Maritime's Pre-Acquisition Progress Strengthens New Found Gold's Path to Production

• Maritime Resources' pre-acquisition progress at Hammerdown, marked by first mill feed delivery on October 16, 2025, and ongoing Pine Cove upgrades, proves execution capability and de-risks the project for New Found Gold pending transaction completion.
• Advancing before deal closure ensures immediate operational continuity post-acquisition, compressing New Found Gold's timeline to potential production and cash flow while providing an operational template for its flagship Queensway Gold Project development.
• Grade confirmation of 3.03 grams per tonne gold from initial mining and infrastructure readiness validate Hammerdown's economics and support integration with New Found Gold's low-cost, phased production strategy mirroring the 700 tonnes per day toll-milling approach outlined in Queensway's July 2025 Preliminary Economic Assessment.
• Both companies operate in Newfoundland and Labrador, a mining-friendly jurisdiction offering regulatory stability, workforce depth, and permitting efficiency that reduces development risk and supports favorable valuation metrics.
• For investors, Maritime's continued execution strengthens confidence in New Found Gold's acquisition logic, aligning early-stage risk reduction with near-term value realization in a gold price environment exceeding $3,600 per ounce as of September 2025.

Setting the Context: Execution Before Acquisition

Junior mining companies typically decelerate development activity following acquisition announcements. The rationale is straightforward: preserve working capital, avoid integration complexity, and transfer execution risk to the acquirer. Maritime Resources has taken the opposite approach. By maintaining full operational tempo at Hammerdown through the pending transaction with New Found Gold, the company demonstrates both capital discipline and execution certainty, attributes that directly reduce post-close integration risk and accelerate New Found Gold's path to production revenue.

This continuity transforms the acquisition from a development project into a near-production asset. Upon transaction completion, New Found Gold will inherit verified grade reconciliation data, commissioned processing infrastructure, and an operational workforce already embedded in the Baie Verte mining district. The timeline compression is material: instead of restarting development post-close, New Found Gold can immediately focus on ramp-up optimization and cash flow generation.

Gold's sustained strength throughout 2025, trading in the $3,600 to $3,760 range in September and advancing toward the +$4,000 threshold by October, creates a favorable margin environment for near-term gold producers. These prices far exceed the US$2,300 per ounce sensitivity level used in Maritime Resources’ 2022 Feasibility Study, where the Hammerdown project generated a US$205 million NPV and an 87.9% after-tax IRR (5% discount). This underscores the significant economic upside available under current market conditions as New Found Gold prepares to integrate and advance Maritime’s assets.

Operational Milestones Confirm Execution Capability

The October 16, 2025 shipment of crushed mill feed from Hammerdown to Pine Cove represents the convergence of multiple parallel workstreams: open-pit mining initiation, primary crushing commissioning, logistics coordination, and receiving facility preparation. Each element requires precise sequencing and technical execution. The successful delivery validates Maritime's capacity to manage complex operational interdependencies.

Maritime is currently processing existing mineralized stockpiles at Pine Cove while ramping up Hammerdown feed delivery to the permitted throughput rate of 700 tonnes per day, or 255,000 tonnes annually. This staged approach mitigates processing risk by allowing mill optimization on known material before introducing Hammerdown ore, providing New Found Gold with commissioning data that will inform future throughput optimization decisions.

Grade Validation & Data Integrity

Early mining results from Hammerdown's initial two open-pit blasts delivered approximately 11,000 tonnes at a diluted grade of 3.03 grams per tonne gold. Tonnage estimates relied on three-dimensional drone laser scans and truck weights, while grade determination incorporated 424 samples from muck piles and crushed material. This sampling density provides high confidence in grade reconciliation accuracy.

For investors, early-stage grade confirmation carries significant weight. Mineral resource models inherently contain geological uncertainty, particularly for deposits transitioning from inferred to measured and indicated classifications. Maritime's validation work reduces this uncertainty and supports the economic assumptions underpinning New Found Gold's acquisition valuation. Demonstrated continuity between modeled and mined grades strengthens confidence in reserve conversion potential and production forecasting reliability.

Infrastructure & Cost Optimization: De-Risking the Processing Chain

Hammerdown benefits from its brownfield status and proximity to existing infrastructure. The project sits adjacent to Highway 391, providing year-round road access, and connects to the Newfoundland and Labrador Hydro grid within 500 meters. Grid access eliminates the capital and operational costs associated with diesel-powered generation, improving both project economics and environmental footprint.

The completion of a 20,000 cubic meter lined settling pond represents a critical environmental infrastructure milestone. Designed to manage site contact water during one-in-100-year storm events, the pond demonstrates proactive environmental compliance. Maritime's decision to construct this infrastructure ahead of transaction closure removes a potential bottleneck from New Found Gold's post-acquisition timeline.

Cost discipline extended to civil earthworks. Maritime sourced over 70,000 tonnes of blasted waste rock from the original Hammerdown underground mine development for use in road construction, storage pad foundations, and site preparation. This material reuse eliminated nearly $0.3 million in drilling and blasting costs, illustrating operational efficiency that typically correlates with broader capital discipline during mine construction.

Pine Cove Mill Upgrades

Pine Cove maintains a permitted throughput capacity of 700 tonnes per day, or 255,000 tonnes annually. Maritime has invested in mill upgrades during 2025, including installation of a higher-capacity regrind circuit for flotation concentrate and a new material handling system for crushed ore feed. These preemptive upgrades address common commissioning failure points: inadequate regrind capacity limits metallurgical recovery, while suboptimal feed systems create throughput bottlenecks.

For New Found Gold, inheriting a processing facility with recent capital investment and verified operational readiness reduces both technical risk and near-term capital requirements. The mill is currently processing mineralized stockpiles from historic Pine Cove, Stoger Tight, and Argyle operations, demonstrating functional capacity before Hammerdown feed introduction.

Workforce, Safety & ESG Integration

Maritime has achieved zero lost time accidents year-to-date with over 100,000 hours worked during Hammerdown's development phase. This safety performance reflects embedded risk management systems and operational discipline. For institutional investors increasingly focused on environmental, social, and governance metrics, demonstrated safety culture provides quantifiable evidence of operational competence and regulatory compliance.

The project workforce comprises 94 percent local hires from communities surrounding the Baie Verte mining district. This localization strategy reduces accommodation costs, strengthens community license-to-operate, and enhances workforce retention. Maritime projects a total workforce of 250 people at full production.

The absence of accommodation camps further differentiates Hammerdown from remote mining operations. Proximity to King's Point, Springdale and Baie Verte allows daily commuting, eliminating the capital and operating costs associated with camp construction and maintenance. This geographic advantage translates into lower all-in sustaining costs and reduced social impact compared to fly-in, fly-out operations.

Strategic Alignment with New Found Gold's Development Model

Building the Operating Team for Production

New Found Gold's September 2025 announcement of its planned acquisition of Maritime Resources reflects a deliberate strategic pivot from pure exploration to near-term production. The company has moved decisively to build the operational capability required to transition Hammerdown into production while advancing its flagship Queensway project through development stages.

New Found Gold’s September 2025 announcement of its planned acquisition of Maritime Resources marks a deliberate strategic pivot from pure exploration toward near-term production. While the transaction is not expected to close until mid-November 2025, the move underscores New Found Gold’s intent to build operational capability in advance of developing the Hammerdown project—an asset that will complement its flagship Queensway development in Newfoundland.

Rob Assabgui was promoted from study manager to Chief Operating Officer, bringing decades of mining engineering experience to New Found Gold's executive team. Keith Boyle, Chief Executive Officer of New Found Gold emphasized Assabgui’s track record:

"Rob has been a solid mining engineer for many decades, a good operator, good builder, really rounding out our team. One of his last assignments was Vice President of the Manitoba division for Hudbay that brought Lalor into production."

Lalor represents a successful mine construction and commissioning example, demonstrating Assangui's capability to navigate the complex transition from development through production ramp-up. For Hammerdown, which is already approaching production readiness through Maritime's continued advancement, this experience reduces execution risk during the critical post-acquisition integration period.

Complementary Development Timelines & Operational Strategy

New Found Gold's development strategy at its flagship Queensway Gold Project aligns precisely with the operational model proven at Hammerdown. New Found Gold's July 2025 Preliminary Economic Assessment for Queensway outlined a phased approach designed to minimize upfront capital requirements while accelerating cash flow generation. Phase 1 establishes a small high-grade open pit operation utilizing 700 tonnes per day off-site toll milling, requiring C$155 million in initial capital and generating average annual production of 69,300 ounces during the first four years of a projected 15-year mine life.

New Found Gold’s development model mirrors Maritime's operational approach: 700 tonnes per day processing at the Pine Cove mill, brownfield infrastructure leverage, and focus on high-grade zones with rapid payback. The strategic consistency creates immediate operational synergies. The Hammerdown acquisition provides New Found Gold with an operational template, proven processing capacity at Pine Cove, a hydrometallurgical gold circuit at the Nugget Pond Mill and near-term cash flow to help fund Queensway's advancement through feasibility studies and permitting processes.

Financial Leadership for Project Development

Parallel to operational team expansion, New Found Gold strengthened its financial management capability in preparation for the capital requirements associated with mine development and production ramp-up. Keith Boyle explained the appointment rationale:

"We're bringing on a CFO who was the CFO at Mandalay, which just got taken out by Alamos, and he's a Chartered Accountant by background. Prior to that, he was CFO at Jaguar. So lots of experience, all we need in moving forward with the company.”

This financial expertise becomes critical as New Found Gold transitions from exploration-stage company to developer and producer. The Hammerdown acquisition, Queensway advancement, and eventual Phase 2 expansion at Queensway will require access to capital markets, project financing, and operational cash flow management.

Scale & Resource Foundation

New Found Gold's March 2025 Initial Mineral Resource estimate for Queensway's AFZ Core area totals 18.0 million tonnes at 2.40 grams per tonne gold, containing 1.39 million ounces in the measured and indicated categories. The July 2025 Preliminary Economic Assessment projects total recoverable gold of 1.5 million ounces over a 15-year mine life, with an after-tax net present value of C$743 million and internal rate of return of 56.3% at the $2,500 per ounce gold base case.

With gold prices trading above $3,600 per ounce as of September 2025, actual market conditions exceed even the Queensway PEA's optimistic scenarios, which modeled economics up to $3,300 per ounce. Each US$100 increase in the gold price adds approximately US$89 million to project NPV, materially enhancing returns across both Hammerdown and Queensway. This pricing environment strengthens overall project economics and supports a meaningful uplift in valuation multiples.

The combined asset base positions New Found Gold as a significant regional consolidator in Newfoundland's emerging gold sector. Hammerdown provides near-term production and cash flow, while Queensway offers multi-million-ounce scale and decade-long production potential.

Jurisdictional Strength & Regional Commitment

Newfoundland and Labrador is recognized as a mining-friendly jurisdiction offering political stability, transparent regulatory processes, and established infrastructure that reduces project development risk. Both Hammerdown and Queensway benefit from provincial government support for mining sector growth, streamlined environmental assessment procedures, and competitive fiscal terms.

Access to grid power, provincial highway networks, and deep-water ports provides logistical advantages rarely available to greenfield projects. The province's mining service sector, developed through decades of base metal and gold production, ensures availability of skilled labor, specialized contractors, and technical expertise.

New Found Gold has reinforced its commitment to long-term regional development through board-level appointments. The addition of Andrew Furey, former Premier of Newfoundland and Labrador, to NFG's board of directors signals the company's focus on maintaining strong provincial relationships as it transitions to production. Keith Boyle articulated the strategic value:

"We're really happy to announce that Andrew Furey, the ex-Premier of Newfoundland and Labrador, is joining our board. We're really strengthening our board, making a statement that we're here to stay. The political world and all those connections really do help a business, and that oversight, making sure that we advance in the right way, that's gold."

This board appointment transcends symbolic value. Former political leadership brings networks within provincial government, regulatory agencies, and Indigenous communities that facilitate permitting processes, workforce development initiatives, and infrastructure investment coordination. For institutional investors evaluating long-term operational risk, this level of political and community engagement reduces uncertainty around permit timelines and regulatory compliance.

The Investment Thesis for New Found Gold

• Maritime Resources' pre-acquisition execution at Hammerdown validates operational discipline and confirms grade reconciliation, demonstrating project readiness that New Found Gold will benefit from upon transaction completion. The verified tonnage and grade data, combined with functional processing infrastructure, reduce technical uncertainty typically associated with early-stage mining assets.
• Hammerdown's progress compresses New Found Gold's timeline from explorer to producer, improving capital efficiency and accelerating cash flow generation. This temporal advantage matters in a market environment where investors increasingly reward producers over pure explorers, particularly when production emerges from established mining jurisdictions at attractive cost structures.
• Strategic alignment between Maritime's operational model and New Found Gold's Queensway development plan creates immediate synergies. Both projects employ 700 tonnes per day toll-milling concepts focused on high-grade zones with rapid payback, demonstrating management's commitment to capital-efficient development that compounds margin resilience through commodity price cycles.
• New Found Gold has assembled experienced operational and financial leadership with demonstrated track records in mine construction, production ramp-up, and project financing. This management depth reduces execution risk during the critical transition from development to production and enhances credibility with capital markets and financing partners.
• New Found Gold's combined asset base offers production scalability through Hammerdown's near-term cash flow and Queensway's 1.39 million ounce measured and indicated resource base. The portfolio provides diversification across development stages while maintaining geographic concentration in a single supportive jurisdiction, reducing political and permitting risk.
• Gold price upside enhances project economics across the portfolio. With market prices above $3,600 per ounce as of September 2025, both Hammerdown and Queensway operate in an environment substantially exceeding their feasibility assumptions, expanding margins and improving returns on invested capital.
• Newfoundland and Labrador's infrastructure, permitting efficiency, and political stability reduce execution risk across NFG's entire asset portfolio. The jurisdictional advantage lowers discount rates in valuation models and enhances investor confidence in development timelines, critical factors for companies advancing from feasibility through construction phases.
• Regional consolidation potential positions New Found Gold as the dominant gold developer in Newfoundland's Baie Verte and Central Newfoundland mining districts. As the provincial gold sector matures, companies with operational assets, processing capacity, and regional scale capture premium valuations relative to single-project explorers.

From Execution to Integration

Maritime Resources' decision to maintain full operational momentum through the acquisition process represents more than prudent project management. It constitutes an investment signal that both management teams prioritize early production, disciplined capital deployment, and measurable risk reduction.

For investors evaluating New Found Gold's strategic trajectory, this operational continuity positions the company as a near-term producer with demonstrably lower execution risk. Upon transaction completion, NFG will inherit not merely a mineral resource, but a commissioned mining operation with verified grades, functional infrastructure, and an embedded workforce.

Maritime's October 16 delivery of first mill feed from Hammerdown demonstrates operational capability that de-risks the asset for New Found Gold while compressing the timeline to production and cash flow. This dynamic underscores Newfoundland's emergence as a premier gold investment frontier where operational discipline, jurisdictional stability, and strategic consolidation converge to generate differentiated returns for shareholders who recognize the value of production-ready assets in politically stable environments with established mining infrastructure.

TL;DR Summary

Maritime Resources is maintaining full operational momentum at its Hammerdown gold project during New Found Gold's pending acquisition, delivering first mill feed on October 16, 2025. This unconventional approach validates execution capability with confirmed grades of 3.03 grams per tonne gold and commissioned processing infrastructure at Pine Cove. The strategy compresses New Found Gold's timeline to production and cash flow while providing an operational template for its flagship Queensway project. Both assets leverage Newfoundland's mining-friendly jurisdiction, 700 tonnes per day toll-milling approach, and benefit from gold prices exceeding $3,600 per ounce—more than double original feasibility assumptions. New Found Gold has strengthened its leadership team with experienced mining executives and former Premier Andrew Furey, positioning the company as a regional consolidator with near-term production capability and multi-million-ounce resource potential.

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