•  Front End Engineering Design (FEED) and Definitive Feasibility Study (DFS) contract awarded to Micon valued at US$2.4m after the successful completion of a preliminary feasibility study (PFS) in the 4th quarter of 2020.
•  The Chovdar Sulphide Project aims to produce a minimum of 60,000 gold ounces per annum for at least six years.
•  The engagement will include:

-  indicative assessment and recommendations of refractory ore oxidation technologies.
-  detailed engineering design and cost estimation of the Chovdar Integrated Process Plant capable of processing ore from the Chovdar deposit and the surrounding satellite deposits.
-  JORC Mineral Resource and Ore Reserve estimates including development of operational pit designs for the various satellite deposits to extend the operation life of the Chovdar Gold Mine.

Micon International Co Limited (Micon) is pleased to announce that it has been retained by AzerGold CJSCo (AzerGold) to complete the FEED and DFS on the Integrated Process Plant and Chovdar Satellite Deposits. AzerGold made the decision at the end of 2020 to proceed with the FEED and DFS after Micon successfully completed a PFS in the 4^th quarter of 2020. As part of the PFS Micon evaluated various process technologies in detail to prove up an economically viable project for the underground Chovdar sulphide material and the surrounding deposits.

In executing the FEED, Micon has subcontracted the design and costing of the process plant and associated infrastructure to highly experienced industry consultants, Zenito Limited and design and costing of the tailings management facility and geotechnical study to CQA International Limited. The environmental and social impact assessment will be performed by local environmental specialist company IQLIM Limited from their office in Baku city, Azerbaijan.

"Our combined vast international experience has proven that no two projects are similar and as such our approach has always been to cater to the unique requirements of our client," comments Liz de Klerk, Managing Director of Micon in the United Kingdom. "Micon is excited to be awarded the FEED and DFS on such an exciting project and the prospect of supporting AzerGold in delivering a world class study. We believe that our proven track record in delivering projects within budget and on schedule will be to the mutual benefit of AzerGold and Micon and we look forward to a rewarding and lasting partnership."

Upon the completion of the FEED, AzerGold intends to award an EPC contract for construction of the Integrated Process Plant. This plant is scheduled to be operational by the end of 2^nd quarter of 2022.

The Project targets a minimum production of 60,000 gold ounces per annum for at least six years and incorporates refractory ore oxidation technology assessed by Micon as a possible process technology for the refractory ore from the Chovdar and surrounding Satellite Deposits. The engineering design of the new 1.1 Mtpa comminution and whole ore Carbon-in-Leach Integrated Process Plant will be completed in accordance with Class 3 of the Association for the Advancement of Cost Engineering.

Mr. Ogtay Mammadov, Deputy Chairman of AzerGold said: "Entering the FEED phase moves AzerGold toward its goal of producing annually a combined 60,000oz of gold. The project is well on track to commence production in the 3^rd quarter of 2022."

The Mineral Resource and Ore Reserve estimates, to be completed in accordance with the 2012 version of the JORC-code, will be completed for the following satellite deposits:

• Agyokush;
• Agyokush 2;
• Mereh;
• Tulallar; and,
• Narchala

Micon will prepare a 3D geological and resource model, complete geostatistical analyses and prepare a JORC (2012) Mineral Resource estimate for each of the Satellite Deposits. Micon will also undertake the open pit mine design and develop an operation mine production schedule, review the available metallurgical testwork data and the process engineering, as well as review geotechnical, hydrological, hydrogeological, environmental, and other modifying factors of the Project.

About Micon International Limited

Micon is an independent consulting firm that has provided consulting services to the world's mining industry since 1988. The firm comprises highly qualified and experienced professionals who are guided by the Company's principles of Integrity, Competence and Independence.

The firm's clients include mining and mineral exploration companies, financial institutions and government agencies from around the world. Assignments have been carried out worldwide for such commodities as precious and base metals, industrial minerals, diamonds and energy minerals.

About Zenito Limited

Zenito is an independent multidisciplinary engineering consultancy specialising in the design of mineral processing plants and associated infrastructure. By having no affiliations with any other consultancies, equipment suppliers, or laboratories, the firm can tailor its technical solutions to whatever is the most advantageous for each project and satisfies a project's requirements.

About CQA International Limited

CQA is an environmental engineering consultancy that specialises in geotechnical and mining engineering, waste management and environmental remediation, delivering pragmatic engineering solutions on projects throughout the world.

About IQLIM

IQLIM is a consulting and engineering company specializing in projects environmental protection. The company was founded in 2004. The company's clients are the public and private sectors, consisting of international organizations such as the World Bank, regional and local authorities, government agencies, port authorities, project staff.