AJN Resources Inc. (CSE: AJN) (FSE: 5AT) Enters Gold Province in The Democratic Republic of Congo (“DRC”)

AJN Resources Inc. Enters Gold Province in The Democratic Republic of Congo (“DRC”)

Vancouver, BC, February 6, 2020 AJN Resources Inc. (CSE: AJN) (Frankfurt: 5AT) (“AJN”)

announces that on January 18, 2020 , AJN signed a Memorandum of Understand (MoU) with

Société Minière de Kilo-Moto SA (‘SOKIMO’) whereby SOKIMO proposes to obtain from AJN the

conversion of its rights to a direct participation in various gold licences held by SOKIMO into

shares in AJN. The gold licences are located within the Kilo-Moto gold province in the north-east

of the Democratic Republic of Congo (‘DRC’).

The gold licence numbers and equity interests to be secured include:

Project Name Licence Number (“PE” Permis Exploitation) Interest

Kibali Gold Mine 5052, 5073, 5088, 11447, 11467, 11468, 11469,

11470, 11471, 11472

10% (free carried)

Zani-Kodo 5077, 5078, 5079, 5081 30%

Giro Goldfields 5046, 5049 35% (free carried)

Wanga (Tendao) 5045, 5050, 5054, 5056, 5069, 13062 35% (free carried)

Nizi 5109, 5110 30% (free carried)

Kibali South 13176 30% (free carried)

Transaction

AJN intends to raise a minimum of $CDN 20,000,000 via the issuance of securities in the capital

of AJN.

AJN can secure the direct participation rights in these gold projects held by SOKIMO in

consideration of AJN issuing common shares equal to sixty percent (60%) of the issued and

outstanding shares of AJN post-financing. The transaction is an arm’s length transaction.

On completion of this financing and satisfaction of all conditions, including but not limited to the

delivery of all the securities, recordable assignments and related documents representing the

rights to direct participation being transferred by Sokimo to AJN, AJN will issue common shares

in the capital of AJN equal to sixty percent (60%) of the issued and outstanding common shares

of AJN post -financing. All shares issued to SOKIMO under this transaction will be subject to a

statutory 4 month hold period and will be so recorded and may be subject to regulatory escrow

requirements as imposed by Canadian regulatory authorities.

AJN and SOKIMO (the “Parties”) will conclude a legal and technical due diligence within 90 days

of signing of the MOU prior to obtaining all regulatory approvals (including approvals from the

Canadian Securities Exchange “CSE”) and execution of a final agreement before closing.

The financing as well as the transfer to AJN of SOKIMO’s entire right, title and interest in and to

the equity position in the projects shall be completed at a closing (the “ closing”). The time and

place of the closing will be mutually agreed to by AJN and SOKIMO and will be subject to

regulatory approvals.

At closing the board of Directors of AJN will consist of 2 nominees from SOKIMO and 3 current

directors of AJN – Klaus Eckhof, Sheena Eckhof and Mark Gasson.

The finders of the projects will be entitled to a 10% finders fee payable at the close of the transaction on

the acquisition of the Projects, which will be settled by the issu ance of AJN common shares payable as

follows: 6.5% of the finder’s fee will be paid to Dathomir Mining Resources SARL (an arms-length party to

AJN) and 3.5% will be paid to Klaus Eckhof, CEO, President and a Director of AJN. Prior to the closing of

the transaction, AJN intends to conduct an interim financing to raise up to $2.0 million at $0.40 per share

for general working capital. AJN is also pleased to announce a convertible debenture financing to

raise up to $ 1,200,000 . The convertible debentures will be priced at $ 1000 per convertible

debenture. Each Convertible Debenture is convertible at any time at the option of the holder into fully

paid Common Shares at the rate of 2,500 Common Shares for each Convertible Debenture representing a

conversion price of $0.40 per share. If the Company’s common shares trade at a closing price of $2.00 or

higher for a period of 10 consecutive trading days, then the Company shall have the right to require each

holder to convert his/her/its Convertible Debentures into fully paid Shares. The Proceeds will be used for

general working capital.

Mr. Klaus Eckhof, CEO and President of AJN commented , “With our management’s track record

in the DRC, we believe that we are close to delivering a portfolio of gold projects which underpin

the making of a significant new gold player in DRC. We believe that not only do the 6 gold projects

contain excellent potential for further gold mineralisation they also have the potential to alleviate

poverty in the area though job creation within the local community. We note that the adjacent

Kibali Gold Project employs 1,400 DRC nationals and 2,800 DRC contractors and that $38 million

was spent on local contractors during Q1, 2019.”

Figure 1: SOKIMO Mining Estate and Relevant Joint Ventured Projects

Kibali Gold Mine (10% free carried)

AJN will acquire SOKIMO’s 10% free carried interest in the Kibali Gold Mine. The remaining 90%

is held in a joint venture between Barrick Gold Corporation (TSX: ABX) (NYSE: GOLD) (45%) and

AngloGold Ashanti Limited (NYSE: AU) (45%).

Barrick Gold acquired their 45% stake in the Kibali Gold Mine via their acquisition of Randgold

Resources Limited in 2018 for USD$6.5 billion.1

The Kibali Gold Mine consists of 10 granted exploitatio n permits, PE 5052, PE5073, PE5088,

PE11447, PE11467, PE11468, PE11469, PE11470, PE11471, PE11472, covering approximately

1,836km2. The mine is located in the north-east of the DRC, approximately 220km east of the

capital of Haut Uele Province, Isiro, 150km west of the Ugandan border town of Arua, and

1,800km from the Kenyan port of Mombassa.

Zani-Kodo Project (30%)

AJN will acquire 30% of SOKIMO’s Zani-Kodo Project located in the eastern part of the Moto-Zani

Goldfields in the north-east Congo Craton, host to the Kibali Gold Camp.

The Zani -Kodo Project consists of 4 granted exploitation permits, PE5081, PE 5077, PE5079,

PE5078, covering ~ 1,605km2. The deposit has a shear related mineralisation style with a total

strike length of 5km. The main mineralised zone is between 20m and 30m thick, continues 900m

down dip (remains open) and continues some 600m along strike to the NNW , where it appears

to pinchout or be fault displaced. The main zone consists of silicification in sheared greenstone

and banded iron formation with gold mineralisation associated with sulphides.2

1 Barrick Gold News Release – Barrick and Randgold Combine to Create Industry-Leading Gold Investment Vehicle,

24 September 2018

2 Randgold Resources Technical Report on the Kibali Gold Mine, DRC, Report NI 43 -101, 18 September 2018

Figure 3: Geology of NW-SE Zani-Kodo trend

Drilling also suggests grade improves with depth with deepest hole KD0DD072 reporting 24m at

10.08g/t Au.

Figure 4: Endowment and Upside at Trend and SE Extension

Giro Goldfields Project (35% free carried)

AJN will acquire SOKIMO’s 35% free carried interest in the Giro Goldfields Project, with the

remaining 65% owned by Amani Gold Limited.

The Giro Project is located 35km west of the Kibali Mine and demonstrates a similar style of

mineralisation and structural setting as at the Kibali Deposit. The project covers 497km2 in the

Moto Greenstone Belt and consists of two main deposits, the Kebigada and the Douze Match

deposits.

Figure 5: Location of the Giro Goldfields Project

Drilling at the Kebigada deposit has confirmed the “main zone” mineralisation exists over 1.3km

to 1.5km with widths of up to 350-400m and depths exceeding 300m. Mineralisation is strongly

associated with silica flooding, quartz stringers and sulphides (pyrite and chalco pyrite). High

grade minerali sation (>3g/t Au) is associated with east-west trending quartz string ers and

pyrite/chalcopyrite laminae. Mineralisation has an apparent plunge to the north which highlights

the underground potential. Amani gold states they now expect to complete a Feasibility Study at

the beginning of 2020.

Mineralisation at Douze Match occurs within a north -east trending mineralised corridor of

around 2.6km length and up to 600m width. This mineralisation is from surface down to depths

exceeding 190m. Douze Match occurs within a 6km x 2.5km gold-in-soil anomaly, with artisanal

mining in the area possibly highlighting more exploration potential.3

3 Amani Gold (ANL.ASX) publicly available information

0 5025

km

Wanga (Tendao) Project (35% free carried)

AJN will acquire SOKIMO’s 35% free carried interest in the Wanga Project, with the remaining

65% owned by Wanga Mining Company SARL.

The Wanga Project consists of six granted exploitation permits, PE5056, PE5054, PE5045, PE5069,

PE5050, PE13062, covering approximately 1,400km2 and is located in the Kilo-Moto Greenstone

Belt of the Haut Uele Province in north-east DRC.

The project area covers the western boundary of the Kilo-Moto Gold Belt host to the Kibali Gold

Mine, owned by Barrick and Anglogold Ashanti, situated 35km to the east of the project. Within

the Wanga Project area there are numerous sites of historical bedrock and placer g old mining.

Many of these locations are now being exploited by local artisanal gold mining activities.

Figure 6: District Geology and Adjacent Properties

Locally, the Wanga Project area is comprised of volcano -sedimentary rocks with intermediate

intrusives and accompanying granitic rocks. Gold mineralisation has been observed to occur in

several styles: