Scottie Resources Announces Impressive Economics in Preliminary Economic Assessment for Scottie Gold Mine Project

On October 28, 2025, Scottie Resources announced the results of a Preliminary Economic Assessment (PEA) for its Scottie Gold Mine Project in British Columbia. The PEA, prepared by Tetra Tech, outlines a Direct-Ship Ore (DSO) development scenario.

Key economic highlights include: - Base Case (DSO at US$2,600/oz gold): - After-Tax Net Present Value (NPV) at a 5% discount rate: C$215.8 million. - After-Tax Internal Rate of Return (IRR): 60.3%. - Payback Period: 1.2 years. - Toll Milling Option (at US$2,600/oz gold): - After-Tax NPV(5%): C$380.1 million. - After-Tax IRR: 89.9%. - Payback Period: 0.9 years. - Project Metrics: - Initial Capital Cost (CAPEX): C$128.6 million. - Life of Mine (LOM): 7 years. - Average Annual Gold Production: 65,400 ounces. - LOM Recovered Gold: 457,600 ounces. - All-In Sustaining Cost (AISC): US$1,452 per ounce. - Head Grade: 6.86 g/t Gold.

The CEO highlighted that the DSO scenario eliminates the need for a mill or tailings facility, which streamlines permitting and construction, while the toll milling option presents a low-risk development path with significant upside. The next major step is a Feasibility Study targeted for H1 2027.

The release of a PEA is a significant de-risking milestone for any development-stage company, and this one is materially positive for Scottie Resources. The project economics presented are robust, especially when compared to the company's current market capitalization of approximately C$110M.

• Valuation Disconnect: The base case after-tax NPV(5%) of C$215.8M is nearly double the company's market cap. The toll milling option, which represents a more likely and lower-risk development path, shows an even more compelling NPV of C$380.1M, over 3.4 times the current market valuation. This suggests significant potential for re-rating as the market digests these figures.

• Strategic Execution: The PEA is the culmination of a series of well-executed steps over the past year. Scottie delivered its maiden resource in May 2025, secured a key strategic partner and offtake agreement with Ocean Partners in July 2025, completed a C$15.9M financing in September 2025, and has consistently produced strong drill results. This track record builds confidence in management's ability to continue advancing the project.

• De-risking of Development Path: The inclusion and strength of the toll milling option is critical. It provides a credible, lower-CAPEX alternative to building a full mill on site, which significantly reduces the primary risk for junior miners: financing the initial construction. This optionality is a major positive.

• Confirmation of DSO Model: The company has been signaling a move towards a Direct Ship Ore (DSO) model since its positive ore-sorting study in April 2025. This PEA provides the first economic validation of that strategy, confirming it can be a high-margin operation.

• Underlying Assumptions & Risks:

  • The PEA uses a US$2,600/oz gold price. While this is reflective of the current strong gold environment, it is higher than the conservative long-term prices used in many economic studies. The project's sensitivity to lower gold prices will be a key factor.
  • The entire 703,000-ounce resource used as the basis for this PEA is in the Inferred category. This is the lowest level of geological confidence, and there is no guarantee these ounces will be converted into reserves. The planned Feasibility Study will require upgrading a significant portion of the resource to the Indicated category.
  • The initial CAPEX of C$128.6M is substantial for a company of Scottie's size and will require a significant financing package, which remains a major future hurdle.

In conclusion, the news is materially positive. It provides a clear economic thesis for the Scottie Gold Mine Project and validates management's strategy. While significant risks remain (resource confidence, future financing), the PEA provides a tangible value proposition that was previously only conceptual.

Scottie Resources Corp. is a Canadian exploration and development company focused on its 100%-owned Scottie Gold Mine Project, located in the Golden Triangle of British Columbia. The project is road-accessible and includes the past-producing Scottie Gold Mine, which operated from 1981 to 1985, and the adjacent, more recently discovered Blueberry Contact Zone. After years of successful exploration, the company published a maiden Inferred Mineral Resource Estimate in May 2025 and is now advancing the project towards production using a low-capital Direct Ship Ore (DSO) model, as outlined in its October 2025 PEA.