Mr. Keith Boyle reports

NEW FOUND GOLD CLOSES FIRST TRANCHE OF C$56 MILLION BOUGHT DEAL FINANCING FOR GROSS PROCEEDS OF C$42 MILLION

New Found Gold Corp. has closed the first tranche of its previously announced bought deal public offering of (i) 21.4 million charity flow-through common shares of the company that will qualify as flow-through shares (within the meaning of Subsection 66(15) of the Income Tax Act (Canada)) at a price of $2.29 per charity flow-through common share, and (ii) 4.37 million common shares at a price of $1.63 per common share, for aggregate gross proceeds of $56,129,100.

The first tranche of the offering consists of 15,265,000 charity flow-through common shares and 4.37 million common shares for aggregate gross proceeds of $42,079,950.

The first tranche of the offering was completed pursuant to an underwriting agreement dated May 29, 2025, entered into among the company and a syndicate of underwriters led by BMO Capital Markets and SCP Resource Finance LP and including Paradigm Capital Inc., Canaccord Genuity Corp., Haywood Securities Inc., Stifel Nicolaus Canada Inc., Roth Canada Inc., AGP Canada Investments ULC and ATB Securities Inc.

Pursuant to the underwriting agreement, the second tranche of the offering will consist of the further issuance by the company of 6,135,000 charity flow-through common shares at the charity flow-through common share offering price per charity flow-through common share for further gross proceeds of $14,049,150. The second tranche of the offering is expected to close on or about June 12, 2025. Completion of the offering remains subject to the company receiving all necessary regulatory approvals, including final approval of the TSX Venture Exchange to list the charity flow-through common shares and the common shares.

Eric Sprott intends to participate in the second tranche of the offering to maintain his approximate 19-per-cent shareholdings.

The company granted the underwriters an overallotment option entitling the underwriters to purchase up to an additional number of charity flow-through common shares that in aggregate would be equal to 15 per cent of the total number of charity flow-through common shares to be issued under the offering for the purpose of covering the underwriters' overallocation position, if any, exercisable, in whole or in part, at any time, and from time to time for up to 30 days after the closing of the first tranche of the offering.

In connection with the closing of the first tranche of the offering, the company paid to the underwriters, a cash fee in the aggregate amount of $2,075,959, representing (i) 5.25 per cent of the gross proceeds of the first tranche of the offering, other than the gross proceeds raised from certain sales pursuant to a president's list; and (ii) 1.0 per cent of the gross proceeds raised from president's list sales. BMO Capital Markets, SCP Resource Finance LP, Paradigm Capital Inc., Canaccord Genuity Corp., Haywood Securities Inc., Stifel Nicolaus Canada Inc., Roth Canada Inc., A.G.P. Canada Investments ULC and ATB Securities Inc. received $799,244, $695,446, $207,596, $114,178, $62,279, $62,279, $51,899, $41,519 and $41,519, respectively. Pursuant to the underwriting agreement, the underwriters will receive a further cash fee equal to 5.25 per cent of the gross proceeds of the second tranche of the offering other than the gross proceeds raised from president's list sales and 1.0 per cent of the gross proceeds raised from president's list sales.

The gross proceeds from the offering of the charity flow-through common shares will be used by the company to incur eligible Canadian exploration expenses that qualify as flow-through mining expenditures (as such terms are defined in the Income Tax Act (Canada)) related to the company's 100-per-cent-owned Queensway gold project, on or before Dec. 31, 2026. All qualifying expenditures will be renounced in favour of the subscribers for the charity flow-through common shares effective on or before Dec. 31, 2025.

The net proceeds from the offering of the common shares will be used by the company to advance the project and for general corporate and working capital purposes.

The charity flow-through common shares and the common shares were offered by way of a prospectus supplement in each of the provinces and territories of Canada (other than the province of Quebec and Nunavut) and were also offered by way of a United States prospectus supplement forming part of the company's registration statement on Form F-10 in the United States. Copies of the prospectus supplement and documents incorporated by reference therein are available electronically on the Canadian Securities Administrators' SEDAR+ and the Securities Exchange Commission's EDGAR under New Found Gold's issuer profile.

Certain directors and officers of the company participated in the first tranche of the offering and, accordingly, their participation in the offering constitutes a related party transaction within the meaning of Multilateral Instrument 61-101 -- Protection of Minority Shareholder Approval (MI 61-101). The company has relied on the exemptions from valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of such related party participation.

About New Found Gold Corp.

New Found Gold holds a 100-per-cent interest in Queensway, located in Newfoundland and Labrador, a Tier 1 jurisdiction with excellent infrastructure and a skilled local work force.

The company has completed an initial mineral resource estimate at Queensway (see New Found Gold news release dated March 24, 2025). A fully financed preliminary economic assessment is under way, with completion scheduled for late Q2 2025.

Recent drilling continues to yield new discoveries along strike and down dip of known gold zones, pointing to the district-scale potential of the 175,600-hectare project that covers a 110-kilometre strike extent along two prospective fault zones.

New Found Gold has a new management team in place, a solid shareholder base, which includes a 19-per-cent holding by Mr. Sprott, and is focused on growth and value creation at Queensway.

We seek Safe Harbor.