Mr. Nick Brodie reports

GOLCONDA GOLD LTD. RELEASES FINANCIAL AND OPERATING RESULTS FOR 2023

Golconda Gold Ltd. has released its financial results for the year ended Dec. 31, 2023. All amounts are in United States dollars unless otherwise indicated.

A copy of the audited consolidated financial statements for the year ended Dec. 31, 2023, prepared in accordance with international financial reporting standards and the corresponding management's discussion and analysis will be available under the company's profile on SEDAR+.

2023 highlights, explanation and subsequent events

• For the year ended Dec. 31, 2023, the company:
  • Mined 63,386 tonnes of ore, from its Galaxy and Princeton ore bodies, with an average grade of 3.30 grams per tonne (g/t) compared with 91,744 tonnes at 3.22 grams per tonne in the year ended Dec. 31, 2022:
    • Mining operations were impacted due to flooding of the Princeton decline below 17 Level in the early part of 2023. In addition, at both Galaxy and Princeton mining was constrained by low equipment availabilities. In the last quarter of 2023, labour disruptions severely impacted production and all aspects of the operations.
    • Preventative maintenance plans have been reviewed and enhanced and the existing mining equipment is in the process of being overhauled, aided with the stream financing received post year-end, which is also being used to purchase new, additional equipment.
    • Galaxy's labour structure was overhauled during the first quarter of 2024, with the mining, processing and maintenance subcontractors labour being transferred to Galaxy's own payroll. This is expected to enable Galaxy to manage its total work force more effectively and enforce a standardized set of disciplinary procedures (1).
  • Produced 5,146 tonnes of concentrate at an average grade of 38.3 g/t containing 6,339 ounces of gold compared with 9,102 tonnes at 34.0 g/t containing 9,961 ounces of gold in the year ended Dec. 31, 2022:
    • The operating plant has an upgraded capacity of 50,000 tonnes per month but has been constrained by mining production.
  • Generated revenue of $9.4-million from the sale of 6,208 contained ounces (4,925 payable ounces) of gold at an operating cash cost of $1,596 per payable ounce compared with $13.2-million revenue for the year ended Dec. 31, 2022, at an operating cash cost of $1,353 per payable ounce (2).
  • Subsequent to the year-end completed and fully financed, a gold stream agreement for the sale of future gold production with Empress Royalty Holding Corp. under which Empress provided $5-million to Galaxy Gold to facilitate an increase in mining volumes to utilize spare capacity in Galaxy's new, larger milling circuit to increase gold production (1).

Golconda Gold chief executive officer Nick Brodie commented: "We are very excited about unlocking the full potential of Galaxy utilizing the recent Empress financing to procure new mining equipment (we have recently taken delivery of a new drill rig and loader, with a new dump truck and various items of ancillary equipment scheduled for delivery by the end of May, 2024), refurbish existing equipment and provide working capital to accelerate our underground development to access a second Level at Galaxy (3) which we expect to unlock the value in the current 1.0 million oz measured and indicated (4) and 1.4 million oz inferred resource (5) and the installed 50,000 tonnes per month processing plant that only ran at 11-per-cent capacity during 2023.

"We continue to work on a non-dilutive financing for the restart of Summit, which aims to provide accretive production, including a significant silver component, and geographic diversification allowing us to capitalze on the current strong gold and silver price environment (2)(3)."

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.

We seek Safe Harbor.