Mr. Gareth Thomas reports

WESTHAVEN ANNOUNCES ROBUST PRELIMINARY ECONOMIC ASSESSMENT OF THE SOUTH ZONE, SHOVELNOSE GOLD PROJECT, BRITISH COLUMBIA

Westhaven Gold Corp. has completed a preliminary economic assessment (PEA) at its 100-per-cent-owned, 17,623-hectare Shovelnose gold property. Shovelnose is located within the prospective Spences Bridge gold belt (SBGB), which borders the Coquihalla Highway 30 kilometres south of Merritt, B.C.

Gareth Thomas, president and chief executive officer, comments: "Westhaven's flagship Shovelnose gold property is located in close proximity to a highway and near the city of Merritt, B.C., in a Tier 1 mining jurisdiction. This PEA focuses on the South zone, discovered in late 2018 and with an initial mineral resource estimate first reported in 2022. In addition to high grades, the South zone benefits from wide, steeply dipping mineralized vein domains which contribute to a robust, low-cost (AISC $752 (U.S.)/ounce gold equivalent), high-margin mining opportunity. Results from this PEA certainly underpin a significant property value with serious economic benefits and provide an excellent cornerstone from which to build upon. Westhaven's continued focus is on exploration and expanding the gold-silver mineral inventory outside the South zone. Multiple notable discoveries have been made on this large (176 square kilometres) underexplored property since the initial South zone discovery, all of which are outside the area assessed in the current PEA. With a fully funded drill program under way, management expects to be able to significantly increase the property's mineral resource base as we drill off the newer discoveries and test additional outside targets."

Preliminary economic assessment highlights:

*Base case parameters of $1,800 (U.S.) per ounce gold, $22 (U.S.) per ounce silver and Canadian-dollar/U.S.-dollar exchange rate of 76 cents.

*All costs are in Canadian dollars unless otherwise specified.

• Robust financial metrics:
  • Pretax internal rate of return (IRR) of 41.4 per cent; after-tax IRR of 32.3 per cent;
  • Low all-in sustaining cost (AISC) of $989/ounce ($752 (U.S.)/oz) gold equivalent;
  • Low cash cost of $804 oz/AuEq ($611 (U.S.)/oz AuEq);
  • Pretax net present value (NPV; 6 per cent) of $359-million (M) and after-tax NPV of $222-million;
  • Payback period from start of production year 1 of 2.4 years pretax and 2.6 years after-tax;
  • After-tax (NPV; 6 per cent) increases to $268.4-million and after-tax IRR increases to 37.2 per cent using spot prices of $1,950 (U.S.) gold and $24 (U.S.) silver;
• Low capital-intensive development and operating costs:
  • Total preproduction capital of $149.6-million;
  • Total life-of-mine (LOM) capital costs of $247-million;
  • Average operating cost of $132/tonne processed;
  • 94 per cent of total mining is cost-effective longitudinal and traverse longhole stoping, with only 6 per cent of total mining requiring cut and fill stoping;
• 9.5-year mine life and ability to expand processing to accommodate satellite discoveries:
  • Production rate of 1,000 tonnes per day (tpd);
  • Total payable metals of 534,000 oz gold and 2,715,000 oz silver;
  • Average annual production of 56,100 oz Au peaking in year 7 at 68,000 oz Au;
  • Total mineralized rock production of 1,452,000 tonnes at 5.37 grams per tonne Au and 28.62 g/t Ag;
  • Metallurgical recoveries of 91.5 per cent Au and 92.9 per cent Ag;
• Community/stakeholder benefits:
  • Total projected income taxes paid of $136-million;
  • Total projected British Columbia mineral taxes paid of $79-million;
  • More than 130 well-paying local full-time jobs created during life of mine;
  • Additional employment during construction phase;
  • Indirect spinoff benefits during both construction and mine operations.

Mineral resources, PEA preparation and results

The previous public mineral resource estimate (MRE) for the South zone was carried out by P&E Mining Consultants Inc. with an effective date of Jan. 1, 2022. That MRE was built with a pit-constrained cut-off of 0.35 g/t AuEq. The January, 2022, MRE is superseded by the new July, 2023, underground MRE reported herein. All drilling and assay data were provided by Westhaven, in the form of Excel data files. The Geovia Gems V6.8.4 database compiled by P&E for the July, 2023, MRE consisted of 162 surface drill holes, totalling 61,726 metres, of which 17 drill holes (SNR21-41 to 57), totalling 5,235 metres, were added to the initial January, 2022, MRE. A total of 83 drill holes (32,089 metres) were intersected by the mineral resource wireframes used in the PEA.

P&E validated the mineral resource database in Gems by checking for inconsistencies in analytical units, duplicate entries, interval, length or distance values less than or equal to zero, blank or zero-value assay results, out-of-sequence intervals, intervals or distances greater than the reported drill hole length, inappropriate collar locations, survey and missing interval and co-ordinate fields. Some minor errors were identified and corrected in the database. P&E is of the opinion that the supplied database is suitable for mineral resource estimation.

A block model was constructed using Geovia Gems V6.8.4 modelling software and consists of separate model attributes for estimated Au, Ag and AuEq grade, rock type (mineralization domains), volume percentage, bulk density and classification. The mineral resource was classified as indicated and inferred based on the geological interpretation, variogram performance and drill hole spacing. P&E also considers mineralization at the South zone to be potentially amenable to underground mining methods. The revised MRE used for the PEA is reported with an effective date of July 18, 2023, and is tabulated herein.

A financial model was developed to estimate the LOM plan and considered only underground mining of mineral resources at the South zone. Other known gold-silver mineralization at the Shovelnose gold property, currently being evaluated by Westhaven, is not included.

The LOM plan covers an 11.5-year period (two years preproduction and 9.5 years of production). Currency is in Q2 2023 Canadian dollars unless otherwise stated. Inflation has not been considered in the financial analysis.

The PEA outlines a production mine life of 9.5 years with average annual production of 56,100 ounces gold and 284,200 ounces silver at average cash costs and all-in sustaining costs (AISC) per ounce gold equivalent of $752 (U.S.). The PEA considers the payable recovery of 534,200 oz gold and 2,715,200 oz silver from an underground operation, at average mine production grades of 5.37 g/t and 28.62 g/t, respectively.

Revenue

The commercially saleable product generated by the project is a gold/silver dore. Westhaven would be paid once the dore has been delivered to a smelter and refinery, off site.

The net smelter return (NSR) payables were based on the following parameters:

Dore payable (includes refining and smelting)

• Au: 98 per cent;
• Ag: 92 per cent;
• The Canadian-dollar/U.S.-dollar exchange rate used in the PEA is 76 cents.

Subtotal revenue

• Au: $961.5-million (U.S.);
• Ag: $59.7-million (U.S.);
• Net revenue: $1,343.7-million.

The revenue generation by the Shovelnose project, on a yearly basis, is presented herein.

P&E has estimated the net revenues assuming Westhaven has taken advantage of available royalty buyouts. There is a 2-per-cent NSR royalty on the Shovelnose gold property held by Franco-Nevada Corp. which Westhaven has the option to buy down to a 1.5-per-cent NSR for $3-million (U.S.). There is a 2-per-cent NSR held by Osisko Gold Royalties Ltd. which Westhaven has the option to buy down to a 1-per-cent NSR for $500,000.

Costs

Operating costs:

• Total average cost: $132.15/t processed;
• Cash cost/oz AuEq: $804.19/oz AuEq ($611.18 (U.S.)/oz);
• All-in sustaining cost: $989.12/oz AuEq ($751.73 (U.S.)/oz).

Capital costs:

• LOM: $247-million;
• Sustaining capital expenditure: $104.9-million.

LOM capital costs include the cost of all mine development; process plant, mine equipment; surface infrastructure; underground infrastructure; a closure cost; a salvage credit; and a 20-per-cent contingency.

Stoping methods utilized are transverse longhole, longitudinal longhole, and cut and fill. The average vein widths to be mined are 16.2 metres, 6.6 metres and three metres, respectively.

Mining unit costs by method are $132.77/t for transverse and longitudinal long hole, and $143.87/t for cut and fill stoping.

The proportion of mining method during the life of mine is 62 per cent longitudinal longhole, 32 per cent for transverse longhole mining, and 6 per cent cut and fill.

Cash flow sensitivity analysis

The following after-tax cash flow analysis was completed:

• NPV (at 5-per-cent, 6-per-cent, 7-per-cent, 8-per-cent, 9-per-cent and 10-per-cent discount rates);
• Internal rate of return;
• Payback period.

The summary of the results of the cash flow sensitivity analysis is presented herein.

The project was evaluated on an after-tax cash flow basis which generates a net undiscounted cash flow estimated at $385.9-million. This results in an after-tax IRR of 32.3 per cent and an after-tax NPV of $221.6-million when using a 6-per-cent discount rate. In the base case scenario, the project has a payback period of 4.6 years from the start of the project. The average life-of-mine cash cost is $804.19/oz AuEq ($611.18 (U.S.)/oz AuEq), at an average operating cost of $132.15/t processed. The average life-of-mine all-in sustaining cost (AISC) is estimated at $989.12/oz AuEq ($751.73 (U.S.)/oz AuEq).

Sensitivity analysis

Project risks can be identified in both economic and non-economic terms. Key economic risks were examined by running cash flow sensitivities to: gold metal price; silver metal price; gold process plant head grade; gold metallurgical recovery; operating costs; and capital costs.

Each of the sensitivity items was varied up and down by 10 per cent and 20 per cent to assess the effect they would have on the NPV at a 6-per-cent discount rate. The value of each parameter, at 80 per cent, 90 per cent, 100 per cent base case, 110 per cent and 120 per cent, is presented in herein

The resultant after-tax NPV at 6-per-cent values of each of the sensitivity parameters at 80 per cent to 120 per cent are presented herein.

Cautionary statement

The PEA is considered by P&E Mining Consultants to meet the requirements as defined in Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects. This PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be classified as mineral reserves, and there is no certainty that the PEA will be realized. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no guarantee that Westhaven Gold will be successful in obtaining any or all of the requisite consents, permits or approvals, regulatory or otherwise, for the project to be placed into production. The PEA was prepared in accordance with the requirements of NI 43-101 and has an effective date of July 18, 2023. A technical report relating to the PEA, prepared in accordance with NI 43-101, will be filed on SEDAR and posted on the company's website within 45 days of this news release.

Qualified persons statement

The preliminary economic assessment for the Shovelnose gold property -- South zone was prepared by James L. Pearson, PEng, D. Grant Feasby, PEng, Yungang Wu, PGeo, Antoine Yassa, PGeo, and Eugene Puritch, PEng, FEC, CET, of P&E Mining Consultants, Brampton, Ont., all independent qualified persons as defined by National Instrument 43-101 -- Standards of Disclosure for Mineral Projects. The PEA results are based on important assumptions made by the qualified persons who prepared the PEA. These assumptions, and the justifications for them, will be described in the PEA technical report that the company will file on SEDAR and post on the company's website within 45 days of this news release. Mr. Puritch has reviewed and approved the technical contents of this news release.

Qualified person statement

Peter Fischl, PGeo, who is a qualified person within the context of National Instrument 43-101, has read and takes responsibility for this release.

About Westhaven Gold Corp.

Westhaven is a gold-focused exploration company advancing the high-grade discovery on the Shovelnose project in Canada's newest gold district, the Spences Bridge gold belt. Westhaven controls 37,000 hectares (370 square kilometres) with four 100-per-cent-owned gold properties spread along this underexplored belt. The Shovelnose property is situated off a major highway, near power, rail, large producing mines and within commuting distance from the city of Merritt, which translates into low-cost exploration. Westhaven trades on the TSX Venture Exchange under the ticker symbol WHN.

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