Integra Resources - Demonstrating Scale and Margin at Low-Grade Gold Projects

• Integra Resources is an exploration and development company focusing on bulk-tonnage, low-grade gold deposits in Nevada and Idaho.
• It currently possesses the largest gold and silver resource endowment not controlled by a major mining company.
• Their Nevada project's PEA showed potential with 80% of the resources in the indicated category. The project in Nevada has only been drilled on five acres but has delivered 1.5 million ounces, indicating its potential scale.
• While many fixate on grade, CEO Jason Kosec believes that mining is about margins. Low-grade deposits can still be profitable. Their Nevada projects are highlighted as having high strip-adjusted grade projects, demonstrating their robustness.
• In Idaho, the company has been drilling low-grade stockpiles that are expected to go into an updated resource. They also emphasize the importance of obtaining permits, stating that permits in the basin can add significant value.

About Integra Resources

Integra Resources is a precious metals exploration and development company focused on advancing heap leach projects in the western United States. The company's flagship asset is the past-producing DeLamar Mine in Idaho, which operated from 1977 to 1998 and produced over 1.6 million ounces of gold and 100 million ounces of silver.

Integra recently merged with Millennial Precious Metals, gaining two additional heap leach development projects in Nevada called Wildcat and Mountain View. The strategic combination has created one of the largest undeveloped gold-silver resources in the Great Basin region not controlled by a major mining company.

The consolidated company now controls over 5.6 million ounces of gold equivalent resources in M&I and 0.9 million ounces of gold equivalent in inferred. The DeLamar project hosts 2.6 million ounces of gold and 127 million ounces of silver in the measured and indicated resource categories.

Integra is currently advancing both projects towards production. The company recently released a Preliminary Economic Assessment (PEA) on the Wildcat and Mountain View projects in Nevada, outlining robust economics at today's gold prices. An updated resource estimate is expected at the DeLamar Project in Q4 2023 and advanced studies over the next two years.

Integra's largest shareholders include Wheaton Precious Metals and Beedie Capital, Their investments validate the quality and potential of Integra's assets.

Interview with President & CEO Jason Kosec

DeLamar Project - Idaho

The past-producing DeLamar Project in southwest Idaho currently hosts a measured and indicated resource of 2.6 million ounces of gold and 127 million ounces of silver. An additional 452k  inferred ounces of gold and 16.4 million ounces of silver have also been outlined. The project benefits from significant existing infrastructure.

Integra is focused on growing the DeLamar resource through exploration drilling. The company is also conducting metallurgical studies and engineering work to support advanced studies in 2024. Baseline environmental studies are underway and Integra plans to submit a Mine Plan of Operations to regulators by the end of 2023.

A key upside opportunity lies in low-grade stockpiles left behind by previous operators. These stockpiles contain an estimated 40-60 million tonnes of mineralized material grading between 0.3 – 0.6 g/t AuEq. While minimal expenditure is required to define these stockpiles, they have the potential to meaningfully expand the DeLamar production profile once incorporated into mine planning.

Wildcat and Mountain View projects - Nevada

The Wildcat and Mountain View projects in northwest Nevada currently hosts an indicated resource of 1.3 million ounces of gold in M&I and 270k ounces of gold inferred. The recent PEA outlined a 13-year open-pit heap leach operation producing ~80k oz/year at all-in sustaining costs of $973/oz. At a gold price of $1,700/oz, the after-tax NPV is $310 million with IRR of 37%.

The PEA economics are driven by low strip ratios, reasonable capital intensity, and most importantly - strong margins. While grades are low at 0.38 g/t gold at Wildcat and 0.57 g/t gold at Mountain View, the combined average strip ratio of just  1.21 allows for extremely low mining costs. Combined with inexpensive heap leach processing, this results in cash costs of only $882/oz. Wildcat and Mountain View are projected to generate over $485 million in total free cash flow from years 1-13.

There is significant potential to expand the footprint of mineralization at Wildcat and Mountain View through exploration drilling. The current resource occupies just a tiny fraction of Integra's 465 km2 land package. Integra Resources is working through permitting requirements and plans to commence drilling in 2024.

Path Forward

With robust economics demonstrated at both assets, Integra Resources is focused on resource growth and de-risking activities to advance both projects towards production. Upcoming catalysts include:

• Updated resource estimate for DeLamar incorporating low-grade stockpiles (Q4 2023)
• Submittal of Mine Plan of Operations for DeLamar to regulators (Q4 2023)
• Commencement of exploration drilling at Wildcat and Mountain View (2024)
• Completion of a feasibility study for DeLamar (2024)
  

Despite advanced studies and quality assets, Integra Resources continues to trade at a steep discount to peers. The company is valued at approximately $10 per ounce in the ground despite recent acquisitions in the Great Basin that saw the average acquisition cost of ~100 per ounce in the ground. As Integra continues to derisk its assets and demonstrate scale potential, the market should begin to recognize the company's deep value.

With approximately US$20 million in cash, Integra Resources is well funded. While further funding will be required to advance projects to production, the low-cost nature of both deposits leaves room to take on debt, seek a strategic partner, or sell a royalty. CEO Jason Kosec emphasizes that all options will be considered to maximize shareholder value.

Backed by proven technical teams and supportive major shareholders, Integra Resources offers substantial leverage to rising gold prices through its low-cost, bulk-mining gold projects. As the company continues to derisk these assets and demonstrate scale potential, shares could re-rate significantly from currently depressed levels. Value-focused investors may want to take a closer look at this emerging US-focused gold developer.

The Investment Thesis

Leverage to Rising Gold Prices

With nearly 6 million ounces of gold equivalent resources, Integra offers strong leverage to rising gold prices. As an exploration and development company, the company's valuation will be highly sensitive to the gold price. If gold prices rise, the value of Integra's resources and project economics will increase significantly.

Low-Cost Production Profile

Integra's projects stand out for their low costs driven by low strip ratios, inexpensive heap leach processing, and solid metallurgical recoveries. This gives the company-wide profit margins and downside protection if gold prices fall. The low costs also allow for lower capital intensity and flexibility in financing options.

Advanced Stage Projects

Both the DeLamar and Florida Mountain projects are at advanced stages, with robust economics demonstrated in a PFS and a PEA on the Wildcat and Mountain View projects in western Nevada. This reduces technical execution risk as the projects move towards production. The defined development timeline also gives investors clarity on upcoming catalysts.

Exploration Upside

There is substantial upside potential from the exploration at both projects. The large land packages are relatively underexplored and offer opportunities to significantly expand resources. This provides meaningful blue-sky potential as exploration progresses.

Deep Value

Despite advanced studies and quality assets, Integra trades at a steep discount to peers at just $100/oz enterprise value versus sector averages above $70/oz. As the company de-risks its projects, the valuation disconnect should narrow. This gives investors an opportunity to position at a low entry point.

Strong Leadership

Integra Resources has a proven technical team with extensive experience permitting and operating similar projects. Major shareholders Wheaton Precious Metals and Beedie Capital provide third-party validation. This reduces execution risk as the projects advance.

Integra Resources offers investors quality assets with low costs, exploration upside, and deep value. As the company demonstrates the potential scale of its projects, shares could re-rate significantly higher.