Ulaanbaatar, Mongolia--(Newsfile Corp. - August 15, 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 June 30, 2022.

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

• Revenue for the three months ended June 30, 2022, was $17,237 on sales of 8,907 gold ounces and 717 silver ounces with average realized prices per ounce of $1,933 and $22 respectively.
  
  
• Operating income from mine operations, before depreciation and depletion was $9,950.
  
  
• Consolidated group adjusted EBITDA for the quarter was $7,939.
  
  
• Site All in Sustaining Cost was $811 per ounce sold for the three months ended June 30, 2022.
  
  
• During the three months ended June 30, 2022, 502,572 tonnes of ore were mined and 237,603 tonnes of ore were stacked on the leach pad with an average gold grade of 2.04 g/t and an average silver grade of 12.17 g/t.
  
  
• As at June 30, 2022, cash and restricted cash amounted to $40,384; total bank and other debt (excluding convertible debentures) was $51,562 and net debt was $11,178.
  
  
• The construction and installation of the new fixed crushing unit is expected to be completed by September 2022. This is the first major equipment installation for Steppe Gold's Phase 2 Expansion, which will also allow the Company to drive higher crushing rates in the remaining oxide phase.
  
  
• Major ongoing works include the fuel storage and camp expansion. Plant design for Phase 2 is scheduled to commence soon. 
  
  
• Ramp-up at Phase I continues with July gold production of 3,693 oz.

Outlook

The focus for the balance of 2022 will be on maximizing gold production from the leach pad and continuing to work on operational efficiencies and strengthening supply chain logistics at the ATO Gold Mine.

The Company has built up a significant inventory of precious metals and is working hard to maximize the yield from this inventory. With planned revenues from gold production for the balance of 2022, the Company aims to reduce or refinance its debt obligations in 2022 and progress discussions on project financing for the Phase 2 Expansion that is already underway.

The Company's consolidated financial results for the three months ended June 30, 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/133868