First Mining Gold Continue to Advance Projects as Industry Seeks New Assets

• First Mining Gold is advancing two of the largest undeveloped gold projects in Canada: Springpole in Ontario and Duparquet in Quebec
• Springpole is one of the most advanced gold projects in the permitting process in Canada, expecting federal approval by end of 2025
• Advanced stage gold projects (5M+ oz) in Canada have sold for $500M+ in recent years, implying significant upside for First Mining
• First Mining has been able to raise over $60M in last 5 years through non-dilutive means to minimize shareholder dilution
• CEO Dan Wilton believes major gold producers will increasingly need to acquire development-stage projects like First Mining's to replenish reserves

As the price of gold continues its ascent amidst macroeconomic uncertainty, astute investors are searching for opportunities to gain leveraged exposure to the rising gold price. While investing in gold producers is one avenue, another potentially more lucrative option is taking positions in advanced development-stage gold companies - those with large, well-defined projects nearing the construction phase.'

An Increasingly Scarce Commodity 

Over the past decade, the gold mining industry in Canada has seen an unprecedented number of large development projects advance into production. Six major gold mines have been built in recent years, with a seventh - Osisko's Windfall project - moving into construction.

However, the project cupboard is becoming increasingly bare. Very few development-stage gold projects boast resources of over 5 million ounces, which has become the unofficial threshold for "world-class" gold projects that can support profitable large-scale mining. As these scarce development assets move into production, major gold producers are finding fewer and fewer options to replenish their project pipelines.

Rising Valuations 

This growing scarcity, combined with a rising gold price, has been a boon for the valuations of advanced gold projects. In recent years, projects containing more than 5 million ounces of gold in Canada have routinely sold for $500 million or more - even before securing final permits and approvals.

Notable examples include Pretium Resources' Brucejack mine in British Columbia, which was acquired by Newcrest Mining in 2022 for $2.8 billion, and the Detour Lake mine in Ontario, purchased by Kirkland Lake Gold for $4.9 billion in 2020. More recently, Gold Fields acquired Osisko Mining and its Canadian Windfall Project in Quebec for $1.39B and Agnico Eagle has successfully completed its takeover bid for O3 Mining, acquiring 95.6% of the outstanding common shares at $1.67 per share in cash.

Interview with Chief Executive Officer, Dan Wilton

Permitting: The Critical Path 

For development-stage projects, the key to unlocking value is successfully navigating the complex and lengthy permitting process. In Canada, this involves extensive consultation with indigenous communities, in-depth environmental assessments, and close coordination with provincial and federal regulatory agencies.

Projects that can successfully secure their environmental assessment approvals and major permits have seen substantial re-ratings as the uncertainty and risk around their advancement is greatly reduced. A prime example is Perpetua Resources' Stibnite Gold project in Idaho, USA, which has seen its valuation increase fivefold over the past 18 months as it moves through the final stages of permitting.

According to First Mining Gold CEO Dan Wilton, very few gold projects are likely to emerge from the multi-year Canadian permitting process by 2030:

"There's maybe three projects on this list that could get an approval and permits to be able to put a shovel in the ground before 2030 and Springpole is certainly one of them."

The First Mining Opportunity 

First Mining Gold (TSX: FF), a company that currently has two of the largest gold development projects in Canada, both of which are well-advanced in the permitting process:

• Spring pole Gold Project: Located in Ontario, Spring pole hosts a resource of over 5 million ounces and is in the final 8-12 months of the federal Environmental Assessment process. The company expects to receive its federal EA approval by the end of 2025.
• Duparquet Gold Project: Situated in the prolific Abitibi gold belt of Quebec, Duparquet also contains more than 5 million gold ounces. An environmental impact study for the project is underway.

This dual-asset portfolio makes First Mining unique among its development-stage peers and provides multiple avenues for value creation. CEO Dan Wilton articulated the opportunity:

"Advanced stage projects usually with permits, have tended to sell for $100 to $200 an ounce... De Grey Mining just sold for $3.5 billion, again in excess of $200 an ounce for a project that didn't yet have its full permits... we've always said, getting these projects ready for when this industry is going to need them the most - that time is here."

Despite the advanced stage and impressive scale of its projects, First Mining's market valuation sits at just C$150 million - a small fraction of the $500 million to multi-billion dollar valuations seen by other 5M+ ounce projects in recent transactions. This implies the potential for significant upside as First Mining delivers on its permitting and de-risking initiatives in the months ahead.

Capital Efficiency 

One of the key risks for development-stage companies is excessive dilution as they raise the large sums of capital required to advance their projects. First Mining has been able to mitigate this risk by pursing non-dilutive forms of financing.

Over the past five years, the company has raised over $60 million by selling non-core assets, creating royalties, bringing in partners, and other creative corporate initiatives. This has allowed First Mining to minimize shareholder dilution while still moving its key projects forward.

As First Mining's projects move into the final stages of permitting, access to capital from strategic investors looking to secure scarce development assets should improve, further reducing financing risk.

The Investment Thesis for First Mining Gold

• Exposure to two of Canada's largest gold development projects with over 10M oz combined - Spring pole (ON) and Duparquet (QC)
• $500M+ transaction values on 5M+ oz Canadian gold projects implies multi-bagger potential from First Mining's C$150M market cap
• Spring pole expected to receive federal EA approval by end of 2025, key de-risking catalyst
• Over $60M raised via non-dilutive means in past 5 years, minimizing shareholder dilution
• Rising gold price provides strong macro tailwind for advanced gold developers like First Mining

The investment environment for advanced gold development projects is being shaped by two key macro forces: rising gold prices and depleting reserves at major gold producers.

On the gold price front, persistent economic uncertainty, historically high inflation, and growing geopolitical risks have reignited interest in gold as a safe haven asset and inflation hedge. Central banks have been net buyers of gold for consecutive years, with China recently emerging as a major purchaser. Investment demand for gold ETFs surged to an all-time high. This strong fundamental backdrop has propelled the gold price to all-time highs around $2800/oz, with many analysts calling for further upside.

As the gold price rises, major producers are increasingly looking to secure their next generation of gold mines. However, a decade of underinvestment in exploration and development has left the project cupboard relatively bare. The average grade of projects has also declined sharply, making them less economically attractive.

This macro backdrop of rising gold prices and declining project inventory has created a fertile environment for advanced gold developers. As First Mining Gold CEO Dan Wilton sums it up:

"It's an inevitability that major gold producers are going to have to acquire development-stage projects. If you look at a lot of the mid-tier producers in Canada, they might have two mines with less than 5 years of reserve life. They're making so much money right now...that's the capital that's ultimately going to advance the development projects."