Steppe Gold Ltd.

Company Data | Introduction | Projects in Hand | Management
News Update | Chinese

Company Data

Introduction

Steppe Gold is Mongolia's premier precious metal company and 100-per-cent owner of the ATO gold mine and the Uudam Khundii project in Mongolia.

Starting Q3 of this year, Steppe Gold is expected to produce at a rate of 90,000 oz per annum at ~$1,000 AISC for yearly free cash flow of about $40-50M USD (post close of Boroo acquisition) and then growing to about $80-$90M USD of free cash flow 2026 onwards.

Steppe Gold to Acquire Boroo Gold LLC to Create Mongolia’s Leading Gold Producer

On January 22, 2024, Steppe Gold announced that it has entered into a binding term sheet pursuant to which Steppe Gold, either directly or through a wholly-owned subsidiary, will acquire all of the issued and outstanding common shares of Boroo Gold LLC (“Boroo Gold”) in an all-share transaction.

Transaction Highlights:

• Boroo Gold is a leading gold producer with an average gold production of over 60,000 oz per annum and an expected mine life of beyond 2030.
• Creation of a leading gold producer in Mongolia with a near-term production target of 200,000 oz per annum including the committed ATO Gold Mine Phase 2 Expansion.
• Steppe Gold’s production is expected to increase from 30,000 to 90,000 oz per annum upon completion of the Proposed Transaction.
• Total gold production is expected to rise to approximately 160,000 oz per annum in 2026 as Steppe Gold’s ATO Gold Mine Phase 2 Expansion comes on stream.
• The Proposed Transaction is expected to add to the over 4,000,000 oz AuEq existing resource base of Steppe Gold.
• Boroo parties have the first right to acquire the Tres Cruces gold project in Peru following the completion of the Proposed Transaction at fair market value.

OPERATIONS

ATO Gold Project, Mongolia

Project Overview

• A 100%-owned flagship multi-phase precious metals project covering 5,492 hectares in Dornod province, Mongolia.
• ATO deposit contains mineral reserves 29.1Mt at 1.13 g/t gold and 12.42 g/t silver.
• ~1.7 million ounces (Moz) of gold equivalent (AuEq) in reserves and 1.32Moz to be recovered in 14 years, including oxide
• New high grade Zinc discoveries
• Additional oxide zones identified

Phase 1 Production from Oxide

• Commenced mining in 2018, built plant in 2019 and production in 2020.
• Produced 100,166 ounces of gold and 151,000 ounces of silver to date.
• Additional exploration programmes focusing on oxides are on-going.

Phase 2 Production from Fresh Rock

• The financing for Phase 2 Expansion of US$150 million is fully secured.
• Phase 2 Expansion is estimated to be complete by the end of 2025 and commence commercial production by 2026.
• Phase 2 Expansion will increase the Company’s production three times to over 100,000 ounces per annum for 12 years and anticipated to produce over 1.2 million ounces of AuEq, generating US$2.2 billion in revenue

New High-Grade Discoveries

Recent Drilling resulted in an exciting new discovery of multiple high grade zinc sulphide intercepts beneath the existing ATO Gold Deposits.

Highlights

• 20.95m at 10.56% Zinc and 3.13% Lead (ATO-364)
• 15m at 8.0% Zinc and 5.87% Lead (ATO-379)
• 55.4m at 4.23% Zinc and 1.83% Lead (ATO-391)
• 10.62m at 9.2% Zinc and 4.3% Lead (ATO-396)
• 23.5m at 6.28% Zinc and 1.63% Lead (ATO-423)

Uudam Khundii Project, Western Mongolia

Steppe Gold owns 80% of the Uudam Khundii (UK) project, the largest exploration package in a new potentially gold district of Bayankhongor province, Mongolia.

Initial results from 18 trenches for 933 meters at the Milky Way Prospect and the Altan Soum Prospect had highlighted a mineralized system of at least 700 meters in length and up to 12 meters wide with individual meter sampling results up to 1.49 g/t gold, 450 g/t silver, 2.98% copper, 3.98% lead and 0.31% Zinc.

Exclusive Rights

Steppe Gold owns 80% of 14,400 hectares, 80/20 JV with the provincial government of Bayankhongor.

Highly Prospective Area

Adjoining licences held by Erdene Resources (ERD) have discovered high grade gold silver mineralized zones trending on to Steppe’s licences.

Further Acquisitions

The Company is currently assessing over 200,000 hectares of exploration licences in Western Mongolia for further acquisition.

Tres Cruces Project, Peru

• Steppe has acquired Anacortes Mining and its Tres Cruces project located in one of the world’s most prolific gold mining belts in Peru.
• New combined company has a potential development profile of over 200,000 ounces and a resource base of over 4.5 million AuEq ounces.
• Strategic location, with excellent infrastructure, nearby mining operations, power, road access, outstanding labour force.
• Boroo Gold has a first right to acquire upon completion of merger.

Management

Management and Directors

Bataa Tumur-Ochir, Chairman and Chief Executive Officer

Mr. Tumur-Ochir, a Mongolian citizen, has a wealth of global experience in the mining and oil and gas industry. Mr. Tumur-Ochir is responsible for new business acquisitions, development and government and community relations. He is also responsible for daily operations in Mongolia.

Byambatseren Tsogbadrakh, President

Ms. Tsogbadrakh, a Mongolian national, is a founding member of the Steppe Gold team. With years of experience in the field of finance, she has progressively held senior positions within the Company for an extended period.

Matthew Wood, Director, Advisor to the Board

Mr. Wood is a mineral resource explorer and developer with over 30 years of global industry experience in mining investments. Founder of Hunnu Coal Limited sold for ~A$500M (2011). Awarded the Order of the Polar Star, the highest state honour that can be awarded to a non-citizen of Mongolia.

Aneel Waraich, Executive Vice President & Director

Mr. Waraich is a financial services professional with 15 years of progressive experience in capital markets having worked on over $1B in deals. Founder of ATMA Capital Markets.

Patrick Michaels, Director

Mr. Michaels is the Chairman of Zuri-Invest AG and the Chairman of Asty Capital AG in Zurich, Switzerland. Mr. Michaels has been involved in numerous financings of gold mines in North America as well as various other countries.

Jeremy South, Senior Vice President and Chief Financial Officer

Mr. South has over 35 years of experience in M&A, capital markets and private equity in Europe, North America and Australia. He has been working in Mongolia since 2011.

Maria Lerner, Director

Ms. Lerner, a U.S. citizen, has operated a private tax accounting firm since 1986.

Dr. Zamba Batjargal, Director

Dr. Batjargal has more than 35 years experience working for the government entities in Mongolia. He was the Minister of the Environment of Mongolia.

Sereenen Jargalan, Director

Ms. Jargalan has been a professor at the Mongolian University of Science and Technology since September 2003 and head of the Department of Mineral Exploration since 2011.

Steve Haggarty, Director

Mr. Haggarty has over 35 years of industrial experience. He is the Managing Director of Haggarty Technical Services Corporation.

Greg Wood, Chief Operating Officer

Mr. Wood was a Systems Accountant and held management positions at Asciano and Patrick Stevedores.

Enkhtuvshin Khishigsuren, Vice President of Exploration

Mr. Khishigsuren has over 30 years of Mongolian mineral exploration experience, and advising many successful multinational companies. He is credited for having discovered several prospective gold, molybdenum and copper deposits, including the Olon Ovoot multi-million ounce gold deposit.

News Update

On November 14, 2024, Steppe Gold Ltd. reported strong financial and operational results for the third quarter of 2024.

Strong Operational Performance: Both Boroo Gold LLC (“Boroo Gold”) and Steppe Gold delivered solid production and sales results. Total revenue for the three and nine months ended September 30, 2024, amounted to $37,331 and $131,912, respectively.

Robust Financial Results: Revenue and earnings increased significantly compared to the previous quarter. Total operating income before depreciation and depletion for the three and nine months ended September 30, 2024, amounted to $21,487 and $88,148.

Company outlook: The acquisition of Boroo Gold was a transformational step for the Company. It accelerates the path to a multi-asset Mongolia-focused mining group and, importantly, is projected to immediately provide strong cash flow to support growth plans, further improved with the recent strong gold prices.

The near-term focus for the Company is on maximizing production and cash flows at both producing mines and executing on successful completion of the Phase 2 Expansion.

On November 01, 2024, Steve Haggarty has tendered his resignation as director of Steppe Gold Ltd., effective as of Oct. 31, 2024.

"On behalf of our management team and board of directors, I want to thank Steve Haggarty for his contribution to the company over the years and wish him the best on his current and future endeavours," said Bataa Tumur-Ochir, chairman and chief executive officer of Steppe Gold.

On October 08, 2024, Steppe Gold Ltd. has provided a production update on its two producing gold mines in Mongolia.

Steppe Gold closed the acquisition of Boroo Gold LLC on Aug. 1, 2024, and the integration process is progressing smoothly.

The company is pleased to report that combined production from the two operating mines totalled 17,773 ounces of gold in the third quarter of 2024.

Additionally, the company reiterates production guidance for the second half of 2024, estimated to be 33,360 ounces, in line with and toward the higher end of its previously announced guidance range of 30,000 ounces to 35,000 ounces (see news release dated Aug. 14, 2024). Current guidance for the full year of 2025 is 80,000 ounces of gold.

Integration teams are gaining momentum across all operations, identifying significant cost savings through bulk purchasing, optimizing operations through sharing of best practices, better terms on consumables and equipment purchases, and securing long-lead items for the Ato phase 2 expansion.

The combined operations teams bring a complementary skill set across key areas, consistently driving optimization and introducing new initiatives to enhance operational performance.

Both Steppe Gold and Boroo Gold have a long-standing reputation for environmental stewardship in Mongolia. The companies' integrated team is committed to further strengthening the ESG (environmental, social and governance) blueprint for Steppe Gold.

With positive operating cash flow and a substantially increased reserve base, Steppe Gold's exploration team is focused on optimizing exploration and resource expansion opportunities near its existing mines and creating promising potential for future discoveries.

The company is planning a restart of exploration work at its Uudam Khundii site and is considering some highly prospective projects in western Mongolia.

On August 14, 2024, Steppe Gold Ltd. announced that its financial results for the quarter ended June 30, 2024. The second quarter results shown below do not reflect the impact of the acquisition of Boroo Gold which was completed on August 1, 2024. The impact of the Boroo Gold acquisition and the sale of the Tres Cruces Project will be reflected in the third quarter results.

Outlook - The acquisition of Boroo Gold is a transformational step for the Company. It accelerates the path to a multi-asset Mongolia-focused mining group and, importantly, is projected to immediately provide strong cash flow to support growth plans, further improved with the recent strong gold prices.

The near-term focus for the Company is on maximizing production and cash flows at both producing mines and, executing on a successful completion of the Phase 2 Expansion, where construction activity continues.

With the projected additional operating cash flow accruing from the Boroo Gold Transaction, the Company expects to be well-placed to increase exploration activities at both production centres with the aim of extending resources, reserves and production. The Company will also consider opportunistic acquisitions in Mongolia.

On August 01, 2024, Steppe Gold Ltd. has successfully completed the previously announced transaction between Steppe Gold and Boroo Gold LLC, whereby Steppe Gold has acquired all of the issued and outstanding common shares of Boroo Gold from an indirect, wholly owned subsidiary of Boroo Pte. Ltd. (Boroo Singapore). Concurrently with the closing of the Boroo Gold transaction, Steppe Gold also sold the Tres Cruces oxide project to Boroo Singapore for approximately $12-million (Canadian) in cash.

The transaction is expected to deliver several benefits to Steppe Gold:

• Increased production: Boroo Gold brings substantial additional production, with an estimated 431,000 ounces of gold production between 2024 and 2031.
• Immediate and strong cash flows to Steppe Gold: In 2023, Boroo Gold reported production of 67,315 ounces (oz) of gold, an AISC (all-in sustaining cost) of $847 per oz at an average gold price of $1,957.
• Additional flexibility in financing: Expected positive cash flows will allow flexibility in restructuring the $150-million project financing for the ATO phase 2 expansion.
• Cost savings and optimization: Steppe Gold has identified cost reductions through bulk purchasing, better equipment purchasing options and lower administrative expenses, as well as a number of optimization opportunities at the existing mines.
• Strong social licence: There have been over $1-billion (U.S.) in benefits to Mongolia since 2003 and $17.5-million (U.S.) in donations and investments in local soums.
• Environmental leadership: Boroo Gold is a leader in environmental stewardship of mining assets in Mongolia, with a proven record of innovation.
• Exploration upside: Identified exploration and resource expansion opportunities near its existing mines offer promising opportunities for future discoveries.
• Stronger focus: By divesting the Tres Cruces project for cash, Steppe Gold can concentrate its resources on growing its portfolio of Mongolian assets.

Steppe Gold chairman and chief executive officer Bataa Tumur-Ochir commented: "We are very pleased to complete the acquisition of Boroo Gold and become Mongolia's leading primary gold producer. This transaction accelerates our path to becoming a multiasset Mongolia-focused mining group and, importantly, immediately provides strong cash flow to support our growth plans. It further provides flexibility to lower the cost of the project financing of the ATO phase 2 expansion. We emerge from this transaction as a stronger company with current positive cash flow and financial strength to deliver on our ambitious growth plans in Mongolia. The combined group will have the scale and depth to both accelerate and optimize development and exploration and exploit economies of scale in operations and procurement."

On July 04, 2024, Steppe Gold Ltd. has provided a further update on the phase 2 expansion at the 100-per-cent-owned Ato gold mine.

The company's engineering, procurement and construction partner Hexagon Build Engineering LLC, an experienced engineering and construction company headquartered in Mongolia, has now contracted with leading engineering and professional services firm WSP Canada Inc. to advise on detailed engineering and design of the Ato phase 2 expansion.

WSP is a member of the WSP Global group, a globally recognized professional services firm providing strategic advisory, engineering and design services to clients in the transportation, infrastructure, environment, building, energy, water and mining sectors. In 2021, WSP completed the acquisition of Golder Associates Ltd., a global firm specialized in Earth sciences, engineering and environmental consulting services. WSP now has over 5,200 professionals focused on the mining sector as part of its team of over 67,000.

Specifically, WSP will provide the following services in respect of the Ato phase 2 expansion:

• Overall process design;
• Plant layout optimization;
• Detailed engineering;
• Procurement support.

On July 02, 2024, Steppe Gold Ltd. has provided an update on the pending transaction to acquire all of the issued and outstanding common shares of Boroo Gold LLC.

Shareholders of the Company overwhelmingly approved the acquisition of Boroo Gold pursuant to the share exchange agreement dated April 11, 2024 (the "Share Exchange Agreement") and the sale of the Tres Cruces Oxide Project to Boroo Singapore, pursuant to the share purchase agreements dated April 11, 2024 (the "Share Purchase Agreements"), for approximately CAD$12 million in cash (collectively, the "Transaction") at the annual general and special meeting of shareholders held on June 24, 2024 (the "Meeting").

Upon completion of the Transaction, Steppe Gold will be the largest primary gold producer in Mongolia.

The all-share deal pursuant to the Share Exchange Agreement, combines Steppe Gold's ATO Gold Mine with the established Boroo Gold mine, with total production expected to reach over 150,000 ounces of gold annually by 2026.

The Transaction is subject to customary closing conditions, including receipt of certain regulatory approvals, including the approvals of the Toronto Stock Exchange and applicable Mongolian authorities. The Transaction is expected to close on or about July 16, 2024.

On June 21, 2024, Steppe Gold Ltd. announced that as a result of a review by staff of the Ontario Securities Commission, the Company has filed an amended and restated technical report for the Boroo and Ulaanbulag Gold Project entitled, "Boroo And Ulaanbulag Gold Project NI 43-101 Technical Report" (the "Amended Report") and is issuing the following news release regarding its disclosure on the Boroo and Ulaanbulag Gold Project technical report.

The Amended Report addresses comments raised by the Ontario Securities Commission related to the author of the Amended Report and the associated Certificate of Qualified Person. The Amended Report also removes references to use the technical report for internal purposes only and restates the mineral resource and mineral reserve estimates as rounded numbers (as opposed to precise calculations). The rounding of the mineral resource and mineral reserve estimates to the nearest significant number do not otherwise alter the results included in the initial technical report that was filed on the Company's profile on SEDAR+. The Amended Report does not otherwise contain any material revisions.

On May 15, 2024, Steppe Gold Ltd. has released its financial results for the quarter ended March 31, 2024.

Outlook - The Proposed Transaction to acquire Boroo Gold is a transformational step for the Company. With an expected closing in the third quarter of 2024, the Proposed Transaction is expected to accelerate the path to a multi-asset Mongolia-focused mining group and, importantly, is projected to immediately provide strong cash flow to support growth plans, further improved with the recent strong gold prices. The Proposed Transaction is subject to customary closing conditions, including receipt of approval by the Company's shareholders at the annual general and special meeting of shareholders expected to be held at the end of June 2024, and certain regulatory approvals, including the approvals of the Toronto Stock Exchange and applicable Mongolian authorities.

The near term focus for the Company is on maximising production and cash flows at ATO Phase 1, executing on a successful completion of the Phase 2 Expansion, where construction activity continues, with a planned commissioning in Q1 2026, and on working towards closing the Proposed Transaction and planning for the successful integration of Boroo Gold into the Company's operations.

On May 13, 2024, Steppe Gold Ltd. has filed with the applicable Canadian securities regulatory authorities the management information circular dated May 8, 2024, and related meeting materials of Steppe Gold for use at the annual general and special meeting of Steppe Gold shareholders to be held in connection with the proposed transaction with Boroo Gold LLC and Boroo Pte Ltd. (Boroo Singapore), or one of its affiliates, as previously announced on April 11, 2024. Steppe Gold has also mailed copies of the meeting materials to shareholders entitled to vote on the transaction at the meeting.

At the meeting, shareholders will be asked to consider and, if deemed advisable, to approve the transaction. If the transaction is completed: (i) Steppe Gold will acquire all of the issued and outstanding shares of Boroo Gold in return for the issuance of that number of common shares in the capital of Steppe Gold that would result in Boroo Singapore, directly or indirectly, holding 55.9 per cent of the issued and outstanding common shares (calculated on a fully diluted basis); and (ii) Boroo Singapore will acquire the Tres Cruces oxide project by purchasing all of the issued and outstanding shares of two of Steppe Gold's indirect, wholly owned subsidiaries for aggregate cash consideration of approximately $12-million.

The Steppe Gold board of directors has unanimously determined that the transaction is in the best interests of Steppe Gold and unanimously recommends that shareholders vote in favour of the transaction.

On April 11, 2024, Further to the press releases dated Jan. 22, 2024, and March 19, 2024, Steppe Gold Ltd. has entered into a share exchange agreement, pursuant to which Steppe Gold will acquire all of the issued and outstanding common shares of Boroo Gold LLC from an indirect, wholly owned subsidiary of Boroo Pte. Ltd. (Boroo Singapore) in an all-share transaction.

Additionally, pursuant to separate definitive share purchase agreements, each between one of Steppe Gold's wholly owned subsidiaries, on the one hand, and Boroo Singapore or one of its affiliates, on the other hand, each dated April 11, 2024, Steppe Gold will sell the Tres Cruces oxide project to Boroo Singapore for approximately $12-million in cash payable over the next 18 months beginning as of the closing date (as defined in the share purchase agreements).

Highlights:

• The Boroo Gold transaction will create Mongolia's leading gold producer:
• Acquisition of a leading gold producer, Boroo Gold, will create Mongolia's leading gold producer.
• Boroo Singapore will hold approximately 55.9 per cent of the issued and outstanding common shares of Steppe Gold on a fully diluted basis, immediately following the completion of the Boroo Gold transaction.
• Immediate and strong cash flows to Steppe Gold:
• Boroo Gold estimates over 400,000 ounces of gold production from 2024 to 2031, with projected average annual production of approximately 60,000 oz in 2024, 2025 and 2026.
• In 2023, Boroo Gold had revenue of $132-million (U.S.) on production of 67,315 oz of gold, with an all-in sustaining cost of $847 per oz, at an average achieved gold price of $1,957 per oz.
• Boroo Gold is forecasting similar production levels in 2024, albeit with higher sustaining costs.
• Long-standing and strong social licence:
• The Boroo gold mine comes with a long and proud history of positive impact in Mongolia:
• Over $1.02-billion (U.S.) in benefits to Mongolia since 2003 (taxes and fees, capital expenditures, donations, payments to local companies for goods and services, and salaries to national employees);
• Over $17.5-million (U.S.) in donations and investments in local soums between 2007 and 2023 under its framework of social responsibility.
• Steppe Gold combined gold production in 2024 is projected to be 90,000 oz, rising to an estimated annualized 150,000 oz in 2026 as the ATO gold mine phase 2 expansion is planned to come on stream in mid-2026.
• Significant value upside from:
• Potential cost synergies from combined purchasing power and lower relative administration costs;
• Increasing reserves and resources near the existing mines.
• Divestment of the Tres Cruces project to the likeliest highest-value buyer will return Steppe Gold's singular focus to Mongolia.

Bataa Tumur-Ochir, chairman and chief executive officer of Steppe Gold, commented: "We are very pleased to announce the agreement to acquire Boroo Gold. This transaction accelerates our path to a multiasset Mongolia-focused mining group and, importantly, immediately provides strong cash flow to support our growth plans, further improved with the recent strong gold prices. In connection with the completion of this transaction, we expect to finish 2024 with a run rate of around 90,000 oz in gold production, moving to over 150,000 oz in 2026 on a pro forma basis. We have also decided to divest the Tres Cruces project to further improve our liquidity and sharpen our focus on Mongolia."

On March 29, 2024, Steppe Gold Ltd. announced the executive change. Aneel Waraich has resigned as a director and executive vice-president of Steppe Gold Ltd., and Greg Wood has resigned as chief operating officer of the company, each effective March 28, 2024, and the board of directors has accepted their resignations. The company would like to thank Mr. Wood and Mr. Waraich for their contributions and wishes them every success in their future endeavours.

Bataa Tumur-Ochir, chairman and chief executive officer of the company, commented: "We are very grateful to Greg Wood and Aneel Waraich for their dedication and effort in helping Steppe Gold progress from a greenfield project to a successful [inital public offering] and now to one of Mongolia's leading precious metals companies. We wish them success in their future ventures.

"Upon the successful closing of the Boroo Gold transaction, we will have transitioned to a multiasset producer, and our focus shifts to maximizing cash flows and building for future growth. Our senior management team and new compensation plan has already reduced management costs by 45 per cent. We will continue to explore ways to improve efficiencies both at the mine sites and at head office as we continue our mission to grow our precious metal production levels, as well as our resource base."

On March 28, 2024, Steppe Gold Chief Financial Officer Jeremy South joined Steve Darling from Proactive to announce a significant financing milestone for the Phase 2 Expansion at the ATO Gold Mine, which is 100% owned by the company. This milestone aligns with further progress on the turnkey engineering, procurement, and construction contract, as well as the second project finance drawdown of $40.4 million.

South explained to Proactive that Steppe Gold has successfully reached the next financing milestone by making its second payment of US$37 million towards the Phase 2 Expansion. This payment will cover the procurement of major long lead items, mobilization costs, early construction works, and foundational work. The purchased items include flotation cells, grinding mills, cluster cyclones, thickener units, filters, and pumping systems.

He emphasized that the Phase 2 Expansion of the ATO Gold Mine is proceeding according to projected timelines and budgets, with commissioning planned for Q1 2026. Importantly, the $150 million Phase 2 Expansion is fully funded by the project finance package made available to the company and its affiliates by TDB Capital and the Trade and Development Bank of Mongolia.

This financing milestone underscores Steppe Gold's commitment to advancing the Phase 2 Expansion of the ATO Gold Mine efficiently and effectively. With a fully funded project and progress on procurement and construction, the company remains on track to achieve its expansion goals and enhance its production capacity in the coming years.

On March 26, 2024, Steppe Gold Ltd. has reached the next financing milestone for the phase 2 expansion at the 100-per-cent-owned Ato gold mine. This coincides with further progress on the turnkey engineering, procurement, and construction contract (the "EPC Contract"), and the second project finance draw down of US$40.4m. Highlights:

Second draw down of US$40.4m from the project finance package, was funded on March 20, 2024, with a total of $50m has been drawn from the first tranche of the US$150m project finance package since October 2023.

Steppe Gold has now made its second milestone payment of US$37m towards Phase 2 Expansion for procurement of major long lead items, mobilization costs, early construction works and foundational work.

The major long lead items include the flotations cells, grinding mills, cluster cyclones, thickener units, filters and pumping systems.

The ATO Phase 2 Expansion is proceeding according to projected timelines and budgets, with commissioning planned for Q1 2026.

Further to the announcement on January 9, 2024, the Company confirms that the contract amount payable to Hexagon for the full performance of the work under the EPC Contract is approximately $148.4 million ("Contract Amount").

The Phase 2 Expansion of US$150M is fully funded by the project finance package that has been made available to the Company and its affiliates by TDB Capital and the Trade and Development Bank of Mongolia.

Mr. Bataa Tumur-Ochir, Steppe Gold Chairman and CEO, commented, "We are extremely pleased to report solid progress on our ATO Phase 2 Expansion, and we have now fully drawn down the first $50m of the project financing package. With this major drawdown, together with our EPC partners at Hexagon, we can accelerate the ordering of long lead items, early construction and foundational works and start mobilization. Upon completion of the ATO Phase 2 Expansion and Boroo Gold acquisition, Steppe Gold is estimated to produce over 160,000 ounces by 2026."

On March 21, 2024, Steppe Investments Ltd., a wholly owned subsidiary of Steppe Gold Ltd., has entered into an amended and restated gold prepay agreement with Triple Flag International Ltd. for an additional advance under its previously negotiated short-term gold prepay facility.

Under the terms of the prepay agreement, Triple Flag has advanced additional funds of $5-million (U.S.) to Steppe Gold or one of its affiliates. The Triple Flag gold prepay facility will be repaid by the company over five months, commencing on Aug. 15, 2024, with five equal monthly deliveries of 530 ounces of gold for a total of 2,650 ounces delivered.

The Triple Flag gold prepay facility provides additional, non-dilutive liquidity for the company as it navigates the end of the winter production period and it continues final due diligence on the previously announced acquisition of Boroo Gold.

On March 19, 2024, Steppe Gold Ltd. has extended the binding term sheet entered with, among other parties, Boroo Gold LLC, dated Jan. 18, 2024, pursuant to which Steppe Gold, either directly or through a wholly owned subsidiary, will acquire all of the issued and outstanding common shares of Boroo Gold in an all-share transaction. The extension letter agreement extends the exclusivity period between Steppe Gold and Boroo Gold in the binding agreement from March 29, 2024, to April 12, 2024, or such earlier or later time as Steppe Gold and Boroo Gold mutually agree, in order to provide more time for the parties to complete due diligence and enter into a definitive agreement.

For more information on the transaction, please see the news release dated Jan. 22, 2024, which is available on SEDAR+.

On March 15, 2024, Steppe Gold Ltd. has made the following board changes.

Matthew Wood has resigned as a director of the Company. The President of the Company, Byambatseren Tsogbadrakh, has joined the Board, with both notifications effective immediately.

The Company would like to pay special thanks to Mr. Wood for his outstanding contributions to Steppe Gold. As one of the founders of Steppe Gold, Mr. Wood was responsible for identifying the opportunity at the then ATO Deposit to develop a two-phase project, to minimize the initial capex required and allow for the development of the larger project, the Phase 2 Expansion which is currently under construction.

Mr. Wood has a long history of success in mining development in Mongolia and was a recipient of the prestigious Polar Star, the highest state honour that can be awarded to a non-citizen of Mongolia.

January 22, 2024, Steppe Gold announced that it has entered into a binding term sheet pursuant to which Steppe Gold, either directly or through a wholly-owned subsidiary, will acquire all of the issued and outstanding common shares of Boroo Gold LLC in an all-share transaction.

https://steppegold.com/news/13412/

January 9, 2024, Steppe Gold announced that it has entered into a turnkey engineering, procurement and construction (EPC) contract, with Hexagon Build Engineering LLC for the Phase 2 Expansion at the ATO Gold Mine. Hexagon is an experienced construction group active in Mongolia and internationally.

https://steppegold.com/news/13410/

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