Mr. Kevin Bullock reports

SIGNAL GOLD ANNOUNCES 2023 SECOND QUARTER RESULTS

Signal Gold Inc. has provided its financial and operating results for the three and six months ended June 30, 2023 (Q2 2023). The condensed interim consolidated financial statements and management discussion and analysis documents can be found on SEDAR+ and the company's website.

Highlights for the period ended June 30, 2023

• Signal Gold completed a non-brokered private placement for aggregate gross proceeds of $6,688,800, which will be used to advance exploration and development activities at the Goldboro project and for working capital and general corporate purposes.
• Signal Gold invested $6,469,741 in its exploration and development projects in Q2 2023, of which $6,389,269 was invested in the Goldboro project relating to growth exploration drilling, the progression of key development permits and detailed engineering, and geotechnical work.
• The company executed a share purchase agreement with Maritime Resources Corp. for the sale of the company's Point Rousse project for $3-million in cash, approximately $1-million in common shares of Maritime, and the assumption of the related reclamation liabilities of Point Rousse.
• In Q2 2023, the company mobilized a second diamond drill at Goldboro to accelerate a 10,000-metre growth exploration drill program, in addition to the initial program announced in March, 2023, for a total of 12,000 metres, the company's largest ever growth exploration program to test the expansion potential west of the Goldboro deposit toward the past-producing Dolliver Mountain mine.
• The company also extended its induced polarization geophysical survey at the Goldboro project a further 14 line kilometres west from the previous survey conducted in 2022, which demonstrated a chargeability response coincident with the Goldboro mineral resource.
• During Q2 2023, the company generated $1,801,471 of gold sales revenue resulting from the clean-out of the Pine Cove mill and surrounding area.
• Net loss for the three months ended June 30, 2023, was $4,571,098, or two cents per share, compared with a loss of $330,902, or nil per share, for the three months ended June 30, 2022, reflecting the impact of the impairment of Point Rousse carrying value upon being classified as held for sale. The net loss for the six months ended June 30, 2023, was $7,365,936 compared with $3,880,526 for the six months ended June 30, 2022.
• As of June 30, 2023, the company had a cash balance of $13,764,727 and working capital of $13,673,297.

"For the remainder of 2023, Signal Gold will be focused on demonstrating the potential scale of the Goldboro deposit and greater Goldboro district and optimizing the operating parameters of the Goldboro project, given the challenging capital markets and inflationary environment for gold development companies. We are focused on advancing all key permits for the project, including the submission of the mineral lease, industrial approval and Fisheries Act authorization applications in the third quarter of 2023. We are also executing the company's largest ever growth exploration program of 12,000 metres, targeting mineral resource growth to the west of the Goldboro deposit and towards the past-producing Dolliver Mountain gold mine. We are especially excited to review the potential of our greatly expanded exploration land position at Goldboro for further mineral resource growth, which now encompasses a 28-kilometre strike length along the Upper Seal Harbour anticline, which includes the Goldboro deposit, and a 23-kilometre strike length along the Lower Seal Harbour anticline," said Kevin Bullock, president and chief executive officer, Signal Gold.

Consolidated results summary

As a result of the SPA with Maritime for the Point Rousse project, the assets and liabilities of Point Rousse have been presented as held for sale in the consolidated statement of financial position as of June 30, 2023, and the related operating results and cash flows have been presented as discontinued operations in the consolidated statements of earnings (loss) and cash flows for the three and six months ended June 30, 2023.

Review of the three months ended June 30, 2023

The net loss from discontinued operations in Q2 2023, which reflects the Point Rousse project (which has been classified now as held for sale), was $473,429, compared with net earnings of $1,624,523 in Q2 2022. The net loss for Q2 2023 reflects the impairment charge of $2,075,072 recognized upon the transfer to assets and liabilities of the Point Rousse project to held for sale, which was partially offset by revenue of $1,801,471, which relates to the cleanup of the Pine Cove mill. The Point Rousse project was placed in care and maintenance in March of 2023, and therefore metals revenue and operating costs were significantly higher in Q2 2022 when Point Rousse was mining the Argyle deposit. Similarly, depreciation and depletion expenses in Q2 2023 were $27,637, compared with $2,115,258 in Q2 2022. Care and maintenance costs in Q2 2023, relating primarily to personnel, hydro and general maintenance, were $483,836.

Corporate administration costs were $1,469,667 in the second quarter of 2023 compared with $1,312,727 in Q2 2022, reflecting legal costs attributable to the SPA for Point Rousse, salary adjustments and certain marketing expenses related to the non-brokered private placement. Depreciation expense of $73,445 in Q2 2023 reflects the amortization of the company's corporate office space.

Share-based compensation expense for the quarter was $297,619 compared with $206,455 in Q2 2022, the result of an increase in grants of stock options and share units which occurred in Q1 2023.

Finance expense for the quarter was $1,095,663 compared with $546,015 for the three months ended June 30, 2022. Finance expenses in the most recent quarter relate to interest and the recognition of deferred financing fees associated with the Nebari credit facility, which was drawn in the first quarter of 2023. Other income for the second quarter of 2023 was $209,608 compared with $148,701 in Q2 2022, which includes interest income of $77,761 and a recovery of $96,425 as a deferred premium on flow-through shares, a portion of which represented the remaining qualifying exploration expenditures that were spent from the June, 2022, flow-through financing.

Net comprehensive loss for the three months ended June 30, 2023, was $4,571,098, or two cents per share, compared with a net comprehensive loss of $330,902, or nil per share, for the corresponding period of 2022. The increase in net loss was predominantly related to the impairment of Point Rousse upon being classified as held for sale, in addition to higher finance expenses related to the Nebari credit facility and the extinguishment of the Auramet promissory note.

About Signal Gold Inc.

Signal Gold is a Toronto Stock Exchange- and OTCQX-listed gold development and exploration company, advancing the wholly owned Goldboro project in the Canadian mining jurisdiction of Nova Scotia, a significant growth project subject to a positive feasibility study and which has potential for further mineral resource expansion, particularly toward the west along strike and at depth (please see the "National Instrument 43-101 Technical Report and Feasibility Study for the Goldboro Gold Project, Eastern Goldfields District, Nova Scotia" on Jan. 11, 2022, for further details). The company also owns mining and milling assets in the prolific Baie Verte mining district of Newfoundland which include the fully permitted Pine Cove mill, tailings facility and deepwater port, as well as approximately 15,000 hectares of highly prospective mineral property, including those adjacent to the past-producing, high-grade Nugget Pond mine at its Tilt Cove gold project.

We seek Safe Harbor.