New Found Gold Confirms High Recovery Rates at Queensway Project, Advances Toward Feasibility Study

• New Found Gold achieved an average 89.2% overall gold recovery from Keats West zone master composite sulphide samples, confirming projections used in the preliminary economic assessment.
• The Phase III Metallurgical Testing Program validated production of a saleable gold concentrate with average grades of 37.9 g/t Au and 3.1% As across Keats West samples.
• Additional zone testing delivered 87% average recoveries from rougher stage flotation on select samples from Keats, Golden Joint, Lotto, and Iceberg zones.
• The company confirmed its gravity-flotation flowsheet approach and filed the technical report for the Queensway Gold Project preliminary economic assessment.
• Feasibility Study level metallurgical testing is planned to commence in Q4 2025, with results expected in the second half of 2026.

New Found Gold Corp. (TSX-V: NFG, NYSE-A: NFGC) operates as a gold exploration and development company focused on its flagship 100% owned Queensway Gold Project located in Newfoundland and Labrador, Canada. The company has established significant gold mineralization across multiple zones including Keats West, Keats, Golden Joint, Lotto, and Iceberg, positioning itself as a key player in Canada's emerging gold mining sector. The recent completion of Phase III Metallurgical Testing represents a crucial milestone in advancing the Queensway project from exploration toward production feasibility.

The metallurgical testing results announced September 2, 2025, provide critical validation of the company's technical approach and economic projections, offering investors insight into the project's commercial viability and development timeline. These findings directly support the preliminary economic assessment released in July 2025 and establish the foundation for upcoming feasibility studies.

Phase III Metallurgical Testing Program Overview

The Phase III Metallurgical Testing Program commenced in late 2024 and represented a comprehensive evaluation of gold recovery processes across the Queensway project. The program focused primarily on newly collected samples from the Keats West zone while re-evaluating select materials from previously tested zones.

Base Metallurgical Laboratory Ltd., part of the Intertek Group plc, conducted all metallurgical laboratory testing from their Kamloops, British Columbia facility. The Advanced Mineral Technology Laboratory completed supporting mineralogical gold deportment studies. Both organizations operate independently of New Found Gold, ensuring objective technical assessment.

The testing program evaluated approximately 660 meters of drill core weighing 2,700 kilograms, comprising 68 variability composites selected to provide representative sampling across the Keats West zone. This extensive sampling approach aimed to capture the natural variability in gold grades and metallurgical characteristics throughout the mineralized zone.

Keats West Zone Performance Validation

The Keats West zone emerged as the primary focus of the testing program, with samples organized into three master composites based on visually determined carbon content: Keats West Weak, Keats West Moderate, and Keats West Strong. This classification system utilized visible indicators including core color, carbon transfer during handling, and core competency.

Testing results demonstrated consistently high gold recovery rates across all three composite categories. The Keats West Weak sample achieved 85.6% overall gold recovery, while Keats West Moderate reached 86.2% recovery. The Keats West Strong composite delivered the highest performance at 95.9% overall gold recovery.

Chief Executive Officer Keith Boyle emphasized the significance of these results, stating:

"We are pleased with the results of the most recent phase of metallurgical test work at Queensway, which confirms high gold recovery to a saleable gold concentrate from Keats West and the flowsheet outlined in the recently released Queensway PEA."

The concentrate grades varied across the three composites, with Keats West Weak producing 40.6 g/t Au, Keats West Moderate achieving 47.1 g/t Au, and Keats West Strong generating 26.0 g/t Au. Arsenic content ranged from 0.9% to 4.2% across the composites, with an average of 3.1% As, maintaining levels considered commercially acceptable for gold concentrate sales.

Technical Validation & Flowsheet Confirmation

The metallurgical testing confirmed the technical approach outlined in the Queensway preliminary economic assessment, validating gravity gold recovery followed by flotation of gravity tails to produce saleable gold concentrate. This flowsheet represents a proven approach in gold processing and provides confidence in the project's technical feasibility.

Comminution testing evaluated the three master composites through multiple standard industry tests, including semi-autogenous grinding mill comminution breakage tests, Bond Ball Mill Tests, Bond Rod Mill Tests, and Bond Abrasion tests. The Keats West Weak sample demonstrated an SMC index of 70.5, while Keats West Moderate showed 52.8. Bond Work Index values ranged from 18.4 to 18.7 kWh/t, slightly above the range observed in other zones but within acceptable parameters for the proposed crushing and SAG/Ball mill flowsheet.

Mineralogical analysis revealed consistent rock mineral assemblages dominated by quartz, illite, chlorite, and albite, with minor carbonate and rutile content. The sulphide mineralogy showed dominance by pyrite and arsenopyrite across all tested materials. Notably, submicroscopic gold represented a minor contributor to overall gold grade except in the Keats West Weak sample, where it accounted for 49% of the gold content.

Broader Zone Testing Results

Beyond Keats West, the testing program re-evaluated select samples from Keats, Golden Joint, Lotto, and Iceberg zones previously tested in Phases I and II. This additional work focused on optimization to increase recovery rates from lower-grade materials.

The program targeted select lower-grade variability composites containing approximately less than 3 g/t Au with elevated sulphide concentrations. Testing employed a gravity-flotation flowsheet approach, subjecting samples to gravity processing, rougher flotation of gravity tails, and leaching of rougher concentrate.

Results demonstrated improved overall gold recoveries compared to previous gravity-CIL testing approaches. Average recoveries of 87% were achieved from rougher stage flotation, though cleaner flotation and optimization work remained incomplete for future testing phases.

These results support the gravity-flotation flowsheet approach for treating lower-grade sulphide-associated mineralization that does not respond optimally to standard cyanidation gold extraction methods.

Future Development Timeline & Feasibility Studies

New Found Gold has outlined a comprehensive path forward with additional Feasibility Study level metallurgical testing planned to commence in Q4 2025. Boyle indicated that "The next round of metallurgical test work, which is planned to commence Q4 2025 will support the Queensway Feasibility Study."

The expanded testing program encompasses multiple critical areas including establishment of geometallurgical models, complete variability testing across main mineralized zones, and continued development of both gravity/CIL flowsheet and gravity/gold flotation flowsheet approaches. Additional comminution variability testing will include bond ball and rod work indices, SMC tests, and abrasion tests.

Environmental considerations will receive significant attention through acid-base-accounting and humidity cell testing, addressing regulatory requirements for project advancement. Results from this comprehensive feasibility-level testing are expected in the second half of 2026.

The timeline positions New Found Gold for potential project advancement decisions in late 2026 or early 2027, assuming successful completion of feasibility studies and favorable economic projections.

Technical Report Filing & Regulatory Compliance

Concurrent with the metallurgical testing announcement, New Found Gold filed the technical report for the Queensway Gold Project preliminary economic assessment. The report, titled "NI 43-101 Technical Report for the Queensway Gold Project, Newfoundland and Labrador, Canada," carries a September 2, 2025 date and was prepared by SLR Consulting (Canada) Ltd.

The technical report preparation follows 2014 Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards and Canadian National Instrument 43-101 requirements, ensuring compliance with Canadian securities regulations for mineral resource reporting.

This filing provides investors with comprehensive technical documentation supporting the preliminary economic assessment announced in July 2025, offering detailed analysis of geological, metallurgical, and economic factors influencing project development.

Investment Conclusion

New Found Gold's Phase III Metallurgical Testing results provide substantial validation of the Queensway Gold Project's technical and commercial potential. The confirmation of 89.2% average gold recovery from Keats West zone samples, matching preliminary economic assessment projections, demonstrates the reliability of the company's technical approach and economic modeling.

The successful production of saleable gold concentrate across multiple zones, combined with confirmed flowsheet approaches, positions the project favorably for advancement through feasibility studies. The planned Q4 2025 commencement of feasibility-level testing, with results expected in H2 2026, provides investors with a clear timeline for major project milestones.

For investors evaluating New Found Gold, the metallurgical testing validation reduces technical risk while the established development timeline offers visibility into potential value catalysts. The company's 100% ownership of the Queensway project eliminates partnership complexities, while the project's location in Newfoundland and Labrador provides access to established mining infrastructure and favorable regulatory environment.

The combination of proven metallurgical performance, confirmed technical approach, and clear development pathway positions New Found Gold as a compelling opportunity for investors seeking exposure to Canadian gold development projects with demonstrated technical merit and advancing feasibility studies.