Kopy Goldfields Interim Report January - June 2013

Summary of key ratios, second quarter 2013 · The Company does not yet report any revenue · Net income MSEK -6.5 (-4.2) · Earnings per share before and after dilution SEK -0.29 (-0.37) · Total cash flow of MSEK -0.9 (-14.6) · Evaluation work and licenses MSEK 3.9 (7.8) · Cash and cash equivalents amounted to MSEK 1.6 (23.6) at period end Significant events during second quarter 2013 A scoping study was done for the Krasny project and was released in April 2013. The scoping study confirms a potential for 60 koz of open pit production of gold per year during 18 years and financial returns of USD 360 million in free cash flow. Highlights of the scoping study are the following: · Total gold resources mined: 1.3 Moz (40.7 tons) at an average grade of 1.53 g/t · Annual gold production: 62.8 koz (1,955 kg) · Undiscounted project value: USD 362 million (USD 458 million pretax) · Discounted project value (NPV): USD 192 million at 5% discount rate (USD 101 million at 10%) · IRR: 23.9% · Annual average revenue from gold sales: USD 105 million · Annual average profit before tax: USD 26.5 million · Capital costs (plant, open pit, infrastructure): USD 147 million · Production costs (mining and processing): 855 USD/oz · Average Gold price: 1,670 USD/oz (sensitivity analysis shows positive cash flow at a gold price of 1,240 USD/oz) · Plant capacity: 1.5 million tons per year · Average strip ratio: 4.6 m3/t · Overall recovery: 85% · Life of mine: 18 years In June 2013 new results from the latest exploration program on Krasny were presented. The program included follow-up drilling of 2,495 meters and resampling of 343 meters of core from previous drilling programs. · With the results it was confirmed that the Krasny mineralization is traced by means of drilling for totally 1,668 meters along the strike. · The resampling of formerly extracted core returned positive results, adding mineralized sections to the upper structure. This implies more resources closer to the surface and enhanced economics of gold mining with low stripping ratio. On June 12, 2013, the Board of Directors decided, with authorization from the AGM 2013, to issue shares with preferential rights for existing shareholders. · The share issue was finalized and registered in July-August 2013 and all effects of the share issue will be accounted for during the 3rd quarter 2013. Further cost reductions were implemented and significant personnel reductions were made. The Company reviewed the asset portfolio and identified licenses and other fixed assets to divest. · The cash flow effect from the year 2013 cost cutting program amounts to SEK 4 million on a rolling 12 months basis and is expected to be fully implemented as from the 4th quarter. · In August 2013, the Company announced the filing of an application for return of two prospecting licenses to the Russian state. This implies that the Company accounts for a write down of the capitalized acquisition and exploration costs of KSEK 4,953 as per June 30, 2013. Significant events after the reporting period In July 2013 the preferential rights issue was finalized and 7,394,636 shares were subscribed and MSEK 11.1 was raised. Remaining shareholder loans of MSEK 1.3 were set-off against shares and a short term loan of MSEK 2.0 was repaid. The share issue was registered by the Swedish Companies Registration Office on August 20, 2013. The Extra General Meeting, held on August 14, 2013, resolved to re-establish the share capital again after the share capital reduction approved by the Annual General Meeting on June 4, 2013. This is done by transferring funds from non-restricted equity to the share capital, in combination with the recent share issue. Following this decision, the Extra General Meeting resolved to decrease the share capital without redemption of shares by transferring funds to non-restricted equity. All decisions where in accordance with the proposal from the Board of Directors. On August 16, 2013, the Company announced the filing of an application for return of two prospecting licenses to the Russian state. The return of the licenses is not expected to have any negative impact on the cash flow, but implies a write down of the capitalized acquisition and exploration costs of KSEK 4,953, which is affecting the net income as per June 30, 2013. For the complete press release including tables, images and maps see attached document. För pressmeddelande på svenska se bifogat dokument (Swedish). Stockholm, August 22, 2013 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 2013-08-22 (English).pdf Kopy Goldfields Interim Report Q2 2013 (English).pdf Kopy Goldfields Pressrelease 2013-08-22 (Swedish).pdf Kopy Goldfields Delårsrapport Q2 2013 (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 major owner is Eldorado Gold Corp. The company holds 100% of 15 bedrock exploration- and production licenses on 2,338 sq km. During the third quarter 2013, the Company has filed an application to return two licenses to the Russian state and after returning the licenses, the Company will have 13 licenses on 2,107 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. The Share Ticker: KOPY www.nasdaqomxnordic.com/firstnorth/ Outstanding shares: 30,246,257