Krasny-license: Operational update


Kopy Goldfields AB (publ) ("Kopy Goldfields" or the "Company") is hereby providing an operational update of the Krasny-license.

 -During the summer 2014 Kopy Goldfields entered into a Joint Venture with the Russian gold producer GV Gold over the Krasny license.
-A new exploration program is financed by GV Gold and the exploration is currently ongoing according to plan.
-The first results from the exploration program are in line with or sometimes better than expected.
-The results confirm the existing model of Krasny deposit, which has been developed based on previous years exploration, and accounts for 300 koz of gold to the depth of 200 meters.

Total Exploration Program and General Targets
The total in-fill exploration program primarily targets the upper structure of the Krasny mineralization which is closest to the surface and is limited to the depth of 200 meters. The target for the exploration program is to prove no less than 300 koz of gold reserves, although this upper structure is preliminary estimated to contain up to 30% of the previously reported Indicated and Inferred JORC resources of Krasny totaling 1.37 Moz.

The exploration program is scheduled for 18 months, including the reserve reporting both under the international JORC-code and the Russian GKZ-classification. The program will be developed in two stages.

Exploration Stage 1
Within Stage 1, the exploration activities aim to confirm the existing model of the Krasny mineralization for 840 meters along the strike. This stage includes 7,415 meters of core drilling in 48 holes and 1,733 meters of trench sampling and shall be completed by the end of November 2014.

The budget for Stage 1 is USD 3 million. The results from this Stage 1 are successful if they confirm:
· A continuity of gold mineralization between drill fences #39 and #57 (720 meters) and to the depth of 150-200 meters.
· The following basic financial modelling parameters: o Gold reserves of 280-373 koz o Average gold grade of 2 g/t o Minimum thickness of ore bodies of 5 meters

Exploration Stage 2
Commence of exploration activities under Stage 2 will depend on the results from Stage 1, and include further 8,190 meters of diamond drilling in 32 holes. The main objective of this Stage 2 is Pre- Feasibility Studies (PFS) and an assessment of the mineralization further along the strike and to the depth in the central part of the structure. It also includes gold processing tests and a recovery study, engineering drilling for PFS, as well as GKZ and JORC reporting. The budget for Stage 2 is USD 3 million. It is scheduled until July 2015 (not including timing for the GKZ reporting).

GV Gold covers the total budget of the USD 6 million exploration program. GV Gold has however the right to stop further exploration following completion of Stage 1.

Intermediate results and future production
Following the successful completion of Stage 1 and 2, the Krasny project will move into Feasibility Studies (FS) and the first production is realistic by the end of 2016. The projected production capacity of the mine and plant is preliminary estimated at 40-60 koz and will be further revised during FS.

Exploration activities under Stage 1 were commenced in mid July 2014. By the end of August 2014, eight drill holes were completed and the ninth hole was in process, totaling 1,331 meters in profiles 42 and 44. In addition, 700 meters of exploration trenches were developed. The drilling is developed by an independent Russian contractor called "OOO Prikladnaya Geologiya" from Krasnoyarsk city of Russia which provided drilling services on the Krasny site during the years 2011-2013. Currently one rig is in operation and a second rig will be added during September 2014.

Based on the first assay tests received, covering 1,414 samples from drilling and trenching, we can make some intermediate comments over the exploration results. So far, we see that the new results are in line with previous results from 2011-2013 as well as our expectations, which mean that the geological interpretations are confirmed and the modelling parameters are in line with the projections. The results includes 7.5 m with average gold grade of 3.76 g/t in hole #141532, 27 m @ 1.96 g/t (hole #141434), 16 m @ 1.16 g/t (hole #141533), 5 m @ 2.01 g/t (hole #141534), and 24 m @ 1.43 g/t (trench 143511).

On Figure 4 and Figure 5 in Attachment 1, location and grades of the new and previous holes in profiles 42 and 44 can be seen. In the table below the comparisons between old and new results are presented.

For the complete press release including tables, images and maps see attached document. För pressmeddelande på svenska se bifogat dokument (Swedish).

Stockholm, September 9, 2014

For more information, please contact:
Mikhail Damrin, CEO, +7 916 808 12 17,
mikhail.damrin@kopygoldfields.com

Tim Carlsson, CFO, + 46 702 31 87 01,
tim.carlsson@kopygoldfields.com

The following documents can be retrieved from beQuoted
Kopy Goldfields Pressrelease 2014-09-09 (English).pdf
Kopy Goldfields Pressrelease 2014-09-09 (Swedish).pdf

Mer information från beQuoted
Nyhetsrum Kopy Goldfields (Swedish)

About Kopy Goldfields AB
Kopy Goldfields AB (publ), listed at NASDAQ OMX First North in Stockholm is a gold exploration and production company operating in one of the most gold rich areas in the world; Lena Goldfields, Bodaibo, Russia. The company holds 11 bedrock exploration- and production licenses on 1,963 sq km. The target for Kopy Goldfields is to create value by identifying and acquiring high potential gold projects, prospect and explore them until the stage when it can be either sold out for cash or developed in cooperation with another partner under JV agreement.

Kopy Goldfields AB applies International Financial Reporting Standards (IFRS), as approved by the European Union. Aqurat Fondkommission acts as Certified Adviser, contact number: +46-8-684 05 800.

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Attachments

kopygoldfields_press_140909_eng.pdf kopygoldfields_press_140909.pdf