Kopy Goldfields is a leading Swedish gold exploration and production company operating in the most renown gold mining regions of Russia. Kopy Goldfields' strategy is to combine Russian geologic knowledge and science with international management, "best industry practices" and modern and efficient technology to identify and develop mineral deposits in a cost-efficient, safe and transparent way. The Company is listed on NASDAQ First North Growth Market in Stockholm.

Kopy Goldfields applies International Financial Reporting Standards (IFRS), as approved by the European Union. Hagberg & Aneborn Fondkommission acts as Certified Adviser, contact number: +46 8 408 933 50, e-mail: [email protected].

The Share

Ticker: KOPY

http://www.nasdaqomxnordic.com/shares/microsite?Instrument=SSE77457

Outstanding shares: 886,005,575

Forward-looking statements

This press release contains forward-looking statements that reflect the Company's and the company group's intentions, beliefs, or current expectations about and targets for the Company's and the company group's future results of operations, financial condition, liquidity, performance, prospects, anticipated growth, strategies and opportunities and the markets in which the Company and the group operates. Forward-looking statements are statements that are not historical facts and may be identified by words such as "believe", "expect", "anticipate", "intend", "may", "plan", "estimate", "will", "should", "could", "aim" or "might", or, in each case, their negative, or similar expressions. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions. The forward-looking statements are subject to a number of risks and uncertainties, including, but not limited to, (i) changes in the economic, regulatory and political environments in the countries where Kopy Goldfields operates; (ii) changes relating to the geological information available in respect of the various projects undertaken; (iii) Kopy Goldfields' continued ability to secure enough financing to carry on its operations as a going concern; (iv) the success of its potential joint ventures and alliances, if any; (v) exchange rates, particularly between the Russian rouble and the U.S. dollar. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurances that they will materialize or prove to be correct. Because these statements are based on assumptions or estimates and are subject to risks and uncertainties, the actual results or outcome could differ materially from those set out in the forward-looking statements as a result of many factors, including but not limited to risks and uncertainties surrounding any gold production and exploration company at an early stage of its development. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this press release by such forward-looking statements. The Company does not guarantee that the assumptions underlying the forward-looking statements in this press release are free from errors and readers of this press release should not place undue reliance on the forward-looking statements in this press release. The information, opinions and forward-looking statements that are expressly or implicitly contained herein speak only as of its date and are subject to change without notice. Neither the Company nor anyone else undertake to review, update, confirm or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this press release, unless it is not required by law or Nasdaq First North Growth Market rule book for issuers.

Appendix 1

On 29 May 2020, Kopy Goldfields AB (publ) ("Kopy Goldfields") entered into an agreement with HC Alliance Mining Group Ltd. ("HCAM") and Lexor Group SA ("Lexor" and together with HCAM, the "AZ Shareholders") to acquire all shares in OOO Amur Gold Company Limited ("Amur Zoloto") through an in-kind share issue (Sw. apportemission) which is to be considered as a reverse takeover from Amur Zoloto. This reverse takeover ("The Transaction") was registered with the Swedish Companies Registration Office on 7 September 2020.

With the purpose of illustrating the hypothetical impact of the Transaction could have had if it had been executed prior to the beginning of financial year 2020 and the financial position as of 30 June 2020, Kopy Goldfields has prepared a pro forma income statement for the first six months of 2020 and 2019, and a pro forma balance sheet as of 30 June 2020. The purpose of the following consolidated pro-forma information is to report the hypothetical effect which the Transaction would have had on Kopy Goldfields' consolidated income statement for the six months period 2020 and 2019, and consolidated financial position as of 30 June 2020.

The Transaction

Kopy Goldfields acquired 100 percent of the shares of Amur Zoloto, a gold producing company based in Russia, through a share exchange. The Transaction was structured as a contribution in kind where the AZ Shareholders contributed 100 percent of the shares in Amur Zoloto in exchange for a total of 782,179,706 shares in Kopy Goldfields.

Assumptions and judgements

Basis for pro-forma accounts
In the consolidated financial statements, the Transaction is recognised as a reverse acquisition as Amur Zoloto is deemed the acquirer for accounting purposes, whereby the Purchase Price Allocation ("PPA") is performed on Kopy Goldfields.

Accounting policies
The pro forma information has been based on IFRS as adopted by the EU and applied by Kopy Goldfields. Amur Zoloto applies IFRS as issued by the IASB but there are no differences in practice.

Amur Zoloto's income statement is categorised by function, while Kopy Goldfields' income statement is categorised by type of cost. To harmonise these differences, Kopy Goldfields adjustments have been made in the pro forma information to align with Amur Zoloto's presentation format as Kopy Goldfields will adopt it post transaction. This does not affect the operating profit.

Supporting data
The pro forma information for the period 1 January - 30 June 2020, 1 January - 30 June 2019, and 30 June 2020 has been prepared based on the unaudited financial statements of Kopy Goldfields and Amur Zoloto. Amur Zoloto uses RUB as its functional currency. The income statement of Amur Zoloto has been converted into SEK based on accumulated average RUB/SEK exchange rates, and the balance sheet has been converted into SEK based on the closing RUB/SEK exchange rate. The exchange rates used for the conversion to SEK are 0.1397 RUB/SEK in the income statement for the period 1 January - 30 June 2020 and 0.1327 RUB/SEK regarding the financial position as of 30 June 2020 and 0.1423 RUB/SEK in the income statement for the period 1 January 2020 - 30 June 2019.

No pro forma adjustments have been made with respect to synergy effects or integration costs.

Pro forma adjustments
The pro forma adjustments are described in detail below. The adjustments are recurring unless indicated otherwise.

1. Acquisition analysis

The preliminary acquisition analysis and pro forma information in general are based on the following assumptions:

• As Amur Zoloto's shareholders gained control, the acquisition is deemed to be a so-called reverse acquisition whereby Amur Zoloto is treated as the acquirer of Kopy Goldfields from an accounting perspective.
• The transaction is deemed to be an asset acquisition under IFRS 2 Share Based Payment, as an asset is acquired in exchange for shares. The fair value of Kopy Goldfields is predominately attributable to the investment in the JV containing the Krasny project.
• As IFRS 2 is applicable, the fair value of the asset should be the basis of valuing the consideration of shares in the transaction. As of the closing of the transaction the share price of Kopy Goldfields was 2,35 SEK/share implying a pre transaction market cap of Kopy Goldfields of KSEK 243,991. Based on the equity of Kopy Goldfields as per 30 June 2020, of KSEK 105,747, this implies a surplus value of KSEK 138,244 which has been attributed to the Krasny project.
• As the increase in value of the Krasny project is allocated to the rights owned by the JV which are not amortized, this means that no proforma adjustments is made in the income statement.