SCOT.V · 2025-10-28 12:00:00

Scottie Resources Announces Impressive Economics in Preliminary Economic Assessment for Scottie Gold Mine Project

Economic Studies

Scottie Resources Announces Impressive

Economics in Preliminary Economic

Assessment for Scottie Gold Mine Project

Vancouver, British Columbia--(Newsfile Corp. - October 28, 2025) - Scottie Resources Corp. (TSXV:

SCOT) (OTCQB: SCTSF) (FSE: SR80) ("

Scottie

" or the "

Company

") is pleased to announce the

results of an independent Preliminary Economic Assessment ("PEA") completed by Tetra Tech Canada,

Inc. ("

Tetra Tech

") for the Scottie Gold Mine project in British Columbia, Canada.

The PEA outlines a robust

Direct-Ship Ore ("DSO")

development scenario for the Scottie Gold Mine

Project, with strong economics and leverage to the current gold price environment, and additional upside

potential through toll milling. All dollar ($) amounts in this news release are in Canadian dollars ($) unless

otherwise indicated. The base case DSO project delivers an after-tax NPV(5%) ranging from $215.8

million to $668.3 million at gold prices of US$2,600/oz and US$4,200/oz, respectively.

Importantly, the

PEA also presents the opportunity to utilize excess capacity at the nearby Premier mill through a toll-

milling arrangement, which could significantly enhance project economics. Under this scenario, the after-

tax NPV(5%) increases to $380.1 million at US$2,600/oz and $831.7 million at US$4,200/oz (note: no

toll-milling agreement is currently in place). The PEA contemplates an initial capital cost of $128.6 million

and average annual production of approximately 65,400 ounces of gold over a seven-year mine life. The

project demonstrates a compelling after-tax payback period of 1.7 years for the standalone DSO case,

and just 0.9 years under the toll-milling opportunity at a gold price of US$2,600/oz.

The Company will be hosting a webcast to review the PEA on Wednesday, October 29, 2025 at

8:00am PT.

To join the webcast, please follow this link:

https://www.gowebcasting.com/14523

Table 1:

Gold Price Sensitivity and Comparison table between DSO Base Case and Toll Milling

Options for the Scottie Gold Mine Project.

Gold Price

Description

DSO Base

Case

Toll Milling

Option*

$2600

US/oz

After-Tax NPV

$215.8M

$380.1M

After-Tax IRR

60.3%

89.9%

After-Tax Payback

1.2 years

0.9 years

After-Tax NPV/CAPEX

1.7

3.0

$3400

US/oz

After-Tax NPV

$442.0M

$606.0M

After-Tax IRR

107.9%

135.2%

After-Tax Payback

0.8 years

0.7 years

After-Tax NPV/CAPEX

3.4

4.7

$4200

US/oz

After-Tax NPV

$668.3M

$831.7M

After-Tax IRR

153.2%

177.5%

After-Tax Payback

0.6 years

0.5 years

After-Tax NPV/CAPEX

5.2

6.5

Note: Scottie Gold Mine Preliminary Economic Assessment Base Case assumes a gold price of US$2600/troy ounce ("oz") and a US$/CAD$

exchange rate of 0.72:1.00. NPV/CAPEX is the ratio between NPV value versus Initial Capex *At this time there is no toll milling arrangement in place

with the nearby Premier mill.

The Direct Ship Ore ("DSO") PEA marks a major milestone for Scottie

," commented Brad Rourke,

CEO. "

It highlights a simple, low-capex project with robust economics and clear growth potential

through ongoing discovery. The DSO scenario eliminates the need for a mill or tailings facility,

streamlining both permitting and construction. In addition, the optionality of toll milling at a nearby

facility presents a clear, low-risk development pathway with meaningful upside. As we advance

engineering and permitting, our successful 2025 drilling campaign and planned 2026 program are

expected to convert a substantial portion of the current resource to the Indicated category and add new

ounces-extending mine life and further strengthening project economics

PEA Summary

The DSO project is planned to commence with open pit mining at the Blueberry Contact Zone, closely

followed by underground mining at the Blueberry Contact Zone, and subsequently the Scottie Gold Mine

(see Figure 1 for production schedule). The mined material will be then jaw crushed and sorted using an

XRF based ore sorting system. The upgraded product will be transported to the Stewart bulk shipping

facility located 40 km down an existing road to be shipped overseas. The material would be then sold to

Ocean Partners based on the negotiated terms in the existing offtake agreement (

see NR dated July 7,

2025

The PEA is based on the mineral resource estimate, titled "NI 43-101 2025 Maiden Mineral Resource

Estimate for the Scottie Gold Mine Project" for the Scottie Gold Mine Property, British Columbia,

Canada, effective February 2, 2025 and announced on

May 7, 2025

(the "February 2025 Mineral

Resource Estimate").

Technical and Financial Details

Table 2:

Scottie Gold Mine DSO PEA Summary (Base Case), assumes a 5% discount rate and a gold

price of US$2600.

Throughput (tpd)

900

Mine Life

7 years

Milled Tonnage (Mt)

2.19

Average LOM Gold Head Grade (gpt)

6.86

Contained Gold oz

483,000

Gold Recovery

94.7%

Payable Gold oz (LOM)

457,600

Average Annual Production (LOM) - Gold oz

65,400

Average Annual Production (Years 1-4) - Gold oz

77,300

UG Mining Cost ($/t sorted)

$118.10

OP Mining Cost ($/t mined)

$6.95

Processing Cost ($/t sorted)

$17.96

G&A Cost ($/t sorted)

$31.23

Surface Services Cost ($/t sorted)

$16.76

Total Operating Cost ($/t sorted)

$185.30

Initial Capital Cost ($ million)

$128.6

LOM Sustaining Capital Cost ($ million)

$76.7

LOM AISC (US$/oz Au)

US$1452

Pre-Tax IRR

82.5%

Pre-Tax NPV (5%, $ million)

$326.1

Pre-Tax Undiscounted LOM net free cash flow ($ million)

$419.1

Pre-Tax Payback period

1 year

After-Tax IRR

60.3%

After-Tax NPV (5%, $ million)

$215.8

After-Tax Undiscounted LOM net free cash flow ($ million)

$283.5

After-Tax Payback period

1.2 years

The PEA presents a range of metal pricing scenarios on after-tax basis to evaluate the economics of the

project in both base case and alternate commodity price scenarios:

Additional sensitivities to the price of gold, recovery, exchange rate, Capex, and Opex will be presented

in the PEA Technical Report. The project economics are most sensitive to gold prices.

Diluted Resource Estimate

The resource estimate for the PEA is based on inferred resources as stated in the February 2025

Resource Estimate for the Scottie Gold Mine project. Certain mining factors have been applied to this

resource estimate, to generate diluted resources using a conceptual mine plan for the PEA. The

February 2025 Resource Estimate is summarized below:

Blueberry Pit Resource

Source

Cutoff Au

Tonnage

NSR

Au Metal

(g/t)

(ktonnes)

(g/t)

($CDN)

(kOz)

Blueberry Pit (Inferred)

0.25

2,887

2.06

156.04

191

0.3

2,712

2.17

164.69

190

0.5

2,114

2.68

202.51

182

0.7

1,707

3.17

239.73

174

1,323

3.85

290.19

164

2.5

600

6.61

492.83

128

273

10.35

755

Total Underground Resource

Source

Cutoff Au

Tonnage

NSR

Au Metal

(g/t)

(ktonnes)

(g/t)

($CDN)

(kOz)

Blueberry and Scottie Mine Underground (Inferred)

2.5

1,897

8.66

678.51

528

1,704

9.33

731

511

3.5

1,549

9.94

778.78

495

1,404

10.59

829.04

478

4.5

1,269

11.26

881.69

459

1,143

11.98

937.99

440

520

18.05

1,413.75

302

Inferred

varies

3,604

6.06

470.69

703

Notes to the 2025 Resource Table:

Resources are reported using the 2014 CIM Definition Standards and were estimated using the 2019 CIM Best Practices Guidelines, as

required National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101")

The base case MRE has been confined by "reasonable prospects of eventual economic extraction" shape using the following assumptions:

Metal price of US$2000/oz gold

Metallurgical recovery of 90% gold

Payable metal of 99% gold in doré

Forex of 0.74 $US:$CDN

Processing costs of CDN$24 / tonne milled, which includes milling, transport, smelter treatment, refining and General &

Administrative (G&A) costs

Underground production cost of CDN$78 / tonne, and underground development costs to be CDN$90 / tonne, for a total underground

mining cost of CDN$168 / tonne

Open pit mining costs of CDN$3.00 / tonne for mineralized and waste material

45-degree pit slopes

The 130% price case pit shell is used for the confining shape with elevation adjustment of the main Blueberry pit for the

underground resource.

The resulting net smelter return is NSR = Au g/t* CDN$98.60 / g * 90% recovery rate

Numbers may not add due to rounding.

Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the

estimated mineral resources will be converted into mineral reserves.

It is noted that the prices and costs used for the resource estimate are not identical to the updated values

used for the mining and cash flow calculations. The costs and Au price used for the resource reflect

those considered reasonable at the effective date of the resource estimate. A check has been done on

these values compared to the current values and it is found that the resource is somewhat conservative

on price resulting in a similar cutoff for open pit mining and somewhat higher cutoff for underground than

that used for the mining study and cashflow.

The Qualified Person is of the opinion that issues relating to all relevant technical and economic factors

likely to influence the prospect of economic extraction can be resolved with further work. These factors

may include environmental permitting, infrastructure, sociopolitical, marketing, or other relevant factors.

Mining Method

The Project is planned as a combined open pit and underground mining operation utilizing contractor

mining. Open pit development is expected to utilize a conventional truck-and-shovel method, whereas

underground development will be based on longitudinal longhole stoping. A nominal average production

rate of approximately 900 tonnes per day (tpd) has been assumed for the combined operation.

For the base case scenario, resource material selected as run-of-mine (ROM) mill feed will be

stockpiled and subsequently processed using an ore sorter. The ore sorter concentrate will be shipped

directly to overseas markets. This mining and processing strategy has been applied to both the open pit

and underground components and forms the basis of the PEA.

Table 3:

Combined Resource Material for Ore Sorter Feed

Phase

Rock

(Mt)

Ore Sorter

Feed (Mt)

Waste

(Mt)

(g/t)

Au contained

(kOz)

Au Recovered (kOz)

Total OP

5.86

0.32

5.54

7.71

Total UG

2.55

1.87

1.73

6.72

403

384

Total

8.41

2.19

7.27

6.87

482

460

Note: BB = Blueberry, OP = open pit, UG = underground, Au = gold grade (g/t), Mt = million tonnes, kOz = thousand ounces

The Blueberry deposit was assessed to a combination of open pit and underground mining.

The Scottie

deposit, which was previously mined utilizing shrinkage stoping approximately 50 years ago, was

assessed as underground only.

The combined Resource material selected as ore sorter feed is summarized in Table 3 and the base

case production schedule used in the preliminary cashflow analysis is shown in Figure 1.

Figure 1:

Base Case Production Schedule over LOM

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

https://images.newsfilecorp.com/files/11118/272131_17cdb15b94598a7a_001full.jpg

Note: BB UG = Blueberry underground, Scottie UG = Scottie underground, BB OP = Blueberry open pit, Au = gold grade (g/t), kt = thousand tonnes

Metallurgy

Since 1980, numerous phases of metallurgical testing have been conducted on Scottie samples to

investigate the gravity-recoverable gold content, the cyanide leaching performance of head composite

samples, and the response of gravity tailings to flotation and cyanidation processes. These early studies

laid the groundwork for understanding the mineralization's behavior under conventional recovery

methods.

Beginning in 2024, the focus of metallurgical work shifted toward mill feed pre-concentration using ore

sorting and dense media separation (DMS).

Scottie Resources launched a particle sorting test program involving 210 quarter-core samples - 70

each from the Blueberry Open Pit (BBOP), Blueberry Underground (BBUG), and Scottie Gold Mine

Underground (SGMUG) zones. These samples, roughly 3 inches in size, were derived from broken drill

core and represented a broad spectrum of gold grades from each zone.

The primary objective of the program was to evaluate the effectiveness of separating target

mineralization from waste using X-ray scanning technologies. The results were analyzed across several

operational metrics, including feed grade, mass pull to product, gold recovery, sorted product grade,

rejected waste grade, and upgrade ratio.

Overall, the test program (

see NR dated April 1, 2025

) demonstrated that particle sorting was highly

effective across all zones using both XRT and XRF technologies. Notably, XRF outperformed XRT in

terms of mass pull to recovery ratio, particularly within the 30-60% mass pull range. Additionally, XRF

offered the advantage of enabling a three-way sort, allowing for the creation of a low-grade stockpile in a

single stage using commercially available sorting equipment.

Process Plant

Based on the results of the test work, a cost-effective processing flowsheet was developed to recover

and upgrade the mill feed into a saleable concentrate using ore sorting technique. The processing plant

includes the following components:

A primary crusher operates in closed-circuit with a triple-deck dry screen.

Coarse product from the dry screen is washed using a double-deck wet screen to prepare the feed

for ore sorter. Fine product from the dry screen is stockpiled and later blended with sorter

concentrate.

The two fractions (coarse & fine) from the wet screen are sorted separately using two X-ray

fluorescence (XRF) sorters to produce final concentrate, which is shipped directly overseas for

sale.

Wash water from the wet screen is recycled using a belt filter.

All the associated utilities required for plant operation are included.

Initial and Sustaining Capital Cost Estimates

The PEA estimates initial capital requirements of $128.6 million and cumulative sustaining capital of

$76.7 million (Table 4).

Table 4:

Initial and Sustaining Capital Costs

Initial Capital Item

Initial Capital

($ million)

Mining Infrastructure

$6.8

Site Access & Pads

$5.0

Site Services Mobile Equipment

$7.8

Process Plant

$26.2

Surface Infrastructure

$38.8

Project Indirects

$23.7

Owners Costs

$3.4

Contingency

$16.9

Total

$128.6

OP Mining - Preproduction

$4.5

Sustaining Capital Item

Sustaining Capital ($ million)

Mining

$73.1

Others

$3.6

Total Sustaining Capital

$76.7

Reclamation/Closure Costs

$15.0

All capital incurred up to the end of construction period, except pre-production mining ($4.5M), is

included in the Initial Capital. The PEA is based on contractor open pit and underground mining model.

Any capital required from operation commencement is included in Sustaining Capital. A total of $16.9

million in contingencies have been included in the Initial Capital which is approximately 20% of the Initial

Directs Costs.

Operating Cost Estimates

LOM operating costs for the Scottie Gold Mine DSO project are estimated to average $185.38 per

tonne sorted. During the start-up period, processing and general and administrative ("G&A") costs per

tonne are slightly higher until sorting throughput ramps up to design capacity. The PEA is based on

contractor open pit and underground mining, which has an estimated UG LOM cost of $118.1 per tonne

sorted and OP LOM cost of $6.95 per tonne mined. Processing costs are estimated at $17.96 per tonne

sorted, G&A and site services costs are estimated at $31.23 and $16.76 per tonne sorted, respectively.

The processing, G&A, and site services costs per tonne sorted are based on an estimated plant

operating time of 50% over the LOM with potential to improve these unit costs with potential utilization of

a leaching plant nearby (see section entitled Scottie Gold Mine Opportunities to Enhance Value below).

All-In Sustaining Cash Costs per Ounce of Gold Equivalent

AISC are estimated to be US$1,452/oz Au produced, based on LOM production of 457,600 recoverable

ounces Au.

Scottie Gold Mine Opportunities to Enhance Value

Of the studied project design components, the PEA demonstrates that the most profound improvement

to the project economics is toll milling the product at the nearby Premier mill (i.e. Table 1). No toll milling

arrangement is currently in place with the Premier mill, it is considered in the PEA as a recommendation

for further study work. The Premier mill is located halfway along the trucking route to the Stewart

Terminal. The model assumes appropriate operating costs derived from Ascot's 2020 Feasibility Study,

with an additional toll milling premium applied, similar to comparable toll milling projects. At US$2600/oz

gold the AISC for the toll milling model is calculated to be US$935 (versus US$1452 in the base-case

DSO model).

Several opportunities have been identified that may significantly enhance the economic return outlined in

the PEA, including but not limited to the following:

Toll milling: Additional opportunities of refinement on this concept include: (1) optimizing mine plan

and resource for reduced shipping costs (i.e. include more lower grade ounces), (2) removal of the

crushing/ore sorting plant, and (3) further metallurgical test work on the mineralization to maximize

recovery in a toll milling scenario. The results from our preliminary metallurgical test-work

suggested intensive leaching recoveries of up to 97% for both gold and gold gravity concentrates.

In the PEA, the cyanide leaching recoveries is set at 89.1%. Historic production and recent test

work suggests potential for improved gold recoveries of approximately 91-95% for gold. Scottie

intends to follow up these promising results with further test work to be completed and incorporated

into the Feasibility (FS).

Exploration Potential: The resource estimated for the PEA is based on the February 2025 Mineral

Resource Estimate, which includes the Blueberry Zone, Scottie Gold Mine, and Bend vein. With

success on further drilling, there are several ways that expanded resources could improve the

economics of the project, including higher throughput, extended mine life, and bringing in additional

isolated stopes left off the PEA mine plan due to development costs.

Throughput Expansion: The mine plan for the PEA is based on a 900 tpd throughput scenario,

which results in a 7-year mine life. Expanded resources have the potential to justify increased mine

and mill throughput. As part of the upcoming Feasibility Study (FS), Scottie will evaluate the

potential costs to expand the process plant capacity to 1,500-2,000 tpd with potential benefits to

unit costs for processing and G&A with respect to economies of scale.

Reduced Development Cost per Ounce: Blueberry and Scottie Gold Mine underground deposits

have relatively high development costs per ounce of mineral resource. Expanding the resource for

these areas would spread the relatively high development capital over more ounces, improving

economics and reducing the AISC per ounce.

Power Line: The PEA assumes the use of onsite generated power using conventional fuel at

$0.26/KWH or higher and exposes the operation to fluctuations in the price of fuel. The FS will

investigate the contemplation of the connection of the site to the BC Hydro grid via power available

at an estimated cost of $0.07/KWH.

Feasibility Study

With the PEA completed, Scottie is moving forward with a Feasibility Study for the Scottie Gold Mine

project. The Company is targeting completion of the FS in H1, 2027 and making a production decision

following the release of a positive study. The on-going FS data collections and engineering will allow us

to conduct detailed feasibility work including further metallurgy, assess geotechnical conditions,

reconcile underground grades with the resource model, complete test mining to define the optimum

mining method, and determine more accurate development costs.

The recommended budget for the FS, field support for the study, ongoing exploration work,

environmental work, infill drilling, upgrading mineral resources to mineral reserves and construction

planning over the next 12 months is estimated at $25 million.

Tetra Tech's work to complete the PEA, demonstrates that the Scottie Gold Mine project has robust

economic potential and recommends that Scottie continue developing the project with emphasis on the

exploration work required to improve confidence in inferred resources.

Qualified Persons

The Independent Qualified Persons, as defined in NI 43-101 for the PEA and who have reviewed and

approved the contents of this news release are Hassan Ghaffari, P. Eng., M.A.Sc., Jianhui (John) Huang,

PhD, P. Eng. from Tetra Tech, and Damian Gregory, P. Eng. from Snowden Optiro, and Sue Bird, P.

Eng. from Moose Mountain Technical Services.

The Technical Report, "NI 43-101 2025 Maiden Mineral Resource Estimate for the Scottie Gold Mine

Project" for the Scottie Gold Mine Property, British Columbia, Canada, effective February 2, 2025 and

announced on June 24, 2025, has been filed on SEDAR+.

Dr. Thomas Mumford, P.Geo., President of the Company and a non-independent qualified person under

National Instrument 43-101, has reviewed and approved the technical information contained in this news

release on behalf of the Company.

ABOUT SCOTTIE RESOURCES CORP.

Scottie Resources holds 100% interest in the Scottie Gold Mine Property, which includes the high-grade,

past-producing Scottie Gold Mine and the adjacent Blueberry Contact Zone. The Company also owns a

100% interest in the Georgia Project, host to the past-producing Georgia River Mine, as well as the

Cambria, Sulu, and Tide North properties. In total, Scottie controls approximately 58,500 hectares of

highly prospective mineral claims within the Stewart Mining Camp in British Columbia's Golden Triangle-

one of the world's most prolific mineralized districts.

Scottie's current resource estimate on the Scottie Gold Mine Project includes a total of 703,000 gold

ounces at an average grade of 6.1 g/t (Inferred category), highlighting the potential for a significant near-

surface, high-grade deposit. The Company's strategy is to continue expanding this resource and to

define additional mineralization around past-producing mines through systematic drilling and surface

exploration.

In parallel, Scottie is evaluating a potential Direct Shipping Ore (DSO) scenario at the Scottie Gold Mine.

With permits in hand, a 10,000-tonne bulk sample is underway. This initiative provides an opportunity to

collect key geotechnical and metallurgical data while assessing a low-capex path to potential near-term

revenue through toll milling or third-party processing. This DSO concept does not imply a production

decision but reflects the optionality embedded in Scottie's portfolio.

Additional Information

Brad Rourke

Chief Executive Officer

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