Ms. Anthea Bath reports

WESDOME ANNOUNCES FOURTH QUARTER AND FULL YEAR 2023 PRODUCTION RESULTS; PROVIDES MULTI-YEAR GUIDANCE AND MANAGEMENT UPDATE

Wesdome Gold Mines Ltd. has released its fourth-quarter (Q4) and full-year 2023 production results. The company is also providing multiyear production and operating guidance, as well as a management update. All figures are in Canadian dollars unless otherwise stated.

Anthea Bath, president and chief executive officer of Wesdome, commented:

"Reflecting on 2023, it was a year with significant change. I am proud of the site and corporate teams who came together to address the challenges we faced, and am pleased to report we ended the year on a strong note. Delivering on operating guidance was a strategic imperative, and was made possible by the dedication and resiliency of our employees at every level of the company.

"Looking ahead, we enter 2024 with two producing high-grade operations in Ontario and Quebec, supporting our expectations for record production levels, lower costs and a rebound in free cash flow generation. At Kiena, we expect to complete level development and ramp-up production from the Kiena Deep A zone early in the second quarter. At Eagle River, we will continue to seek ways to optimize the operation and reduce costs while we advance key development towards the 300 zone at depth. Successful execution this year will also set the stage for further production growth and lower unit costs, with internal plans supporting initial guidance of 175,000 to 210,000 ounces in 2025.

"We expect to focus on delivering on the fundamentals, where comprehensive asset optimization, cost control and exploration will be at the forefront. This approach is designed to make new discoveries, increase asset value and leverage our existing infrastructure to deliver high-quality reserve and resource inventory growth. In total, an underground and surface exploration drilling budget of approximately $30-million has been approved, developed through co-ordination between exploration and internal planning teams. Projects like Presqu'ile at Kiena and the recently discovered Falcon 311 zone at Eagle River are consistent with the company's track record of generating high-return, self-funded organic growth opportunities through the drill bit.

"Over all, the business is in a solid position both operationally and financially as we begin 2024, and we look forward to delivering on strong production growth and free cash flow generation," Ms. Bath concluded.

Two thousand twenty-four consolidated gold production is expected to be between 160,000 ounces and 180,000 ounces, approximately 37 per cent higher than 2023. Production is expected to strengthen in the second half of the year, with the first quarter of 2024 representing approximately 20 per cent of annual output.

Eagle River gold production of 80,000 ounces to 90,000 ounces is in line with the prior year, as contribution of tonnes and ounces is expected to shift away from 720F Falcon zone and toward 300 zone at depth. The second half of the year is expected to represent approximately 55 per cent of annual production.

Kiena gold production of 80,000 ounces to 90,000 ounces represents a significant increase over 2023, as production is expected to be primarily from the Kiena Deep A zone. As production from Martin zone is expected to decline in the first half of the year, mining from the Kiena Deep 129L horizon will begin to access high-grade stopes. Continuing delineation drilling has confirmed a substantial portion of 2024 planned mining areas, providing management confidence in the block model.

2024 consolidated cash costs are expected to be $1,075 to $1,200 per ounce, lower than the prior year as a result of higher production and sales volumes from Kiena. All-in sustaining costs are expected to be $1,750 to $1,950 per ounce, lower than the prior year also due to higher sale volumes from Kiena.

Eagle River cash costs are expected to be $1,275 to $1,425 per ounce, in line with 2023 levels despite inflationary pressures and lower tonnes processed.

Kiena cash costs are expected to be $875 to $975 per ounce, as higher production output offsets higher planned development and delineation costs.

Consolidated sustaining and growth capital investment is expected to be $120-million, net of leasing activities. Total capital spend in 2024 reflects investments in development, infrastructure, equipment upgrades and underground exploration at both sites, all of which are expected to enhance asset value and reduce operating risk. At both sites, a higher level of deferred development relative to the prior year is intended to facilitate access to a greater quantity of mineable drilled inventory in 2025, thereby providing additional operational flexibility. Further, transitory investments in infrastructure and select mine equipment will facilitate both cost-optimization initiatives and a transition to owner-operated activities. Lastly, the company has budgeted approximately $20-million in underground delineation and exploration drilling classified as sustaining capital, with the goal of increasing reserves and resources adjacent to mine infrastructure, and, to a lesser extent, testing conceptual targets.

Total capital investment at Eagle River is expected to be $55-million in 2024, including approximately $23-million in deferred development, and $10-million in delineation and exploration drilling. Capital outlays at Eagle River are expected to be 60 per cent weighted toward the second half of the year.

Total capital investment at Kiena is expected to be $65-million in 2024. Sustaining capital is expected to be $45-million, including approximately $17-million in deferred development, and $10-million in delineation and exploration drilling. Growth capital is expected to be $20-million, mostly related to an exploration ramp from surface to the Presqu'ile zone and also includes level 33 rehabilitation. Approximately 1,700 metres of the exploration ramp will be completed in 2024, with the remaining 550 metres in development to connect to the main mine infrastructure in 2025.

Presqu'ile project development update

The Presqu'ile deposit is located 1.3 kilometres west of the Kiena mine, and has been identified as five gold-rich zones crosscutting mafic rocks (zones PR-1, 2 and 2A) and ultramafic rocks (zones PR-3 and 4). Presqu'ile is just one of several underexplored near-surface deposits on the Kiena land package that could leverage spare capacity at the company's 2,040-tonne-per-day Kiena mill and extend mine life. While exploration drilling has been conducted from surface since 2020, development of the exploration ramp in 2024 and 2025 will provide a platform from which to grow the current indicated resource of 138,000 tonnes grading 8.2 grams per tonne gold totalling 37,000 ounces and inferred mineral resource of 202,000 tonnes grading 7.4 g/t and totalling 48,000 ounces of gold from the three lenses as of Dec. 31, 2022. The results of 2023 surface drilling at Presqu'ile will be incorporated into the company's annual mineral reserve and resource update disclosure in March, 2024.

The results of a recent internal Presqu'ile project study scoped 250 tonnes to 400 tonnes per day of feed starting in late 2025, supporting production of 15,000 ounces to 20,000 ounces per year at all-in sustaining costs consistent with the Kiena operation. Leveraging the planned exploration ramp, the operation is expected to self-finance approximately $30-million in Presqu'ile development and equipment capital in 2025.

                                 2025 PRODUCTION GUIDANCE

                                   Eagle River               Kiena       Consolidated guidance

Gold production (ounces)     90,000 to 105,000   85,000 to 105,000          175,000 to 210,000

Gold production in 2025 is expected to be 175,000 ounces to 210,000 ounces, representing an almost 60-per-cent increase from 2023 levels. Increased Eagle River production will be primarily driven by 300 zone material, making planned ramp development in 2024 a strategic priority for the operation. At Kiena, a full year of mining in Kiena Deep A and initial contribution of Presqu'ile ore development are expected to drive an increase in processed ore and gold production.

Fourth-quarter and full-year 2023 conference call and webcast

The company will release its fourth-quarter and full-year 2023 financial results after market close on Tuesday, March 12, 2024. At that time, the financial statements and management discussion and analysis will be available on the company's website and on SEDAR+. A conference call and webcast to discuss these results will be held on Wednesday, March 13, 2024, at 10 a.m. ET.

Participants may register for the call to obtain dial-in details. Preregistration is required for this event. It is recommended you join 10 minutes prior to the start of the event.

The webcast can also be accessed under the news and events section of the company's website.

Management update

Wesdome is announcing the promotions of Michael Michaud to the position of senior vice-president of exploration and resources, and Raj Gill to the position of senior vice-president of corporate development and investor relations.

Mr. Michaud joined Wesdome in 2017 and most recently held the role of vice-president, exploration. Mr. Michaud is a licensed professional geologist in Ontario with over 30 years of experience in Canadian and international gold exploration and mining with Iamgold, St. Andrew Goldfields and SRK Consulting. Mr. Michaud holds a bachelor of science degree with honours from the University of Waterloo and a master of science from Lakehead University.

Mr. Gill joined Wesdome in 2020 and most recently held the role of vice-president, corporate development. Mr. Gill has over 14 years of mining industry experience in progressive roles that include corporate development, technical studies and equity research with Kinross Gold and Cormark Securities. Mr. Gill is a CFA charterholder, and holds a global professional master of laws degree and bachelor of applied science in Lassonde mineral engineering degree from the University of Toronto.

The company is also announcing that just prior to quarter-end, Lindsay Dunlop advised that she will be leaving Wesdome to pursue other opportunities. Ms. Dunlop will remain in her position until March 31, 2024.

Ms. Bath commented: "Over the past several years, Michael and Raj have made notable contributions to the success of the company. We see a very exciting period ahead for the company, and look forward to the continued contribution to the success of Wesdome by Mike and Raj in their expanded roles. The promotions of Michael and Raj are part of an organizational restructure which is designed to enhance the operational, technical and capital markets capacity of the company.

"I would also like to extend my thanks, and that of the board of directors, to Lindsay who has been a critical part of the leadership team at Wesdome for over nine years, having joined the company in 2014 where she established the company's first investor relations program. We wish her every success in her future endeavours," Ms. Bath added.

About Wesdome Gold Mines Ltd.

Wesdome is a Canadian-focused gold producer with two high-grade underground assets, the Eagle River mine in Ontario and the recently commissioned Kiena mine in Quebec. The company's primary goal is to responsibly leverage this operating platform, and high-quality brownfield and greenfield exploration pipeline to build Canada's next intermediate gold producer. Wesdome trades on the Toronto Stock Exchange under the symbol WDO, with a secondary listing on the OTCQX under the symbol WDOFF.

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