Krasny-license: Operational update October 2014

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

- The exploration program which is done in cooperation with GV Gold continues in accordance with plan. 4,157 meters has been drilled and 1,712 meters of exploration trenches have been developed as per October 16, 2014. 
- So far, the exploration results still confirm the existing geological model of the Krasny deposit, which accounts for 300 koz of gold to the depth of 200 meters. 
- New mineralized intervals discovered increase the upside potential. 
- These intermediate results are part of the exploration Stage 1, which will be finalized by the end of November.

This operational update further develops the information provided in press release 10/2014, dated September 9, 2014. For background information about the total exploration program and general targets, please refer to Attachment 1 to this press release.

Exploration stage 1
Exploration activities were commenced in mid July 2014. By October 16, 25 drill holes were completed and two holes were in process, totaling 4,157 meters of core drilling (see Figure 4 in attachment 1 for details). In addition, 1,712 meters of exploration trenches were developed. The drilling is done 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 two rigs are in operation and a third rig will be added by October 20, 2014.

Intermediate results
Based on the assay tests received, covering 5,631 samples from drilling and trenching, we can make some intermediate comments over the exploration results. So far, we see that the new exploration results continue to confirm the existing geological model and new mineralized intervals discovered increase the upside potential.

The trench sampling provides results from the surface and these results confirm an outcropping mineralization along the whole strike of the exploration area (approximately 840 meters), reaching 45 meters visible width at surface in the trench #143523, see Figure 5 in attachment 1 for details. From Figure 5, one can see that the new trenches #143511 and #143523 on the western side and trench # 143510 of the eastern side confirm extension of the outcropping part of the mineralization beyond the blue contour representing the existing model which was used for the previous resource estimation. Both the most western new trench #143523 and the most eastern new trench #143510 contain mineralized intervals, which implies that the outcropping part of mineralization is still open further along strike.

By October 16, drilling in profiles #40, #41, #42, #43, #44 and #45, see Figure 4 in attachment 1, has been completed and drilling along profiles #39 and #46 was in process. Preliminary in-house resource estimation done for the area between the profiles #40 and #44 (at 0.6 gr/t cut-off grade) comparing old resources based on the 2011-2013 results and new resources based on all data (incl new results), confirm 6.6 % increase of gold and 4 % decrease in average grade.

Cross sections along profiles #40, #42, #43 and #44 are presented in Figures 6, 7, 8 and 9 in attachment 1. The most interesting mineralized intervals include 13 m with average gold grade of 2.961 g/t in hole #141507, 25 m @ 1.779 g/t (hole #141508), 11.5 m @ 2.251 g/t (hole #141509), 34 m @ 1.333 g/t (hole #141532), 27 m @ 1.955 g/t (hole #141534), 21 m @ 1.977 g/t (hole #141548), 9 m @ 2.508 g/t (hole #141554), 42 m @ 1.199 g/t (hole #141555), 12.6 m @ 1.942 g/t (hole #141556), 11.5 m @ 2.2286 g/t (hole #141561), 6 m @ 3.656 g/t (hole #141573). See Table 1 in attachment 1 for more assay data for the drilled boreholes.

For the complete press release including tables, images and maps see attached document.

För pressmeddelande på svenska se bifogat dokument (Swedish)

Stockholm, October 20, 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 2014-10-20 (English).pdf
Kopy Goldfields Pressrelease 2014-10-20 (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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