Signal Gold Completes Sale of Point Rousse Project to Maritime Resources, Positions for Growth

About Signal Gold

Signal Gold Inc. (TSX:SGNL)(OTCQX:SGNLF) is a Canadian gold mining company focused on developing its 100% owned Goldboro Gold Project located in Nova Scotia, Canada.

The Goldboro Gold Project currently hosts mineral reserves supporting an approximately 11-year open pit mine life with average annual gold production of 100,000 ounces at an average diluted grade of 2.26 grams per tonne. According to a Feasibility Study released January 11, 2022, the project demonstrates robust economics including life-of-mine all-in sustaining costs of $707/oz and an after-tax NPV5% of $447 million at $1625/oz gold.

On August 3, 2022, the Goldboro Gold Project received its key environmental assessment approval from the Nova Scotia provincial government. This major permit enables Signal Gold to commence site-specific permitting processes including its Industrial Approval, Crown Land Lease, and Mining Lease applications.

The Goldboro deposit also demonstrates excellent potential for further mineral resource expansion, particularly along strike to the west and at depth. A future study will assess the potential to upgrade and expand mineable underground mineral resources to extend the current 11-year mine life.

With permitting progressing on a Feasibility-stage project and a clear path to production, Signal Gold is positioned to deliver significant upside for investors as Goldboro advances toward construction and operation.

The Sale of Point Rousse

On August 21, 2023, Signal Gold announced the completion of the sale of its Point Rousse Project on the Baie Verte Peninsula in Newfoundland to Maritime Resources Corp. The transaction included the transfer of all mineral licenses, assets, equipment, and reclamation liabilities associated with Point Rousse.

In exchange, Signal Gold received $3 million in cash and approximately $1 million in Maritime common shares, valuing its stake at 23,970,218 shares. Signal Gold retains exploration rights to the prospective Tilt Cove gold-copper project in the Baie Verte area.

According to President and CEO Kevin Bullock, "We believe the combination of Point Rousse with Maritime's Hammerdown Project will generate significant value for all stakeholders and we are pleased to be a shareholder of Maritime going forward."

The Strategic Rationale

The sale of Point Rousse allows Signal Gold to focus 100% on advancing its core Goldboro Gold Project. Goldboro has a robust feasibility study and recently received a key environmental assessment approval from the Nova Scotia government.

The sale also provides capital to strengthen Signal Gold's balance sheet as it moves Goldboro into permitting and project financing.

The ownership stake in Maritime offers Signal Gold and its shareholders continued exposure to the upside potential of Point Rousse under new operatorship. As a major shareholder, Signal Gold is well positioned to benefit from any synergies and growth in production that Maritime can achieve.

Advancing the Goldboro Gold Project

With the sale of Point Rousse complete, Signal Gold is focused on site-specific permitting for Goldboro including securing the Industrial Approval, Crown Land Lease, and Mining Lease. Concurrently, the company can accelerate project financing discussions.

The Goldboro Gold Project stands out for its long mine life, low costs, and significant expansion potential. The recent Feasibility Study outlined:

• 11-year open pit mine life with 2.0 million ounces of gold produced
• Life of mine AISC of $707/oz
• Initial capital costs of $270 million
• NPV5% of $447 million and IRR of 33% at $1625/oz gold

The deposit also has strong resource growth upside, particularly to the west and at depth. Further exploration and underground mining potential can extend the mine life substantially beyond 11 years.

The Next Leg of Growth for Investors

With permitting progressing and a construction decision potentially 18-24 months out, Signal Gold offers investors excellent leverage to the long-term gold price.

As Goldboro moves down the development pipeline, investors can expect strong share price appreciation as the company's value shifts from exploration to near-term development and production.

For investors seeking gold leverage and exposure to Atlantic Canada's next major gold mine, Signal Gold represents a compelling opportunity.