New Found Gold Provides Hammerdown Update

Executive Summary

• Hammerdown Gold Project remains on track for commercial production in H2/26, targeting an annual run rate of 20,000–25,000 oz Au at an all-in sustaining cost of ~US$2,500/oz.
• Mill operations are successfully ramping up, achieving design throughput of 700 tpd and 87% gold recovery, with peak throughput reaching 1,394 tpd.
• Grade control and resource conversion drilling is actively underway (7,000m completed of 20,000m planned), while critical infrastructure construction (civil works, crushing/sorting plants, and regrind mills) is scheduled for completion by Q3/Q4 2026.

Key Details

• Production & Financial Targets: Commercial production expected in H2/26; anticipated run rate of 20,000 to 25,000 ounces of gold per year; all-in sustaining cost (AISC) of approximately US$2,500 per ounce.
• Mill Performance & Throughput: Design criteria of 700 tpd achieved; peak throughput reached 1,394 tpd; gold recovery averaging ~87% (targeting ~92% post-circuit conversion from flotation-Merrill-Crowe to gravity-CIL).
• Mining & Grade Control: Overburden stripping for Phase I pit completed in Q1/26; main access ramp established; delivery of mineralized material meeting 700 tpd design criteria; continuous improvements in head grade delivered to the Mill.
• Drilling Programs: 20,000m of 5x5m grid-based grade control drilling commenced early Q2/26 (7,000m completed to date); 10,000m mineral resource conversion/condemnation program planned for 2026 to support Phase II pit mining (scheduled 2028) and inform a 2027 resource estimate update.
• Infrastructure & Construction: Civil works completion scheduled for end of Q3/26; permanent crushing and sorting plant construction scheduled for end of Q4/26; new regrind mills construction/engineering ongoing with commissioning targeted for Q4/26.
• Workforce & Safety: 50 new personnel hired to end of Q2/26, with 14 additional hires scheduled for June; 40 new jobs created to date; >90% of new hires sourced from Newfoundland; total workforce of 264 (76 employees, 188 contractors); zero lost time incidents and TRIF of 0 after >105,000 person-hours worked in 2026.
• Management Appointments: Mark Ross, P.Geo., appointed as General Manager, Mines, bringing 20+ years of experience in mine geology and technical services.

Notable Quotes

• "We continue to make steady progress towards our objective of achieving commercial production at Hammerdown in H2/26, where we anticipate a run rate of 20,000 to 25,000 ounces of gold produced per year at an all-in sustaining cost of approximately US$2,500 per ounce, in line with our recently completed preliminary economic assessment." – Keith Boyle, CEO
• "Since completing the Hammerdown acquisition, we have put the people and processes in place and are continuing to commission the necessary infrastructure." – Keith Boyle, CEO