Steppe Gold Announces 2024 Annual Financial Results

Steppe Gold’s Chairman and CEO, Bataa Tumur-Ochir, stated, “2024 has been a year of transformational growth for Steppe Gold as we integrated Boroo Gold LLC’s (“Boroo Gold”) mines and operations.

I am pleased to report that our team has achieved a record production milestone of 88,347 ounces of gold and 93,837 ounces of silver on a full-year basis through our combined operations.

With a solid foundation and extensive mining expertise, the Boroo Gold team is now leading the core mining operations at both the Boroo Gold and ATO mines. We have also significantly reduced overhead costs and streamlined our management team.

Looking ahead to 2025, with signs of a continuing strong gold price environment, this places us in a strong position to restructure and reduce our debt facilities, increase our mining capacity and production via developing high-return assets.”

Fourth quarter and year ended December 31, 2024 Highlights

• Total Group revenue for the three months and year ended December 31, 2024, amounted to $46,220 and $178,133, on combined sales of 17,567 oz and 78,450 oz of gold, respectively.

• On a combined mine full year 2024 basis, Boroo Gold and Steppe Gold mines produced 88,347 ounces of gold and 93,837 ounces of silver.

• Revenue for Boroo Gold for the three months and year ended December 31, 2024 amounted to $35,999 and $157,978 on sales of 13,728 and 70,842 gold ounces, respectively.

• Revenue for Steppe Gold for the three months ended December 31, 2024 and the period from August 1, 2024, to December 31, 2024, amounted to $10,221 on sales of 3,839 gold ounces and $20,155 on sales of 7,608 gold ounces.

• All in Sustaining Costs for the Group were $1,347 and $1,078 for the three months and year ended December 31, 2024.

• Average realized prices for Boroo Gold for the three months and year ended December 31, 2024, were $2,618 and $2,225 per gold ounce, respectively.

• Average realized prices for Steppe Gold for the three months ended December 31, 2024 and the period from August 1, 2024, to December 31, 2024, were $2,676 and $2,589 per gold ounce.

• The Group reported positive working capital of $151,022 as at December 31, 2024. Payables were elevated at year end but working capital included in this are bond investments of $97,050 which accrue interest at between 8% to 13.4% and mature on December 31, 2025. This will be applied to debt reduction and working capital needs.

• As at December 31, 2024, Group net debt was $150,086. Following the Boroo Gold transaction, the Group has been actively working with its principal lenders at TDB to restructure debt facilities and repay higher rate loans.

• After cash taxes, capital expenditures, dividends and before cash received from the BORO bond, the Group recorded $10,674 in cash outflow in 2024.

• The Phase 2 Expansion of the ATO Mine is proceeding according to the updated projected timelines and budgets, and the Group is reviewing increases in annual capacity and metallurgical improvements with its EPC and engineering partners. The Group is working on a revised feasibility study in 2025 which will reflect the impact of higher current gold prices.

• With higher gold prices, and expected strong cash flow in 2025 the Group is also actively reviewing its financing options for the Phase 2 Expansion, including the impact of the stream arrangements, debt availability and other factors.

• The Company sold the Tres Cruces Project to Boroo Singapore for CAD$11.7 million in cash, payable in four instalments in 18 months from August 1, 2024. On September 17, 2024, the Company received the first instalment of C$2.7 million in cash and a second instalment of C$4.3 million has been received subsequent to the reporting period and applied it to partial repayment of Triple Flag Gold Prepay loan on February 17, 2025.

Outlook

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

The near-term focus for the Steppe Gold group is on maximizing production and cash flows at both producing mines and, progressing the Phase 2 Expansion and related financing options. The Group also continues to consider growth in reserves through exploration at current and nearby operations as well as potential acquisitions.

On March 31, 2025, the Company was served with a Statement of Claim filed in the Ontario Superior Court of Justice in connection with a contractual dispute by Triple Flag Precious Metals Corp. (“Triple Flag”) naming the Company as the defendant. In the Statement of Claim, Triple Flag seeks delivery of 1,650 troy ounces of refined gold or contractual damages of approximately $5 million. The outcome of the proceeding is not determinable at this time.

The Company’s consolidated financial results for the year ended December 31, 2024 have been filed on SEDAR+. The full version of the annual consolidated financial statements and associated management’s discussion & analysis can be viewed on the Company’s website at www.steppegold.com or under the Company’s profile on SEDAR + at www.sedarplus.ca.