Results for the period ended 31 December 2024.

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY IN OR INTO AUSTRALIA, CANADA, JAPAN, THE REPUBLIC OF SOUTH AFRICA, THE UNITED STATES, ANY TERRITORY OR POSSESSION THEREOF OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.

30 April 2025

Hamak Gold Limited

("Hamak Gold" the "Group" or the "Company")

Results for the period ended 31 December 2024

Availability of Annual Report

Hamak Gold Limited (LSE: HAMA) is pleased to announce its audited results for the period ended 31 December 2024.

Copies of the Company's full Annual Report and Financial Statements for the period ended 31 December 2024 will be made available on the Company's website at www.hamakgold.com.

Highlights

·      Continued exploration activities at the Nimba licence in Liberia, focusing on the high-grade Ziatoyah gold discovery:

o  Detailed geological mapping, rock chip sampling, trenching, and channel sampling conducted

o  Results support previous rock chip samples grades of 38g/t AU and 45g/t Au and extensive positive trench channel sampling results

o  Better understanding of the structural controls of the minerlization observed from first drilling  that intersected 20m at 7g/t Au, including 5m at 22g/t Au

o  Gold mineralisation and next drilling targets are aligned with the 5.7km x 1km gold-in-soil anomaly, indicating potential for a bulk gold target

o  Exclusivity regarding a potential joint venture agreement over the Nimba licence with an ASX listed company, subject to completion of certain conditions

·      £200,000 raised through equity placing in April 2024 to support operations and exploration

Highlights Post Period

·     In January 2025, a new three-year mineral exploration licence was granted over the Nimba area to wholly owned subsidiary 79 Resources Inc

·      A$100,000 exclusivity payment was received in respect of the exclusitivy agreement over the Nimba project, which was used to pay for the new Nimba licence fee.  At the date of this report, the Company awaits fulfilment of the final completion condition, being receipt of the fully executed mining licence documents from the Ministry of Mines in Liberia

·      Hamak continues to assess new project and strategic opportunities that can be value-accretive to shareholders

Karl Smithson, Executive Director of Hamak Gold commented:

"In 2024, our focus remained firmly on advancing the high-grade Ziatoyah gold discovery at the Nimba Licence in Liberia. Our team completed detailed geological mapping and sampling, built on the previous drill and discovery success. This work has reinforced the scale and potential of the mineralised system, which is supported by a 5.7km x 1km gold in soil anomaly, exceptional rock chip results of up to 45g/t Au, and first drill results of 20m @ 7g/t Au near surface.

"Looking ahead, and with a new three-year exploration licence granted over the Nimba area, we are working towards completion of all conditions in respect of a joint venture partnership with an ASX listed gold exploration company, full details of which will be announced once such conditions are satisfied."

For further information you are invited to view the company's website at http://www.hamakgold.com/ or please contact:

About Hamak Gold Limited

Hamak Gold Limited (LSE: HAMA) is a UK listed company focussed on gold exploration of a portfolio of licences in highly prospective areas of Liberia, where significant drilling results have identified a new high-grade gold discovery with the discovery hole returning 20m @ 7g/t Au near surface in its Nimba licence on the border with Ivory Coast which is located in proximity to the commercial 5moz Ity Gold Mine.

Chairman's Statement

Dear Shareholder,

I am pleased to present the annual report of Hamak Gold Limited (the "Company" or "Hamak") and its subsidiaries (collectively referred to as the "Group'' or "Hamak Gold'') for the year ended 31 December 2024. The Group undertakes gold exploration with a current focus on the high-grade discovery at the Nimba licence in Liberia, which is in relative proximity and in a similar geological setting to the 5 million ounce Ity Gold Mine of Endeavour Mining in neighbouring Cote D'Ivoire.

During the year, our exploration team conducted detailed geological mapping, rock chip sampling, trenching and channel sampling in the vicinity of the Ziatoyah gold discovery to better understand the structural controls to the gold mineralisation that is evidenced over a 5.7km x 1km trending strong gold in soil anomaly. This work focussed on the vicinity of the outcropping geological unit that yielded rock chip sample results of 38g/t Au and 45g/t Au, and under which a drill hole intersected 20m at 7g/t Au, including 5m at 22g/t Au, at shallow depth. These results are clearly of significance and the extent of the geochemical soil anomaly associated with this mineralisation is suggestive of a bulk gold target.

Since the original tenure of the Nimba licence expired during the year, a new mineral exploration licence over essentially the same area was applied for and granted to our wholly owned subsidiary company 79 Resources, Inc. on 23 January 2025. This licence has an initial tenure of three years, which can be extended for a further two years under the mining regulations in Liberia, providing sufficient time to conclude our exploration programme with the objective of defining a significant gold resource. I would like to thank the team at the Ministry of Mines and Energy of Liberia, led by Hon. Wilmot Paye the Minister of Mines, for their support in awarding the new Nimba permit.

The capital markets for junior resource companies remains very challenging, irrespective of record gold prices. In April 2024 Hamak Gold completed a placing of £200,000 (before expenses) from the issue of 16,000,000 new ordinary shares of no par value ("Ordinary Shares") at a price of £0.0125 each. Directors and management continued to receive shares in lieu of fees and salaries to conserve cash for corporate and operational costs. I am very grateful to everyone for continuing to support the Company in this manner.

To further advance the Nimba project at a meaningful pace towards our objective of delivering a significant gold resource in the short term, the Board made the decision to seek potential project partners for Nimba. I am pleased to say that in the year the Company entered into exclusive joint venture negotiations with an ASX listed gold exploration company for which terms have been agreed subject to certain completion conditions, whereby the counterparty earns into the project according to the achievement of milestones and making agreed expenditures. As part of the agreement Hamak Gold received a A$100,000 exclusivity payment in January 2025 which was used to pay the Nimba licence fee due.  Other terms of the joint venture will be announced when all conditions are fulfilled.

The joint venture agreement envisages that exploration will be funded by the joint venture partner during 2025 and beyond.  The joint venture will be a good deal for Hamak Gold shareholders who will remain exposed to the exploration success at Nimba through funding by the joint venture partner.

Beyond Nimba, our technical teams continue to review and consider new projects in the wider West Africa region to enhance our portfolio with projects that could be value accretive to our shareholders.

Finally, I would like to thank our shareholders for their continued support, and to my Board and Management for the strong commitment they continue to demonstrate to the Company. I believe that with our new joint venture partner continued exploration success at Nimba will be realised to deliver the value we all see in the project and Company. 

Amara Kamara

Executive Chairman

29 April 2025

OPERATIONS REPORT

Operating Overview

The Company's activities during the period continued to focus on its highly prospective Nimba Licence and in particular the high-grade Ziatoyah gold discovery, where in Q2 and Q3 of 2024, the Company undertook further detailed mapping together with rock chip sampling to better understand the structural geology and controls of the gold mineralization A trenching programme was also undertaken to unravel the structural complexity of the prospect and the extent of the mineralisation indicated by the 5.7km x 1km NE trending gold-in-soil anomaly.

The final completion condition in respect of the joint venture with an ASX listed gold exploration company, being receipt of the executed mining licence from the Ministry of Mines in Liberia is awaited, is expected to be satisfied shortly. The joint venture partner will fund further ongoing exploration work and drilling at Nimba in return for an increasing equity position in the holding company of the Nimba permit, with Hamak acquiring shares in the ASX listed gold exploration company.  Full details will be announced once the deal is finalised after fulfilment of the completion conditions.

Licence Holdings

During 2024, Hamak Gold and its subsidiaries held two exploration licences, known as Nimba and Gozohn, which jointly covered a combined area of 1,116 square kilometres. Bedrock gold discoveries, associated with extensive gold in soil anomalies, have been made within both licences. Exploration efforts during the reporting period focussed on the Nimba licence Ziatoyah gold discovery during the report period. However, when the Gozohn licence ended its exploration tenure as allowed by the Minerals law of Liberia, the Company made the strategic decision to focus its resources on the Nimba permit, thus relinquishing the Gozohn licence.

Nimba Licence (MEL 701 2725)

During the latter part of the reporting period, the Nimba permit reached the limits of its tenure allowed for exploration. Therefore, the Company applied for a new exploration licence, covering essentially the same area as the original Nimba permit, under a newly created, 100% subsidiary company of Hamak Gold, called 79 Resources, Inc. This new licence, covering an area of 827.22 square kilometres, was granted to 79 Resources, Inc. by the Ministry of Mines and Energy of Liberia on 23 January 2025 and has an initial three-year period of tenure.  Fully executed licence documents are awaited from the Ministry.

The Nimba Licence is located approximately 40km southwest of Endeavour Mining's 5-million-ounce ("Moz") Ity Gold Mine in neighbouring Cote D'Ivoire (Figure 1).

Figure 1: Location map of the Nimba Gold Project licence in Liberia and neighbouring mines

Operating Review

Following detailed soil, trench/channel and rock chip sampling, in late 2022 the Company discovered an outcropping (at surface) gold mineralised metadolerite unit (greenstone package) at a site called Ziatoyah, which was subsequently drilled and returned a best result of 20m at 7g/t Au near surface and under the mineralized outcrop. 

Associated with this discovery, the outcrop is a gold-in-soil anomaly which extends over a 5.7km by 1km northeast trending area (Figure 2). Streams that dissect the anomaly are exploited by artisanal gold miners, suggesting that the extent of the anomaly may be related to an extensive hard rock gold deposit. 

Figure 2: Nimba Gold Project gold-in-soil anomaly and the Ziatoyah discovery outcrop

The gold mineralisation intersected at Ziatoyah during the initial 2023 drilling programme, and observed in proximal outcrop, suggests that the gold occurs as free grains within disseminated crystalline and aggregates of vetiform pyrite attaining levels of between 1% and 10% of the rock mass which is dominated by locally carbonatised metadolerites. Microscopic free gold has also been identified at numerous points within the mineralised sections of the drill core.

Based on the high percentage of disseminated sulphides (pyrite) associated with the gold, the Induced Polarisation (IP) geophysical technique was considered best suited to define any disseminated sulphide and gold-bearing mineralised units below surface. A 21-line km of survey was carried out in early 2023, the processing and interpretation of which suggested the identification of a number of strong IP chargeability and resistivity anomalies. Structural interpretation based on the detailed multi-element geochemical assays of the soil sampling, surface outcrop and drill core were also carried out. A number of drill targets were selected with the objective of defining extensions of the high-grade Ziatoyah gold discovery based on the geophysical and geochemical results.

The Company's second phase of drilling in 2023 (for a total metreage of 999.96m and 13 holes) failed to intersect significant sulphides within metadolerites and hybridized granodiorites indicating that the IP targets had not been generated by sulphide-bearing bedrock and that the anomalies were probably attributed to the presence of wet conductive clays within the Ziatoyah River valley. While the 2023 drilling programme was partially successful, it demonstrated that the geology of the Ziatoyah prospect is complex and structurally controlled.

The Cestos shear zone, located along the southeast boundary of the Nimba licence, is defined by a major NE trending dislocation zone (Figure 3). USGS aeromagnetic data implies a pattern of SW to westerly trending secondary structures branching off this shear zone. Such secondary faults, or splays, may have created extensional zones for the focus of hydrothermal activity responsible for gold mineralisation.

Figure 3: Structural geology of Nimba Gold Project with secondary splays off the main Cestos Shear Zone

Following a review of all exploration data during late 2023, it is now believed that regional-scale folds and probable associated parasitic folds should be considered the primary exploration targets across the Nimba Licence. Although there has not been any updated defined deformational history for the prospect, there are clear signs that the area has undergone more than one deformational event judging by the structural trends discernible at map scale. As a result, the Company undertook additional detailed field mapping during the report period to become more conversant with the stratigraphic, lithological, alteration patterns and structural controls to the mineralisation at the Ziatoyah prospect.

Figure 4: Local structural geology of Nimba Ziatoyah Prospect with Au results

Following positive results from sampling at Ziatoyah, a limited scout drilling programme of 450m across 3 holes was undertaken in 2022 to test the potential down-dip extension of bedrock mineralisation seen at the artisanal workings.

Previous drilling at Ziatoyah within the first hole (NZ22_001), after 26m, intersected a zone of strongly foliated dark grey metadolerite with weak to moderate levels of dissemination and smeared pyrite mineralisation of between 1 and 5% over the overall rock mass. From 27.26m and 52.00m (down the hole), significant gold mineralisation was returned between 28.0m and 48.0m returning 20.0m @ 7 g/t Au, with a high-grade zone returning 5.0m @ 22 g/t Au. Preliminary modelling suggests that the ore body follows the foliation and is cut and dislocated by shallow dipping N-S faults (Figure 5).

Figure 5: Section through two drill holes at Ziatoyah showing Au intercepts

During the reporting period, local field mapping was concentrated in a 17 km² area where some 260 outcrops were described with structural measurements having been recorded from 141 of these. In addition, some 8 rock chip samples (showing mineralisation - mostly pyrite) were collected which complement the three positive rock samples collected previously.

From field observation, it appears that there is a broad widespread distribution of mineralised outcrops exposed to date within the prospect area. Nearly all the mineralised outcrops comprise meta-dolerite with one sample deriving from a quartzite (meta-sediment). The structural orientation of the mineralised outcrops trends towards the north or NNE. The location and results for the positive rock chip samples are shown in Figure 6.

Figure 6: Nimba Ziatoyah Prospect with rock chip sample results & gold-in-soil anomalous area

Positive samples, 11R0031, 18, 16,17 27, 30, 34, 32 and 33 are more or less coincident with the broad NE striking gold-in-soil anomalous area and within the drawn ellipse (black dotted line). Very low ppb samples, 11R0028 and 11R0029, fall convincingly outside the gold-in-soil anomalous area. The two outcrops sampled in 2023 show strong mineralisation: samples 11R0016, 17 and 18 being located near or at the Ziatoyah discovery outcrop. The broad spread of positive rock chip samples supports the assumption that the gold-in-soil anomaly is real, not transported and overlies a broadly mineralised auriferous zone.

During the reporting period, a number of short-span trenches (30-50m long) were identified and excavated in order to facilitate the exposure of more structures which have been mapped by an independent structural geology consultant. For the most part, outcrop is limited due to deep weathering, however, the Ziatoyah prospect comprises metamorphosed mafic rocks of greenstone assemblage interspersed with late intrusives of dioritic and grano-dioritic rocks, of which the former are folded while the late intrusives remain undeformed. The folded nature of the Ziatoyah prospect clearly shows that it lies within a complex multiple deformational fold belt attained by the interlayering of 'competent' and 'incompetent' beds which are typically sources or traps for potential large-scale fluid migration and accompanying orogenic gold mineralization.

Furthermore, the presence of a massive, unaltered carbonate in Hole NZ23_007 clearly shows that the meta-sediment package comprises carbonate formations. Where hot fluids encounter such carbonate formations, it usually results into skarn mineralisation. This style of mineralisation should not be ruled out at the Ziatoyah Prospect as similar skarn mineralisation is reported at the neighbouring Ity Gold Mine, just across the border in Cote D'Ivoire.

Summary and further work

In summary, the Ziatoyah prospect, within the Company's newly granted Nimba Licence, lies within a complex fold belt on the western margin of the Cestos Shear Zone within a geologic terrain that is highly prospective for significant, bulk gold mineralisation. Structural interpretation indicates a match between fold closures / fold limbs that are adjacent to perennial artisanal gold diggings. The close relationship between gold-in-soil anomalies and key structural features suggests that structural mapping and analyses are key factors that the Company must take into consideration prior to any future drilling.

Independent structural analysis recommends further comprehensive mapping, commencing at identified targets as shown in Figure 7 (blue circles). Structural readings together with lithological / regolith mapping should demarcate lithological boundaries which may be potential sites for mineralisation which will guide selection of the next drill targets. Petrological /petrographic studies are also required of current drill cores in order to accurately classify the lithology characterising the Ziatoyah Prospect.

Figure 7: Interpreted fold structures and target sites for further work within the gold-in-soil anomalous area

Project strategy and next steps

Following negotiations, due diligence and a site visit, Hamak Gold entered into an agreement, subject to fulfilment of completion conditions, with an ASX Listed gold exploration company and was paid a A$100,000 exclusivity fee (used to pay for the new Nimba licence).  Subject to completion of such conditions, the joint venture partner will fund the Nimba gold exploration in return for increasing equity in the licence. 

Gozohn Licence

The Gozohn licence (MEL 7002318) covered an area of 129.6 square km and is located some 30 km to the south of the high-grade Kokoya Gold mine operated by MNG Gold. The licence is host to a number of structurally controlled greenstone belts similar to those at Kokoya, with strongly deformed amphibolite, quartzite, schist and banded ironstone formations which generally occur as pronounced topographic highs.

Previous soil, rock and trench sampling has identified a 1,500m long gold in soil anomaly with rock chip samples returning grades of 2.56g/t Au and 3.37 g/t Au, which are interpreted as being related to gold in quartz veins that permeate the greenstone belt geology.

No exploration was undertaken on Gozohn during the reporting period as resources were focussed on Nimba as a priority. When the Gozohn licence reached the end of its exploration tenure in late 2024, the Company made the strategic decision to relinquish it and focus on its highly prospective Nimba Project in partnership with First Au Limited.

Outlook

Following the inconclusive second phase scout drilling programme in 2023, the Company has undertaken an in-depth technical review of all the exploration data captured to date, with emphasis on the structural interpretation from drill core and outcrop measurements. Relogging of the core has led to a better understanding of the geology and the recognition of metasediments such that the packages fit well with an Archean Greenstone Terrain designation. There is sufficient evidence that the strong mineralisation seen in hole NZ22_001 could be stratigraphically, or at least, lithologically controlled rather than having a primary structural control.

Extensive detailed mapping and some limited trenching during the reporting period has revealed a large outcrop coverage area from which a significant number of structural readings have been captured. This extensive database is currently under review; the interpretation of which will yield priority drill targets for a more extensive drilling programme to deliver a maiden gold resource.

Subject to fulfilment of the completion conditions with the joint venture partner, the Nimba project will be fully funded for 2025 and beyond, providing Hamak Gold shareholders exposure to continued exploration success but at low cost to the Company. 

Hamak Gold will continue to seek additional projects in the resources space that can provide further value opportunities.

Business plan and strategic objectives

The Group's strategic objectives are to be a successful mineral exploration company that through deploying systematic exploration techniques can lead to the discovery of a significant gold and base metal resources in the short to medium term (two to five years) on its mineral exploration properties in Liberia and other potential jurisdictions. The Group will seek to achieve these aims by managing its operations safely and sustainably, with a view to ensuring that, subject to successfully discovering commercially viable and extractable gold deposits, the Group will be in an optimal position to create value and generate returns for Shareholders and significant benefits for all stakeholders including local communities.

There are a number of risks associated with junior resource companies at the early exploration stage in the natural resources sector, especially in West Africa. The Board regularly reviews the risks to which the Group is exposed and endeavours to mitigate them as far as possible.

The following summary, which is not exhaustive, outlines some of the risks and uncertainties the Group may be exposed to:

Political conditions, government regulations, macroeconomic volatility and regulatory risks

The Company's performance and growth may be constrained by delays or shutdowns due to political, commercial or legal instability in Liberia. The ability of the Company to generate long-term value for shareholders could be impacted by these risks.

Changes may occur in local political, fiscal and legal systems, which might adversely affect the ownership or operation of the Group's interests including, inter alia, changes in exchange rates, currency, exchange control regulations changes in government and in legislative, fiscal and regulatory regimes. The Group's strategy has been formulated in light of the regulatory environment as at the latest practicable date prior to the publication of this Document and what are deemed to be probable future changes (though due regard should be given to the uncertainty in making predictions involving political governance risks). 

Regional instability due to corruption, bribery and generally underdeveloped corporate governance policies have the potential to impact the Group's performance in Liberia and, as a result, the Company's share value. These risks could have a materially adverse effect on the future profitability, the ability to finance or, in extreme cases, the viability of the Group.   Management has strong connections in Liberia including at governmental level to enable it to take timely action should this be necessary to mitigate such risks.

Within Liberia, a number of economic and political factors have contributed to a lack of infrastructure investment. As such, the country lacks well-developed infrastructure connections, which could impact the profitability of the Group.  The Group will assess the requirement for infrastructure required to economically mine its assets when these projects are further advanced.

Economic challenges in Liberia, including high rates of unemployment, may lead to a reduction in local, skilled workforce such that geologists, mining engineers and other technically qualified and skilled individuals have gone abroad for work. In the past international investors were reluctant to deploy capital to Liberia, leading to significant underinvestment within its exploration and mining sector. Although improving, these factors may create operational challenges for the Group. The Group has contacts in the country to assist in securing suitably qualified personnel when required for operations.

The licences held are subject to various laws and regulations relating to the protection of the environment and the Group is also required to comply with applicable health and safety and other regulatory standards. Environmental legislation in particular can comprise numerous regulations which might conflict with one another, and which cannot be consistently interpreted. Such regulations typically cover a wide variety of matters including, without limitation, prevention of waste pollution and protection of the environment, labour regulations and worker safety. The Group may also be subject under such regulations to clean-up costs and liability for toxic or hazardous substances which may exist on or under any of its properties or which may be produced as a result of its operations. The Group intends to operate in accordance with high standards of environmental practice and comply in all material respects and currently is not subject to any fines or liability or clean-up cost in relation to environmental rehabilitation.

Any failure to comply with relevant environmental, health and safety and other regulatory standards may subject the Group to liability, fines and/or penalties and have an adverse effect on the business and operations, financial results or financial position of the Group. Furthermore, the future introduction or enactment of new laws, guidelines and regulations could serve to limit or curtail the growth and development of the Group's business or have an otherwise negative impact on its operations. Any changes to, and increases in, current regulation or legal requirements, with the enforcement thereof, may have a material adverse effect upon the Group in terms of additional compliance costs.

Renewal of licences as allowed in the Mines Act is dependent on the Company maintaining them in good standing on an annual basis. On advice from the Ministry of Mines, the Nimba licence was reapplied/renewed in a new Group company- 79 Resources, Inc. The Nimba licence is confirmed as valid and in good standing by the Ministry of Mines at the time of this report.

Management has strong connections in Liberia including at governmental level to enable it to take timely action should this be necessary to mitigate such risks.

Climate Related Financial Disclosures

The Company provides disclosures under the framework recommended by the Task Force on Climate Related Disclosures (TCFD). These are designed to help investors and wider stakeholders understand how companies are managing climate related financial risks.

Gold mining plays a vital part in the economic and social development of many emerging or developing economies and the West African Republic of Liberia is no exception in this regard as it is likely to be vulnerable to the disruptive and potentially destructive impacts from climate change and extreme weather events. Liberia has currently two operating gold mines and a number of small explorers actively engaged in mineral exploration. There is therefore a likelihood, even expectation, of new discoveries and hence additional mines coming into production in Liberia in the near future. The Group, which currently is in the exploration phase, is not aware of current climate-related impediments but monitors risks and physical impacts in order to implement better plans to prepare for and adapt to risks arising.

Climate change risks and impacts on gold exploration in Liberia

There is a wide range of factors that influence the adaption and resilience to climate change in gold mining. However, at the prospecting or exploration level, the main risks to our operations are physical factors manifested in acute impacts (severe and short-term) and chronic impacts (long-term, gradual change). Acute physical risk can be in the form of extreme weather and weather-related events such as excessive rainfall (during the wet season) or wildfires (during the dry season) while chronic impacts refer to enduring changes and shifts in, for example, air and land temperatures. Since our gold exploration activities are focused on the interior of Liberia, coastal and sea level impacts are negligible. However extreme weather conditions may pose challenges to access to site and lead to delays in exploration activities.

Management conducts its operations in the light of seasonal weather conditions to mitigate risk.

Gold exploration activities

The nature of our work involves the collection and analysis of samples of various materials, ranging from rocks and earth (soils) to stream sediments in our search for anomalous quantities of gold or gold-related minerals in the natural geological environment. These samples are small amounting to a few kilograms of material and are collected by teams of geologists (comprising 2 to 3 individuals). Remote sensing exploration techniques, including geophysics, are practiced occasionally while drilling of small diameter holes (to ~ 100 - 150m) into the bedrock is also carried out - once anomalies have been identified from the sampling programmes. Trenches and pits may be periodically excavated and material sampled. These mobile exploration activities are conducted from temporary, often tented, camps and bases with special attention to the maintaining of cordial and sound relations with our host communities in the various villages impacted by our presence.

For the purposes of financial reporting requirements and disclosure, at our current level of operations, climate-related risks are negligible. Should exploration activities lead to a discovery and hence more permanent, year-round, activities, the Company will reassess its position with regard to climate-related management.

Limited operating history

The Group was formed and listed on the LSE three years ago so is relatively early stage in its development. However, the Board and Management of the Group have considerable exploration, development and mining experience in the West Africa region, in particular in Liberia, Sierra Leone and Guinea. This experience has helped lead the Group to making a significant new gold discovery in the Nimba exploration licence, within nine months of the Company's IPO.

Exploration and development risks

Following the Group's early exploration success in the Nimba licence, there still remains a high degree of risk as mineral exploration and development can be highly speculative and as of yet no mineral resource has been defined. The economics of developing mineral properties are also affected by many factors including the cost of operations, variations of the grade of ore mined, fluctuations in the price of the minerals being mined, fluctuations in exchange rates, costs of development, infrastructure and processing equipment and such other factors as government regulations, including regulations and tariffs relating to royalties, allowable production, importing and exporting of minerals and environmental protection.

In addition, the grade of mineralisation ultimately mined may differ from that indicated by drilling results and such differences could be material. As a result of these uncertainties, there can be no guarantee that mineral exploration and development of any of the Group's investments will result in profitable commercial operations.

Financing risk

Whilst the Directors are confident that the Group will be able to raise additional funds as and when required and is expected to raise sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the consolidated financial statements there can be no assurance that such funds as may be required will be raised. However since the listing, the Company has successfully concluded a number of placings with the support of Directors, Management and shareholders and therefore the directors are confident of successful future fund raises. Post year end the Company expects to shortly enter into a joint venture agreement with an ASX listed gold exploration company whereby this company will fund the next stages of the Nimba exploration and drilling programmes and the Company will be paid shares for the progressive earn-in to the project. 

Industry-specific risks

The natural resources sector is inherently tied to the performance of the global economy and fluctuations in the price of global commodities. As a result, segments of the natural resources sectors (or even the sector as a whole) could be affected by changes in general economic activity levels and other changes which are beyond the Group's control. The revenues and earnings from developing its assets will rely on commodity prices, and the Group will be unable to control the prices for commodities which may adversely affect the Group's business, results of operations, financial condition or prospects.

Key performance indicators

Appropriate key performance indicators will be identified in due course as the business strategy is implemented.

Gender analysis

A split of directors by gender during the year is shown below:

Directors and employees                            

The Group currently has only male Directors and is committed to promoting gender equality based on relevant skills and experience as it progresses through its life cycle. At the current stage of exploration, the Group sourced individuals with experience not only in the sector but also in the wider West African and African settings. The Board, however, is diversified from an ethnicity perspective during the financial year, having two Directors of African heritage which is appropriate given the Company is a Liberian majority-owned, and Liberian focused entity. The information provided is based on the updated personnel records maintained by the Group.

Environment, Social and Corporate Governance (ESG)

As a new Group focused on early-stage exploration, we aim to conduct our business with honesty, integrity and openness, respecting human rights and the interests of our shareholders, employees and local community stakeholders. We aim to provide timely, regular and reliable information on the business to all our shareholders and conduct our operations to the highest standards.

Environment

The Group submitted environmental licence reports and applications to allow for exploration to continue in the Nimba and Gozohn licences up until their expiry during the year. Environmental permits are issued by the Environmental Protection Agency (EPA) of Liberia according to the prevailing laws of the country. Since the exploration is very early stage there is no significant rehabilitation work required. All sampling holes are back filled at the end of the sampling process. Trenches are ring fenced during excavation and back filled after completion. Drill pads are cleaned and levelled after each hole. In the tropical environment of Liberia vegetation rehabilitation is natural and rapid.

Social

The Group has conducted extensive exploration work at the Nimba licence and no exploration work at the Gozohn licence during 2024. The Group adheres to the social requirements within the country of working with local communities at all times, engaging with them so they are aware of our activities and where possible recruiting labour from nearby communities.  According to the Minerals law, there is a requirement for the Group to contribute to community development the equivalent of 2% of the year's exploration expenditure on any mineral exploration licence, in arrears which has been made. 

Corporate Governance

Being a public Group listed on the LSE Standard Exchange, the Group adheres to all required governance rules as stated in the Corporate Governance Statement and has in place the necessary structure of Board committees to oversee the business of the Group to ensure adherence to best practice procedures.

Health and Safety

Although Hamak Gold has a relatively small staff contingent in Liberia, the Company strives to create a safe and healthy working environment for the well-being of its staff and contractors and create a trusting and respectful environment, where all members of staff are encouraged to feel responsible for the reputation and performance of the Group. As the Company grows, it aims to establish a diverse and dynamic workforce with team players who have the experience and knowledge of the business operations and markets in which we operate. Through maintaining good communication, members of staff are encouraged to realize the objectives of the Group and their own potential.

Amara Kamara

Executive Chairman

29 April 2024

These financial statements were approved and authorised for issue by the Board of Directors on and were signed on its behalf by:

Nicholas Karl Smithson

Executive Director

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