Capital Market Day - NEW FOUND GOLD CORP

Financial Performance:

• Achieved commercial production at the Hammerdown gold mine with strong Q3 first-quarter results, generating free cash flow.
• Secured a total of $220 million in financing via a $115 million equity raise (fully exercised) and $105 million in debt (70 million drawn, 35 million option), featuring an 8.75% fixed interest rate with a 3-year term.
• Maintains a strong balance sheet with approximately $80 million in cash and equivalents post-financing, sufficient to cover the $150 million Phase 1 CapEx for Queensway, exploration, and sustaining capital.
• Revised PEA indicates a Phase 1 All-In Sustaining Cost (AISC) of $1,375/oz with cash costs under $1,000/oz, targeting 100,000+ ounces annually in the first three years.
• Company market cap stands near $850 million with 410 million shares outstanding fully diluted.

Guidance and Future Outlook:

• Strategy involves a phased approach to Queensway: Phase 1 (toll-milling at Pine Cove) starting in late 2027, followed by Phase 2 (on-site 1,400 tpd plant) and Phase 3 (expansion), aiming for 200,000 ounces per year by 2028–2030.
• First ore from Queensway is targeted for Q4 2027, with full Phase 1 capacity expected to run until end of 2030.
• Re-targeting to achieve a 200,000-ounce annual production rate by 2028–2030, growing from the initial 100,000+ ounces.
• Permitting timeline for Queensway Phase 1 is accelerated, aiming to secure environmental assessment approval by Q1 2027, significantly faster than the typical 2–2.5 year industry standard.

Business Segments and Product Lines:

• Hammerdown Mine: In commercial production, ramping to 700 tpd ore delivery to the mill with 85–90% recovery rates; currently processing 12,000 tpd of material movement.
• Pine Cove Mill: Being retooled from a CIL circuit to a gravity CIL circuit and expanded to 1,400 tpd; serves as the interim processing hub for Hammerdown and future Queensway feed.
• Queensway Project: Flagship asset with an updated Mineral Resource Estimate (MRE) of 1.92 million ounces (Measured & Indicated) at 2.19 g/t, representing a 38% increase driven by the new "Dropkick" zone discovery; includes core area, peripheral Dropkick zone, and underground potential.
• Infrastructure: Construction of a permanent crusher and sorting plant at Hammerdown scheduled for commission in Q1 2027; power line relocation budgeted at $6 million to clear the Queensway site.

Market and Competitive Landscape:

• Operating in Newfoundland, a top-tier Canadian jurisdiction characterized by government openness, a 110-kilometer strike length on the Appleton Fault Zone, and high-grade orogenic gold deposits.
• Company is pivoting from an exploration entity to a mid-tier producer, leveraging a unique "hub and spoke" model where infrastructure supports multiple deposits.
• 90% of the workforce is recruited locally from Newfoundland and Labrador, providing a significant operational advantage in the current labor market.
• Analyst coverage has increased from zero to six analysts, with institutional ownership rising from 0% to 40% following the recent capital raise.

Risks and Challenges:

• Permitting & Regulation: While ahead of schedule, the environmental assessment process remains a critical path item requiring timely submission of the review report by November and ministerial decision by January 2027.
• Capital Execution: The strategy relies on tight capital discipline to fund Phase 1 using operating cash flow to finance Phase 2, requiring flawless execution of the phased mining plan.
• Exploration Continuity: Future growth depends on expanding the resource base beyond the current 3-kilometer core segment of the 110-kilrometer fault zone, particularly at depth and in peripheral zones.
• Metallurgical Complexity: Lower-grade ore contains a refractory component (10–15% of gold) requiring a separate flotation circuit, adding complexity compared to the high-grade gravity-recoverable ore.

Management Commentary and Tone:

• Tone is highly confident and enthusiastic, emphasizing a "rapid transition" from explorer to producer and the "untapped potential" of the 110km geological trend.
• Management highlights the "smooth" regulatory process in Newfoundland as a testament to government collaboration and operational discipline.
• CEO Keith Boyle and Chair Paul Sprott underscored the importance of the new management team, the local workforce, and the supportive community (Gander) as key competitive advantages.
• The company views itself as "fully funded" to execute the next several years of growth without immediate dilution risk, aside from existing warrants expiring in Q3 next year.

Analyst Questions and Answers:

• Power Line Relocation: Cost is approximately $6 million (after rebates); contractors will handle the rerouting next year, providing permanent power access for Phase 2.
• Underground vs. Open Pit: The increase in underground mining in the updated PEA was driven by economic modeling; underground offers better value than moving low-grade overburden for open pits in specific areas, though most resources remain open pit.
• Flotation Concentrate: The gravity concentrate from lower-grade ore is expected to grade 30–40 g/t; the company is still evaluating trader selection.
• Mill Feed Post-2030: With the Pine Cove mill having 700 tpd of excess capacity after Queensway Phase 1 concludes, the company plans to explore nearby historic deposits (e.g., St. George's) to feed the expanded mill.

Other Key Points:

• Community Engagement: Strong partnership with the Town of Gander (12,000–13,000 population), serving a wider region of 80,000; focus on local hiring, transparent communication, and environmental stewardship (e.g., progressive rehabilitation, water monitoring).
• Sustainability: Committed to Mining Association of Canada standards, zero harm safety goals, and proactive community sponsorships; 60% of the mining workforce commutes home daily, rare in the industry.
• Geological Analogy: Queensway is compared to the Foster Village deposit in Eastern Australia due to similar structural settings, rock types, and gold mineralization styles.
• Acquisition Rationale: The acquisition of Maritime Resources (Hammerdown and Pine Cove) was strategic to bring forward Queensway production by three years (from 2031 to 2027–2028).