STGO Steppe Gold Ltd

HIGHLIGHTS

Fourth quarter and year ended December 31, 2023 Highlights

(all figures in US$000’s unless stated otherwise, except per unit figures which are in US$)

• Revenue for the three months and year ended December 31, 2023 amounted to $14,677 and $54,239 on sales of 7,242 and 27,050 gold ounces and 17,673 and 71,367 silver ounces, respectively.
• Average realized prices for the three months and year ended December 31, 2023 were $1,977 and $1,948 per gold ounce and $20 and $21 per silver ounce, respectively.
• Operating income from mine operations before depreciation and depletion for the three months and year ended December 31, 2023 was $7,906 and $31,606, respectively.
• Adjusted EBITDA after stream payments for the three months and year ended December 31, 2023 was $2,639 and $11,297, respectively.
• Site All in Sustaining Costs were $984 and $839 per ounce sold respectively for the three months and year ended December 31, 2023. All in Sustaining Cost was $1,281 and $1,140 per ounce sold for the three months and year ended December 31, 2023, respectively.
• During the three months and year ended December 31, 2023, 244,501 and 726,059 tonnes of ore were mined and 207,943 and 913,343 tonnes of ore were stacked on the leach pad, respectively, with an average gold grade of 0.87 g/t and 0.86 g/t, respectively, and an average silver grade of 4.93 g/t and 4.24 g/t, respectively.
• As at December 31, 2023, the cash balance was $6,034 (including $28 recorded in ‘disposal group held for sale’); total bank debt, payables and other debts (including liabilities of $959 recorded in ‘disposal group held for sale’, but excluding convertible debentures and stream arrangements) was $23,150 with net debt of $17,116.
• On May 11, 2023, the Company completed a private placement of 11,000,000 common shares resulted in $9,020 cash being raised.
• On March 21, 2024, the Company announced that it had entered into an amended and restated gold prepay agreement of US$5 million.

• The acquisition of Anacortes Mining Corp. (“Anacortes”) was completed on June 28, 2023. As a result, a further 19,437,948 common shares were issued to Anacortes shareholders and a further 924,654 common shares were issued to the advisors to the transaction.
• On August 22, 2023, the Company announced the filing of a technical report in respect of its 100% owned Tres Cruces Gold Oxide Project located in Peru (the “Tres Cruces Project”).
• On July 11, 2023, the Company announced it had signed a binding term sheet with Trade and Development Bank of Mongolia and affiliated entities for $150,000 in financing to fully fund the construction and completion of the Phase 2 Expansion at the ATO Gold Mine (the “Phase 2 Expansion”). The terms of the financing comprise three tranches of $50,000 each for a total of $150,000, expected to be funded in line with the planned construction phase of the Phase 2 Expansion. On August 30, 2023, the Company signed a loan agreement for the first tranche of $50,000 and, on October 9, 2023, made its first draw down of $9,600. The second draw down of $40,400 from the project finance package was funded on March 20, 2024, with a total of $50,000 now drawn from the first tranche of the $150,000 project finance package since October 2023.
• On January 9, 2024, the Company announced that it had entered into a turnkey engineering, procurement and construction contract (the “EPC Contract”) with Hexagon Build Engineering LLC (“Hexagon Build”) for the Phase 2 Expansion.
• An announcement was made on March 26, 2024 providing further details regarding the EPC Contract and the Phase 2 Expansion, with a payment of $37,000 made towards the Phase 2 Expansion, to include funding for procurement of major long lead items, mobilization costs, early construction works and foundational work. The major long lead items include the flotations cells, grinding mills, cluster cyclones, thickener units, filters and pumping systems.
• The Phase 2 Expansion is proceeding according to projected timelines and budgets, with commissioning planned for Q1 2026.
• On January 22, 2024, the Company announced that it had entered into a binding term sheet (the “Term Sheet”) pursuant to which Steppe Gold, either directly or through a wholly-owned subsidiary, will acquire all of the issued and outstanding common shares of Boroo Gold LLC (“Boroo Gold”) in an all-share transaction. The Term Sheet also provides Boroo Pte Ltd., or one of its affiliates, the first right to acquire the Tres Cruces Project at fair market value following the completion of the transaction.

Outlook

With the landmark financing package secured and the first tranche of $50,000 fully drawn down, the Company’s main operational focus is execution of development of the Phase 2 Expansion with its EPC partners at Hexagon Build.

This will involve acceleration of the ordering of long lead items, commencement of early construction and foundational works and mobilization to site by Hexagon Build.

The potential acquisition of Boroo Gold is proceeding well with the due diligence process now in the latter stages. The Company is also in negotiations regarding the sale of the Tres Cruces Project.

The Company’s consolidated financial results for the year ended December 31, 2023 have been filed on SEDAR+. The full version of the annual consolidated financial statements and associated management's discussion & analysis can be viewed on the Company's website at www.steppegold.com or under the Company's profile on SEDAR + at www.sedarplus.ca.

Steppe Gold Ltd.

Steppe Gold is Mongolia’s premier precious metals company.

For Further information, please contact:Bataa Tumur-Ochir, Chairman and CEO

Jeremy South, Senior Vice President and Chief Financial Officer

Shangri-La office, Suite 1201, Olympic Street19A, Sukhbaatar District 1,Ulaanbaatar 14241, MongoliaTel: +976 7732 1914

Non-IFRS Performance Measures

EBITDA is defined as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as adjusted earnings before interest, taxes, depreciation and amortization. Further details of Non-IFRS Performance Measures noted above can be found in the Company’s management's discussion & analysis.

Cautionary Note Regarding Forward-Looking Statements

This news release contains certain statements or disclosures relating to the Company that are based on the expectations of its management as well as assumptions made by and information currently available to the Company which may constitute forward-looking statements or information (“forward-looking statements”) under applicable securities laws. All such statements and disclosures, other than those of historical fact, which address activities, events, outcomes, results, or developments that the Company anticipates or expects may, or will, occur in the future (in whole or in part) should be considered forward-looking statements. In some cases, forward-looking statements can be identified by the use of the words “continued”, “focus”, “scheduled”, “will”, “potential”, “planned” and similar expressions. In particular, but without limiting the foregoing, this news release contains forward-looking statements pertaining to the following: trading of the Company's common shares and business; economic, and political conditions in Mongolia and Peru; and discussion of future plans, projections, objectives, estimates and forecasts and the timing related thereto, including with respect to the ATO Gold Mine, the Phase 2 Expansion, the EPC Contract, the Boroo Gold transaction and the sale of the Tres Cruces Project.

The forward-looking statements contained in this news release reflect several material factors and expectations and assumptions of the Company including, without limitation: exercise of any termination rights under the Term Sheet; the negotiation of definitive agreements in respect of the acquisition of Boroo Gold and the sale of the Tres Cruces Project; material adverse effects on the business, properties and assets of the Company; changes in business plans and strategies; market and capital finance conditions; risks inherent to any capital financing transactions; changes in world commodity markets; currency fluctuations; costs and supply of materials relevant to the mining industry; change in government; and changes to regulations affecting the mining industry.

The Company believes the material factors, expectations and assumptions reflected in the forward-looking statements are reasonable at this time, but no assurance can be given that these factors, expectations and assumptions will prove to be correct. The forward-looking statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements, including, without limitation: changes in world commodity markets, equity markets, costs and supply of materials relevant to the mining industry; changes in government; changes to regulations affecting the mining industry; and certain other risks detailed from time to time in the Company’s public disclosure documents, including, without limitation, those risks identified in this news release and in the Company’s annual information form dated April 1, 2024, copies of which are available on the Company’s SEDAR+ profile at www.sedarplus.ca. Readers are cautioned that the foregoing list of factors is not exhaustive and are cautioned not to place undue reliance on these forward-looking statements.

The forward-looking statements contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.

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