Young-Davidson continues to be a consistent performer

deliver on its long-term objectives including strong operational execution at all its operations. The YoungDavidson generated over $100 million of mine-site free cash flow for the second consecutive year and was a large contributor to the company’s growth with the ramp up of low cost production.

Underground mining rates were averaging 7,185 tpd in the fourth quarter and 7,627 tpd for the full year. Underground mining rates have returned to normal levels in January 2023, averaging more than 8,000 tpd, and are expected to remain at similar levels through the rest of the first quarter of 2023. Grades mined averaged 2.32 g/t Au in the fourth quarter and 2.30 g/t Au for the full year, both consistent with annual guidance of between 2.15 and 2.35 g/t Au.

The mill throughput averaged rates exceeded mining rates during the quarter with underground ore mined and stockpiled in previous quarters supplementing mill feed.

The focus of the 2022 drill program was following up on the success in the 2020 and 2021 programs which extended gold mineralization below existing Mineral Reserves and Resources and intersected higher grades in the hanging wall and footwall of the deposit. In 2022, a total of 11,786 m of underground exploration drilling was completed in 18 drill holes.

Additionally, 715 m of underground exploration drift development was completed to extend drill platforms on the 9220, 9095, and 9025-levels. The focus of the underground exploration drilling program is to expand Mineral Resources in six target areas that have been identified within proximity to existing un- as continuing to test mineralization in the footwall sediments and in the hanging wall mafic-ultramafic stratigraphy.

Exploration spending totaled $1.8 million of which $1.5 million was capitalized in the fourth quarter 2022. For the full year, exploration spending totaled $9.3 million of which $5.0 million was capitalized. Gold production from Young-Davidson in 2023 is expected to be consistent with 2022, reflecting similar grades and mining and processing rates. Costs are expected to remain at similar levels over the next three years. Capital spending in 2023 (excluding exploration) is expected to range between $55 and $65 million, similar to 2022.

With a 15-year Mineral Reserve life, Young-Davidson is well positioned to generate similar free cash flow in 2023 and over the long-term.