Name of the Project
Tulu Kapi gold project.

Location
Ethiopia.

Client
Kefi Minerals.

Project Description
Tulu Kapi has a current mineral resource estimated at 20.2-million tonnes grading at 2.65 g/t of gold, and a reserve estimate of 15.4-million tonnes at 2.12 g/t of gold.

Kefi has reported progress on the preferred development and financing plan for the project as refined since the 2015 definitive feasibility study (DFS). The preferred development plan envisages gold production of 980 000 oz over nine years at an average of 115 000 oz/y, excluding the start-up year and the closure year.

The comparative 2015 DFS estimates were 960 000 oz over 13 years at a steady-state average of 95 000 oz/y for the core production period.

The Tulu Kapi development plan is based on a conventional openpit mining operation and a 1.5-million-tonne-a-year to 1.7-million-tonne-a-year carbon-in-leach (CIL) processing plant, with gold recoveries averaging 93.3%. Using semiselective mining techniques, it is planned to process ore grading higher than 0.5 g/t gold.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
The preferred financing plan will result in an internal rate of return of 50% and a projected net present value at the start of production at the end of 2017 of $197-million, at a discount rate of 8%.

Value
The estimated funding requirement, including contingencies and provisions, is between $150-million and $160-million, with a $20-million committed equity investment from the government of Ethiopia as it increases its ownership in the project to 30%.

Duration
Commissioning of the processing plant is expected to start in the fourth quarter of 2016, with gold production expected to start in 2017.

Latest Developments
Kefi Minerals has conditionally raised £5.62-million before expenses through a share placement, by issuing ten-million shares to existing and new shareholders, valued at £600 000; 7.13-million subscription shares to directors and employees, valued at £400 000; and subscribing to 82-million Lanstead shares to raise £4.62-million.

Proceeds will be used to fund the company's expenditure for 2017, including finalisation of financing arrangements and the start of development at its flagship Tulu Kapi gold project, as well as additional exploration work in Ethiopia and Saudi Arabia.

Of the gross proceeds of the Lanstead subscription, £693 000 will be retained by the company with the balance being pledged by the company pursuant to the sharing agreement.

Key Contracts and Suppliers
Ausdrill (mining contractor) and Lycopodium (EPC contractor).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Kefi Minerals (Ethiopia), tel +251 11647 9976/73 or fax +251 11647 9975.
Ausdrill, tel +61 8 9311 5666 or email info@ausdrill.com.au.
Lycopodium, tel +61 8 6210 5222 or fax +61 8 6210 5201.