Capital Market Day - NEW FOUND GOLD CORP

Good afternoon. I'd like to warmly welcome you, both the people who are here with us in the room and those who are joining us online, to Newfound Gold's first ever Capital Markets Day. So I joined the company in February of last year, and I feel we've done a tremendous amount in that time. And thinking back at really even the last two months of what we've been doing, we've done two months ago today we up listed to the TSX so really marking the company's transition from Explorer to developer and producer and this morning we celebrated that by opening the TS X we also announced commercial production on our hammer down gold mine and the company just recently announced our first ever quarterly production results and then to top that off last week we announced the results of a revised PEA as well as our first MRE update at our flagship Queensway gold project but today's event really is an opportunity for our audience to hear both from our esteemed guest mayor of Gander about newfound and his experience with us and as well from our chairman and members of our executive team about our path forward to becoming a mid-tier Canadian gold producer so what I'd like you to come away from today with is a better understanding of the company and the unique opportunity there is with Newfound Gold from our location in central Newfoundland to our assets both on and in the ground in Newfoundand and perhaps our most important asset our people so what we'll do is go through a series of speakers today and from there we'll take questions at the end and for those in person we will have a reception to follow well before we do that and get into that I'd like to show you a new presentation that we put together which really we hope conveys the enthusiasm that we have for the company and our projects. I look at our property today and the potential that it has. We basically explored five kilometers of 110 kilometers long. And we've got two main structures that are the deep piping system for the gold. So to me, like I see this as a generation of possibility. The significance of Queensway here is that we control a very large fault system. It's called the Appleton Fault Zone. It strikes over 110 kilometers. So that means we have access to that entire fault zone over that distance. And so far, the majority of our exploration has really been focused in a three-kilometer segment of that. So there's a lot of potential here to find more. Early in my career, I started as an engineer in training. Little did I know at the time I was in a belt in the Abitibi, which is Val d'Or to Rouen. which is a hundred and ten kilometers long that abitibi belt has produced and still in doubt of over 100 million ounces when we look at the queen's way deposit man the surface has only been scratched and as our team understands the geology more and more as we drill more and mourn as we expose it more and they're understanding where to look We came to Hammerdown in November. We were just starting to get into the ore. This is our rehearsal for the big show. Everything that we've learned around mining a very narrow, high-grade deposit and learning how to deliver good quality ore to the mill is what is the key at Queensway to be able to deliver the mine plan there. We're building our systems, we're building the ore, we're doing our management, we'RE building our data collection systems at Hammerdown. We're going to take what we've learned and built here, and we'll move it over to Queensway. As part of our strategy, we were looking for an off-site milling solution that had permitted with tailings capacity. And so Pine Cove was integral. Pine Clove is, it's actually, it is fortunate because now we have an asset on this side of the island. So I think we've opened up a huge corridor in in this side of Newfoundland to have, to look fine for more gold, and we have a mill that's already ready to go and processing. The asset of this company is the people that we've been able to find and acquire. 90% of our workforce is from Newfoundlands and Labrador. So we believe in bringing benefits to our local communities so they can benefit. Now we actually have producing assets where people can have great jobs working at home. As a town councilor, of course, I'm very interested in the economic benefits to our community and the region as a whole. It's not only what happens at the mine, it's the accommodations, the food services, the suppliers, contractors, workers. The rising tide floats all boats. There's a lot of activity generated that benefits the community positively, and the trickle down of all that is every sector is touched. We're less than 20 minutes outside the town of Gander at Queensway. Less than 5 minutes outside of Kings Point and 10 minutes outside of Springdale at Hammerdown. And 15 minutes outside of Bayvert at Pine Cove. So we've got communities in and around where we're operating. That's such a huge advantage to draw people, but also services that come to support a mining operation. and being on the island while they have the logistics down pat we actually have a deep sea port right at pine cove so we're blessed with all the right infrastructure and with that i will welcome paul up to make some opening remarks thanks diona thanks everyone it's going to be hard to follow some of the music so if anyone's expecting me to get up here with a guitar i think you might be a little disappointed but i can sing come to karaoke night you might you might have some good fun with me there so first and foremost look it's a real pleasure to be here this afternoon to welcome all of you it's great to see so many familiar faces i think you're all in for a treat here you get to hear firsthand right out of the right after we announced the pea last week from the team themselves who built this pea exactly what we're doing here and there's no doubt that what we have in front of us is a very unique opportunity in time in a unique asset with an amazing team i i come from timmins most of you know where that is i was born in sudbury i had no chance i was in a mine no matter what and i was a bad hockey player so here i am mining 39 years later but when i look at some of the opportunities here and some of the things i say well why did i join newfound well first it's in canada i love anything in Canada obviously being Canadian anything in North America but more importantly this jurisdiction you know Keith talked about it he talked about the Abitibi district you think about Timmins district the Red Lake district this thing is untouched this thing has so much opportunity in front of itself we've been an exploration company for years now we're pivoting we are changing this company right now as we speak it's occurring right now this company is pivoting from an exploration Company to a development company to a producer and we have hammer down to lead the way we have the playbook in front of ourselves we're doing it Rob the team there are actually mining day and day out first quarter results are out we can see that that gives us a tremendous advantage over some PEA document even mining it feeling it touching it knowing the cost you get a much stronger sense of what we're about to face in the next chapter which is right in front us which is going to be that Queensway and when you start looking at that and some of the grades well let's be honest here you're gonna be encountering some of the highest grade gold mines in an open pit in the world you start looking at some of numbers start digging into some of the numbers and you'll start to see and understand and recognize real quickly what we believe in so when we start to unlock the value here and we see that the room is filled with analysts shareholders I can see some familiar faces that I've been on the opposite side of the table where they're asking how was EPS last quarter, how was this last quarter? Well, this is about, look at what we've done so far, but I can tell you something. I'm quite excited about what's in front of us. The best is yet to come in this company. And again, we've got the assets, got the team, got the location, we got the support of the community, we have the Mayor from Gander here, but we've an amazing opportunity in history to build something in Canada that will be here for a very long time so i just wanted to open up and say a couple words and thank you all for being here we recognize the capital responsibilities we have as a board as an executive team to be disciplined in how we spend our money and make sure that every dollar translates to a shareholder value for each of our shareholders in this room and that that comes at a cost to us we're we're very responsible in that effect as a Board as an Executive Team so thank you for being here i thank all the team members you guys have worked extremely hard and and again today we got announced and I know that Fiona talked about it we were we went from the TMX be the venture on to the TM X we rang the fake Bell this morning or maybe it's not called the fake bell the button I should call it it was very exciting there was a lot of emotions in the room it was it was great to see one of our largest shareholders mr. six-foot-two Eric Sprott was standing next to me it was great to see the support it was great to CS graduate into the TSX and as it's going to be exciting to watch what's what's the next chapters as we continue in lock this valley so thank you for being here I'll be around for a bit Keith over to you and your team and good luck everyone thank you Paul and so as I said so we're honored to be joined by the mayor of Gander Percy Farwell who will be coming up to show his own video and make some remarks on on the company note the notes I don't know if I'll use them Thank You Fiona thank you so much to the Newfound Gold team for inviting me to be here to share in this this coming of age for the company this graduation ceremony it's a you may wonder what the hell's Mayor Gander doing here well as you can see by described the previous video around the location of where some of the activity is we are very very close physically to the Queensway project and I'll talk a bit more about that later but first I'd like to introduce my community a little some of you may know of it or know it and some may have never heard of it but we have a little video here to show you of a little introductory video to our community so you can put things in context a little bit they say that every place has a rhythm around here we share a little bit of everything. A little nature. A little nurture. A small town magic. We're grounded, but going places. It's a town where people pitch in, and the kettle's always on. Something we're known for. And no matter where you're headed, you always seem to bump into someone who knows your name. Or your dog's name. Because in Gander, rhythm is all about community. It's connection. That our spirit, like geese, fly best in formation. gander place to land place to grow place to call home visit gander.ca to learn more thank you for uh your attention to that i just offer that as a little a little introduction to a bit of the vibe of what our community is all about why what does that how does that bring me here of course you know this the the queensway project is uh is literally minutes drive along the trans canada highway from our community from from a well-established service center that has an international airport an acute care hospital and many other medical services a robust business community that's positioned to be part of the supply chain for industrial users and certainly positioned to adapt to roles that may enhance and support the growth of business. So we're a population of 12,000 to 13,000 people. We service about 80,000 People on a daily basis with the various services we have in our community. So, and as a community we've been experiencing steady growth over the last, and that's a bit of an outlier in the Newfoundland and Labrador rural context, we've experienced significant growth over the last 20 to 25 years in our population. So, as a result of that, our council has been actively engaged in things like housing initiatives, transit initiatives, these sorts of things to support ongoing continuing growth, growth which we hope the Queensway project as it develops will be a big part of that now we know there's a lot of interest as a community representative there's lot of interests in communities when mines are looking at setting up next door particularly when they're next to your water supply and a world-class Salmon River and all these sorts of things so what is critical is communication openness transparency and these sorts things and and i have to commend the newfound gold team on that from our experience with them since they've been in the area exploring the last number of years we're very pleased with the with the level of uh communication and and engagement you know they they always answer when we call and they frequently reach out uh you know unsolicited to and then proactively to provide us with updates and answer any answer any concerns we might be hearing in the community and that's important we look forward to continuing that relationship as the pro the project progresses and as we all know in today's world misinformation is far too easy to uh to uh dredge up and and share or make up and share and so on and and that the only way to combat that is with open communication uh we understand that there's environmental considerations you know obviously The intersection of environment and industry is often a very tangly place. So, you know, but we as a community, excuse me, as a committee at least, we appreciate that, you now, the industry exists within a robust regulatory regime and so on. And that those things, we respect those processes and we respect the role they play in ensuring that the interests of the environment and of the communities that might be concerned about the environment have. So, you know, we respect, like I say, we reflect those processes and we think that with appropriate regulation, compliance, monitoring, communication, these sorts of things, the salmon angler you saw in our video and some of the equipment operators like what you saw in the company's video can coexist. And in fact, in our case, we're so close together, it could be the same person. So what does it mean to a community like Gander, for example, to be as close to a project like this? There's a mutual benefit here. I mean, the obvious benefits to a Community Lake Gander is because we are literally on the doorstep. look at my time there and we're literally on the doorstep so you know we anticipate things like employment opportunities population growth business growth and with all that an increased capacity to improve and enhance and grow services that make that make for a better quality of life for our existing citizens and to be a good ecosystem for a company to operate in And particularly importantly, for its employees and managers to operate in, you know, where your labor force is content is a good place, particularly in today's labor market. And that's where we see as a community, we have maybe a different view than some communities have when events like this are occurring on our doorsteps. we see ourselves not so much as a as a passive interested impacted stakeholder but more more along the lines of a partner in in trying to encourage development that is in a mutual best interest well you know and then I'm referring to stakeholders and community stakeholders and shareholders and we need you need a winning formula where both the perspectives of both are respected and and developed so we certainly see ourselves as as playing more of a role than just standing back and critiquing and worrying about what might happen or or or just availing of the benefits I think there's a mutual benefit of a community that that is supportive of the industry as well and we know that you know we're only a little ways away along the continuum right now there's a lot of decisions to be made before Queensway moves forward there's hurdles to be cleared and all that sort of thing and we respect and recognize that process but from our perspective we'll continue to follow the progress we'll continue to maintain our valued relationship with the company and to look for opportunities where we can further support and enhance the efforts to to make this a successful project uh so thanks again for having me here and to uh and to newfound gold on the transition to the the main tsx exchange here it's a an important milestone and we look forward to a long relationship a mutually supportive relationship with the project that reaps rewards for both shareholders and certainly be along for that ride for as long as it's as longs as needed so thank you very much and the opportunity to be here all right hi everybody I'm Keith Boyle I'm the CEO at newfound and so this is the corporate section if you will just high level where you know we're a growing or Canada's newest gold producer so we're growing producer now and as been mentioned we've got the hammer down mine and we're now building the Queensway project I'll let the details come out from the others but we're also fully funded to do it get where we want to grow that production and then from the cash flow is then grow it more so we've got a clear line of sight now on that trajectory we're in the in the province of Newfoundland Labrador and in my 40-some years experience having worked in many jurisdictions around the world I can say it's the best one I've worked openness of government to work with the company while you're putting together applications communities working with with you is really second none for those that don't know you do a bit of research on it but really great jurisdiction and we've also got an exceptional property package you saw from the video i'm i'm quite excited by the exploration possibility uh with a package like that 110 kilometers long at queensway and we didn't even actually talk about the package up at hammer down at pine cove melissa will cover that a bit in her presentation but we've got really great potential and um you know and we've got the team paul mentioned it over and over and i'm really proud of the team that have taken us from really an exploration company uh just the beginning of last year to today producing fully funded and building our next one which leads me to the last point for those wanting to buy shares might consider this as a good entry point please do your work this is not an investment advice however have a have a good look so you know as I mentioned top jurisdiction and if you didn't get the sense from Percy is you know we're beside communities most of the people drive to work that the government as I mentioned you know when we looked at our permitting timeline typical permitting time would have taken two maybe two and a half years and that would have been I would say at a normal cadence in some good jurisdictions and we're gonna do that like to get through that period in fact less than a year so that to me that's a that's real testament to the government and the workforce on site here it'll cover a bit more of what you know what the composition is but the one thing that strikes me every time I fly into and out of Newfoundland is half the seats on the plane are FIFO workers they're going to Fort McMurray they're going to Nunavut the tour and so we're getting ever since the start of the year really has been the start of the year where we've had the announcements of one the funding and Queens are really kicking off hammer down getting into production we've got lots of inbound calls from those workers that are on the planes going in and out wanting to come home and and sleep at home so there's a real good variance workforce there that we can draw on and again as Percy mentioned we're less than 20 minutes outside of Gander what right beside the trans-canada highway and deep-sea port air from airport and you know as as was mentioned they service gander services a 80,000 within so got lots of people to draw on and lots of service that really do help so our key assets is the hammer down gold mine which just went into commercial production we had a very good third quarter first quarter production the way in the third quarter and and you know we we acquired maritime resources last year which was really the hammer-down line in the Pine Cove mill and in our strategic focus was the Pine Cove Mill because what it did was it brought forward the Queensway project by three years it helped us move that gold production basically from 2031 to in into the start of 27, 28. And so that was the strategic rationale behind that. And now at Pine Cove, we're building or first we're retooling it into a gravity CIL circuit. And then next piece of that will be to expand it to 1,400 tons a day. And that 1, 400 tons a will continue to process hammer down. We'll get a bump in recovery, expected, by doing that because better circuit for the hammer down material and be able to process Queensway. And we're targeting first material from Queensway at the Q4 of 27, so in about a year's time. At Queensway, again, as Rob will outline, it's a phased approach, starting small, using that smaller, I'll call it on a tonnage basis, but the grade is really spectacular. So for us, it is getting the ounces, getting the cash flow, and using that to grow to the next phase of production. And what does that look like? you know we're targeting that over a hundred thousand ounces a year in the 28 to 30 and then from there growing that targeting the 200,000 ounces a year and Melissa's team through expiration fill in the back end that's the overall strategy for so our capital structure it's 410 million shares outstanding fully diluted and right now we're sitting at about just under 850 million market cap so there's a company like ours all it in 28 producing over a hundred thousand ounces a year well over a hundred go for and do your work but we've got great supportive shareholders Eric you saw joined us this morning at the opening bell and edge point came in when we did our 220 million dollar raise earlier this year and they underwrote 105 of debt and put in 20 million US of equity so they wanted to be a partner alongside Eric and other you know other some very supportive institutional shareholders we basically went from a zero institutional uh share holdings last year to this year we're at about 40 percent institutional share so really good really good shareholder base and we're well covered by six analysts some of you are in the room here today and thanks for coming so as paul mentioned the team it's uh pretty much a brand new team uh last year uh paul was appointed chair in December of 24 everyone else in on the board of directors is new last year and and so we've got I have real our team has really good support at the board level some really good experience you know I know a name of note is dr. Andrew fury former premier of Newfoundland Labrador so you know again we've got a really well-rounded board that help and we've got Paul Basie's covered you know when we're looking at when we were looking at the support as far as the management team goes and everybody's new except for Melissa who she was there six years ago as part of the team that's in finding gold and here on because we want to find more um so uh so but everyone else was brought in for the purpose of you know what we're building now a mining company we're moving transitioning from exploration to mining and so we've all uh i've worked with a few in the past and others others they came on board and we've been going at pace as we like to call it internally so we've really it's been quite a journey a very fast one but i'm very proud of the team and i thank them for all their efforts so on that i'll call hash him up and he can run through some numbers keith so um last year after closing the acquisition of maritime resources in december started working on a financing package and as keith just alluded to it was a two-part financing package we raised 220 million dollars um the equity piece was 115 million dollars at market bought deal and was fully exercised by underwriters export participated his Rada bases and an edge point came in for 20 million and then we also partnered with edge point is 105 million in debt you've drawn down the first tranche of that debt of 70 million we have the option of drying on the second tranche by due to of next year so that gives us $5 million plus the equity that we raised. The debt was at a pretty good project financing rate of 8.75% fixed rate, which looks pretty attractive now with the interest rate volatile environment as well. It's a three-year term debt, and we have early payment options. that debt raised at the end of September we have approximately an eighty million dollars of cash and equivalents we've got the second tranche as I said before thirty five million dollars we can bring in from the second trash but some in the money warrants which are expiring in q3 next year which which we see was being exercised as well. Hammerdown, as we all know, is now in commercial production. It's generating free cash flow, and we will see that cash coming in as well, so with that, our balance sheet is in a pretty strong place right now to fund the $150 million of Queensville CapEx that we announced in our recent pea to cover our gna as well as give us money for our exploration campaign and it still leaves us with a comfortable cash balance at the end of next year as we go into operational readiness at queensville so one of the key elements of any mining project is to cover the funding risk and i think we as a company are have lowered that risk significantly for us i'll pass this on to now melissa hi everyone thanks for coming out today um to celebrate such a number of significant milestones for the company. My name is Melissa Render as Keith mentioned earlier. I'm president here at Newfound Gold and I largely oversee the exploration activities across both our Hammerdown and Queensway projects. So today I'll be focusing on those providing an update on what those activities are but with a focus on our updated mineral resource estimate that was released last week I'd like to start with a brief recap of the exploration story at Queensway as it's rapidly unfolded since the discovery of high grade gold at the Keats zone from there we rapidly expanded delivering new discoveries such as west iceberg lotto k2 to our first mineral resource estimate and preliminary economic assessment in 2025 and then that quickly followed by an updated mineral resource assessment and pea just last week that demonstrated a 38 increase to the mineral resource base and that can largely be attributed to the discovery of the drop kick zone this is a new discovery that came online in late 2024 that we've been rapidly expanding and de-risking so that we get it included in this in this update and so that's just an example of the value that exploration has brought and what has the potential to continue to bring as we advance the queensway project the sizable land package striking over 110 kilometers and as you've seen in those videos and as we've mentioned earlier we're really just scratching the surface where most of our work has been concentrated in quite a small segment of that fault so pivoting to the geology and i'll keep it light the point i want to make here is that queensway and hammerdown and in addition to our neighbors the valentine gold mine these are orogenic deposits and newfoundland is an excellent place central newfound land is an excellent place for looking for gold because it has been subjected to these major collisional events that drive these key tectonic processes that are needed to liberate transport and precipitate the gold it was all developed during the appalachian orogeny and the closure of the apodos ocean now zooming into queensway the queensway geology story here so as we just learned those major collisional events are responsible for setting the framework the structural framework of the project the queens way mineralization is structurally controlled the gold occurs in quartz veins as you can see here in these images as coarse free gold that is contained within a brittle network of faults that surround the appleton fault zone the appleton is a major crustal scale feature that is responsible for delivering the gold to the upper crust and as mentioned this is an orogenic deposit is epizonal and is hosted within a mixed sedimentary sequence of silt stones gray wackies and black siltstones all of these features are very similar to the foster village deposit in the eastern in eastern australia and we like to say that this is our closest analog for those reasons mineralization style the age of the rocks structural setting and the host unit now looking at um the exploration piece for queensway so this is just to give you a sense for what we've been up to in terms of exploration in 2026 the majority of our exploration work has been the project piece so those de-risking activities as we advance towards development and production consisting of infill drilling so this is the conversion work converting from inferred to indicated within the phase two open pits that was a focus of this year as well as about 50% of the underground and the underground will sequence out over the next few years we've been pushing the grade control drilling as well to cover the year one mine plan and the ongoing geotechnical and hydrogeological work to support the phase two infrastructure we've also had some exploration drilling going on in parallel with this project work so looking at extensions in the afsa core area you may have noticed we picked up a segment called the bullseye project adjacent to the core area so we've been doing some step out work there working up around drop kicks some expansion drilling and then of course regional activities so the boots on the ground work with the field crews collecting soil samples prospecting trenching base of till drilling and some regional regional drilling as well to develop new pipeline targets advance them to the drilling phase and look at generating new discoveries to keep that long-term pipeline pipeline healthy and continued growth for the project so now looking at our updated mineral resource estimate so i'm just going to run through a few of the highlights as mentioned we did see a 38 increase bringing it to 1.92 million ounces and measured and indicated at 2.19 grams per ton the inferred category largely stayed the same at about 600 000 ounces at 1.51 grams per time and as mentioned a good chunk of this is from the delivery of the dropkick zone which contributed about 82 000 ounces and indicated and 147 000 ounces of inferred it's worth noting that a good chunk of the resource is in open pits and this is for good reason really the depth of exploration is still quite shallow in this deposit and so the underground areas of course being less explored now we're going to dive in to verify here and give more of a give you a lay of the land we'll say so here we're gonna focus in on Queensway first so this is our Queensway land package as you saw earlier and then we'll be moving to look at the hammer down and pine Cove projects up in the Green Bay favorite Peninsula next looking at Queensway here as mentioned this is a very sizeable land package it strikes over 110 kilometers along the appleton fault zone you can see here in the west what we're showing here is just grab samples that's really lighting up that trend and this has been the focus of the majority of our exploration work and it's the afz core area where iceberg keats keats west are located and the location of our mineral resource assessment and pea and then we'll take a look as well as a dropkick here so we're going to zoom into this segment of the appleton next and you'll see here the open pits for the core area in the south here along the appleton and yellow and then up here at afz peripheral we call it which includes the addition of dropkick which is over 11 kilometers along strike on the appleton and then small contributions from the jbp fault zone which is another structural corridor that's associated with significant mineralization but very much under explored as for good reason majority of our focus has been on the Appleton zoom in here if you didn't get a look at it from the previous slide now we'll zoom into the core area so this is the appleton core these are these red wire frames are the modeled veins i thought important to show this because a lot of work goes in and the de-risking activities that we've had ongoing through the massive excavations of uncovering the and uncovering vein exposures to the density of drilling all of that data goes into making sure that we have modeled the geometries of these veins as they are what are controlling the gold and ultimately constraining the mineral resource estimate so here's that kind of three kilometer long segment of the appleton we keep talking about that forms the core you can see keats iceberg west and k2 i'll flip on now the mineral resources block model as well as the the um the associated open pits so you can see there the pits have grown a bit and now i'll rotate you into long section view just to see the underground complement and there are a few new areas to draw your attention to that have been brought in to the updated estimate including golden dome and dome deep scene in here and so as mentioned the underground really is a smaller addition at this stage but that is a function of exploration so the next stage is here in the core area is really starting to look deeper we have done some pretty deep exploration drilling intersecting mineralization at depths of upwards of a kilometer vertical the mineralization very similar to what we get near the surface and then also bringing on new discovery areas like Golden Dome and dome deeps that are now included in the resource but it's areas like through the 250 to 500 meter vertical is really the next stage for exploration to pivot to for looking to continue to expand the resource base flying very fast so we can motion sickness up to the dropkick area so 11 kilometers a long strike to the Northeast this is the what we term the AFZ peripheral this is the new dropkick discovery that was brought online I mentioned at the end of 2024 this is quite significant for us as it demonstrates that the system continues this far along strike along the Appleton mineralization has been identified over a structural corridor of about 1.4 kilometers long with some pretty exceptional high grades and as you can see in this image very untested under tested and the eastern side completely open we'll be looking to expand along strike as well and when we look at it in long section you'll see the depth potential as well but some exceptional high-grades these intervals I have here they're probably difficult for you to see it's about seven grams per ton over nearly eighteen point five meters another seven over ten and these are intervals that are occurring on the eastern side of the Appleton and it's important to remember in the core area some of our biggest deposits exist on the eastern site of the fault I'll flip on now the mineral resource estimate block model with the associated open pits and you'll notice when Rob speaks next that a good he shows the preliminary economic assessment the blocks convert into mostly an underground mining scenario switching now into long section view and back with Devane wireframes this is just to give you a sense of the depth of exploration which is about 300 meters vertical we've been following this high-grade or shoot here and getting some spectacular results 43 grams per ton over 15 meters here's 26 over 16 nearly 90 over 6 meters and this mineralization as mentioned is identical to that we see in the core area and is sitting on the western side of the Appleton fault zone so a lot of potential to expand here still so this is a region where we're very excited to go continue to work in do me now now that kind of concludes the Queens Bay portion we're gonna just dive into hammer down with the time that is left so we'll be up in this part of this part the world up in the bavert Green Bay area and these are the two mineral properties that form the hammerdown project we've got the hammer down in the south and pine cove in the north bavert district has an extensive history of production and gold discovery it's littered with showings several significant gold trends but the the takeaway here is that it's been undercapitalized in terms of exploration very few dollars going into the ground and really hasn't seen much in terms modern-day exploration and so zooming in here to the hammer dam project and operation this is just to give you a snapshot of the updated mineral resource estimate that we disclosed earlier this year in measured and indicated we've got about two hundred and sixty thousand ounces at two point four three grams per ton and about one hundred and sixty-one thousand ounces grading about two point three four grams per ton and this is contributing from from three deposits we've brought hammer down here Orion and stagger tight up at the Pine Cove property I'll flip into long section here and it's the same story as the core area depth of exploration still very shallow similar to the core this is about 250 meters vertical so we'll be looking at what I like to say some low-hanging fruit and expanding the resource base in along this trend as there is a lot of room to grow still with very limited testing at depth and to wrap up this section I'll just leave you with this slide as mentioned there's six gold trends that have been defined to date across the district that transect our properties so our team is focused now on compiling the data rebuilding the geologic models understanding these systems so that we can target effectively while our team is growing as we're establishing an exploration team here to focus on this district to expand on the resources that exist here so really looking at that kind of hub-and-spoke model we've got the infrastructure and a mill to feed thank you that wraps up my section I will now hand it over to Rob is going to walk you through the revised preliminary economic assessment and production and development plan for Queens way Good afternoon, and it's a real pleasure to be here. My name's Robert Asadgi. I'm the Chief Operating Officer. I'm really looking forward to telling you what we've been up to for the last year and a half that I've been with the company, all the work that we've made on our operations and projects. So we acquired maritime resources back in Q4 of 2025. we know we've now declared commercial production from the mine we started off with five employees at the mine site and today we have a full complement of owners team geologists and engineers on the staff side as well as contract mining occurring we've been busy there as well be even busier at Pine Cove learning how to process that or at the mill and we both of those assets are running very well now and everything we've learned around getting those two assets up and running at in it in these assets are directly transferable to the Queensway project and we'll make that ramp up even smoother and more efficient so here's a snapshot of the phase one pit and we've established the hammer down pit as well as we're pioneering in the rebellion pit which is part of the the overall mine plan and uh these two uh deposits here will merge together into one pit in phase two uh next year uh as well we uh as melissa talked about we have um other uh assets or deposits in the mine plan orion as well as stogartite that would feed the hub and spoke strategy overlaying that with queensway we have a very uh long future ahead of us here um that's uh over in bay vert we issued the uh the pa for hammerdown um you know a few months after we uh we completed the acquisition to maritime we put out a very good pea and i can tell you that we are holding true to that as well as what we're delivering uh today um in our results in our operating results so we're very pleased on that so uh you know we're we've ramped up to about uh uh 12 000 tons per day in the summer of material movement at the hammerdown uh deposit to which is now our mine to uh deliver 700 tons per day of of good quality ore to the mill um we've also started the ramp up to get to our next uh plateau of 16 000 tons per to be able to deliver next year's mine plan so we're very cognizant of the things that we need to do not just things that are doing today the um mill is running very well we're getting um you know 85 percent recovery we're seeing many days in the 90 percent uh ranges and uh you know we look to improve that and get to our 87 88 percent in the coming months the um the mill is run above 700 tons per day and we see that as something feasible that we can continue to do into next year Looking ahead, we are now in the construction phase of our permanent crusher and the sorting plant that we purchased earlier this year. So those two pieces of infrastructure will be commissioned in Q1 of 2027 and will also give us the ability to deliver high-quality ore and remove dilution at a lower cost. moving on to queensway our uh revised pea um as very similar uh to what we envisioned in the original pea so i was part of the uh i was parts of the team that delivered that pea with our engineering firm and what i'm very happy to say is that the strategy hasn't changed much maybe the The details in the execution have been refined. We've done a lot more engineering work, a lot more metallurgical test work, and we have a more robust and better PEA that we delivered. Very good cash flow from operations, very low initial CapEx, and speed to production is something that you don't see uh very often in the mining industry we'll we'll be delivering gold uh to the mill in under two years of uh of acquiring the maritime assets so you know what's what did we deliver in 2025 as a pa and what did we do this year and it's the same strategy three-phase strategy off-site milling in the first pa we talked about toll milling at the unnamed mill we bought the assets so that we could uh actually mill at our own property so still the same strategy of milling off-sight this mill has an input tailings facility and that's something that we plan on doing at uh at our queensway mill when we get into phase two but it's very similar strategy we've got contractor mining at the beginning and owner mining transition you know owner mining in phase two we uh we see ourselves uh building the on-site mill at 4900 tons per day uh within pit tailings deposition the uh what's different in this phase is that we're going to have two parallel circuits one to process the high grade uh oars through a gravity cil process and another circuit to process the lower grade refractory ores through a gravity flotation circuit the we also are going to be advancing the underground mining to phase two because it's so attractive to deliver more high-grade ore to that gravity cil circuit that we're that we're building and it's being scaled to deliver or to process 2 000 tons per day and the underground mine when it's in full operation will deliver about 1600 tons per day of of that feed to that plant these three is really around expanding the mill to process the lower grade ores that we've stockpiled I talked about these phases and we have a really good execution strategy that we've formulated to be able to take what we what we say in the PEA to what we're going to do in the field and I'll go through that in detail in the upcoming slides the all in sustaining costs of 1375 an ounce cash costs of less than a thousand an ounce very very high grade material being sent from the first three years and Melissa showed you the the pictures of the trenches that we have exposed those veins are on surface and we're targeting the highest grade veins in the industrial parts of the mine plan a hundred thousand plus ounces in the first three years trend you know up to 170 000 ounces when we build the on-site Now, initial recoveries of 94% at Pine Cove and the Gravity CIL plant at Queens Whale will do 92% and 88% through the flotation plant. again our ramp up in tonnage and provides for speed to production low capex cash flow from operations to to be able to pay for the next phases we'll go into some some of these Melissa has gone through these locations before so I'll just skip through that i'll get into what is the site that we're building so first of all um sorry right now we have a transmission line that runs right through the iceberg deposit we have another transmission line and it runs through the edge of keats so we've already secured the contracts with hydro and power newfoundland hydro newfound power to have those transmission lines relocated here and here so that's the one of the big phases we also need to get deployed we over here is the appleton industrial park this is where our exploration team is housed today and we'll the operations team will be using that to deploy To start the construction of the site We also have a new road that we need to build. Oops, sorry a New road that, we need, to build over here To connect the trans canada highway, so that we can have our horror or haulage trucks coming in and off the highway and And so those those pieces of engineering are ongoing we've got four pits that we're initially going to mine keats and iceberg are the two highest grade those are the ones we're targeting first we've got a rom stockpile to build a waste facility overburden facility some water settling ponds and treatment facilities very straightforward for phase one mostly it's an earthworks project and and everything that we've done at hammerdown with the contractors is uh very straightforward to come here and do the same thing here so phase two um what you can see here is the uh addition of all the 21 pits in the area as well we are in pit tailings facility will be uh in this uh area here these three pits will be the life of mine uh tailings facility for the uh for the processing plant and um moving on to the next slide you can see um the uh the pits and the underground so you know what what melissa talked about was um you know these pits are 200 meters deep at the at the deepest uh our underground is designed to about 500 meters because that's all we know of today to be able to create a mine plan around and you can see that uh it's uh you know four kilometers of strike we have three portals to access all of the underground zones from queensway moving over to uh dropkick if that's a peripheral so we have designed a uh underground mine primarily um at the uh at the dropkick zone so this is that high grade uh shoot that melissa was talking about and it will be um be started as part of phase two there is some open pit mining but that would happen happen after the underground mining occurs okay so sorry we'll just go back one so this is you know this is what we're going to start with and at closure this is the site will look like the all of the infrastructure over in roof the tailings facilities will be capped and the other Other open pits will be allowed to be flooded, and we'll have water treatment going forward. We've talked about this quite a bit, high grade feed, 13 grams per ton, 100,000 ounces a year, 150,000 when phase two is built, and then fill in the gap with more exploration in the future years as we process the low-grade ores the mine plan in the last year we have significantly de-risked this mine plan we have converted 97 percent of the material to measure and indicated and you can see the first three years here are all measured and indicated and then the future work that we're doing will convert this material as well from inferred to measured or indicated from a capital summary here we've got our capex to defined in phases by mining and processing and infrastructure but the key here is is to focus on very low upfront capex and phase two really is around buying up building the processing plants and and starting underground and buying the mining equipment phase three is the expansion of the of the processing plant the sustaining capital is the underground development there's quite a bit more underground development in this PA than there was in the initial PA well we've doubled the ounces from the underground mine and it takes double the amount of development to access those ounces from a development schedule so we have held true to the to you know where we are in 2026 where we've been permitting the Queensway project we just updated the MRE and the and the PA and and published that engineering is ongoing we have retained a number of consultants to help us build the the expansion at Pine Cove and and get ready for the Queensway build at at the site in in Gander so looking forward when you look at what we need to do well it's just what we've been doing so when I I've I've been with the company for a year and a half now we've issued three technical reports next year we're going to do another technical report for Queensway to to support the capital estimate to build the processing plants to upgrade all of the open pit and underground from increase the confidence to get that into measured and indicated and and so we're on track to do all those things next year and and then get started once we have our permits does it get started on building the processing plants at at Queensway so the key on this slide is that you know we've got a 1.7 billion dollar NPV for the base case and each hundred million dollar increase will give us each hundred dollar increase it in gold price gives us a hundred million dollars increase in NPV and you can see from here the cash flows from our phase one operations pays and gets us the cash flow positive for phase two and with that I will hand it over to Jared thank you everyone you hear me all right so for those you don't know I'm Jared honors under VP of sustainability a little different this way normally I pass over the permits to Rob and Rob then goes to work but he's passed it over to me we did a little differently I want to start off today talking about you know things that we do a newfound goal make sure that we're committed to our communities around us make sure we talk about our environmental monitoring even you know during expiration we try to set standards in around the area to to not only meet the standards but to actually go above and beyond we'd like to I'm going to be talking about our local hiring and now we like to keep people within the communities and that also helps us then to be active in the communities if our people are working where they're living it allows our communities to thrive and it becomes part of our NIDA community and also to talk about our stakeholder engagements that we have ongoing to make sure that we talk about the positive relationships that we're building one aspect of that is our health and safety programs that we have you know our straw our goal is to strive that everyone goes home at the end of the day better than they showed up at work but we've always been working to make sure that people are safe they go home at day in a day and we've been able to show that even ramping up a new mine and starting up a mill that we can do that safely we are also working to make sure that we take care of each other it's one of our our values a newfound goal and we're you know implementing implementing new you know safety and environmental procedures into an enhanced management system we're focused on sustainability also to make sure that we don't have any lasting impacts on the environment and we're also you know working on to be a contributing community member so we're working on to become members of the Mining Association of Canada and be a part of that is towards sustainable mining as the mayor said you know one of the things the newfound goal is worked on is environmental protection one of the things we believe in is prevention is the best means to reduce environmental impact so we have you know developed stringent internal environmental monitoring activities even in exploration and it goes on into our mining activities we've even started progressive rehabilitation so as soon as we're done at a drill site we'll reclaim those areas to make sure that we minimize our impact and we also have water quality monitoring some of our facilities are located near some water like your salmon rivers and things like that so we know that we need to make that we monitor that water correctly ensure we're not having any effects on the environment and then you know we make sure that we always maintain or exceed all regulatory requirements we also spend a significant amount of time on our social license operate to make sure that include the people that need to be included and to build these positive relationships that the mayor mentioned earlier today you know we have constant community regular regulatory engagement uh with the both provincial and federal level we're active in our communities making sure the communities know what we're doing why we're doing it and and answer their questions we we talk to our indigenous communities that are located on the island and we also engage all of our other key stakeholders from local fire departments to different associations such as atlantic salmon federation and local schools part of building community partnerships you know we've also moved towards community minded sponsorships so we moved and implemented a strategy to look at sponsoring community events that have a lasting impact in the community and there's a list of some recent community sponsorships that we've done you've always asked about employment when I talk in the communities but we are you know a proud new central Newfoundland company you know we're always looking to work with our communities that we are that we operate near as we moved from exploration into mining and also at Queensway will create more job opportunities and that's something positive that our communities are seeing and we always strive for local procurement so we always try to buy things locally if possible if we can't get it right next to our facility we try to get it in the province of New foundland Labrador when we say we create jobs close to our facilities over 90% of our workforce is actually from the province new flannel labrador and 60 percent of our workforce in the mining industry get to go home sleep in their beds take the kids to school and attend hockey so you know that's something that's rare in a mining um you know industry in in many areas i think is a really positive thing the new newfound goal is going for it and then the question the other question that I'm sure is on all your minds is the current environmental assessment process that we're going through for Queensway so right now you know we're in the midst of permitting the phase one for Queensway which is a 700 ton per day mine where we'll mine the rock and then ship it down to pineco for processing but we kicked off that process in April so that's where we actually submitted the documentation to the government you know we went through some steps there the minister made a decision that we needed to do an environmental preview report as you can see even the province worked with us during that process and got us our guidelines within 60 days so within 60 days we knew the questions we had to answer our goal is then to submit that environmental preview report in november of this year and then if you look at 45 to 60 days later when a minister decision is due that will bring us up to january 2027. that means in the q1 of next year you know newfound's goal is that we'll have our environmental assessment in hand and ready for further permitting well i know they they made it seem just so easy so smooth and i can tell you like i've been at this game now for 40 years i've done this a few times a couple and this is probably the one that's gone the smoothest and it's a real testament to the team the work that's gone in behind here really it's just top quality and that's really what what supported it for us it's really this journey that started last january when i when i stepped in the role and uh i don't know just a bunch of bullet points on the page just doesn't seem to do it justice um i look over at our banker who's nodding his head and saying yeah i you know i've seen you go through this transition and And it really was quite a very fast, I'll say, transition where, you know, we had a number of, I guess, the best analogy. You go to the circus and you start spinning the plates and then you do more plates and this one starts while you go back. And that's what it kind of felt like as we were moving through very quickly from, you publishing that first mineral resource estimate last March then on the back of that we had enormous recent receptivity from the institutions that now we had a number we had something to go to market with we had no institutional investors and uh and so we had this uh negative reaction in the marketplace from the retail polo had this lofty expectation but you know we have such a quality deposit that oh we got this interest and so on the back of that we managed to put together a 83 million dollar deal but you know 30 million of that was eric's saying hey i'm in so uh so for us that was that was a real key step to then say okay we can get this thing now to a place where we can you know get to a space where we finance the bill we had enough money now to do what we wanted so So we drilled, Melissa did her thing drilling it off, but we spent all our time, most of our time in fill. But we'll come back to that because, you know, the updated MRE showed a significant increase and it was really on the back of that dropkick discovery. And we put out the PA, the phased approach was novel, I think, in the industry. And it was, really, it was that first report that I saw the draft, and I saw almost $900 million of CapEx when you've got a market cap of maybe not even $300 million. It was like, oh, my God, we're going to get killed. And so, you know, it Was the work of everybody coming together and saying, hang on, how can we do this and build this thing with what we can really finance? And so what came out was the strategy that Rob outlined, and pretty much the same strategy, but what we've done is de-risk that first phase. Really focused in on, first, biggest risk is geology. And you've got to know what's going to go through that mill and understand what's gonna get poured at the back end. So that's why we went to the grade control drilling. we did that and then doing all the infill drilling of phase one in particular so once the PA came out excuse me then we applied for our permit and Jared working in the background actually up until that point had been working with government and you know I again mention how government really does work with the company and so we working to get it just right and so when we applied in April we knew that walk was not going to be a two and a half year clock it was fairly short so community had certain questions and now we're answering those questions or will be when submit our answers but again you know I come back to you're the duck on water but there's lots of lots of movement underwater just to keep you going and and again it's the team i come back to the team and not just the people here but the people at site we closed on maritime well that you know that that really put uh the fox in the hen house where now we got this new mine where we can build a mine but at the same time we're building a company and they're two very different things very very different things so you know a lot of we had zero procedures took over a company that there was no operational readiness we had to really start from zero and Robin his team did a fantastic job to get there and ramp up with a brand new team like he said he had what four employees we had four so we ramped up a full team and you know in the first basically six months got to commercial production and that it really is humming right now so you know again uh very proud of uh everything they've accomplished and so now we raised 120 million dollars and now you can see the end queensway we've got old coming out we broke ground at uh at the mill retooling we've been pouring concrete and i think this week they started putting up the buildings so you know everything's everything's on track everything's going yet every once in a while you got to get one of those plates spinning up again and put in a bit of effort but you know i'm so pleased so proud of everyone and just so pleased of how things have been going and quite exciting quite excited and i'll come full circle to what paul said to see what the future is going to hold a bright future a bold future very bright uh one phase one and then next up will be phase two so it'll be a pretty busy four years five years ahead of us you know to get to that 200 000 ounce mark so with that i want to thank you all for coming and uh i guess there's a mic back here that uh because we got online peeps please state your questions in in the mic and we'll try and answer them for sure we didn't answer all the questions there we go the brave soul someone's got it that's right hi quila with uh hc main right um you guys were talking about re uh rejiggering the power line earlier um in the presentation how much do you think that will cost is there permitting involved in that how long will it take and is there maybe even community benefits to that that you could maybe discuss a little bit yeah so there's a few a few pieces to it and i won't get rob to come out i'll give you the high level answer um so we had a budget of about 8 million bucks to do that and in fact there's some rebates that we got down and i think what the total is about six so it's about six million bucks to be able to do it and we basically hire hydro and newfoundland power come and do it. And so we paid them they're planning it and right now it's planned for next year and it's really to reroute that power line but the nice thing is is once they reroute the power line the one that's going on site all we're going to do is take out a chunk of it once it's rerouted and we'll have power right at Queensway for our phase two well the communities communities I mean they're already getting fed and all we are doing is just taking the piece here rerouting around our site and then just cutting in between there we go i knew it would start yeah i just wanted to get my head around the increase in the underground mining in the updated pea i guess i'm i guess my question is uh have you moved stuff from previously open pit to underground or did you just add more underground resources that went into the mine plan from the resource so the way the resource was put together we just did i'm sorry uh a four thousand dollar gold pit shell and used a 0.3 cutoff which is around 35 come around there so within that shell it was just what was at a 0,3 cut off and then whatever's below that falls into an underground resource when the miners when mining engineers took it over we looked at one the shell and it would have added 150 400 million dollars worth of dirt to move or less profitable than what the underground ended up being so weren't it a little bit different from the core not have as much as that of that low-grade stock work the polar today in that pit and so it didn't make sense it just stay on the high-grade there we go they're all coming out of the woodwork now a Don yeah a couple of questions first on the on the lower grade portion of the Queensway so the gravity concentrate portion of a of the mill what kind of concentrate grade do think you're going to get and where's that concentrate going to be shipped okay um so as you know the queen's way mineralization there's it's there's coarse gold throughout even in the lower grade portions it's not as much that's why there's a gravity portion in the flotation circuit and the flotations con somewhere between 30 40 grams a ton will be there if you step back and you look at the whole deposit a couple of key features one about 70 percent of the gold is in 30 percent of the tons so that's why the the circuit uh the cil circuit was put in we said okay the the grade control drilling will focus on that 70 percent or 30 of the tons because that's where the high grade is and then on the uh lower grade material it's of course being floated because um it's got a refractory component now only about 10 to 15 of the gold total is refractory but you can't split it out from the rest so that 70 of the tons is going to go through the flotation circuit and we haven't settled on a on a trader yet and just and over a good point over 80% of the gold ends up being recovered in doorway as a result than that and that's all the work that's been done over last year around the metallurgy is really better on geology is to better understand where what is this distribution of the low-grade well they're all excited for the the market close like anyway we gotta wait for another 15 seconds or something so so yeah so with all that work you know we better understood how to split the deposit day okay so yeah that you weren't gonna expect that much reaction on the and one more question just on the Pine Cove mill so that's being expanded to 1,400 tons per day when the Queensway phase one runs out the end of 2030 how do you anticipate that mill being fed so interesting question Don we're so first part is as Melissa pointed out there really hasn't been a lot of love on those packages on those property packages terms of expiration I'm gonna say for at least a decade if not more and so you know we think there's good opportunity especially right at the mines were at or the exist or hit existing and historic mine the other thing too is its optionality maybe there's more Queens way that'll go there at you know higher grade or whatnot but we'll have an extra 700 which is not in anybody's model at this time don't be intimidated by a clapping okay well is that it listen thanks everybody for coming I hope I hope it was very well we have one more question no no way yeah no we got a reception yeah we got reception to go to and I think it's beer o'clock or wine o' clock whichever ever you like because they've been they push the button they told us it's your o' clock all right thanks everyone