Drilling Programs Define New Zones as Gold Still Targets $5,000

The most recent news release from November 25, 2025, provides a multi-faceted update on Lake Victoria Gold Ltd.'s ("LVG") operational progress across its Tanzanian gold projects and recent financing. Key highlights include:

• Tembo Inlier Project (Barrick Mining JV): Barrick Mining, LVG's joint venture partner, provided a Q3 2025 exploration update. Exploration spending totaled US$6.66 million out of the committed US$9 million program, representing 74% of the commitment. Work completed includes 94 line-km gradient array IP surveying and 19 aircore holes (419m) at the Enze target, part of a planned 945-hole, 30,750m program. Diamond and RC drilling are planned along the Itetemia trend. LVG retains exposure to up to US$45 million in contingent milestone payments from Barrick based on future discoveries.
• Imwelo Gold Project: The company is advancing its fully permitted Imwelo Gold Project. A second drill rig has been mobilized for a 4,000m program at Area C. Regulatory milestones secured include an agreement in principle with the Government of Tanzania on the 16% free carried interest framework and environmental approval of the Updated Environmental and Social Management Plan.
• Financing: The company states it closed a private placement for gross proceeds of US$8 million, intended for work programs to activate the prepaid forward purchase facility with Monetary Metals and for non-dilutive construction financing.

The news is a compilation of previously reported positive developments and an update on the Barrick exploration activities. While the headline uses strong language ("Drilling Programs Define New Zones as Gold Still Targets $5,000"), the content largely confirms ongoing progress rather than announcing new, unexpected breakthroughs by LVG.

• Barrick Exploration: The Q3 2025 update from Barrick is positive, indicating continued systematic exploration and substantial progress towards fulfilling their $9 million exploration commitment. Meeting 74% of the commitment is on track. This work increases the geological understanding of the Tembo Inlier and maintains the potential for LVG to receive significant contingent payments, which remains a key long-term value driver without requiring LVG's capital. This is in line with expectations set by previous updates (e.g., Q1/Q2 2025 updates).
• Imwelo Gold Project Advancement: The mobilization of a second drill rig for the Imwelo Area C program is a confirmation of the accelerated drilling plan outlined in earlier news (October 2025). The successful securing of the 16% Government of Tanzania free carried interest framework (first announced September 18, 2025) and the environmental approval of the ESMP (first announced August 21, 2025) are crucial de-risking milestones for the project's development. Their reiteration here signals successful completion of these regulatory steps, which is very positive for moving towards production.
• Financing Discrepancy: The financing announcement states "gross proceeds: US$8,000,000". This figure requires critical scrutiny. Previous news releases (September 17, 2025 and October 20, 2025) detailed two non-brokered private placements that together raised CAD$8,000,000.13. Assuming a CAD/USD exchange rate of approximately 0.73, this CAD$8 million translates to roughly US$5.84 million. If the November 25 news refers to these same private placements, then reporting US$8 million in gross proceeds is a significant overstatement of the USD equivalent or implies a new, previously unannounced US$8 million raise. Given the wording "work programs to activate pre-paid forward purchase facility," it's possible the US$8 million refers to the value of the Monetary Metals prepay facility itself, or an aggregate, rather than a direct cash equity raise. However, it explicitly says "PrivatePlacement" "Closed" "gross proceeds." This ambiguity is a material concern regarding financial transparency and reporting accuracy. If it is indeed a new US$8 million equity raise, it would be highly material, but it's not presented as such and contradicts previous reports. I will proceed with the assumption that this US$8M is either a misstatement of the CAD$8M raises, or an aggregation with another source of capital (like the Monetary Metals facility value) that is not clearly explained as a "private placement" of "gross proceeds." The use of proceeds ties back to the Monetary Metals facility, which was a "prepaid forward purchase facility" for gold, not a traditional equity private placement. This ambiguity dampens the positive impact of the financing announcement.

Overall, the news confirms steady operational progress and successful de-risking of the Imwelo project. The Barrick update shows continued, systematic exploration. The financing clarity issue, however, prevents a higher "Material - Positive" rating.

Lake Victoria Gold Ltd. is a Canadian exploration and development company focused on gold projects in Tanzania's Lake Victoria Goldfield. The company has two primary assets:

• Imwelo Gold Project: This is LVG's flagship development project, located in northwestern Tanzania, 12 km from AngloGold Ashanti's Geita Gold Mine. It is fully permitted with a 10-year mining license (renewed November 2024) and updated environmental approval. The company targets low-capex open-pit mining at Area C (average grade of 3.7 g/t Au) and aims for first gold production within 12 months of construction commencement. A 4,000-metre drill program is underway to finalize pit design, convert resources, and explore deeper extensions. LVG has reached an agreement in principle with the Government of Tanzania for a 16% free carried interest and has a strategic partnership with Taifa Mining & Civils Ltd.
• Tembo Inlier Project: Located adjacent to Barrick Gold's Bulyanhulu mine, this project is primarily an exploration asset. LVG previously sold six non-core prospecting licenses to Barrick's joint venture (Bulyanhulu Gold Mine Ltd.) in December 2021 for US$6 million upfront and up to US$45 million in contingent payments based on future discoveries. Barrick is committed to spending US$9 million on exploration on these licenses, with US$6.66 million spent as of Q3 2025. LVG retains a 100% interest in its adjacent Tembo Project, which has district-scale exploration potential. The company is also evaluating small-scale mining opportunities on its own Tembo MLs through a potential JV with Nyati Resources, leveraging local processing infrastructure.