Positive Gabbs Updated Preliminary Economic Assessment With LOM Production Of 1.86 Million Gold Equivalent Ounces

VANCOUVER - P2 Gold Inc. announced a positive Updated Preliminary Economic Assessment (PEA) on its Gabbs Project located on the Walker-Lane Trend in Nevada. The Updated PEA was prepared with Mineral Resource and mining contributions in accordance with National Instrument 43-101, Standards of Disclosure for Mineral Projects (NI 43-101).

Most notable is the total projected life-of-mine (LOM) revenue of US$3.43 billion at Spot Metal Prices over 13.4-year mine life. LOM gold equivalent production of 1.86 million ounces (79.1 million tonnes @ 0.54 g/t gold, 1.28 g/t silver and 0.27% copper) at Spot Metal Prices, with LOM production of 1.206 million ounces of gold, 1.742 million ounces of silver and 327 million pounds of copper. The average annual gold equivalent production of 139,000 ounces at Spot Metal Prices. Estimated pre-production capital cost, including contingencies, of US$277.7 million with payback of 3.0 years at Spot Metal Prices.

"We have updated the Gabbs June 2023 PEA to include the development of the sulphide mineralization in addition to oxide mineralization and an increase in the mining rate to six million tonnes per year to provide for the development of a mid-sized mine," said, Joe Ovsenek, President and CEO. "Life-of-Mine production at Gabbs is now expected to be close to two million ounces of gold equivalent with average annual production expected to be close to 150,000 ounces of gold equivalent. The updated PEA contemplates heap leach processing as the first phase of operations for the initial five years to reduce upfront capital requirements and project risks. Heap leach operations will pay for preproduction capital and a significant portion of mill capital prior to the commencement of mill processing in year six. The Gabbs Feasibility Study, expected to be initiated soon, will focus on optimizing the mine plan and capex, evaluating contract mining and completing additional metallurgy, which we believe will significantly increase the rate of return. What's more, Gabbs has considerable Mineral Resource expansion potential for both oxides and sulphides, which is why we expect Gabbs to be a long-life gold and copper mine."

The Updated PEA is preliminary in nature, includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that the Updated PEA will be realized. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The Company has not defined any Mineral Reserves on the Gabbs Project.