Mr. Scott Caldwell reports

SOLGOLD PLC ANNOUNCES COMPLETION OF NEW CASCABEL PRE-FEASIBILITY STUDY

Solgold PLC has successfully completed a new prefeasibility study (PFS), prepared in accordance with National Instrument 43-101 (NI 43-101) that supports a phased block cave mine at its flagship Cascabel project in Ecuador. Cascabel is 100 per cent owned through Solgold's Ecuadorian subsidiary Exploraciones Novomining SA (ENSA). All dollar amounts are quoted in United States dollars.

Key highlights of the prefeasibility study:

• Excellent economic viability of a Cascabel phased-approach block cave mine;
• Over $1-billion initial capital expenditure savings compared with previous estimates, reflecting efficient project development strategies and lower technical risk attributed to the phased strategy;
• Potential for accelerated cash flow and project development;
• The current Cascabel mine plan reflects the profitable exploitation of only 18 per cent of the Alpala measured and indicated mineral resource through a 28-year mine life -- the size of the entire resource indicates the mine's potential to be a multigenerational mining asset;
• Strong commitment to responsible and sustainable mining practices, including the use of renewable energy (hydropower) and an environmentally conscious project footprint reduction.

Scott Caldwell, Solgold's chief executive officer and president of Solgold Ecuador, commented:

"Cascabel is not just a mining project -- it's a promise of responsible mining, lasting value for all stakeholders and a sustainable legacy for the planet. With reduced capital needs and lower risk compared with previous approaches, together with our ongoing commitment to sustainability and responsible mining, Cascabel is more than copper and gold -- it's a story of innovation, collaboration, and a vision for a greener and more prosperous tomorrow for the people of Ecuador. This study was conducted with the best outcomes for all our stakeholders in mind."

Summary of Cascabel PFS results

Reduced initial capital expenditure

Compared with previously considered development scenarios, the phased approach block cave mine has substantially reduced the initial capital expenditure required to develop Cascabel. This approach optimizes project development by gradually scaling up operations, effectively managing costs and minimizing financial risk.

After a ramp-up period of approximately two years, the initial block cave will achieve a production rate of 12 million tonnes per annum (Mtpa). The initial cave will extract high-grade ore, averaging approximately 1.45 per cent copper equivalent (CuEq) for the first 10 years of production. The extraction of this high-grade material will not sterilize the surrounding lower-grade ore. The mining operations will be expanded by an additional 12 Mtpa, increasing to a total annual production rate of 24 Mtpa in year 6. The phase 2 mill expansion is expected to be entirely financed from project cash flow. This phased approach also allows for scaling other capital items over time, such as the tailings storage facility, the camp and mining equipment.

Lower technical risk

The phased development strategy also contributes to a reduction in technical risk. Incrementally advancing the project provides an opportunity to implement and fine-tune mining and processing methodologies, ensuring a more efficient and stable production process. This approach enhances the project's overall resilience and minimizes potential challenges associated with large-scale development. A practical height-of-draw for this deposit was determined to be 400 metres, which is considered to be more technically feasible than other alternatives.

Accelerated cash flow

The study's results indicate a strong potential for accelerated cash flow generation. With a reduced initial capital burden and lower technical risk, Cascabel is expected to deliver a quicker path to positive cash flow.

Commitment to responsible mining

Solgold remains committed to responsible and sustainable mining practices. The company's dedication to environmental, social and governance (ESG) standards remains unwavering. Cascabel's development will continue to prioritize minimizing environmental impact, promoting community engagement and ensuring ethical practices throughout the project's life cycle.

Integration of renewable energy

Solgold is proud to prioritize sustainability and environmental responsibility in the development of the Cascabel project. The company is actively integrating renewable energy supplied by governmental and private sources into the project's energy supply strategy as part of a net-zero commitment.

Project description

Cascabel is located in northern Ecuador, approximately a three-hour drive north of Quito, the capital city of Ecuador. Access is via sealed highways through the closest major centre of Ibarra, located approximately 80 kilometres south of the property. Infrastructure in the region and throughout Ecuador is generally of a high standard, with excellent road access, power and water sources readily available in the local area.

Cascabel project -- Alpala underground: mineral resource estimate (MRE) No. 4

The mineral reserves have been estimated for a block caving method, and take into account the effect of mixing indicated material with dilution from low-grade or barren material originating from within the caved zone and the overlying cave backs. The mineral resources reflected in MRE No. 4 are inclusive of the mineral reserve estimate, which represents only 18 per cent of the measured and indicated resource estimate. The mining practices contemplated in this study do not compromise the potential extraction of the remaining resources not included in the current mine plan.

Mining

Underground mining will utilize the block cave mining method, a low-cost, bulk-mining method. After a ramp-up period of approximately two years, the initial cave will achieve a production rate of 12 Mtpa. The initial cave will extract high-grade ore, averaging 1.5 per cent CuEq for the first 10 years of operation. Extraction of this high-grade material will not sterilize surrounding lower-grade ore. The mining operations will be expanded by an additional 12 Mtpa, increasing to a total annual production rate of 24 Mtpa in year 6 of mine production.

Ore from the mine will be transported to the underground primary crushers by load haul dump loaders (LHDs) and crushed to minus 160 millimetres (mm). The crushed ore will be conveyed directly to the coarse ore stockpile adjacent to the mill at the surface.

Process plant

Ore will be reclaimed from the coarse ore stockpile and conveyed to a conventional semi-autogenous grinding ball mill crusher (SABC) circuit. Slurry from the ball mill will be pumped to the flotation circuit, where concentrate will be floated, filtered and stored for transport by truck to the port site concentrate storage barn. Tailings will flow by gravity to the tailings storage facility.

Production plan

Additional mining optimization studies indicated that the optimum production profile for the Cascabel project is, to begin with a processing rate of 12 Mtpa, extracting high-grade ore for six years, and then expanding the process plant by an additional 12 Mtpa, increasing to a total processing rate of 24 Mtpa. The initial 12 Mtpa throughput rate is expected to be achieved six years after the start of project development. Over the current life of mine, the plant is expected to produce 2.9 million tonnes of copper, 6.9 million ounces of gold and 18.4 million ounces of silver.

Tandayama-America (TAM) deposit

The TAM deposit, located approximately six kilometres northeast of the Apala deposit, further emphasizes the significant potential of the Cascabel project. The TAM deposit outcrops at the surface, resulting in a low strip ratio, offering an excellent opportunity to provide additional mill feed for up to seven years and the potential for an earlier start of metal production from an open-cut mining method.

The current evaluation of the TAM deposit is not at a PFS level and is, therefore, not included in the Cascabel project economics presented herein, or in the PFS mine plan. The company will begin the additional metallurgical testing, waste rock characteristic testing, geotechnical, hydrogeology and detailed mine planning required to finalize planning efforts.

Environmental, social and governance

Solgold's unwavering commitment to the highest social and environmental sustainability of its projects positions the company as a leading advocate of responsible mining practices, particularly in Ecuador. As Solgold advances the Cascabel project, it remains dedicated to the highest transparency standards and ESG principles.

In line with the company's corporate values, Solgold has established a comprehensive framework encapsulating the following key ESG criteria:

• Environment: Solgold is deeply committed to managing its carbon footprint and maximizing the use of renewable resources. The company aims to minimize the ecological impact of its operations, and contribute to a cleaner environment and biodiversity conservation.
• Social: Solgold champions diversity and equitable wages within its work force. The company believes that fostering an inclusive workplace and ensuring fair compensation are fundamental to the well-being of its employees and the communities in which it operates.
• Governance: Solgold is dedicated to adhering to the highest standards of governance practices. The company stands for transparency, integrity and accountability in all its operations, aligning itself with global best practices.

Over the past decade, Solgold has forged robust community partnerships in Ecuador, underpinned by extensive engagement efforts. These relationships underscore the company's commitment to responsible resource development and mutual prosperity.

In accordance with Ecuadorian law, an environmental and sustainability impact assessment (EISA) is required before obtaining authorization for construction and operations. Solgold is committed to ensuring the EISA is aligned with international standards. These standards encompass the Equator Principles, the International Finance Corp. (IFC) performance standards, and environmental, health and safety guidelines, as well as the sustainable development goals (SDG), as well as other international standards that apply to the mining sector.

Furthermore, Solgold will undertake a comprehensive evaluation to manage and reduce the project's overall carbon footprint. The company's initiatives will encompass maximizing the utilization of renewable energy sources, exploring electrification of mobile and fixed equipment options, optimizing operational efficiency through process integration, and other innovative strategies to minimize the company's environmental footprint.

Solgold's commitment to ESG principles remains unwavering, and it is dedicated to ensuring that the Cascabel project sets the benchmark for responsible and sustainable mining practices in Ecuador and beyond.

Sensitivity analysis

A sensitivity analysis was performed on the study's after-tax NPV (net present value) at an 8-per-cent discount to examine the sensitivity to commodity prices, capital costs and operating costs.

Outstanding opportunities and upside options

Opportunities for further optimization of the Cascabel project that management will continue to investigate include:

• Process plant design optimization following additional metallurgical test work, focusing on improved gold recovery and other byproduct recovery;
• Viability of the TAM open-cut mine to provide early mill feed;
• Continue to examine the impacts of utilizing tunnel boring technology to accelerate underground development;
• Further define the economic benefits of renewable energy, such as hydro and solar, on the project;
• Continue to examine the economic impact of the sublevel cave mining method on the upper portions of the Alpala deposit;
• Process plant design optimization following additional metallurgical test work.

Next steps

Solgold intends to release a National Instrument 43-101 technical report on Cascabel within 45 days of this release.

Solgold expects to commence the technical work to further advance and derisk the Cascabel project.

Qualified persons

The qualified persons for the study entitled "Cascabel project, Ecuador, NI 43-101 technical report on prefeasibility study," which has an effective date of Dec. 31, 2023, are detailed in the associated table.

This announcement was approved for release by Mr. Caldwell, chief executive officer.

About Solgold PLC

Solgold is a leading resources company focused on the discovery, definition and development of world-class copper and gold deposits, and it continues to strive to deliver objectives efficiently and in the interests of shareholders.

The company operates with transparency and in accordance with international best practices. Solgold is committed to delivering value to its shareholders while simultaneously providing economic and social benefits to impacted communities, fostering a healthy and safe workplace, and minimizing environmental impact.

We seek Safe Harbor.