Mr. Patrick Downey reports

OREZONE REPORTS 2023 YEAR-END AND Q4 RESULTS, AND PROVIDES 2024 GUIDANCE

Orezone Gold Corp. has released its operational and financial results for the fourth quarter and full year ended Dec. 31, 2023. The company will host a conference call and webcast on March 27, 2024, commencing at 8 a.m. PDT, to discuss its 2023 results and 2024 guidance. 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: "We had strong end to the year with the production of 33,916 gold ounces in the fourth quarter, allowing us to meet our full-year production and cost guidance metrics. In its first full year of commercial production, the Bombore mine was successful in producing 141,425 gold ounces, which helped the company generate $80-million in operating cash flow and $54-million in adjusted earnings, and pay down $33.8-million in principal on its senior debt. We expect 2024 to be another profitable year even though guided gold production will be modestly lower than 2023. We continue to advance discussions with our senior lender for the financing of our phase II hard rock expansion, which will pave the way for us to unlock further value from our Bombore mine. Additional announcements on the company's financing plans are expected in the second quarter of 2024."

Full-year 2023 operational highlights (100-per-cent basis unless otherwise noted):

• Safety: The company continued with its strong safety performance in 2023 with 4.4 million hours worked without a lost-time injury. The company remains steadfast in promoting worker health through continuous training and safety resources.
• Gold production: The company delivered gold production of 141,425 ounces within the guidance range of 140,000 to 155,000 ounces. Mill throughput was 5.75 million ore tonnes, ahead of nameplate capacity by 10.5 per cent.
• All-in sustaining costs: The company achieved AISC (all-in sustaining cost) per ounce sold of $1,127 per ounce, which is toward the lower end of the company's revised guidance range of $1,100 to $1,180 per ounce.
• Profitability and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization): The company reported net income of $43.1-million and 12 cents per share (basic and diluted) after minority interest. Adjusted EBITDA was $120.0-million, demonstrating the Bombore mine's strong operating performance in its first full year of commercial production.
• Cash flow: The company generated cash from operating activities of $104.8-million before working capital changes and $80.0-million after working capital changes.
• Sustaining capital: Sustaining capital totalled $14.0-million, slightly below the guidance range of $15-million to $16-million, as certain capital projects carried over into 2024 for completion.
• Growth capital:
  • Grid power: The installation of the 132-kilovolt transmission line, mine substation and switching station to connect Bombore to Burkina Faso's national grid was completed in December, 2023, and commissioned in January, 2024, with input and guidance from SONABEL, Burkina Faso's state-owned electricity company. The line was successfully energized in late January, 2024, to commence delivery of lower-cost grid power to site. Construction costs in 2023 totalled $18.2-million.
  • Resettlement action plan (RAP) -- phases II and III: The RAP will help relocate communities occupying areas in the southern half of the Bombore mining permit. The company significantly advanced construction of the largest resettlement site (MV3) in 2023 with plans to relocate households into MV3 in Q2 2024 in order to gain mining access to the Siga pits in Q3 2024. During 2023, the company incurred RAP expenditures totalling $10.4-million.
• Phase II hard rock expansion feasibility study (FS): On Oct. 11, 2023, the company released the results of an updated independent feasibility study for its proposed phase II expansion (2023 FS). The 2023 FS is based on the construction of a 4.4-million-tonne-per-annum (tpa) hard rock process plant to treat lower transition and fresh rock ore and would operate alongside the existing phase I oxide plant to significantly increase overall gold production of the Bombore mine.

Q4 2023 highlights (100-per-cent basis unless otherwise noted):

• Gold production: Gold production was 33,916 ounces, a 10-per-cent increase from Q3 2024 gold production, driven by continued strong mill throughput and improved head grades from greater ore release in the pits and lower effect of historical artisanal depletion.
• AISC: AISC per ounce sold was $1,246 per ounce, negatively impacted by higher Burkina Faso royalty rates, which came into effect in October, 2023.
• Profitability and adjusted EBITDA: The company reported net income of $4.0-million and one cent per share (basic and diluted) after minority interest. Adjusted EBITDA was $26.7-million.
• Cash flow: The company generated cash from operating activities of $21.9-million before working capital changes and $13.9-million after working capital changes.

2023 corporate highlights and subsequent events:

• Consolidated cash of $19.5-million at Dec. 31, 2023, an increase of $10.3-million from Dec. 31, 2022;
• Principal repayment of 20.5 billion West African CFA francs ($33.8-million) in 2023 on the company's senior loans with Coris Bank International (Coris Bank);
• Two new director appointments: (a) Matthew Quinlan was elected as a new director on June 15, 2023, as an independent nominee of Resource Capital Fund VII LP, replacing Steve Axcell, who did not stand for re-election; and (b) Sean Harvey was appointed as a new member on Jan. 11, 2024, after recently retiring as chair of Perseus Mining Ltd.

Gold production in 2024 is forecasted to range between 110,000 and 125,000 gold ounces with quarterly production expected to be higher in the first and last quarters of the year. Mining will remain confined to the northern zone of the mining permit until better-grade oxide ore can be accessed in the southern zone. Staged access to higher-grade southern pits will become available as RAP phases II and III progress. The 2024 mine plan anticipates the start of mining in the Siga pits in Q3 2024 after families are relocated to their new homes at the MV3 resettlement site currently under construction. Gold production will decline from 2023 output levels as the prior year benefited from the processing of higher-grade stockpiles accumulated during the construction phase and the sequencing of higher-grade pits in earlier periods of the mine plan in the northern zone. Restrictions in accessing all areas of the southern zone from the finalization of the continuing RAP construction will delay the mining of some higher grade pits in this zone from 2024 into 2025.

AISC per ounce sold is estimated to fall within the range of $1,300 per ounce (oz) to $1,375 per oz for 2024. AISC per ounce is expected to increase from 2023 due to a combination of lower forecasted head grades and production, higher unit mining costs and strip ratio as mining deepens and more transition material is encountered, and higher royalty rates and assumed gold price, partially offset by lower processing costs as the mine switches to lower-cost grid power as the primary power source in early 2024.

Sustaining capital is expected to range between $14-million and $15-million, with $5-million to $6-million dedicated toward the tailings storage facility expansion (stage 3 and stage 4 lifts). Other areas of sustaining capital cover mine and mine infrastructure, process plant improvements, security, and camp. Planned expenditures for mining and mine infrastructure are budgeted at over $6.0-million and include the purchase of two new RC (reverse circulation) drill rigs and spares for grade control (replacing more expensive contractor drills), construction of a new explosives magazine (to reduce the frequency of explosives deliveries and associated costs), southern extension of the main haul road, and additional perimeter fencing to restrict public access to new active mining areas.

Growth capital consists of two carryover projects from 2023:

1. Power connection to Burkina Faso's national grid ($1.0-million) -- system commissioning of the newly installed transmission line and substations with SONABEL;
2. Resettlement action plan -- phases II and III ($15-million to $16-million): RAP phases II and III commenced in 2023 and will see the construction of over 2,200 private and public structures in three new resettlement communities (MV3, MV2 and BV2) to help relocate communities occupying areas in the southern half of the Bombore mining permit. For 2024, construction costs of $10.0-million to $10.5-million are forecasted to carry out the completion of MV3 and for the start and expected completion of MV2. RAP costs of $5.0-million to $5.5-million are estimated for compensation, consultants, relocation allowances and livelihood restoration programs.

The phase II hard rock expansion

The company is the early engineering stage of the phase II hard rock expansion as contemplated in the 2023 FS. Currently, it is planned that this expansion will be fully financed through operating cash flows and additional senior debt from Coris Bank. Discussions with Coris Bank are continuing.

The company intends to provide 2024 guidance for the phase II hard rock expansion later this year once a binding debt commitment and board approval have been received.

Liquidity

The company had cash of $19.5-million and a net working capital deficiency of $30.5-million on Dec. 31, 2023. Significant amounts contributing to the deficiency in working capital include $20.2-million in scheduled monthly repayments on its senior debt, $8.0-million accrual to Genser Energy that is under dispute and $10.9-million in VAT (value-added tax) receivable reclassified from current to non-current due to the timing uncertainty of VAT refunds in Burkina Faso.

The company is currently negotiating for a bridge loan with Coris Bank to strengthen the company's cash position as it works toward gaining access to Siga East by Q3 2024 to mine better-grade oxide ore. The company expects loan closing and first drawdown in April, 2024.

Bombore production results

Gold production in Q4 2023 was 33,916 ounces, an increase of 52 per cent from the 22,258 ounces produced in Q4 2022. The increase in gold production is attributable to an 80-per-cent increase in tonnes processed, partially offset by a 12-per-cent decrease in head grades and a 3-per-cent decline in process recoveries. Higher tonnes processed was due to only a partial quarter of production in Q4 2022 while the lower grades and recoveries are attributable to the processing of high-grade stockpiles accumulated during construction and the non-presence of transition ore in Q4 2022.

Gold production in Q4 2023 increased by 10 per cent from the 30,726 ounces produced in Q3 2023. The increase in gold production is primarily attributable to an 11-per-cent increase in head grades from mine sequencing and greater ore release as mining volumes improved by 21 per cent in Q4 2023, benefiting from the deployment of a second mining contractor for the full quarter and the end of the rainy season.

As mining deepens in certain pits, the quantity of transition ore has started to increase. The presence of transition ore results in slightly lower metallurgical recovery and greater consumption of grinding power.

Bombore operating costs

AISC per gold ounce sold in Q4 2023 was $1,246, an increase of 16 per cent from the $1,075 per ounce sold in Q4 2022. The increase in AISC is attributable to higher royalty costs from the new royalty rates that took effect in October, 2023, and from a higher realized selling price and more sustaining capital due to timing.

AISC per gold ounce sold in Q4 2023 decreased by 5 per cent from the $1,306 per ounce sold in Q3 2023. The decrease in AISC is explained primarily by higher gold sales and production as a result of improved head grades.

Cash cost per ore tonne processed in Q4 2023 was $22.00 per tonne, a decrease of 8 per cent from the $23.92 per tonne in Q4 2022. The higher unit cash cost in Q4 2022 was due to processing and G&A (general and administrative) costs being absorbed over fewer tonnes as the Bombore mine had not yet ramped up beyond nameplate capacity until after declaring commercial production on Dec. 1, 2022.

Cash cost per ore tonne processed in Q4 2023 increased by 2 per cent from the $21.57 per tonne in Q3 2023. The higher unit cash cost is attributable to greater reagent consumption to treat more transition ore, higher security spending as the phased deployment of additional security personnel was established for the full quarter and the recognition of a year-end inventory adjustment, partially offset by the benefit of a lower strip ratio and unit mining cost for each ore tonne processed.

Bombore growth capital projects

Grid power connection

The connection of Bombore to Burkina Faso's national energy grid involved the installation of a 19-kilometre 132-kilovolt transmission line, switching station and mine substation. The construction of these facilities were completed in December, 2023, and commissioning of this system began in January, 2024, when SONABEL personnel became available after the holiday period. The line was successfully energized in late January, 2024, to commence the delivery of low-cost grid power to site. The company estimates that power generation costs will be reduced by more than 60 per cent or over $3 per tonne in processing oxide ore when compared with the cost of power generation using on-site diesel gensets.

RAP phases II and III

RAP phases II and III involve the construction of three new resettlement communities (MV3, MV2 and BV2) in order to relocate households currently residing within the southern half of the Bombore mining permit. The company has sequenced MV3 as the first community 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 communities and requires the erection of over 1,200 private homes and public structures.

RAP construction started behind schedule as the construction of MV3 was delayed for two months in 2023 as community members conducted sacred ceremonies for the new resettlement grounds. The company has engaged several local contractors to construct homes on distinct lots within the MV3 site. In addition, the company has recruited an owner's team to assist with procurement and construction activities to maintain schedule. The company is now forecasting completion of the MV3 resettlement site including relocation of households in Q2 2024.

Non-IFRS (international financial reporting standards) measures

The company has included certain terms or performance measures commonly used in the mining industry that is not defined under IFRS, including cash costs, AISC, EBITDA, adjusted EBITDA, adjusted earnings, adjusted earnings per share and free cash flow. Non-IFRS measures do not have any standardized meaning prescribed under IFRS and therefore they may not be comparable with similar measures presented by other companies. The company uses such measures to provide additional information and they should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. For a complete description of how the company calculates such measures and reconciliation of certain measures to IFRS terms, refer to Non-IFRS measures in the management's discussion and analysis for the year ended Dec. 31, 2023, which is incorporated by reference herein.

Conference call and webcast

The consolidated financial statements and management's discussion and analysis are available on the company's website and on the company's profile on SEDAR+. Orezone will host a conference call and audio webcast to discuss 2023 year-end and fourth quarter results on March 27, 2024, at 8 a.m. PT (11 a.m. ET).

Webcast

Date:  Wednesday, March 27, 2024

Time:  8 a.m. PT (11 a.m. ET)

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:  3374829

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, and Rob Henderson, PEng, vice-president of technical services, both of whom are qualified persons as defined under National Instrument 43-101, Standards of Disclosure for Mineral Projects.

About Orezone Gold Corp.

The company is listed on the Toronto Stock Exchange under the symbol ORE and trades on the OTCQX market under the symbol ORZCF.

The company is a West African gold producer engaged in mining, developing and exploring its 90-per-cent-owned flagship Bombore gold mine in Burkina Faso. The Bombore mine achieved commercial production on its phase I oxide operations on Dec. 1, 2022, and the company is now focused on its staged phase II hard rock expansion, which is expected to materially increase annual and life-of-mine gold production from the processing of hard rock mineral reserves. The company published the results of an updated feasibility study for the phase II expansion in October, 2023, and is currently in advanced negotiations with its senior lender for additional financing to finance the construction of this brownfield expansion.

We seek Safe Harbor.