Eric Sprott Increases Stake in New Found Gold with $20M Investment

• Eric Sprott invested $20 million through a private placement, increasing his ownership from 19.0% to 23.1% and becoming New Found Gold's largest shareholder and control person.
• The Queensway Gold Project spans 175,450 hectares across a 110-kilometer strike extent in Newfoundland and Labrador, with recent drilling continuing to reveal new gold discoveries along strike and down dip of known zones.
• New Found Gold operates in a Tier 1 jurisdiction with excellent infrastructure and skilled local workforce, providing significant operational advantages and reduced development risks compared to less developed regions.
• The company has completed initial Mineral Resource Estimate and Preliminary Economic Assessment at Queensway, establishing foundational technical data while maintaining 100% project ownership for maximum strategic control.
• Management plans to deploy the $20 million in proceeds toward advancing Queensway's key development milestones and positioning the company on the path to production, supported by a new leadership team and clear strategic vision.

Strategic Investment Signals Confidence in Queensway Gold Project Development

New Found Gold Corp. (TSXV: NFG | NYSE-A: NFGC) is a well-financed advanced-stage exploration company maintaining 100% interest in the Queensway Gold Project, strategically positioned in Newfoundland and Labrador. The company operates in a Tier 1 jurisdiction characterized by excellent infrastructure and a skilled local workforce, providing significant operational advantages for mining development. New Found Gold has established a solid foundation with completion of initial Mineral Resource Estimate (MRE) and Preliminary Economic Assessment (PEA) at Queensway, while recent drilling activities continue revealing new discoveries along strike and down dip of known gold zones, demonstrating the district-scale potential of their expansive 175,450-hectare project.

The completion of Eric Sprott's $20 million private placement investment represents a significant milestone for New Found Gold, with the renowned resource investor increasing his ownership position to 23.1% and achieving control person status. This strategic investment provides the company with substantial capital to advance key project milestones while reinforcing market confidence in the Queensway Gold Project's potential.

Eric Sprott's Investment & Market Positioning

Eric Sprott completed a $20 million private placement investment, marking a substantial vote of confidence in New Found Gold's strategic direction. The investment increased his ownership position from approximately 19.0% to 23.1%, establishing him as the company's largest shareholder and achieving control person status.

The investment reflects Sprott's long-term commitment to New Found Gold's development trajectory, with regulatory filings indicating he maintains a long-term investment perspective and may adjust his position based on market conditions and strategic considerations.

This strategic positioning provides the company with access to one of the mining sector's most respected investors and his extensive network within the resource investment community. Sprott's participation follows his involvement in the company's bought deal financing that closed in June 2025, demonstrating consistent support for management's execution strategy.

Financial Structure & Capital Deployment Strategy

The $20 million private placement was structured as a non-brokered transaction, eliminating finder's fees and maximizing capital efficiency for operational deployment. The 12,269,939 common shares issued carry a standard four-month and one-day hold period, expiring December 27, 2025, providing near-term liquidity for the investment.

New Found Gold's capital deployment strategy focuses primarily on advancing the Queensway Gold Project's key development milestones. The gross proceeds will support continued exploration and development activities while maintaining adequate working capital for general corporate purposes. CEO Keith Boyle expressed appreciation for Sprott's continued investment, stating:

"On behalf of the Company, I would like to thank Mr. Sprott for his continued support as New Found Gold's largest shareholder. His participation in both the Private Placement and our bought deal financing that closed in June, 2025 reflects his confidence in the Project, the new leadership team and our strategy going forward."

Boyle emphasized the strategic importance of the funding for project advancement:

"The proceeds from the Private Placement support the advancement of Queensway's key milestones and further position us on the path to production."

This commentary signals management's commitment to systematic project advancement while maintaining clear development objectives, with the leadership team's emphasis on production pathway development indicating strategic planning beyond preliminary exploration phases.

The timing of this investment aligns with New Found Gold's project development timeline, providing necessary capital as the company transitions from initial resource estimation phases toward more advanced development stages. The substantial cash injection enhances the company's financial flexibility while reducing near-term financing risk during critical project development periods.

Queensway Gold Project: District-Scale Potential & Resource Development

The Queensway Gold Project represents New Found Gold's primary asset, encompassing 175,450 hectares across a 110-kilometer strike extent along two prospective fault zones in Newfoundland and Labrador. The project's scale and geological characteristics suggest significant district-scale potential for gold mineralization discovery and development.

Recent exploration activities continue yielding positive results, with drilling programs identifying new discoveries along strike and down dip of established gold zones. These discoveries expand the known mineralization envelope and support the company's thesis regarding the project's extensive resource potential. The completion of initial Mineral Resource Estimate and Preliminary Economic Assessment milestones, as referenced in company releases dated March 24, 2025, and July 21, 2025, provides foundational technical data for ongoing development planning.

The project's location in Newfoundland and Labrador offers substantial operational advantages through established mining infrastructure, experienced local workforce availability, and supportive regulatory environment. These jurisdictional benefits reduce development risks and operational costs compared to projects in less developed or politically unstable regions.

Ongoing exploration programs focus on expanding known mineralization zones while identifying additional targets across the extensive property package. The systematic approach to resource development, supported by robust financing, positions Queensway for continued resource growth and potential development advancement.

Market Positioning & Infrastructure Advantages

New Found Gold's strategic positioning in Newfoundland and Labrador provides significant competitive advantages relative to exploration and development companies operating in less developed jurisdictions. The province's established mining sector, skilled workforce, and supportive regulatory environment reduce operational risks and development costs.

The Tier 1 jurisdiction classification reflects political stability, established legal frameworks, and mining-friendly policies that facilitate project development and operations. These jurisdictional advantages translate to reduced sovereign risk, streamlined permitting processes, and access to experienced local contractors and service providers.

Infrastructure accessibility enhances project economics through reduced transportation costs and readily available utilities, communications, and logistics support. The established mining sector presence provides access to specialized equipment, technical expertise, and financial services necessary for efficient project development.

New Found Gold's 100% project ownership eliminates joint venture complications and provides complete control over development timing, technical decisions, and financial arrangements. This ownership structure maximizes management flexibility while ensuring all project value accrues directly to company shareholders.

Investment Considerations & Market Outlook

The completion of Sprott's $20 million investment occurs within a broader context of gold market dynamics and resource sector investment flows. Sprott's sustained commitment to New Found Gold, demonstrated through multiple financing participations, provides market validation of the company's strategic direction and asset quality.

The substantial cash position resulting from this private placement, combined with previous financing activities, positions New Found Gold to execute development programs without near-term dilutive financing requirements. This financial strength provides operational flexibility during project advancement phases while reducing execution risk for shareholders.

Recent drilling results indicating continued discovery success along strike and down dip of known zones suggest ongoing resource growth potential. The systematic exploration approach, supported by robust financing, creates foundation for sustained project development and potential resource expansion.

Market positioning within the gold exploration and development sector benefits from established institutional investor support, demonstrated through Sprott's significant position and ongoing commitment. This investor base provides potential for additional strategic partnerships and financing opportunities as project development progresses.

For Investors

New Found Gold Corp. presents investors with exposure to a well-financed gold exploration and development company operating in a favorable jurisdiction with substantial resource potential. Eric Sprott's $20 million investment and achievement of control person status provides strong validation of the company's strategic direction while ensuring access to experienced resource sector expertise and networks.

The Queensway Gold Project's district-scale potential, supported by initial resource estimates and ongoing discovery success, positions the company for continued resource growth and development advancement. Management's clear focus on production pathway development, combined with robust financing and jurisdictional advantages, creates foundation for systematic value creation.

Investors considering New Found Gold should evaluate the company's strong financial position, experienced management team, and strategic investor support against the inherent risks associated with mineral exploration and development activities. The combination of substantial resource potential, favorable jurisdiction, and committed institutional backing suggests attractive risk-adjusted returns for investors seeking exposure to gold sector development opportunities.