Steppe Gold Announces 2023 Annual Financial Results

Ulaanbaatar, Mongolia–(Newsfile Corp. – April 1, 2024)- Steppe Gold Ltd. (TSX: STGO) (OTCQX: STPGF) (FSE: 2J9) (“step gold” or “company“) announces its financial results for the year ended December 31, 2023.

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Highlights of the fourth quarter and year ended December 31, 2023

(All figures are in 000 USD unless otherwise stated, except for per unit figures in USD)

Revenues 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.
The average realized prices for the three months and year ended December 31, 2023 were $1,977 and $1,948 per ounce of gold and $20 and $21 per ounce of silver, 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.
Total site sustainment costs were $984 and $839 per ounce sold for the three months and year ended December 31, 2023, respectively. Total carrying costs for the three months and year ended December 31, 2023 were $1,281 and $1,140 per ounce sold, respectively.
During the three months and year ended December 31, 2023, 244,501 tonnes and 726,059 tonnes of ore were mined and 207,943 tonnes and 913,343 tonnes of ore were stacked on the leach pad with an average gold grade of 0.87 g/t and 0.86 g/t. t, with average silver grades of 4.93 g/t and 4.24 g/t, respectively.
As of December 31, 2023, the cash balance was $6,034 (including $28 recorded in the “Disposal group held for sale”). Total bank debt, accounts payable and other debt (including $959 of debt recorded in the 'disposal group held for sale', but excluding convertible notes and stream arrangements) was $23,150 and net debt was $17,116. did.
On May 11, 2023, the Company completed a private placement of 11,000,000 shares of common stock, raising $9,020 in cash.
On March 21, 2024, the Company announced that it had entered into an amended and restated US$5 million gold advance agreement.

Acquisition of Anacortes Mining Corp. (“anacortesAs a result, an additional 19,437,948 shares of common stock were issued to Anacortes stockholders and an additional 924,654 shares of common stock were issued to the advisors of the transaction.
On August 22, 2023, the Company announced the submission of a technical report for its wholly owned Tres Cruces gold oxide project located in Peru.Tres Cruces Project“).
On July 11, 2023, the Company acquired the ATO Gold Mine (“Second stage expansionThe terms of the loan consist of three installments of $50,000 each for a total of $150,000 and will be funded in conjunction with the planned construction phase of the Phase 2 expansion. On August 30, 2023, the Company entered into the following financing agreement. The first tranche was $50,000 and the first withdrawal amount was $9,600 on October 9, 2023. The second withdrawal of $40,400 from the project finance package was funded on March 20, 2024, and a total of $50,000 has now been withdrawn from the first withdrawal. Tranche of $150,000 project finance package from October 2023.
On January 9, 2024, the Company announced that it had entered into a turnkey engineering, procurement and construction contract (the “”).EPC contract“) In partnership with Hexagon Build Engineering LLC (“hexagon build“) for Phase 2 expansion.
An announcement was made on March 26, 2024, providing details regarding the EPC contract and Phase 2 expansion, including a $37,000 payment for Phase 2 expansion, including procurement, mobilization of key long-lead items, costs, including funding for initial construction. Construction and foundation work. Key long-lead items include flotation cells, crushers, cluster cyclones, concentration units, filters, and pumping systems.
The second phase expansion is progressing on schedule and on budget, with commissioning scheduled for Q1 2026.
On January 22, 2024, the Company entered into a binding term sheet (“term sheetPursuant to this, Steppe Gold, either directly or through a wholly owned subsidiary, will acquire all of the outstanding common stock of Boroo Gold LLC (“Boroo goldThe term sheet also provides Boroo Pte Ltd or one of its affiliates with the first right to acquire the Tres Cruces Project at fair market value upon completion of the transaction.

Outlook

With a landmark financing package secured and the first tranche of $50,000 fully drawn down, the Company's primary operational focus is to execute the development of the Phase 2 expansion with Hexagon Build's EPC partners. is.

This includes accelerating ordering of long-lead items, starting early construction and foundation work, and mobilizing to site with Hexagon Build.

The potential acquisition of Boroo Gold is currently well advanced in the final stages of the due diligence process. The Company is also negotiating 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 complete annual consolidated financial statements and related management's discussion and analysis are available on our website at www.steppegold.com or our profile on SEDAR+ at www.sedarplus.ca.

Step Gold Co., Ltd.

Steppe Gold is Mongolia's leading precious metals company.

For more information, please contact us below.
Bataa Tumul Ochil, Chairman and CEO

Jeremy South, Senior Vice President and Chief Financial Officer

Shangri-La Office, Suite 1201, Olympic Street
19A, Sukhbaatar District 1,
Ulaanbaatar 14241, Mongolia
Phone: +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. For more information on the non-IFRS performance measures described above, please see our management's discussion and analysis.

Cautionary Note Regarding Forward-Looking Statements

This news release contains certain statements or disclosures about the Company that reflect management's expectations and assumptions made by the Company and currently available information that may constitute forward-looking statements or information. (hereinafter referred to as “forward-looking statements”). ) Subject to applicable securities laws. All such statements, other than historical facts, that refer to activities, events, achievements, results or developments that the Company expects or expects to occur (in whole or in part) in the future; and disclosures must be considered. Forward-Looking Statements. In some cases, forward-looking statements can be identified by the use of words such as “continue”, “focus”, “intend”, “intend”, “potential”, “plan” and similar expressions. In particular, and without limiting the foregoing, this news release contains forward-looking statements regarding: Economic and political situation in Mongolia and Peru. Discussion of future plans, projections, objectives, estimates and projections, and timing related thereto, including the ATO Gold Mine, Phase 2 Expansion, EPC Agreement, Borrow Gold Transaction, and the sale of the Tres Cruces Project.

The forward-looking statements contained in this news release reflect a number of important factors, our expectations and assumptions. This includes but is not limited to: Exercise of termination rights under the term sheet. Negotiating the definitive agreement for the acquisition of Boroo Gold and the sale of the Tres Cruces project. a material adverse effect on our business, assets and assets; Changes in business plans and strategies. market and capital financing conditions; Risks Inherent in Capital Financing Transactions. Changes in global commodity markets. Currency fluctuations. Cost and supply of materials related to mining. Regime change. regulatory changes affecting the mining industry;

Although the Company believes that important factors, expectations and assumptions reflected in the forward-looking statements are reasonable at this time, it can give no assurance that these factors, expectations and assumptions will prove to be correct. there is no. Forward-looking statements contained 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. will appear. This includes, but is not limited to, changes in global commodity markets, stock markets, and costs. Supply of materials related to mining. Regime change. regulatory changes affecting the mining industry; and certain other risks detailed from time to time in our public disclosure documents. These include, but are not limited to, the risks identified in this news release and in our Annual Information Form dated April 1, 2024. A copy of these risks is available on our SEDAR+.profile www.sedarplus.ca. Readers are cautioned that the foregoing list of factors is not exhaustive and that they should not place undue reliance on these forward-looking statements.

The forward-looking statements contained in this news release are made as of the date of this news release and the Company does not warrant, except as necessary, whether the forward-looking statements contained in this news release are made as of the date of this news release, whether as a result of new information, future events or otherwise. We undertake no obligation to publicly update or revise any forward-looking statements. Subject to applicable securities laws.

The Toronto Stock Exchange has not reviewed and is not responsible for the adequacy or accuracy of the content of this news release.