Tulu Kapi Update

KEFI (AIM: KEFI), the gold and copper exploration and development company focussed on the Arabian-Nubian Shield, with projects in the Federal Democratic Republic of Ethiopia and the Kingdom of Saudi Arabia, announces an update in relation to activities at the Company's Tulu Kapi Gold Project ("Tulu Kapi" or the "Project") in Ethiopia.

Project development commenced in March 2026 and, prior to the incident described below, remained on schedule and focused on commencing gold production in mid-2028. Progress to date has included:

• Commencement of a new access road, scheduled for completion in December 2026;
• Progress on the electricity connection, planned for completion before the end of 2027 to support commissioning activities;
• Ordering of plant and equipment, with deliveries scheduled throughout 2027; and
• Phased community resettlement and contractor arrangements, in accordance with the planned sequence for earthworks and other construction activities.

The Company has continued to implement its community resettlement and compensation programmes in accordance with the requirements of the applicable IFC Performance Standards. Project-affected persons have been consulted as part of the process and, where applicable, are receiving compensation, replacement housing and land, together with livelihood restoration support.

On Friday 4 September 2026, the Project experienced a serious security incident resulting in multiple fatalities involving security personnel and community members, including one Company employee. The Company is deeply saddened by the loss of life and extends its sincere condolences to all those affected.

The safety and wellbeing of the Company's employees, contractors and surrounding communities is the Company's highest priority. Accordingly, the Company has immediately suspended Project development activities while it engages with relevant community representatives, Ethiopian Government authorities and security stakeholders to determine the appropriate conditions for a safe and orderly resumption of activities. The Governments of Ethiopia and of the Oromia Region are committed partners in Tulu Kapi, and we are working together on both the immediate response and on securing the Project's long-term future in a manner which protects the community and all stakeholders.

The Company will not resume development activities until appropriate measures have been established to provide a safe and secure operating environment for its personnel and the surrounding communities.

Given the sensitive and ongoing nature of the situation, the Company is not able to provide further operational or security details at this time. This approach is intended to protect the safety and interests of Company personnel, community members and others affected by the incident.

The Company remains committed to the Project and its long-term development objectives. During the suspension period, the Company will carefully manage its expenditure and will defer further drawdown or deployment of Project financing until the circumstances have been fully assessed and appropriate measures are in place.

The Company has sufficient capital reserves and committed standby facilities to support its anticipated requirements during the period of suspension.

It is too early to assess what impact, if any, the suspension may have on the Project development timetable. The Company will provide further updates as soon as it is appropriate to do so.