Steppe Gold Draw Downs US$40.4M for the Phase 2 Expansion of the ATO Gold Mine

Steppe Gold Ltd. (TSX: STGO) (OTCQX: STPGF) (FSE: 2J9) ("Steppe Gold" or the "Company") is pleased to announce it has reached the next financing milestone for the Phase 2 Expansion at the 100% owned ATO Gold Mine (the "ATO Phase 2 Expansion"). This coincides with further progress on the turnkey engineering, procurement, and construction contract (the "EPC Contract"), and the second project finance draw down of US$40.4m.

Highlights

• Second draw down of US$40.4m from the project finance package, was funded on March 20, 2024, with a total of $50m has been drawn from the first tranche of the US$150m project finance package since October 2023.

• Steppe Gold has now made its second milestone payment of US$37m towards Phase 2 Expansion for procurement of major long lead items, mobilization costs, early construction works and foundational work.

• The major long lead items include the flotations cells, grinding mills, cluster cyclones, thickener units, filters and pumping systems.

• The ATO Phase 2 Expansion is proceeding according to projected timelines and budgets, with commissioning planned for Q1 2026.

• Further to the announcement on January 9, 2024, the Company confirms that the contract amount payable to Hexagon for the full performance of the work under the EPC Contract is approximately $148.4 million ("Contract Amount").

• The Phase 2 Expansion of US$150M is fully funded by the project finance package that has been made available to the Company and its affiliates by TDB Capital and the Trade and Development Bank of Mongolia.

Mr. Bataa Tumur-Ochir, Steppe Gold Chairman and CEO, commented, "We are extremely pleased to report solid progress on our ATO Phase 2 Expansion, and we have now fully drawn down the first $50m of the project financing package. With this major drawdown, together with our EPC partners at Hexagon, we can accelerate the ordering of long lead items, early construction and foundational works and start mobilization. Upon completion of the ATO Phase 2 Expansion and Boroo Gold acquisition, Steppe Gold is estimated to produce over 160,000 ounces by 2026."

Project Financing

On July 11, 2023, the Company signed a binding term sheet with the TDB Group for US$150m in financing to fund the construction and completion of the ATO Phase 2 Expansion at the ATO Gold Mine. The financing consisted of three tranches of US$50m each, for a total of US$150m.

On August 30, 2023, the Company signed a loan agreement with Trade and Development Bank of Mongolia for the first tranche of US$50m with the term of 48 months and interest of 13.4% per annum.

The initial draw down of US$9.6m was funded on October 9, 2023, and the second draw down of US$40.4m was funded on March 20, 2024.

EPC Contract

With the agreement on the EPC Contract schedule and milestone payments, the Company is pleased to report that performance of the work under the EPC Contract is now well underway, and Hexagon is preparing to mobilize to the ATO site in the coming months.

Per the EPC Contract and Purchase Plan for long lead items and Milestone Schedule, the Contractor is delivering:

1) Flotation cells;
2) Grinding mills;
3) Cluster cyclones;
4) Thickener units;
5) Filters; and,
6) Pumping systems;

Hexagon is working with the Company to undertake early construction work as spring weather starts to arrive at the ATO site. In addition, Hexagon is expected to appoint an internationally recognized engineering firm to update recent feasibility studies and prepare front-end engineering work.

About Steppe Gold Ltd.
Steppe Gold is Mongolia's premier precious metals company. It is 100% owner of the ATO Gold Mine and 80% of the Uudam Khundii project in Mongolia. Steppe Gold is now acquiring Boroo Gold LLC to create the leading and largest gold producer in Mongolia. Upon completion of this merger, the Company will increase its production to 160Koz of AuEq per annum by 2026.

About Hexagon
Established in 2014, Hexagon Build Engineering has been actively engaged in engineering, construction, and infrastructure projects both in Mongolia and internationally. Hexagon is devoted to sustainable growth in construction and engineering solutions while aiming to provide the best services that meet customers' expectations with international standards regardless of scale.

For Further information, please contact:
Bataa Tumur-Ochir, Chairman and CEO

Jeremy South, Senior Vice President and CFO

Shangri-La office, Suite 1201, Olympic Street
19A, Sukhbaatar District 1,
Ulaanbaatar 14241, Mongolia
Tel: +976 7732 1914

Cautionary Note Regarding Forward-Looking Statements:

This news release contains certain statements or disclosures relating to the Company that are based on the expectations of its management as well as assumptions made by and information currently available to the Company which may constitute forward-looking statements or information ("forward-looking statements") under applicable securities laws. All such statements and disclosures, other than those of historical fact, which address activities, events, outcomes, results or developments that the Company anticipates or expects may, or will, occur in the future (in whole or in part) should be considered forward-looking statements. In some cases, forward-looking statements can be identified by the use of the words "allow", "anticipated", "can", "continue", "expected", "plans", "planned', "projected", "undertake", "will" and similar expressions. In particular, but without limiting the foregoing, this news release contains forward-looking statements pertaining to the following: the mobilization of the Hexagon team to the ATO site; the key milestone target dates and related payments in respect of the EPC Contract; the appointment by Hexagon with respect to an internationally recognized engineering firm; the timing related to the draw downs under the EPC Contract; the Company's operational position, potential, growth, success, commitments and strategy; the timing, goals, targets, benefits, production and revenue related to the ATO Gold Mine; and the use of proceeds in respect of the TDB Project Finance package.

The forward-looking statements contained in this news release reflect several material factors and expectations and assumptions of the Company including, without limitation: that the Company will continue to conduct its operations in a manner consistent with past operations; the general continuance of current or, where applicable, assumed industry conditions; and estimates related to the commencement and production of gold.

The Company believes the material factors, expectations and assumptions reflected in the forward-looking statements are reasonable at this time but no assurance can be given that these factors, expectations and assumptions will prove to be correct. The forward-looking statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements including, without limitation: changes in business plans and strategies, market and capital finance conditions, general economic, market and business conditions; reliance on industry partners; and certain other risks detailed from time to time in the Company's public disclosure documents including, without limitation, those risks identified in this news release, and in the Company's annual information form for the year ended December 31, 2022, copies of which are available on the Company's SEDAR+ profile at www.sedarplus.ca. Readers are cautioned that the foregoing list of factors is not exhaustive and are cautioned not to place undue reliance on these forward-looking statements.

The forward-looking statements contained in this news release are made as of the date hereof and the Company undertakes no obligations to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.

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