GoGold Resources Reports Steady Progress at Los Ricos South Ahead of Permit Decision

• Mexican underground mining contractor Cominvi, S.A. de C.V. has been selected, with detailed mine design and planning underway
• Processing plant detailed design is 55% complete; the SART plant design is at 70%
• A SAG grinding mill order is expected to be placed within weeks
• A power supply contract has been signed with national utility Comision Federal de Electricidad (CFE), drawing from the Yesca hydroelectric dam
• GoGold holds approximately $250 million USD in cash, supplemented by ongoing cash flow from its Parral Tailings operation

GoGold Resources Inc. (TSX: GGD | OTCQX: GLGDF) is a Halifax, Nova Scotia-based Canadian precious metals company that operates and develops silver and gold projects in Mexico. The company generates cash flow from its Parral Tailings mine in the state of Chihuahua and is advancing two development-stage assets, Los Ricos South and Los Ricos North, both located in the state of Jalisco. GoGold's stated focus is building a portfolio of low-cost, high-margin projects.

Underground Mining Contractor Appointed as Los Ricos South Moves into Execution

GoGold has formally entered the execution phase of the Los Ricos South Project, launching detailed design activities and beginning the placement of orders for long-lead items. Mexican underground mining contractor Cominvi, S.A. de C.V. has been selected, and detailed underground mine design and planning is advancing.

President and CEO Brad Langille said:

"The advancement of the Los Ricos underground project marks an important milestone in the growth of the company. The progress to date will ensure a quick launching of site construction once the permit is issued, we are shovel ready."

All site geotechnical work required to support the various design programmes has been completed. Geotechnical studies assess ground conditions and soil stability, and finishing this work removes a prerequisite for multiple engineering streams running concurrently across the project.

Processing Plant Design at 55%, SART Plant at 70%, and SAG Mill Order Imminent

Detailed processing plant design, led by M3 Mexicana, S de RL de CV, has reached 55% completion. The SART (sulfidisation, acidification, recycling, and thickening) plant design is further along at 70%. The SART process is used in gold and silver operations to recover cyanide and metals from processing solutions, reducing both reagent consumption and waste.

GoGold has identified suppliers and expects to place an order for a new SAG (semi-autogenous grinding) mill within weeks. A SAG mill is the primary piece of equipment used to crush and grind ore before it enters the rest of the processing circuit. Such equipment typically carries extended manufacturing lead times, which is why suppliers are identified and orders placed well before construction begins.

Additional engineering work is also progressing: a contract has been issued for the detailed design of the Paste Plant, and design of the Dry Stack Tailings Facility (DSTF) is advancing. A dry stack tailings facility stores processed mine waste in a compacted, low-moisture form, as opposed to conventional wet impoundment.

CFE Power Contract Secured and $250 Million USD on Hand for Construction Launch

GoGold has reached a supply contract with Comision Federal de Electricidad (CFE) for grid power sourced from the Yesca hydroelectric dam. Engineering of the transmission line is being carried out by local electrical company Sistema, and most of the routing will follow existing CFE easements, which are pre-approved land corridors for utility infrastructure.

Water supply assessments, covering both surface and groundwater sources, are well advanced. Separately, the company holds approximately $250 million USD in cash, in addition to the cash flow generated by its Parral Tailings operation.

President and CEO Brad Langille said:

"With approximately $250 million USD in the bank and the cash flow that our Parral operation is generating, we look forward to getting underway in Los Ricos to the benefit of the local community and all the stakeholders."

The company added that 100% of its operations are located in Mexico, where it stated it will continue to make substantial investments in the local economy.

Milestones and Next Steps

With detailed engineering progressing across multiple work streams, key contractors in place, and infrastructure agreements concluded for power supply, GoGold's stated position is that it is ready to begin site construction promptly upon permit issuance. Near-term milestones to monitor include the SAG mill order placement, continued advancement of processing plant design, and progress on the CFE power line engineering. Construction commencement remains contingent on the receipt of the required construction permit.

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