KOPY GOLDFIELDS PUBLISHES Q4 AND FULL YEAR 2020 OPERATIONAL UPDATE

Kopy Goldfields AB (publ) ("Kopy Goldfields" or "the Company") hereby announces an operational update for the fourth quarter and the full year 2020. In line with its guidance, the Company has increased its annual gold production despite the COVID-19 pandemic.

Highlights:

  • The total gold equivalent (GE[1]) production in Q4 2020 from the Company's two bedrock mines and two alluvial mines in the Khabarovsk region of Russia increased by 24% year-on-year to 10.83 koz (336.96 kg), compared to 8.72 koz (271.15 kg) in Q4 2019.
  • Total 2020 production amounted to 53.11 koz (1,652.04 kg) of gold equivalent, in line with previous guidance (52-54 koz) and slightly above the 2019 production level of 52.26 koz (1,625.41 kg). 2020 GE production includes 97 koz (3,026 kg) of silver which is an equivalent of 1.36 koz (42.15 kg) of gold.
  • Gold sales for the full year 2020 amounted to 55.43 koz (1,723.96 kg), compared to 48.71 koz (1,515.01 kg) in 2019.
  • The production growth in Q4 2020 was driven by increased production from gravity and flotation concentrates from the Perevalnoe mill, which processed a total of 166 kt of ore in 2020, compared to 131 kt in 2019[2].
  • During the last two weeks of December 2020, the pace of mineral processing and underground mining operations at Yubileyniy was reduced due to COVID-19. The reduction affected the volume of ore processed and total gold production for Q4 at Yubileyniy. As of the date of this press release, all operations are restored to the planned scale.
  • Following the recent outbreak of COVID-19, the Company has strengthened quarantine measures and other precautions to prevent similar incidents in the future.

"We are glad to report strong operational results for 2020 and that we exceeded 2019's production despite COVID-19. We continue with activities intended to increase our gold production, which, combined with strong market fundamentals and a lower RUB/USD rate, will support revenue and profit margins", said Mikhail Damrin, CEO of Kopy Goldfields.

Yubileyniy project
During Q4 2020, GE production totalled 2.61 koz, a decrease of 39% compared to Q4 2019. The decrease in production is explained by lower gold grades (-11%) and a decrease in volume (-21%) of ore processed due to a reduction in operations in December because of COVID-19.

The full year GE production from the Yubileyniy project totalled 14.13 koz, a decrease of 16% compared to 2019. The decrease in production is mainly explained by the lower average grades (-10%) of the processed ore.

Yubileyniy project

Q4

Change

Full year

Change

2020

2019

2020

2019

CIP

Underground ore mined, 000'tons

39.90

40.70

-2%

212.20

117.07

81%

Underground development, meters

566

345

64%

2,168

967

124%

Underground ore grade, g/t

3.84

4.73

-19%

3.28

5.20

-37%

Ore processed, 000'tons

26.12

32.94

-21%

122.15

125.12

-2%

Average grade, g/t

4.53

5.07

-11%

4.81

5.34

-10%

Gold produced CIP, kg

81.19

132.54

-39%

439.48

523.42

-16%

Gold produced CIP, koz

2.61

4.26

-39%

14.13

16.83

-16%

Heap Leach (HL)

Ore stacking, 000'tons

-

14.00

Grade, g/t

-

2.88

Gold in ore stacked, kg

-

40.30

Gold produced HL, kg

10.82

21.29

Gold produced HL, koz

0.35

0.68

Gravity and flotation concentrates produced at the Perevalnoe plant are also leached to Dore bars at the Yubileyniy plant. During 2020, a total of 367.82 tons of gravity concentrate and 6,158.01 tons of flotation concentrate from the Perevalnoe project were leached at the Yubileyniy plant, producing 30.01 koz (933.53 kg) of gold, which are reported under the Perevalnoe project further below.

Perevalnoe project
During Q4 2020, the Perevalnoe mill processed 41.14 kt of ore, an increase of 12% compared to Q4 2019. Gravity concentrate production totalled 90.54 kt, a decrease of 4% and flotation concentrate 1,728.59 kt, an increase of 29%. GE production from Perevalnoe concentrates at the Yubileyniy mill amounted to 7.58 koz, an increase of 95%.

2020 full year gravity concentrate production reached 367.82 kt, an increase of 3% and flotation concentrate 6,158.01 kt, an increase of 29% supported by a 26% increase in ore processing at the Perevalnoe mill - 165.85 kt compared to 131.3 kt in 2019. 2020 GE production from Perevalnoe concentrates at the Yubileyniy mill amounted to 30.01 koz, an increase of 25%.

Perevalnoe project

Q4

Change

Full year

Change

2020

2019

2020

2019

Waste stripping, 000'm3

676.20

439.50

54%

3,293.00

1,971.90

67%

Ore mined, 000'tons

176.90

74.89

136%

370.71

265.70

40%

Average ore grade, g/t

3.78

4.98

-24%

3.60

4.59

-22%

including

High grade ore, 000'tons

52.96

26.73

98%

101.97

81.63

25%

Average grade, g/t

8.64

10.12

-15%

8.73

10.44

-16%

Low grade ore, 000'tons

13.34

48.16

-72%

33.97

184.07

-82%

Average grade, g/t

3.16

2.12

49%

3.36

1.99

69%

Heap Leach ore, 000'tons

110.60

-

-

234.78

-

-

Average grade, g/t

1.52

-

-

1.41

-

-

Ore processed, 000'tons

41.14

36.81

12%

165.85

131.3

26%

Average grade, g/t

9.31

7.39

26%

6.88

7.50

-8%

Gravity concentrate produced, 000'tons

90.54

93.94

-4%

367.82

356.58

3%

Average grade, g/t

1,573.86

1,110.62

42%

1,079.96

1,098.57

-2%

Flotation concentrate produced, 000'tons

1,728.59

1,335.06

29%

6,158.01

4,782.26

29%

Average grade, g/t

129.62

117.50

10%

110.58

115.69

-4%

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

235.82

120.75

95%

933.53

749.18

25%

Gold produced (at the Yubileyniy plant from gravity and flotation concentrates of Perevalnoe project) [3], koz

7.58

3.88

95%

30.01

24.09

25%

Placer mining
2020 full year gold production from placer operations totalled 6.93 koz, a decrease of 35% compared to 2019. The decline in alluvial production is explained by a significantly lower volume of placer gravel processed (a decrease of 44%) due to the late start of alluvial mining because of COVID-19 travel restrictions.

Placer mining

Q4

Change

Full year

Change

2020

2019

2020

2019

Overburden, 000'm3

-

19.00

-

1,457.10

1,033.60

41%

Capital mining, 000'm3

-

28.40

-

258.60

240.10

8%

Placer gravel washed, 000'm3

8.70

21.80

-60%

463.90

833.30

-44%

Average grade, mg/m3

361.61

731.88

-51%

464.72

396.13

17%

Gold produced, kg

3.10

15.96

-81%

215.60

330.09

-35%

Gold produced, koz

0.10

0.51

-81%

6.93

10.6

-35%

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.

[1] Varies based on relation between actual gold and silver prices: for twelve months of 2020 the applied average conversion ratio for silver was 1:72 Ag/Au.

[2] Since transportation of gravity and flotation concentrates from the Perevalnoe mine site to the Yubileyniy processing plant proceeds over time, the reported gold production for Perevalnoe does not necessarily involve concentrates from Perevalnoe produced in the same reporting period but rather earlier during this and last year.

[3] Since transportation of gravity and flotation concentrates from the Perevalnoe mine site to the Yubileyniy processing plant proceeds over time, the reported gold production for Perevalnoe does not necessarily involve concentrates from Perevalnoe produced in the same reporting period but rather earlier during this and last year.

Stockholm, January 22, 2021

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 renowned gold mining regions of Russia. Kopy Goldfields' strategy is to combine Russian geologic knowledge and science with international management, best industry practices and modern, 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. Stockholm Certified Advisers acts as Certified Adviser, contact number: +46 707 94 90 73, e-mail: info@certifiedadviser.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 apply 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 required by law or Nasdaq First North Growth Market rule book for issuers.

KOPY GOLDFIELDS GER RIKTLINJER FÖR 2021 ÅRS GULDPRODUKTION OCH CAPEX

INSIDERINFORMATION: Kopy Goldfields AB (publ) ("Kopy Goldfields" eller "Bolaget") har som mål att producera 56 koz till 59 koz guldekvivalenter (GE[1]) under 2021, en ökning med 5-11 % jämfört med 53,1 koz GE som producerades 2020. Bolaget planerar investeringar på cirka 56 miljoner USD under 2021 i projekt för produktionstillväxt och prospektering. Utgifterna kommer att finansieras genom befintliga lånefaciliteter och förväntat kassaflöde från produktionen.


KOPY GOLDFIELDS PROVIDES GUIDANCE FOR 2021 GOLD PRODUCTION AND CAPEX

INSIDE INFORMATION: Kopy Goldfields AB's (publ) ("Kopy Goldfields" or "the Company") target is to produce 56 koz to 59 koz of gold equivalent (GE[1]) in 2021, an increase of 5-11% compared to 53.1 koz of GE produced in 2020. The Company plans capital expenditures of around USD 56 million in 2021 on production growth and exploration projects. The expenditures will be funded through existing available debt facilities and expected cash flow from production.


KOPY GOLDFIELDS PUBLICERAR OPERATIONELL UPPDATERING FÖR FJÄRDE KVARTALET OCH HELÅRET 2020

Kopy Goldfields AB (publ) ("Kopy Goldfields" eller "Bolaget") publicerar härmed en operationell uppdatering för fjärde kvartalet och för helåret 2020. I enlighet med tidigare lämnat estimat har Bolaget ökat sin guldproduktion trots COVID-19-pandemin.


KOPY GOLDFIELDS PUBLISHES Q4 AND FULL YEAR 2020 OPERATIONAL UPDATE

Kopy Goldfields AB (publ) ("Kopy Goldfields" or "the Company") hereby announces an operational update for the fourth quarter and the full year 2020. In line with its guidance, the Company has increased its annual gold production despite the COVID-19 pandemic.


Kopy Goldfields informerar om finansiell kalender för 2021

Kopy Goldfields AB (publ) ("Kopy Goldfields" eller "Bolaget") informerar om sin finansiella kalender för 2021. Från och med första kvartalet 2021 övergår Kopy Goldfields från halvårsrapportering till kvartalsrapportering.


Kopy Goldfields informs about its financial calendar for 2021

Kopy Goldfields AB (publ) ("Kopy Goldfields" or the "Company") informs about its financial calendar for 2021. Starting with the first quarter 2021, Kopy Goldfields will change from half-yearly reporting to quarterly reporting.


Förändring av antal aktier i Kopy Goldfields AB (publ)

Kopy Goldfields AB (publ) ("Kopy Goldfields" eller "Bolaget") tillkännager att 3 058 600 nya aktier har tecknats till ett värde av 5 413 722 kronor inom ramen för utgivna teckningsoptioner under incitamentsprogram 2017/2020, antaget vid ordinarie bolagsstämma den 30 maj 2017.


Changes in number of shares in Kopy Goldfields AB (publ)

Kopy Goldfields AB (publ) ("Kopy Goldfields" or the "Company"), announces that 3 058 600 new shares have been subscribed for at a total value of SEK 5 413 722 as a result of warrants exercised under incentive program 2017/2020, adopted at the Annual General Meeting on May 30, 2017.


Valberedning för Kopy Goldfields inför årsstämman 2021

I enlighet med beslut på årsstämman 2020 fick styrelsens ordförande i Kopy Goldfields AB (publ) ("Kopy Goldfields" eller "Bolaget") i uppdrag att före valet av styrelseledamöter på årsstämman 2021 kontakta Bolagets större aktieägare för att utse minst två och högst fyra företrädare för Bolagets ägare till att utgöra en valberedning.


Kopy Goldfields' Nomination Committee for the 2021 Annual General Meeting

In accordance with the resolution of the Annual General Meeting 2020, the Chairman of the Board of Directors of Kopy Goldfields AB (publ) ("Kopy Goldfields" or the "Company"), was tasked to, prior to election of Directors at the 2021 Annual General Meeting, contact the Company's major shareholders in order to appoint no fewer than two and no more than four representatives of the Company's owners to constitute a Nomination Committee.


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.


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