Mr. Brad Langille reports

GOGOLD ANNOUNCES FILING OF PEA TECHNICAL REPORT FOR LOS RICOS NORTH

GoGold Resources Inc. has filed a National Instrument 43-101 preliminary economic assessment (PEA) technical report for its Los Ricos North project located in Jalisco state, Mexico. The highlights of the report were previously announced in a news release dated May 17, 2023, and the effective date of the report is May 17, 2023.

This is the company's second PEA completed within the Los Ricos district, in addition to the Los Ricos South PEA completed in January, 2021, with an updated mineral resource estimate (MRE) and PEA for Los Ricos South expected to follow this summer.

Highlights of the PEA, with a base case silver price of $23 (U.S.)/ounce and gold price of $1,800 (U.S.)/oz. are as follows (all figures in U.S. dollars unless otherwise stated):

• After-tax net present value (using a discount rate of 5 per cent) of $413-million with an after-tax internal rate of return of 29 per cent (base case);
• 13-year mine life producing a total of 110.3 million payable silver equivalent ounces (AgEq), consisting of 68 million silver ounces, 221,700 gold ounces, 22.8 million pounds of copper, 144.1 million pounds of lead and 242.2 million pounds of zinc;
• Initial capital costs of $221-million, including $29-million in contingency costs, over an expected 18-month build, additional expansion capital of $137-million and sustaining capital costs of $6-million over the life of mine (LOM);
• Average LOM operating cash costs of $9.50/oz AgEq, and all-in sustaining costs (AISC) of $9.68/oz AgEq;
• Average annual production of 8.8 million AgEq oz in years 1 through 12;
• Approximately three-quarters of LOM production is from four open pits containing oxide mineralization and approximately one-quarter is from a separate open pit which contains only sulphide mineralization.

"We're pleased to file our technical report for the Los Ricos North PEA which provides the details of the strong economics of the project -- showing average annual production of 8.8 million AgEq oz at a first-quartile AISC of $9.68/oz AgEq. Los Ricos North forms a pipeline of growth after Los Ricos South, which we see as a high-grade bulk underground mine targeted to be our first deposit advanced to production," said Brad Langille, president and chief executive officer. "The filing of the report represents one of the milestones for the 2023 year in the Los Ricos district. The other key milestones for the 2023 year in the Los Ricos district are an updated mineral resource and PEA in Los Ricos South incorporating the Eagle zone, followed by a prefeasibility study in Los Ricos South which is anticipated before year's end. With $100-million in cash we are well positioned to develop Los Ricos South pending the results of the upcoming studies."

PEA summary

The PEA was prepared by independent consultants P&E Mining Consultants Inc., with metallurgical test work completed by SGS Canada Inc.'s Lakefield office, process plant design and costing by DENM Engineering Ltd., and environmental and permitting led by CIMA Mexico.

Capital and operating costs

The Los Ricos North project has been envisioned as an open-pit mining operation, with contract mining comprising five open pits. The first four pits contain oxide mineralization and will be mined over years 1 to 9 of the project, with the final pit containing sulphide mineralization which will be mined in years 10 to 13.

The processing plant comprises conventional crushing, grinding, cyanide tank leaching, tailings filtration (dry stack) and Merrill Crowe precipitation for the oxide mineralization. For the sulphide mineralization, processing will be completed through a flotation circuit which is included in expansion capital and will be constructed in year eight of the project.

Water supply to the process plant will be provided by a nearby surface water source and high voltage grid power will be provided by the local utility.

Mining

The open-pit mining will be contracted and carried out by drilling and blasting followed by conventional loading and truck haulage to the waste rock storage facilities and the process plant.

Metallurgy

A preliminary metallurgical test program was carried out by SGS Lakefield of Ontario, Canada, on four Los Ricos North deposit areas -- Favor, Trini, Casados and Orito. Based on the zone geology, Favor, Trini and Casados (oxide) were designated for whole mineralized material cyanidation testing. The Orito (sulphide) sample was deemed to be flotation ideal. The subsequent oxide testing included grinding (no comminution testing) and leaching only. The sulphide testing included grinding and bulk flotation to produce a single bulk concentrate with locked cycle (LCT) testing completed. The samples comprised four drill core rejects representing the noted zones of the mineral resource. This preliminary test program estimated a gold and silver oxide recovery of 87 per cent for both. The sulphide recovery on the Orito sample recovered 76 per cent gold, 88 per cent silver, 89 per cent copper, 89 per cent zinc and 75 per cent lead.

Mineral resource estimate

The basis for the PEA is the mineral resource estimate completed by P&E in the National Instrument 43-101 technical report on the initial mineral resource estimate for the Los Ricos North project located in Jalisco state, Mexico, which has an effective date of Dec. 1, 2021.

Qualified persons

Robert Harris, PEng, and David Duncan, PGeo, are the GoGold qualified persons, and Eugene Puritch, PEng, FEC, CET, president of P&E Mining Consultants, and David Salari, PEng, DENM Engineering, are independent qualified persons, all as defined by National Instrument 43-101 and whom are responsible for the technical information in this press release.

Los Ricos district exploration projects

The company's two exploration projects at its Los Ricos property are in Jalisco state, Mexico. The Los Ricos South project began in March, 2019, and an initial mineral resource estimate was announced on July 29, 2020, which disclosed a measured and indicated mineral resource of 63.7 million ounces AgEq grading 199 grams per tonne AgEq contained in 10 million tonnes, and an inferred mineral resource of 19.9 million ounces AgEq grading 190 g/t AgEq contained in 3.3 million tonnes. An initial PEA on the project was announced on Jan. 20, 2021, indicating an after-tax NPV (5 per cent) of $295-million. The Eagle concession was acquired in October, 2022, and is adjacent to the main area which contains the initial mineral resource.

The Los Ricos North project was launched in March, 2020, and an initial mineral resource estimate was announced on Dec. 7, 2021, which disclosed an indicated mineral resource of 87.8 million ounces AgEq grading 122 g/t AgEq contained in 22.3 million tonnes, and an inferred mineral resource of 73.2 million ounces AgEq grading 111 g/t AgEq contained in 20.5 million tonnes.

About GoGold Resources Inc.

GoGold Resources is a Canadian-based silver and gold producer focused on operating, developing, exploring and acquiring high-quality projects in Mexico. The company operates the Parral tailings mine in the state of Chihuahua and has the Los Ricos South and Los Ricos North exploration projects in the state of Jalisco. Headquartered in Halifax, N.S., GoGold is building a portfolio of low-cost, high-margin projects.

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