KEFI Minerals plc Lifting of Ethiopian State of Emergency

TIDMKEFI

KEFI Minerals plc

05 June 2018

5 June 2018

KEFI Minerals plc

("KEFI" or the "Company")

Lifting of Ethiopian State of Emergency

KEFI Minerals (AIM: KEFI), the gold exploration and development company with projects in the Federal Democratic Republic of Ethiopia and the Kingdom of Saudi Arabia is pleased to note that the Ethiopian Parliament today lifted the official State of Emergency two months ahead of schedule. It had been introduced as a precautionary measure in February 2018 upon the resignation of the previous Prime Minister to facilitate a transition to a new leadership, which has since occurred smoothly.

Throughout this process the Company has remained in a constant and productive dialogue with the relevant new and existing Ethiopian governmental and ministerial officials and has seen whole hearted support for the Company's Tulu Kapi flagship project ("Tulu Kapi"), in which the Government of Ethiopia has already committed to take a direct stake, as previously disclosed.

The Company can confirm that throughout the State of Emergency day-to-day operations at Tulu Kapi were unaffected.

Enquiries

 
 KEFI Minerals plc 
 Harry Anagnostaras-Adams (Executive 
  Chairman)                             [phone] 
 John Leach (Finance Director)          [phone] 
 
 SP Angel Corporate Finance 
  LLP (Nominated Adviser)               [phone] 
 Ewan Leggat, Jeff Keating, 
  Soltan Tagiev 
 
 Brandon Hill Capital Ltd (Joint 
  Broker)                               [phone] 
 Oliver Stansfield, Jonathan 
  Evans 
 
 RFC Ambrian Ltd (Joint Broker)         [phone] 
 Jonathan Williams 
 
 IFC Advisory Ltd (Financial 
  PR and IR)                            [phone] 
 Tim Metcalfe, Heather Armstrong 
 

Further information can be viewed at www.kefi-minerals.com

Notes to Editor

KEFI Minerals plc

KEFI is the operator of two advanced gold development projects within the highly prospective Arabian-Nubian Shield, with an attributable 1.93Moz (100% of Tulu Kapi's 1.72Moz and 40% of Jibal Qutman's 0.73Moz) gold Mineral Resources (JORC 2012) plus significant resource growth potential. KEFI targets that production at these projects generates cash flows for further exploration and expansion as warranted, recoupment of development costs and, when appropriate, dividends to shareholders.

KEFI Minerals in Ethiopia

The Tulu Kapi gold project in western Ethiopia is being progressed towards development, following a grant of a Mining Licence in April 2015.

The Company has now refined contractual terms for project construction and operation. Estimates include open pit gold production of c. 140,000oz pa for a 7-year period. All-in Sustaining Costs (including operating, sustaining capital and closure but not including leasing and other financing charges) remain c. US$800/oz. Tulu Kapi's Ore Reserve estimate totals 15.4Mt at 2.1g/t gold, containing 1.1Moz.

All aspects of the Tulu Kapi (open pit) gold project have been reported in compliance with the JORC Code (2012) and subjected to reviews by appropriate independent experts.

A Preliminary Economic Assessment has been published that indicates the economic attractiveness of mining the underground deposit adjacent to the Tulu Kapi open pit, after the start-up of the open pit and after positive cash flows have begun to repay project debts. An area of 1,100 square kilometres adjacent to Tulu Kapi has been reserved for exploration by KEFI upon commencement of development, with a view to adding satellite deposits to development and production plans.

KEFI Minerals in the Kingdom of Saudi Arabia

In 2009, KEFI formed G&M in Saudi Arabia with local Saudi partner, Abdul Rahman Saad Al Rashid & Sons Company Limited ("ARTAR"), to explore for gold and associated metals in the Arabian-Nubian Shield. KEFI has a 40% interest in G&M and is the operating partner.

To date, G&M has conducted preliminary regional reconnaissance and has had five exploration licences ("ELs") granted, including Jibal Qutman and the Hawiah EL that contains over 6km strike length of outcropping gossans developed on altered and mineralised rocks with all the hallmarks of a copper-gold-zinc VHMS deposit.

At Jibal Qutman, Mineral Resources are estimated to total 28.4Mt at 0.80g/t gold for 733,045 contained ounces. The shallow oxide portion of this resource is being evaluated as a low capital expenditure heap-leach mine development.

ARTAR, on behalf of G&M, holds over 20 EL applications. ELs are renewable for up to three years and bestow the exclusive right to explore and to obtain a 30-year exploitation (mining) lease within the area.

The Kingdom of Saudi Arabia has announced policies to encourage minerals exploration and development, and KEFI Minerals supports this priority by serving as the technical partner within G&M. ARTAR also serves this government policy as the major partner in G&M, which is one of the early movers in the modern resurgence of the Kingdom's minerals sector.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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June 05, 2018 08:03 ET (12:03 GMT)