Goldfields has potential to become a highly profitable gold mine supported by a Preliminary Economic Assessment produced by Ausenco Engineering Canada Inc. (October 31, 2022)

Project Summary

• 100% owned
• Located approximately 13 kilometres south of Uranium City in northern Saskatchewan
  • Historical mining area with established infrastructure, including a road and hydro-powerline to site
  • Nearby facilities and services in Uranium City include bulk fuel, civil contractors and a commercial airport
• The Project has a valid development permit for an open-pit mine and mill development is expected to facilitate the timeline towards construction and operations
• Mineral Resource (effective date September 1, 2022) for Box and Athona:
  • 979,900 ounces of gold in the Indicated category (23.2 million tonnes at an average grade of 1.31 g/t gold)
  • 210,800 ounces of gold in the Inferred category (7.1 million tonnes at an average grade of 0.92 g/t gold)
• Preliminary Economic Assessment (effective date October 31, 2022) (“2022 PEA”) provides a base case assessment for developing the Goldfields mineral resource by conventional open pit mining methods, and gold recovery with a standard free milling flowsheet. Highlights include:
  • Robust economics with after-tax net present value (“NPV”) (discount rate 5%) of C$285M, internal rate of return (“IRR”) of 35.2% and payback of 1.7 years estimated with gold price of US$1,650 per ounce
  • Average annual gold production of 101,000 ounces over life of mine (“LOM”), with an average of 122,000 ounces per year in the first 4 years
  • 8.3 year LOM producing 835,000 ounces of gold
  • Average cash cost of US$778/oz and all-in sustaining cost (“AISC”) of US$889/oz gold
  • Initial capital expenditure of C$234M, including C$34M contingency
  • Mill capacity of 7,500 tonnes per day (2.7 Mt per annum) with average gold recovery of 95.3%
  • Over 80% of mineable ounces coming from the Box deposit
  • A total of 98.6% of the Mineral Resources subset used in the PEA are classified as Indicated.

For further 2022 PEA details and important technical & financial disclosures refer to the Company’s news release dated November 1, 2022, and the NI 43-101 2022 PEA Technical Report with an effective date of October 31, 2022, also filed on SEDAR+ (sedarplus.ca).

Summary of Project Economics

Goldfields Location Map:

Goldfields Site Layout (2022 PEA):

Goldfields Simplified Process Flowsheet (2022 PEA):

Qualified Persons

The 2022 PEA has been prepared by the following “Qualified Persons”, all of whom are considered to be independent consultants of Fortune Bay for the purposes of section 1.5 of NI 43-101:

• Kevin Murray, P. Eng., Metallurgy and Mineral Processing (Ausenco)
• Scott Elfen, P.E., Tailings Storage Facility (Ausenco)
• Davood Hasanloo, P.Eng., Water Management (Ausenco)
• Marc Schulte, P. Eng., Mining (MMTS)
• Cliff Revering, P. Eng., Mineral Resource Estimation (SRK)
• Mark Liskowich, P. Geo., Environmental, Permitting and Social Considerations (SRK)

The technical and scientific information on this website has been reviewed and approved by Dale Verran, M.Sc., P.Geo., Chief Executive Officer of the Company, who is a Qualified Person as defined by NI 43-101. Mr. Verran is an employee of Fortune Bay and is not independent of the Company under NI 43-101.

Cautionary Statement Regarding Forward-Looking Information

Information set forth on this website page contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management's current estimates, beliefs, intentions, and expectations. They are not guarantees of future performance. Words such as “expects”, “aims”, “anticipates”, “targets”, “goals”, “projects”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “continues”, “may”, variations of such words, and similar expressions and references to future periods, are intended to identify such forward-looking statements, and include, but are not limited to, statements with respect to: the results of the PEA, including future Project opportunities, future operating and capital costs, closure costs, AISC, the projected NPV, IRR, timelines, permit timelines, and the ability to obtain the requisite permits, economics and associated returns of the Project, the technical viability of the Project, the market and future price of and demand for gold, the environmental impact of the Project, and the ongoing ability to work cooperatively with stakeholders, including the local levels of government. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward- looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information includes, but is not limited to, the Company’s objectives, goals or future plans, statements, exploration results, potential mineralization, the estimation of mineral resources, exploration and mine development plans, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to failure to identify mineral resources, failure to convert estimated mineral resources to reserves, the inability to complete a feasibility study which recommends a production decision, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, inability to fulfill the duty to accommodate First Nations and other indigenous peoples, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, and those risks set out in the Company’s public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.