CONTANGO SILVER & GOLD Contango Converts Remaining Hedge Contracts into Debt
NEWS RELEASE
CONTANGO SILVER & GOLD
Contango Converts Remaining Hedge Contracts into Debt
FAIRBANKS, AK - (July 6, 2026) - Contango Silver & Gold Inc. ("Contango" or the "Company") (NYSE
American/ TSX: CTGO) is pleased to announce that it has amended its credit facility (the “Amended Credit
Facility”) to convert the remaining 15,000 ounces of hedged gold into debt with its existing lenders . As
part of the Amended Credit Facility, the interest rate was reduced to approximately 7.40%.
Rick Van Nieuwenhuyse, the Company’s CEO, commented: “We viewed the recent pullback in gold prices
as an opportunistic window to completely liquidate our hedge book. By converting the remaining 15,000
ounces of hedge contracts into debt, we have successfully removed the ceiling on our future cash flows
from gold production. We are particularly bullish on gold’s macro trajectory from these levels, and our
priority is to deliver full, unhedged exposure to rising gold prices directly to Contango shareholders.
Operationally, Manh Choh is in a transitional phase as mining transitions from the North Pit to the South
Pit and is poised to finish 2026 with higher -grade campaigns, perfectly setting the stage for a record -
breaking, fully unhedged production year in 2027. Crucially, we retain the flexibility to repay this debt at
any time, and we remain aggressively focused on paying down the credit facility ahead of schedule.”
Highlights of the Amended Credit Facility
• Interest rate reduced to approximately 7.40% from the previous rate of approximately 8.9%
• No restructuring fee
• Converted 15,000 hedged gold ounces with an average strike price of $1,935 with maturity dates
ranging between March and June 2027 into $33.0 million (“M”) of debt
• As part of a price protection strategy to offset the hedge settlements, the Company paid $715,000
to purchase 15,000 put contracts with a strike price of $3,100 per ounce with maturities in March
and June 2027, which has been added to the debt
• The total principal of the Amended Credit Facility increased from $12.6 M to $ 46.3 M, with
principal repayments scheduled as follows:
o September 30, 2026 - $1 M
o December 31, 2026 - $1 M
o March 31, 2027 - $15.5 M
o June 30, 2027 - $28.8 M
Conference Call and Webcast
Contango will host a conference call and webcast to discuss the hedge conversion with CEO Rick Van
Nieuwenhuyse and CFO Mike Clark on Monday, July 6, at 1:00pm EST / 10:00am PST. Participants may
join the webcast using the following call-in details: https://6ix.com/event/contango-silver-and-gold-
update-on-hedges.
ABOUT CONTANGO
Contango is an NYSE American and TSX -listed mining company that engages in the exploration for and
development of silver, gold, and associated minerals with a growth strategy focused on district-scale silver
and gold exploration in British Columbia’s Golden Triangle funded by high-grade gold production in Alaska.
The Company's flagship Canadian asset comprises approximately 247,000 acres (100,000 hectares) of
prospective silver-gold mineral tenures in and around the Kitsault Valley, the southern cornerstone of the
Golden Triangle. In Alaska, Contango holds a 30% interest in the Peak Gold JV, which leases approximately
675,000 acres of land for production and exploration on the Manh Choh project, with the remaining 70%
owned by KG Mining (Alaska), Inc., an in direct subsidiary of Kinross Gold Corporation, operator of the
Peak Gold JV. The Company and its subsidiaries also hold: (i) a lease on the Johnson Tract project, which
consists of mineral rights to approximately 21,000 acres located near tidewater, 125 miles southwest of
Anchorage, Alaska, from the underlying owner, CIRI; (ii) 100% ownership of the Lucky Shot project, which
consists of mineral rights to approximately 8,600 acres of State of Alaska and patented mining claims
located in the Willow Mining Dis trict about 75 miles north of Anchorage, Alaska; (iii) mineral rights to
approximately 145,000 acres of State of Alaska mining claims; and (iv) mineral rights to approximately
11,700 acres of State of Alaska mining claims and upland mining leases, all of w hich give Contango the
exclusive right to explore and develop minerals on these lands.
Additional information can be found on our web page at www.contangoore.com.
FORWARD-LOOKING STATEMENTS
This press release contains forward -looking information and forward -looking statements within the
meaning of applicable securities (“Forward- looking Statements”). These include statements regarding
Contango’s plans and expectations for its properties and o perations, the content within future annual
filings, operations in respect of Contango mineral properties and any benefits of investment in Contango.
These Forward -looking Statements also include those relating to the Amended Credit Facility and its
terms, the Company's plans to repay that facility over time and potentially ahead of schedule, the
conversion of the Company's remaining hedges into debt and the resulting unhedged exposure to gold
prices, management's outlook on gold prices, the Company's price protection strategy, and expectations
for mining and production at Manh Choh through 2026 and into 2027. The Forward-looking Statements
regarding Contango are intended to be covered by the safe harbor for “forward -looking statements”
provided by the Priva te Securities Litigation Reform Act of 1995, based on Contango’s current
expectations and includes statements regarding future results of operations, quality and nature of the
asset base, the assumptions upon which estimates are based and other expectation s, beliefs, plans,
objectives, assumptions, strategies or statements about future events or performance (often, but not
always, using words such as “expects”, “projects”, “anticipates”, “plans”, “estimates”, “intends”,
“believes”, “ensures”, “forecasts”, “predicts”, “proposes”, “contemplates”, “aims”, “seeks”, “continues”,
“potential”, “positioned”, “strategy”, “outlook”, “future”, “going forward”, “designed to”, and similar
expressions or other words of similar meaning, and the negatives thereof, or stating that certain actions,
events or results “may”, “might”, “will”, “should”, “would”, or “could” be taken, or that they are
“possible”, “probable”, or “likely” to occur or be achieved). However, the absence of these word s does
not mean that the statements are not forward-looking. Forward-looking Statements are based on current
expectations, estimates and projections that involve a number of risks and uncertainties, which could
cause actual results to differ materially fro m those reflected in the statements. These risks include, but
are not limited to: the risks of the exploration and the mining industry (for example, operational risks in
exploring for and developing mineral reserves); risks and uncertainties involving geology; the speculative
nature of the mining industry; the uncertainty of estimates and projections relating to future production,
costs and expenses; the volatility of natural resources prices, including prices of gold and associated
minerals; the existence and extent of commercially exploitable minerals in properties acquired by
Contango or the Peak Gold JV; ability to realize the anticipated benefits of the Peak Gold JV; potential
delays or changes in plans with respect to exploration or development projects or capital expenditures;
the interpretation of exploration results and the estimation of mineral resources; the loss of key
employees or consultants; health, safety and environmental risks; risks related to weather and other
natural disasters; uncertainties as to the availability and cost of financing; risks relating to the Company's
indebtedness under the Amended Credit Facility, including its ability to service or repay that debt on or
ahead of schedule and the effect of changes in interest rates; the Company's unhedged exposure to gold
prices and the effectiveness of its price protection strategy; and the Company's ability to achieve
anticipated production and grades at Manh Choh, which depends in part on the operator of the Peak Gold
JV; Contango’s inability to retain or maintain its relative ownership interest in the Peak Gold JV; inability
to realize expected value from acquisitions; inability of our management team to execute its plans to meet
its goals; the extent of disruptions caused by an outbreak of disease, such as the COVID-19 pandemic; and
the possibility that government policies may change, political developments may occur or governmental
approvals may be delayed or withheld, including as a result of presidential and congressional elections in
the U.S. or the inability to obtain mining permits. Additional information on these and other factors which
could affect Contango’s operations or financial results are included in Contango’s other reports on file
with the U.S. Securities and Exchange Com mission. Investors are cautioned that any Forward -looking
Statements are not guarantees of future performance and actual results or developments may differ
materially from the projections in the Forward -looking Statements. Forward -looking Statements are
based on the estimates and opinions of management at the time the statements are made. Contango
does not assume any obligation to update Forward -looking Statements should circumstances or
management’s estimates or opinions change.
CONTACTS:
Contango Silver & Gold
Rick Van Nieuwenhuyse
(907) 388-7770
www.contangoore.com