Mr. Patrick Downey reports

OREZONE REPORTS FIRST QUARTER 2023 RESULTS

Orezone Gold Corp. has released its operational and financial results for the three months ended March 31, 2023. The consolidated financial statements and management's discussion and analysis are available on the company's website and on its profile on SEDAR. The company will host a conference call and webcast on May 10, 2023, commencing at 8 a.m. PDT, to discuss the company's first quarter results. Additional details are provided at the end of this news release.

(All dollar amounts are in U.S. dollars unless otherwise stated.)

Patrick Downey, president and chief executive officer, commented: "Earnings from mine operations exceeded $39-million in Bombore's first full quarter of commercial production and have provided a strong start to the company's net earnings and free cash flow for 2023. Gold production of 41,301 ounces was helped by excellent performance of the process plant with mill throughput at 13 per cent above design and recoveries at a steady 92.2 per cent. Our operational efficiency and stringent cost management assisted in offsetting cost pressures from a stronger local currency and high in-country diesel prices. With robust gold prices, AISC margin was $966 per oz sold or an impressive 51 per cent.

"Our safety record continues to be exemplary with no lost-time injuries for the quarter from 928,000 hours worked and an LTIFR of zero since 2021 when construction of the phase I oxide plant commenced.

"On the growth front, work on our grid power connection is advancing at a steady rate with the awards of all major installation contracts and order placements for schedule-critical equipment. Significant savings from current on-site power generation will be realized once the connection is energized, expected in Q4 2023. Lastly, work on the Bombore phase II expansion study update remains on track for completion by the end of this third quarter."

First quarter 2023 highlights

Operational:

• Produced 41,301 gold ounces (oz);
• Sold 43,139 gold oz at an average realized price of $1,892 per oz;
• AISC (all-in sustaining cost) of $926 per gold oz sold;
• Zero lost-time injuries with 928,000 personnel hours worked.

Financial:

• Revenue of $81.7-million;
• Earnings from mine operations of $39.7-million;
• Net income and net income per share (basic) attributable to Orezone shareholders of $22.6-million and seven cents, respectively;
• Adjusted earnings and adjusted earnings per share (basic) attributable to Orezone shareholders of $24.6-million and seven cents, respectively;
• Cash flow from operations before changes in non-cash working capital of $41.1-million ($38.9-million after changes in non-cash working capital);
• Free cash flow of $31.5-million;
• Cash of $45.2-million at March 31, 2023.

Corporate:

• Rob Henderson appointed as vice-president of technical services and Kevin MacKenzie appointed as vice-president of corporate development and investor relations on Jan. 5, 2023;
• Non-brokered private placement of 13.0 million common shares at $1.27 (Canadian) per share arranged with a large, well-established, global institutional fund manager and closed on March 8, 2023, resulting in net proceeds of $11.6-million.

Commissioning of the process plant with ore commenced in late August, 2022, resulting in the pouring of first gold on Sept. 10, 2022, but commissioning was interrupted in late September, 2022, when one of the two working permanent gensets experienced a major failure. As a consequence, mill operations were stopped in October, 2022, and only recommenced in November, 2022, when replacement rental gensets were mobilized, installed and put into service. With full and reliable power, the process plant quickly ramped up daily mill tonnages, which led to Bombore declaring commercial production on Dec. 1, 2022.

Bombore production results

Gold production in Q1 2023 was 41,301 oz, an increase of 86 per cent from the 22,258 oz produced in Q4 2022. The higher gold production is attributable to a 79-per-cent jump in plant throughput combined with slight increases in ore grades and plant recoveries. The process plant performed exceptionally well in Q1 2023 with throughput averaging 16,063 tonnes per day, which exceeded nameplate by approximately 13 per cent, while process recoveries were consistent with design levels. Favourable ore characteristics and high levels of plant availability and utilization led to a strong quarterly performance. Scheduled maintenance was conducted during the quarter with major mill shutdowns for mill reline and scheduled changeouts of wear parts planned for in later quarters of the year.

Bombore operating costs

AISC per gold ounce sold in Q1 2023 was $926, a decrease of 14 per cent from the AISC per gold ounce sold of $1,075 in Q4 2022. The lower AISC was driven mainly by improved performance in unit costs and a 3-per-cent increase in ore grades milled. Cash cost per ore tonne processed covering mining, processing and site G&A (general and administrative) declined by 21 per cent or $4.96 from $23.92 in Q4 2022 to $18.96 in Q1 2023 as a result of the higher mill throughput and the corresponding decrease in fixed unit costs. In addition, processing costs benefited from the optimized consumption of major reagents through enhancements in operator controls and a better understanding of field operating conditions. However, cost of power generation remains elevated and above budget due to persistently high in-country diesel prices set by the Burkina Faso government. The company had expected a moderation in diesel prices starting in 2023 to reflect falling global oil prices in the second half (H2) of 2022, but decreases in diesel prices have not yet materialized. This high diesel cost also had a negative effect on unit mining costs.

Bombore growth capital projects

Grid power connection

The project to connect Bombore to Burkina Faso's national grid is progressing well and remains on schedule for completion before the end of the 2023 year. The company has engaged ECG Engineering Pty. Ltd. to manage the design, construction and commissioning of the new high-voltage transmission line and dedicated substations, and will work closely with Sonabel, Burkina Faso's state-owned electricity company, to ensure timely deliverables and adherence to schedule. ECG is a specialized engineering firm that has successfully delivered on similar projects in West Africa, including Burkina Faso.

To date, all long-lead equipment orders have been placed and all major contracts have been awarded. Land compensation for the transmission line corridor has commenced under the direction of Sonabel and work to clear this ground corridor will follow shortly upon the mobilization of contractor equipment and personnel. Drawings and designs for the power line and substations have been submitted to Sonabel and are pending their final review and approval.

RAP phases II and III

RAP phases II and III involve the construction of four new resettlement villages (MV3, MV2, BV2 and BV1). The company has sequenced MV3 as the first village to construct in order to gain access to mining areas that are currently contemplated in the 2024 mine plan. MV3 is the largest of the resettlement villages and requires the new erection of over 1,200 private homes and public structures.

The start of construction for the MV3 village encountered a slight delay in the first two months of 2023 as communities conducted sacred ceremonies for the new resettlement grounds. Earthwork for MV3 is now complete and contractors have commenced the mobilization of personnel, materials and equipment to site.

RAP compensation for displaced households is organized to begin in Q2 2023.

2023 feasibility study update for the phase ii expansion (2023 FS)

The 2019 feasibility study (FS) contemplated the construction of a 2.2-million-tonne-per-annum (tpa) hard rock facility, which would commence production in the third year of oxide operations. Based on the mineral reserves outlined in this 2019 FS, the overall plant capacity was to remain at a nominal 5.2 million tonnes per annum, comprising of 3.0 million tonnes per annum of oxides and 2.2 million tonnes per annum of hard rock, resulting in an average gold production profile of 134,000 oz per year for the first ten years of commercial operations.

Subsequent to the 2019 FS, over 100,000 metres of drilling have been completed leading to the discovery of the near-surface P17NE deposit and extensions of other known higher-grade hard rock zones with the main Bombore deposit. Results of drilling undertaken in 2022 are expected to successfully convert inferred resources of higher-grade hard rock material into the measured and indicated categories. The updated resource modelling is progressing, and a new resource, reserve and mine plan are targeted for completion in Q3 2023.

Metallurgical testwork is also nearing completion, which confirms more rapid leach kinetics and a resultant significant decrease in required leach time from the 42 hours shown in the 2019 FS to the estimated 24 hours to be used in plant design for the 2023 FS. The company expects the new hard rock expansion will be sized as a 4.4-million-tonne-per-annum stand-alone circuit to operate independently to the existing 5.7-million-tonne-per-annum oxide circuit, a notable increase to the 5.2-million-tonne-per-annum combined circuit in the 2019 FS. The company has chosen to expand the circuit size as it believes recent drilling successes have demonstrated that the Bombore mine is capable of supporting a larger annual operation. The Bombore deposit remains open to further extensions and potential new discoveries from future drilling.

For the 2023 FS, the company has engaged the same consultants (Lycopodium and Knight Piesold) that completed the development and construction of the current phase I operations to ensure continuity and consistency. Flowsheet development is complete, and equipment and capital costs are well advanced. Of note is that the carbon-in-leach and elution circuits will be copies of those in current operations.

The company has held early discussions with its senior lender, Coris Bank, about its participation in this future phase II expansion. Coris Bank has indicated that it is supportive of this expansion and looks forward to furthering discussions as the company draws closer to completing its 2023 FS.

Conference call and webcast

Orezone will host a conference call and audio webcast to discuss first quarter 2023 results on Wednesday, May 10, 2023, at 8 a.m. PDT (11 a.m. EDT).

Webcast

Date:  Wednesday, May 10, 2023

Time:  8 a.m. Pacific Time (11 a.m. Eastern Time)

Please register for the webcast on-line.

Conference call

Toll-free in United States and Canada:  1-800-715-9871

International callers:  646-307-1963

Event ID No.:  8574266

Qualified persons

The scientific and technical information in this news release was reviewed and approved by Dr. Pascal Marquis, Geo, senior vice-president of exploration, Rob Henderson, PEng, vice-president of technical services, and Patrick Downey, PEng, president and CEO, all of whom are qualified persons as defined under National Instrument 43-101, Standards of Disclosure for Mineral Projects.

About Orezone Gold Corp.

Orezone is a Canadian mining company operating the open-pit Bombore gold mine in Burkina Faso. Orezone is focusing on mining and processing the phase I near-surface free-dig oxides at a planned annual throughput of 5.7 million tonnes. The company believes that Bombore has a significant underlying sulphide resource to support a substantially larger phase II expansion. The company has recently completed a resource definition drill program, and plans to issue an updated mineral resource, reserve and life-of-mine plan, as part of this phase II expansion. It is expected that the pending study will be completed in Q3 2023 to be followed by a production decision.

Orezone is led by an experienced team focused on social responsibility and sustainability with a proven record in project construction and operations, financings, capital markets, and mergers and acquisitions.

The technical report for the 2019 feasibility study on the Bombore project, entitled, "NI 43-101 Technical Report (Amended) Feasibility Study of the Bombore Gold Project," is available on SEDAR under the company's profile.

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