during the COVID-19 pandemic, the joint venture partners pushed ahead with the exploration and technical work related to the upgrade of the Blyvoor Project resource and reserve statement and delivery of an independent valuation report. The release of both these documents is imminent and forms an integral part in the final delivery of the Blyvoor funding package.

The Board of Directors also believe that the impending incorporation of the unincorporated Blyvoor Joint Venture delivers a clear indication that the requirements set out by potential investors are nearing completion.

We look forward to updating the market in due course as and when developments occur."

Further background details on the Blyvoor Scoping Study and project are available in the announcements of 30 January 2020, 7 May 2020, 29 May 2020 and 1 July 2020 on the Company's website at www.katorogold.com 

This announcement contains inside information as stipulated under the Market Abuse Regulations (EU) no. 596/2014.

**ENDS**

For further information please visit www.katorogold.com or contact: