Mr. Kevin Bullock reports

SIGNAL GOLD ANNOUNCES Q4 AND FULL YEAR 2023 FINANCIAL RESULTS AND REITERATES NEAR-TERM 2024 PRIORITIES AT GOLDBORO

Signal Gold Inc. has released its financial and operating results for the fourth quarter (Q4) and year ended Dec. 31, 2023. The consolidated financial statements and management's discussion and analysis (MD&A) documents can be found on SEDAR+ and the company's website. The company has also filed its updated annual information form for the year ended Dec. 31, 2023, dated as of Feb. 29, 2024, which is also available under the company's SEDAR+ profile. All dollar amounts are in Canadian dollars unless otherwise noted.

"Signal Gold remains committed to advancing the Goldboro project to become the next fully permitted, construction-ready gold project in Canada. We are proud of the meaningful advancements achieved at Goldboro in 2023, despite significant challenges for junior mining companies. In 2024, we are focused on value creation through exciting exploration initiatives to generate new discoveries on our expanded exploration land package, by demonstrating the potential for additional minable resources along strike to the existing Goldboro deposit and by working to obtain all remaining key project permits within the next 12 months," said Kevin Bullock, president and chief executive officer, Signal Gold.

Signal Gold 2023 highlights:

• Invested $19,785,065 in the Goldboro project in 2023, relating to detailed engineering to support the submission of key development permits, growth exploration drilling, geotechnical programs and the significant expansion of the company's exploration land position;
• Achieved key permitting milestones for the Goldboro project with the submission of the mineral lease application, industrial approval application and Fisheries Act authorization during 2023. The company was also notified that the documentation for the Schedule 2 amendment was reviewed and recommended by both Environment and Climate Change Canada, and the Department of Fisheries and Oceans for indigenous and public consultation, which is expected to commence in the first quarter of 2024;
• Consolidated the majority of the Goldboro gold district and has now increased the company's exploration licence area to approximately over 27,200 hectares (approximately 272 square kilometres), making Goldboro one of Canada's larger-scale, development-stage gold districts;
• Executed and completed the company's largest-ever exploration drill program in 2023. Gold mineralization has now been discovered over one kilometre along strike in the same style and structure as the Goldboro deposit, bringing the total strike length of known mineralization to 3.4 kilometres;
• Completed a 2,700-line-kilometre airborne magnetic and very-low-frequency (VLF) electromagnetic survey over the Goldboro gold district, which indicates numerous VLF anomalies associated with both the Goldboro and Lower Seal Harbour trends, a combined 51 kilometres of strike potential;
• Completed the sale of the Point Rousse project to Maritime Resources Corp. for $3-million in cash, 23,970,218 common shares of Maritime and Maritime's assumption of the related reclamation liabilities;
• Recorded a net comprehensive loss in 2023 of $15,880,379, or seven cents per share, compared with a loss of $11,677,264, or six cents per share, in 2022, resulting from higher finance expense, a loss on the revaluation of investments and a higher deferred income tax expense, partially offset by an increase in other income and decrease in net loss on discontinued operations in 2023;
• Ended the 2023 year with a cash balance of $9,851,672 and working capital* of $8,293,302.

* Non-IFRS (international financial reporting standards) measures are not standardized financial measures under the financial reporting framework used to prepare the financial statements and may not be comparable with similar financial measures disclosed by other issuers.

Management outlook for 2024

In 2024, the company's near-term priorities will focus on the creation of value through exploration initiatives to generate new discoveries on its expanded exploration land package in the Goldboro gold district, by demonstrating the potential for additional minable resources along strike to the existing Goldboro deposit and by working to obtain all remaining key project permits within the next 12 months. The company began 2024 with a cash balance of $9.85-million and has reduced corporate overhead costs and discretionary spending. The company is also actively considering its options with respect to the existing credit facility with Nebari while advancing the Goldboro project.

Review of the year ended Dec. 31, 2023

Corporate administration costs in 2023 were $4,662,800, compared with $4,849,114 in the prior year, while the company focused on the closing of the sale of Point Rousse, the consolidation of the Goldboro gold district, permitting for the Goldboro project, and marketing and communications. The company projects corporate administration costs to decrease further in 2024 now that it is exclusively focused on the Goldboro project. The depreciation charge of $275,977 during 2023 reflects the amortization of the company's corporate office space.

Finance expense in 2023 was $4,856,364, a significant increase compared with 2022, primarily due to interest and deferred financing fees relating to the senior secured credit facility with Nebari Resources, whereby the company drew down $16.0-million (U.S.) in February of 2023 (the Nebari credit facility) and costs associated with the subsequent amendment to the Nebari credit facility.

The company recognized a loss on the revaluation of investments of $1,090,167 relating to its investment in Novamera, compared with a gain of $326,973 in the prior year, based on valuations from recent Novamera financing initiatives. The company recognized a loss on its equity investment in Magna Terra Minerals Inc. of $56,113 in 2023, compared with $1,078,900 in the prior year when it took an impairment of $984,442 on its investment.

Other income during 2023 was $1,201,327, compared with $261,939 in the prior year, primarily driven by a foreign exchange gain of $569,780 and a recovery of $538,808 as a deferred premium on flow-through common shares.

The net loss from discontinued operations during the year was $875,858, driven primarily by the transition of Point Rousse into care and maintenance and the resulting impairment charge of $2,075,072 and care and maintenance costs of $1,009,056, which were partially offset by revenue from final metal sales. The comparative loss of $3,115,957 in 2022 was primarily driven by severance charges and significantly higher depletion and depreciation related to the wind down of operations at Point Rousse.

Net comprehensive loss for 2023 was $15,880,379, or seven cents per share, compared with $11,677,264, or six cents per share, for 2022. The increase in net loss was predominantly related to higher finance expenses related to the credit facility and the extinguished Auramet promissory note and an increased deferred tax expense relating to continuing exploration activity at the Goldboro project, partially offset by the increase in other income and the lower net loss from discontinued operations at Point Rousse.

Financial position and cash flow analysis

As of Dec. 31, 2023, the company had working capital of $8,293,302, which includes a cash balance of $9,851,672.

The cash balance throughout 2023 reflected the drawdown of the credit facility with Nebari and private placements completed in June, 2023, and December, 2023, for gross proceeds of $6,688,800 and $5,020,070, respectively, offset by continuing development and exploration costs for the Goldboro project and the repayment of the $8-million (U.S.) promissory note with Auramet (which accounts for the reduction in the current portion of loans). The reduction of inventory reflects the disposition of Point Rousse, which also accounts for the reduction in trade and other payables from Dec. 31, 2022.

Signal Gold's cash flow used in operating activities from continuing operations was $3,654,541 during the year ended Dec. 31, 2023, relating predominantly to corporate administration costs and changes to working capital. All cash flows from operating activities relating to the Point Rousse operation, which was sold in August, 2023, have been reclassified as cash flow from discontinued operations.

In 2023, the company invested $19,785,065 in its exploration and evaluation assets from continuing operations at the Goldboro project, predominantly relating to detailed engineering to support the submission of key development permits, growth exploration drilling, geotechnical programs and the significant expansion of its exploration land position in the Goldboro gold district.

Financing activities during 2023 included the net proceeds of $6,688,800 and $5,020,070 from two non-brokered private placements completed in June and December, respectively, and the drawdown of the initial tranche of the Nebari credit facility for $16-million (U.S.), a portion of which was used to extinguish an existing $8-million (U.S.) promissory note with Auramet.

Non-IFRS measures

Signal Gold has included in this news release certain non-IFRS performance measures. In the gold mining industry, these are common performance measures but may not be comparable with similar measures presented by other issuers. The company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the company's performance and ability to generate cash flow. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

About Signal Gold Inc.

Signal Gold is advancing the Goldboro gold project in Nova Scotia, a significant growth project subject to a positive feasibility study, which demonstrates an approximately 11-year open-pit life of mine with average gold production of 100,000 ounces per annum and an average diluted grade of 2.26 grams per tonne gold. (Please see "NI 43-101 Technical Report and Feasibility Study for the Goldboro Gold Project, Eastern Goldfields District, Nova Scotia," dated Jan. 11, 2022, for further details.) On Aug. 3, 2022, the Goldboro project received its environmental assessment approval from the Nova Scotia Minister of Environment and Climate Change, a significant regulatory milestone, and the company has now submitted all key permits including the industrial approval, Fisheries Act authorization and Schedule 2 amendment, and the mining and Crown land leases. The Goldboro project has significant potential for further mineral resource expansion, particularly toward the west along strike and at depth, and the company has consolidated 27,200 hectares (approximately 272 square kilometres) of prospective exploration land in the Goldboro gold district.

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