Precipitate Gold - Strategic Partnerships and Cash Cushion Provide Multiple Shots on Goal

• Precipitate Gold (PRG) is a junior gold exploration company focused in the Dominican Republic, with its Pueblo Grande project located adjacent world-class Pueblo Viejo mine.
• The company has an earn-in agreement with Barrick Gold on its Pueblo Grande project where Barrick has spent $5M of $10M required by 2026 to earn a 70% interest, and is drilling the project.
• PRG sold some non-core Pueblo Grande claims to Barrick for $5M in 2020 to be used for infrastructure.
• PRG has $5M cash and is actively seeking to acquire a new gold or copper project to explore itself.
• Near-term catalysts include exploration results from Barrick, the potential acquisition of a new project, and the resolution of permitting challenges in the Dominican Republic that could reignite interest in the region.
  

Pueblo Grande Earn-In with Barrick

Precipitate Gold's flagship asset is its Pueblo Grande project, strategically located adjacent to Barrick Gold's world-class Pueblo Viejo gold mine. PRG signed an earn-in agreement with Barrick, whereby Barrick can earn a 70% interest in the project by spending US$10 million on exploration and delivering a pre-feasibility study by April 2026.

To date, Barrick has spent approximately US$5 million on the project over the past five years. Drilling has intersected alteration and rock types indicative of the high sulphidation epithermal gold systems being targeted. While no economic intercepts have been announced yet, PRG CEO Jeff Wilson sees encouraging signs:

"Drilling has been going quite well. They haven't intersected the big booming intersections that we were hoping for, but they have seen the right kinds of things in the rocks. The drilling is intersecting some of the right kind of alteration that would be the right sort of host rock for the type of mineralization that we're looking for."

Barrick recently paused drilling to conduct additional geophysical surveys and plans to resume with a second drill rig in the coming months. Meanwhile, earlier stage exploration work continues on other targets within the large Pueblo Grande land package.

Given Barrick's significant US$1 billion planned investment to expand the adjacent Pueblo Viejo mine, securing additional mineral resources in the area could be highly strategic. The earn-in deal is structured as all-or-nothing, with Barrick earning no interest if the 70% threshold is not met by 2026. This provides PRG with strong optionality on a discovery.

Interview with President & CEO Jeffrey R. Wilson

Infrastructure Asset Sale to Barrick

Highlighting the strategic nature of the Pueblo Grande project, Precipitate Gold was able to monetize certain non-core claims to Barrick in 2020. PRG CEO Jeff Wilson explained:

"Barrick came to us and said, there's some ground here within PRG's project that we know is sterile, nothing there, seen prior drilling. We need it for infrastructure purposes. Would you sell it to us? We got a $5 million US check from Barrick to relinquish that ground for infrastructure."

This non-dilutive capital provides PRG a significant cash cushion to weather the current challenging market and fund exploration on other projects. It also demonstrates Barrick's long-term commitment to the area.

Seeking New Opportunities

With approximately C$5 million in cash, Precipitate Gold is actively seeking to acquire and explore a new gold or copper project. The company is jurisdictionally agnostic, having assessed opportunities across the Americas and Europe. Key criteria include:

• Potential for sizable discovery
• Located in mining-friendly jurisdictions with major producers
• Viable pathway from discovery to eventual takeover
• Attractive deal terms for PRG to minimize share dilution

PRG's management and board leverage an extensive network to source off-market opportunities. However, the company remains disciplined to avoid overpaying in a still-challenging market for junior explorers. While a new deal has proven elusive so far, PRG's cash position and Pueblo Grande upside provide a foundation to patiently await the right opportunity.

Dominican Republic Mining Jurisdiction

Despite some permitting challenges for PRG's neighbor GoldQuest Mining, the Dominican Republic remains a favorable mining jurisdiction. PRG holds all required exploration permits for its ground. CEO Jeff Wilson highlighted the critical importance of mining to the national economy:

"Barrick's Pueblo Viejo alone is a single largest contributor to GDP, so mining is an absolute necessity in terms of their economy and their need to sort of keep the lights on. The government recognize that as a country."

Barrick's expansion investment and the government's focus on expanding gold production bode well for continued support of the mining industry. Upcoming presidential elections may provide a nearer-term catalysts.

PRG offers speculative investors multiple shots on the goal for a gold discovery in the Dominican Republic. With Barrick funding exploration to earn-in to Pueblo Grande, PRG shareholders retain a 30% carried interest and significant underground for potential new discoveries.

Meanwhile, PRG's C$5 million in cash provides flexibility to acquire and explore a new project on attractive terms. While the company has not rushed into a dilutive deal, its extensive network and mining-friendly jurisdictional focus provide a foundation for potential future success.

Overall, PRG provides a compelling speculative opportunity for patient investors. Continued exploration news flow from Barrick, potential near-term resolution of mining permits in the Dominican Republic, and PRG's own acquisition efforts provide multiple catalysts for a re-rating. However, as a junior explorer, an investment in PRG should be considered high-risk and only as part of a well-diversified portfolio.

The Investment Thesis for Precipitate Gold

• Strategic land position adjacent to world-class gold mine with major producer earning in
• Monetized non-core claims for US$5M to fund exploration and minimize dilution
• C$5M in cash provides flexibility to acquire and explore a new gold-copper project
• Exposure to the mining-friendly and geologically prospective Dominican Republic
• Multiple potential catalysts: Barrick exploration results, Dominican permits, PRG acquisition
• High-risk, speculative opportunity appropriate only for risk-tolerant investors as part of a diversified portfolio

The Dominican Republic remains one of the most prospective but underexplored jurisdictions for gold and base metals. Barrick's Pueblo Viejo mine alone accounts for 20% of national exports. Despite some recent challenges, the government recognizes the critical importance of mining to the economy and is investing in education and community outreach to support the industry's growth.

Pueblo Viejo has "Tier One potential" for resource growth through exploration of the mine property and broader joint venture holdings. Smaller explorers like Precipitate Gold, with strategic land positions and partnerships with major producers, provide speculative exposure to this upside potential.

More broadly, gold exploration and development projects in mining-friendly jurisdictions should benefit from the macro backdrop of economic uncertainty, inflationary pressures, and geopolitical tensions. While the gold price has not yet responded as some expected, the long-term fundamentals for sustained gold demand remain compelling. Exploration success by juniors like Precipitate could attract capital inflows and takeover interest from majors looking to secure development pipelines. However, the sector remains high-risk and volatile, requiring careful stock selection and risk management.