KEFI Gold and Copper plc

Good afternoon, ladies and gentlemen, and welcome to the Kefi Gold and Copper PLC Investor Update. Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged and can be submitted at any time via the Q&A tab that's just situated on the right-hand corner of your screen. Please just simply type in your questions at any time and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, all questions will be reviewed with responses published on the InvestorMeet company platform where it is appropriate to do so. Before we begin, I would like to submit the following poll, and if you could give that your kind attention, I'm sure the company would be most grateful. And I'd now like to hand you over to Executive Chairman, Harry Anagnostaris-Adams. Good afternoon, sir.

Good afternoon. Thank you, everyone, for joining. The format today is that myself and my two colleagues will make a brief update presentation And then we'll open the floor to questions. There are quite a few that have come through already, and we'll answer those. And any that come through subsequently, we'll try to get through as well. And as the introducer said, if we don't get through questions that we can answer during the webinar, post answers subsequently on the website. Without any further ado, the photo on the screen is that of the Tulikapi deposit. That's the hill. The deposit is inside. Our exploration camp is on that hill. When we arrived in Tulikapi as a company eight years ago, a very, very quiet, serene district. It still is. It always has been. But the country itself has been through some turmoil that I'm sure you read the media reports about last year when it peaked. It went from in travel advisory or travel rating language, It went from an almost completely green country, if you like low risk, to a red country last year when there was internal warfare in the north of the country, not to the copy, but nevertheless in the country. And now coincidentally with this webinar over the last few days, I gather a lot of advisers and some important ones have turned much of the country back green again, including this area. So, you know, the country has settled down, which is why a couple of months ago, the financing syndicate for the Tulikapi project resolved to get the closing procedures back in motion again, having allowed the country to settle down before mobilizing hundreds of people and hundreds of millions of dollars. That's a conventional disclaimer about forward-looking statements. Now, the reason I've put up this introduction of the directors and then of the senior executives is because on this occasion I'm introducing to the webinar a couple of senior executives that we've really formed the trio, if you like, on the front line, the three of us. And I apologise if you can't see us tonight, but we're all in different countries and I am the culprit of being in a location, in an outback location where the uploading of internet signal is very poor and it would destroy the effectiveness of this webinar if we were using video communication. So I've had to dial in via my phone whilst the others are on the internet. So I hope it all works okay. And I apologize that the video's not working as we speak. Anyhow, going back to the board of directors, there's two executives and two non-executive directors, myself and the finance director, the executives. The two non-executives, one Mark Tyler, former head of resource lending in one of the larger African banks. So quite at the forefront of banking for this sector and project financing for mining specifically. And Rich Robinson, who ran large organisations in the gold space, including the Goldfields Gold Group in South Africa. There are a couple of other non-execs who retired or resigned over the last year. And that created space for directors we expect to appoint as non-executives as some large institutional shareholders come onto the register. And we thought it was the right thing to leave those spaces vacant, if you like, to allow those parties to have a say in who gets nominated and appointed so that everyone feels duly represented. The executives, the senior executives in the company are myself and the finance director plus three. Eddie, who will speak shortly about Ethiopia. I'll let him introduce himself, but for good order, we've presented his summary CV here. And Brian, who will speak about Saudi Arabia. The two of them oversee those country activities from our side specifically and have some wider roles in the company, but that's 95% of their time is overseeing those two country activities from our viewpoint. And Norman who oversees and mentors the project development, project construction side. Norman's a world renowned plant overseer really, construction overseer particularly for the heavy industry infrastructure sectors, and we're fortunate to have him to mentor and oversee that side of things for the company. We'll keep this moving. I'll hand to Eddie now. Eddie, if you don't mind just introducing a little bit about who you are and your background, but then just giving a bit of a snapshot of how you see things in Ethiopia. As summarised in the slide, anything you care to add, and if then you wouldn't mind handing it to Brian to do likewise for Saudi Arabia. Thanks, Eddie.

Yeah, thanks, Harry. Well, as you've heard, my name is Eddie Solbrand. I started off in the mining industry in 1986. where I was engaged in optimizing drag lines on a coal mine in the Bowen Basin in Northern Queensland in Australia. Since then, I started a successful consultancy that was largely focused on mining and have worked for large and small mining companies all around the world. I've also been a company director in places like Australia, New Zealand, South Africa, UK and Thailand. And I joined Kefi as an advisor several years ago now, 2018. And I've come on since the beginning of this year full time to assist Harry and to work with Brian on moving both projects forward. So perhaps if I start chronologically, the point in the middle of the PowerPoint in front of you was the June meeting of the Tula Kapi Finance Synagogue in Cape Town. This was a very, very important meeting because all financial stakeholders were present, either in the room, and there were about 25 or so of them in the room, and another eight or 12 people online. It was also significant insofar as state minister for Mining Million was present with his policy advisor, Dr. Eob, and it gave the minister an opportunity to meet and listen to the various syndicate members, listen to their concerns, but also to see how they were supporting the project. The minister also listened carefully, reaffirmed Ethiopia's commitment to the mining industry, as one of their pillars of economic growth. It was one of those rare opportunities where you get ministers, contractors, financiers and other advisors to be in a room together and have wide-ranging conversations around the funding requirements of the project, budgets, inflation and conditions precedent. And as a sign of the commitment, a few weeks later, most members of this group that were required to sign the umbrella agreement and some important conditions precedent came out of the meeting, none the least of which was the need for security, and I'll touch on that a little bit later, and that both lending banks have the same rights and protections within Ethiopia. Now this latter condition precedent was quite an important one and very quickly the Prime Ministry itself got behind and supported this and has approved it. The documentation for this is now in its final stages of completion and that paves the way for project finance. A large hurdle there was cleared. The fact that it was completed so very quickly um shows support for the ethiopian government for this project and it certainly would not have been possible without support from the prime ministry support from the national bank of ethiopia support from ministry of finance and none the least the support from the ministry of mining um which leads me to talk about the cost endorsement and the ministry of mines Now, there's a process that we follow that was laid down by the National Bank of Ethiopia, whereby any costs incurred on behalf of Tulu Kapi needs to be audited and endorsed by the Ministry of Mine. Now, for various reasons, this first run has taken quite some time to complete. but the Ministry of Mines auditors have confirmed that the equivalent of 80 million US dollars has been spent on Tulacapi up until the end of 2020. Now, this forms part of our equity contribution, and this equity contribution has been endorsed by the Ministry of Mines and registered with the NBE. This is an ongoing process. We'll be going through this several times now, so we're going to get good at it mutually. But we're going through this audit endorsement process again for a further $5 million up until the end of 2021. Project launch. We've been working very closely with Constellis, a global security consultancy, and another global consultancy called SLR who specialize in ESG. to ensure that our plans for proceeding in accordance with the project timetable are sound, robust, and to make sure that we stay on the right track and give advice when we need it. Constellis, in their capacity as security advisor, regularly review our security systems and processes and have made recommendations on how to de-risk activities in and around the mine licence area. as well as in respect of logistics from the port to the mine licence area. Now, as everybody's aware, there have been quite some security challenges in Ethiopia in the last 12 months. And as Harry mentioned a little earlier on, the country is returning to normality. There are still some difficult pockets and as far as we need to work in or travel through those areas, we've designed very robust fit for purpose policies, processes and procedures which we've road tested in order to navigate our way through those areas safely. As a further commitment to our safety there, we've asked Constellas to constantly audit not only the systems, the processes and procedures we have in place, but also our compliance to them, and also to ensure that these are live documents, that they're constantly being improved and updated as we learn. As far as SLR's role in this project, it's the, as I mentioned earlier, the ESG advisor, but they'll be also leading the relocation and compensation part of resettlement part of our work, which is not insubstantial. One of their first steps, other than looking through our plans and working with us on planning this, has been to lead and conduct a series of relocation resettlement workshops in the middle of September with Tula Kabi staff. We've got various regional and local government representatives joining us in those, and as well as other stakeholders such as the Roads Authority and the Electricity company, EAP. As far as EAP goes, we're working very closely with EAP around this as well. They're supplying the electricity to the site from a town called Gymbie and we're mutually resolving overlapping problems that we have, any potential obstacles and planning to get electricity up and running according to schedule. so that all of us meet our respective milestones. In short, I'd say we've engaged very effectively with all of these stakeholders and are collaborating with them daily. We have one of our key people leading relationships up there at the moment from South Africa, who's up in Gymbie in our regional office, working with the ZERN administrators on the very matter of relocation. um and further on project we've now received updated numbers from our two main contractors and they're a significant portion of our costs going forward we've started evaluating these documents in detail and they are quite comprehensive there's a lot of technical detail in them which we're combing through and we hope to have those reviews sort of finalized in the coming weeks So in summary, I can say that the TKGM team in Ethiopia is moving ahead persistently, systematically, consistently with a safety-focused can-do attitude. So having said that, I'll pass over to Brian to talk about SOTI. Thank you very much.