Mr. Pascal Hamelin reports

ABCOURT RELEASES A POSITIVE PRELIMINARY ECONOMIC ASSESSMENT FOR ITS SLEEPING GIANT GOLD PROJECT

Abcourt Mines Inc. has released the positive results of an independent preliminary economic assessment (PEA) prepared in accordance with National Instrument 43-101 for the Sleeping Giant project, a wholly owned high-grade gold deposit located in the greenstone belt of Abitibi, 80 kilometres north of the town of Amos, Que.

Pascal Hamelin, president and chief executive officer, comments: "The PEA results released today are excellent, with an NPV 5 per cent [net present value at a 5-per-cent discount] of $54-million and an IRR [internal rate of return] of 33 per cent. The results of the PEA are based on a mineral resource produced in accordance with current CIM [Canadian Institute of Mining, Metallurgy and Petroleum] standards and guidelines. The PEA envisions a rapid start-up of operations with minimal initial investment. This project could quickly become the next gold producer in Quebec. Targeted drilling towards areas with inferred mineral resources could potentially increase resources and some project economics. The PEA is considering 50-per-cent utilization of our ore processing plant. This new drilling could potentially increase feed capacity and operate the plant at full capacity. This capacity could also allow us to accept material from other deposits such as Discovery and Flordin in the medium term, and potentially increase the value of our assets. The next step is to now target promising areas to convert inferred to indicated resources for incorporation into a more detailed economic assessment. With the potential to add other deposits to the project, we anticipate strong economic potential for the region around the Sleeping Giant plant in the future."

Note: The reader is advised that the PEA summarized in this press release is intended only to provide a high-level initial review of the project's potential and design options. The PEA's mine plan and economic model includes numerous assumptions and the use of inferred mineral resources. Inferred mineral resources are considered too speculative to be used in economic analysis, except as permitted by NI 43-101 in PEA studies. There is no guarantee that inferred mineral resources can be converted to indicated or measured mineral resources and, therefore, there is no guarantee that the economics of the project described herein will be realized.

Opportunities to increase project value

The Sleeping Giant project has strong potential for mineral resource expansion based on more than 800 mineralized structures remaining open at depth, down plunge and to the east. Future modelling could offer an increase in the potential of the project. In addition, with a utilization of nearly 50 per cent of its capacity, the current ore processing plant has excess capacity which could offer the opportunity to accept material from deposits surrounding the Sleeping Giant project. The contribution of other deposits could positively influence the economics of the PEA. Moreover, Abcourt owns several deposits with mineral resources within a radius of less than 200 kilometres from the Sleeping Giant project, including the Discovery, Flordin and Pershing-Manitou deposits.

Summary of the capital and operating expenses

A sensitivity analysis was performed to validate the impact on NPV at a 5-per-cent discount and IRR, before and after tax, by varying the gold price and capital costs. The results of the analysis are shown in the tables entitled "Sensitivity to Gold Price" and "Sensitivity to Capital Costs." The base case is in bold in the tables. Note that a sensitivity analysis was also carried out on revenues and operating costs. The results of this evaluation can be found in the PEA.

Mineral resources

PEA detail

Mining extraction

The Sleeping Giant project is an underground mine that was operated until 2014. The operation extended from the N-55 level to the N-1060 level. The mineralization consists of numerous veins of gold. The mining plan consists of extracting 720,000 tonnes of ore, including new stopes that can be accessed almost exclusively from existing levels. Production is split between levels N-145 and N-1110, and will require rehabilitation of the drifts, escapeway, shaft service compartment and existing infrastructure. The stopes will be mined by the long hole, shrinkage, and room-and-pillar methods with a tonnage distribution of 27 per cent, 30 per cent and 43 per cent, respectively.

At full production, daily production will reach 350 tpd (tonnes per day) on 10-hour shifts on a continuous seven-day rotation. The preproduction period will span a period of one and a half years. The mining methods were established according to the geometry, in particular the dip, of the various stopes. For the long hole method, the sublevels are distributed at an interval of 15 vertical metres. For the rooms and pillars method, the pillars left in place have an area of three metres by three m, while the rooms have a maximum width of six m.

Abcourt currently owns the fleet of production equipment needed to carry out the production plan (cavo, rail loaders, various drills et cetera). A complete reconditioning of the equipment was considered to ensure optimal operation at the start of the work. Surface infrastructure remains unchanged, with the ore being processed on site with the existing plant.

Mineral processing

The Sleeping Giant concentrator processed ore from the Sleeping Giant mine from 1988 until 2014, and subsequently processed ore from adjacent mines from 2016 until 2022.

The concentrator process consists of ore crushing by a jaw crusher and two cone crushers in a closed circuit with a screen, primary grinding by a rod mill, followed by secondary grinding by two ball mills in a closed circuit with cyclones. Cyclone overflow feeds a thickener and subsequently a preaeration tank, two leach tanks and four carbon-in-leach (CIL) tanks for a leach time of 46 hours. Lead nitrate is added to the grinding circuit to improve leaching. Once loaded with gold, the carbon is pumped from the CIL to be screened and eluted. The stock solution is directed to the gold room for electrolysis, sludge drying and ingot casting.

The concentrator has a capacity between 700 and 750 tpd. It will be operated 12 hours a day for a daily production of 350 tpd.

Surface infrastructures and tailings facility

A site visit was carried out in order to validate the condition of the various surface and underground equipment, as well as the surface infrastructures. This made it possible to estimate all the repair needed for a return to production of the site. Over all, the process plant, headframe, hoist buildings and other surface infrastructure were found to be in good condition. However, at the processing plant, an upgrade will be necessary for conveyors, crushing units, tanks and silos. Existing buildings and access roads are well maintained and capable of supporting activities related to a resumption of mining operations.

To facilitate an effective work force management system, on-site accommodation and catering facilities have been provided for workers on rotation. These will constitute the main infrastructure investment required for the project. In total, an investment of $4.6-million is planned for the repair and construction of surface infrastructure, including drinking water and waste water services.

An amount of $6.4-million is planned for the project for the reconditioning of the entire electrical network, including the modification of the arrival of the 25 kV (kilovolt) electrical line from Hydro-Quebec in order to include the various modules associated with the accommodation.

Underground, the mine dewatering system is currently in operation and all levels are accessible. Investments in piping will have to be made over time to ensure the continuity of operations. The emergency generator, which is mainly used for dewatering, must be upgraded. Communication systems are functional. In total, the reconditioning of surface and underground equipment is estimated at $6.7-million, including an amount of $4.3-million for process plant equipment.

For the mine tailing facility, certain work will have to be carried out in order to be able to store the mine tailings generated by the 720,000 tonnes of ore milled in the concentrator. It is expected that cells 1 and 2A currently in place will be able to accommodate the tailings generated by the concentrator following dike raising and dredging work during the project. Cell 2 will continue to serve as a water recirculation basin toward the processing plant, while Cell 3 will serve as a polishing basin. The treatment of the tailing's mine waters before their discharge into the environment will be carried out in a manner similar to that of the last years of operation of the site. In total, an amount of $10.9-million is planned for the development of the tailings facility.

Environment and restoration plan

The project is located in the southern part of the territory of the regional government of Eeyou Istchee James Bay. The regional government is responsible for the management of these lands, which are public lands in the domain of the state.

The current project is considered an existing mine, and not subject to the environmental and social impact assessment and review procedure. The activities that will be carried out fall within the framework of the Environment Quality Act and the regulation respecting the regulatory scheme applying to activities on the basis of their environmental impact.

Abcourt currently has most of the certificates of authorization allowing it to mine and process the ore. However, a request for modification of certain existing authorizations will have to be presented concerning work related to drinking water, waste water treatment and the tailings facility.

Restoration costs for the Sleeping Giant mine have been estimated at $12.1-million, taking into account the dismantling of surface facilities, including new accommodation facilities, water management infrastructure and the restoration of the tailings facility. The restoration work is planned to take place over two years.

Royalties

A 2-per-cent royalty was applied to the Sleeping Giant project on all ounces of gold produced.

Qualified persons

This PEA was prepared for Abcourt Mines by InnovExplo Inc. and other industry consultants, all qualified persons (QPs) under National Instrument 43-101. The QPs have reviewed and approved the contents of this press release. The affiliation and areas of responsibility of each qualified person involved in the preparation of the Sleeping Giant PEA are listed below:

• Olivier Vadnais-Leblanc, Geo (InnovExplo);
• Eric Lecomte, Ing (InnovExplo);
• Guy Comeau, Ing (Soutex);
• Luc Boutin, Ing (WSP);
• Marc L'Ecuyer, Ing (Englobe);
• Jacques Blanchet, Ing, MSc (Englobe).

InnovExplo:

• Mineral resource estimate;
• Mine planning and design;
• Operating and capital costs estimate;
• G&A (general and administrative) costs estimate;
• Financial analysis.

Soutex:

• Validation of the treatment process;
• Estimation of metallurgical performance;
• Estimation of the operating costs of the mineral treatment plant.

WSP:

• Capital cost estimates for processing plant equipment and infrastructure, surface and underground loading facilities;
• Capital cost estimates for surface and underground power grid.

Englobe:

• Authorizations and environmental studies;
• Tailings facility design and costing;
• Environmental cost estimate and closure plan.

Mr. Hamelin, Ing, president and chief executive officer of Abcourt, has verified and approved the technical information contained in this press release.

About Abcourt Mines Inc.

Abcourt Mines is a Canadian exploration corporation with strategically located properties in northwestern Quebec, Canada. Abcourt owns the Sleeping Giant mill and mine, where it concentrates its development activities.

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