Kogi Iron : Agbaja Scoping Study

Agbaja Project

Scoping Study

December 2021

ABN 28 001 894 033

ASX Release onlyuse

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Cautionary Statement

The Scoping Study referred to in this announcement has been undertaken to ascertain whether a business case can be made to continue more definitive studies on the viability of the Agbaja Iron Mining and Steel Project (the Project). It is a preliminary technical and economic study of the potential viability of developing the Project. It is based on lower-level technical and preliminary economic assessments and is insufficient

onlyto support estimation of Ore Reserves. Further evaluation work and appropriate studies are required before Kogi Iron Limited (the Company) wi be in a position to estimate any ore reserves or to provide any assurance of an economic development case.

Approximately 92% of the life of mine (LOM) production is in the Indicated Mi eral Resource category and 8% is in the Inferred Mineral Resource categ ry. The Company has concluded that this is reasonable grounds for discl sing a Production Target. There is a low level of geological confidence ass ciated with Inferred Mineral Resources and there is no certainty that any further exploration work will result in the determination of further Measured or Indicated Mineral Resources or that the production target

useor pr liminary economic assessment will be realised. The company is satisfied that the respective proportions of inferred mineral resources are not the determining factors in project viability

The Scoping Study is based on the material assumptions outlined

el ewhere in this announcement. These include assumptions about the availability of funding. While the Company considers all the material

ass mptions to be based on reasonable grounds, there is no certainty that they will prove to be correct or that the range of outcomes indicated by the Scoping Study will be achieved.

personalTo achieve the range of outcomes indicated in the Scoping Study, funding in the order of USD 507 million will likely be required. Investors should

note that there is no certainty that the Company will be able to raise that mount of funding when needed. It is also likely that such funding may only be available on terms that may be dilutive to or otherwise affect the value of the Company's existing shares. However, the Company has concluded that it has a reasonable basis for providing the forward-looking statements included in this announcement and believes that it has a "reasonable basis" to expect it will be able to fund the development of the Project. It

is also possible that the Company could pursue other 'value realisation' strategies such as a sale, partial sale or joint venture of the project. If it doe , this could materially reduce the Company's proportionate ownership of the project.

Given the uncertainties involved, investors should not make any investment d cisions based solely on the results of the Scoping Study.

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Competent Persons Statement

The information in this announcement that relate to Mineral Resources for the Agbaja Project is based on information compiled by David Slater, Principal Resource Geologist of Coffey Mining who is a Chartered Professional Member of The Australasian Institute of Mining and Metallurgy and

a Member of the Australian Institute of Geoscientists. Mr Slater has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'.

With reference to previously reported Mineral Resources, the Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.

Forward-Looking Statements

This announcement contains "forward-looking statements". All statements other than those of historical facts included in this announcement are forward-looking statements. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation

or belief is expressed in good faith and believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, as well as political and operational risks and governmental regulation and judicial outcomes. The Company does not undertake any obligation to release publicly any revisions to any "forward-looking statement".

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Kogi Iron Limited

('Kogi' or 'the Company') is pleased to announce the results of a Scoping Study for the Agbaja iron ore mining and steel billet project located in Nigeria, Africa ('the Project').

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Scoping Study Basis

--This Scoping Study provides guidance on the latest input assumptions and results of Feasibility Study work completed to date

--Includes mine planning and metallurgical processing designs

--Updated capital and operating cost estimates completed by independent consultants

--Updated revenue assumptions are based on the review of the latest steel import prices since completion of the Fastmarkets report in 2018

--The Scoping Study shows a strong business case for the Agbaja Project

--The Ongoing Feasibility Study is on schedule to be completed during second half of 2022.

Background to the Scoping Study

The Company is currently undertaking a Feasibility Study on the Agbaja Project, which is planned to mine iron ore and produce competitively priced steel billet for the Nigerian domestic market. The cornerstone for the Project is the Agbaja iron ore deposit, which has a Mineral Resource Estimate ("MRE") of 586.3 Mt @ 41.3% Fe (Refer ASX Announcement 10 December 2013) and is of suitable quality and size to feed a long-term operation.

This Scoping Study was completed as part of the ongoing Feasibility Study program of works and utilises the work recently completed in relation to the operating cost review (OPEX), an updated estimate of capital costs (CAPEX) undertaken by independent consultants, applies a suitable range of estimated revenues from a review of the latest steel import prices and outlines other key project assumptions.

The Scoping Study is a critical element of the feasibility process and is a mechanism to communicate the key project attributes and assumptions to shareholders and key stakeholders allowing a better understanding of the inherent value of the Agbaja project.

The balance of the Feasibility Study will comprise additional test work, additional environment permitting, detailed mining and plant design, resource upgrade if required and other study aspects. The remainder of the feasibility program

is expected to be completed during the second half of

2022 which is running on schedule given the breadth and comprehensive nature of these studies.

Agbaja Project - Scoping Study, December 2021

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onlyKogi's executive chairman, Craig Hart, said: "the completion of the Agbaja Project Scoping Study is an important milestone in

usethe evaluation of Agbaja Iron Ore Mining and Steel Billet Project. The results are extremely encouraging, and this Scoping Study shows that the Project is economically viable using

personalthe material assumptions as disclosed in the Study. This provides the Company with the confidence to rapidly progress the Project to the next phase.

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Scoping Study Summary

The key metrics and outcomes of the Scoping Study are:

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-- Based on mining a small proportion of the 586Mt @ 41.3% Fe Indicated and Inferred Mineral Resource

-- Mining production rate of 1.7 Mtpa at an average grade of 46.7% Fe for an initial 25-year operation.

-- More than 92% of the Mineral Resource scheduled for mining is from the Indicated Resource classification

-- Mining strip ratio 0.5:1 (waste ore)

-- Steel billet production rate of approximately 500,000 tpa

-- Mining and steel billet operating costs of approximately USD 390 / billet tonne

-- Capital requirement approximately USD 507 million

-- At USD 550/tonne steel billet price:

-- NPV8 of approximately USD 273 million(after-tax) (AUD 390 million)

-- IRR of approximately 14% (after-tax).

-- Payback of 6 years (after-tax) from start of development.

-- The Company is envisaged to operate the steel billet and casting plant and contract the mining of the open pit mine and the project power generation plant.

Agbaja Project - Scoping Study, December 2021

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