TRX Gold Reports Robust Recovery Rates from Recent Study and Significant Increase in Plant Expansion Scope

• TRX Gold announced metallurgical recoveries of 89‑92 % (overall) with flotation concentrate recoveries of 88‑91.7 % and fine‑grind leach recoveries >93 %.
• The processing plant design is being upgraded from a 3,000 tpd circuit to a 3,500+ tpd SAG/Ball mill configuration, adding roughly $10‑15 M of capital over the original PEA estimate.
• Tendering for the new SAG mill will begin in Q3 2026 with commissioning targeted for Q2 2027.
• Plant upgrades (pre‑leach thickener, agitators, reactors, oxygen plant, ADR plant, gold room, etc.) are slated for completion by Q4 2026.
• Mine planning is being revised to accommodate higher throughput, including a third cut‑back at Main Pit and an earlier underground start at Stamford Bridge. A new PEA update is expected Q4 2026.
• CEO Stephen Mullowney emphasizes that the improved recoveries, larger plant capacity and higher gold prices will drive higher production, revenue, EBITDA and overall project value, funded by internal cash flow with a “strong balance sheet.”

• Positive deviation from prior guidance: The PEA assumed 88 % recovery; actual 89‑92 % exceeds that, directly improving projected gold output and cash flow.
• Scale‑up of capacity: Moving to a 3,500+ tpd circuit lifts the plant’s design throughput by ~17 %, which should raise annual production well above the 62 k oz/year forecast in the May 2025 PEA.
• Capital cost increase is modest: The $10‑15 M uplift (≈30‑35 % of the original $45‑50 M expansion budget) is fully funded by internal cash flow, preserving a low‑debt profile highlighted throughout 2025‑early 2026 releases.
• Strategic alignment: The announcement dovetails with earlier “Processing Plant Expansion” updates (Nov 2025, Apr 2025 PEA) and the record Q1–Q2 2026 production results, confirming that the company is on schedule to deliver higher output.
• Market perception: Because the recovery improvement and capacity increase were not previously disclosed, investors receive genuinely new, material‑positive information that could re‑price the stock upward.

Conclusion: The news constitutes a Material – Positive event; it materially improves the economics of Buckreef Gold without introducing new financing risk.

TRX Gold Corp. is a junior gold miner focused on the Buckreef Gold Project in Tanzania. The flagship asset comprises an open‑pit operation transitioning to underground mining, with a current processing plant (≈2,000 tpd) undergoing upgrades toward a 3,500+ tpd SAG/Ball mill circuit. The project’s PEA forecasts ~62 k oz/year average production over a 17.6‑year mine life, with upside potential >80 k oz/year during early underground phases.