Mr. Collin Kettell reports

NEW FOUND REPORTS POSITIVE PHASE 1 METALLURGICAL TEST RESULTS DEMONSTRATING 90% TO 96% GOLD EXTRACTION AT QUEENSWAY

New Found Gold Corp. has released results from the 2023 phase 1 metallurgical testing program conducted on drill core samples collected as part of the exploration program at its 100-per-cent-owned Queensway project, located on the Trans-Canada Highway 15 kilometres west of Gander, Nfld.

Highlights:

• Phase 1 metallurgical testing commenced in 2023 and focused on three mineralized zones -- Keats Main, Golden Joint and Lotto. A total of 116 variability composites were generated from approximately 1,000 metres of drill core with a combined weight of 3,400 kilograms, from which three master composites were assembled.
• Weighted average gold extraction on all 116 variability composite samples, broken out by five cross-sections, range from 90 per cent to 96 per cent. Gold extractions were achieved using both gravity separation and conventional carbon-in-leach (CIL) on the gravity tails.
• Gold extraction across the three zones tested in phase 1 demonstrates similar metallurgical characteristics and achieved similar extractions from both gravity and CIL.
• The company is currently undertaking a phase 2 metallurgical testing program focused on Iceberg and Iceberg East, with composites having been selected for shipment to Base Metallurgical Laboratory Ltd. in Kamloops, B.C., and testing is set to begin in Q2 2024.
• Metallurgical test work at Queensway has been designed and supervised by Gary Simmons (MMSA (Mining & Metallurgical Society of America) QP (qualified person) No.: 01013QP) as an independent consultant. Mr. Simmons is an internationally recognized metallurgist who previously served as director of metallurgy and technology of Newmont Mining Corp., where he managed the corporate metallurgical laboratory R&D (research and development) staff and a number of process engineers responsible for global Newmont process development and design engineering.

Mr. Simmons commented: "The phase 1 geo-metallurgical characterization and test work program results confirm the high-grade nature of the project and our high gold extraction expectations for Keats Main, Lotto and Golden Joint vein systems. The program further demonstrates that conventional gravity separation and CIL are well-suited recovery methods for gold mineralization at Queensway. Additional flowsheet development work is ongoing to determine if marginal improvements in gold extraction can be achieved."

Ron Hampton, chief development officer of New Found, stated: "These initial results of the metallurgical testing indicate excellent gold extraction from the mineralization observed at the Keats, Lotto and Golden Joint. In addition, this test work indicates the suitability of processing utilizing conventional gravity separation and carbon-in-leach (CIL) technology."

Additional details

Phase 1 scope of work consisted of chemical and mineralogical analyses, environmental characterization, establishment of comminution parameters, gold extraction methods, reagent consumption, cyanide detoxification, and solid-liquid separation properties for process and tailings streams.

Results, summarized in the table entitled "Weighted average gravity leach test results," which include all 116 variability composites, indicate that mineralized zones are generally high grade and contain significant free-milling gold, which is amenable to both gravity and CIL extraction. Free gold grains greater than 150 microns in size were observed predominantly in the quartz veins located throughout the zones. Weighted average gold extraction for all targeted mineralized zones ranged from 90 per cent to 96 per cent when reduced to a product size of 75 microns.

Comminution test work indicated that the tested material had an average SMC (SAG mill comminution) Axb index of approximately 62 and an average bond work index (BWI) of approximately 17.5 kWh/t (kilowatt-hours per tonne), which would be considered a medium-hard ore for SAG milling and medium-hard ore for ball milling.

Laboratory test work was carried out by Base Metallurgical Laboratory Ltd. in Kamloops, B.C.

At-the-market quarterly update

The company is pleased to provide a quarterly update with respect to the company's at-the-market (ATM) equity offering program implemented on Aug. 26, 2022, pursuant to an equity distribution agreement with BMO Nesbitt Burns Inc., Paradigm Capital Inc. (together, the Canadian agents) and BMO Capital Markets Corp. (the United States agent).

From the commencement of the ATM to March 31, 2024, the company issued an aggregate of 6,614,143 common shares in the capital of the company, through the facilities of the TSX Venture Exchange and NYSE American, at an average price per ATM share of $5.66. From Dec. 31, 2023, to March 31, 2024, the company issued 2,561,690 ATM shares for aggregate gross proceeds of $11,878,079. Pursuant to the equity distribution agreement, a cash commission of $279,135 was paid to the agents in connection with the issuance of the ATM shares during the last fiscal quarter, resulting in aggregate net proceeds of $11,598,891.

Receipt of audit opinion with going concern qualification

Pursuant to the disclosure requirements of the NYSE American company guidelines sections 401(h) and 610(b), New Found is reporting that its audited financial statements for the fiscal year ended Dec. 31, 2023, included in New Found's annual report on Form 40-F filed with the Securities and Exchange Commission (SEC) on March 21, 2024, contain an audit opinion from its independent registered public accounting firm that includes an explanatory paragraph related to New Found's ability to continue as a going concern. This announcement does not represent any change or amendment to the company's financial statements or to its annual report on Form 40-F for the fiscal year ended Dec. 31, 2023.

Qualified person

The scientific and technical information disclosed in this press release were reviewed and approved by Greg Matheson, PGeo, chief operating officer, and a qualified person as defined under National Instrument 43-101. Mr. Matheson consents to the publication of this press release dated April 3, 2024, by New Found. Mr. Matheson certifies that this press release fairly and accurately represents the scientific and technical information that forms the basis for this press release.

About New Found Gold Corp.

New Found holds a 100-per-cent interest in the Queensway project, located 15 kilometres west of Gander, Nfld., and just 18 km from Gander International Airport. The project is intersected by the Trans-Canada Highway and has logging roads crosscutting the project, high-voltage electric power lines running through the project area, and easy access to a highly skilled work force. The company is currently undertaking a 650,000-metre drill program at Queensway and is well financed for this program with cash and marketable securities of approximately $53.6-million as of April, 2024.

Acknowledgements

New Found acknowledges the financial support of the Junior Exploration Assistance Program, Department of Natural Resources, government of Newfoundland and Labrador.

We seek Safe Harbor.