Mr. Nick Brodie of Golconda Gold reports

GOLCONDA GOLD ANNOUNCES CLOSING OF GOLD STREAMING TRANSACTION FOR ITS GALAXY PROJECT

Further to Golconda Gold Ltd.'s Nov. 23, 2023, press release, it has completed the $5-million (U.S.) stream transaction relating to its Galaxy project in South Africa with Empress Royalty Holding Corp., a wholly owned subsidiary of Empress Royalty Corp.

Golconda Gold, its subsidiary Galaxy Gold Reefs Pty. Ltd. and certain of its affiliates entered into a metal purchase and sale agreement dated Nov. 21, 2023, with Empress for payable gold production from the Galaxy mine in South Africa. Pursuant to the terms of the agreement, Empress has made an upfront cash payment totalling $5-million (U.S.) for payable gold produced from the Galaxy mine. The investment is based on 3.5 per cent of the payable gold production from the Galaxy mine for an initial 8,000 payable ounces; thereafter, the percentage will reduce to 2 per cent of the payable gold production until the earlier of: (i) 20,000 ounces having been paid to Empress; or (ii) 20 years after the first payment was made. The purchase price for the payable gold delivered pursuant to the agreement is 20 per cent of the gold spot price. The use of proceeds from the transactions contemplated by the agreement will enhance and expand the production profile at Galaxy moving forward.

"The primary use of the funds will be used to procure new underground mining equipment and cover the working capital costs of underground development. The primary goal of the investment is to increase underground production at both the Princeton and Galaxy orebodies, to complete phase 2 of the company's expansion plan at the Galaxy mine, and to fill the 35,000 tonnes per month of spare capacity at the plant.

"The investment represents a huge opportunity for Golconda to meet its objectives at Galaxy and I am confident that we have the management team and work force to execute our expansion plans successfully.

"Now that the transactions contemplated under the agreement are completed, we intend to explore the opportunities available to the company to complete a non-dilutive financing to recommence production at Summit," said Nick Brodie, chief executive officer of the company.

The Galaxy gold mine

Golconda Gold acquired the Galaxy mine in November, 2015. Galaxy is situated eight kilometres west of the town of Barberton and 45 km west of the provincial capital of Nelspruit in the Mpumalanga province of South Africa. The property covers 58.6 square km and is part of the prolific Barberton greenstone belt.

Galaxy consists of 22 orebodies, all of which can be accessed via adits at level 17 and level 22. Galaxy is currently mining at the following two main ore bodies:

• Galaxy orebody -- a massive pipe shaped orebody with a thickness of 35 metres and a strike of around 100 m;
• Princeton orebody -- a steeply dipping orebody with a thickness of 5m and a strike of 300 m.

The current mine plan includes the mining of the Galaxy orebody and the Princeton orebody using a mechanized cut and fill mining method. There are also extensive tailings around the Galaxy mine site which Golconda Gold intends to use to supplement production. Golconda Gold has already upgraded the crushing circuit, float plant and filtration plant to 50,000 tonnes per month, from the original 15,000 tpm plant, which produces a gold concentrate.

Galaxy is currently in phase 1 of its expansion program taking production to 15,000 tpm and 1,100 recovered gold ounces per month. The proceeds from the agreement will be used to finance the expansion required in phase 2 to take production to 48,000 tpm and 2,800 recovered gold ounces per month.

Golconda Gold has completed the Galaxy technical report and the preliminary economic assessment (as such terms are defined below) for the Galaxy mine, which supports the expansion plans already undertaken and the future plans for expansion. In addition, Golconda Gold has a drill-ready plan to expand the resource to over four million ounces, which encompasses the other 20 identified orebodies. Work is already under way to determine how this can support future expansion of Galaxy.

About Golconda Gold Ltd.

Golconda Gold is an unhedged gold producer and explorer with mining operations and exploration tenements in South Africa and New Mexico. Golconda Gold is a public company and its shares are quoted on the TSX Venture Exchange under the symbol GG and on the OTCQB under the symbol GGGOF. Golconda Gold's management team comprises senior mining professionals with extensive experience in managing mining and processing operations and large-scale exploration programs. It is committed to operating at world-class standards, focused on the safety of its employees, respecting the environment and contributing to the communities in which it operates.

About Empress Royalty Corp.

Empress Royalty is a global royalty and streaming creation company providing investors with a diversified portfolio of gold and silver investments. Since listing in December, 2020, Empress Royalty has built a portfolio of precious metal investments and is actively investing in mining companies with development-stage and production-stage projects that require additional non-dilutive capital. Empress Royalty has strategic partnerships with Endeavour Financial and Terra Capital which allow Empress Royalty to not only access global investment opportunities but also bring unique mining finance expertise, deal structuring and access to capital markets. Empress Royalty is looking forward to continuously creating value for its shareholders through the proven royalty and streaming models.

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