Mr. Bataa Tumur-Ochir reports

STEPPE GOLD ANNOUNCES Q1 2024 FINANCIAL RESULTS

Steppe Gold Ltd. has released its financial results for the quarter ended March 31, 2024.

Highlights

First quarter highlights (all figures in thousands of U.S. dollars unless stated otherwise, except per-unit figures, which are in U.S. dollars):

• Revenue for the three months ended March 31, 2024, amounted to $7,971 on sales of 3,723 gold ounces and 19,506 silver ounces, respectively.
• Average realized prices for the three months ended March 31, 2024, were $2,043 per gold ounce and $19 per silver ounce, respectively.
• Operating profit from mine operations before depreciation and depletion for the three months ended March 31, 2024, was $4,324.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) after payments made pursuant to the metals purchase and sale agreement with Triple Flag Finance Bermuda Ltd. for the three months ended March 31, 2024, was negative $309.
• Site all-in sustaining cost (AISC) was $945 per ounce sold for the quarter ended March 31, 2024. AISC was $1,522 per ounce sold for the three months ended March 31, 2024.
• During the three months ended March 31, 2024, 133,090 tonnes of ore were mined and 145,479 tonnes of ore were stacked on the leach pad, with an average gold grade of 0.56 gram per tonne (g/t).
• As at March 31, 2024, the cash balance was $6,740 (including $87 recorded in assets classified as held for sale); total bank debt, payables and other debts (including liabilities of $81 recorded in assets classified as held for sale, excluding convertible debentures, the stream agreement, lease liabilities, tax payables and asset retirement obligations) were $70,216, with net debt of $63,476.
• On Jan. 9, 2024, the company announced that it had entered into a turnkey engineering, procurement and construction contract with Hexagon Build Engineering LLC for the phase 2 expansion.
• The phase 2 expansion is proceeding according to the projected timelines and budgets, with commissioning planned for the first quarter of 2026.
• On March 15, 2024, the company entered into an amended and restated gold prepay agreement (A&R prepay agreement) for an additional advance of $5,000, with a repayment term over five months, commencing on Aug. 15, 2024, in five equal monthly deliveries of 530 ounces of gold for a total of 2,650 ounces delivered to Triple Flag International Ltd.
• On March 26, 2024, a milestone payment of $37,000 was made to the EPC (engineering, procurement and construction) contractor in relation to the phase 2 expansion (as defined below) to finance procurement of major long-lead items, mobilization costs, early construction works and foundational work. The major long-lead items include the flotations cells, grinding mills, cluster cyclones, thickener units, filters and pumping systems.
• On April 11, 2024, the company announced that it had entered into a share exchange agreement pursuant to which it will acquire all of the issued and outstanding common shares of Boroo Gold LLC from an indirect, wholly owned subsidiary of Boroo Pte. Ltd. (Boroo Singapore) in an all-share transaction (the Boroo gold transaction).
• Additionally, on April 11, 2024, the company announced that it had entered into separate definitive share purchase agreements, pursuant to which the company will sell the Tres Cruces oxide project to Boroo Singapore for approximately $12-million (Canadian) in cash, payable over the next 18 months beginning as of the closing date (as defined in the share purchase agreements).

Outlook

The proposed transaction to acquire Boroo Gold is a transformational step for the company. With an expected closing in the third quarter of 2024, the proposed transaction is expected to accelerate the path to a multiasset Mongolia-focused mining group and, importantly, is projected to immediately provide strong cash flow to support growth plans, further improved with the recent strong gold prices. The proposed transaction is subject to customary closing conditions, including receipt of approval by the company's shareholders at the annual general and special meeting of shareholders expected to be held at the end of June, 2024, and certain regulatory approvals, including the approvals of the Toronto Stock Exchange and applicable Mongolian authorities.

The near-term focus for the company is on maximizing production and cash flows at ATO phase 1, executing on a successful completion of the phase 2 expansion, where construction activity continues, with a planned commissioning in Q1 2026, and on working toward closing the proposed transaction and planning for the successful integration of Boroo Gold into the company's operations.

With the projected additional operating cash flow accruing from the Boroo Gold transaction, the company expects to be well placed to increase exploration activities at both production centres with the aim of extending resources, reserves and production. The company will also consider opportunistic acquisitions in Mongolia.

The company's condensed interim consolidated financial results for the quarter ended March 31, 2024, have been filed on SEDAR+. The full version of the condensed interim consolidated financial statements and associated management's discussion and analysis can be viewed on the company's website or under the company's profile on SEDAR+.

About Steppe Gold Ltd.

Steppe Gold is Mongolia's premier precious metals company.

We seek Safe Harbor.