Name of the Project
Twin Hills gold project.

Location
Namibia’s prospective Damara sedimentary mineral belt, located between the towns of Omaruru and Karibib, in Namibia’s Erongo region.

Project Owner/s
Osino Resources Corp.

Project Description
A preliminary economic assessment (PEA) completed has proposed a low-risk, technically simple openpit  mine using contract mining and supplying a conventional carbon-in-leach metallurgical plant processing 3.5-million tonnes a year of mineralised material. Osino is currently engaged in delivering a prefeasibility study (PFS), which is aimed at demonstrating a significantly larger project scope, likely at about 4.5-million tonnes a year for peak gold production of about 150 000 oz/y.

The PEA is based on the previously reported indicated mineral resources of 14-million tonnes grading 0.98 g/t gold, and inferred resources of 46.2-million tonnes grading 1.02 g/t gold.

The project is expected to produce and estimated 1.39-million ounces of gold over a 15-year mine life.

Potential Job Creation
Twin Hills will have a similar project scope to B2Gold’s Otjikoto openpit gold mine, in Namibia. Based on B2Gold’s experience at Otjikoto, Osino estimates that Twin Hills will create between 500 and 1000 direct and indirect long-term jobs.

The project will also have very significant secondary benefits through procurement of goods and services, training, local economic development and taxes paid.

Net Present Value/Internal Rate of Return
The project has a pretax net present value (NPV), at a 5% discount rate, of $579-million and an internal rate of return (IRR) of 45% at a gold price of $1 700/oz, with a payback of 2.2 years.

At a gold price of $1 850/oz, the project has a pretax NPV, at a 5% discount rate, of $724-million and an IRR of 53%, with a payback of 1.9 years.

Capital Expenditure
Preproduction capital is estimated at $176-million, plus $26-million contingency. It is likely that the much larger PFS project scope will result in a significant increase in capital expenditure.

Planned Start/End Date
Preconstruction early works are expected to start late in the second half of 2022, subject to project financing, with the start of project construction expected to start in 2023. Initial gold production is targeted for 2025.

Latest Developments
Osino reported in December 2021 that it will continue to fast-track the development of the Twin Hills gold project.

The company is working towards publishing a new technical report with an updated mineral resource estimate in the second quarter of 2022 intended as a prefeasibility study (PFS), which is aiming to reflect improved project economics resulting from project optimisation and a larger mineral resource, as well as a substantial increase in processing plant capacity.

The next intended PFS technical report is intended to be followed by a definitive, or bankable feasibility study (BFS) and advancement of the constituent specialist studies to bankable level of detail by the end of the third quarter of 2022. Based on that timeline, and subject to a positive BFS, and project financing and permitting being in place by the end of the third quarter of 2022, early works could start towards the end of 2022.

Key Contracts, Suppliers and Consultants
Lycopodium Minerals Africa (PEA).

Contact Details for Project Information
Osino Resources manager investor relations Julia Becker, tel +1 604 785 0850 or email jbecker@osinoresources.com.