Victoria Gold Reports 2021 First Quarter Results; Produces 26759 Ounces of Gold

TORONTO, May 14, 2021 is pleased to announce first quarter 2021 summary financial and operating results.

All amounts are in Canadian dollars unless otherwise indicated.

During the three months ended March 31, 2021, the Eagle Gold Mine produced 26,759 ounces of gold, compared to 10,544 ounces of gold production in Q1 2020.

During the three months ended March 31, 2021, a total of 1.6 million tonnes of ore were mined, at a strip ratio of 3:1 with a total of 6.2 million tonnes of material mined.

During the three months ended March 31, 2021, a total of 1.0 million tonnes of ore was stacked on the heap leach pad at a throughput rate of 10,600 tonnes per day.

Ore stacked on the pad was similar in Q1 2021 versus the prior comparable period in 2020.

Stacked ore grade for the quarter was 0.87 g/t Au, compared to 0.83 g/t Au in the prior comparable period in 2020.

During the first quarter of 2021 and through the date of this press release, a number of improvements related to material handling within the process circuit have been completed.

Note that the table above does not present comparative statistics for revenue and cost of goods sold for the prior comparable quarter as Eagle Gold Mine achieved commercial production effective July 1, 2020.

For the three months ended March 31, 2021, the Company sold 27,538 ounces of gold at an average realized price of $2,274 resulting in revenue of $62.7 million.

Depreciation and depletion was $12.6 million for the three months ended March 31, 2021.

The Company reported net income of $31.8 million for the three month period ended March 31, 2021, compared to a net loss of $47.4 million for the previous year’s comparable period.

At March 31, 2021, the Company had cash and cash equivalents of $21.6 million and a working capital surplus of $21.1 million.

However, the COVID-19 pandemic and any future emergence and spread of similar pathogens could have a material adverse impact on our business, operations and operating results, financial condition, liquidity and market for our securities.

Gold production is expected to be strongly weighted to the second half of the year due to the seasonal stacking of ore on the Eagle leach pad.

Sustaining capital will be high in 2021 compared with future years due to one-time infrastructure expenditures including construction of the truck shop .

The Company has initiated ‘Project 250’ aimed at increasing the average annual production of the Eagle Gold Mine to 250,000 ounces gold by 2023.

The Company would like to thank Mr. Roosen for his invaluable support and frank guidance through construction and ramp up of operations of the Eagle Gold Mine.

Considering the Company recently held a conference call in relation to its year ended December 31, 2020, consolidated results on March 24, 2021 and the upcoming AGM, the Company will not host a conference call to discuss the first quarter consolidated results.

Victoria Gold’s 100%-owned Dublin Gulch gold property is situated in central Yukon Territory, Canada, approximately 375 kilometers north of the capital city of Whitehorse, and approximately 85 kilometers from the town of Mayo.

The Mineral Resource under National Instrument 43-101 – Standards of Disclosure for Mineral Projects for the Eagle and Olive deposits has been estimated to host 227 million tonnes averaging 0.67 grams of gold per tonne, containing 4.7 million ounces of gold in the “Measured and Indicated” category, inclusive of Proven and Probable Reserves, and a further 28 million tonnes averaging 0.65 grams of gold per tonne, containing 0.6 million ounces of gold in the “Inferred” category.

The Company believes that these measures, in addition to measures prepared in accordance with International Financial Reporting Standards , provide readers with an improved ability to evaluate the underlying performance of the Company and to compare it to information reported by other companies.

These factors include the impact of general business and economic conditions, risks related to COVID-19 on the Company, global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future conditions, anticipated metal production, fluctuating metal prices, currency exchange rates, estimated ore grades, possible variations in ore grade or recovery rates, changes in accounting policies, changes in Victoria’s corporate resources, changes in project parameters as plans continue to be refined, changes in development and production time frames, the possibility of cost overruns or unanticipated costs and expenses, uncertainty of mineral reserve and mineral resource estimates, higher prices for fuel, steel, power, labour and other consumables contributing to higher costs and general risks of the mining industry, failure of plant, equipment or processes to operate as anticipated, final pricing for metal sales, unanticipated results of future studies, seasonality and unanticipated weather changes, costs and timing of the development of new deposits, success of exploration activities, requirements for additional capital, permitting time lines, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims, limitations on insurance coverage and timing and possible outcomes of pending litigation and labour disputes, risks related to remote operations and the availability of adequate infrastructure, fluctuations in price and availability of energy and other inputs necessary for mining operations.

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