Announcement • Aug 10

Pure Gold Mining Inc. Updates Mineral Resource Estimate

Pure Gold Mining Inc. announced an updated Mineral Resource Estimate, prepared by SRK Consulting Inc. in accordance with the National Instrument 43-101 Standards of Disclosure for Mineral Projects for its 100% owned PureGold Mine near Red Lake, Ontario. With an effective date of December 31, 2021, this updated MRE replaces the previous MRE dated February 2019. The Updated MRE is described in Table 1 below and includes: 1.65 million ounces of gold at 7.4 grams per tonne within 6.9 million tonnes in the Indicated Mineral Resource category, and 0.37 million ounces of gold at 6.3 g/t within 1.8 million tonnes in the Inferred Mineral Resource category. The updated MRE will form the basis of a new Pre-Feasibility Study and updated Life of Mine plan, also being completed by SRK, which is expected to be released in the fourth quarter of 2022. Key Highlights of the Updated MRE: 77 new sub-domain wireframes were constructed with the specific aim of capturing new deeper understanding of the mineralized lenses. Capping levels were carefully determined for each of the sub-domains independently to maintain tight control over extreme high-grade values, which are not uncommon in this deposit, but had their range of influence substantially restricted. A multi-pass estimation strategy was employed requiring multiple assay composites from multiple drillholes to estimate block grades. A key level of confidence was introduced by restricting reported resources to only those tonnes captured within a mineable stope optimization process. This type of tool is becoming more commonly applied to underground resources to meet the Reasonable Prospects for Eventual Economic Extraction requirement in the CIM guidelines. The Updated MRE incorporates several updates to the methodology and input assumptions which collectively result in an estimate that the Company believes is more robust overall and aligns more closely with actual mining to date. The understanding of this deposit has been an iterative process over the past several years and has been informed by a vast geological dataset which includes over 1,700 new diamond drill holes and 40,000 new underground chip sample and test hole results and is supported by 18 months of continuous mining operations and underground development. The Company remains on track to release a new Pre-Feasibility Study and updated Life of Mine plan by Fourth Quarter 2022 which is also being led by SRK. The Updated PFS will incorporate several ongoing trade-off studies and will identify the best value-maximining path forward for the Company. The Company is nearing the completion of mining in the McVeigh Zone and is currently transitioning operations into the Austin and South Austin Zones. Austin and South Austin together account for 89% of the PureGold Mine's contained gold ounces in the Indicated Resource category and are characterized by simpler geometries and higher grades than McVeigh. The Company expects operational performance to improve during this transition into higher grades, greater continuity and simpler stope geometries. Updated Mineral Resource Estimation: Grade estimation for the Madsen deposit was conducted using Maptek's Vulcan software and employed a multi-pass estimation strategy and block size of 5x3x5m. Gold grade estimation was based on capped 1.5m composited assay data, with capping thresholds assessed for each of the mineralization sub-domains separately. As well, mineralization continuity and variogram analysis was assessed for each mineralization domain. All mineralization domain boundaries were treated as hard boundaries during the estimation process. Where localized grade control information were available from mined production areas, a localized search radius was used to constrain the area of influence of these samples to a 7.5x5x7.5m search radius. All other blocks in the mineral resource model were estimated from only diamond drill hole assay samples Grade estimation for the Fork, Russet and Wedge deposits was conducted using Seequent's Leapfrog Edge software and also employed a multi-pass estimation strategy and block size of 5x3x5m (sub-blocked to sub 0.5m resolution for volumetric reconciliation). Gold grade estimation was based on capped 2m composited assay data, with capping thresholds assessed for each mineralization domain. All mineralization domains were treated as hard boundaries during the estimation process. Mineral Resources were estimated solely from diamond drill hole assays. Classification of Resources: The Updated MRE comprises Indicated and Inferred Mineral Resources, with no Measured Resources. Mineral Resources were classified as Indicated Mineral Resources if they were estimated with multiple drillholes, a minimum of 8 composites, and an average drillhole spacing less than 25m. All other blocks were classified as Inferred. To address the RPEEE, Mineral Resources were constrained using a MSO tool which generated optimized stope shapes using an assumed gold price of US$1800/ounce, a mining recovery of 95.0%, metallurgical recovery of 95.0%, and successive MSO runs at stope heights of 3, 6, and 12 metres. Operating cost assumptions include mining cost of $108.60/tonne, processing cost of $73.30/t, and General & Administrative costs of $54.10/t. Mineral Resources are stated as undiluted tonnes and gold grade above a 3.38 g/t cutoff. Geologic Model: The PureGold Mine is developed on a structurally-controlled Archean orogenic gold system hosted in the same stratigraphic units and sharing the same alteration zonation and deformation history as other gold deposits in the Red Lake Mining District and also similar to many other major Archean-aged global gold districts. The deposit is hosted in several large zones developed along large multi-kilometer alteration and deformation corridors which host numerous gold occurrences and which the company believes have substantial exploration potential. Seven corridors have been identified through re-logging of core and mapping and the majority of the Updated MRE is hosted in portions of two of these. New mineralization domains modelled by SRK within these two corridors incorporate vein geometries encountered during drilling and mining of the deposit. Updated Technical Report. The effective date of the updated Mineral Resource Estimate is December 31, 2021. A NI 43-101 Technical Report prepared by SRK will be filed on SEDAR within 45 days of this news release and will be available at that time on the Company website. This is expected to be followed by Pre-Feasibility study results, including a new life of mine plan, and supporting technical report in the fourth quarter of 2022.

Total Shareholder Yield	-707.6%
Future Dividend Yield	0%
Dividend Growth	n/a
Next dividend pay date	n/a
Ex dividend date	n/a
Dividend per share	n/a
Payout ratio	n/a

Segment	Dividend Yield
Company (PGM.H)	n/a
Market Bottom 25% (CA)	1.7%
Market Top 25% (CA)	5.5%
Industry Average (Metals and Mining)	1.6%
Analyst forecast (PGM.H) (up to 3 years)	0%

Data	Last Updated (UTC time)
Company Analysis	2023/06/13 23:42
End of Day Share Price	2023/03/17 00:00
Earnings	2022/09/30
Annual Earnings	2021/12/31

Package	Data	Timeframe	Example US Source ^*
Company Financials	10 years	Income statement Cash flow statement Balance sheet	SEC Form 10-K SEC Form 10-Q
Analyst Consensus Estimates	+3 years	Forecast financials Analyst price targets	Analyst Research Reports Blue Matrix
Market Prices	30 years	Stock prices Dividends, Splits and Actions	ICE Market Data SEC Form S-1
Ownership	10 years	Top shareholders Insider trading	SEC Form 4 SEC Form 13D
Management	10 years	Leadership team Board of directors	SEC Form 10-K SEC Form DEF 14A
Key Developments	10 years	Company announcements	SEC Form 8-K

Analyst	Institution
John Sclodnick	Desjardins Securities Inc.
Geordie Mark	Haywood Securities Inc.
Michael Gray	Macquarie Research

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Pure Gold Mining Dividends and Buybacks

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Key information

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