STGO.TO · 2021-02-24 12:00:00

Steppe Gold Doubles the ATO Gold Mine Resource to 2.45Moz gold equivalent

Resource Estimates

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Steppe Gold Doubles the ATO Gold Mine Resource to 2.45Moz

gold equivalent

ULAANBAATAR, MONGOLIA – February 24, 2021 – Steppe Gold Ltd (TSX: STGO) (“Steppe Gold” or the

“Company”) is pleased to announce an updated independent Mineral Resource Estimate at its 100%

owned ATO Gold Mine. This estimate will form the basis of the upcoming bankable feasibility study

(“BFS”) due out in Q2 2021.

HIGHLIGHTS

 Resources at the ATO Gold Mine have doubled to 2.45 M oz of Au Eq, up from 1.22M oz Au Eq

 Increased ATO Measured and Indicated Resources (“M&I”) to 41.6 Mt at average Au Eq grade

of 1.67g/t

 M&I resources have increased to 2.24 Moz of Au Eq, using a cut‐off grade of 0.15g/t for oxide

and 0.4g/t Au Eq for fresh rock ores

 M&I resources show 1.39 M oz gold and 20.48M oz silver

 Inferred Resources at ATO of 208,000 oz Au Eq.

 Increase in the M&I resource is due primarily to significant expansion through drilling at the

ATO 4 Deposit and incorporation of a maiden resource at the Mungu Deposit

 Increase in average grade across the resource to 1.67g/t Au Eq

 The ATO 4 Deposit, where mining has recently commenced, shows M&I resource of 15.68 Mt

at 1.62g/t for total 819,000 oz Au Eq

 The maiden resource at the Mungu discovery shows M&I resource of 7.57 Mt at 1.74g/t for

424,000oz Au Eq

Mr. Bataa Tumur‐Ochir, President and CEO, commented, “We are very pleased to report on the

significant update of the resources at our 100% owned ATO Gold Mine. Our drilling efforts since 2018

have clearly demonstrated the great promise shown for this project and the potential we saw at the

outset. With production commenced in April 2020, we have proven the low cost profile of the ATO Gold

Mine with market low cash costs below $600/oz. This dramatic increase in the ATO resource further

underpins the long life attributes of the project. Internal studies and our drilling analysis have long

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supported the growth potential of ATO Gold Mine and sampling during mining has also shown strong

positive grade reconciliations. This resource update validates this.

The new Resource supports our Phase 2 expansion Project and shows ample resources for a circa 2.5 Mt

per annum fresh ore development. The Bankable Feasibility Study remains on schedule to be released

Q2 2021 and we are optimistic that this study will bear out a robust economic result and a further 10

plus years of production at 150k oz Au Eq with a focus on the fresh rock ores.”

Mr Matthew Wood, Executive Chairman also commented, “While the resource update is consistent with

the strong results of our definition and infill drilling programs in the past three years, we are very

pleased to see independent verification of the block model and zone extensions at ATO. I am

particularly pleased to see the results at ATO 4 and the Mungu discovery and the high percentage of

resources in the M&I category. The resource interpretations also show further potential zone

extensions, for which there are numerous targets. We plan to ramp up the exploration program in 2021,

with the aim of unlocking additional value on the ATO property with an internal target of 3 ‐ 5 M oz

across our licences.”

MINERAL RESOURCE UPDATE

The updated mineral resource estimate includes drill data as of December 2020. It includes 55 drill holes

for a total of 18,200m drilled in 2020. A total of 53,000m has been drilled since 2018. The drilling

information was used to update the interpretation of the geologic model, geometry of the mineralized

zones and domains resulting in a higher degree of confidence in the resource estimate.

Table 1: ATO ‐ Preliminary 43‐101

Classified Resources by Oxidation

surface level

CLASS BY Deposit Cut‐off SG Tonnes Au Ag Pb Zn Au

metal

AuEq

metal

OXIDATION

LEVEL

AuEq(g/t) (kg/m3) (M t) (g/t) (g/t) (%) (%) (g/t) (k oz) (k oz) (k oz)

MEASURED

Oxide 1 0.15 2.46 2.62 1.22 9.34 0.59 0.33 1.70 103 786 143

(above

OX_SF)

2 0.15 2.46 1.13 0.46 3.58 0.40 0.33 0.79 17 130 29

4 0.15 2.46 0.72 0.99 20.49 0.17 0.28 1.46 23 471 34

Mungu 0.15 2.46 0.32 0.66 25.21 1.01 7 258 10

TOTAL 0.15 2.46 4.78 0.97 10.71 0.44 0.30 1.40 149 1,645 216

Transition 1 0.40 2.59 3.43 1.45 6.46 0.72 1.16 2.31 160 712 255

2 0.40 2.59 0.42 0.33 4.07 0.64 1.40 1.25 4 55 17

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(between

OX/TR_SF)

4 0.40 2.59 2.45 1.41 17.24 0.21 0.39 1.90 111 1,356 149

Mungu 0.40 2.59 0.35 0.69 39.49 0.01 1.25 8 448 14

TOTAL 0.40 2.59 6.65 1.32 12.03 0.49 0.83 2.04 283 2,570 435

Fresh 1 0.40 2.64 3.76 0.78 5.25 0.75 1.52 1.80 94 635 218

(below

TR_SF)

2 0.40 2.64 0.11 0.42 5.64 1.07 2.73 2.12 2 21 8

4 0.40 2.64 4.36 1.32 8.53 0.36 0.63 1.85 185 1,197 260

Mungu 0.40 2.64 4.27 1.41 45.16 0.01 0.03 2.06 194 6,206 283

TOTAL 0.40 2.64 12.52 1.18 20.03 0.36 0.71 1.91 475 8,058 768

MEASURED TOTAL 23.94 1.18 15.95 0.41 0.66 1.84 907 12,274 1,419

INDICATED

Oxide 1 0.15 2.46 1.11 0.84 8.80 0.50 0.25 1.25 30 314 45

(above

OX_SF)

2 0.15 2.46 1.03 0.44 3.55 0.33 0.26 0.72 15 118 24

4 0.15 2.46 0.90 0.85 20.28 0.13 0.22 1.28 25 587 37

Mungu 0.15 2.46 0.20 0.43 15.30 0.65 3 99 4

TOTAL 0.15 2.46 3.24 0.69 10.72 0.31 0.23 1.05 72 1,118 110

Transition 1 0.40 2.59 1.34 1.04 5.96 0.64 1.08 1.83 45 256 79

(between

OX/TR_SF)

2 0.40 2.59 0.31 0.44 4.67 0.64 1.35 1.34 4 46 13

4 0.40 2.59 1.94 1.26 21.78 0.13 0.29 1.74 79 1,359 109

Mungu 0.40 2.59 0.09 0.55 24.55 0.01 0.90 2 75 3

TOTAL 0.40 2.59 3.68 1.09 14.67 0.35 0.66 1.72 129 1,737 203

Fresh 1 0.40 2.64 2.96 0.66 4.54 0.69 1.44 1.62 63 433 154

(below

TR_SF)

2 0.40 2.64 0.15 0.54 5.96 1.14 2.98 2.38 3 29 11

4 0.40 2.64 5.31 0.86 12.06 0.27 0.49 1.35 147 2,060 231

Mungu 0.40 2.64 2.33 0.93 37.85 0.01 0.03 1.47 70 2,830 110

TOTAL 0.40 2.64 10.75 0.82 15.48 0.34 0.69 1.46 282 5,351 506

INDICATED TOTAL 17.68 0.85 14.44 0.34 0.60 1.44 483 8,206 819

MEASURED

INDICATED

Oxide TOTAL 0.15 2.46 8.02 0.86 10.72 0.39 0.27 1.26 221 2,763 325

Transition TOTAL 0.40 2.59 10.33 1.24 12.97 0.44 0.77 1.92 412 4,307 638

Fresh TOTAL 0.40 2.64 23.27 1.01 17.93 0.35 0.70 1.70 757 13,409 1,274

MEAS + IND TOTAL 41.62 1.04 15.31 0.38 0.63 1.67 1,390 20,479 2,238

INFERRED

Oxide 1 0.15 2.46 0.16 0.45 6.10 0.28 0.22 0.73 2 32 4

(above

OX_SF)

2 0.15 2.46 0.26 0.28 3.26 0.21 0.24 0.51 2 27 4

4 0.15 2.46 0.21 0.73 10.83 0.10 0.16 0.99 5 74 7

Mungu 0.15 2.46 0.07 0.37 9.41 0.50 1 22 1

TOTAL 0.15 2.46 0.71 0.46 6.83 0.17 0.19 0.70 11 155 16

Transition 1 0.40 2.59 0.11 1.16 6.49 0.63 1.24 2.03 4 23 7

(between

OX/TR_SF)

2 0.40 2.59 0.10 0.39 8.12 1.17 2.21 1.91 1 26 6

4 0.40 2.59 0.07 0.66 16.15 0.08 0.23 1.02 1 36 2

Mungu 0.40 2.59 0.05 0.45 14.84 0.01 0.66 1 25 1

TOTAL 0.40 2.59 0.33 0.71 10.34 0.58 1.12 1.56 8 110 17

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Fresh 1 0.40 2.64 0.88 0.44 3.88 0.58 1.36 1.32 12 109 37

(below

TR_SF)

2 0.40 2.64 0.10 0.17 9.45 1.45 3.27 2.29 1 31 8

4 0.40 2.64 2.01 0.59 15.30 0.20 0.37 1.04 38 989 67

Mungu 0.40 2.64 1.59 0.85 26.11 0.01 0.02 1.23 44 1,339 63

TOTAL 0.40 2.64 4.58 0.64 16.75 0.23 0.50 1.19 95 2,468 175

INFERRED TOTAL 5.62 0.62 15.13 0.25 0.50 1.15 113 2,732 208

Notes for ATO Property Resource Estimate, February 22, 2021.

(1) The mineral resource estimate follows CIM definitions and guidelines for mineral resources

(2) Results are presented in situ and undiluted and considered to have reasonable prospects for

economic extraction.

(3) Mineral Resources that are not Mineral Reserves have not demonstrated economic viability.

(4) Contained gold estimates have not been adjusted for metallurgical recoveries.

(5) Mineral Resources are estimated using a 0.15 g/t Au Eq cut‐off grade for oxide material and a 0.4

g/t Au Eq cut‐off grade for fresh material.

(6) A conversion factor of 31.103477 grams per ounce 453.59237 grams per pound are used in the

mineral resource estimates

(7) Au Eq has been calculated using metal prices ($1,880/oz for gold, $26/oz for silver)

(8) The QP is not aware of any known environmental, permitting, legal, title‐related, taxation, socio‐

political or marketing issues, or any other relevant issue not reported in this release that could

materially affect the mineral resource estimate.

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Map 1: it is looking 350 and down 10. Pipe 1 red, Pipe 2 green, Pipe 4 cyan, Mungu to right

multicolours. Blue coordinate grid 100 m spacing. Topo contoured at 2 m intervals grey, 10 m red.

Map 2: E/W cross‐section at 5,367,000 N. Pipes 2 (left) and 4 (right). Coloured on Au_Eq grades. Topo

green line, oxidation base black, transition base red. Coordinate grid at 50 m spacing. Holes projected

15 m either side of section.

Map 3: Same section with resource classes. Measured orange, Indicated yellow, Inferred blue.

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Map 4: E/W cross‐section 5,367,627 N through Mungu.

Map 5: Same Mungu section with resource classes

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QUALIFIED PERSONS AND TECHNICAL INFORMATION

The updated block model mineral resource estimate was prepared by Robin Rankin MSc DIC MAusIMM

(CP) and a "Qualified Person" as defined in NI‐43‐101 and is considered to be “independent” of Steppe

Gold for purposes of NI‐43‐101.

The full technical report, which is being prepared in accordance with National Instrument 43‐101 ‐

Standards of Disclosure for Mineral Projects (“NI‐43‐101”), will be available on SEDAR (www.sedar.com)

under the Company’s issuer profile within 45 days from this news release. The effective date of the

current mineral resource estimate is February 22, 2021.

The technical and geoscientific content of this release has been compiled, reviewed and approved by

Enkhtuvshin Khishigsuren, Vice President of Exploration Company and a "Qualified Person" as defined in

NI‐43‐101.

COVID‐19

The health and safety of our employees, contractors, vendors, and consultants is the Company’s top

priority. In response to the COVID‐19 outbreak, Steppe Gold has adopted all public health guidelines

regarding safety measures and protocols at all of its mine operations and corporate offices. In addition,

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our internal COVID‐19 Taskforce continues to monitor developments and implement policies and

programs intended to protect those who are engaged in business with the Company.

Through care and planning, to date the Company has successfully maintained operations, however there

can be no assurance that this will continue despite our best efforts. Future conditions may warrant

reduced or suspended production activities which could negatively impact our ability to maintain

projected timelines and objectives. Consequently, the Company’s actual future production and

production guidance is subject to higher levels of risk than usual. We are continuing to closely monitor

the situation and will provide updates as they become available.

About Steppe Gold

Steppe Gold is Mongolia’s premier precious metals company.

For Further information, please contact:

Bataa Tumur‐Ochir, CEO and President

Shangri‐La office, Suite 1201, Olympic Street

19A, Sukhbaatar District 1,

Ulaanbaatar 14241, Mongolia

Tel: +976 7732 1914

Cautionary Statements Regarding Estimates of Mineral Resources

This news release uses the terms measured, indicated and inferred resources as a relative measure of

the level of confidence in the resource estimate. Readers are cautioned that mineral resources are not

economic mineral reserves and that the economic viability of resources that are not mineral reserves

has not been demonstrated. The estimate of mineral resources may be materially affected by geology,

environmental, permitting, legal, title, socio‐political, marketing or other relevant issues. It cannot be

assumed that all or any part of an inferred mineral resource will ever be upgraded to an indicated or

measured mineral resource category. The mineral resource estimate is classified in accordance with the

Canadian Institute of Mining, Metallurgy and Petroleum’s “CIM Definition Standards on Mineral

Resources and Mineral Reserves” incorporated by reference into NI 43‐101. Under Canadian rules,

estimates of inferred mineral resources may not form the basis of feasibility or pre‐feasibility studies or

economic studies except for Preliminary Assessment as defined under NI 43‐101. Readers are cautioned

not to assume that further work on the stated resources will lead to mineral reserves that can be mined

economically.

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