Mr. Brad Langille reports

GOGOLD ANNOUNCES UPDATED MINERAL RESOURCE AND PEA WITH NPV OF US$458M AT LOS RICOS SOUTH

GoGold Resources Inc. has released the results of its updated preliminary economic assessment (PEA) and mineral resource estimate (MRE) at its Los Ricos South (LRS) project located in Jalisco state, Mexico. The updated PEA and MRE include the addition of the Eagle concession to the project, acquired in October, 2022, as well as additional drilling completed in the Main zone of the project since the release of the initial PEA in January, 2021.

Highlights of the PEA, with a base case silver price of $23.75/ounce and gold price of $1,850/ounce, are as follows (all figures in U.S. dollars unless otherwise stated):

• After-tax net present value (NPV) (using a discount rate of 5 per cent) of $458-million with an after-tax internal rate of return of 37 per cent (base case);
• 11-year mine life producing a total of 88 million payable silver equivalent (AgEq) ounces, consisting of 47 million silver ounces, 493,000 gold ounces and 14 million pounds of copper;
• Initial capital costs of $148-million, including $19-million in contingency costs, over an expected 18-month build, additional expansion capital of $69-million and sustaining capital costs of $72-million over the life of mine (LOM);
• Average LOM operating cash costs of $8.15/oz AgEq, and all-in sustaining costs (AISC) of $9.02/oz AgEq;
• Average annual production of eight million AgEq oz;
• Approximately half of LOM metal production is longhole underground (UG), and approximately half is open-pit (OP) mining.

"We are very pleased with the work completed by our consultants and our technical team on the mineral resource and PEA for Los Ricos South. The projected cash flows are very substantial, especially when combined with our Los Ricos North PEA that was completed in March of this year. With an NPV of $458-million at LRS and $413-million at LRN, we now have a total NPV of $871-million in our Los Ricos district. We continue to advance the studies and we will complete a prefeasibility study (PFS) for LRS this fall," said Brad Langille, president and chief executive officer. "The PFS is ongoing and we are currently completing the advanced geotechnical work with our consultants. We will also continue to focus our efforts on the mine plan as we believe further optimization opportunities can be made. With our strong balance sheet we will continue to advance the project rapidly."

Highlights of the updated mineral resource:

• Increase of 55 per cent in measured and indicated silver equivalent ounces from initial January, 2021, MRE, with 39-per-cent increase in measured and indicated AgEq grade;
• Inclusion of 1.9 million tonnes measured and indicated at excellent grade of 516 g/t AgEq in underground Eagle deposit;
• Measured and indicated mineral resource at LRS of 98.6 million ounces AgEq grading 276 grams per tonne AgEq contained in 11.1 million tonnes (Mt);
• Increased confidence in MRE, with conversion of approximately nine million ounces AgEq from initial January, 2021, inferred mineral resources to measured and indicated, resulting in 11 million ounces AgEq in inferred mineral resources at LRS grading 248 g/t AgEq contained in 1.4 Mt;
• Total Los Ricos measured and indicated mineral resources of 186 million ounces AgEq, including Los Ricos North;
• Total Los Ricos inferred mineral resources of 84 million ounces AgEq, including Los Ricos North.

Updated PEA summary

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

Capital and operating costs

The LRS project has been envisioned as a combined underground and open-pit mining operation, with contract underground mining in years 1 to 7 of the mine plan, supplemented by contract open-pit mining in years 3 to 11.

The process plant comprises conventional crushing and grinding followed by cyanide tank leaching. Back-end filtration is required to maximize water recycling (dry stack tailings) as well as a SART (sulphidation, acidification reneutralization and thickening) circuit to regenerate cyanide back to the process and to produce a saleable Cu2S (copper sulphide) product. Water supply to the process plant is provided by a nearby seasonally charged water dam and high-voltage grid power is provided by the local utility. Expansion capital includes the cost to increase the process plant capacity from 1,750 tonnes per day to 4,000 tonnes per day in year 3.

Mining

The contract underground mining will involve longhole stoping and cemented paste back filling of the mined-out stopes. Approximately 10 per cent of the underground feed to the process plant will be sourced in close proximity to historical workings. The open-pit mining will be contracted and carried out by drill and blast followed by conventional loading and truck haulage to the waste rock storage facilities and the process plant.

Metallurgy

A metallurgical test program was carried out by SGS Lakefield of Ontario, Canada. The program included grinding and leaching as well as comminution testing. The leach samples comprise drill core sampling rejects representing the various zones of the mineral resource and whole HQ drill core for the comminution work. This preliminary test program estimated average gold and silver respective metallurgical recoveries of 95 per cent and 85 per cent.

Surface rights agreement

The company has an agreement with the Ejido of Cinco Minas, which owns the surface rights over all of those concessions included in this PEA. The agreement allows GoGold to mine and explore the 1,280 hectares of land that is owned by the local Ejido for a period of 12 years with an option to renew for a further 12 years.

Mineral resource estimate

The basis for the PEA is the mineral resource estimate completed by P&E for the Los Ricos South project located in Jalisco state, Mexico, which has an effective date of Sept. 8, 2023, with a National Instrument 43-101 compliant technical report to be filed within 45 days of this news release. A summary of the mineral resource estimate is provided herein.

Mineral resource estimate methodology -- LRS

A total of 585 drill holes totalling 93,591 metres were used in the MRE.

P&E collaborated with GoGold personnel to develop the mineralization models, estimates and reporting criteria for the resources at Los Ricos. Mineralization models were initially developed by GoGold and were reviewed and modified by P&E. A total of eight individual mineralized domains have been identified through drilling, surface and historical underground sampling. The modelled mineralization domains are constrained by individual wireframes based on a 0.30 g/t AuEq cut-off for low-grade domains or three g/t AuEq for high-grade domains.

Mineralization wireframes were used as hard boundaries for the purposes of estimation.

A three-dimensional subblocked model, with three m by three m by three m parent, and one m by one m by one m subblocks, was used for the mineral resource estimate. The block model consists of estimated gold, silver and copper grades, estimated bulk density, and classification criteria. Au and Ag equivalent block grades were subsequently calculated from the estimated Au, Ag and Cu grades.

Sample assays were composited to a one m standard length. Au and Ag grades were estimated using inverse distance cubed weighting of between one and 12 composites, with a maximum of two composites per drill hole. Composites were capped prior to estimation by mineralization domain. Composite samples were selected within an anisotropic search ellipse oriented down the plunge of identified high-grade trends.

Individual bulk density values were applied to mineralized domains separately and were statistically determined using 4,516 measurements taken from drill holes.

Classification criteria were determined from observed grade and geological continuity as well as variography. Measured mineral resources are informed by three or more drill holes within 30 m; indicated mineral resources are informed by two or more drill holes within 60 m.

P&E is of the opinion that the mineral resource estimates are suitable for public reporting and are a reasonable representation of the mineralization and metal content of the Los Ricos deposits.

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 J. Salari, PEng, DENM Engineering, are independent qualified persons all as defined by National Instrument 43-101 and have reviewed and approved 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, with the most recent mineral resource estimate announced on Sept. 12, 2023, which disclosed a measured and indicated mineral resource of 98.6 million ounces AgEq grading 276 g/t AgEq contained in 11.1 million tonnes, and an inferred mineral resource of 11 million ounces AgEq grading 248 g/t AgEq contained in 1.4 million tonnes. The most recent PEA on the project was announced on Sept. 12, 2023, indicating an after-tax NPV (5 per cent) of $458-million.

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 estimate of 87.8 million ounces AgEq grading 122 g/t AgEq contained in 22.3 million tonnes, and an inferred mineral resource estimate of 73.2 million ounces AgEq grading 111 g/t AgEq contained in 20.5 million tonnes. An initial PEA on the project was announced on May 17, 2023, indicating an NPV (5 per cent) of $413-million.

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 project 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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