Katoro Gold : Interim Results 9 September 2021

Katoro Gold plc

(Incorporated in England and Wales) (Registration Number: 9306219 Share code on the AIM: KAT

ISIN: GB00BSNBL022 ("Katoro" or "the Company")

Unaudited Interim results for the six months ended 30 June 2021

Dated 10 September 2021

Katoro Gold plc ('Katoro' or the 'Company') (AIM: KAT), the AIM listed gold and nickel exploration and development company, is pleased to announce its unaudited results for the six months ended 30 June 2021. The interim results will also shortly be available on the Company's website: https://www.katorogold.com/

Overview

• Drilling results from the RAB drill programme carried out at the Haneti project, confirmed the results from previous exploration work done, which was the primary objective. The latest results provided the confirmation desired, therefore subsequently refined planning and budgeting of the diamond drilling programme as well as the selection and engagement process for a suitable drilling contractor has been submitted for review and approval.
• Raised £960,000 (gross) through a placing and subscription of 48,000,000 new ordinary shares of 1.00p each in the capital of the Company at 2.00p per share.
• Katoro is currently in the processes of compiling a comprehensive funding package in accordance with the Blyvoor Joint Venture ("the JV") that will allow the construction, commissioning and operation of a mining and processing facility capable of processing 500,000 tonnes of tailings material per month, at an average Life of Mine ("LoM") gold grade of 0.29 g/t and confirmed recovery of 51%, before incorporating recovery gains from the latest metallurgical optimization tests.
• Furthermore, the JV's total project resource size of 1,410,000 oz gold consist of 500,000 oz gold in the measured category (35.5%), 368,000 oz gold in the indicated category (26.1%), and 542,000 oz gold in the inferred category (38.4%).
• Post period end:

1. A period of limited political unrest in South Africa temporarily delayed the funding process when some of the short-listed parties requested additional time to re-assess the country risk profile as a result of the unrest. However, the Company is pleased to announce that discussions with these potential funders have since resumed and the joint venture partners hope to conclude a final funding arrangement for Blyvoor during the latter part of 2021.

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

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For further information please visit www.katorogold.comor contact:

Chairman's Statement

Introduction

Despite the ongoing challenges around the COVID-19 pandemic, the Company has continued to make significant progress across its project portfolio. As Chairman I would like to thank Katoro's Directors and our management team for their continued perseverance and hard work, and in particular our shareholders, for their patience during this difficult time. We are looking forward to accelerating on all fronts, despite ongoing and varying lockdown conditions in the second half of 2021.

Company successfully completed a maiden Rotary Air Blast Drill ("RAB") programme targeting the discovery of nickel and platinum group metals at the Haneti Joint Venture Project in Tanzania ('Haneti JV Project'), despite substantial challenges presented by COVID-19 and the extreme rainy conditions. Furthermore, the Company announced the results of a comprehensive Competent Person's Report ("CPR") on the results and findings technical and financial work that was conducted on the Blyvoor Gold Tailings Project, South Africa.

Haneti Nickel PGM Project

The Haneti JV Project is a large-scale Polymetallic project covering a vast prospective area in central Tanzania, where the principal target zone is an 80km long ultra-mafic belt with grades from surface sampling of up to 13.6% nickel and 2.33g/t combined Platinum Group Metals (PGM's). Katoro holds a 65% ownership interest in Haneti with 35% held by Power Metal Resources plc (LON:POW).

During the reporting period, Katoro completed a 50 hole, 1,965 metres, maiden RAB drill programme at Mihanza Hill and Mwaka Hill and collected 1,965 samples. Following analysis of the assay results, an earlier decision to progress to a diamond core drilling programme in order to test for nickel sulphide mineralisation at depth, was confirmed. Subsequent refined planning and budgeting of the diamond drilling programme, as well as the selection and engagement process for a suitable drilling contractor has been submitted for review and approval.

Blyvoor Joint Venture Project

In early 2020 the Company entered into a strategic gold production opportunity in South Africa, focused on the reprocessing of an existing Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC) compliant 1.34-million-ounce gold tailings resource. Katoro entered into a binding conditional agreement to form a 50/50 incorporated joint venture to advance the project to near term production.

During the reporting period, Katoro and its joint venture partners announced the results of a comprehensive CPR on the gold resource, based on the results and findings of advanced technical and financial work conducted on the Project.

The CPR comprised an advanced Pre-Feasibility level study, a South African Code for Reporting Exploration Results, Mineral Resources and Ore Reserves(SAMREC) compliant reserve and resource statement, and a South African Mineral Asset Valuation ("SAMVAL") report for Blyvoor TSF 1, 6 and 7 and Doornfontein TSF 1, 2 and 3 gold tailings storage facilities.

The findings of the CPR were subjected to the results of confirmatory, optimization metallurgical test work. Following receipt of all the outstanding metallurgical test results, the findings of the CPR was validated, and the Company could proceed to further engage with prospective funders to a juncture where several parties recently submitted initial funding offers / proposals that were within the broad funding requirements and expectations of the Company.

Post reporting period, the Company has continued to make significant progress on all aspects of the business. A period of limited political unrest in South Africa temporarily delayed the funding process when some of the short-listed parties requested additional time to re-assess the country risk profile as a result of the unrest. However, the Company is pleased to announce that discussions with these potential funders have since resumed and the joint venture partners hope to conclude a final funding arrangement for Blyvoor during the latter part of 2021. Finalization of future Engineering, Procurement and Construction (EPC), mining contractor and operator appointment will follow on conclusion of the funding.

In conclusion, I am optimistic about Katoro and its prospects and look forward to a productive and exciting second half of FY 2021.

Louis Coetzee

Executive Chairman

Unaudited condensed consolidated interim Statement of Financial Position

As at 30 June 2021

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