$US10.5m non-dilutive financing secured

Caracal Gold plc / EPIC: GCAT / Market: Main / Sector: Mining

 29th November 2022

Caracal Gold plc ('Caracal' or the 'Company')

$US10.5m non-dilutive financing secured

Caracal Gold plc, the expanding East African gold producer with over 1,300,000oz JORC compliant gold resources, is pleased to announce that it has secured conditional non-dilutive financing of US$10.5m through a pre-paid gold purchase agreement.

Kilimapesa Gold Pty Ltd ('KPG'), the 100% owned Kenyan operating subsidiary of Caracal, has entered into a pre-paid gold purchase agreement with a contract price totalling up to US$10.5m with OCIM Metals & Mining SA ('OCIM'). The total contract price will be made available to KPG, subject to conditions, in two tranches, with a 1^st tranche of US$7m to be drawn on or before 31 December 2022 and a 2^nd tranche of US$3.5m to be drawn down on terms to be agreed between OCIM and KPG.

Upon satisfaction of conditions, the proceeds from this financing will mean Caracal will be fully funded to continue the ongoing expansion of production at its flagship Kilimapesa Gold Mine in Kenya ('Kilimapesa' or the 'Project') to the targeted rate of 24,000oz per annum production, with final commissioning to achieve this now scheduled in March 2023.  The funds raised will also be used to complete the Phase 2 exploration programme at the Nyakafuru Project in Tanzania.  

Robbie McCrae, CEO of Caracal commented:

"A non-dilutive financing is a great outcome for Caracal, KPG and all of the many stakeholders of the Company and the Project. Having funding partners with the calibre of OCIM supporting Kilimapesa, the management and the vision of Caracal is a vote of confidence as we embark on the final push to deliver on our production target of 24,000oz per annum, whilst continuing to advance our regional exploration efforts in Kenya to ultimately build the life of mine and value potential. Alongside this, we are excited by the development opportunity Nyakafuru offers and look forward to progressing our targeted exploration programme to support a Preliminary Economic Assessment."

**ENDS**

About OCIM:

The OCIM group of privately held companies has a long and successful history as a Trader and Financier of Alternative Assets. Established in Paris in 1961, OCIM is headed by a third-generation member of the founding family.

Besides its core historical business in Real Estate, OCIM has expanded into other tangible assets such as Precious and Strategic Metals, via its Geneva and Toronto based subsidiaries.  As a Merchant, OCIM trades metals across the full value chain, from producers to end users.

As a Financier, OCIM provides funding to the value chain with debt instruments and structured trade finance.

To learn more about OCIM visit: www.ocim.eu

For further information visit www.caracalgold.com or contact the following:

Notes

Caracal Gold plc is an expanding East African focused gold producer with a clear path to grow production and resources both organically and through strategic acquisitions. Its aim is to rapidly increase production to +50,000ozs p.a. and build a JORC compliant resource base of +3Moz.  The company is progressing a well-defined mine optimisation strategy at its 100% owned Kilimapesa Gold Mine in Kenya, where there is significant mid-term expansion potential and the ability to increase gold production to 24,000oz p.a. and the resource to +2Moz (current JORC compliant resources of approx. 706,000oz). Alongside this, Caracal is undertaking a targeted exploration programme at the Nyakafuru Project in Tanzania, which has an established high-grade shallow gold resource of 658,751oz at 2.08g/t contained within four deposits over 280 km² and appears amenable to development as a large scale conventional open pit operation.  

Caracal's experienced team has a proven track record in successfully developing and operating mining projects throughout Africa.  The company is a responsible mining and exploration company and supports the positive social and economic change that it contributes to the communities in the regions that it operates.  It is a proudly East African-focused company: it buys locally, employs locally, and protects the environment and its employees and their families' health, safety, and wellbeing.

Caracal's shares are quoted on the Main Market of the London Stock Exchange (LON: GCAT) and on the Frankfurt Stock Exchange (FSE: 6IK).  The company is also in the process of listing on the Nairobi Securities Exchange.