Ms. Anthea Bath reports

WESDOME ANNOUNCES FOURTH QUARTER AND FULL YEAR 2023 FINANCIAL RESULTS; PROVIDES ANNUAL MINERAL RESERVE AND RESOURCE UPDATE

Wesdome Gold Mines Ltd. has released its results for the fourth quarter and year ended Dec. 31, 2023. The company is also providing its updated mineral reserve and resource statements. Preliminary operating results for the fourth quarter and year ended 2023, as well as multiyear production and operating guidance, were disclosed on Jan. 15, 2024. Management will host a conference call tomorrow, Wednesday, March 13, at 10 a.m. Eastern Time, to discuss the results.

Fourth quarter and full-year 2023 highlights:

• Gold production in the fourth quarter was 36,216 ounces at cash costs of $1,451 per ounce ($1,065 (U.S.)) and all-in sustaining costs of $2,082 per ounce ($1,529 (U.S.)).
• For full-year 2023, gold production was 123,336 ounces at cash costs of $1,579 per ounce ($1,170 (U.S.)) and all-in sustaining costs of $2,231 per ounce ($1,653 (U.S.)). Production and costs both compare favourably relative to 2023 guidance ranges.
• Cash margins for the fourth quarter and full-year 2023 were $47.6-million and $132.9-million, respectively, representing an 80-per-cent and a 39-per-cent increase relative to corresponding periods in 2022 mainly due to a higher Canadian dollar realized gold price and an increase in ounces sold.
• Net income and adjusted net income for the fourth quarter of 2023 were $2.4-million (two cents per share). The quarter included a non-cash deferred tax impact of $8.6-million but was still $5.9-million higher than the corresponding period in 2022.
• Operating cash flow in the fourth quarter and full-year 2023 of $37.2-million (25 cents per share) and $101.4-million (69 cents per share) was 262 per cent and 55 per cent higher than the corresponding periods in 2022 mainly due to the higher cash margin.
• Free cash flow in the fourth quarter and full-year 2023 was $39.4-million and $83.8-million higher than the corresponding periods in 2022 mainly due to the higher cash margin and overall decrease in capital expenditures.
• Available liquidity was $152.6-million, including $41.4-million in cash and $111.0-million of undrawn availability under the company's revolving credit facility. Cash net of the revolver increased by $24.2-million in 2023.

Anthea Bath, president and chief executive officer, commented: "We closed 2023 with a stronger balance sheet and performed well relative to our 2023 operating targets. With the release of our multiyear guidance earlier this year, we are now focused on delivering significantly higher production and free cash flow in 2024 and 2025. At Kiena, development continues to advance, successfully addressing the challenges of mining in schist material. Consequently, we look forward to accessing and processing higher-grade material in the second quarter. At Eagle River, we are evaluating potential initiatives to optimize the operation and reduce costs while advancing development towards the 300 zone at depth.

"Accompanying our results, we announced our mineral reserves and resources for year ended 2023, including a 12-per-cent increase in total gold mineral reserves as compared to year-end 2022. The additions were driven primarily by the initial mineral reserve at Presqu'ile zone along with additions to Kiena Deep and Zone 6 Central at Eagle River. We have an ambitious exploration program in 2024, which we expect to yield high-quality resource additions and new discoveries, evidenced most recently by the rapid growth of the Falcon 311 zone at Eagle River.

"As we approach a free cash flow inflection point this year, we remain dedicated to meeting our performance targets and pursuing strategic activities that drive high-return growth in the jurisdictions in which we operate."

Financial and operating highlights

A summary of the company's consolidated financial and operating results for the 12 months ended Dec. 31, 2023, are presented herein.

Updated mineral reserve and resources for year-end 2023:

• At Dec. 31, 2023, Wesdome's combined proven and probable mineral reserves totalled 1.1 million ounces (2.8 million tonnes grading 12.7 grams per tonne gold); combined measured and indicated mineral resources (exclusive of reserves) were 327,000 ounces (1.3 million tonnes grading 7.8 g/t gold); and combined inferred mineral resources were 808,000 ounces (3.8 million tonnes grading 6.7 g/t gold).
• Cut-off grade calculations for resources reflect an increase in the gold price assumption to $1,700 (U.S.) per ounce (from $1,500 (U.S.) previously) and a slightly weaker Canadian dollar assumption of 1.32 (from 1.30 previously). The gold price assumption used for reserve calculations remains unchanged at $1,400 (U.S.) per ounce. Changes to the mineral resources and reserves methodology included applying more conservative estimation assumptions and optimized interpolation techniques at both Eagle and Kiena.
• Reserves and resource estimates at both sites reflect reduced exploration spend in 2023. Drilling was therefore focused on improving geometric understanding of orebodies and conversion of resources to measured and indicated categories at both operations.
• The drilling program in 2024 has been doubled compared with 2023 to approximately $30-million, or 185,000 metres, across underground delineation and exploration, as well as surface drilling. The program will aim to increase reserves and resources adjacent to mine infrastructure and to test conceptual targets.

The company's gold mineral reserves, effective Dec. 31, 2023, are set out herein and are compared with the gold mineral reserves for the prior corresponding period.

The company's gold mineral resources, effective Dec. 31, 2023, are set out herein, and are compared with the gold mineral resources for the prior corresponding period.

Fourth quarter and full year 2023 conference call and webcast

The financial statements and management's 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 commended you join 10 minutes prior to the start of the event.
• The webcast will also be available under the news and events section of the company's website.

Technical disclosure

The technical and geoscientific content of this release including the mineral resource and mineral reserve estimates has been compiled, reviewed and approved by Michael Michaud, PGeo, vice-president, exploration, of the company, and Frederic Langevin, eng, chief operating officer of the company, each a qualified person as defined in National Instrument 43-101 (Standards of Disclosure for Mineral Projects).

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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