Steps To Operate Pan and Gold Rock In Unison Move Ahead

VANCOUVER - Tim Warman, Chief Executive Officer of Fiore Gold Ltd., said, "FY2020 was an excellent year for all Fiore Gold stakeholders. Pan generated record results, most notably net income of $18.0 million, $0.18 earnings per share and operating cash flow of $24.3 million. We also generated $15.9 million of free cash flow in 2020 despite considerable investment in Pan and Gold Rock drilling, as well as the on-going leach pad expansion at Pan. More importantly, our recently announced resource and reserve estimate reflects a two-year mine life extension at the Pan Mine, ensuring we will mine well into 2025. With positive drill results at the adjacent Gold Rock project and a significant resource update at our Golden Eagle project, we continue take tangible steps toward achieving our goal of operating Pan and Gold Rock in unison, creating the only multi-asset, 100% US domestic gold producer."

Full-year gold production of 46,031 ounces, an 11% increase over the preceding year and within guidance of 45,000-48,000 ounces, with gold sales of 46,334 gold ounces at an average realized price of $1,681 per ounce. The full-year mined ore production of 14,961 tons per day at a stripping ratio of 1.5 and grade of 0.015 ounces/ton, all measures within or better than guidance. The Company consolidated AISC per ounce sold of $1,148, Pan Mine AISC per ounce sold of $1,026 and cash costs per ounce sold of $947; and Recorded annual revenues of $77.9 million with mine operating income of $26.9 million.

The Generated Pan operating cash flow of $31.7 million and consolidated operating cash flow of $24.3 million, compared to $10.0 million and $4.5 million respectively in 2019, and continued to strengthen our balance sheet with cash of $23.2 million, an increase of $15.9 million relative to reported cash at September 30, 2019, and net working capital of $40.0 million as of September 30, 2020. The Pan stand-alone operating income of $26.8 million and consolidated operating income of $19.6 million, with net income of $18.0 million, compared to $2.4 million in 2019. There were 297,672 man-hours in the fiscal year 2020 with zero lost-time injuries. The operations team at Pan received the Small Mine Safety Award from the Nevada Mining Association for the fifth consecutive year. Mining was declared an essential business in Nevada and the Pan Mine continues to operate with strict protocols in place focused on protecting the health and safety of our employees

2020 Organic Growth Highlights

Warman said, “At Pan, we completed an exploration drilling program of 21,741 meters (71,330 feet) and announced an updated reserve, resource and life of mine plan that extended the mine life by two years into 2025. At Gold Rock, results of a Preliminary Economic Assessment (PEA) demonstrated positive economics with opportunities to further enhance value. Following the completion of the Gold Rock PEA, we initiated a program of resource expansion, metallurgical, geotechnical and condemnation drilling in support of a Gold Rock Feasibility Study. First drill results were announced subsequent to year-end, headlined by 48.8 meters of 2.17 g/t gold and 32.0 meters of 1.41 g/t gold. At our third project, Golden Eagle, in Washington State, we announced a 2.0 million ounce measured and indicated resource. For Q4 there was gold production of 12,432 ounces, gold sales of 12,455 gold ounces at an average realized price of $1,920 per ounce. The Q4 mined ore production of 15,489 tons per day with the stripping ratio reducing as guided to 1.1 and grade of 0.015 ounces/ton, ore tons mined better than plan due to positive ore reconciliation. Recorded quarterly revenues of $23.9 million with mine operating income of $10.9 million.”