Mr. Aurelien Bonneviot reports

ROBEX REPORTS A FEASIBILITY STUDY FOR KINIERO WITH SIGNIFICANTLY IMPROVED ECONOMICS VS PFS

Robex Resources Inc. has released the results of the feasibility study for the Kiniero gold project in Conakry, Guinea. The FS was prepared in accordance with Canadian Securities Administrators' National Instrument 43-101 (Standards of Disclosure for Mineral projects).

The independent NI 43-101 technical report supporting the Kiniero gold project feasibility study will be published on SEDAR within the next 45 days.

Highlights:

• Improved economics: 26-per-cent increase in pretax net present value 5 per cent to $251-million (U.S.) and internal return rate of 42 per cent at a base-case gold price of $1,650 (U.S.) per ounce while posttax NPV 5 per cent stands at $170-million (U.S.) and IRR at 31 per cent;
• Increased life of mine (LoM): mineral reserves increased by 165,000 ounces or 21 per cent to 968 koz from the prefeasibility study (PFS), increasing LoM to 9.5 years (46 per cent up compared with PFS);
• Lower costs: LoM all-in sustaining costs (AISC) below initial target of $1,000 (U.S.) per oz, at $980 (U.S.) per oz, improving from PFS ($1,035 (U.S.) per oz);
• Lower strip ratio: LoM strip ratio of 2.8 to 1 from 4.4 to 1 in the PFS;
• Significant potential beyond mineral reserve life in FS: indicated mineral resources (inclusive of mineral reserves) at 1,481 koz of 1.07 grams per tonne, along with inferred mineral resources of 1,090 koz of 1.19 g/t, effective Nov. 12, 2022.

Update on construction activities

Construction of the project started in fourth quarter 2022, with $27-million (U.S.) expected to be spent by June 30, 2023, of the initial capital costs of $160-million (U.S.) (or 17 per cent of total):

• Contractors mobilized on site, and detailed engineering is continuing;
• In line with the previously disclosed mandate with Taurus Mining Finance Fund No. 2 LP, it is currently discussing the terms of the project finance facility and providing information needed for due diligence; please see the press releases dated Jan. 24, 2023, and March 21, 2023, available on SEDAR for further details;
• Resource expansion program continuing, the last drill hole in the geological database supporting the FS dates from Aug. 17, 2022, with 24,443 metres of drilling completed since then;
• Exploration is under way at its Mankan target in the north portion of the property for the first time since the project was owned by Semafo Inc.

Aurelien Bonneviot, chief executive officer of Robex, commented: "The completion of the FS for the Kiniero gold project is a major milestone in our journey towards project development as the FS optimizations and updated mineral resource estimate result in a stronger project with enhanced economics.

"Since the announcement of the Kiniero acquisition on April 20, 2022, we have improved the asset to reach a now-projected 9.5-year LoM. Kiniero is now expected to average above 100 koz per annum over the first seven years, and we will continue to drill to hopefully increase the average grade, the production capacity and the LoM.

"This FS incorporates the actual pricing and tenders we have been collecting for the construction, giving us confidence in the upfront [capital expenditure] estimates. The majority of the parameters are at the detailed design stage, the construction crew has mobilized on site and we are on track for the first gold pour in mid-2024.

"While the FS includes a 21-per-cent increase in mineral reserves, this represents only a fraction of the total mineral resource, and we are targeting additional conversions of mineral resources to mineral reserves in the coming years. With more than one million oz of inferred mineral resources within 10 kilometres of the processing plant, we see potential for significant LoM extensions and rapid growth at the asset in a short time frame.

"With these excellent results, Robex will focus its efforts on the previously announced debt package with Taurus Mining Finance Fund No. 2 LP."

Feasibility study highlights

The ore mined from the Kiniero deposit is expected to be processed through a standard 3.0-million-tonne capacity carbon-in-leach/gravity (CIL) plant. The mine is expected to be an open pit using conventional mining methods.

Feasibility study details

Overview

The project is located in eastern Guinea in the Kouroussa prefecture. It is situated approximately 27 km southeast of the town of Kouroussa and at a distance of 546 km from Conakry, the capital of Guinea.

The Kiniero gold project is a 470.48-square-kilometre exploitation and exploration land package that consists of the adjoining Kiniero exploitation licence area and Mansounia exploitation licence area. The Kiniero project is one of the largest gold licences in Guinea.

Kiniero gold deposits, located in the prolific gold-producing Siguiri basin, were discovered in the early 1900s and were subsequently explored until 2002 when gold production began under the ownership of Semafo and its subsidiary Semafo Guinee SA.

The historical Kiniero gold mine comprised an open-pit mining operation that produced 418,000 ounces of gold during its 12-year operational history. The mine was placed on care and maintenance in early 2014.

Robex is now restarting the Kiniero gold mine as a long-life open-pit mining operation based on constructing a new three-million-tonne-per-year process plant.

Given the strong exploration potential, a combination of near plant brownfield infill and known extension, as well as greenfield large-scale targets, Robex is targeting: (i) the discovery of mineral resources across the Kiniero exploration permit area over the next few years; and (ii) the conversion of mineral resources into mineral reserves.

An extensive drilling program is continuing on the numerous identified deposits to increase the resource base and extend the LoM at Kiniero predominantly through extending the drilling density at depth and along known strike extensions.

Since the beginning of the construction, Robex has been committed to involve village communities in the mine's development, as well as explore sustainable power energy source to reduce and limit its environmental footprint.

Geology

The property is located within the Kiniero gold district of the Siguiri basin, which is situated in northeastern Guinea, extending into central Mali. Geologically, the Siguiri basin comprises a portion of the West Africa Birimian greenstone belt, including intrusive volcanics (ultramafics to intermediate) and sediments largely deposited through the period 2.13 billion years to 2.07 billion years.

The volcanic and sedimentary lithologies comprise fine-grained sedimentary rocks (shales and siltstones), with some intercalated volcanic rocks. Sandstone-greywacke tectonic corridors have been preferentially altered and locally silicified, supporting extensive brittle fracture networks. These in turn have provided host environments for ascending mineralized hydrothermal fluids.

The deposits located on the property are associated with the Proterozoic Birimian orogeny of West Africa. Most gold mineralization in the West African craton is shear zone hosted and structurally controlled, with lithology having a minor, local influence. The mineralization developed in the Kiniero gold district conforms to this general style of mineralization.

A total of 47 gold anomalies have been identified on the property, of which five clusters of deposits (Sabali, Mansounia, SGA, Jean and Balan) have been explored sufficiently to enable the estimation of mineral resources.

Mineral reserves and resources

The FS is based on the updated mineral resources estimate, which has a resource-to-reserve conversion ratio for the in situ estimate of 68 per cent. The mineral resource estimate includes the mineral reserves.

Exploration

The Kiniero project's 2023 planned exploration program includes a combination of brown and greenfield exploration activities. Greenfield activities comprise the continuation of the licence-wide soil geochemistry (BLEG) program, focused on completing the Northern Block area of the Kiniero licence. In addition, a maiden reverse circulation drilling campaign in the Northern Block is planned to target the Mankan, Heriko and Filon Bleu deposits. The drilling will build on the exploration data already generated by SMG and historical drilling completed by Semafo to further delineate the deposits.

Brownfield exploration will consist of trenching and drilling at and around the near-mine deposits. Drilling will be a combination of diamond and RC drilling, and the purpose is twofold, namely resource addition and resource to reserve conversion. Drilling will focus on four deposits: SGA, NEGD, Sabali South and Mansounia Central. SGA, NEGD and Sabali South will comprise resource addition drilling by strike and depth extension, as well as reserve conversion drilling. A grid drilling program at Mansounia Central is designed to further delineate and upgrade the resource.

A planned total of approximately 5,000 m of diamond and 65,000 m of RC drilling will be completed at the various deposits. However, the drilling program will be an iterative process based on the continuing results and the impact thereof. As a result, the plan may be changed and adapted to any changes in strategy.

Mining operations

Mining at Kiniero is expected to be undertaken by conventional contractor-operated truck-and-excavator open-pit mining in the SGA, Jean, SGD, Sabali South, and Sabali North and Central pits using Komatsu PC1250-sized excavators mining on five-metre benches and 2.5-metre flitches loading 55-tonne Volvo A60H haul trucks.

Mining in upper oxide layers will be free-dig with drill and blast required in areas that mine through the transitional material into fresh rock. The free-dig nature of the oxide and transitional zones has been confirmed by extensive previous mining at the site. Drill and blast will be required for approximately 1 per cent of the oxide material, 40 per cent of the laterite, 60 per cent of the transitional and 100 per cent of the fresh.

Ore will be categorized by material and grade through in-pit grade control and will be hauled to the mine ore pad (MOP). Waste will be hauled to the nearest available waste dump by the Volvo A60H fleet.

Historic mining in Jean, SGA and SGD has resulted in pit lakes that require dewatering and cleanup before mining.

Processing operations

Soutex Inc. was commissioned by Robex to undertake the detailed design of the new processing plant. The process plant design is based on a metallurgical flow sheet developed for flexible operation between the various types of ore while maintaining the throughput and gold recovery. Ore will be processed on site, at a centrally located processing facility near the mining areas. The gold will be recovered in a beneficiation plant that has been designed to process a blend of oxide, laterite, transition and fresh ores from various ore deposits.

Oxide and upper transition ores (soft) require less comminution energy than laterite and fresh ore (hard). However, they present other challenges in handling due to the sticky nature of oxide ore types, justifying dedicated crushing devices for soft and hard ores. The process plant design has been based on a nominal capacity of 3.0 million tonnes per year. The flow sheet includes crushing, semi-autogenous-grinding (SAG) milling, gravity concentration, thickening, CIL leaching, Zadra elution, gold electrowinning, and carbon regeneration and SO2 detoxification, which are well proved in the industry.

Infrastructure

The project benefits from good infrastructure in close proximity to the site and a limited relocation requirement as there are no villages on the site. Existing mining infrastructure will be refurbished with minimal additional infrastructure required.

In addition, early works have focused on advancing the site infrastructure to facilitate a smooth transition into construction. Site roads to the mine from the national road network, mine perimeter fence and the earthworks for the construction camp have already been completed as part of the early works, incurred during the first six months of 2023.

New infrastructure will be added to support mining, processing and waste management on the mining licence, including power transmission line, diesel generators, and additional site facilities and accommodation for staff.

Power

The project will utilize a diesel-solar and battery storage hybrid power plant consisting of diesel generators with a capacity of approximately 13,286 kilowatts, a solar photovoltaic (PV) plant with a total capacity of approximately 18,030-kilowatt peak/14,400 kilowatts and the battery energy storage system with a capacity of six megawatt-hours/12 megawatts. Robex is part of a clear policy of reducing carbon dioxide emissions from its operations on site.

The hybrid power plant has been developed based on Vivo Energy providing power as an independent power producer (IPP). Vivo Energy will be responsible for all energy requirements of the mine and the fuel storage capacity. The diesel generator will be the prime source of power supply. The PV battery plant will be displacing the thermal generation by up to 40 per cent during solar hours with support from a battery energy storage system (BESS).

The PV battery and diesel generator plant will be connected directly to the main switchboard of the mine at a high voltage of 15 kilovolts through a dedicated power line infrastructure. The distribution will supply the camp, plant, mining workshops and the tailings storage facility (TSF) through the mine's main switchboard.

Water

Water for operations is to be sourced from the proposed TSF (prioritized), dewatering of historical pits and boreholes. Allowance has been made for the procurement and installation of industrial reverse osmosis units. Water supply to the reverse osmosis units will be through existing boreholes near each camp.

Process water will be primarily sourced from recirculated TSF water. It is continuously recirculated from the TSF to the process water pond and the processing plant, mainly in the milling area. A pump located in the process water feeds the process water distribution network of the mill. Raw water is added to the process water pond through the freshwater tank overflow to compensate for the process water losses. The proposed water supply is sufficient to meet the process plant requirements.

Tailings

Epoch Resources Pty. Ltd. was commissioned by SMG to undertake the detailed design of the new TSF. The proposed TSF is required to accommodate 36 million tonnes of volume for the tailings calculated based on an estimated average in situ dry density of the tailings product of 1.39 tonnes per cubic metre, a particle specific gravity (SG) of 2.77 tonnes per cubic metre, and an estimated average in situ void ratio of 1.

The TSF is expected to be constructed in phases as a full containment facility incorporating an HDPE liner to the basin and inside faces of the containment walls to mitigate against the potential for groundwater pollution. Management and monitoring systems are expected to be implemented to ensure that risks associated with the facility are identified and mitigated in line with accepted practices and standards.

Operating cost summary

Mining operating cost estimates were prepared by AMC Mining Consultants (U.K.) Ltd. Processing costs were prepared by Soutex while infrastructure and general and administration operating cost estimates were prepared by Robex and reviewed by AMC. LoM operating unit costs are summarized herein.

Capital cost summary

The process plant capital cost estimate was compiled by Soutex with input from Epoch on the TSF and Robex on the water infrastructure and site access roads. Robex has provided estimates for mine establishment, infrastructure facilities, high-voltage power supply and owner's costs.

Starting Jan. 1, 2023, the total LoM capital cost is estimated at $234-million (U.S.), including $160-million (U.S.) of initial capex, $31-million (U.S.) of development capex postconstruction period and $43-million (U.S.) of sustaining capital. The initial capital costs include an 8-per-cent contingency while the capex during operations includes a 5-per-cent contingency.

The construction has already started, and $27-million (U.S.) out of the $160-million (U.S.) (the equivalent of 17 per cent of the total) is expected to be spent as of June 30, 2023. The first gold poured is expected in mid-2024.

The closure costs have been estimated by ABS Africa to be a total of $19.9-million (U.S.). This includes contractors, preliminary and general costs, engineering design, and environmental permitting.

Environment and social

Under the Mining Code, all applicants for an exploitation licence must submit an environmental and social impact assessment (ESIA). Robex completed the ESIA in the past few weeks. There are currently no objections known to Robex to the development of the project.

The environmental permit for the project was received, and an environmental and social management plan (ESMP) is being implemented to guide Robex's local community engagement, as well as ensure it fulfills its environmental obligations, minimizing the mine's impacts where possible. The ESMP will be used to ensure compliance with environmental specifications, and monitoring and management measures, and will be implemented from site preparation through to decommissioning and closure.

Robex believes that its most significant contribution to sustainable and responsible development is to help its local employees obtain or complete their professional qualifications, thereby ensuring long careers. Robex intends to replicate the mine-school concept in Guinea from its existing operation in Mali, targeting a greater than 90 per cent local talent of its skilled work force.

During construction activities, approximately 450 employees will be on site. During operating activities, the team will consist of 400 Robex employees (excluding exploration) and 450 contractors.

Ownership, permitting, taxes and royalties

Once a mining convention is signed with the government of Guinea, Robex will have an 85-per-cent ownership stake in Kiniero while Soguipami (the Guinean-state-owned mining company) will have a stake of 15 per cent. Subject to the government of Guinea's 15-per-cent interest, Robex also has the exclusive rights to acquire full ownership of the Mansounia exploitation licence pursuant to a technical partnership agreement entered into with Penta Goldfields Company SA subject to the satisfaction of certain conditions precedent. Robex submitted to the government of Guinea an application to convert the licences into exploitation. Ultimately, Robex will own 85 per cent of Kiniero and Mansounia with the balance owned by the Guinean state. Both properties will be governed by the same mining convention.

Subject to adjustment with a mining convention, the corporate tax rate of 30 per cent of gross profit has been applied in the FS. A royalty rate of 5.5 per cent, a 1-per-cent contribution to the Local Mining Development Fund and a 0.5-per-cent private royalty were applied to all sales.

Financial analysis

An economic analysis has been carried out for the project using a cash flow model. The model has been constructed using annual cash flows taking into account annual processed tonnages and grades for the CIL feed, process recoveries, metal prices, operating costs and refining charges, royalties, and capital expenditures (both initial and sustaining). A payability factor of 99.95 per cent has been assumed for purposes of gold sales.

The financial analysis used a base price of $1,650 (U.S.) per oz. The financial assessment of the project is carried out on a 100-per-cent equity basis, and the debt and equity sources of capital funds are ignored. No provision has been made for the effects of inflation. Discounting and IRR calculations have been applied as of July 1, 2023, using a 5-per-cent discount rate. Capital costs spent until June 30, 2023, are considered sunk.

The project sensitivity of the NPV, IRR and payback period with the gold price, as of July 1, 2023, is shown herein.

Qualified person

Scientific or technical information in this press release that relates to mineral resources was prepared or supervised by Ingvar Kirchner, a full-time employee for AMC Consultants Pty. Ltd. Mr. Kirchner is a fellow of the Australasian Institute of Mining and Metallurgy and a member of the Australian Institute of Geoscientists, and has sufficient experience that is relevant to the project under consideration which he is undertaking to qualify as a qualified person under National Instrument 43-101.

Scientific or technical information in this press release that relates to geology, exploration, drilling and sample preparation, analyses, and security was prepared or supervised by Nicholas Szebor, a full-time employee for AMC Consultants (U.K.) Ltd. Mr. Szebor is a chartered geologist with the Geological Society of London (CGeol) and the European Federation of Geologists (EurGeol), and has sufficient experience that is relevant to the project under consideration which he is undertaking to qualify as a qualified person under NI 43-101.

Scientific or technical information in this press release that relates to mineral reserves and mining was prepared or supervised by Alan Turner, a full-time employee for AMC Consultants (U.K.) Mr. Turner is a chartered engineer and professional member of the Institute of Materials, Minerals and Mining (IMMM), and has sufficient experience that is relevant to the project under consideration which he is undertaking to qualify as a qualified person under NI 43-101.

The scientific or technical information in this press release that relates to geotechnical engineering was prepared or supervised by Jody Thompson, founder and principal engineer of Trem Engineering in South Africa. Mr. Thompson is a certified rock mechanic engineer under the Chamber of Mines of South Africa, and is a member in good standing with the South African Institute of Rock Engineering, a member of the South African Institute of Mining and Metallurgy, and a member of the International Society of Rock Mechanics. He has sufficient experience that is relevant to the commodity, style of mineralization under consideration and activity which he is undertaking to qualify as a qualified person under NI 43-101.

The scientific or technical information in this press release that relates to metallurgy and processing results was prepared or supervised by Antoine Berton, a full-time employee of Soutex. Mr. Berton is a member of the Ordre des Ingenieurs du Quebec (OIQ) and has sufficient experience that is relevant to the project under consideration which he is undertaking to qualify as a qualified person under NI 43-101.

The scientific or technical information in this press release that relates to tailings storage facility results was prepared or supervised by Guy Wiid, a permanent employee of Epoch Resources Pty. Mr. Wiid is a professional engineer in good standing with the Engineering Council of South Africa and a chartered engineering in good standing with the American Society of Civil Engineers, and has sufficient experience that is relevant to the project under consideration which he is undertaking to qualify as a qualified person under NI 43-101.

The scientific or technical information in this press release that relates to environmental, social and governance results was prepared or supervised by Faan Coetzee, a full-time employee of ABS Africa Pty. Mr. Coetzee is a registered professional natural scientist with the South African Council for Natural Scientific Professions and has sufficient experience which is relevant to the project under consideration which he is undertaking to qualify as a qualified person under NI 43-101.

Each of Mr. Kirchner, Mr. Szebor, Mr. Turner, Mr. Thompson, Mr. Berton, Mr. Wiid and Mr. Coetzee has reviewed and approved the scientific and technical information relating to his respective fields of expertise mentioned above, and does not or did not have at the relevant time an affiliation with Robex or its subsidiaries, except that of independent consultant/client relationship. The relevant qualified persons have verified the data disclosed, including sampling, analytical and test data underlying the information contained in this news release. This included an appropriate quality control sampling program of reference standards, blanks and duplicates to monitor the integrity of all assay results. Raw quality assurance/quality control data were supplied to the QP who has reviewed the data statistically. Additional checks completed by the QP have included a review of historical QA/QC data and a review of a selection of assay certificates.

Further details on the scientific and technical information relating to the Kiniero gold project will be provided in the technical report for the Kiniero gold project, which will be filed on SEDAR within the next 45 days.

About Robex Resources Inc.

Robex is a multijurisdictional West African gold production and development company with near-term exploration potential. The company is dedicated to safe, diverse and responsible operations in the countries in which it operates with a goal to foster sustainable growth. The company has been operating the Nampala mine in Mali since 2017 and is advancing the Kiniero gold project in Guinea.

Robex is supported by two strategic shareholders and has the ambition to become one of the most important mid-tier gold producers in West Africa.

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