Caracal Gold PLC (GCAT.L) Exploration Update

Caracal Gold plc, the gold producer with operations in East Africa, is pleased to announce an update on its ongoing exploration activities at its producing Kilimapesa Gold Mining and Processing Operations in Kenya, where it is advancing an initial shallow trenching programme on high priority targets on the newly targeted Southern Mineralized Zone ahead of the commencement of its planned RC and diamond drilling programmes later in the year.

HIGHLIGHTS

  • Peak trench sample result of 40m at 4.85g/t gold including 7m at 7.6g/t from trench CART 0003
  • Individual samples of 1m at 15.08g/t; 1m at 14.09g/t and 1m at 12.89g/t in trench CART 0003
  • Individual samples of 1m at 5.1g/t gold and 1m at 7.93g/t gold in trench CART 0001
  • Individual sample of 1m at 8.24g/t gold in trench CART 0002
  • Initial trench lengths have been extended as intersections of gold mineralisation exceeded expectations and remains open in all directions
  • Trenching work is continuing and is now planned to expose the southern contact of mineralisation in the six trenches across an initial strike length of 125m out of an approximate 7km of potential strike length
  • Bulk sampling from the first trenches will now also be excavated and used for further testwork and analysis

Robbie McCrae, CEO of Caracal, said, “Our focus at Caracal is on rapidly delivering on our strategy of becoming a +50,000oz p.a. producer and building a JORC compliant resource base of +3Moz within the next 12-18 months. Whilst we will continue to increase production at our Kilimapesa Gold Mining and Processing Operations, in parallel with this we will be focused on our aggressive acquisition strategy and on our exploration activities on our mining and prospecting licenses at Kilimapesa where the potential to increase our resource base is significant.

“Whilst early days, these shallow and high grade trenching results, particularly the 40m running at almost 5g/t of gold, provide us with very good indication that, what we potentially have at the newly targeted Southern Mineralized Zone, is a very wide and extensive gold mineralised zone that extends for several kilometres on our prospecting license and is open at depth. It is very encouraging that this Southern Mineralized Zone is in addition to, and south of the mineralisation and JORC compliant resource of over 671,400ozs that we have already defined and is being mined at Kilimapesa.

“We now look forward to completing this initial trenching work and the follow up bulk sampling programme and to include this Southern Mineralized Zone in our surface RC and diamond drilling programmes which will commence as soon as the recently acquired drill rigs arrive on site later this quarter.”

The planned exploration programmes to be completed on the mining and prospecting licenses at Kilimapesa include early trenching work and bulk sampling and also both surface and underground exploration drilling planned to increase the Company’s JORC compliant resources as well as to improve the knowledge and quality of the existing 671,400 ounces of resource.

This initial trenching work commenced during September 2021 and has focussed on previously identified high priority targets within the prospecting permit. The programme was implemented following approval by the Company’s Board of the new exploration strategy put forward by the recently expanded geological team and was based on a thorough and detailed analysis of previous exploration and mapping. This Caracal exploration strategy aims to not only expand the resource base significantly but to diversify into different areas and mineralisation types, and to define areas which present low-cost and shallow and near term, open pit mining opportunities to complement the existing resource and underground mining at Kilimapesa Hill.

One of the different mineralisation types identified is the older dolerites, which present in a 120⁰ oriented shear zone hosted gold mineralisation trend. This trend extends for approximately 7km within the prospecting permit and includes a number of historical colonial workings and artisanal workings. The Competent Persons Report contained within the Company’s Prospectus stated, “potential grades in these areas (Blue Ray; Vim / Rutha; Caldwell and other “colonial” workings) are 12g/ton with potential depths of between 30m and 70m”.

The initial exploration activities are based on six trenches that have been planned on the western boundary of the prospecting permit and directly south of the Kilimapesa Processing Plant. The trenches are being excavated to a depth of 3m and at spacings of 25m and are investigating the continuance of the known dolerite mineralisation, and in particular, the southern contact area.

Initial mapping of the first three trenches has confirmed that the mineralisation is associated with a Dolerite-Grey Wacke hanging wall contact and a Dolerite-Quartz Porphyry footwall contact and dilation zones within the Dolerite body. Both the hanging wall and footwall of the dolerites show mineralised continuity across the trenches as well as being consistent with the other historical workings referenced. Mineralisation is open in all directions.

The mineralised older dolerite zone is known from historical mapping to be up to 500m wide in areas on the prospecting permit. As previous artisanal and colonial shafts have focussed on either the Southern or Northern contacts, the six current trenches are exploring the southern contact, have yet to define the southern limit of mineralisation and mineralisation in all trenches are still open to the north and at depth

Trenching will be continued to expose the Southern contact of mineralisation in the six trenches across an initial strike of 125m out of an approximate 7km of strike. At the same time a bulk sample from the first trenches will be excavated and used for further testwork and analysis.

The trenching work is being undertaken prior to the commencement of the Company’s planned RC and diamond drilling programmes, which are due to commence later in the year once delivery of the two drill rigs to Kenya has been completed.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310 (“MAR”). With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

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

Caracal Gold plc

Gerard Kisbey-Green

Jason Brewer

info@caracalgold.com

Notes

Caracal Gold plc is an emerging 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 within 12-18 months from its listing in August 2021. To this end, it 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 ability to increase gold production to 25,000oz p.a. and the resource to +2Moz (current JORC compliant resources of approx. 671,000oz). Additionally, its experienced team, with proven track record in successfully developing and operating mining projects throughout Africa, is reviewing other complementary and strategically located gold mine and development projects in East Africa.

Caracal 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); a listing on the Nairobi Securities Exchange is underway.


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