Signal Gold Positioned to Unlock Value at Historic Nova Scotia Gold Deposit

• Signal Gold is developing a high-grade, historic gold deposit called Goldboro in Nova Scotia, Canada.
• They have delineated 3.1 million ounces of gold resources and 1.1 million ounces of reserves with an average grade of 2.26 g/t gold.
• A feasibility study shows the project has an NPV of $328 million at $1,600 gold prices. The project could produce 100,000 ounces per year for 11 years.
• The company has received environmental approval and is working on final permits to start construction in early 2023, with the first gold pour targeted for Christmas 2025.
• The experienced management team has built 7 mines previously and has permitting, finance and construction advisors engaged to de-risk execution.

Signal Gold Inc. is advancing the permitting and development of its high-grade Goldboro gold project in Nova Scotia, Canada. With robust economics, strong ESG credentials and an experienced team, Signal Gold offers investors near-term production potential from an overlooked gold district.

The Goldboro project covers the historic gold mining district of the same name in eastern Nova Scotia, where 67 gold-bearing veins were mined from the late 1800s to the early 1940s. Past production was approximately 100,000 ounces at an average recovered grade of 14 g/t gold.

Signal Gold acquired the project in 2017 and has since delineated an open-pittable deposit of 3.1 million ounces of measured and indicated resources grading 2.8 g/t gold. This includes proven and probable reserves of 1.1 million ounces at a diluted grade of 2.26 g/t gold.

"This is the highest grade undeveloped open pit on the east coast of Canada," said Signal Gold President and CEO Kevin Bullock in a recent company presentation.

Robust Economics Demonstrated in Feasibility Study

A 2021 feasibility study outlined a low-cost, 11-year open-pit mining operation at Goldboro producing approximately 100,000 ounces of gold per year. At a gold price of US$1,600 per ounce, the study forecast:

• After-tax NPV of US$328 million at a 5% discount rate
• After-tax IRR of 30%
• All-in sustaining costs of US$850 per ounce
• Total capital costs of US$271 million

"At today's price of gold, there is a margin of $1,200 an ounce."

The study envisions processing run-of-mine material at 4,000 tonnes per day through a conventional carbon-in-leach (CIL) plant located between the two proposed open pits. Average gold recoveries are estimated at 96%.

While the feasibility study focused only on open-pit resources, Signal Gold believes there is strong potential to add high-grade underground mineralization. An earlier PEA in 2020 estimated an after-tax NPV of $664 million including underground mining.

Advancing Towards a Construction Decision

With robust economics and extensive technical studies completed, Signal Gold is positioned to make a construction decision on Goldboro pending receipt of remaining permits and project financing.

As Bullock explained: "We plan to be shovel ready in February of next year (2024)."

The company recently received federal and provincial approval for its environmental assessment, a crucial permit for the project. Additional permits for construction and operations are in progress.

At the same time, Signal Gold has engaged expert consultants to advise on project debt financing and recruited additional talent to build its owner's team. The company aims to finance Goldboro on a 2/3 debt and 1/3 equity basis.

"We have signed over 25 confidentiality agreements with debt providers," noted Bullock.

Targeting First Gold Pour by Late 2025

Signal Gold has set an ambitious target for the first gold production at Goldboro - a "Christmas present in 2025."

To meet this timeline, the company plans to commence construction in early 2023 following receipt of all permits and project financing. The initial mine life is estimated at 11 years, with opportunities to expand resources and production profile.

When in full operation, Goldboro is expected to create roughly 250 direct jobs in rural Nova Scotia while generating substantial economic benefits. Signal Gold is engaging extensively with local Mi'kmaq communities and values strong stakeholder relations.

Veteran Team to Execute on Development

Backed by decades of mining experience, Signal Gold's management team is well-positioned to advance Goldboro to production.

CEO Kevin Bullock has over 35 years of industry experience including building 7 mines across the Americas and Africa. As he noted:

"I started as an underground miner...I've been running companies for about 20 years now as CEO."

Other key executives and board members also possess deep technical knowledge and have managed numerous mine developments. This experience will prove invaluable as Signal Gold executes on its plan. To derisk operations, the company intends to utilize an experienced mining contractor to build and operate Goldboro. This allows Signal Gold to leverage proven expertise while focusing capital on the core project.

Unlocking Value in a Historic Gold District

With an established multi-million ounce gold deposit amenable to open-pit mining, Signal Gold offers investors a unique exposure to Atlantic Canada's mining potential.

The resource appears open to expansion, as Bullock stated:

"It's completely open at depth and we plan to continue adding to this current world-class deposit."

Trading at a fraction of its fundamental NPV, Signal Gold represents a compelling opportunity to finance and participate in the district's revitalization. Successful execution at Goldboro could re-rate the stock and generate substantial shareholder value.

The Investment Thesis for Signal Gold

• Robust economics demonstrated with after-tax NPV of $328M and 30% IRR in the feasibility study
• Key environmental permit received; positioned for construction decision in 2023
• Targeting first gold pour by late 2025 with an initial 11-year mine life
• Strong potential to expand existing 3.1Moz open-pittable resource
• Experienced management team with a track record of building 7 mines
• Undervalued relative to project NPV; rerate potential as milestones met