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STGO.TO ·

TSX Symbol: STGO Total Basic Shares O/S (M): 42.9 MATTHEW WOOD Chairman, President and CEO BATAA TUMUR-OCHIR Director and Vice President Mongolia ANEEL WARAICH Director and Executive Vice President PATRICK MICHAELS Director

Corporate Updates

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TSX Symbol: STGO

Total Basic Shares O/S (M): 42.9

MATTHEW WOOD

Chairman, President and CEO

BATAA TUMUR-OCHIR

Director and Vice President Mongolia

ANEEL WARAICH

Director and Executive Vice President

PATRICK MICHAELS

Director

DR. ZAMBA BATJARGAL

Director

LEWIS MARKS

Director

SHELDON VANDERKOOY

Director

CONTACT INFORMATION

THE COMPANY’S HEAD OFFICE:

Shangri-La office, Suite 1201, Olympic street

19A, Sukhbaatar District 1,

Ulaanbaatar 14241, Mongolia

Tel: +976 7732 1914

TORONTO OFFICE:

90 Adelaide Street. W, Suite 400 Toronto, ON

M5H 3V9,

Canada

Tel: +1 647 697 0577

TRANSFER AGENT:

Lori Winchester

Senior Relationship Manager, Client

Management

Phone: +1 416 607-7898

Cell: +1 416 671-4558

Email: [email protected]

Toronto, ON – Steppe Gold Limited (TSX: STGO) (the “Company” or

“Steppe Gold”) is pleased to announce the progress that has been

made over the last month at Altan Tsagaan Ovoo (“ATO”) Gold Project

in Mongolia.

HIGHLIGHTS

➢ The ATO development is progressing well with the project CAPEX remaining

under budget.

➢ The ATO crushing circuit is nearing construction completion and will be

moving into commissioning in the coming weeks.

➢ Heap leach pad construction is well underway with significant advances made over

the last month.

➢ Major ADR Plant equipment has been delivered to Mongolia with site works and

construction commenced.

➢ Bankable feasibility study for a proposed 150,000oz gold per annum operation on

fresh rock ores is ongoing.

➢ The Stage 3 drilling program on the ATO2 oxide zone has been completed with a

total of 14 drill holes for 752.3 meters.

➢ Infill drilling has now been completed over all known oxide mineralized deposits at

the ATO Project. This includes ATO1, ATO2, ATO3 and Mungu.

➢ SRK has completed a report on the structural aspects and additional targeting of

the ATO Project. This has delivered a number of new targets for immediate and

future drill testing. The first of these targets will be drill tested in the coming

month.

➢ The Stage 3 drilling program targeted at the ATO4-Mungu trend has commenced

with 8 drill holes being completed for 2,228.0 meters of drilling. All drilling rigs are

currently operating on the ATO4 – Mungu trend.

➢ Further visible gold has been seen from drill core on the ATO – Mungu trend.

Drilling results are pending.

DEVELOPMENT

The Company is pushing hard for a completion of site construction by

the end of 2018 with first gold in the first half of 2019. All materials for

the crusher and leach pad have been delivered to site and construction

is now underway.

CAPITALIZATION

BOARD OF DIRECTORS

TSX: STGO

October 31, 2018

TSX: STGO

October 31, 2018

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The ATO crushing circuit is nearing construction completion with final work now underway. The crusher will be

commissioned initially on mined ATO1 ore in the coming weeks. This material will be used as over liner for the

heap leach pads and stacking of the pad should commence over the next month.

Heap leach pad construction is well underway with significant advances being made over the last month. Cell-1

is expected to be completed within the next two weeks and earthwork has now commenced on Cell-2.

Mining camp accommodation and restaurant is fully operational with 106 people on site.

The majority of the ADR plant equipment has been delivered to Mongolia and site works have commenced in

preparation for construction next week.

DRA Global has been appointed and has begun to manage and undertake a bankable feasibility study for the

construction and development expansion of the ATO Gold Project to 150,000oz gold per annum utilizing a CIL

plant for gold and silver production. The study will be based on existing fresh rock ores at ATO1, ATO2 and

ATO4, in addition to the potential being seen at the ATO4 – Mungu trend. This study is ongoing.

A selection of photos has been included below demonstrating activities on site:

Crusher construction

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October 31, 2018

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Crusher construction

Barren & Pregnant Pond excavation

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October 31, 2018

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Barren & Pregnant Pond excavation

Cell 1 Embankment lining

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October 31, 2018

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Cell 1 HDPE lining

Cell 1 HDPE lining

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October 31, 2018

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Cell 1 compaction

Cone Crusher construction

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October 31, 2018

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Greg Wood, VP Operations, Grant Smith, GM Processing and Aruinbat Edenebataar, Senior Mining

Engineer on Cell 1

Cell 1 HDPE Lining continuing

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October 31, 2018

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Cell 1 HDPE lining continuing

ADR Plant topsoil removal