Third Quarter 2026 Results Conference Call and Webcast - NEW FOUND GOLD CORP

Financial Performance:

• Q3 2026 revenue was $41.6 million ($68 million YTD), up from $16 million in Q2, driven by commercial production at Hammerdown.
• Sold 6,935 ounces at an average realized price of $4,285/oz.
• Income from mining operations was $18.6 million (45% of revenue); EBITDA was positive at $13.1 million.
• Cash costs were $2,887/oz and All-In Sustaining Costs (AISC) were $3,279/oz, exceeding the PEA base case by $904/oz.
• Net loss for the quarter was $7 million ($0.02/share), a significant improvement from the $13 million loss in Q3 2025, though higher than Q2's $11 million loss.
• Operating cash flow before working capital changes was $11 million; cash used in operating activities was $7 million due to working capital adjustments.
• Balance sheet ended with $167.1 million in cash and $166.3 million in working capital; total assets were $706 million.
• Debt includes a drawn $70 million first tranche of the $105 million EdgePoint facility at a fixed 8.75% rate; a $35 million second tranche remains available.

Guidance and Future Outlook:

• Expect operating costs to decline long-term as strip ratios normalize and new infrastructure (crusher/sorter) commissions.
• Queensway Phase 1 remains fully funded; first mineralized material to Pine Cove mill targeted for Q4 2027.
• Updated Mineral Resource Estimates (MRE) for both Queensway and Hammerdown expected in early 2027 following infill drilling completion.
• Newfound Gold targets steady-state production at Hammerdown through 2026-2027 while advancing Queensway permitting and engineering.
• AISC and cash cost targets are expected to improve significantly as the ramp-up phase concludes and the Pine Cove circuit conversion (gravity/carbon leach) completes in Q4 2027.

Business Segments and Product Lines:

• Hammerdown Gold Mine: Achieved commercial production in September 2026; produced 4,863 oz in Q3 (avg head grade 2.77 g/t).
• Pine Cove Mill: Currently operating at 66,000 tpd; receiving a permit amendment to convert to gravity carbon leach (expected recovery lift from 87% to 92%) with potential throughput expansion to 1,400 tpd for Queensway.
• Queensway Gold Project: Flagship project with revised 2026 PEA showing 126% IRR and $1.73 billion NPV (5% discount, $3,600/oz base case); measured and indicated resources grew 38% to 1.92 million oz.
• Infrastructure: Permanent onsite crusher and sorter at Hammerdown nearing substantial completion; commissioning expected in H1 2027 to reduce costs and improve grade delivery.

Market and Competitive Landscape:

• Newfound Gold is established as Canada's newest gold producer, positioned in a top-tier mining jurisdiction (Newfoundland and Labrador).
• Queensway's revised PEA demonstrates high capital efficiency with Phase 1 capital at ~$150 million, designed to self-fund subsequent phases.
• The project features a "hub and spoke" strategy where Pine Cove serves as a processing hub for both existing Hammerdown and future Queensway production.
• Management cites the jurisdiction's pro-mining stance and local community support as key competitive advantages.

Risks and Challenges:

• Cost Overruns: Q3 AISC was $904/oz higher than the PEA, driven by a higher strip ratio (12.4:1 vs 9.6:1 PEA) due to forward-scheduled overburden stripping and unanticipated grade dilution from a larger-than-expected "goodbye cut."
• Permitting: Queensway Phase 1 relies on an Environmental Review Report decision expected late 2026/early 2027; delays could impact the Q4 2027 production target.
• Operational Delays: Drilling was slower than planned due to contractor maintenance and deep directional challenges, though infill drilling is complete.
• Geological Risks: Inferred resources remain speculative; the PEA includes inferred resources that have not demonstrated economic viability.

Management Commentary and Tone:

• Tone was confident and positive, emphasizing the "transformational" nature of the quarter as the company transitions from development to production.
• Management highlighted the strategic value of having a permitted mill (Pine Cove) adjacent to the development stage (Hammerdown/Queensway), accelerating the path to production.
• Keith Boyle (CEO) expressed strong satisfaction with the safety record (zero-loss time incidents) and the local hiring commitment (>90% provincial workforce).
• CFO Hashim Ahmed confirmed a strong balance sheet capable of funding the company's 2026-2027 priorities without immediate dilution.

Analyst Questions and Answers:

• Exploration Guidance: Management declined to provide specific drilling budgets for the coming year, stating the budget is in progress, but confirmed infill drilling will support an updated MRE in 2027.
• MRE Updates: Confirmed that an updated MRE for Queensway is likely in 2027 to support a feasibility study; an updated MRE for Hammerdown is also expected following Stage 2 pit infill.
• Grade Reconciliation: Current reconciliation to the block model is approximately 3% variance; mine grade for the quarter was 2.02 g/t.
• Cost Drivers: Clarified that elevated costs are temporary due to strategic timing of stripping and specific one-time costs (fuel surcharges, water treatment), with clear levers to reduce costs in the future.
• Waste/Strip Ratios: Detailed that Rambouillien pit work was accelerated to avoid winter constraints, temporarily increasing material movement costs.

Other Key Points:

• Safety: Teams worked over 328,000 person-hours with zero loss time incidents as of September 30, 2026.
• Queensway Resource Growth: The inclusion of the "Dropkick" zone (11km north of the ASZ core) contributed significantly to the 38% increase in measured and indicated resources.
• Trading Status: Company commenced trading on the Toronto Stock Exchange main board post-quarter.
• Pine Cove Conversion: Permit amendment received to convert the flotation/merrill crow circuit to gravity carbon leach, critical for the hub strategy.
• Financial Rounding: All financial figures mentioned are rounded to the nearest million CAD, and non-IFRS measures (cash costs, AISC) are disclosed per standard industry practice.