Low-Cost Nevada Gold Miner Paying Monthly Dividends

• Jason Reid, the President & CEO of Fortitude Gold, has a 15-year history in the gold industry, formerly associated with Gold Resource Corporation. Fortitude Gold spun off from Gold Resource to focus solely on Nevada mining operations.
• Fortitude Gold stands out due to its high-margin dividend, yielding between 7-8%. The company maintains a low share structure, no debt, and boasts a cash balance of around $45.1 million, as of the last quarter.
• Fortitude Gold operates the Isabella Pearl mine, which began production in 2019. They are also planning further mining operations at County Line and Golden Mile, leveraging existing infrastructure. Their focus is on oxide ore, leaving behind sulfide ore which they currently cannot process.
• Apart from their active mining sites, Fortitude Gold is involved in exploration projects, notably the East Camp Douglas, which shows massive potential. The company plans to continue its exploration activities, aiming to find more open pit heat bleaches like Isabella Pearl.

Fortitude Gold on Path to Continued Success

Fortitude Gold (OTCQB: FTCO) is a low-cost Nevada gold producer uniquely positioned to deliver value to shareholders through its strategy of maximizing margins and paying monthly dividends. With no debt and a strong cash position, Fortitude offers investors exposure to high-grade US gold production with minimal risk.

Seasoned Leadership Executing Proven Strategy

Fortitude Gold CEO Jason Reid has over 15 years of experience leading successful gold producer Gold Resource Corporation. While at Gold Resource, Reid helped the company generate over $1 billion in revenue and return $116 million to shareholders through dividends.

When forming Fortitude Gold, Reid set out to replicate this successful approach of maximizing margins and dividends in the Company's Nevada projects. Fortitude was spun out of Gold Resource in 2021 to provide more targeted exposure to Nevada production and growth potential.

Cornerstone Asset: High-Grade Isabella Pearl Mine

The cornerstone of Fortitude's portfolio is the Isabella Pearl mine, located in Nevada's prolific Walker Lane trend. Isabella Pearl boasts exceptional grades averaging over 2 g/t gold, compared to the industry average of around 0.5 g/t for open pit mines.

Isabella Pearl was built in just 10 months and achieved its first production in 2019. The high grades translate into low costs of just $725/oz all-in sustaining-costs (AISC) based on 2022 guidance. At current gold prices near $2,000/oz, Isabella Pearl generates cash flow margins exceeding $1,200/oz. The exceptional grades and margins allow Fortitude to pay its shareholders a monthly dividend that currently yields around 7%. Fortitude has already distributed over $11 million in dividends since 2021.

While Isabella Pearl is expected to cease production this year, Fortitude has delineated additional mineralization at depth which could extend the mine life if a future underground operation is determined feasible.

Near-Term Growth from County Line

To leverage its initial investment in Isabella Pearl, Fortitude Gold is utilizing a "hub-and-spoke" approach for its additional projects in the Walker Lane trend. Ore from these deposits can be processed through Isabella Pearl's established infrastructure.

This strategy greatly reduces the lead time and capital required to advance projects to production. The next mine expected online is the County Line project, located just 8 miles from Isabella Pearl. With ore to be trucked to Isabella for processing, County Line could potentially reach production in 12-18 months.

Recent drilling has outlined an initial resource of 40,000 oz at County Line, which remains open along strike and at depth. Fortitude is continuing an aggressive drill program to determine the project's full potential.

Advancing Exploration at High-Potential Targets

In addition to its production assets, Fortitude has accumulated a district-scale land package covering numerous exploration targets. The Company invested $12 million in exploration drilling last year and plans another aggressive program in 2023 focused on expansion and discovery.

Key projects being advanced include the Golden Mile deposit and the East Camp Douglas project. Golden Mile could represent the next mining hub after County Line, with disseminated mineralization adjacent to Isabella Pearl.

East Camp Douglas contains a lithocap overlying a large intrusive body which represents a potential multi-million ounce target. While early results have been encouraging, success at East Camp Douglas could significantly increase Fortitude's growth pipeline.

Financially Solid with a Debt-Free Balance Sheet

With no debt and $45 million in cash at the end of 2022, Fortitude Gold has one of the strongest balance sheets among junior gold miners. The Company is using its robust cash position to pre-purchase equipment and supplies to mitigate inflationary pressures.

This financial foundation allows Fortitude Gold to fund its promising development projects and exploration activities through cash flow. The Company expects to produce 40,000 oz of gold in 2023 at AISC under $900/oz.

At current prices, this level of low-cost production should continue providing significant cash flow for dividends, exploration, and advancing the portfolio. Fortitude offers investors high leverage to the gold price while minimizing risk.

Unique Exposure to Undervalued US Gold Production and Growth

Fortitude Gold presents a unique investment opportunity with its strategy focused on maximizing margins, dividends and low-risk organic growth. Trading at under 5x cash flow, Fortitude remains relatively undervalued compared to peers.

As the Company continues advancing its pipeline of high-grade Nevada projects, expands resources through exploration, and pays substantial dividends, the market should recognize the compelling value Fortitude Gold offers investors

The Investment Thesis

• High-grade production at low costs leads to strong cash flow margins and the ability to pay dividends. The Isabella Pearl mine is generating over $1,200/oz margins at current prices. This provides a healthy recurring dividend stream.
• Organic growth potential through near-term projects like County Line as well as larger exploration upside at East Camp Douglas. Multiple assets allow for production growth over time.
• Debt-free balance sheet and ample cash position provide stability and allow self-funding growth through cash flow. Much lower risk profile compared to many junior miners.
• Proven and experienced management team with a track record of shareholder returns. Alignment of interests between management/insiders and regular shareholders.
• Relative undervaluation with shares trading below 5x operating cash flow. Attractive entry point compared to peers.
• Additional upside from higher gold prices. Low AISC means Fortitude generates significant additional cash flow as gold prices rise.
• Geographic exposure to a top-tier mining jurisdiction in Nevada. Politically stable region with infrastructure in place.

Fortitude Gold offers investors exposure to a unique low-cost dividend-paying gold producer with organic growth prospects, all in a low-risk financially solid vehicle. The potential reward from expanding production, exploration success, higher gold prices, and multiple expansions present a compelling opportunity.