Advanced Gold Assets and Exploration Upside Offering Leveraged Exposure to New Gold Bull Market

Investor Summary

First Mining Gold is advancing two major gold projects in Canada – the Springpole Gold Project in northwestern Ontario and the recently acquired Duparquet Gold Project in Quebec. Together these assets contain over 10 million ounces of gold in the Measured and Indicated resource categories. With experienced leadership, funding to advance development, and exploration upside, First Mining offers attractive leverage to rising gold prices with its portfolio of large, advanced-stage projects in top-tier mining jurisdictions.

Springpole’s Environmental Impact Statement is on track for submission in 2024 and the project could potentially enter production by 2028, becoming one of Canada’s largest gold mines at over 300,000 ounces per year. The fundamental NPV of the project is estimated at over $1 billion at $1,600 gold prices.

Duparquet hosts a multi-million ounce resource amenable to both open pit and underground mining. Recent drilling has successfully confirmed and extended gold mineralization, with lots of untested exploration potential remaining across this highly prospective property.

First Mining has multiple value-enhancing catalysts upcoming, including exploration results, project milestones, and potential strategic partnerships. The company is undervalued compared to peer gold developers. With gold potentially entering a new bull market, First Mining offers excellent appreciation potential.

Expanded Discussion & Detail

Springpole Gold Project – Flagship Asset Advancing Towards Production

The cornerstone asset in First Mining’s portfolio is the Springpole Gold Project, located approximately 110 kilometers northeast of Red Lake in northwestern Ontario. Springpole is one of the largest undeveloped gold projects in Canada, with an estimated mineral resource of 139.1 million tonnes at 1.04 g/t gold and 5.4 g/t silver in the Measured and Indicated categories containing 4.67 million ounces of gold and 24.19 million ounces of silver.

In the company’s 2022 annual results, First Mining reported that Springpole’s Proven and Probable Reserves increased 4% year-over-year to 3.8 million ounces of gold and 20.5 million ounces of silver. The project stands out for its significant production potential, with an open pit mine capable of producing over 300,000 ounces of gold per year over an initial 12-year mine life. At a base case $1,600 per ounce gold price, the After-Tax NPV of the project is estimated at US$1.163 billion with a 36% IRR according to a 2021 Preliminary Economic Assessment.

Springpole is well advanced in the permitting process. In June 2022, First Mining submitted a revised Environmental Impact Statement (EIS) based on feedback received from provincial regulators and Indigenous communities. The company remains on track to submit the final EIS in 2024 and currently has over 50 personnel focused on the environmental assessment and permitting processes. The federal and provincial governments are supportive of projects like Springpole that can bring jobs and economic growth to underdeveloped regions.

While Springpole itself hosts substantial resources for a potential multi-decade mining operation, First Mining also acquired mineral rights covering over 260 square kilometers of the highly prospective ground around the deposit. This gives the company significant exploration upside to delineate new discoveries and grow resources near the project area. For example, drilling at the Birch-Uchi Greenstone Belt intersected wide zones of gold mineralization at the Saddle and Horseshoe targets near Springpole. More results are pending. Demonstrating this broader district-scale potential is key.

Duparquet Gold Project – Near-Term Resource Expansion Opportunity

In October 2021, First Mining closed the acquisition of the Duparquet Gold Project, located on the Destor-Porcupine Fault in the prolific Abitibi region of Quebec. This added another advanced stage, multi-million-ounce gold asset to the company’s portfolio in a top-tier mining jurisdiction.

Duparquet’s current Measured and Indicated Resource totals 5.45 million tonnes at 1.52 g/t gold containing 265,000 ounces of gold in the open pit category. Underground resources add a further 1.22 million tonnes at 5.42 g/t gold containing 213,000 ounces. Several satellite deposits and past-producing mines in the area offer further near-surface potential. Duparquet has historically produced over 1.2 million ounces of gold.

First Mining believes there is strong resource expansion and exploration upside at Duparquet. The project carries an existing mining concession and tailings permit that could allow for accelerated development timelines. Recent drilling has successfully extended mineralization outside of the current pit shells, highlighting the growth potential remaining here.

For example, hole D-22-01 encountered 1.31 g/t gold over 15.3 metres and 1.40 g/t over 9.0 m outside the Duquesne pit area. Hole D-22-03 intersected 1.33 g/t over 16.5 m outside the current Duparquet pit shell. Assay results from an additional 3,700 metres drilled at Duparquet in 2022 are pending. This program also targeted several other prospective satellite targets.

First Mining is planning extensive exploration work at Duparquet in 2023 to follow up on the highly encouraging results received so far. Showing the ability to meaningfully increase resources could significantly enhance the value of this project. With robust infrastructure in place, Duparquet provides optionality for near-term development.

Well Funded to Advance Near-Term Work Programs

As of December 31, 2022, First Mining had cash of approximately $23.1 million and net working capital of $21.5 million. This provides sufficient capital to fund the company’s planned expenditures into 2024.

In June 2023, First Mining closed a $5 million flow-through financing which will help fund exploration work at the Duparquet Gold Project to continue expanding resources. The company also has equity positions in several other public companies that provide additional financial flexibility, including a 14% stake in Treasury Metals currently worth over $25 million based on Treasury's recent share price.

First Mining has no debt, a key strategic advantage within the mining development space. The company can focus expenditures directly on critical path project and exploration activities.

Experienced Leadership to Navigate Mine Development

First Mining has a highly skilled management team with extensive experience successfully building and operating mines around the world.

Chairman Keith Neumeyer previously founded First Majestic Silver and has raised over $1 billion for mining ventures over his 35+ year career. CEO Dan Wilton has over two decades of experience advancing mine development projects. He is supported by a seasoned technical team including COO Steve Lines who led permitting for the Hardrock Mine and CFO Andrew Marshall who has arranged $800+ million in project financing deals.

This knowledgeable leadership group gives investors confidence in First Mining’s capability to navigate technical studies, permitting, construction, and other aspects required to advance Springpole and Duparquet through development. The company also maintains strong government relations and community engagement – critical for earning support to build modern mines in Canada.

First Mining owns one of the largest undeveloped gold assets in Canada underpinned by demonstrated reserves, robust project economics, and significant production scale. The team has clearly defined the path towards production. Backed by a proven board and management, execution risk is minimized.

Portfolio Provides Multiple Value Drivers

In addition to its two flagship assets, First Mining’s portfolio includes a number of other exploration projects and equity holdings with a potential upside:

• The Hope Brook Gold Project in Newfoundland, is currently being advanced in partnership with Big Ridge Gold Corp. Recent drilling has extended mineralization with results including 11.08 g/t gold over 8 metres.
• An approximately $25 million equity position in Treasury Metals which is advancing the Goliath-Goldlund Project towards a construction decision.
• The Cameron Gold Project in Ontario which covers over 50,000 hectares of prospective exploration ground along the southern extension of the Cadillac-Larder Lake Fault zone.
• A silver asset, the Silver Hope Project, which historic drilling suggests could host high-grade silver mineralization.

These earlier-stage properties provide multiple avenues for value creation through exploration success, partnerships, development decision milestones, or strategic divestments. First Mining continues to investigate options to realize value from its non-core assets.

Major Catalysts Upcoming in 2023

First Mining has numerous potential share price catalysts on the horizon in 2023 that could attract greater investor interest:

• Ongoing drill results from the 2023 exploration program at Duparquet
• Initial resource estimate for Duparquet incorporating recent drilling
• Further exploration and drill results from Springpole regional targets
• Submission of the final Environmental Impact Statement for Springpole
• Springpole project milestones – metallurgical test results, feasibility study progress
• Resource updates at the company’s Newfoundland and Ontario projects
• Potential new partnerships or transactions for non-core assets

As First Mining continues to hit meaningful de-risking and value-adding milestones at its projects, the market should start to recognize the company’s strong fundamental upside potential compared to peer gold developers.

Attractive Takeover Target as Majors Look to Reposition

First Mining’s stock could also get a significant boost from renewal of M&A activity as mid-tier and major gold producers seek to replenish their project pipelines.

Many mining companies focused on shareholder returns and strengthening balance sheets following the last gold bull cycle rather than investing in exploration and project development drilling. As existing mines deplete reserves, there is a growing need to acquire new assets. This is especially true for the large gold producers looking to replace their legacy assets and sustain production.

Springpole and Duparquet are two of the most prominent pre-construction stage gold projects in Canada with resources, infrastructure, and economics capable of supporting potential acquirers’ needs. The infrastructure in the region also provides scope for organic growth through satellite deposits and regional consolidation.

First Mining’s strong leverage to an increasing gold price further enhances the attractiveness of the company’s portfolio. At current valuations, the projects likely can be acquired at a substantial discount to their fundamental NPV value. Majors have substantial balance sheet capacity and access to capital to fund construction.

For example, Agnico Eagle recently acquired Kirkland Lake Gold in an all-share merger that valued Kirkland’s lower grade, higher-cost assets at over $530 per ounce. First Mining currently trades at under $25/oz compared to acquisition ranges of $500-1,000/oz seen in recent producer M&A. This sizable valuation disconnect highlights the potential upside when construction-ready gold assets are in demand.

Poised to Outperform in a Rising Gold Market

With macroeconomic trends now firmly positive for gold following years of headwinds, First Mining is poised for outsized returns as sentiment improves towards pre-production gold companies. Its advanced assets have substantial leverage to increasing gold prices. Every $100/oz increase at Springpole equates to $150 million in incremental project value.

Once gold embarks on its next sustained upswing, funding will return to developers to advance the next generation of mines. First Mining’s portfolio of Canadian gold projects positions the company as one of the foremost opportunities available in this space.

Conclusion

With de-risked, funded, advanced-stage gold projects in mining-friendly jurisdictions and significant leverage to rising gold prices, First Mining offers one of the purest exposures available to a burgeoning new gold bull market. The company’s shares currently trade at a substantial discount to the inherent value of its portfolio centered around Springpole and Duparquet. Near-term catalysts through exploration, development milestones, and potential strategic transactions provide avenues for the market to realize this fundamental upside. For investors betting on higher gold prices, First Mining warrants serious consideration.