Tulu Kapi Underground Mine PEA & Development Plan

Kefi Gold and Copper PLC

27 August 2026

Market Abuse Regulation (MAR) Disclosure: certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 as it forms part of UK law by virtue of the European Union (Withdrawal) Act 2018, until the release of this announcement.

27 August 2026

KEFI Gold and Copper plc

("KEFI" or the "Company")

Tulu Kapi Underground Mine Updated PEA and Development Plan

KEFI (AIM: KEFI), the gold and copper exploration and development company focussed on the Arabian-Nubian Shield, with projects in the Federal Democratic Republic of Ethiopia and the Kingdom of Saudi Arabia, is pleased to announce that, having launched the development of the Tulu Kapi Open Pit Mine and Processing Facility, it will now commence detailed planning for the development of its second mine, the Tulu Kapi Underground Mine following the results of a positive standalone Preliminary Economic Assessment ("PEA").  The addition of the Tulu Kapi Underground Mine is expected to raise combined steady-state production at Tulu Kapi to c.180,000 oz of gold per annum.

This decision follows the recent updating of the Tulu Kapi Preliminary Economic Assessment based on already-established JORC compliant Mineral Resources beneath the open-pittable Ore Reserves.  The Underground Mine development schedule will target decline development to start as the Open Pit mine is commissioned and starts production in mid-2028.  The activities in its first development year would include the establishment of drilling platforms for both infill drilling and extensional drilling plus trial production. 

At Tulu Kapi, a potentially high-grade, high-value, large system remains open at depth and, as indicated in the Company's announcement on 19 March 2026, will be tested through the reinitiation of exploration activities. The last drill hole at the northern limit of the presently delineated underground mining domain returned 90m at 2.8g/t gold (TKBH_293, from 364m to 454m, downhole width, announced 4 March 2017), highlighting the prospectivity of the region.

The PEA supersedes the indicative underground assessment referred to in the Company's announcement of 18 March 2025, which contemplated recovery of approximately 200,000 oz from c.1.5 Mt.  The increase to 2.38 Mt and c.253,000 oz of contained gold reflects a revision of the cut-off grade.

Highlights of the 2026 Preliminary Economic Assessment of Tulu Kapi Underground Mine are:

·    Application of a cut-off grade of 1.45 g/t based on an assumed gold price of US$2,350/oz;

·    Post-tax NPV 5% of c.US$274.1 million and IRR of 220%, with payback of 9 months, on a standalone incremental basis at a gold price of US$2,350/oz;

·    Preliminary underground mining inventory of 2.38 Mt at 3.30 g/t Au, comprising Indicated Mineral Resources, containing approximately 253,000 oz of gold;

·    The updated schedule reflects a steady-state stoping production target of approximately 500,000 tpa, with the objective of maintaining two developed levels ahead of active stoping; underground ore is incremental and blended with open pit feed based on a 20% increase in plant throughput above nameplate capacity of c.2.0 Mtpa. Associated capital expenditure is factored in;

·    Recovered gold is expected to be c.237,000 oz, at an assumed metallurgical recovery of c.94%, to complement open pit production of c.985,000 oz, for a combined 1.2M oz of gold recovered over 8 years;

·    Pre-production development capital is estimated at US$8.09 million with the maximum cash drawdown required for the Underground Mine estimated to be c.US$10.5 million, the timing of which would be optimised in 2028 as the Company approaches production start-up at Tulu Kapi, and is expected to be funded from Open Pit Mine operating cash flow with no new equity assumed;

·    At assumed gold prices of US$3,000-5,000/oz Au, combined open-pit-plus-underground estimated AISC has been updated to c.US$1,100-1,300/oz, which reflects the impact of Government royalties at higher gold prices.

·    Material depth extension potential beyond the current mining inventory, to be tested by the extensional drilling programme scheduled to commence in 2029.

Harry Anagnostaras-Adams, Executive Chairman of KEFI, commented:

"At Tulu Kapi we are in month six of the development schedule to start production in mid-2028.  We have procured the fabrication of plant at international specialty workshops, and at site we remain focused on community resettlement and mobilisation for construction, which is scheduled to accelerate in the imminent dry season.

"The PEA confirms that we can now add this second mine at Tulu Kapi using existing mineral resources and the existing plant with minor, already considered modifications. It is therefore timely to commence a parallel stream of preparatory work for the second mine at Tulu Kapi, the Tulu Kapi Underground Mine.

"Based on existing mineral resources, this would underpin combined production for 7 to 8 years of 180,000 oz of gold per annum. However, the ore body is open and there is potential for large high-grade zones at depth."

Next Steps and Milestones

·    Engineering Works for the Underground Mine - commencing immediately, targeted for completion in Q4 2027;

·    Infill and extensional drilling from underground platforms - 2029, with an updated Mineral Resource estimate targeted for 2029;

·    Decline development - commencing as the Open Pit Mine is commissioned in mid-2028, with trial production in the first development year; and

·    First stope ore and ramp-up to steady state - 2029.

Cautionary Statement Regarding the Preliminary Economic Assessment

The PEA is preliminary in nature. The preliminary underground mining inventory of 2.38 Mt at 3.30 g/t Au is not an Ore Reserve and has not been demonstrated to be economically viable in accordance with the JORC Code. It includes Mineral Resources classified as Inferred, which are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorised as Ore Reserves. There is no certainty that the results of the PEA will be realised, that the mining inventory will be converted to Ore Reserves, or that the production, cost or cash flow outcomes described in this announcement will be achieved.

Competent Person Statement

KEFI reports in accordance with the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the "JORC Code").

The information in this announcement that relates to exploration results, Mineral Resources and Ore Reserves is based on information compiled by Mr Jeffrey Rayner. He is Head of Exploration at KEFI and a Member of the Australian Institute of Geoscientists ("AIG"). Mr Rayner is a geologist with sufficient relevant experience for Group reporting to qualify as a Competent Person as defined in the JORC Code. Mr Rayner has reviewed and consented to the inclusion of the material in the form and context in which it appears.

Enquiries

KEFI Gold and Copper plc
Harry Anagnostaras-Adams (Executive Chairman)	+357 2225 6161
John Leach (Finance Director)
SP Angel Corporate Finance LLP (Nominated Adviser)	+44 (0) 20 3470 0470
Caroline Rowe / Adam Cowl
Stifel Nicolaus Europe Limited (Financial Adviser and Joint Broker) Ashton Clanfield / Varun Talwar	+44 (0) 20 7710 7600
Tavira Financial Limited (Joint Broker)	+44 (0) 20 7100 5100
Oliver Stansfield / Jonathan Evans
IFC Advisory Ltd (Financial PR and IR)	+44 (0) 20 3934 6632
Tim Metcalfe / Florence Staton

Further information can be viewed at https://www.kefi-goldandcopper.com

Glossary

Term	Definition
AISC	All-in Sustaining Cost, a measure of the total cost of sustaining gold production, generally expressed on a per ounce basis
Au	Gold
Cut-off grade	The minimum grade of mineralised material used to determine whether material is potentially economic for inclusion in a mining inventory or Mineral Resource
Decline	An inclined underground excavation providing access from surface to the underground mine workings
Extensional drilling	Drilling undertaken to test for extensions to known mineralisation beyond its currently defined limits
g/t	Grams per tonne, a unit used to express the concentration or grade of gold in mineralised material
Infill drilling	Drilling undertaken within a known mineralised area to increase geological confidence and improve the definition of the mineralisation
JORC Code	The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, which sets minimum standards for public reporting of such information
koz	Thousand ounces
Mineral Resource	A concentration or occurrence of solid material of economic interest in or on the Earth's crust in such form, grade or quality and quantity that there are reasonable prospects for eventual economic extraction
Mt	Million tonnes
Mtpa	Million tonnes per annum
Open Pit Mine	A mine in which mineralised material is extracted from an excavation open to the surface
oz	Troy ounces
Preliminary Economic Assessment or PEA	A preliminary technical and economic assessment of the potential development of a mineral project
Stoping	The process of extracting mineralised material from an underground mine
tpa	Tonnes per annum
Underground mining inventory	The quantity and grade of mineralised material included in the preliminary underground mine plan and production schedule
Indicated Mineral Resource	That part of a Mineral Resource for which quantity, grade, densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of Modifying Factors in sufficient detail to support mine planning and evaluation of economic viability
Inferred Mineral Resource	That part of a Mineral Resource for which quantity and grade are estimated on the basis of limited geological evidence and sampling; confidence is lower than that applying to an Indicated Mineral Resource
IRR	Internal rate of return, the discount rate at which the net present value of a project's cash flows is zero
NPV	Net present value, the value of a project's future cash flows discounted to the present at a stated discount rate
Ore Reserve	The economically mineable part of a Measured and/or Indicated Mineral Resource, demonstrated by at least a Pre-Feasibility Study

Forward-Looking Statements

This announcement contains forward-looking statements, including in relation to production, capital and operating costs, cash flows, timing and economic outcomes. Such statements are based on assumptions and estimates subject to significant business, economic, technical, operational, regulatory and political risks and uncertainties, and actual results may differ materially. Forward-looking statements speak only as at the date of this announcement and, save as required by applicable law and regulation, the Company undertakes no obligation to update them.

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