Mr. Greg Matheson reports

NEW FOUND TO ACQUIRE LABRADOR GOLD'S KINGSWAY PROJECT

New Found Gold Corp. has entered into a property purchase agreement with Labrador Gold Corp. (LabGold), providing for the sale by LabGold to New Found of a 100-per-cent interest in LabGold's Kingsway project, located in Gander, Nfld., as well as certain related assets of LabGold. As consideration for the purchased assets, New Found will issue to LabGold such number of common shares in New Found equal to $20-million divided by the closing price of the shares on the TSX Venture Exchange on the last trading day prior to the closing date of the transaction.

Greg Matheson, chief operating officer of New Found, stated: "The acquisition of the Kingsway project announced today is a significant building block to the district-scale potential of the Queensway project. We recognize the transformative exploration contributions by the LabGold team, making several early discoveries at Kingsway, and we look forward to continuing exploration and drilling aimed at unlocking its full potential. Kingsway today is reminiscent of Queensway when New Found acquired the project back in 2016 with numerous early discoveries and large swaths of underexplored structures that later evolved into significant mineralized zones. We like to think that Kingsway is entering its discovery phase.

"The combined projects have over 20 kilometres of strike length along the Appleton fault zone, which more than doubles the existing strike length currently within the Queensway North project. Our exploration and operations team at New Found is well suited to explore this geological domain and mineralization style, and we expect to unleash that expertise in realizing the potential at Kingsway."

Kingsway project details:

• The Kingsway project contains 311 mineral claims covering 7,775 hectares and adjoins New Found's Queensway project along several borders.
• The Kingsway project contains many similar geological characteristics to the Queensway project, including over 12 kilometres of presumed strike length along the Appleton fault zone (AFZ).
• Exploration over the past several years by LabGold has resulted in several high-grade gold discoveries, including Big Vein, Pristine and Golden Glove, that display similar mineralizing styles to the Queensway project.

Project synergies:

• New Found's base of geologic knowledge of the central Newfoundland gold belt and the AFZ will be applied to the Kingsway project to expand on existing discovery areas and to identify additional mineralized zones.
• The combined projects offer increased potential to solidify the district-scale nature of the Queensway project, with the additional 12 km of strike along the AFZ lending the ability to identify and build upon additional zones of mineralization.
• New Found is well capitalized and has significant exploration infrastructure and an experienced exploration team in place that will allow for efficient exploration that is required to unlock the mineral potential at the Kingsway project.

Details of the transaction

The transaction requires the approval of 66-2/3rds per cent of the votes cast by holders of common shares of LabGold at a shareholder meeting to be called by LabGold. In addition, the transaction is subject to customary closing conditions, including the approval of the TSX-V. It is anticipated that the closing of the transaction will occur in the third quarter of 2024.

The agreement includes deal-protection provisions, including customary non-solicitation provisions, a right for New Found to match any superior proposal, and a termination fee of $500,000, payable by LabGold, in customary circumstances. Directors, officers and certain shareholders of LabGold, owning approximately 2.35 per cent of LabGold's common shares, have entered into voting support agreements, pursuant to which they have agreed to vote all the LabGold shares they own, or control, in favour of the transaction.

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.

We seek Safe Harbor.