Krasny-license: Operational update November 2014

Krasny-license:  Kopy Goldfields AB (publ) ("Kopy Goldfields" or the "Company") is hereby providing an operational update of the Krasny project.

-The exploration program which is done in cooperation with GV Gold continues in accordance with schedule. 7,881 meters has been drilled and 1,712 meters of exploration trenches have been developed as per November 18, 2014.
-So far, the exploration results confirm and improve the existing geological model of the Krasny deposit, which accounts for 300 koz of gold to the depth of 200 meters.
-New mineralized intervals discovered increase the upside potential.
-Due to the Ruble depreciation, the exploration costs are below budget and some activities initially planned for exploration stage 2, have been initiated earlier in order to speed up the future reserve reporting and production design.

This operational update further develops the information provided in press release 10/2014, dated September 9, 2014 and press release 11/2014, dated October 20, 2014. For background information about the total exploration program and general targets, please refer to Attachment 1 to this press release.

Exploration stage 1
Exploration activities were commenced in mid July 2014. By November 18, 43 drill holes were completed and 3 more holes were in process, totaling 7,581 meters of core drilling (see Figure 3 in attachment 1 for details). In addition, 1,712 meters of exploration trenches were developed. The drilling is done by an independent Russian contractor "OOO Prikladnaya Geologiya" from Krasnoyarsk city of Russia which also provided drilling services on the Krasny site during the years 2011-2013. Currently three drill rigs are in operation. Stage 1 in fill exploration drilling is forecasted to be finalized shortly. The exploration costs are far better than budget and as a consequence it was decided in cooperation with GV Gold to initiate some exploration activities, initially planned for exploration stage 2, ahead of schedule. This includes 1,450 meters of core drilling to acquire 2 tons of rock to run metallurgical processing tests. Processing tests will suggest the most efficient metallurgical process to maximize gold recovery from the rock (the last metallurgical study for the Krasny rock suggested 93% gold recovery via a combination of gravitation and flotation processes). The current processing test is an essential part of the future reserve reporting. Metallurgical tests are time consuming and by starting it now, the ambition is to make the total exploration program more time efficient. By November 18, 2014 two holes for a total of 300 meters were completed within this test.

Based on the positive exploration results so far, several new drill holes are currently being considered for drilling on the western and the eastern extensions of mineralization that is still open along the strike. This can be done within budget and the motive is to increase mineral resources.

As the majority of exploration drilling within Stage 1 has been completed and the relevant assay tests received, there is enough information to make a judgment over the total exploration results of the Stage 1. In parallel with completing the last drill holes, drafting of the Exploration report over Stage 1 has been initiated. The report will summarize the results, update the resource calculation and make recommendations for the development of future exploration activities and Stage 2. It will be finalized and discussed with GV Gold within December 2014. Approval of this report will complete Stage 1.

Intermediate results
Based on the assay tests received, covering 9,080 samples from drilling and trenching, we see that the new exploration results strongly confirm the existing geological model and new mineralized intervals discovered increase the upside potential.

By November 18, drilling in profiles #38, #39, #40, #41, #42, #43, #44, #45, #46, #48, #49 and #57 (see Figure 4) has been completed and drilling along profiles #51, #53 and #55 was in process. Cross sections along profiles #38, #39, #41, #42, #43, #46, #49 and #57 are presented in Figures 4 - 11. From the cross sections presented, a good correlation between the projected and actual mineralized intervals (marked with green and purple color) can be seen. Marked with red circles are also the new mineralized intervals discovered which increase gold upside potential. A preliminary in-house resource estimation comparing old resources based on the 2011-2013 results and new resources based on all data including new results, indicates increase of both gold resources and average grade.

The most interesting mineralized intervals include 13 m with average gold grade of 2.961 g/t in hole #141507, 11 m @ 2.295 g/t (hole #141505), 11.5 m @ 2.251 g/t (hole #141509), 27 m @ 1.955 g/t (hole #141534), 21 m @ 1.977 g/t (hole #141548), 11 m @ 3.126 g/t (hole #141549), 13 m @ 2.82 g/t (hole #141549), 18 m @ 2.918 g/t (hole #141563), 16 m @ 2.338 g/t (hole #141568), 6 m @ 3.656 g/t (hole #141573). See Table 1 in Attachment 1 for more assay data for the drilled boreholes.

For the complete press release including tables, images and maps see attached document. För pressmeddelande på svenska se bifogat dokument (Swedish).

Stockholm, November 21, 2014

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 2014-11-21 (English).pdf
Kopy Goldfields Pressrelease 2014-11-21 (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 company holds 100% of 11 bedrock exploration- and production licenses on 1,963 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.

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