A Copper-Gold Development Poised for Production

• Secured a $700 million US debt package backed by export credit agencies and led by Societe Generale (SOCGEN), KfW IPEX-Bank, and Export Development Canada (EDC)
• Positioned as the only near-term copper concentrate producer in Eastern Canada, attracting smelter partnerships amid global supply constraints
• Operating at a previously producing mine site with 14 years of historical production, minimizing technical risk
• 25% of workforce from Cree Nation with multiple joint venture agreements already in place
• Targeting construction by early 2027 with permitting expected by mid-2026 and early works already underway

Troilus Gold's Recent Drill Results

Troilus Gold is developing a large copper-gold asset in central Quebec, Canada - a project that represents a rare opportunity as a previously producing mine with significant expansion potential. The company recently announced impressive drill results showing 2.44% copper equivalent over 56 meters, highlighting the project's high-grade potential.

CEO Justin Reid clarifies that while these results don't fundamentally change the overall project, they significantly enhance confidence:

"The JN87 zones, which were historically produced and operated, were drilled at 65 meters spacings. The southwest, where these results came from, is a brand new deposit. And it's a brand new deposit that's going into production first. So we decided to de-risk it even further by drilling it off at 30 meter spacings."

This increased drilling density has revealed that "the higher grade is larger than we thought, and the impact is the first one to five years of mining," according to Reid. This matters substantially to investors and lenders alike, as Reid notes, "When you're putting the amount of debt that we are onto this project, our lenders and our shareholders want certainty of cash flow. And what this does, it just gives us higher certainty."

The recent drilling won't necessitate any major design changes to the mine plan, but will allow for some optimization in the sequencing, particularly in the early years of production where higher grades can significantly impact project economics and payback periods.

Interview with President & CEO, Justin Reid

Financing & Debt Structure Overview

Perhaps the most significant development for Troilus Gold - and what truly separates it from other junior miners in the development phase - is the company's breakthrough in securing project financing. The company has announced a $700 million US syndicated debt package, led by international financial institutions including SOCGEN, KfW, and Export Development Canada (EDC).

This financing represents a critical mass of capital that significantly de-risks the project's path to production. As Reid describes:

"There is probably 55, 60 people working on this. KfW is leading all of our environmental and social equator principle due diligence. SOCGEN through SLR is leading all of our technical due dilligence, EDC is taking care of the documentation."

The debt package is currently undergoing due diligence, with Reid estimating they're approximately halfway through the process. The company anticipates significant progress in the coming weeks as site visits increase now that winter conditions have subsided.

What makes this debt package particularly attractive is its structure as sovereign debt backed by export credit agencies, which provides both favorable terms and substantial flexibility. While specific terms weren't disclosed, Reid indicated the interest rate is "well less than 10%" - considerably more attractive than typical financing available to junior mining companies.

Offtake Agreements & Market Dynamics

A crucial component of Troilus Gold's financing strategy centers on offtake agreements with European smelters. These off-take agreements are backed by export credit agencies from the respective countries where the smelters operate, creating a powerful alignment of interests that has enabled the innovative financing structure.

Reid explains:

"We're dealing with the export credit agencies which their capital is backing off-take agreements with the smelters through Boliden and Aurubis in Germany, Sweden and Finland are critical path. Negotiations are going very well and we hope to have completion in the next three to four weeks."

These off-take agreements are expected to be a major catalyst for the stock.

The company is working with Ocean Partners from London as advisors on the concentrate trade market. What makes Troilus particularly attractive to smelters is the global shortage of copper concentrate, especially following the closure of major mines like Cobre Panama, the world's sixth-largest copper producer.

This market dynamic creates significant flexibility in structuring the offtake agreements. As Reid notes:

"If we sign an eight-year off-take agreement with Aurubis or Boliden or whichever refiner, we can amortize that capital for eight years. If we sign a 15-year deal, we can amortize it for 15 years. So financially within the model, it gives us a huge amount of flexibility."

Beyond favorable financial terms, the export credit agency backing provides important structural protection:

"If you hit a hurdle or a delay during commissioning, which all mines do, unlike other lenders, you do not see export credit agencies send their workout team to your office on day one saying, we have to reprice this deal, or we are taking your asset."

This patient capital approach significantly reduces refinancing risk during the critical commissioning phase.

Project Development & Environmental Considerations

Troilus is advancing through the permitting process, working within Quebec's regulatory framework that involves reviews from the federal government, the Cree Nation, and the provincial authorities. The company expects to file its Social Impact Assessment (SIA) within the next 5-6 weeks, which will start the formal clock on the permitting timeline.

Under the current timeline, Troilus anticipates receiving full permits by mid-2026, allowing construction to begin by late 2026 or early 2027. However, Reid notes encouraging signs from government that this timeline could potentially be accelerated:

"There's been a lot of commentary, rhetoric - use the term you want - from all the political parties in Canada about expediting the timeline to production for industrial complexes that have impact, of which we're one. And we're seeing incredibly positive engagements from both the federal government, the opposition, and at the provincial level as well."

Importantly, Troilus isn't waiting for final permits to advance the project. The company is already undertaking significant early works under existing exploration permits, including moving waste piles that will provide access to areas targeted for bulk sampling.

"These are all things that are in the actual CapEx that we will do now. They're being permitted under exploration permits because we're allowed to. We have an existing mining lease that we are amending as part of this system."

This approach allows Troilus to de-risk the construction timeline while simultaneously reducing future capital expenditures by completing certain works ahead of the main construction phase.

Community Engagement & Local Partnerships

A standout feature of the Troilus project is its strong relationship with the Cree Nation, whose traditional territory hosts the mine site. This relationship isn't new - it builds on a 14-year history of successful operation and collaboration during the mine's previous life.

Reid emphasizes:

"The Cree have always been supportive... Our impact benefit agreement, the first one signed out of the James Bay Accord was Troilus, when Inmet was operating, and it was 14 years of success, and it was the one from which all others were based and grown on."

The company already has three major contracts with Cree partners, including drilling services, camp and site services, and dewatering operations. Importantly, 25% of Troilus's current workforce is from the Cree Nation, demonstrating a genuine commitment to local employment rather than simply aspirational targets.

As the company works to finalize an updated Impact Benefit Agreement (IBA), Reid notes they're "ahead of the game" given the practical partnership already in place. This established relationship represents a significant de-risking factor in a time when indigenous partnerships are increasingly recognized as essential to successful mine development in Canada.

Engineering & Technical Updates

While the feasibility study represents a snapshot of the project at a specific moment in time, Troilus is advancing the detailed engineering to optimize the design before construction. The company has engaged BBA from Montreal - the same engineering team that designed major Quebec gold mines including Canadian Malartic and Detour Lake.

Reid outlines their approach:

"The first step is to look at a deep review of the feasibility study and look at potential trade-offs. And we identified three major trade-offs, front-end crushing, the leach circuit, and the building sizes."

These optimization efforts are focused on enhancing operational flexibility while maintaining the capital budget. As Reid explains:

"We're going to see very little impact to capital, which is key in this market. Then we're going to see a lot more flexibility and optionality."

A key advantage for Troilus is the relatively low technical risk given the site's previous 14 years of operation.

"Troilus is not a technical risk to our lenders. This mine (previously) operated profitably for 14 years. There is limited technical risk."

This historical production provides valuable data that reduces uncertainty around metallurgy, processing, and geotechnical aspects.

Build Team & Local Employment

Troilus has made significant strides in building its leadership team, bringing on board experienced professionals with direct relevance to the project. Reid highlights two key appointments: "

We brought in as our VP Operations and General Manager Andy Fortin... Andy was at Troilus originally. He built Meadow Bank. He was part of the Éléonore Build team. He has huge Quebec expertise and his team has joined him."

For construction management:

"We brought in Denis Rivard. Denis Rivard was responsible for a lot of the construction of the Quebec aluminum smelters. He built the largest in the world in Mozambique... He just completed, on time and on budget, the REM rail line in Quebec from Montreal to south shore."

This high-caliber team significantly reduces execution risk - traditionally one of the biggest concerns for mining development projects.

Beyond leadership, Troilus is also developing strategies for local employment. The project's location approximately 90 minutes from Chibougamau creates opportunities for workers to return from fly-in/fly-out operations elsewhere.

"We are already seeing a large request or influx of provincial and national labor to come home, which is great. And most of them worked at Troilus originally."

The company is working with local municipalities on programs to attract additional workers, including innovative approaches like mortgage sharing programs. The proximity to Chibougamau also allows for certain administrative functions to be based in town rather than at the mine site, enhancing quality of life for employees.

Market Position & Future Outlook

Troilus Gold has achieved a remarkable transformation over the past two years, evolving from an uncertain development story into a company with a clear path to production. This evolution is reflected in the company's market performance, with the stock showing significant appreciation in 2024.

Reid acknowledges the dramatic shift in perception:

"A couple years ago there were times when you look around and say, man, we've got a great deposit, the engineering's moving forward, we're in the right jurisdiction, but the market's not moving. How are we going to fund this mine as a $70 million company? It's almost impossible. Now we have the team in place and we're sitting at a $250 million company, it becomes a lot easier."

The company's current market capitalization now aligns with historical valuations of other major Quebec gold developments at similar stages, including Canadian Malartic and Detour Lake before they received final permits. This suggests potential for further appreciation as development milestones are achieved.

Reid's confidence is unequivocal when asked if Troilus will get built:

"There's no question it's getting built... There's no question."

With financing largely secured, permitting advancing, and an experienced team in place, the probability of successful development appears higher than at any point in the company's history.

The Investment Thesis for Troilus Gold

• Financing Risk Largely Mitigated: With $700M in debt financing advancing and substantial warrants in-the-money, the capital question that plagues most junior developers has been largely addressed
• Experienced Development Team: Leadership with direct experience at Troilus and other successful Quebec mining projects significantly reduces execution risk
• Copper Exposure with Gold Upside: The project offers investors exposure to both copper and gold markets, with copper fundamentals particularly strong due to global supply constraints
• Quebec Mining Advantage: Operating in a tier-one jurisdiction with established infrastructure, skilled workforce, and a government increasingly focused on expediting critical minerals projects
• Valuation Growth Potential: Currently trading at a significant discount to potential NPV, with multiple near-term catalysts including offtake agreements, permitting milestones, and financing completion

Troilus Gold has undergone a remarkable transformation from exploration company to near-term developer with a clear path to production. Through strategic financing arrangements, strong community partnerships, and the assembly of an experienced development team, the company has systematically addressed the major risk factors that typically challenge mining development projects.

With multiple near-term catalysts on the horizon - including offtake agreement finalization, environmental assessment filing, and continued engineering optimization - Troilus presents an increasingly compelling case for investors seeking exposure to both copper and gold in a stable jurisdiction.

Macro Thematic: Why Copper-Gold Projects Matter Now

The Troilus project represents a compelling opportunity at the intersection of several powerful macroeconomic trends driving the mining sector. First and foremost is the global copper market facing severe supply constraints against rapidly growing demand. The closure of major mines like Cobre Panama removes significant concentrate from an already tight market, while new production faces ever-lengthening timelines from discovery to development.

This supply challenge coincides with unprecedented demand growth driven by electrification trends. Electric vehicles require approximately four times more copper than internal combustion engines, while renewable energy infrastructure is significantly more copper-intensive than traditional power generation. The International Energy Agency estimates copper demand could double by 2040 in a net-zero scenario.

Simultaneously, gold continues to demonstrate strength as monetary uncertainty persists, with central banks accumulating record reserves and investors seeking alternatives to fiat currencies. The combination of copper and gold provides both industrial exposure to electrification themes and monetary hedge characteristics - an increasingly attractive proposition for investors seeking resources exposure.

Quebec adds another dimension to this opportunity, with its stable regulatory environment, clean hydroelectric power enabling lower-carbon production, and a government increasingly recognizing the strategic importance of critical minerals for economic development. The province's renewed focus on expediting permitting for strategic resources projects reduces timeline risk compared to many other jurisdictions.

Against this backdrop, Troilus Gold represents a rare opportunity: a near-term production story in a tier-one jurisdiction with substantial exposure to both copper and gold markets. The company has overcome the financing hurdle that constrains most junior developers through its innovative export credit agency-backed structure, potentially creating a blueprint for other projects to follow.