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2016-11-10

Kopy Goldfields: Operational update November 2016

OPERATIONAL UPDATE NOVEMBER 2016

Kopy Goldfields AB (publ) ("Kopy Goldfields" or the "Company") hereby provides an update of the Companys operations:
Exploration at the Krasny project is developing in line with the program: 69 drill holes are completed, accounting for 14,708 meters of core drilling. In addition, 1,965 meters of trench sampling are done. Totally 14,633 fire assay tests for gold have been received.
Based on the new drill results, the Lower Mineralization has been extended beyond the previous resource model from 2015 for 406 meters along the strike (160 meters compared to the results of the September operational update).
With new trench sampling results from Profile 176, the Krasny North mineralization is confirmed for 400 meters along the strike and for 95 meters down dip
The processing test of a 3,259 kg sample with an average gold grade of 1.77 g/t from the Krasny Upper structure has been commenced and will be completed in early 2017.
Within the Northern Territories project, totally 5,380 samples have been collected and sent to the laboratory and 2,884 results have been received from lab. Multiple clusters have been identified for further follow up exploration.

This operational update further develops the information provided in press release 13/2016, dated June 9, 2016, 14/2016 dated July 26, 2016, 16/2016 dated August 31, 2016 and 21/2016 dated September 26, 2016.

KRASNY CENTRAL AND KRASNY NORTH EXPLORATION RESULTS

Drilling of the Stage 3 exploration program on Krasny was commenced in April 2016, and, so far, 69 drill holes are completed, accounting for 14,708 meters of core drilling. In addition, 1,965 meters of trench sampling are done. Totally 14,633 fire assay tests for gold have been received (see Table 1 in the Attachments for drill holes mineralized intervals above 0.4 g/t cut-off grade).

Most of the core drilling activities during October were focused on verification drilling within the Central part of the Krasny Upper mineralization to prove the choice of exploration grid and to upgrade the category of resources (see Figure 3 and Figure 4 in the Attachments for a map of the exploration activities on Krasny Central). In general, we see a correlation between the new drill results from the area of verification drilling and the previous drill results. Please refer to Figure 6 in the Attachment with cross sections along drill Profiles 40.5 and 41, where Profile 40.5 corresponds to the "detailed" exploration grid with 20 meters distance between the profiles and drill holes, and Profile 41 corresponds to the "ordinary" exploration grid with 40 meters distance between profiles and drill holes.

A processing test of a bulk sample that is representing the mineralized ore (oxidized, primary and transition) of the Upper structure, was commenced in October 2016 and will be completed in early 2017. The weight of the sample is 3,259 kg and the average gold grade amounts to 1.77 g/t. The processing test is run by Irgiredmet mining engineering company from Irkutsk, which made the previous mineral processing studies for Krasny. The mineral processing flow chart for Krasny will be developed as a result of this processing test.

Exploration drilling for alluvial gold within the Krasny alluvial licenses was commenced in the end of September 2016. So far, 257 meters were drilled, accounting for 51 holes at an average depth of 4 meters. Under the current schedule, the exploration drilling will be completed by the end of 2016 and a potential decision over development of the alluvial project can be taken in early 2017.

Krasny central
We proceed with hole-by-hole prospecting drilling of the lower mineralization on the Western and Eastern strike extensions of the Krasny Central deposit. We are pleased both with the average grades of the new drill results, as well as with the confirmation of a further strike extension of the Lower mineralization.

On the Western flank, exploration hole #141757, drilled in Profile 36, intersects the Lower mineralization for 26 meters. With this result, the Lower Mineralization is extended for further 80 meters to the West, compared to the results reported in the previous Operational Update, or by 166 meters along strike to the West beyond Profile 40, which was the most western drill intersection in the last resource model (see drill plan on Figure 4 and cross section along Profile 36 on Figure 7 in the Attachments). We have also recognized that the Western extension of the Krasny mineralization (both Upper and Lower) has a complicated geology influenced by several faults and thrusts, which were the reason why we missed this structure during the initial drilling back in 2012. To clarify the geological structure, we have initiated a geophysical and electro-magnetic survey of the western part of Krasny Central. The pilot review was done in September-October 2016 and we currently analyze the results received.

On the Eastern flank, exploration hole #141768, drilled in Profile 55, intersects the Lower mineralization for 140 meters, reinforcing and extending the results from hole #141754, drilled in the same Profile 55 and reported in the September Operational Update (see drill plan on Figure 4 and cross sections along Profiles 55 and 57 on Figure 9 in the Attachments). Next hole, #141769, drilled in Profile 57, which is located 80 meters eastward from Profile 55, intersects the Lower mineralization for 68 meters. With this drill hole, the Lower mineralization has been extended for further 80 meters to the East compared to the results reported in the previous Operational Update, or by 240 meters along strike to the East beyond Profile 51, which was the most eastern drill intersection in the last resource model.

These positive drill results from both the western and eastern flanks of the Krasny Lower mineralization will add new resources to the Krasny project since none of the reported intersections were covered by the previous resource modelling. As presented on Figure 8 in the Attachments with the long section of the Krasny Central mineralization, the recently discovered extensions of the Lower Mineralization falls outside the previous projection of the open pit, which must be redefined during the new resource modelling to reflect these new results. We believe that the total resources of Krasny project will increase because of recently discovered extensions of the Lower Structure.

Krasny North
From the exploration activities on the Krasny North mineralization, the samples from trench #143610, developed in Profile 176, have returned positive assay results (see Figure 5 in the Attachments for the for a map of exploration activities on Krasny North). This allowed us to preliminary model the gold mineralization along Profile 176, to target new drilling and position new drill holes and. We will proceed with new drilling on Krasny North shortly. With the current assay results from trench #143610, the Krasny North mineralization has been confirmed in Profiles 176, 180 and 186 for a total strike of 400 meters and for 95 meters down dip. The mineralization is open along strike and down dip. We believe that Krasny North will make an excellent supplement to Krasny Central and enhance the economics.

Based on Stage 3 exploration results on Krasny we are glad to report the following most significant mineralized intervals (at cut-off grade 0.4 g/t): 41 meters with average grade of 4.71 g/t and 25 meters with average grade of 2.02 g/t in the hole #141748, 7.5 m @ 5.984 g/t (hole #141750), 56 m @ 2.13 g/t (hole #141747), 19 m @ 2.588 g/t and 28 m @ 1.611 g/t (hole #141744), 40 m @ 2.28 g/t (hole #141751), 13 m @ 3.94 g/t and 15 m @ 1.89 g/t and 14 m @ 3.59 g/t (hole #141481), 23 m @ 1.58 g/t (hole #141678), 31 m @ 1.39 g/t (hole #141746), 22 m @ 1.514 g/t (hole #141610), 7 m @ 3.493 g/t (hole #141612), 43.5 m @ 2.049 g/t (hole #141482), 83 m @ 2.294 g/t (hole #141483), 8.6 m @ 4.515 g/t (hole #141485), 21.5 m @ 1.949 g/t and 10.4 m @ 3.746 g/t (hole #141752), 33 m @ 3.35 g/t and 11 m @ 3.44 g/t (hole #141754), 24 m @ 1.11 g/t (hole #141615), 27 m @ 1.58 g/t (hole #141769). See Table 1 in the Attachments for more assay data for the drilled boreholes.

NORTHERN TERRITORIES AND KOPYLOVSKY PROJECTS
We are pleased with the further results received from the exploration activities on the Northern Territories project. The stream sediment survey on the Northern Territories project develops on schedule and field operations were finalized in early October 2016. A total of 5,380 samples have been collected and sent to the laboratory for analysis and 2,884 test results have been received. The Northern Territories project consist of six licenses, and the results received are covering most of the Malo-Patomsky, Gorbylyakh, Bolshaya Taymendra and part of the Tyrynakh licenses. Based on preliminary review of the analytical results, we have identified several clusters for follow up exploration, see Figure 10 in the Attachments. Upon receipt of laboratory test for all samples, the data will be further statistically examined to identify boundaries of gold anomalies and further research taken on the origins of potential underlying bedrock gold mineralizations. Even with only a part of the samples analyzed, we confirm the exploration potential of the Northern Territories project which strongly appeal to further exploration activities.

Within the Kopylovskoye project, we have received the forestry logging permits and proceed with filing for mining permits for the Kopylovskoye license. This will result in an update and extension of the license terms, and a bulk sample test to confirm historic grades and volume of mineralization can be run. The mining permits are expected to be issued by the end of 2016. The mining plan has already been developed.

NEXT STEPS
We forecast the following events during the next few months:
Release full Krasny JORC report
Complete the 2016 Krasny Exploration and Development Program by November 2016
Release results of the 2016 Krasny exploration program by the end of 2016
Release results of Northern Territories geochemical survey by the end of 2016

Operation updates will be released on a regular basis.

For the complete press release including tables, images and maps see attached document.

För pressmeddelande på svenska se bifogat dokument (Swedish).

Stockholm, November 10, 2016

For more information, please contact:
Mikhail Damrin, CEO, +7 916 808 12 17, mikhail.damrin@kopygoldfields.com mailto:mikhail.damrin@kopygoldfields.com
Tim Carlsson, CFO, + 46 702 31 87 01, tim.carlsson@kopygoldfields.com mailto:tim.carlsson@kopygoldfields.com

The following documents can be retrieved from beQuoted
Kopy Goldfields Pressrelease 2016-11-10 English.pdf - http://www.bequoted.com/beQPress/download.asp?Id=18968
Kopy Goldfields Pressrelease 2016-11-10 Svenska.pdf - http://www.bequoted.com/beQPress/download.asp?Id=18969

This information is information that Kopy Goldfields is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 8.45 am CET on November 10, 2016.

About Kopy Goldfields AB
Kopy Goldfields AB (publ), listed at NASDAQ 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 11 bedrock exploration- and production licenses and one alluvial license covering in total 1,963 sq km, of which the Krasny licenses (bedrock and...

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