Montage GOLD Repurchases 1% NSR Royalty ON Its Koné Project
Press
Release
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MONTAGE GOLD REPURCHASES 1% NSR ROYALTY ON ITS KONÉ PROJECT
Vancouver, Canada — November 21, 2024 — Montage Gold Corp. (“Montage” or the “Company”) (TSXV: MAU,
OTCQX: MAUTF) is pleased to announce that it has repurchased a 1.0% net smelter returns royalty (“Royalty”) on its
Koné project, in Côte d’Ivoire, for a total cash consideration of US$10 million.
Martino De Ciccio, CEO of Montage, commented: “Given the strong liquidity sources recently secured, we are pleased
to have the strategic and financial flexibility to exercise our right to repurchase a 1.0% royalty on our Koné project ,
as part of our prudent capital allocation strategy . We believe that this investment offers the ability to significantly
enhance the value unlocked by our exploration efforts as many identified exploration targets are covered by the
royalty repurchased.
Moreover, we are delighted with the results of the ongoing 60,000 -meter drilling programme as it provides
confidence in our ability to deliver on our recently announced Measured and Indicated Resource discovery target of
at least 1 million ounces at a grade of more than 1 g/t Au, which would be 50% higher compared to the current Koné
deposit grade, to be achieved before the commencement of production. This would represent significant returns on
our exploration investment and aligns with our strategic objective of boosting production from the commencement
of production while maintaining an annual production of at least 300koz for more than 10 years.
We are excited with the momentum generated across our business and look forward to continuing to rapidly progress
our strategy of creating a premier African gold producer while delivering value for all our stakeholders.”
The Royalty covers the properties previously held under Mankono Exploration Limited (“Mankono” or the
“Property”) which Montage purchased from Barrick Gold Corporation (“Barrick”) and Endeavour Gold Corporation
(“Endeavour”) in November 2022. As part of the acquisition, Barrick and Endeavour were granted a 1.4% and 0.6%
net smelter return royalty, respectively, based on their relative ownership interest in the Property. The combined
2.0% royalty was subject to a 50% buyback option for a fixed cash consideration of US$10.0 million , to be exercised
by the second anniversary of the acquisition of Mankono. Consequently, the transaction reduces the royalty on the
Property from 2.0% to 1.0%, with Barrick and Endeavour retaining a 0.7% and 0.3% NSR royalty, respectively.
As shown in Figure 1, below, the Property initially comprised of 893km2, covers the original Gbongogo, Sissédougou
and Sisséplé exploration licenses. The majority of the Gbongogo permit is now captured under the Koné project’s
mining permit, as announced on July 10, 2024, with the remaining retained under exploration licenses. The area hosts
significant exploration potential as i t encompasses the Gbongogo deposit along with a number of advanced
exploration targets including Gbongogo South, Diouma North, Lokolo Main, Sean, Koban North, ANV and Yere North.
Many of these targets support the Company’s short-term strategic objective, as announced on October 7, 2024, of
discovering more than 1 million ounces of higher -grade Measured and Indicated resources at a grade 50% higher
than the Koné deposit, to be achieved before the commencement of production.
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Figure 1: The Mankono Property outline and exploration targets
Source for Indicated Resources stated in map above: Updated Feasibility Study press release dated January 16, 2024 available on Montage’s website and on
SEDAR+. See “Technical Disclosure”.
Neither TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this
release.
ABOUT MONTAGE GOLD CORP.
Montage Gold Corp. (TSXV: MAU) is a Canadian -listed company focused on becoming a premier multi -asset African gold
producer, with its flagship Koné project, located in Côte d’Ivoire, at the forefront. Based on the Feasibility Study publishe d in
2024, the Koné project has an estimated 16 -year mine life and sizeable annual production of +300koz of gold over the first 8
years. Over the course of 2024, the Montage management team will be leveraging their extensive track record in financing and
developing projects in Africa to progress the Koné project towards a construction launch.
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TECHNICAL DISCLOSURE
Mineral Resource and Reserve Estimates
The Koné and Gbongogo Main Mineral Resource Estimates were carried out by Mr. Jonathon Abbott of Matrix Resource
Consultants of Perth, Western Australia, who is considered to be independent of Montage Gold. Mr. Abbott is a member in good
standing of the Australian Institute of Geoscientists and has sufficient experience which is relevant to the commod ity, style of
mineralisation under consideration and activity which he is undertaking to qualify as a Qualified Person under NI 43 –101.
The Mineral Reserve Estimate was carried out by Ms. Joeline McGrath of Carci Mining Consultants Ltd., who is considered to be
independent of Montage Gold. Ms. McGrath is a member in good standing of the Australian Institute of Mining and Metallurgy
and has sufficient experience which is relevant to the work which she is undertaking to qualify as a Qualified Person under NI
43–101.
2024 Exploration
All exploration work on Kone project is designed and carried out under the supervision of Montage Gold Corp, Executive Vice
President, Exploration, Silvia Bottero, a registered Professional Natural Scientist with the South African Council for Natura l
Scientific Professions (SACNASP) and Qualified Person as defined in National Instrument 43 -101 developed by the Canadian
Securities Administrators.
Samples used for the results described above come from Diamond Drilling Holes and are based on 1 metre composite sample.
Core samples have been cut in two by core blade at the camp facilities then shipped by road to Bureau Veritas facility in Abidjan,
Côte d’Ivoire.
For RC drilling, samples were collected over 1 metre downhole intervals from the base of the cyclone and split with a three -tier
riffle split. Three kilograms samples were collected then shipped by road to Bureau Veritas facility in Abidjan, Côte d’Ivoir e. All
samples have been crushed to 2mm (80% passing) with 1 kilogram split out for pulverization to 75μm (85% passing) then analysed
by fire assay using a 50-gram charge.
Field duplicate samples are taken, and blanks and standards are inserted by Montage geologists into the sample sequence at a
rate of one of each sample type per 25 samples. This ensures that there is a minimum 4% QA/QC sample insertion rate applied
to each fire assay batch. The sampling and assaying are monitored and audited through analysis of these QA/QC samples by a
consultant independent of Montage. QA/QC has been designed to be in line with industry best standards and to follow NI 43 -
101 standards and the interpretation reviewed by the Qualified Person. Individual batches are monitored for Standard and Blank
failure during import to the database, whilst longer term QAQC trends are monitored on a periodic basis by Jonathan Hunt,
consultant independent of Montage and Chartered Geologist of the Geological Society of London.
For further details of the data verification undertaken, exploration methods undertaken and associated QA/QC programs, and
the interpretation thereof, and the assumptions, parameters and methods used to develop the Mineral Resource Estimates and
the Mineral Reserve Estimate for the Koné Gold Project, please see the UFS, entitled "Koné Gold Project, Côte d'Ivoire Updated
Feasibility Study National Instrument 43 -101 Technical Report" and filed on SEDAR+ at www.sedarplus.ca. Readers are
encouraged to read the UFS in its entirety, including all qualifications, assumptions and exclusions that relate to the details
summarized in this news release. The UFS is intended to be read as a whole, and sections should not be read or relied upon ou t
of context.
Results for exploration drillholes used the following parameters: 0.3 g/t Au cut off for samples, 0.5 g/t Au minimum value
composite and 2.0 metre maximum interval dilution length. Composite intervals represent (apparent) downhole thickness.
“Including” represents >10 g/t Au.
QUALIFIED PERSONS STATEMENT
The scientific and technical contents of this press release have been verified and approved by Silvia Bottero, BSc, MSc, a Qualified
Person pursuant to NI 43 -101. Mrs. Bottero, EVP Exploration of Montage, is a registered Professional Natural Scientist with the
South African Council for Natural Scientific Professions (SACNASP), a member of the Geological Society of South Africa and a
Member of AusIMM.
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CONTACT INFORMATION
For Investor Relations Inquiries:
Jake Cain
Strategy & Investor Relations Manager
+44 7788 687 567
For Media Inquiries:
John Vincic
Oakstrom Advisors
+1-647-402-6375
For Regulatory Inquiries:
Kathy Love
Corporate Secretary
+1-604-512-2959
FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking information and forward-looking statements within the meaning of Canadian
securities legislation (collectively, “Forward -looking Statements”). All statements, other than statements of historical fact,
constitute Forward-looking Statements. Words such as “will”, “intends”, “proposed” and “expects” or similar expressions are
intended to identify Forward -looking Statements. Forward -looking Statements in this press release include statements related
to the Company’s objectives of discovering more than 1 million ounces of higher -grade measured and indicated resources at a
grade 50% higher than the Koné deposit and the timing thereof; the Company’s mineral reserve and resource estimates; the
Company being on track to deliver stellar results; the timing and amount of future production from the Koné Gold Project;
anticipated mining and processing methods of the Koné Gold Project; anticipated mine life of the Koné Gold Project; targeted
improvements in the production profile; expected timing of commencement and completion of our stated drill programs in 2024;
results of the drill programs including targeted additions to the estimated mineral re sources at the Koné Gold Project, and the
timing thereof; the establishment of satellite deposits and the development of these deposits; expected recoveries and grades
of the Koné Gold Project; timing in respect of the commencement of construction, and the length of construction, of the mining
operations at the Koné Gold Project; timing and amount of necessary financing related to the mining operations at the Koné
Gold Project; and timing for permits and concessions, including that the Company will receive all approvals necessary to build
the project and exploration plans for 2024.
Forward-looking Statements involve various risks and uncertainties and are based on certain factors and assumptions. There is
no assurance that any economic satellite deposits will be discovered, and if discovered ever developed or mined. There can be
no assurance that any Forward -looking Statements will prove to be accurate, and actual results and future events could differ
materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from
the Company's expectations include uncertainties inherent in the preparation of mineral reserve and resource estimates and
definitive feasibility studies such as the Mineral Reserve Estimate and the UFS, and in delineating new mineral reserve and
resource estimates, including but not limited to, assumptions underlying the production estimates not being realized, incorrect
cost assumptions, unexpected variations in quantity of mineralized material, grade or recovery rates being lower than expected,
unexpected adverse changes to geotechnical or hydrogeological considerations, or expectations in that regard not being met,
unexpected failures of plant, equipment or processes, unexpected changes to availability of power or the power rates, failure to
maintain permits and licenses, higher than expected interest or tax rates, adverse changes in project parameters, unanticipated
delays and costs of consulting and accommodating rights of local communities, environmental risks inherent in the Côte d’Ivoire,
title risks, in cluding failure to renew concessions, unanticipated commodity price and exchange rate fluctuations, delays in or
failure to receive access agreements or amended permits, and other risk factors set forth in the Company’s 2023 Annual
Information form availab le at www.sedarplus.ca, under the heading “ Risk Factors”. The Company undertakes no obligation to
update or revise any Forward-looking Statements, whether as a result of new information, future events or otherwise, except as
may be required by law. New factors emerge from time to time, and it is not possible f or Montage to predict all of them, or
assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to diff er
materially from those contained in any Forward -looking Statement. Any Forward -looking Stat ements contained in this press
release are expressly qualified in their entirety by this cautionary statement.
NON-GAAP MEASURES
This press release includes certain terms or performance measures commonly used in the mining industry that are not defined
under International Financial Reporting Standards (“IFRS”), including AISC or “all -in sustaining costs” per payable ounce of gold
sold and per tonne processed and mining, processing and operating costs reported on a unit basis. Non -GAAP measures do not
have any standardized meaning prescribed under IFRS and, therefore, they may not be comparable to similar measures
employed by other companies. The Company discloses “all-in sustaining costs” and other unit costs because it understands that
certain investors use this information to determine the Company’s ability to generate earnings and cash flows for use in investing
and other activitie s. The Company believes that conventional measures of performance prepared in accordance with IFRS, do
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not fully illustrate the ability of mines to generate cash flows. The measures, as determined under IFRS, are not necessarily
indicative of operating profit or cash flows from operating activities. The measures cash costs and all-in sustaining costs and unit
costs are considered to be key indicators of a project’s ability to generate operating earnings and cash flows. Non-GAAP financial
measures should not be considered in isolation as a substitute for measures of performance prepared in accordance with IFR S
and are not necessarily indicative of operating costs, operating profit or cash flows presented under IFRS. Readers should al so
refer to our management’s discussion and analysis, available under our corporate profile at www.sedarplus.ca for a more
detailed discussion of how we calculate such measures.