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Altan Tsagaan Ovoo “ATO” Gold Mine

The Altan Tsagaan Ovoo gold and silver project (the “ATO Project”) is located in the territory of Tsagaan Ovoo soum of Dornod province in eastern Mongolia. The ATO Project is comprised of one mining license (MV-017111) over an area of 5,492.63 hectares.

After a successful start to Phase 1 Oxide Project, with 33,000 ounces produced in 2020, Steppe Gold doubled the resource estimate at the ATO Gold Mine to 2.45 million ounce of gold equivalent in February 2021.

The Feasibility Study dated in Q4’ 2021 covers the ATO Gold Mine with a 12.5 year remaining mine life, with an assumed start date of January 1, 2022.

Phase 2 expansion assumes producing 100,000 ounces of gold equivalent per annum from the fresh rock ore. Gold recovery is forecast to be 79%, with further recoveries of up to 10% through CIP/CIL plant in later years.

ATO gold mine is estimated to generate 1.72 billion dollars in revenue and over 584 million dollars in earnings before taxes with a CAPEX of $128m, a rapid payback of capital in 3 years after taxes.

MINERAL RESERVE ESTIMATE, EFFECTIVE JUNE 30, 2021

Category Material Ore Grades Contained Metal
AuEq Au Ag  Pb  Zn  Au  Ag  AuEq 
(kt) (g/t) (g/t) (g/t) (%) (%) (k oz) (k oz) (k oz)
Oxide – Combined (ATO and Mungu)
Proven Oxide 1,618 1.54 1.45 12.81 0.54 0.40 75 666 80
Probable Oxide 1,324 1.16 1.01 19.45 0.26 0.20 43 828 49
Total 2,942 1.37 1.25 15.8 0.41 0.31 118 1,494 130
Fresh & Transition – Combined (ATO and Mungu)
Proven Fresh & Transitio 13,277 2.10 1.26 8.58 0.53 0.94 536 3,657 897
Probable Fresh & Transitio 10,186 1.69 0.98 13.79 0.37 0.69 316 4,344 550
Total 23,462 1.93 1.14 10.78 0.46 0.84 849 8,002 1,448
Total Oxide+Fresh & Transition  26,404 1.86 1.14 11.18 0.46 0.78 968 9,491 1,579
Category Material Ore Grades Contained Metal
AuEq Au Ag  Pb  Zn  Au  Ag  AuEq 
(kt) (g/t) (g/t) (g/t) (%) (%) (k oz) (k oz) (k oz)
Combined (ATO and Mungu)
Proven Oxide 1,618 1.54 1.45 12.81 0.54 0.40 75 666 80
Fresh & Transition 13,277 2.10 1.26 8.58 0.53 0.94 536 3,657 897
Probable Oxide 1,324 1.16 1.01 19.45 0.26 0.20 43 828 49
Fresh & Transition 10,186 1.69 0.98 13.79 0.37 0.69 316 4,344 550
Proven & Probable Oxide 2,942 1.37 1.25 15.80 0.41 0.31 118 1,494 130
Fresh & Transition 23,462 1.93 1.14 10.78 0.46 0.84 849 8,002 1,448
Total   26,404 1.86 1.14 11.18 0.46 0.78 968 9,491 1,579

RESOURCE EXPANSION

SITE PLAN

Image of Existing ATO Project Site as of November 2021