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For personal use only Kogi Iron Limited 29 October 2021 KCM MINING LIMITED Ком KM QUARTERLY REPORT - OCTOBER 2021 Australian based iron ore and steel development company , Kogi Iron Limited ( ASX : KFE ) ( Kogi , Kogi Iron , or the Company ) and its 100 % owned Nigerian operating company , KCM Mining Limited ( KCM ) , is pleased to provide the quarterly activities report for the three months ending 31 October 2021 ( the Quarter ) . HIGHLIGHTS FOR THE QUARTER • Completion of the OPEX and operational reviews • • • Confirmation of the process design and flow sheet Commencement of the scoping study report Commencement of preliminary works for the testing program Agreement to acquire Macro Metals Limited INTRODUCTION The Quarter was a pivotal one for the Company , having successfully progressed its feasibility study activities for its Agbaja iron and steel project in Nigeria , together with a potential acquisition Macro Metals Limited ( Macro Metals ) which holds iron ore assets in the Pilbara region of Western Australia . The OPEX and operational reviews , recently completed as part of the Agbaja feasibility study activities , provided better than previously projected production energy consumption and a simplified production process , all leading to better than previously estimated operating costs . This , together with previous reports of long - term average billet pricing and the current price of importing steel into Nigeria , provides the Company with added confidence in the economics of the Agbaja Project . As a result , the Company has commenced Phase 2 of the feasibility studies program and has also commissioned a " scoping study " to run in parallel . The Scoping Study is expected to be completed by December 2021 . On 23 September 2021 , the Company announced its intention to acquire Macro Metals for an all scrip consideration and a maximum 1.5 % FOB royalty . Through the proposed acquisition , Kogi will welcome highly regarded mining investors Tolga Kumova , Evan Cranston , Ashley Pattison , Rob Jewson and Peter Gianni as cornerstone Kogi shareholders , and the vendors of Macro Metals have nominated Ashley Pattison to the Board of Kogi Iron . The projects to be acquired through the acquisition of Macro Metals represent a high quality portfolio of iron ore assets , considered to be highly prospective for shallow channel iron ore deposits with drill proven mineralisation . Further , subject to successful completion of the acquisition , nominees of Macro Metals will subscribe for a $ 1 million placement in Kogi at an issue price of 1.5c per share , with up to a further $ 1,000,000 targeted to be placed by Kogi , for a total placement of up to $ 2,000,000 . The Placement will provide funding for the next 12 months planned work program on the Macro Metals projects and for further working capital purposes . It is also noted the existing cash funds and funding facilities are specifically allocated for the purpose of the Agbaja Project and the current feasibility study . Kogi Iron Limited : Quarterly Report KOGI IRON