Operational update August 2016 OPERATIONAL UPDATE AUGUST

OPERATIONAL UPDATE AUGUST 2016 Kopy Goldfields AB (publ) ("Kopy Goldfields" or the "Company") hereby provides an update of the Companys operations: Stage 3 of the exploration and development program for the Krasny project is developing in accordance with schedule: 37 drill holes are completed, accounting for 9,052 meters of core drilling or 62% of the total drilling program for 2016. In addition, 1,886 meters of trench sampling are done. Total 9,216 fire assay tests for gold have been received. The exploration results confirm our modelling of the Lower structure mineralization. New high grade intervals have been discovered. Drilling for rock collection for mineral processing test has been completed and the sample is prepared for shipment to the lab. The compliance paperwork required for the Kopylovsky deposit pilot testing will be finalized within September 2016. The exploration program on the Northern Territories develops on plan: 2,902 samples have been sent to the lab covering 2/3 of the prospected area. This operational update further develops the information provided in press release 13/2016, dated June 9, 2016 and 14/2016 dated July 26, 2016 KRASNY CENTRAL AND KRASNY NORTH EXPLORATION RESULTS Drilling of the Stage 3 exploration program was commenced in April 2016, and, so far, 37 drill holes, accounting for 9,052 meters of core drilling, are completed, as well as 1,886 meters of trench sampling. In total, 9,216 fire assay tests for gold have been received (see Table 1 in the Attachments for mineralized intervals above 0.4 g/t cut-off grade). Most of the drilling activities during July and August have been focused on collection of rock for development of a mineral processing flow chart. Since these holes were drilled within the Central part of the Krasny deposit (Profiles #41 and #42, see Figure 4 and Figure 6 in the Attachments) and mostly within the Upper structure, they increase the density of drilling within the area of the previously approved Russian GKZ reserves, which in turn will lead to an update of the Russian reserves into a higher reserve category in the future. The required volume of rock was accumulated and the sample will shortly be sent for bulk mineral processing study, resulting in a flow chart development. From the exploration in-fill drilling of the Lower structure during July and August, we received further confirmation for our modelling of gold grade and volume distribution within the Lower structure. Interestingly, drill hole #141748 within Profile #50 on the Eastern flank of the mineralization (see Figure 4 and Figure 7 in the Attachments) returned very high grades, somewhat uncommon for the rest of the deposit: we were able to outline a 41 meters interval with an average grade of 4.71 g/t. Based on this promising result, we decided to continue with more drilling along the Eastern strike of Krasny with the target to confirm an extension of the Lower structure to the east. We proceed with exploration on the Krasny North mineralization (see Figure 5 in the Attachments). Both trench sampling and drilling are being done and upon getting new assay results from the lab, we hope to report new results in the next operational update. We continue to note visible gold grains within the trench samples. Based on the Stage 3 exploration results on Krasny we are glad to report the following most significant mineralized intervals (at cut-off grade 0.4 g/t): 41 meters with an average grade of 4.71 g/t and 25 meters with an average grade of 2.02 g/t in hole #141748, 56 m @ 2.13 g/t (hole #141747), 19 m @ 2.588 g/t and 28 m @ 1,611 g/t (hole #141744), 40 m @ 2.28 g/t (hole #141751), 13 m @ 3.94 g/t and 15 m @ 1.89 g/t and 14 m @ 3.59 g/t (hole #141481), 25 m @ 1.32 g/t (hole #141486), 23 m @ 1.58 g/t (hole #141678), 31 m @ 1.39 g/t (hole #141746), 22 m @ 1.514 g/t (hole #141610), 7 m @ 3.493 g/t (hole #141612). See Table 1 in the Attachments for more assay data for the drilled boreholes. NORTHERN TERRITORIES AND KOPYLOVSKY PROJECTS Stage 1 of the prospecting program on the Northern Territories (NT) project is developing according to plan. By mid-August, we had covered 2/3 of the 1,852 km2 (182,500 ha) license area with stream sediment survey. Two batches for a total of 2,902 samples have been sent to the lab. We plan to finalize the program by October and have all results by the end of 2016. The 2016 exploration program targets to generate 20-26 targets (each target covering approximately 10 sq km) for the next stage of exploration, which will be a detailed geochemical and geophysical survey with a density of 200 samples per sq km. This will in turn will be followed by trench sampling and drilling. Within the Kopylovsky project, we target to renew exploration and mining permits for the license in order to update and extend the license terms and run a bulk sample test to confirm historic grades and volume of mineralization. The mining plan has already been developed and we currently wait for the forestry logging permits to be issued before filing the mining permits which is expected during September-October 2016. NEXT STEPS We forecast the following events during the next few months: Fall 2016 - Release full Krasny JORC report November 2016 - Complete the 2016 Krasny Exploration and Development Program End 2016 - Release results of the 2016 Krasny exploration program End 2016 - Release results of Northern Territories geochemical survey Early 2017 - Release results of the Krasny alluvial exploration program and take decision over early alluvial production (ahead of Krasny bedrock production) Early 2017 - Decision over development of the Krasny Central bedrock project into construction Operation updates will be released on a regular basis. For the complete press release including tables, images and maps see attached document. För pressmeddelande på svenska se bifogat dokument (Swedish). Stockholm, August 31, 2016 For more information, please contact: Mikhail Damrin, CEO, +7 916 808 12 17, mikhail.damrin@kopygoldfields.com mailto:mikhail.damrin@kopygoldfields.com Tim Carlsson, CFO, + 46 702 31 87 01, tim.carlsson@kopygoldfields.com mailto:tim.carlsson@kopygoldfields.com The following documents can be retrieved from beQuoted Kopy Goldfields Pressrelease 2016-08-31 English.pdf - http://www.bequoted.com/beQPress/download.asp?Id=18645 Kopy Goldfields Pressrelease 2016-08-31 Svenska.pdf - http://www.bequoted.com/beQPress/download.asp?Id=18646 This information is information that Kopy Goldfields is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 8.50 CEST on August 31, 2016. About Kopy Goldfields AB Kopy Goldfields AB (publ), listed at NASDAQ 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 and one alluvial license covering in total 1,963 sq km, of which the Krasny licenses (bedrock and alluvial) are held 49% by the company. The preliminary forecast is to be in production in 2018. The target for Kopy Goldfields is to become a near-term gold producer in cooperation with a producing 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. The Share Ticker: KOPY http://www.nasdaqomxnordic.com/shares/microsi...t=SSE77457 http://www.nasdaqomxnordic.com/shares/microsi...t=SSE77457 Outstanding shares: 59,899,541