DAU.V · 2025-08-07 12:00:00

Desert Gold Delivers Positive PEA for SMSZ Project with USD $24M After-Tax NPV (10%) and 34% IRR at USD $2,500/oz Gold for Barani and Gourbassi Deposits in Mali

Economic Studies

Desert Gold Delivers Positive PEA for SMSZ

Project with USD $24M After-Tax NPV (10%)

and 34% IRR at USD $2,500/oz Gold for Barani

and Gourbassi Deposits in Mali

Delta, British Columbia--(Newsfile Corp. - August 7, 2025) - Desert Gold Ventures Inc. (TSXV: DAU)

(FSE: QXR2) (OTCQB: DAUGF) ("Desert Gold" or the "Company") is pleased to announce the results

of its maiden Preliminary Economic Assessment ("PEA") for the Barani and Gourbassi deposits,

located on its 100%-owned SMSZ Gold Project in western Mali.

The PEA outlines a low-capex, open-pit oxide mining operation, with projected production of

approximately 18,300 tonnes per month (or 220,000 tonnes per annum at steady state) over a mine life

exceeding 17 years. The study was completed by

Minxcon

, with technical work and cost estimation

exceeding the minimum standards typically required for a PEA and completed to a confidence level of

±25% accuracy.

The PEA mine plan includes a total of 113,500 ounces of gold contained, with an estimated 97,600

ounces expected to be recovered through a simple, gravity and CIL processing flowsheet, based on an

average metallurgical recovery of 86%. At a spot gold price of USD $2,500/oz, the project generates an

after-tax Net Present Value (NPV) at a 10% discount rate of USD $24 million, an Internal Rate of Return

(IRR) of 34%, and a projected payback period of 3.25 years.

At the current spot gold price of USD $3,366 the project generates an after-tax Net Present Value (NPV)

at a 10% discount rate of USD $54 million, an Internal Rate of Return (IRR) of 64%, and a projected

payback period of 2.5 years.

The mining plan is designed to be broken out into two phases, starting with open-pit operations at

Barani East before transitioning to the Gourbassi deposits. A modular gravity and CIL processing plant

will be commissioned at Barani for the first phase of production and later moved to Gourbassi as

operations shift. This staged approach helps keep initial capital costs low, avoids duplicating

infrastructure, and allows the Company to unlock value from multiple oxide gold zones across the SMSZ

Project in a flexible and cost-effective manner.

PEA Highlights:

After-tax NPV

10%

of $24 million and after-tax IRR of 34% based on $2,500/oz gold

Funding requirement of $16 million with initial capital cost of $15 million and sustaining

capital of $9 million over life of mine

Current mine life of over 17 years

All in sustaining cost per oz ("AISC") of USD $1,352

Projected average RoM production of 18.3 kt per month or 220 kt per year

Projected average gold production of 460 oz per month or 5.5 koz per year

After-tax buyback of 3.25 years at base case of $2,500/oz gold

Cumulative cash-flow of $71 million after-tax over 17 years on base case assumptions

Total payable gold production of 97,600 ounces

Average strip ratio for the combined operations is estimated at 2.47:1

Company CEO, Jared Scharf commented "We are delighted to deliver such a strong mine plan. With

less that 10% of the SMSZ Project's gold resources incorporated into this study, there is tremendous

opportunity to improve project economics and materially grow this operation over time. We have

intentionally designed a mining solution that is both modular and flexible from a processing perspective

giving us maximum operational optionality as we move forward. Significant emphasis will continue to be

placed on exploration at the SMSZ project especially for gold zones and prospects proximal to the initial

mine sites of Barani and Gourbassi. Furthermore, the Barani East Small Mine permit allows for up to 36

kilotons per month of ore processing. This means we have the ability to double production from the

current PEA plan of 18 kilotons per month with. Given the numerous brownfield exploration targets within

close proximity to the Barani starter pit, management believes there is a high likelihood of growing this

operation materially over time."

Table 1.

Financial and Operating Metrics from the Preliminary Economic Assessment

*Note: This Preliminary Economic Assessment (PEA) is an early-stage study that includes Inferred Mineral Resources. These resources are

considered too geologically uncertain to support economic evaluations that would allow them to be classified as Mineral Reserves. As such, this

PEA is preliminary in nature and its results-including projected mine plans and economics-should not be relied upon as definitive. There is no certainty

that the proposed development scenarios will be realized. Only Mineral Reserves have demonstrated economic viability under NI 43-101 guidelines.

Sustaining costs also includes Mobilization and reinstalment of the modular processing facility from the Barani to the Gourbassi Deposit

2025 SMSZ Preliminary Economic Assessment (PEA) Highlights

(Barani & Gourbassi Combined)

Production

Mine Life (years)

17.4

Total Gold Production (oz)

97,600

Average Annual Gold production (oz)

5,500

Total mineralized mine (kt)

3,714

Total waste mined (kt)

9,184

Total material mined (kt)

12,898

Total waste-to mineralization ratio

2.47

Average gold grade (g/t)

0.95

Gold process recovery (%)

Average Process Plan Throughput (ktpm)

18.3

Operating Costs

Mining costs per tonne (Total Material)

$2.40

Mining cost per tonne (Mineralization)

$3.06

Mining cost per tonne processed

$12.30

G&A cost per tonne processed

$6.20

Processing cost per tonne processed

$16.30

Total cost per tonne processed

$34.80

Total Cash out (per ounce sold)

$1,324

Mine site all in sustaining cost (per ounce sold)

$1,352

Capital Costs

Initial Capital Expenditure (Initial Capex)

$15 M

Sustaining Capital Expenditures

$9 M

Net Reclamation costs (cost less salvage value)

Total Capital Expenditure - Life of Mine

$24M

Total Capital Expenditure (per ounce sold)- life of mine

$243/oz

Base Case Economic Assessment: $2,500/oz Gold Price

IRR (after tax)

34%

NPV @0% Discount rate (millions, after tax)

$71 M

NPV @10% Discount Rate (millions, after tax)

$24 M

Payback (years)

3.25

Economic Assessment: $3,366/oz Gold Price (as of August 06, 2025)

IRR (after tax)

64%

NPV@0% Discount Rate (millions, after tax)

139 M

NPV @10% Discount Rate (millions, after tax)

54 M

Financial Analysis and Sensitivities

The SMSZ Project is expected to generate a total after-tax free cash flow of $71 million, averaging about

$4.1 million per year over the 17.4-year mine life. Cash flow is generally steady across the life of the

project, with a slight dip expected during the transition between mining at Barani and Gourbassi. This

reflects the planned relocation and commissioning of the modular processing plant and is already

accounted for in the overall schedule and financials.

Figure 1:

After-tax Cash Flow over Life of Mine for both Barani and Gourbassi

To view an enhanced version of this graphic, please visit:

https://images.newsfilecorp.com/files/4954/261501_4b8ea7c9b43bf881_001full.jpg

The SMSZ Project demonstrates strong leverage to gold price, as illustrated in the sensitivity analysis

presented in Table 2. At the base case scenario of US$2,500 per ounce, the Project yields an after-tax

NPV (10%) of US$24 million and an after-tax IRR of 34%. At a higher gold price of US$3,000 per ounce,

the after-tax NPV increases to US$41 million with an IRR of 51%. These sensitivities are presented for

illustrative purposes only and assume all other parameters remain constant.

Table 2

: PEA Sensitivities to Gold Price, Operating Costs (OPEX) and Capital Costs (CAPEX)

*$3,366 is the spot gold price as of Aug.6, 2025

Gold Price Sensitivity

Range

Gold Price

After Tax NPV (10%) ($M)

IRR

Payback (years)

-20%

$2,000

17%

7.3

-12%

$2,200

24%

5.8

-4%

$2,400

31%

3.7

$2,500

34%

3.3

$2,600

38%

3.1

12%

$2,800

45%

2.9

20%

$3,000

51%

2.8

35%

$3,366*

64%

2.5

OPEX Sensitivity

Range

OPEX ($/t)

After Tax NPV (10%) ($M)

IRR

Payback (years)

-20%

44%

2.9

-12%

40%

3.0

-4%

36%

3.2

34%

3.3

32%

3.5

12%

29%

3.9

20%

25%

5.8

CAPX Sensitivity

Range

CAPEX ($)

After Tax NPV (10%) ($M)

IRR

Payback

-20%

16.7

44%

2.9

-12%

18.4

40%

3.0

-4%

20.1

36%

3.2

20.9

34%

3.3

21.7

33%

3.4

12%

23.4

30%

3.7

20%

25.1

28%

5.3

Gold Production

Average annual gold production over the life of mine is estimated at 5,500 ounces (or ~458 ounces per

month), with total payable gold production projected at approximately 97,600 ounces across both the

Barani and Gourbassi deposits.

Figure 2.

Production Profile for both Barani and Gourbassi based on months

To view an enhanced version of this graphic, please visit:

https://images.newsfilecorp.com/files/4954/261501_4b8ea7c9b43bf881_002full.jpg

Capital Costs

The initial capital cost is estimated at approximately $15 million, with sustaining capital over the life of

mine projected at $9 million. Contingencies of 20% have been applied to the direct capital costs. These

estimates are grounded in current pricing data, including vendor quotes from regional suppliers, and

benchmarked against cost structures from comparable West African gold operations.

Initial capital is largely directed toward developing the Barani East deposit, including installation of the

modular processing plant. Sustaining capital is allocated primarily to the relocation of that plant to the

Gourbassi site during the second phase of mining. By utilizing a modular plant that can be redeployed

rather than duplicated, Desert Gold has significantly reduced upfront capital costs. This staged approach

helps control early expenditures and avoids unnecessary infrastructure overlap. A breakdown of the

initial capital estimate, totaling US$15 million, is provided in Table 2.

Table 2.

Summary of Initial and Sustaining Capital Costs

Initial Capital

Item

Cost ($USD)

Process plant mobilization, construction, and relocation

$3.2 million

Tailings and water management facilities

$1.8 million

Power and Water infrastructure

$2.8 million

Site access, civil works, and mine establishment

$1.2 million

Fleet, camp, and support services

$1.2 million

Indirect Capital and Owner's costs

$2.1 million

Contingency (20%)

~$2.4 million

Sustaining Capital

Item

Cost ($USD)

Process plant mobilization, construction, and relocation

$0.4 million

Tailings and water management facilities

$2.1 million

Power and Water infrastructure

$1.0 million

Site access, civil works, and mine establishment

$0.9 million

Indirect Capital and Owner's costs

$0.7 million

Contingency (20%)

~$1.0 million

Ongoing equipment maintenance and renewals

$2.8 million

Cash Costs

Total cash costs for the SMSZ Project are estimated at $34.80 per tonne processed, or $1,324/oz of

payable gold. The all-in sustaining cost (AISC) is estimated at $1,352/oz. These operating costs reflect

the use of modular infrastructure, low strip ratios at Gourbassi, and owner-operated mining, which

collectively contribute to lower per-tonne costs compared to regional peers.

Cost estimates were derived from vendor quotations, current fuel and labor assumptions in Mali, and

benchmarking against similar oxide gold operations across West Africa.

Table 3

. Total Cash Costs for Both Barani and Gourbassi Deposits

Total Cash Costs

Cost Item

Cost ($USD)

Mining Cost (per tonne processed)

$12.30

Processing Cost (per tonne processed)

$16.30

G&A Cost (per tonne processed)

$6.20

Total Cost (per tonne processed)

$34.80

Royalties and Other (per tonne processed)

Total Cash Cost (per ounce sold)

$1,324

Mineral Resource Estimate

The current Preliminary Economic Assessment (PEA) for Desert Gold's SMSZ Project focuses

exclusively on oxide and transitional mineralization within optimized open pits at the Barani East, Barani

Gap, Gourbassi West, and Gourbassi West North deposits. These four zones collectively contribute

approximately 113,500 ounces of gold to the mine plan (after mining modifying factors), with an average

recovered grade of 0.95 g/t Au and a projected gold recovery of 86% via conventional CIL processing,

equating to roughly 97,600 ounces of recoverable gold.

Importantly, the study excludes some of the smaller pits identified during the PEA which may offer

additional upside in future technical work. Furthermore, the current cutoff grade for reporting the Mineral

Resource Estimate (MRE) is 0.2 g/t Au.

The total Measured and Indicated (M&I) Resources now stand at 11.12 Mt grading 0.94 g/t Au for

336,800 ounces, while Inferred Resources total 27.16 Mt grading 1.01 g/t Au for 879,900 ounces. The

total ounces reflect the oxide, transition and sulfide/fresh mineralization for the SMSZ Project. The PEA

only focused on the oxide and transitional material and therefore the PEA pits were optimized on the

oxide and transition material. The exclusion of the sulfides, which contribute ~45% to the MRE at Barani

and Gourbassi, would also result in less oxide and transitional material being include in the PEA pits.

The highlighted deposits in table 4: Gourbassi West, Gourbassi West North, Barani Gap, and Barani

East, contribute ~ 470koz of oxide, transitional and fresh mineralized material to the MRE. The oxide and

transitional mineralized material for these four areas is ~260,000 oz Au.

Key exploration targets such as Mogoyafara South, Linnguekoto West, and the Keniegoulou area were

not included in the current PEA, though they collectively host substantial Inferred Resources and

represent clear upside for future expansion. In total, over 1 million ounces of gold remain outside of the

current PEA pit shells (resources which are deeper, narrower, or require higher strip ratios) and could be

integrated into subsequent development scenarios pending additional drilling and studies.

Figure 3:

Cross Section View of the Barani East highlighting the PEA pit design as well as the mineral

resource pit

To view an enhanced version of this graphic, please visit:

https://images.newsfilecorp.com/files/4954/261501_4b8ea7c9b43bf881_003full.jpg

Table 4

. Total Mineral Resource Update for SMSZ Project

**Only the highlighted resource blocks, specifically those within the Gourbassi West, Gourbassi West North, Barani Gap and Barani East

oxide/transitional zones, are incorporated into the current PEA mine plan. All other resources, including sulfide material and smaller or deeper pits,

are excluded from the economic analysis at this current stage.

Mineral

Resource