Askari Metals Advances Ethiopian Expansion with Nejo Acquisition and Rights Issue

Strategic Acquisition in a Tier-1 Exploration Belt

Askari Metals Limited has taken a significant step forward in its African exploration strategy by executing a binding agreement to acquire the Nejo Gold and Copper Project in central-western Ethiopia. Spanning over 1,174 square kilometres, this district-scale tenure lies within the Arabian-Nubian Shield, a globally recognised but underexplored gold-copper province. The project’s proximity to the 1.7 million ounce Tulu Kapi Mine and the 3.4 million ounce Kurmuk Mine places Askari firmly within a proven geological corridor known for hosting large-scale mineral deposits.

Historical exploration at Nejo has revealed high-grade gold and copper mineralisation, yet the area has not been systematically explored with modern techniques. Askari aims to leverage this foundation with a data-driven approach, commencing an initial drilling campaign in the fourth quarter of 2025. The campaign will focus on drill-ready targets such as Guji, Komto 1, and Komto 2, alongside copper mineralisation at the Katta Target.

Complementary Portfolio and Operational Readiness

The Nejo acquisition complements Askari’s existing portfolio in Ethiopia’s Adola Greenstone Belt, which covers 460 square kilometres adjacent to Ethiopia’s only modern gold mines at Lega Dembi and Sakaro. These projects have collectively produced over three million ounces of gold, underscoring the region’s exploration potential. Askari is fast-tracking early-stage exploration across this belt, focusing on identifying additional high-grade gold targets.

Operationally, Askari has secured all necessary work permits and visas, enabling its geological team to mobilise for field activities scheduled to begin in November 2025. The company has also obtained written approvals and regional support from the Federal Ministry of Mines and the Oromia Mineral Development Authority, reflecting strong stakeholder engagement and regulatory compliance.

Funding and Corporate Realignment

To underpin its accelerated exploration program, Askari has launched a non-renounceable Rights Issue, offering one new share for every three held at $0.01, accompanied by two free attaching options. Major shareholders, including Executive Director Gino D’Anna, have already committed to their full entitlements, signalling confidence in the company’s strategic direction. Concurrently, Askari completed the sale of its Australian subsidiary, First Western Gold Pty Ltd, for A$850,000 in cash and shares, allowing the company to sharpen its focus on African assets.

Cost reduction initiatives remain a priority to maximise capital allocation towards low-cost, high-impact exploration in Ethiopia and Namibia. Despite a modest cash balance of approximately $67,000 at quarter-end, Askari benefits from undrawn working capital facilities and strong shareholder support, positioning it well for upcoming exploration expenditures.

Looking Ahead

The imminent field campaign will combine geological mapping, trenching, soil sampling, and geophysical surveys to refine drill targets across two major gold corridors, the Guliso Trend and the Guji–Gudeya Trend, covering nearly 20 kilometres of strike. This systematic approach aims to delineate a JORC-compliant Mineral Resource, marking a transformational phase for Askari Metals as it seeks to establish itself as a Tier-1 gold and copper explorer in Ethiopia.