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Development & Drilling Update

TORONTO, September 12, 2018 – Steppe Gold Limited (TSX: STGO) (the “Company” or “Steppe Gold”) is extremely pleased to announce the progress that has been made over summer at its Altan Tsagaan Ovoo and Uudam Khundii Gold Projects in Mongolia.

HIGHLIGHTS
➢ The ATO development is progressing well with some delays experienced over the summer period. The project CAPEX remains under budget.
➢ The ATO crushing circuit is now on site and is under construction with commissioning planned for the coming month.
➢ Pre-strip of the ATO1 deposit is nearing completion with material being stockpiled for later crushing.
➢ Heap leach pad construction materials delivered to site and ready to commence construction.
➢ ADR Plant fabrication completed with delivery to the ATO site scheduled for late September.
➢ Consultant appointed and bankable feasibility study commenced on 150,000oz gold per annum operation on fresh rock ores.
➢ The Stage 2 drilling program was completed with three diamond core drilling rigs completing a total of 36 drill holes for 9,006 meters.
➢ The Stage 2 drilling program was highly successful and focused on the ATO4 end of the ATO4-Mungu mineralized trend.
➢ First visible gold seen at ATO with super high grades being returned;

ATO299 1m at 212g/t gold from 104m
ATO317 1m at 183g/t gold from 166m
1m at 382g/t gold from 182

➢ Better drilling results from the Stage 2 program include;

ATO297 63m at 6.28g/t gold & 5.91g/t silver from 54m
ATO299 54m at 6.17g/t gold & 4.48g/t silver from 70m (incl. 1m at 212g/t gold)
ATO300 68.5m at 4.38g/t gold & 6g/t silver from 33.5m
ATO301 13m at 6.07g/t gold & 5.96g/t silver from 89m
ATO304 144m at 1.55g/t gold & 5.08g/t silver from 36m
ATO310 101.7m at 1.53g/t gold & 30.43g/t silver from 0m
ATO314 54m at 2.96g/t gold & 5.32g/t silver from 45.5m
ATO315 88.4m at 1.55g/t gold & 93.46g/t silver from 9m
ATO313 43.35m at 1.75g/t gold & 3.43g/t silver from 83.65m
ATO318 54.8m at 1.77g/t gold & 5.64g/t silver from 29.5m
ATO322 78m at 2.56g/t gold & 13.7g/t silver from 42m
ATO317 22m at 30.15g/t gold & 7g/t silver from 164m (incl. 1m at 183g/t and 1m at 382g/t gold)
ATO326 61.25m at 2.48g/t gold & 5.93g/t silver from 100m.

See the full Development & Drilling Update

ABOUT STEPPE GOLD

Steppe Gold is a precious metals exploration and development company with an aggressive growth strategy to build Steppe into the premier precious metals company in Mongolia. The Company owns 100% of the advanced staged Altan Tsaagan Ovoo Gold Project where resource expansion drilling and a heap leach development is currently underway. The Company also owns 80% of the exciting Uudam Khundii Gold Project where an active exploration program is underway and making new discoveries.

Matthew Wood, Executive Chairman said “Over the summer months the Company has experienced some delays to its development schedule from elements outside of the company’s control. These elements are now largely resolved and the Company is full speed ahead with the ATO mine development. Steppe Gold continues to receive very strong support for the development of the ATO Gold Project from federal, state and local stakeholders in Mongolia with the ATO mine already adding significantly to the local Soum and Dornod economy.

Steppe Gold is based in Mongolia with our head office in Ulaanbaatar. We are almost entirely staffed by Mongolians and are purely focused on developing precious metals in Mongolia. Mongolia is our home. We are extremely proud of the efforts our employees, contractors and consultants are making for shareholders and stakeholders in their efforts to sustainably develop and expand the gold sector in Mongolia. This is already creating increased employment and business opportunities as Steppe grows into the premier precious metals company in the country. Mongolia is open for business, pro-mining development and one of the last great frontiers where giant mineral deposits can be found and developed.”

CONTACT INFORMATION

Head Office:
Shangri-La office, Suite 1201, Olympic street
19A, Sukhbaatar District 1,
Ulaanbaatar 14241, Mongolia
Tel: +976 7732 1914

Toronto Office:
90 Adelaide Street. W, Suite 400 Toronto, ON
M5H 3V9,
Canada
Tel: +1 647 697 0577

Transfer Agent:
Lori Winchester
Senior Relationship Manager, Client
Management

Phone: +1 416 607-7898
Cell: +1 416 671-4558
Email: [email protected]

Development & Drilling Update

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