Permitting & Partnering to Unlock Castelo de Sonhos Upside for TriStar Gold

• Tristar Gold is advancing its Castelo de Sonhos gold project in Brazil through permitting, with the preliminary license expected in Q1 2024.
• A recent community meeting went very well with good attendance and few questions, indicating strong local support.
• While costs have increased, TriStar believes higher gold prices offset this and project economics remain positive. They see no need for an updated PFS at this time.
• After permitting, TriStar plans to bring in a construction partner, likely a 20% equity holder, to leverage their technical expertise in building the mine.
• TriStar has $5.5 million cash to get through permitting and make a construction decision, but may look to merge to manage costs and risks.

TriStar Gold Advancing Flagship Brazil Project

TriStar Gold is working to advance its wholly-owned Castelo de Sonhos project in Pará State, Brazil through permitting, with the key preliminary license expected early next year. Located in a mining-friendly jurisdiction with good infrastructure, the project benefits from strong community and government support.

With permitting progressing, TriStar CEO Nick Appleyard expects the preliminary installation license, which formally approves the environmental impact assessment, in Q1 2024. A recent community meeting saw higher than expected attendance and few concerns were raised about the 10,000 tonne per day proposed open pit operation.

“The town hall meeting went fantastic - much better attended than we anticipated it was going to be which is good because you want as many people there possible,” said Appleyard.

Interview with President & CEO, Nick Appleyard

Path to Production

Receipt of the preliminary permit will mark a major de-risking milestone for TriStar. The company will then look to bring in an experienced mine developer as a partner to leverage their technical expertise and guide Castelo de Sonhos into production.

“We have the starting of our operations, with Marcus there as our COO. There’s a lot of value in having someone who’s built mines before as a partner,” explained Appleyard. He believes a 20% equity holder who also sits on an operating committee would provide an optimal balance.

Brazil-focused mining companies looking to diversify country risk view the country as an increasingly attractive destination given rising resource nationalism concerns in parts of South America. Recent on-time, on-budget mine builds by G-Mining at the TZ mine highlight Brazil’s strong in-country capabilities.

De-Risked Economics

A 2021 Preliminary Feasibility Study outlined robust economics for Castelo de Sonhos, with an after-tax IRR of 28% and NPV of US$210 million at a $1,550 per ounce gold price assumption. While TriStar recognizes capital and operating expenditures have increased market-wide, Appleyard believes these are offset by higher gold prices and sees no need for an updated economic study at this time.

“If we used $1,700/oz, we'd be at net-net. But if we use a little higher (price) than that we'd be ahead of the game. So we’re seeing it quite positively right now,” he stated. Applying a US$150 per ounce inflation adjustment suggests ongoing 28-30% IRR potential.

Funded Through Key Milestones

This September, TriStar completed an equity raise of C$3.2 million to provide financial flexibility. With the current C$5.5 million treasury, Appleyard states “We're good to get through this [permitting] process and then get through the decision-making stage that will come after.”

The funding buffers copper exposure over the next 12-months as Castelo de Sonhos advances towards a construction decision guided by a new partner. TriStar may also consider M&A opportunities to consolidate technical capabilities and manage costs. Taking Castelo into production leverages significant geological upside beyond the current 17Mt reserve. Ongoing exploration and project optimization work aim to steadily improve project fundamentals further.

With permitting progressing smoothly and funding secured well into 2024, TriStar Gold is positioned to make near-term construction decisions guided by a partner with Brazilian mine build expertise. In a country favoring mining investment, Castelo de Sonhos offers investors quality leverage to higher gold prices.

The Investment Thesis for TriStar Gold

• Key preliminary construction permit expected within months.
• Strategic partner to de-risk build phase will be secured. Look for 20% equity plus technical support.
• TriStar’s existing PFS economics are expected to improve at higher gold prices.
• Upside not captured in current 1.4 g/t reserve grade or 17Mt resource.
• Exploration upside on wholly-owned 188km2 land package.
• Brazil offers political stability and infrastructure versus peers.

TriStar Gold provides investors with quality gold leverage as Castelo de Sonhos advances smoothly towards a near-term construction decision and ultimately gold production in a supportive mining jurisdiction. The current share price offers an attractive risk/reward entry point.