Ulaanbaatar, Mongolia--(Newsfile Corp. - May 16, 2022) - Steppe Gold Limited (TSX: STGO) (OTCQX: STPGF) (FSE: 2J9) ("Steppe Gold" or the "Company") is pleased to announce its financial results for the three months ended March 31, 2022, following recent positive operational updates.

First Quarter Highlights (all figures in US$000's unless stated otherwise)

• Revenue for the three months ended March 31, 2022, was $5,457 on sales of 2,893 gold ounces and 248 silver ounces with average realized prices per ounce of $1,850 and $24 respectively.
  
  
• Operating income from mine operations, before depreciation and depletion was $2,814.
  
  
• Consolidated group adjusted EBITDA for the quarter was $1,135.
  
  
• During the three months ended March 31, 2022, 69,613 tonnes of ore were mined and 192,680 tonnes of ore were stacked on the leach pad with an average gold grade of 1.83 g/t and an average silver grade of 18.33 g/t.
  
  
• As at March 31, 2022, cash and restricted cash amounted to $59,736; total bank and other debt (excluding convertible debentures) was $70,986 and net debt was $11,250.
  
  
• Progress has been made on the construction and installation of the new fixed crushing unit and it is expected to be operational by summer 2022. This is the first major equipment installation for the fresh rock phase, and it will also allow the Company to drive higher crushing rates in the remaining oxide phase with ample excess capacity in the plant.

Outlook

With the resumption of supply of key reagents in March 2022, and the Compay's recent operational update that highlighted ramped-up production levels, the focus for the balance of 2022 will be to continue to maximize oxide production from the substantial inventories on hand. Production will ramp up gradually as the reagent supplies build up and more cells are under leach. Exploration efforts have identified high grade zinc and lead and further exploration and pit optimisation work in 2022 will be directed at expanding the resource at ATO.

With the 2021 Gold 2 Loan package now in place and production resumed, the Company also plans to move forward with securing the balance of the Phase 2 Expansion project finance.

The Company's consolidated financial results for the three months ended March 31, 2022 have been filed on SEDAR. The full version of the condensed interim consolidated financial statements and associated management's discussion & analysis can be viewed on the Company's website at www.steppegold.com or under the Company's profile on SEDAR at www.sedar.com.

Steppe Gold Limited

Steppe Gold is Mongolia's premier precious metals company.

For Further information, please contact:
Bataa Tumur-Ochir, CEO and President

Shangri-La office, Suite 1201, Olympic Street
19A, Sukhbaatar District 1,
Ulaanbaatar 14241, Mongolia
Tel: +976 7732 1914

Non-IFRS Performance Measures

EBITDA is defined as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as adjusted earnings before interest, taxes, depreciation and amortization. Further details of Non-IFRS Performance Measures noted above can be found in the Company's management's discussion & analysis.

Cautionary Note Regarding Forward-Looking Statements

The above contains forward-looking statements that are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward-looking statements. Factors that could cause such differences include: changes in world commodity markets, equity markets, costs and supply of materials relevant to the mining industry, change in government and changes to regulations affecting the mining industry. Forward-looking statements in this release include, among other things, statements regarding the trading of the common shares and business, economic, and political conditions in Mongolia. Although we believe the expectations reflected in our forward-looking statements are reasonable, results may vary, and we cannot guarantee future results, levels of activity, performance or achievements. We disclaim any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/124123