Mr. Ron Woo reports

GOLD MOUNTAIN REPORTS ITS Q2 2024 FINANCIAL AND OPERATING RESULTS

Gold Mountain Mining Corp. has released its financial and operating results for the three months and six months ended July 31, 2023. The company's financial statements and management's discussion and analysis are available for download on SEDAR+ and the company's website.

Second quarter 2024 highlights:

• Gold sales of 965 ounces from 8,597 tonnes delivered grading at an average of 4.01 grams per tonne;
• Quarterly revenue of $2,202,855 at an average realized gold price of $2,246 per ounce of gold sold;
• Mine operating loss of $297,566;
• Net loss of $977,547 or one cent per share (basic) for Q2 2024 compared with a loss of $2,557,986 or three cents per share (basic) for Q2 2023;
• Negative adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $709,513;
• Total cash costs per ounce sold of $2,358.

Operational update

The company experienced operational challenges during the second quarter, which ultimately resulted in less-than-anticipated production from the Elk gold project. Delays were largely due to one-off matters, including a longer-than-anticipated regulatory approval timeline for the company's pit pumping plan and drill and blasting operational issues. In August, 2023, the company saw a return to production rates that are consistent with the performance in the first quarter.

Having addressed the its operational challenges, the company's mandate over the next four months is to transition into a steady state of production. The company is continuing to improve the accuracy of grade forecasting and generate a greater understanding of the orebody through improved data collection/analysis, drilling and blasting designs, and sampling techniques. The company is also evaluating approaches to mine with greater efficiently and more selectivity with geological and operations personnel working together to optimize vein exposure and reduce excess dilution to achieve higher overall average grades mined. The company anticipates continuing to see incremental improvements in accuracy of grade forecasting and increased consistency in mining operations production rates.

Gold Mountain was encouraged by the results of its metallurgical testwork program completed in calendar 2022, which indicated the potential for including a gravity concentration process into the production assaying procedure. Following the initial testwork, the company has completed a six-week trial program whereby production assays samples from the Elk mine were assayed by the gravity concentration process in parallel to the existing production assay procedure to better understand the variances between the two methods and confirm if the newly proposed method more accurately represents in situ gold grade. The results of the six-week test period continue to positively demonstrate that the gravity assay process improves the accuracy of the assay procedure, and the company is currently working on the next steps with the goal of revising the sampling methodologies and assaying standard operating procedures to optimize production sample assay results.

In addition to the above mine optimization programs, the company continues to work with the respective governing bodies to obtain the necessary permits for the expansion of mining operations from the current 70,000 tonnes permitted to 324,000 tonnes per year, as contemplated in the 2021 preliminary economic assessment (further discussed in the company's management's discussion and analysis for the quarter ended July 31, 2023, a copy of which is available at SEDAR+). A majority of the proposed expansion of the Elk mine involves transitioning to underground mining in the future. To do so, the company must rehabilitate the historic underground decline that was developed by previous owners and is currently flooded.

The company has begun early engagement with surrounding indigenous communities to pro-actively address any community concerns respecting the future mining plans. The company is aware of and acknowledges each respective indigenous nation's decision-making process that will continue independently from the federal and provincial regulatory regimes.

Timing and analysis of the underground development are currently continuing. The company continues to evaluate all current and historic geological information, which will contribute to the company's updated resource estimate and preliminary economic assessment anticipated to be completed prior to the end of calendar 2023. The company will look to initiate technical and economic studies required for the permit expansion from 70,000 tonnes to 324,000 tonnes per year starting in the next calendar year.

The company is also announcing that Alex Bayer will be stepping down as head of indigenous engagement, general counsel and corporate secretary of the company, effective Sept. 21, 2023. Mr. Bayer will remain with the company to provide consulting services as needed.

Qualified person

The foregoing technical information was approved by Ron Woo, PEng, a qualified person, as defined under National Instrument 43-101, the chief executive officer for the company.

About Gold Mountain Mining Corp.

Gold Mountain is a British Columbia-based gold and silver production, exploration and development company focused on the development of the Elk gold mine, a producing mine located 57 kilometres from Merritt in south-central British Columbia.

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