KEFI, the gold and copper exploration and development company concentrating on the Arabian-Nubian Shield, with a portfolio of projects in Ethiopia and Saudi Arabia, is excited to share the latest update on its Tulu Kapi Gold Project (“Tulu Kapi” or the “Project”) in Ethiopia.

The Company is excited to announce that it has received preliminary approval from Project co-lender African Finance Corporation Limited (“AFC”). This follows additional site visits by the co-lenders’ security consultants in July. As previously reported, the other co-lender, Eastern and Southern African Trade and Development Bank Ltd (“TDB”), has already granted final approval, ratified by its shareholder-board in February 2024. Final approval from AFC is anticipated within the next month, pending adherence to the co-lender’s internal processes.

As previously reported, the company is advancing with the Early Works program, which commenced in May 2024. This initiative is intended to facilitate the signing of binding definitive agreements with the funding syndicate and secure the initial funds by October 2024, allowing the Major Works to begin shortly thereafter.

Last week, KEFI, in conjunction with co-lenders and local investors, held discussions with multiple Ethiopian Federal Government Ministers and regional leaders. During these discussions, all parties expressed their gratitude to the Ethiopian Government for its comprehensive support of the Project launch. This support includes enhanced security measures, extensive regulatory reforms, and formal recognition of pre-development expenditures as crucial for assessing and crediting foreign direct investment (for tax benefits and capital-ratio compliance). The government has also eased exchange control restrictions for international finance and operating obligations and allowed higher debt-equity ratios for this capital-intensive industry. These measures are applied across the entire mining sector, highlighting its strategic national, regional, and local importance. As a result, several mining projects are now advancing their site preparations, including those at Tulu Kapi, which have begun initial field and community-focused activities.

Harry Anagnostaras-Adams, Executive Chairman of KEFI, stated: “The Government's efforts to support the mining industry are starting to yield results on the ground. At Tulu Kapi, we are already advancing with international engineering tasks and local community consultations. Visible physical activities at the site will soon follow.

“Ethiopian gold projects, which have recently initiated their launch preparations, are anticipated to boost gold exports to $1.3 billion annually within three years, overtaking coffee as Ethiopia’s leading export sector. These mining sector growth initiatives are part of broader reforms aimed at revitalizing Ethiopia's historically high growth rates and reforming its financial system and economy.”