Lake Victoria Gold Limited. announced progress on the acquisition of the Imwelo Project mining licence from Tanzoz Minerals Limited in Tanzania. Under the terms of the acquisition agreement, LVG's subsidiary Tembo Gold Tanzania Limited (TGTL) is acquiring the Imwelo mining licence ML538 (the Imwelo Project), which is planned for gold production within 12 months.

For further information regarding the Acquisition. Progress towards closure and finalisation of the transaction and transfer of the mining licence to the Company's subsidiary in Tanzania includes: submission of the requisite application for approval to the Fair Competition Commission and commencement of discussions with the agent; submission to the Tanzania Revenue Authority of a letter to determine a deferred realisation date for the transaction and an advance tax calculation pending transaction completion; final land compensations over future mining areas of the project have been paid; a 15% deposit payment made for the ball mill being refurbished for the project; and final detailed engineering design is underway. Discussions are to commence soon with the Mining Commission in respect of the Tanzanian Government's legislated 16% free carried interest.

Highlights: Fair Competition Commission (FCC): The application for FCC approval of the transaction was submitted and the application fee paid in December 2023. FCC undertakes to provide approval within 90 days of 18 December 2023. FCC determined that the `merger' application and all documents submitted were complete and the consideration of the transaction approval would proceed.

Tanzania Revenue Authority (TRA): A request for determination of a deferred realisation and advance tax calculation pending completion of the acquisition has been submitted and the TRA response is imminent. A number of conditions precedent for closure of the acquisition agreement have to be met and the purchase consideration will only become payable at that stage, at which stage the tax liability arising from the transaction will be settled. Final land compensations have been paid over an area covering the western shear zone, which is the phase 2 area of the mining project.

90% of the compensations are complete. The compensated land users have 30 days to vacate the area. A suitable ball mill has been sourced in South Africa and preparation of the mill commenced.

A 15% deposit has been paid to secure the mill. Final detailed engineering design is underway including electrical reticulation; equipment specifications; civil foundation design; instrumentation requirements, structural steelwork; and pipes and pump requirements and layout. This is being carried out by Turaflo Pty Ltd, South Africa.

Expected completion date is by end of February. In September 2022 the Tanzanian Government published revised regulations (THE MINING (STATE PARTICIPATION) REGULATIONS, 2022) whereby the Company is obliged to commence negotiations with the Mining Commission to enable the Government to acquire its minimum of 16 % free carried undilutable shareholding in the entity that will hold title to the Imwelo Project. These negotiations will lead to the signing of a joint venture agreement largely governed by the Framework Agreement (First Schedule of the Regulations), a Shareholders Agreements and the incorporation of a joint venture company with the Government Shareholder.

In addition, a royalty will be payable to the Tanzanian Government on the gross value of minerals produced from the Imwelo Project at a rate of 6% for gold.