Business Development Update

18 March 2025

Katoro Gold PLC

('Katoro' or the 'Company')

Business Development Update

Strategic focus on high impact exploration for critical minerals in Ontario, Canada and conclusion of the Haneti Project review

Katoro Gold PLC (AIM: KAT), the strategic energy and precious minerals exploration and development company, is pleased to announce completion of the acquisition of 100% of the share capital of 31 Explore Ltd ("31 Explore") in a premium-priced warrant-only transaction, as previously announced on 10 February 2025.3

31 Explore controls a portfolio of mining claims in Ontario, Canada which are prospective for a range of critical minerals1. Following the expansion of the Pearl Lithium Project, announced 18 February 20252, the portfolio includes 641 operational cell claims. Katoro has assigned priority to a subset of properties within the total claims package, which comprise of six lithium projects and one rare earth element project. These priority projects have a combined total area of 8,548 hectares (85.48 km2) made up of 410 claim blocks across 11 properties. The priority projects are located in the same region of Northwest Ontario as the Company's 100%-owned White Pine Uranium Project.

Further to the announcement dated 10 February 20253 relating to the acquisition of 31 Explore, the Company has issued 375,000,000 warrants priced at 0.10p and 375,000,000 priced at 0.15p. The warrants have a life of 4 years subject to an initial 12-month lock in.

HIGHLIGHTS

· Acquisition of 31 Explore completed for premium-priced warrants;

· Portfolio includes claims prospective for lithium-bearing pegmatites, as well as rare-earth elements (REE);

· Excellent operational synergy with the Company's 100%-owned White Pine Uranium Project;

· Appointment of James Tosh to Board of Directors (subject to stock market due diligence underway); and

· Strategic focus on critical minerals exploration in Ontario, Canada following conclusion of Haneti Project review.

Patrick Cullen, Chief Executive Officer of Katoro, commented:

"Today's confirmation that Katoro has now completed the transaction and increased the Company's critical minerals footprint in Ontario is significant, my thanks to 31 Explore and all involved. We are looking forward to welcoming James Tosh onto the Board.

I believe the timing is excellent, with critical minerals topping the agenda globally as well as in Canada. The news out of Canada is extremely positive with strong support from provincial and national government voiced in the press and in official announcements. The Government of Ontario have recently announced conditional funding to assist in establishing lithium processing facilities at the City of Thunder Bay, which is geographically and infrastructurally central to our lithium project portfolio.

Our technical focus right now is the coordination and assignment of resources to the key activities that meet the short-term exploration goals we have set and to develop a robust pipeline of targets that will lead to exploration success.

I recently attended the PDAC conference in Toronto where I met, in person, with a range of local service providers. We are now in the process of appointing service contracts. It's an exciting period ahead for the Company and I'm looking forward to hitting the ground running once the field season opens in Northwest Ontario in late April or early May. I look forward to providing further business updates in the coming weeks."

ACQUISITION DETAILS

Katoro has acquired 100% of 31 Explore Ltd and its wholly owned subsidiaries in exchange for a total of 750,000,000 Acquisition Warrants distributed to the shareholders of 31 Explore. The Acquisition Warrants comprise 375,000,000 warrants with an exercise price of 0.1p and 375,000,000 warrants with an exercise price of 0.15p.

The Acquisition Warrants are valid for a period of four years and are subject to a lock in restriction period of 12 months. This lock in restriction may be lifted within the first 12 months subject to an exception whereby the five-day volume-weighted asset price (VWAP) remains above 0.27p. If the five-day VWAP falls below 0.27p the restriction is reinstated.

BOARD APPOINTMENTS

Mr James Tosh, a co-founding director of 31 Explore Ltd, will be appointed Non-Executive Director of the Company, conditional only on the satisfactory completion of the already underway regulatory (including Nominated Adviser) due diligence requirements which is a standard procedure prior to the appointment of directors onto the board of an AIM company.

PROJECT LOCATIONS

Figure 1: Katoro High Priority Lithium and REE Project Locations, Ontario, Canada

Katoro has assigned priority to seven project areas, which comprise six lithium projects and one REE project, located in Ontario as shown in Figure 1 above. The Company's White Pine Uranium Project is indicated for reference.

ACQUISTION PROJECTS SUMMARY

The projects have been selected based on the technical merits that underlie their critical minerals potential. Additional criteria includes proximity to established infrastructure, especially paved roads and power infrastructure. This accessibility is critical in support of cost-effective exploration activities and development.

The geology of the acquired projects includes mapped, but previously untested or un-assayed pegmatites in close proximity to intrusions that are known to have generated known lithium-caesium-tantalum (LCT) mineralisation.

Historical exploration reports and government data have been used to target and assess the prospectivity of these projects. In particular, extensive work by the Ontario Geological Survey as part of Operation Treasure Hunt-a multidisciplinary study investigating Ontario's mineral potential using geochemical, geophysical, and geological methods-has provided valuable insights, with all projects having either anomalous or highly anomalous lake sediment results for elements associated with LCT pegmatites4, such as lithium, caesium, niobium and REE.

Pearl (Lithium): As discussed in a news release announced 18 February 20252, Pearl has recently been expanded from 880 hectares (ha) to 1,475 ha to encompass multiple untested inferred pegmatites identified though LiDAR imagery in the west of the property, these inferred pegmatites, and historically mapped pegmatites5 in the east of the property are in close proximity to waterbodies where lake sediments are recorded as having anomalous/highly elevated results6,7 for lithium and elements associated with LCT pegmatites3.

Wapesi Projects (Lithium): The three Wapesi properties (Mining Creek, Altimeter Bay and Sunlight Bay), with a total area of 2,109 ha, are associated with the Wapesi Batholith in the English River Sub-Province, an area of intense lithium exploration and discovery. The Wapesi Batholith is considered fertile and known to contain multiple mapped but untested pegmatites. The properties are located in areas of anomalous or very high lake sediment6,7 assays resulting from elements associated with LCT pegmatites4; Mining Creek and Sunlight Bay are located at the interface between the granitic intrusion and the metasedimentary 'country rocks', a prospective location for LCT pegmatites4, while Altimeter Bay is in the centre of the intrusion over elevated lithium in lake sediments. 

Oba (Lithium): The 1,175 ha property is located within a large (90 km x 40 km) felsic intrusion and has multiple mapped8 occurrences of pegmatites in the vicinity of the highly anomalous lithium, caesium and beryllium-in-lake sediment values9. The project has never been subject to lithium focussed exploration.

Burrows Projects (Lithium): The Burrows Projects includes three properties with a total area of 2,400 ha located in an area outlined by the Ontario Survey as a target area for grassroots lithium exploration10 based on elevated lithium and caesium deep lake sediment assays, and due to the local geology being recognised as having potential to host lithium-bearing pegmatites4. Previous exploration 11, 12 within 2 km of the properties has drilled 5-metre thick pegmatites which were never assayed for lithium. The projects are under-explored for critical minerals, and thus offer significant exploration upside.

Iva (Lithium): This 530 ha property is located along trend from a felsic dyke13, with highly anomalous lithium in lake sediment results14 in the lake to the northeast, and anomalous lithium, beryllium and niobium in lake sediment results elsewhere. Iva is positioned at the interface between granite and metasedimentary lithologies, a favourable setting for LCT pegmatites4. Nearby lithium projects highlight the region's potential: Patriot Lithium's Bull Project is 11 km east, and the Niobe-Nym Lakes LCT pegmatites lie 20 km away-both associated with the same intrusion as Iva. No exploration is known to have been completed on the property.

Ellie (Lithium): This 642 ha property is centred on anomalous lithium, caesium and beryllium lake sediment14, 15 assay results, and at the interface between the granite and the metasedimentary lithologies16. The project has never been subject to lithium focussed exploration. .

Bay Road (Rare Earth Elements): Bay Road, with an area of 425 ha directly south of the fertile White Otter Batholith, is centred on 6 km of mapped felsic intrusive rock13, this intrusive feature appears to have a relationship with highly anomalous REE's14,17,18 in-lake-sediment (dysprosium, neodymium), but has never been formally tested, and no records of historical exploration exist on the property.

HANETI REVIEW

Katoro has completed an extensive technical review of further opportunities at Haneti, considering available options for cost-effective exploration and the value available from potential new opportunities. Given the levels of capital required, and the Company's strategic focus on its critical minerals portfolio in Ontario, the Board have concluded that funds going forward will be focused in Canada and have decided to cease further investment at Haneti.

UPDATE ON PREVIOUS FUNDRAISE

Following the previously announced3 fundraise, one subscriber's subscription monies of £20,000 remain outstanding. That subscriber has confirmed they will arrange the transfer. The Company will make a further announcement regarding the issue and admission of the additional shares on receipt of the outstanding subscription amount which is expected to be received shortly.

REFERENCES

1: Ontario Ministry of Mines. 2022, Ontario's Critical Minerals Strategy 2022-2027: Unlocking potential to drive economic recovery and prosperity, https://www.ontario.ca/page/ontarios-critical-minerals-strategy-2022-2027-unlocking-potential-drive-economic-recovery-prosperity.

2: Katoro Gold PLC, 18 February 2025, RNS: Update on 31 Explore Ltd Portfolio, https://polaris.brighterir.com/public/katoro_gold/news/rns/story/xjzn01r.

3: Katoro Gold PLC, 10 February 2025, RNS: Conditional Equity Financing and Strategic Expansion, https://polaris.brighterir.com/public/katoro_gold/news/rns/story/w97o21x.

4: Bradley, D.C., McCauleyt, A.D., Stillings L.M., 2017, Mineral-Deposit Model for Lithium-Cesium-Tantalum Pegmatites, USGS.

5: Fenwick, K.G., 1967, Whitemud Lake area (Fredart-Whitemud lakes area), District of Kenora (Patricia Portion), Ontario Geological Survey, P0412

6: Ontario Geological Survey, 2001, Lake Sediment Analytical Data for the Sioux Lookout-Bamaji Lake Area: Operation Treasure Hunt, MRD088

7: Ontario Geological Survey, 2002, Lake Sediment Geochemical Data from the Perrault Falls Survey Area, Northwestern Ontario: Operation Treasure Hunt, MRD106

8: Siragusa, G.M. 1977, Esnagi Lake, Algoma District - 2000 Series Map, M2382

9: Jackson, J.E. 2002, Lake Sediment and Water Geochemical Data from the Kabinakagami Lake Area, Northern Ontario (MRD110)

10: Paju, G.F. 2019. Beardmore to Geraldton: A grassroots look for lithium in a prolific gold camp; in Report of Activities 2018, Resident Geologist Program, Thunder Bay North Regional Resident Geologist Report: Thunder Bay North District; Ontario Geological Survey, Open File Report 6352, p.55-71

11: Hudson Bay Exploration & Development Co Ltd, 1973, Hudson Bay Exploration And Development Company Limited, Final Report On Exploration, Exploration Assistance Agreement. Geraldton - Beardmore Area, Thunder Bay Mining Division - Ontario, Longlac Project; Contract No. Gb-25 (Assessment Report Number: 42E15NE8354 )

12: Moly-Ore Mines Ltd, 1965, Report on Diamond Drilling Program on Moly Ore Mines Limited, Burrows Lake Property, Area of Burrows Lake, Port Arthur Mining Division, (Assessment Report Number: 42E15NW0002)

13: Santaguida, F., 2001, Ontario Geological Survey,. Precambrian Geology Compilation Series - Quetico Sheet, 2000 Series Map (M2663)

14: Dyer, R.D., 1999, Lake Sediment and Water Geochemistry Data from the Atikokan-Lumby Lake Area, Northwestern Ontario (MRD043)

15: Jackson, J.E., 2001, Lake Sediment and Water Geochemical Data from the Shebandowan Lake Area, Northwestern Ontario (MRD076)

16: Pirie, J. 1978, Ontario Geological Survey Crooked Pine Lake, Rainy River District Geological Map #M2405

17: Jackson, J.E. 2003, Lake Sediment Geochemical Data from the Ignace Survey Area, Northwestern Ontario: Operation Treasure Hunt (MRD118)

18: Dyer, R.D., Burke, H.E. 2012, Lake Sediment and Water Geochemical Data from the Mine Centre Area, Northwestern Ontario (MRD296)

QUALIFIED PERSON STATEMENT

The technical information contained in this disclosure has been reviewed and approved by Mr Nick O'Reilly (MSc, DIC, MIMMM QMR, MAusIMM, FGS), who is a qualified geologist and acts as the Qualified Person under the AIM Rules - Note for Mining and Oil & Gas Companies. Mr O'Reilly is a principal consultant working for Mining Analyst Consulting Ltd which is providing independent technical review to Katoro Gold PLC.

GLOSSARY

Critical mineral - while there is no universally accepted definition of a critical mineral, it is commonly agreed that critical minerals have specific industrial, technological or strategic applications for which there are few viable substitutes. These minerals are economically important and can be subject to supply risk.

Felsic dyke - is a tabular or sheet-like intrusion of igneous rock that is predominantly composed of felsic minerals, such as quartz, feldspar, and muscovite. They often contain exotic or rare minerals and elevated concentrations of elements, and thus are of interest to exploration companies.

PDAC - the Prospectors & Developers Association of Canada which, annually in Toronto, hosts the world's premier mineral exploration and mining convention, bringing together 27,000 attendees from over 135 countries.

Pegmatite - igneous rock with a very coarse, irregular texture that forms during the final stage of a magma's crystallisation.

Lithium-caesium-tantalum (LCT) pegmatites are a principal source of lithium and comprise a compositionally defined subset of granitic pegmatites. The principal lithium ore minerals are spodumene, petalite, and lepidolite; caesium mostly comes from pollucite; and tantalum mostly comes from columbite-tantalite. Tin ore as cassiterite and beryllium ore as beryl also occur in LCT pegmatites.

LiDAR - Light Detection and Ranging is a remote sensing method that uses light in the form of a pulsed laser to measure ranges (variable distances) commonly used to generate precise, three-dimensional information of the elevation of the Earth's surface.

VWAP - the volume weighted average price of Katoro's shares on the London Stock Exchange.

This announcement contains inside information as stipulated under the Market Abuse Regulations (EU) no. 596/2014.

**ENDS**

Enquiries:

Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated Adviser and is authorised and regulated by the FCA. Beaumont Cornish's responsibilities as the Company's Nominated Adviser, including a responsibility to advise and guide the Company on its responsibilities under the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed solely to the London Stock Exchange. Beaumont Cornish is not acting for and will not be responsible to any other persons for providing protections afforded to customers of Beaumont Cornish nor for advising them in relation to the proposed arrangements described in this announcement or any matter referred to in it.