Contango Launches Second Gold Production Campaign at Manh Choh Gold Mine and Provides Corporate Update

FAIRBANKS, Alaska, Sept. 9, 2024 /PRNewswire/ – Contango ORE, Inc. (“Contango” or the “Company”) (NYSE American: CTGO) is excited to announce that the Peak Gold JV has initiated processing Campaign #2 of Manh Choh ore through the Kinross Fort Knox mill near Fairbanks, Alaska. The processing of ore for the Second Campaign commenced on August 27^th and is expected to continue until late September. Furthermore, the Company provided important corporate updates:

Successfully obtained the 404 Wetlands Permit from the US Army Corps of Engineers (the “USCOE”) for constructing an access road from the Johnson Tract camp site to the proposed portal and laydown area;
Executed a memo of understanding (the “MOU”) with the Department of Natural Resources Office of Project Management and Permitting (“OPMP”) to initiate permitting for the exploration portal and laydown area for the Johnson Tract project;
Engaged SRK Consulting Canada Inc. (“SRK”) to undertake a Preliminary Economic Assessment for the Johnson Tract project using the Direct Shipping Ore (“DSO”) approach; and
Completed approximately 1,500 meters (5,000 ft.) or half of the planned 2024 surface drilling program at the Johnson Tract project with the intention of finishing the program, which is on track and on budget, by early October.

Rick Van Nieuwenhuyse, CEO and President of Contango, stated: “We are pleased to witness the commencement of the second campaign of Manh Choh ore at the Fort Knox mill. Our team is closely monitoring the progress, and we anticipate Campaign #2 to yield approximately 10,000 ounces of gold for Contango’s 30% share of production. Additionally, the Company has finalized the sale of an extra 1,500 ounces of gold and a minor quantity of silver from the remaining Campaign #1 recoverable inventory, resulting in total sales from Campaign #1 amounting to 16,200 ounces of gold and 3,500 ounces of silver, generating total sales valued at $36 million. With gold prices nearing all-time highs, we expect Campaign #2 sales to achieve a blended price ranging between $2,100 to $2,200 per ounce, with 60% of gold being hedged at $2,025 per ounce and the remaining 40% being sold at the current spot market price. The All-in Sustaining Costs (“AISC”) for both Campaigns #1 and #2, as well as a discussion of our earnings and financial results for the quarter ending September 30, 2024, are anticipated to be disclosed in early November. The mining and transportation of ore from Manh Choh continue to meet expectations, and we believe that AISC remains on target with the feasibility study (TRS)¹. We are planning a third campaign resembling the same size to process an estimated 10,000 gold ounces for Contango’s account in November, bringing our projected gold production for 2024 to around 36,000 ounces.”

Insight: The ongoing success of Contango’s Campaign #2 at the Fort Knox mill and the planned third campaign highlight the Company’s commitment to consistent production and growth in the gold mining sector.

Mr. Van Nieuwenhuyse elaborated, “In parallel, the Company is making significant strides in advancing the recently acquired Johnson Tract project. On August 21^st, we secured the 404 “Wetlands Permit” from the USCOE, allowing us to construct a 2.3-mile (3.7 km) access road to link the existing camp and airstrip with the proposed portal site and laydown area. This permit also grants permission to realign and expand the airstrip to 5,000 ft. (~1.5km) to accommodate a L-100 Hercules air-cargo plane (~20 tonne capacity). Concurrently, we have entered into an MOU with OPMP to kickstart the permitting process for the underground exploration tunnel. The completion of this tunnel will facilitate underground access for in-fill definition drilling to determine measured and indicated resources, along with conducting detailed geotechnical, hydrology, environmental, engineering, and mine planning studies to finalize a feasibility study. The 2024 drill program is over halfway done and is expected to conclude by late September or early October as per schedule and budget. Data gathered during this program will be used to support the ongoing permitting of the underground tunnel.”

Insight: Contango’s progress on the Johnson Tract project underscores the Company’s strategic focus on expanding its exploration and development activities to drive future growth and value creation.

Mr. Van Nieuwenhuyse concluded, “Contango anticipates finishing the year with a robust balance sheet and being well-positioned to execute our strategy to advance the Lucky Shot and Johnson Tract development stage projects. With the Manh Choh feasibility study¹ projecting an average delivery of 67,500 ounces of gold annually for Contango’s account from 2025 onwards, coupled with the soaring gold prices, we are steadfast in enhancing shareholder value by leveraging our ‘Hybrid Royalty’ model to efficiently progress our development stage projects utilizing the DSO approach.”

ABOUT CONTANGO

Contango is a publicly listed company on NYSE American engaged in gold and associated minerals exploration in Alaska. The Company holds a 30% interest in the Peak Gold JV, which leases approximately 675,000 acres for exploration and development on the Manh Choh project, with the remaining 70% owned by KG Mining (Alaska), Inc., a subsidiary of Kinross, the JV operator. Contango also holds leases on the Johnson Tract and Lucky Shot projects and owns approximately 8,600 acres of peripheral State of Alaska mining claims. The Company’s wholly owned subsidiary also possesses a 100% interest in around 145,000 acres of State of Alaska mining claims, granting exclusive exploration and development rights. More information is available on the Company’s website at www.contangoore.com.

FORWARD-LOOKING STATEMENTS

The information in this release contains forward-looking statements regarding Contango, protected under the safe harbor for “forward-looking statements” outlined by the Private Securities Litigation Reform Act of 1995. These statements are based on the Company’s current anticipations and include projections about future operational outcomes, asset quality, underlying assumptions, and other expectations, intentions, beliefs, strategies, or statements regarding future performance or events. Risks and uncertainties exist that could cause actual results to differ from the statements, including uncertainties related to exploration and the mining industry, financial operations, natural resources price volatility, and governmental policies. Investors should be aware that forward-looking statements are not certain indicators of future performance and that unforeseen events could impact actual results. Management does not commit to updating forward-looking statements unless circumstances or estimations change.

www.contangoore.com

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SOURCE Contango Ore

Successfully obtained the 404 Wetlands Permit from the US Army Corps of Engineers (the “USCOE”) for constructing an access road from the Johnson Tract camp site to the proposed portal and laydown area;
Executed a memo of understanding (the “MOU”) with the Department of Natural Resources Office of Project Management and Permitting (“OPMP”) to initiate permitting for the exploration portal and laydown area for the Johnson Tract project;
Engaged SRK Consulting Canada Inc. (“SRK”) to undertake a Preliminary Economic Assessment for the Johnson Tract project using the Direct Shipping Ore (“DSO”) approach; and
Completed approximately 1,500 meters (5,000 ft.) or half of the planned 2024 surface drilling program at the Johnson Tract project with the intention of finishing the program, which is on track and on budget, by early October.