New Found Gold Expands Dropkick Discovery: High-Grade Drilling & Maritime Acquisition Position Emerging Producer

• New Found Gold (TSX-V: NFG, NYSE-A: NFGC) has expanded its Dropkick zone discovery to 815 meters of strike length with high-grade intercepts including 29.2 g/t Au over 9.25 meters, demonstrating significant exploration upside at its Queensway Gold Project.
• The company announced a strategic combination with Maritime Resources Corp., adding the near-production Hammerdown project (targeted 50,000 oz annual production starting 2026) to create an emerging Canadian gold producer.
• Queensway's Preliminary Economic Assessment outlines a phased, low-capital approach: Phase 1 requires only C$155 million initial capital to generate 69,300 oz annually at US$1,282/oz AISC, with cash flow funding subsequent expansion.
• The transaction creates operational synergies through Maritime's permitted Pine Cove mill and Nugget Pond facilities, securing processing infrastructure for Queensway's Phase 1 while Hammerdown cash flow funds development capital.
• With C$67.5 million treasury, experienced mine-development leadership, and assets in Tier-1 Newfoundland jurisdiction, New Found Gold offers investors exposure to near-term production, district-scale exploration upside, and significant re-rating potential.

High-Grade Drilling Expands Queensway's Dropkick Zone to 815m Strike

New Found Gold Corp. continues to demonstrate the exploration potential of its 100%-owned Queensway Gold Project in Newfoundland with the expansion of the Dropkick zone discovery. Results released October 30, 2025 show the high-grade zone now extends 815 meters along strike and to 285 meters depth, with mineralization remaining open in both directions.

The latest drilling returned multiple high-grade intercepts west of the Appleton Fault Zone, including 29.2 g/t Au over 9.25 meters, 20.9 g/t Au over 11.10 meters, 8.31 g/t Au over 18.20 meters, and 4.55 g/t Au over 28.55 meters. These results build on the Q4 2024 discovery and confirm the presence of robust high-grade mineralization in an area located 11 kilometers north of the AFZ Core resource area.

Melissa Render, President of New Found Gold stated:

"In late 2024, we made a high-grade discovery at Dropkick in the AFZ Peripheral area at Queensway. Initial 2025 drill results have expanded the mineralized footprint at Dropkick to 815 m along strike and to a depth of 285 m. Importantly, the zone remains open along strike and to depth."

The discovery demonstrates the camp-scale potential across Queensway's substantial 176,050-hectare (post-acquisition) land package.

Strategic Maritime Acquisition Creates Near-Term Production Profile

On September 5, 2025, New Found Gold announced a definitive agreement to acquire Maritime Resources Corp., adding the advanced-stage Hammerdown Gold Project to its asset portfolio. The transaction, with an implied equity value of approximately C$292 million on a fully-diluted basis, creates an emerging Canadian gold producer with production targeted from two assets within 18 months.

Maritime's Hammerdown project is a brownfield, high-grade open-pit development currently under construction. The project benefits from fully permitted infrastructure including the Pine Cove mill (1,300 tonnes per day capacity) which restarted processing existing stockpiles in February 2025. Full production at Hammerdown is targeted for early 2026, with the 2022 Feasibility Study projecting 50,000 ounces annual gold production at US$912/oz all-in sustaining costs.

The combination provides immediate operational synergies for advancing Queensway. The Preliminary Economic Assessment released July 21, 2025 assumes Phase 1 production will utilize off-site toll milling facilities—now secured through Maritime's Pine Cove mill and Nugget Pond hydrometallurgical plant. Equally important, Hammerdown's anticipated cash flow will fund a material portion of Queensway's C$155 million Phase 1 initial capital, accelerating development without significant equity dilution.

Queensway PEA Demonstrates Robust Economics Through Phased Development

The Queensway Preliminary Economic Assessment outlines a low-capital, phased approach that rapidly advances the project to cash flow. Phase 1 targets 700 tonnes per day of high-grade material processed through toll milling facilities, generating average annual production of 69,300 ounces at all-in sustaining costs of US$1,282 per ounce over the first four years.

The economic metrics demonstrate strong leverage to gold prices. At the base case US$2,500/oz gold price, the project generates an after-tax NPV (5%) of US$743 million and 56.3% IRR with less than two-year payback. Significantly, at current gold prices near US$3,300/oz, the after-tax NPV increases to US$1.45 billion with IRR expanding to 197%, highlighting substantial upside in the current price environment.

The phased approach minimizes execution risk while maximizing early returns. Phase 1's C$155 million initial capital unlocks 1.5 million ounces of gold production over a 15-year mine life at all-in sustaining costs of US$1,256/oz. Phase 2 construction of a 7,000 tpd on-site processing facility (C$442 million growth capital) expands production to 172,200 ounces annually in years 5-9, funded substantially by Phase 1 cash flow. Phase 3 adds underground mining (C$143 million) in years 6-10, further extending mine life and production profile.

District-Scale Exploration Potential Across 110km Mineralized Trend

Queensway's March 2025 Mineral Resource Estimate of 1.39 million indicated ounces (18.0 Mt at 2.40 g/t Au) and 608,000 inferred ounces (10.7 Mt at 1.77 g/t Au) covers just 4.3 kilometers of the Appleton Fault Zone within the project's 110-kilometer prospective strike length. The resource demonstrates reasonable prospects for economic extraction with 1.25 million indicated ounces in open-pit resources at 2.25 g/t Au and 142,000 indicated ounces in underground resources at 5.76 g/t Au.

The 2025 exploration program, comprising 70,000 meters of drilling with approximately 80% focused on infill and conversion within AFZ Core and 20% on peripheral targets, continues to expand the mineralized footprint. Recent channel sampling programs at Keats and Iceberg zones validate the geological model, with Iceberg returning multiple high-grade intercepts including 47.4 g/t Au over 7.36 meters, 64.8 g/t Au over 6.71 meters, and 23.0 g/t Au over 13.21 meters.

Beyond AFZ Core, exploration targets span the entire property. The Dropkick discovery at AFZ Peripheral demonstrates that high-grade mineralization extends 11 kilometers north of the resource area. Additional reconnaissance drilling at Blue Jay zone between Dropkick and Pistachio returned 84.4 g/t Au over 2.00 meters and 2.94 g/t Au over 16.00 meters, identifying another area of broad, low-grade mineralization with localized high-grade zones requiring follow-up work.

Experienced Leadership Team With Mine Development Track Record

New Found Gold installed a new board and management team in March 2024 with proven experience advancing projects from discovery through production. Keith Boyle serves as CEO, with Melissa Render as President (also a qualified person under NI 43-101), Hashim Ahmed as CFO, and Robert Assabgui as COO. The board is chaired by Paul Andre Huet and includes independent directors with extensive mining finance and operational experience.

CEO Keith Boyle stated:

"Since day one, the objective of the new management team at New Found Gold has been to advance Queensway to cash flow."

The team's approach emphasizes rapid advancement through strategic decisions including the Maritime acquisition, off-site toll milling to minimize initial capital, and in-pit tailings deposition to reduce environmental footprint and permitting risk.

The addition of Maritime's experienced development team further strengthens execution capability. Garrett Macdonald, Maritime's President and CEO (also a qualified person under NI 43-101), brings deep experience advancing Hammerdown through feasibility and into construction. Following transaction close expected in Q4 2025, one Maritime nominee will join New Found Gold's board, ensuring continuity and integration of operational expertise across both assets.

Newfoundland Jurisdiction Provides Infrastructure & Permitting Advantages

Both Queensway and Hammerdown benefit from location in Newfoundland and Labrador, consistently ranked among the top 10 global mining jurisdictions. The Fraser Institute's 2024 Survey of Mining Companies rated the province 8th globally for investment attractiveness, reflecting stable fiscal policy, established mining code, and government support for responsible resource development.

Infrastructure access significantly de-risks development. The Trans-Canada Highway provides year-round road access to both project sites. Gander International Airport, located 60 kilometers from Queensway, enables efficient personnel and equipment movement. The province's renewable hydroelectric power grid and proximity to deep-water shipping ports in Baie Verte reduce operating costs and carbon footprint compared to remote northern projects requiring diesel generation and ice-road logistics.

Recent provincial legislation demonstrates government commitment to streamline permitting for well-planned projects. While maintaining environmental standards, new rules establish clear timelines for permit review and decision-making, reducing regulatory uncertainty. The region's skilled mining workforce, developed through decades of base metal and gold mining history, provides access to experienced personnel without the recruitment challenges facing projects in emerging jurisdictions or remote locations.

The Investment Thesis for New Found Gold

• Hammerdown production targeted early 2026 provides cash flow visibility and re-rating catalyst ahead of Queensway development.
• C$155M initial capital funded substantially by Hammerdown cash flow enables Queensway advancement without significant equity raises.
• 2.40 g/t indicated grade at Queensway substantially exceeds typical open-pit economics, providing buffer against cost inflation or price volatility.
• 4.3km resource within 110km mineralized trend, plus new discoveries like Dropkick, offer multi-million-ounce expansion potential.
• Maritime infrastructure (Pine Cove mill, Nugget Pond HGP) secures processing capacity while experienced development teams de-risk execution.
• Tier-1 Newfoundland location with established infrastructure, skilled workforce, and mining-supportive government minimizes non-technical risks.

New Found Gold's strategic combination with Maritime Resources transforms the company from a pure exploration story into an emerging producer with near-term cash flow, established infrastructure, and district-scale exploration potential. The transaction creates a unique investment profile: immediate production from Hammerdown in 2026, Queensway Phase 1 production in 2027, and ongoing high-grade discoveries like Dropkick demonstrating resource expansion potential across a 110-kilometer mineralized trend.

The investment case rests on multiple value drivers converging over the next 18-24 months. Hammerdown's ramp-up to 50,000 ounces annual production provides near-term cash flow and de-risks the development timeline. Queensway's low-capital Phase 1 approach, utilizing Maritime's existing mill infrastructure, minimizes funding requirements while maintaining optionality to expand through internally-generated cash flow. Continued exploration success, evidenced by the Dropkick expansion and Blue Jay discovery, supports resource growth beyond the initial 1.39 million indicated ounce estimate.

For investors seeking exposure to Canadian gold development, New Found Gold offers differentiated characteristics: high-grade resources in a Tier-1 jurisdiction, experienced mine-development leadership, strong treasury position (C$67.5 million as of June 30, 2025), and significant institutional backing including 18% ownership by Eric Sprott and 11% by Dundee Corporation post-transaction. The company trades at a C$838 million market capitalization (September 29, 2025), representing a compelling entry point for investors anticipating re-rating catalysts from Hammerdown production startup, Queensway development milestones, and continued exploration success across the district.

TL;DR

New Found Gold combines near-term production (Hammerdown 2026), low-capital development (Queensway Phase 1 requires only C$155M, funded by Hammerdown cash flow), high-grade resources (2.40 g/t indicated at Queensway), and district-scale exploration upside (110km mineralized trend with new Dropkick discovery at 29.2 g/t over 9.25m). Strategic Maritime acquisition secures processing infrastructure while experienced leadership advances dual-asset portfolio in Tier-1 Newfoundland jurisdiction. C$838M market cap offers compelling value ahead of multiple re-rating catalysts through 2026-2027.

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