West Red Lake Gold Strengthens Balance Sheet with $20M Financing and More High-Grade Drill Results

• West Red Lake Gold Mines recently closed an upsized $20 million bought deal public offering. The financing bolsters the company's treasury as it advances its flagship Madsen Gold Mine project.
• The company reported high-grade drill results from the South Austin zone at its Madsen Mine project, including 114.26 g/t Au over 10.6m and 77.90 g/t Au over 3m. These results highlight the potential to expand resources and further define the deposit.
• West Red Lake Gold filed a positive pre-feasibility study for its wholly-owned Madsen Mine project which outlines an after-tax net present value of $315 million and average annual free cash flow of $70 million over an 8.5 year mine life.
• The current resource at the Madsen deposit stands at an indicated 1.65 million ounces at 7.4 g/t Au with an additional inferred resource of 0.37 million ounces at 6.3 g/t Au.
• West Red Lake Gold Mines is focused on advancing the Madsen Mine and its broader 47km² land package in the renowned Red Lake Gold District of Ontario. The Red Lake district has produced over 30 million ounces of gold historically and is home to some of the richest gold deposits in the world.

West Red Lake Gold Mines Ltd. (TSXV:WRLG) is a mineral exploration company focused on advancing and developing its flagship Madsen Gold Mine in the well-endowed Red Lake Gold District of Northwestern Ontario, Canada. The Red Lake district has produced over 30 million ounces of gold historically from high-grade deposits.

$20 Million Financing Strengthens Madsen Mine

West Red Lake Gold announced the closing of its upsized $20,053,083 bought deal public offering. The company issued 23,628,000 charity flow-through units at a price of $0.8487 per unit. Each unit consists of one flow-through common share and one warrant exercisable at $0.90 for 36 months.

The proceeds will be used to incur Canadian development expenses on the company's assets. Commenting on the financing, Shane Williams, President and CEO stated:

"We were happy to welcome significant interest to this financing, which shows support for West Red Lake Gold and highlights demand from investors for companies moving into production in an excellent gold market. A strong treasury bolsters our abilities at site during ramp up, mitigates potential risks, and supports investor confidence."

High-Grade Drill Results From South Austin Zone

West Red Lake Gold reported impressive new drill results from the South Austin zone at its Madsen Mine project on February 26, 2025. Highlighted intercepts include:

• 114.26 g/t Au over 10.6m, including 1,609.26 g/t Au over 0.7m
• 77.90 g/t Au over 3m, including 233.20 g/t Au over 1m
• 24.48 g/t Au over 8.5m, including 53.76 g/t Au over 2.9m
• 29.22 g/t Au over 7m, including 48.87 g/t Au over 4m
• 21.12 g/t Au over 5m, including 103.39 g/t Au over 1m

The South Austin zone currently hosts an indicated resource of 474,600 oz at 8.7 g/t Au with an additional inferred resource of 31,800 oz at 8.7 g/t Au. Shane Williams commented on the results:

"As we continue to define and expand this deeper portion of South Austin from the 08-4447 drill bay, it's very encouraging to see consistent increases in grade and thickness of the mineralized zone as the drilling program advances. This success speaks to our Geology team's understanding of the orebody and systematic approach to how data is received, processed and interpreted to ensure the next round of drilling is directed exactly where it needs to be."

Pre-Feasibility Study Filed for Madsen Mine

On February 18, 2025, West Red Lake Gold announced the filing of its independent pre-feasibility study technical report for the Madsen Mine project. Key highlights from the study include:

• After-tax NPV (5% discount) of $315 million and IRR of 42% at $1,675/oz gold
• Average annual free cash flow of $70 million and AISC of $1,050/oz over an 8.5 year mine life
• Probable mineral reserves of 1.12 million ounces at 7.7 g/t Au
• Initial capex of $144 million with after-tax payback period of 2.3 years
• Peak production of 133,000 oz/year with average annual production of 101,000 oz

The Madsen Mine currently hosts an indicated resource of 1.65 million ounces at 7.4 g/t Au and an inferred resource of 0.37 million ounces at 6.3 g/t Au, inclusive of reserves. The PFS demonstrates the potential for a robust underground mining operation at Madsen.

For Investors

In addition to the Madsen project, West Red Lake Gold's land holdings in the district cover 47 km² and include the 100% owned Rowan Property, host to three past-producing gold mines - Rowan, Mount Jamie, and Red Summit.

The Red Lake district is one of the most prolific gold regions in Canada with over 30 million ounces of past production from high-grade zones, including some of the world's richest gold deposits. With an expanded resource base, a positive PFS, and ongoing exploration upside, West Red Lake Gold is well positioned to create value through advancing the Madsen Mine project back into production in the near-term.

For investors looking for exposure to a high-grade gold development story in a world-class mining jurisdiction, West Red Lake Gold Mines appears to tick a lot of boxes. With a strengthened balance sheet, the company is sufficiently funded to continue resource expansion, exploration drilling, and development work to further advance Madsen towards a construction decision.