This morning, OSI announced a maiden mineral resource estimate for the Ondundu Gold Project. The resource comprises of 26 Mt at a grade of 1.13 g/t Au for a total of 900 Koz of gold in the inferred category (Table 1). The Company also announced metallurgical test-work which confirms excellent amenability to gravity concentration for road transport to the Twin Hills gold project. We are pleased with this result as it has potential to provide significant growth to the Twin Hills production profile and ultimately increase the overall value of the Company.

As a reminder, the Ondundu Gold Project is located 130km northwest of the Twin Hills Project and is accessible by road.

Osino’s total Namibian gold resource inventory now stands at 2.77 Moz (Measured and Indicated) and 1.14 Moz (Inferred), bringing the combined total resource to just under 4.0 Moz. We view 4.0 Moz as an important milestone as this is around the size of resource that gets majors (potential acquirers) interested. Additionally, the Company has stated that the Ondundu resource could grow considerably as the nuggety style of mineralization requires more infill drilling. OSI plans to initiate on a limited RC drill program within the next few weeks. Considering the resource growth potential from both Ondundu and Twin Hills, we believe the total resource will ultimately be well over 5.0 Moz. We are maintaining our BUY rating and our target price of $3.40/share for OSI.

In addition to the table above, the Company provided resource data at various cut-off grades (Table 2). There exists a high-grade core of 600 Koz at 1.61 g/t Au when using a 1.0 g/t cut-off. This is important as if inflation continues and margins compress, the Company can be more selective in its mining to maintain strong profitability.

The Company also reported metallurgical test-work on the orebody which confirmed excellent amenability to gravity concentration with the potential to produce a low volume, high-grade gravity concentrate. The results from the tests conducted on two samples suggest that after milling to 80% passing 75-micron, gold recovery is in the range of 70-80% to a gravity concentrate containing less than 2% of the solid feed in the circuit. These highly positive results strongly support the case of shipping a high-grade concentrate to the Twin Hills mill and the high recovery will minimize transport costs.

Catalysts Ahead:

• Twin Hills Feasibility Study – Q1/22

• Twin Hills Project Financing & Permitting – Q4/22 & Q1/23

• Ondundu Resource Update – Q1/23

• Ondundu Preliminary Economic Assessment – Q1/23