Caracal Gold plc announced the completion of Phase 1 of the work program which was to review and update the geological model and mining plan for the Kilimapesa Hill deposit. The work included the review of the geological model, mineralization model, grade models, producing the Whittle optimisations, pit designs and a project evaluation. This is an important milestone in the Kilimapesa expansion project financing process.

Minopex Advisory (Pty) Ltd, a DRA Global Group Company, are carrying out the work program on behalf of Caracal. The scope of work/phases are as follows: Phase 1: 3-year mine plan to support Kilimapesa expansion financing; Phase 2: Full remodeling of Kilimapesa Hill deposit including additional drilling; Phase 3: Update the MRE (JORC) for Kilimapesa Hill deposit; Phase 4: Completion of 10 year mine plan for Kilimapesa Hill deposits. Highlights from the Phase 1 work are as follows: Independent Technical report providing 36 month mine plan for Kilimapes a Hill deposit; 49,155oz forecast production; AISC USD 1,055 per oz; Gross Revenue + USD 83.5 million; Total Free Cash + USD 31.7 million; Gold Price USD 1.700 per oz.

The Phase 1 mining plan has 2,427,279t of ore mined over the 36 month period at an average grade of 1.06g/t. 529,756t at an average grade of 1.,8g/t are processed through the Milling/CIL plant with 1,897,524t at an average grade of 0.86g/t processed by the Heap Leach plant. The plan assumes a 75% recovery by the Milling/CIL Plant for 23,002oz recovered and a 50% recovery through the Heap Leach plant for a total of 26,153oz recovered. Combined Milling/CIL and Heap Leach production over the 36 months is 49,155oz.

The current capital cost to complete the Kilimapesa expansion projects is approximately USD 10.5 million based on the results from the Phase 1 work. A reduction in the capital is expected and this plan will now be costed and an updated capital cost for the expansion project calculated and announced. This capital cost, along with the revised operating costs, will be used to update the financial model and agree the terms of the expansion funding.

The construction and commissioning program for the project is 6 months from when the funds are drawn down.