Scotgold Resources Limited - Q3 2022 Production, Sales, and Operations Update Cononish Gold and Silver Mine, Scotland

Scotgold Resources Limited (AIM: SGZ), Scotland's first commercial gold producer, is pleased to provide production, sales and operations update for the three months ended 30 September 2022 ('Q3 2022') for its Cononish Gold and Silver Mine in Scotland ('Cononish').

Production

Q3 2022 gold production totalled 2,004 ounces, achieved revised guidance as set out per the

Operations Update on 22 September 2022

Reduced guidance for Q3 2022 given as a result of the successful but delayed power and ventilation upgrades in the underground mine, which stalled mine development on the waste ramp in September 2022

Nine months to 30 September 2022 gold production totalled 6,759 ounces of gold Gold grades in flotation concentrate of up to 400g/t realised during Q3 2022

Q4 2022 production guidance set at 3,000 - 3,900 ounces of gold

Remain on track to deliver Phase 2/full production at Cononish of 23,500 ounces p.a. run rate of gold

Sales

Q3 2022 gold concentrate shipments totalled 314 tonnes with a sales value of GBP3.4 million

Nine months to 30 September 2022 - gold concentrate shipments totalled 729 tonnes with a sales value of GBP9.7 million

Mining and Processing

4,830 tonnes of ore were delineated from the Cononish underground mine and transferred to the ROM pad

Grade mill feed for processing plant averaged 10.09 g/t of gold

Processing plant gold recovery levels were above 90% Optimisation Initiatives - Mine Development

Underground power and ventilation upgrades completed 28 August 2022 to improve access, operations and increase mining rate and ore extraction

Underground resource definition and grade control drilling commenced early October 2022 to provide the essential information on placement of stopes and in turn deliver c.6,000tpcm ore mining and processing rates in Q1 2023

Risk assessments, planning and the preparation to transition the mine to long hole stoping in

Q1 2023, due to be completed by December 2022, marking another milestone in the development of the underground mine

Optimisation Initiatives - Processing Plant

Incremental debottlenecking of process plant areas such as flotation and tailings filtration completed during Q3 2022 - enhanced gold recoveries and efficiencies beyond management's initial expectations enabling the plant to process feed of c.4,000tpcm prior to installation of tailings thickener

October process plant feed rate production currently above 4,000tpcm rate

Tailings thickener erected in the processing plant - construction well under way, planned commissioning during Q4 2022 to enable smooth implementation inline with increased throughput of ore from debottlenecking initiative

Once the tailings thickener is commissioned, the process plant is estimated to achieve c.5,000tpcm throughput

Further optimisations of process plant tailings filter (adding further filter plates to the tailings filter and minor modifications around the Ball Mill and flotation areas) also planned for Q4 2022/Q1 2023 to further increase throughput of the processing plant to c.6,000tpcm to achieve production levels of 23,500 ounces p.a. run rate of gold

Cononish Exploration

Exploration preparation works underway for 2023 resource drilling campaign to increase life of mine beyond 8.5 years

Scotgold Resources CEO, Phil Day said, 'Q3 2022 has been another period of substantial progress as we continue to implement optimisation initiatives across our underground mining operation and processing plant to ramp up towards 'Phase 2/Full' production at Cononish in 2023. 'As a team we are working collegiately and remain driven as the new year approaches. Q4 2022 production is anticipated to be ahead of Q2/Q3 2022 production levels, and I believe the quarter will mark a significant step change as we progress towards a processing rate of 5,000tpcm, equating to an annualised production of c.20,000 ounces of gold per annum run rate, once the tailings thickener has been commissioned in the processing plant. In tandem underground resource definition and grade control drilling is underway to prepare for long hole stoping to commence in Q1 2023, which will enable the mine to produce ore at the phase 2 production level being 6,000tpcm. From here, final optimisation initiatives will be undertaken in the process plant to deliver a processing run rate of 6,000tpcm, equating to an annualised production run-rate of c.+23,500 ounces of gold, which we are on target to deliver in 2023. 'What differentiates us from our gold peers is the uniqueness of Cononish's orebody. Running an average grade through the processing plant of 12g/t Au year to date 2022, coupled with a forecast low AISC of GBP544 per ounce of gold will place us as one of the highest margins, lowest cost gold producers globally. This coupled with our exploration opportunity in Scotland, I believe ideally places us for growth. I look forward to reporting on production, operational progress and further revenue generation into the New Year.'

Investor Webcast - Wednesday 2 November 2022

The Company will host a live investor webcast via the Investor Meet Company (IMC) on Wednesday 2 November 2022 at 14:00 GMT to discuss the results, followed by an opportunity to ask questions. Investors can sign up to Investor Meet Company for free and add 'Scotgold Resources' via the following link to join the webinar: https://www.investormeetcompany.com/scotgold-resources-limited/register-investor Q3 2022 - Cononish Gold & Silver Mine Production, Sales, and Operations Production

During Q3 2022 production continued in line with the Cononish 2022 mine plan. Scotgold production for the quarter totalled 2,004 ounces of gold and 10,265 ounces of silver from Cononish which met the renewed guidance issued on 22 September 2022. Gold production for the nine months of 2022 totalled 6,759 and 34,528 ounces of silver from Cononish. Whilst Q3 gold production was lower than first forecast due to the successful but delayed commissioning of the underground mine power and ventilation project (which stalled mine development on the waste ramp allowing access to cut and fill stope 3), Q4 2022 production is forecast to be ahead of Q2/Q3 2022. As the Company continues to implement optimisation initiatives in the processing plant and commence long hole stoping as per the original mine design in December 2022, which represents a significant step in the overall development of the underground mine, Q4 2022 gold production guidance range has been set at 3,000 - 3,900 ounces of gold

Scotgold Resources Limited Chief Executive Officer Phil Day Shore Capital Nomad and Broker Toby Gibbs / John More Celicourt Communications Financial PR Felicity Winkles Via Celicourt Communications Tel [phone] Tel [phone] Tel [phone]

Scotgold Resources Ltd (AIM: SGZ), is Scotland's and the UK's first commercial gold producer. The Company poured first gold in November 2020 at its Cononish Gold and Silver Mine ('Cononish) in Tyndrum, Scotland and is developing it into a +23,500-ounce gold mine per annum by Q1 2023. Cononish is a high-grade underground mining operation with a central processing plant producing gold concentrate for off-take and gold dore for the Scottish Jewellery industry. Once in full production, the mine has anticipated forecast operating costs of c.GBP544/oz AISC, which will place Cononish in the lowest quartile of gold mining operations globally. Scotgold is committed to responsible mining and is pleased to report it is one of the few global gold producers that does not use cyanide for either its flotation gold concentrate production or gravity gold at Cononish. It is Scotgold's vision to build a mid-tier gold mining company in Scotland with multiple operations in the country that enhance the local environment and economy in ways that have an enduring positive impact

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