Mr. Stephen Mullowney reports

READY, SET, GO - NEWLY EXPANDED MILL AT BUCKREEF GOLD IS OPERATIONAL

TRX Gold Corp. has completed the expanded processing plant to 2,000 tonnes per day and has also released its results for the third quarter of 2024 ended May 31, 2024. Financial results are available on the company's website.

Project highlights include:

• Immediate and positive impact on milling capacity: The newly expanded 2,000-tonne-per-day processing facility is now operational and is currently undergoing wet commissioning. During this commissioning phase, the expanded processing plant has been consistently achieving, on average, 1,750 tonnes per day of mill throughput, reaching a maximum of 1,873 tonnes per day, a 116-per-cent increase over Q3 2024, and is ramping up toward final commissioning. Average weekly gold production has also increased to 616 ounces over this same period, an increase in weekly production of 60 per cent, on average, from Q3 2024 production levels. This weekly production run rate is expected to continue over the remainder of July and August, 2024, during final plant commissioning and ramp-up. The company is currently finalizing some minor welding work on the carbon-in-leach (CIL) tanks and some ancillary electrical work on the agitators and intertank screens. Once the additional CIL tanks are completed and fully commissioned, it is expected that the expanded processing plant will begin to achieve 2,000 tonnes per day of processing capacity.
• Built-in capacity for future growth: As part of an initial phase of the plant expansion project, during Q3 2024, the company completed construction of the new crushing circuit. The expanded crushing system is now operational and has been fully commissioned. The crushing circuit has been consistently achieving an average of 2,000 tonnes per day of crushed material, reaching a maximum of 2,470 tonnes per day. The new crushing plant, combined with the old crushing circuit, is rated to process 3,600 tonnes per day to 4,800 tonnes per day of ore at full capacity, with new equipment comprising run-of-mine bin, apron feeder, conveyors, vibrating grizzly, primary jaw crusher, and secondary and tertiary cone crushers. The crushing plant configuration is designed to produce a finely crushed ore product suitable for the existing and future ball mills to improve grind size for a more efficient, cost-effective processing of sulphide ore. The new circuit is expected to help drive increased throughput and recovery percentages and demonstrates the company's overall design philosophy of simplicity, redundancy and durability, making it a key component to support future growth.
• Benefiting from economies of scale: This marks Buckreef's third successful expansion project aimed at increasing annual gold production in a derisked, self-financed and phased approach. Moreover, through this latest expansion, the project is expected to benefit from greater economies of scale, resulting from higher processing plant throughput and higher overhead cost absorption.

Operational and financial highlights:

• Strong operating cash flow year to date: During Q3 2024, the company poured 4,628 ounces of gold and sold 4,515 ounces of gold at an average realized price of $2,270 per ounce, resulting in positive operating cash flow of $3.1-million. For the nine-month period, the company poured and sold 13,622 and 13,361 ounces of gold, respectively, at an average realized price of $2,079 per ounce, resulting in positive operating cash flow of $9.3-million.
• Strong gross profit margins: During the quarter, the company recognized revenue of $10.1-million, cost of sales of $5.8-million, gross profit of $4.4-million (43 per cent) and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $3.9-million. Year to date, the company recognized revenue of $27.5-million, cost of sales of $16.2-million, gross profit of $11.3-million (41 per cent) and adjusted EBITDA of $9.1-million.
• Prudent capital management: The company maintained its liquidity by actively managing expenditures during the quarter while advancing the processing plant expansion to 2,000 tonnes per day. The company used operating cash flow during Q3 2024 to continue to finance the plant expansion while maintaining a cash balance of approximately $7.7-million and a positive adjusted working capital position of $1.7-million.
• Delivering on target: The total capital cost of the full mill expansion was budgeted to be approximately $6-million, which was completed on time and on budget.

TRX Gold's chief executive officer, Stephen Mullowney, commented: "We are excited with the direction the Buckreef gold project is headed as we are already seeing improved performance from the new crushing circuit and expanded milling facility during its wet commissioning. We carefully managed our capital during the year to ensure the processing plant expansion was funded from organically generated cash flow. We look forward to completing our 2025 budget, which is anticipated to focus on continued operational improvements and an increased focus on exploration at the Buckreef gold project."

Qualified person

William van Breugel, PEng, BASc (honours), technical adviser to TRX Gold, is the company's qualified person under National Instrument 43-101, Standards of Disclosure for Mineral Projects, and has reviewed and assumes responsibility for the scientific and technical content in this press release.

Q3 2024 results conference call and webcast details

When:  Tuesday, July 23, 2023, at 11 a.m. EST

Conference call numbers

Canada/United States toll-free:  1-844-763-8274

International toll:  1-647-484-8814

A replay will be made available for 30 days following the call on the company's website.

About TRX Gold Corp.

TRX Gold is rapidly advancing the Buckreef gold project. Anchored by a mineral resource published in May, 2020, the project currently hosts an National Instrument 43-101 measured and indicated mineral resource of 35.88 million tonnes at 1.77 grams per tonne gold containing 2,036,280 ounces of gold and an inferred mineral resource of 17.8 million tonnes at 1.11 grams per tonne gold for 635,540 ounces of gold. The leadership team is focused on creating both near-term and long-term shareholder value by increasing gold production to generate positive cash flow. The positive cash flow will be utilized for exploratory drilling with the goal of increasing the current gold resource base and advancing the sulphide ore project, which represents 90 per cent of current gold resources. TRX Gold's actions are led by the highest ESG (environmental, social and governance) standards, evidenced by the relationships and programs that the company has developed during its nearly two decades of presence in Geita region, Tanzania.

We seek Safe Harbor.