Akobo Minerals secures international funding for its Ethiopian gold mine project

09 Nov 2022 21:13 CET

OSLO, 09 November 2022: Akobo Minerals AB (Euronext Oslo - ticker "AKOBO"), the
Scandinavian-based Ethiopian gold exploration and boutique mining company, today
announced with reference to the stock exchange announcement of 10 August 2022,
that it has successfully secured a US$ 8.5 million gold loan facility from US
based Monetary Metals.

The net proceeds from the loan facility, secured through its wholly-owned
subsidiary, Abyssinia Resources Development AS, will ensure that Akobo Minerals
has the financial strength to accelerate the final phase of its mine development
at Segele. Gold production is on-track to commence in early 2023.

Jørgen Evjen, CEO of Akobo Minerals, stated: "This financing agreement with
Monetary Metals gives Akobo Minerals exactly what we were looking for - a loan
facility that will take us through to completion of our mine and the start of
gold production, while at the same time ensuring a minimal dilution of equity
for our shareholders. We can now look forward to mining and production in the
new year with renewed confidence.

"Furthermore, the deal with Monetary Metals shows a strong international
endorsement of our gold exploration and mining project in Ethiopia. We have
greatly enjoyed working with them through the process, which included taking
them on a site visit to Segele to show them our developing mining operation."

Keith Weiner, CEO of Monetary Metals, said: "Jørgen and Akobo's management team
presented us with a professional approach to running the business. Couple that
with a remarkable gold deposit at Segele, and you have a very compelling
economic proposition."

The loan facility is structured as a gold loan, whereby Akobo Minerals borrows
the principal amount of 5.000 ounces of gold, paid out in US$. The loan can be
repaid in gold or the equivalent US$ cash amount using the applicable gold price
at the time of repayment. As the loan is pegged to the gold price and also the
value of the gold in the Segele deposit, it provides a natural hedge to gold
price fluctuations.

The loan facility has a two-year maturity, with an annual interest rate of 22
percent. There are additional provisions regulating early repayment, which also
includes a cash sweep of 50 percent of quarterly free cash flow. It is not
expected that there will be any cash sweep before the second quarter of 2023. As
compensation for arranging the loan facility, Monetary Metals will also be
awarded warrants equal to two percent of Akobo's equity, with a strike price of
NOK 6.9 per share.

SpareBank 1 Markets is acting as financial advisor to Akobo Minerals in relation
to the project financing, while Advokatfirmaet Schjødt is acting as legal
advisor.

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For more information, contact:
Jørgen Evjen, CEOAkobo Minerals
Mob: +4792 80 40 14
Mail: jorgen@akobominerals.com

LinkedIn: www.linkedin.com/company/akobominerals

Twitter: @akobominerals (https://twitter.com/akobominerals)
Web: https://akobominerals.com

About Akobo Minerals
Akobo Minerals is a Scandinavia-based gold exploration and boutique mining
company, currently holding an exploration license covering 182 km2 and with an
ongoing mine development in the Gambela region and Dima Woreda, Ethiopia. The
company has established itself as the leading gold exploration company in
Ethiopia through more than 12 years of on-the-ground activity.
Akobo Minerals holds a 16 km2 mining license and is working to start up mining
of its very promising Segele target. It has an Inferred and Indicated Mineral
Resource yielding a world-class gold grade of 22.7 g/ton, combined with an
estimated all-in sustaining cost (AISC) of 243 USD per ounce. Still open at
depth, the gold mineralized zone continues to expand and will have a positive
impact on future resource estimates and mine-life. The exploration license holds
numerous promising exploration resource-building prospects in both the vicinity
of Segele and in the wider license area.
Akobo Minerals has an excellent relationship with local communities all the way
up to national authorities and it places environment, social and governance
(ESG) at the heart of its activities - as demonstrated by an industry-leading
community program.
Akobo Minerals has built a strong local foothold based upon the principles of
sound ethics, transparency, and communication, and is ready to take on new
opportunities and ventures as they arise. The company is uniquely positioned to
become a major player in the future development of the very promising Ethiopian
mining industry.
Akobo Minerals has a clear strategy aimed at building a portfolio of gold
resources through high-impact exploration and mining, while adhering to a lean
business operation. The company is headquartered in Oslo and is listed on the
Euronext Growth Oslo Exchange under the ticker symbol AKOBO.

Akobo Minerals fully meets and complies with all parts of the JORC code, 2012.
For further information, see https://www.jorc.org/

About Monetary Metals

Monetary Metals® (https://bit.ly/3xohJFZ)is Unlocking the Productivity of GoldT
by offering aYield on Gold, Paid in Gold® (https://bit.ly/3qRzivv)to investors,
andGold Financing, SimplifiedT (https://bit.ly/36llS1v)to gold-using businesses
(mints, miners, refiners, jewelers, etc.). In addition, the company's market
analysis and proprietary charts, including thegold forward
rate (https://bit.ly/36lmeFn), are utilized by gold investors and gold-using
businesses globally. The company's research is widely syndicated on gold,
alternative investing, and mainstream sites.

Contact:

https://monetary-metals.com

Interested members of the press should view ourmedia page (https://monetary
-metals.com/monetary-metals/the-monetary-metals-story/keith-weiner-media/)and
contact us at:press@monetary-metals.com or: Joseph Finora & Associates
atjoe@josephfinora.com.

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