Name of the Project
Tulu Kapi gold project.

Location
The project is located in western Ethiopia.

Project Owner/s
KEFI Minerals will own 80% of the exploration and holding company for Ethiopia, KME, which, in turn, will own 56% of Tulu Kapi Gold Mines Share Company (TKGM), thus bestowing KEFI with a 45% beneficial interest in the project.

Project Description
Tulu Kapi has an ore reserve estimate of 15.4-million tonnes at 2.1 g/t gold for 1.1-million ounces of gold.

Openpit gold production is estimated at 140 000 oz/y over a seven-year mine life. Total life-of-mine production is estimated at 980 000 oz.

The conventional openpit mining operation will include a carbon-in-leach processing plant. The mine will be connected to Ethiopia’s electricity grid through a new 47-km-long, 132 kV dedicated power line relatively close to the country’s major hydropower-generation source. An emergency diesel power plant will also be installed to provide emergency backup power for critical process equipment in the event of a grid power failure.

A preliminary economic assessment indicates the economic attractiveness of mining the underground deposit adjacent to the Tulu Kapi openpit after the start-up of the openpit and after positive cashflows have begun to repay project debts.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a net present value, at an 8% discount rate, of $207-million at an assumed long-term gold price of $1 300.

The openpit has an internal rate of return of 49%.

Capital Expenditure
The project is estimated at $260-million.

Planned Start/End Date
The start of full gold production at Tulu Kapi is expected in 2022.

Latest Developments
KEFI Minerals has conditionally raised £3.7-million, before expenses, through the placing of 569-million new ordinary shares in the capital of the company to existing and new shareholders.

Investors in the placing include UK investor RAB Capital, which will hold 236-million shares, representing 12.6% of the enlarged ordinary share capital of the company following the placing.

RAB Capital is considered a long-term shareholder and has been granted a right to appoint a director to the board of the company for as long as it holds 10% or more of KEFI's shares.

The placing proceeds, net of expenses, are expected to be about £3.5-million and will provide the company with the funds to allow for the closing of about $260-million in project financing for the company's Tulu Kapi project, in Ethiopia.

This includes the expected initial closing of the project level equity in the second quarter of this year, along with that of the identified debt funding in October.

Key Contracts and Suppliers
Ausdrill (mine services).

Contact Details for Project Information
KEFI Minerals, tel +90 232 381 9431, fax +90 232 381 9071 or email info@kefi-minerals.com.