African Gold Group Announces Year-End Shareholder Letter

TORONTO, Dec. 30, 2021 (GLOBE NEWSWIRE) — African Gold Group, Inc. (TSX-V: AGG, OTC: AGGFF, FRA: 3A61) (“AGG” or the “Company”) is pleased to announce a year-end shareholder letter from AGG Chief Executive Officer, Danny Callow.

Dear Investors and Shareholders,

As we all head into the holiday season, the AGG team has lots to celebrate and reflect on! 2021 was a transformative year for African Gold Group as we laid the groundwork to dramatically accelerate the Company’s growth into 2022 and beyond.

Throughout this past year, we achieved several corporate and operational milestones, some of which included reducing overhead costs substantially through a corporate restructuring, strengthening our leadership team, delivery of a substantially improved definitive feasibility study (“DFS”), delivery of our updated Environmental and Social Impact Assessment (“ESIA”), award of a new Environmental Permit and extension of our exploration licenses. The long journey to prepare the Kobada Gold Project for the next stage is now entering the most exciting and rewarding phase.

Definitive Feasibility Study

The majority of 2021 has been largely focused on the delivery of an updated definitive feasibility study for the Kobada Gold Project (the “Project” or “Kobada”), which was delivered in October 2021. Over the past two years we have worked tirelessly on the technical elements of the project to demonstrate that the Kobada project has the potential to be one of the largest new gold projects in West Africa. Since new management took over in August 2019, and with new drilling campaigns totaling more than 18,000 metres, we have managed to increase our reserve base by 144% (66% increase over the 2020 DFS) and our measured and indicated resource more than 40%.

With our updated 2021 DFS we have shown that Kobada has the potential to produce over 1.2 mln oz of gold over a 16-year mine life while delivering solid economics with post-tax NPV5% of US$355 million and an IRR of 38%.

Expansion of Leadership Team 

We have continued to streamline our corporate overheads and bringing onto our board experienced directors. We have identified a strong operational team to bring on board at the right time to take Kobada into construction. All of these key personnel have extensive experience in building and operating mines in Africa.

Environmental and Social Impact Assessment 

In the second half of 2021, the Ministry of Environment, Sanitation and Sustainable Development of the Republic of Mali has approved the Environmental and Social Impact Assessment for the Kobada Gold Project and issued an updated Environmental Permit. The approval of ESIA marks a key milestone in the permitting process and is the culmination of extensive consultations and stakeholder engagement.

Other Permits

In the second half of 2021, the Company received crucially important renewal and extension of the Kobada Est exploration permit for a period of three years. The Kobada Est exploration permit covers an area of 7,700 hectares and forms part of the Kobada Gold Project’s highly prospective contiguous exploration and mining permits, totalling 25,770 hectares.

In addition, the company’s contiguous Faraba permit was also renewed by the Ministry of Mines for a further 3 years, and significant upside potential exists for expanding the mineral resource estimate through further exploration.

Looking Forward to 2022

As we move into 2022, the principal focus of our growth strategy next year is to complete the financing of the Project so that we can move into construction phase.

AGG’s team and I would like to thank all of our shareholders for your continued support. None of our progress and the opportunity that lies ahead would be possible without you. The last year has been both a challenging and exciting period for African Gold Group, as we have positioned the Company to execute on its ambitious agenda for 2022. I believe 2022 will be a year of significant success for the African Gold Group and, as a result, shareholder value.

From all of us at African Gold Group, we wish you a very safe and happy holiday season and look forwards to engaging with all shareholders once again in 2022.

About African Gold Group

African Gold Group is a TSX Venture Exchange (TSX-V: AGG) listed exploration and development company with a focus on building Africa’s next mid-tier gold producer. The Company has a highly experienced board and management team with a proven track record in the African mining sector operating mines from development through to production. AGG’s principal asset is the Kobada Project in southern Mali, which is in an advanced stage of development having completed the 2021 DFS and is targeting gold production of 100,000 oz per annum. As well as the initial Kobada Gold Project, other exploration locations have been identified on the Kobada, Farada and Kobada Est concessions, offering potential for an increase in resource. For more information regarding African Gold Group visit our website at www.africangoldgroup.com.

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Cautionary statements 

This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements regarding, the Offering, production potential and economics of the Project, upside potential of the Project, drilling and exploration plans of the Company, and development timetable with respect the Project. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of AGG to be materially different from those expressed or implied by such forward-looking information, including but not limited to: receipt of necessary approvals for the Offering and the Kobada Gold Project; general business, economic, competitive, political and social uncertainties; future prices of mineral prices; accidents, labour disputes and shortages; available infrastructure and supplies; the COVID-19 pandemic and other risks of the mining industry. Although AGG has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. AGG does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

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