First Mining Gold's Duparquet Project in Quebec Returns Robust PEA Results

About First Mining Gold

First Mining Gold Corp. is a Canadian gold developer focused on advancing its two flagship assets, the Springpole Project in northwestern Ontario and the Duparquet Project in Quebec. The company was founded in 2015 by mining veteran Keith Neumeyer with the goal of creating value for shareholders by advancing a portfolio of high-quality gold assets in mining-friendly jurisdictions.

Positive Preliminary Economics Support Duparquet as a Major Development Opportunity

On September 7, 2023, First Mining announced the results of a preliminary economic assessment (PEA) for the company's 100% owned Duparquet Gold Project located on the prolific Destor-Porcupine Fault Zone in the Abitibi region of Quebec.

The PEA outlines an 11-year combined open pit and underground mining operation producing an average of 233,000 ounces of gold per year over the life-of-mine (LOM) at all-in sustaining costs of US$976/oz.

Key results from the PEA include:

• After-tax NPV5% of C$588 million and IRR of 18.0% at base case gold price of US$1,800/oz
• LOM recovered gold production of 2.5 million ounces with average mill head grade of 1.51 g/t
• Initial capital expenditure of C$706 million with after-tax payback of 4.8 years
• LOM average cash costs of US$751/oz and AISC of US$976/oz
• Measured & Indicated resources of 3.44 million ounces grading 1.55 g/t Au
• Inferred resources of 2.68 million ounces grading 1.68 g/t Au

The positive economics and long projected mine life reflect Duparquet's potential to be a core asset in First Mining's portfolio. The projected production profile would also position Duparquet among the largest gold mines in Canada.

Duparquet currently hosts over 6 million ounces of gold resources and exploration potential along an additional 10 kilometres of strike length on the property. This significant resource base provides options for potential mine life extensions.

Advancing a Brownfield Project with a Focus on Partnership

The Duparquet Project covers a past producing mining area located adjacent to the town of Duparquet, Quebec. The project hosts extensive existing infrastructure from historical mining operations.

Leveraging this brownfield site represents an opportunity to revitalize the area while also addressing legacy environmental issues. The PEA incorporates plans to remove and reprocess over 4 million tonnes of historical tailings as part of the LOM production schedule.

First Mining has emphasized the importance of developing Duparquet in partnership with local communities and First Nations. Since acquiring the project in 2022, the company has focused on transparent consultation and collecting input to optimize plans.

The Duparquet area has a long mining history and the industry continues to be a major employer in the region. Restarting responsible resource development would bring employment and economic benefits to the town and surrounding communities.

Robust Metallurgy Supports Simple and Proven Flowsheet

Metallurgical testing indicates the Duparquet mineralization can deliver high gold recoveries using conventional flotation concentration methods. Test work completed to date shows average LOM recoveries of 89.5% can be achieved.

The PEA bases the process design on a straightforward flowsheet including crushing, grinding, flotation concentration, concentrate dewatering and loadout. This well-established processing method benefits from lower technical risk.

While positive recoveries have been demonstrated, First Mining believes there is an opportunity to optimize the metallurgical performance through additional test work. Enhancing gold recoveries and concentrate grades could further improve project economics.

Infrastructure Leverages Existing Regional Facilities

Critical infrastructure such as access roads and power supply already exist in close proximity to the project site. This provides a cost and risk reduction benefit compared to building a remote undeveloped project.

The PEA outlines connecting to Quebec's extensive power grid via a 15 km transmission line. Fresh water required for operations would be sourced from the nearby Chicobi River.

The project's location also allows concentrating facilities to be located close to the town of Duparquet. This avoids the added cost of building an on-site camp. Leveraging existing community infrastructure optimizes the development.

Opportunity to Unlock Further Value Through Resource Growth

While the PEA only considers the current Duparquet deposit resource, First Mining's consolidated land package includes additional deposits at Pitt Gold and Duquesne. These assets contain over 1 million ounces of inferred resources that could be incorporated into future project plans.

The company also sees exploration upside along the highly prospective Destor-Porcupine Fault Zone which transects the property over 19 km of strike length. First Mining has commenced drilling regional targets and this work represents a potential path to unlock the full value of this strategic consolidated land position.

Conclusion

The PEA results outline a long-life project capable of producing over 200,000 ounces of gold per year from the Duparquet deposit. The study supports the project's potential to be a low-cost, economically robust operation.

Equally important, Duparquet benefits from its strategic location in a proven mining district. The project checks all the boxes in terms of proximity to infrastructure, skilled labour and suppliers.

For First Mining, advancing Duparquet provides a clear path to transition from developer to producer. The project's scale, economics and jurisdiction align with the company's strategy of unlocking value from high-quality assets in mining-friendly districts.

With a seasoned management team and strong operational partners, First Mining is positioned to optimize and de-risk Duparquet as the project moves forward. The Company will maintain its focus on engaging with stakeholders and rigorous environmental stewardship.

For investors, Duparquet offers an attractive risk-reward proposition. Successful resource development could re-rate the stock given the robust economics outlined. Furthermore, the project has both regional exploration upside and potential synergies with First Mining's broader portfolio.

The positive PEA for Duparquet highlights a key asset for First Mining as the company progresses its strategy of developing high-quality, de-risked gold projects. Investors have reason to be optimistic about the potential value growth ahead as Duparquet and the broader portfolio advance towards production.