KOPY GOLDFIELDS PUBLISHES Q3 2020 OPERATIONAL UPDATE

Inside information: Kopy Goldfields AB (publ) ("Kopy Goldfields" or the "Company") is hereby announcing an operational update for the third quarter and nine months ending September 30, 2020 as well as production forecast for 2020. The company reports solid operational results despite the COVID-19 pandemic affecting alluvial mining operations.

Highlights:

  • The total gold equivalent (GE1) production in Q3 from the Company's two bedrock mines and two alluvial mines in the Khabarovsk region of Russia increased by 3% year-on-year to 18.1 koz (564 kg) compared to 17.6 koz (547 kg) in Q3 2019 including 29.5 koz (917 kg) of silver.
  • 2020 GE production is expected at 52 koz to 54 koz, which is slightly above the 2019 production level of 51.5 Koz.
  • Gold sales for the first nine months of 2020 amounted to 38.6 koz (1,199 kg), compared to 36.6 koz (1,138 kg) of gold sales for the corresponding period of 2019.
  • The production growth in Q3, was driven by increased production rates at the Perevalnoe mill, which processed 42 kt of ore in Q3 2020 compared to 35 kt in Q3 2019, targeting 2020 full-year throughput of 160 kta (thousand tons per annum).
  • For the first nine months of 2020, the total GE production amounted to 42 koz (1,306 kg) compared to 43.5 koz (1,354 kg) for the corresponding period of 2019. The decreased production primarily relates to alluvial operations which have been, and continuously are affected by understaffing following COVID-19 travel restrictions.
  • The alluvial mining (gravel washing) operations at the Buor-Sala and Kagkan-Chudny placer deposits were affected by COVID-19 travel restrictions. Operations commenced in May 2020 with delays and failed to pick up the lost production due to significant understaffing continuing throughout the whole operational season. This resulted in alluvial gold production of 6.8 koz (212 kg) in 2020 compared to 10.1 koz (314 kg) in the corresponding period of 2019.
  • Apart from alluvial mining, the COVID-19 pandemic has had a limited effect on the total operations: bedrock gold production, constructions and sales activities are not materially affected. Mine shifts were extended to cover the transition period since travel was restricted in order to protect the Company's remote operations and nearby communities, and a 14-day quarantine period was introduced for all personnel travelling to the production mine sites.
  • In September 2020, the pilot heap leach operations at the Yubileyniy project were commenced. 14 kt of ore were stacked and the facility produced the first 0.34 koz of gold.
  • As announced on October 16, the total Company Mineral Resources (Amur Zoloto and Krasny projects) increased by 19% to 2,756 koz of gold including Ore Reserves which also increased by 19% to 1,313 koz of gold, following successful exploration in 2019-2020 at the Krasivoe deposit within the Yubileyniy project (Amur Zoloto).
  • Backed by the reserve increase at Yubileyniy, the Company has revised the development program for the Yubileyniy CIP plant: following the initial processing capacity increase from the current 130 kta to 250 kta by 2022, a further extension to 400 kta by 2025 is now planned.

1 Varies based on relation between actual gold and silver prices: for the first nine months of 2020 the applied average conversion ratio for silver was 1:98 Ag/Au

"We are glad to report strong operational results for our expanded operations and we expect to exceed the 2019 production levels despite underperformance of the placer mining due to COVID-19 travel restrictions. Successful exploration at Krasivoe deposit resulted in a significant increase of gold reserves and strengthened our production growth model. The operational results are further supported by historically high gold prices and the lower RUB/USD rate, which increase revenue and supports profit margins for gold mining operations", said Mikhail Damrin, CEO of Kopy Goldfields.

Yubileyniy project

The Yubileyniy project includes the operating Krasivoe underground mine and the Yubileyniy processing plant. The Krasivoe mine commenced production in 2004, initially as an open pit and then switched to underground in 2010. Yubileyniy is a conventional CIP plant with an installed capacity of 130,000 tonnes per annum (tpa) and a planned expansion in capacity to 250,000 tpa by 2022, followed by further expansion to 400,000 tpa by 2025. The plant flowsheet includes consecutive gravity concentration followed by intensive cyanidation of gravity concentrate and flotation concentration of gravity tailings followed by CIP process of flotation concentrate. The outcome product from the site are gold alloys (Dore bars) with some 17-30% of gold content which is further refined to bankable gold bars by the external smelter.

Gravity and flotation concentrates produced at Perevalnoe plant are also leached to Dore bars at the Yubileyniy plant. During the first nine months of 2020, a total of 271.47 tons of gravity concentrate and 4,308.48 tons of flotation concentrates from the Perevalnoe project were leached at the Yubileyniy plant, producing 22.43 koz (697.8 kg) of gold, which are reported under the Perevalnoe project further below.

Yubileyniy project

3 months ended Sep 30,

Change

9 months ended Sep 30,

Change

2020

2019

2020

2019

CIP

Underground ore mined, 000'tons

42.90

36.90

16%

132.40

76.40

73%

Underground development, meters

500

140

257%

1,602

622

158%

Underground ore grade, g/t

4.00

5.22

-23%

4.10

5.44

-25%

Ore processed, 000'tons

31.60

32.70

-3%

96.00

92.20

4%

Average grade, g/t

4.73

5.10

-7%

4.88

5.44

-10%

Gold produced CIP, kg

118.90

126.90

-6%

358.30

390.90

-8%

Gold produced CIP, koz

3.82

4.08

-6%

11.52

12.57

-8%

Heap Leach (HL)

Ore stacking, 000'tons

14.00

14.00

Grade, g/t

2.13

2.13

Gold in ore stacked, kg

29.80

29.80

Gold produced HL, kg

11

11

Gold produced HL, koz

0.34

0.34

Perevalnoe project

The Perevalnoe project includes the Perevalnoe processing plant and the Perevalnoe deposit. Mining from the Perevalnoe open pit commenced in 2015 and the processing plant was commissioned in 2017. The plant produces gravity and flotation concentrates on site which are further transported and leached at the Yubileyniy processing plant to produce Dore bars. The Perevalnoe concentration (gravity and flotation) plant, with a designed capacity of 125,000 tpa, processed 144,000 tpa in 2019, following bottlenecks elimination. For 2020, the annual throughput is expected at around 160,000 tpa.

The Perevalnoe deposit is now represented by two zones, which are considered as two separate deposits: Brekchiyevaya Zone and Priyatnoe Zone. Ore is currently mined from the Brekchiyevaya open pit and the Priyatnoe open pit and in the future from an underground mine below the open pit at Brekchiyevaya. The mined ore is split into three categories: "High grade", "Low grade" and "Heap leach" grade. The "High grade" ore with a grade above 5 g/t is mixed with "Low grade" ore (grade between 3 and 5 g/t) to get a head grade of 5.5-6.5 g/t and then processed at the Perevalnoe mill to gravity and flotation concentrates which are further transported and leached at the Yubileyniy processing plant. The "Low grade" ores are partially mixed "High grade" ores and partially stockpiled at site for the future use. "Heap leach" grade ores with grades below 2 g/t are stockpiled at site until 2021 when the heap leach operations at a rate of 250 ktpa will commence.

Perevalnoe project

3 months ended
Sep 30,

Change

9 months ended
Sep 30,

Change

2020

2019

2020

2019

Waste stripping, 000'm3

677.6

408.2

66%

1,940.5

1,092.9

78%

Ore mined, 000'tons

85.4

60.9

40%

193.8

190.8

2%

Average ore grade, g/t

3.16

3.78

-16%

3.44

4.43

-22%

including

High grade ore, 000'tons

15.8

14.8

7%

49.00

54.9

-11%

Average grade, g/t

9.17

11.68

-21%

8.82

10.6

-17%

Low grade ore, 000'tons

1.70

46.10

-96%

20.6

135.9

-85%

Average grade, g/t

2.94

2.04

44%

3.49

1.94

80%

Heap Leach ore, 000'tons

67.90

124.20

Average grade, g/t

1.19

1.31

Ore processed, 000'tons

42.10

34.79

21%

124.71

94.50

32%

Average grade, g/t

7.13

6.18

15%

6.07

7.55

-20%

Gravity concentrate produced, 000'tons

94.30

88.01

7%

277.28

262.64

6%

Average grade, g/t

1,258.38

964.86

30%

918.69

1,094.25

-16%

Flotation concentrate produced, 000'tons

1,536.88

1,120.19

37%

4,429.42

3,447.20

28%

Average grade, g/t

104.79

107.64

-3%

103.15

114.98

-10%

Gold produced (at the Yubileyniy plant from gravity and flotation concentrates of Perevalnoe project), kg

274.70

217.70

26%

697.80

628.50

11%

Gold produced (at the Yubileyniy plant from gravity and flotation concentrates of Perevalnoe project), koz

8.83

7.00

26%

22.43

20.21

11%

Placer mining

In 2020, Amur Zoloto produces alluvial gold at the two placer deposits: Buor-Sala and Kagkan-Chudny located near the Yubileyniy and Perevalnoe projects respectively. These are shallow stream placers which are dozed and loaded into articulated haul trucks and hauled to semi-mobile washing plants or hauled by front-loaders. The waste stripping is conducted largely in the autumn and early spring with washing of gravels from May to October.

Placer mining

3 months ended
Sep30,

Change

9 months ended
Sep30,

Change

2020

2019

2020

2019

Overburden, 000'm3

635.70

464.90

37%

1,457.10

1,020.10

43%

Capital mining, 000'm3

89.10

88.30

1%

258.60

236.50

9%

Placer gravel washed, 000'm3

327.60

509.30

-36%

455.20

811.50

-44%

Average grade, mg/m3

455.79

380.54

20%

466.69

387.11

21%

Gold produced, kg

149.30

193.80

-23%

212.40

314.10

-32%

Gold produced, koz

4.80

6.23

-23%

6.83

10.10

-32%

Competent person

Alexander Polonyankin, a Competent person under JORC and member of Australasian Institute of Mining and Metallurgy, MAusIMM (CP), has reviewed and approved the technical information relating to operations covered in this press release.

Responsible party

Kopy Goldfields is obliged to make public this information in accordance with the (EU) Market Abuse Regulation 596/2014. The information in this press release has been made public through the agency of the responsible persons set out below for publication at the time stated by Kopy Goldfields news distributor beQuoted at the publication of this press release.

For more information, please contact:

Mikhail Damrin, CEO, +7 916 808 12 17, mikhail.damrin@kopygoldfields.com

Tim Carlsson, CFO, + 46 702 31 87 01, tim.carlsson@kopygoldfields.com

About Kopy Goldfields

Kopy Goldfields is a leading Swedish gold exploration and production company operating in the most renown gold mining regions of Russia. Kopy Goldfields' strategy is to combine Russian geologic knowledge and science with international management, "best industry practices" and modern and efficient technology to identify and develop mineral deposits in a cost-efficient, safe and transparent way. The Company is listed on NASDAQ First North Growth Market in Stockholm.

Kopy Goldfields applies International Financial Reporting Standards (IFRS), as approved by the European Union. Hagberg & Aneborn Fondkommission acts as Certified Adviser, contact number: +46 8 408 933 50, e-mail: info@hagberganeborn.se.

The Share

Ticker: KOPY
http://www.nasdaqomxnordic.com/shares/microsite?Instrument=SSE77457
Outstanding shares: 886,005,575

Forward-looking statements

This press release contains forward-looking statements that reflect the Company's and the company group's intentions, beliefs, or current expectations about and targets for the Company's and the company group's future results of operations, financial condition, liquidity, performance, prospects, anticipated growth, strategies and opportunities and the markets in which the Company and the group operates. Forward-looking statements are statements that are not historical facts and may be identified by words such as "believe", "expect", "anticipate", "intend", "may", "plan", "estimate", "will", "should", "could", "aim" or "might", or, in each case, their negative, or similar expressions. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions. The forward-looking statements are subject to a number of risks and uncertainties, including, but not limited to, (i) changes in the economic, regulatory and political environments in the countries where Kopy Goldfields operates; (ii) changes relating to the geological information available in respect of the various projects undertaken; (iii) Kopy Goldfields' continued ability to secure enough financing to carry on its operations as a going concern; (iv) the success of its potential joint ventures and alliances, if any; (v) exchange rates, particularly between the Russian rouble and the U.S. dollar. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurances that they will materialize or prove to be correct. Because these statements are based on assumptions or estimates and are subject to risks and uncertainties, the actual results or outcome could differ materially from those set out in the forward-looking statements as a result of many factors, including but not limited to risks and uncertainties surrounding any gold production and exploration company at an early stage of its development. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this press release by such forward-looking statements. The Company does not guarantee that the assumptions underlying the forward-looking statements in this press release are free from errors and readers of this press release should not place undue reliance on the forward-looking statements in this press release. The information, opinions and forward-looking statements that are expressly or implicitly contained herein speak only as of its date and are subject to change without notice. Neither the Company nor anyone else undertake to review, update, confirm or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this press release, unless it is not required by law or Nasdaq First North Growth Market rule book for issuers.

Kopy Goldfields kapitalmarknadsuppdatering 2020 idag klockan 09:00 CET

Idag den 27 oktober 2020 kl 09:00 CET kommer Kopy Goldfields AB (publ) ("Kopy Goldfields" eller "Bolaget") hålla en webbsänd kapitalmarknadsuppdatering. VD Mikhail Damrin och CFO Tim Carlsson kommer att presentera under eventet.


Kopy Goldfields 2020 Capital Markets Update to commence today at 09:00 CET

Kopy Goldfields AB (publ) ("Kopy Goldfields" or the "Company") will today, October 27, 2020, at 09:00 CET, host its online 2020 Capital Markets Update. Mikhail Damrin, CEO and Tim Carlsson, CFO will be presenting.


Kopy Goldfields meddelar långsiktigt produktionsmål och bjuder in till Kapitalmarknadsuppdatering den 27 oktober 2020

Insiderinformation: Kopy Goldfields AB (publ) ("Kopy Goldfields" eller "Bolaget") meddelar idag Bolagets långsiktiga produktionsmål; >100 koz av guld och guldekvivalenter år 2025 genom organisk tillväxt. CAPEX för perioden 2020-2025 beräknas uppgå till cirka 130 miljoner USD (inklusive moms) vilket förväntas finansieras via befintlig produktion och av lånefaciliteter som finns tillgängliga för Bolaget. Vidare bjuder Kopy Goldfields in investerare, analytiker och media till en kapitalmarknadsuppdatering den 27 oktober 2020, där Bolaget kommer uppdatera marknaden kring Kopy Goldfields strategiska ambitioner efter samgåendet med Amur Zoloto.


Kopy Goldfields announces long-term production target and invites to a Capital Markets Update on October 27, 2020

Inside information: Kopy Goldfields AB (publ) ("Kopy Goldfields" or the "Company") today announces a production target of >100 koz of gold and gold equivalent by 2025 via organic growth. The CAPEX for 2020-2025 is estimated at approximately USD 130 million (including VAT) which is expected to be fully financed by current production and existing debt facilities. Furthermore, Kopy Goldfields invites investors, analysts and media to a Capital Markets Update on October 27, 2020, to provide an update on Kopy Goldfields' strategic ambitions following the merger with Amur Zoloto.


KOPY GOLDFIELDS PUBLICERAR OPERATIONELL UPPDATERING FÖR TREDJE KVARTALET 2020

Insiderinformation: Kopy Goldfields AB (publ) ("Kopy Goldfields" eller "Bolaget") publicerar härmed en operationell uppdatering för tredje kvartalet och för de nio månader som slutar den 30 september 2020, samt en produktionsprognos för 2020. Bolaget rapporterar stabila operativa resultat trots Covid-19-pandemin, vilken påverkar den alluviala gruvverksamheten.


KOPY GOLDFIELDS PUBLISHES Q3 2020 OPERATIONAL UPDATE

Inside information: Kopy Goldfields AB (publ) ("Kopy Goldfields" or the "Company") is hereby announcing an operational update for the third quarter and nine months ending September 30, 2020 as well as production forecast for 2020. The company reports solid operational results despite the COVID-19 pandemic affecting alluvial mining operations.


Kopy Goldfields publicerar uppdaterad beräkning av mineralresurser och malmreserver

Insiderinformation: Kopy Goldfields AB (publ) ("Kopy Goldfields" eller "Bolaget") lämnar en uppdatering avseende mineralresurser och malmreserver för den nyförvärvade verksamheten Amur Zoloto ("AZ"). Beräkningen visar totalt 1 859 koz berggrunds- och alluvialt guld i tillgångskategorierna Kända, Indikerade och Antagna mineralresurser, vilket motsvarar en ökning med 32% jämfört med den föregående beräkningen som gjordes 2019. I detta ingår 1 187 koz guld i kategorin Sannolika malmreserver, vilket är 22% högre än vad som tidigare rapporterats. Kopy Goldfields totala Kända, Indikerade och Antagna mineraltillgångar uppgår nu till 2 756 koz guld inklusive Sannolika malmreserver som uppgår till totalt 1 313 koz guld, vilket inkluderar hänförbara resurser och reserver i Krasny-projektet.


Kopy Goldfields reports updated Mineral Resources and Ore Reserves estimates

Inside information: Kopy Goldfields AB (publ) ("Kopy Goldfields" or the "Company") provides a Mineral Resources and Ore Reserves update for the newly acquired business Amur Zoloto ("AZ"). A total of 1,859 koz of gold in the Measured, Indicated and Inferred categories for hard rock and placer assets are estimated, corresponding to a 32% increase compared to the previous resource estimate made in 2019. This amount includes 1,187 koz of gold contained in Probable Ore Reserves, which is 22% higher than previously reported. Adding the attributable reserves and resources of the Krasny project, Kopy Goldfields' new total estimated M, I&I Mineral Resources amount to 2,756 koz of gold, including total new Probable Ore Reserves of 1,313 koz of gold.


Kopy Goldfields byter Certified Adviser

Kopy Goldfields AB (publ) ("Kopy Goldfields" eller "Bolaget") har ingått avtal med Stockholm Certified Advisers AB avseende tjänsten som Certified Adviser. Stockholm Certified Advisers tillträder som Certified Adviser den 1 november 2020.


Kopy Goldfields changes Certified Adviser

Kopy Goldfields AB (publ) ("Kopy Goldfields" or the "Company") has entered into an agreement with Stockholm Certified Advisers AB regarding the service as a Certified Adviser. Stockholm Certified Advisers will take over as Certified Adviser on 1 November 2020.


Kopy Goldfields redovisar proforma-siffror med anledning av det omvända förvärvet av Amur Zoloto

Insiderinformation: Efter slutförandet av det omvända förvärvet ("Transaktionen") av OOO Amur Gold Company Limited ("Amur Zoloto"), som meddelades den 9 september 2020, redovisar Kopy Goldfields AB (publ) ("Kopy Goldfields" eller "Bolaget") idag proforma-siffror för det kombinerade bolaget för perioden 1 januari - 30 juni 2020.


Kopy Goldfields provides pro-forma financial information related to the reverse takeover of Amur Zoloto

Inside information: Following the completion of the reverse takeover ("the Transaction") of OOO Amur Gold Company Limited ("Amur Zoloto"), which was announced on 9 September 2020, Kopy Goldfields AB (publ) ("Kopy Goldfields" or the "Company") today releases the pro-forma financial information for the combined company for the period 1 January - 30 June 2020.


KOPY GOLDFIELDS SLUTFÖR DET OMVÄNDA FÖRVÄRVET AV AMUR ZOLOTO

Kopy Goldfields AB (publ) ("Kopy Goldfields" eller "Bolaget") meddelar idag slutförandet av det omvända förvärvet ("Transaktionen") av Amur Gold Company Limited ("Amur Zoloto") där Bolaget har förvärvat 100 procent av Amur Zoloto och således adderat betydande guldverksamhet till sin nuvarande inriktning och därmed bildat en ledande, Rysslands-fokuserad medelstor koncern inom guldprospektering och -produktion.


KOPY GOLDFIELDS COMPLETES THE REVERSE TAKEOVER OF AMUR ZOLOTO

Kopy Goldfields AB (publ) ("Kopy Goldfields" or the "Company") today announces the completion of the reverse takeover (the "Transaction") of Amur Gold Company Limited ("Amur Zoloto") where the Company has acquired 100 percent of Amur Zoloto and added significant gold operations and thereby created a leading Russia-focused Mid-Cap Gold Exploration and Production Group.




KOPY GOLDFIELDS MEDDELAR ATT DE FÖRSTA STEGEN MOT SLUTFÖRANDE AV DET OMVÄNDA FÖRVÄRVET HAR TAGITS

Kopy Goldfields AB (publ) ("Kopy Goldfields" eller "Bolaget") meddelar idag att det omvända förvärvet ("Transaktionen") av Amur Gold Company Limited ("Amur Zoloto") har gått in i slutfasen sedan alla villkor har uppfyllts. Genom Transaktionen, vilken offentliggjordes den 29 maj 2020, förvärvar Bolaget 100 procent av Amur Zoloto och adderar betydande guldverksamhet till sin nuvarande inriktning och bildar en ledande, Rysslands-fokuserad medelstor koncern inom guldprospektering och -produktion. Transaktionen förväntas vara slutförd senast den 16 september 2020.


KOPY GOLDFIELDS ANNOUNCES THAT THE FIRST STEPS TOWARDS COMPLETION OF THE REVERSE TAKEOVER HAVE BEEN TAKEN

Kopy Goldfields AB (publ) ("Kopy Goldfields" or the "Company") today announces that the reverse takeover of Amur Gold Company Limited ("Amur Zoloto") (the "Transaction") has entered its final phase with all conditions for completion now satisfied. Through the Transaction, which was announced on May 29, 2020, the Company acquires 100 percent of Amur Zoloto and adds significant gold operations creating a leading Russia-focused Mid-Cap Gold Exploration and Production Group. Completion of the transaction is expected no later than September 16, 2020.


KOPY GOLDFIELDS HAR ERHÅLLIT GODKÄNNANDE FÖR FÖRVÄRVET AV AMUR ZOLOTO

Kopy Goldfields AB (publ) ("Kopy Goldfields" eller "Bolaget") meddelar idag att Federal Antimonopoly Service of Russia ("FAS") har utfärdat godkännande för förvärvet av 100% av Amur Gold Company Limited ("Amur Zoloto"). FAS godkännandet uppfyller det återstående villkoret för slutförande av det villkorade omvända förvärvet, vilket offentliggjordes av Bolaget den 29 maj 2020 ("Transaktionen"). Genom Transaktionen adderar Kopy Goldfields betydande guldverksamhet till sin nuvarande inriktning och bildar en ledande, Rysslands-fokuserad medelstor koncern inom guldexploatering och guldproduktion.


KOPY GOLDFIELDS HAS RECEIVED APPROVAL FOR THE ACQUISITION OF AMUR ZOLOTO

Kopy Goldfields AB (publ) ("Kopy Goldfields" or the "Company") today announces that Federal Antimonopoly Service of Russia ("FAS") has issued consent for the acquisition of 100% of Amur Gold Company Limited ("Amur Zoloto"). The FAS approval meets the remaining condition for the completion of the conditional reverse takeover, which was announced by the Company on May 29, 2020 (the "Transaction"). Through the Transaction, Kopy Goldfields will add significant gold operations and create a leading Russia-focused Mid-Cap Gold Exploration and Production Group.


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