Highlights

• Record annual gold production of 172,034 ounces, representing an increase of 39% from 2023
• 2025 consolidated gold production expected to be between 190,000 and 210,000 ounces at an all-in sustaining cost of US$1,325 – $1,475 per ounce
• Capital investments in 2025 to lay foundation for the fill-the-mill strategy and long-term growth
• Anticipated consolidated 2026 production guidance of 195,000 to 220,000 ounces

Wesdome Gold Mines Ltd. (TSX: WDO) (OTCQX: WDOFF) announces its production results for the fourth quarter and full year ended December 31, 2024 and provides a multi-year operational outlook. The Company plans to release its fourth quarter and full year 2024 financial results after markets close on Wednesday, March 19, 2025 and host a conference call and webcast the following morning. All amounts are expressed in Canadian dollars unless otherwise indicated.

Q4 2024 and Full Year 2024 Operating Results

Anthea Bath, President and CEO of Wesdome, commented, “In 2024, for the second consecutive year, we met our initial production guidance while improving health and safety performance. This achievement underscores our commitment to operational excellence, consistent delivery and responsible mining practices. Record production further reflects a stronger operational foundation as well as the experience and commitment of our team. Through improved planning and disciplined execution, we expect to continue delivering sustainable growth and returns to our shareholders.

“In 2025, our efforts will centre on delivering consistently, operating safely and responsibly and unlocking additional value from our high-grade assets in Ontario and Quebec. A full year of production from the high-grade Kiena Deep Zone and the addition of ore from Presqu’île late in the year will be the key drivers of increased production at Kiena, while Eagle River will continue to benefit from development and efficiency improvements. Together, these operations are expected to drive another substantial increase in annual production to between 190,000 and 210,000 ounces, with costs in the lower half of the industry cost curve, further solidifying our position as a high-quality, all-Canadian, low-cost gold producer.

“Exploration remains the core of our strategy with a record $38 million program aimed at growing existing high-grade zones, such as Kiena Deep and the 300 Zone at Eagle River, while also targeting shallower zones like Dubuisson and 6 Central. Our goal is to build on recent exploration success by delivering resource and reserve growth that extends mine life and enhances the value of our assets. In parallel, we are investing in infrastructure projects to support both near-term objectives and future growth.

“With the advancement of the fill-the-mill strategy, we expect to deliver increasing and sustainable production levels with strong operating margins, driven by mine plan optimization, continuous operational improvements, anticipated resource growth and strategic investment in our operations. With a strong balance sheet, robust free cash flow and a clear vision, Wesdome is well positioned to invest in the future and create substantial long-term value.”

2025 Guidance

Notes:

1. Consolidated 2025 guidance for corporate and general costs excludes an estimated $4 million in stock-based compensation. Corporate G&A of $24 million is allocated equally to each mine and is included in the Company’s all-in sustaining cost calculation.
2. Exploration and evaluation costs primarily include surface drilling activities and regional office expenses.
3. This is a financial measure or ratio that is a non-IFRS financial measure or ratio. Certain additional disclosures for non-IFRS financial measures and ratios have been incorporated by reference and additional detail can be found at the end of this press release and in the section ‘Non-IFRS Performance Measures’ in the Company’s management discussion and analysis for the three and nine months ended September 30, 2024.
4. Total capital expenditures are the sum of sustaining and growth capital expenditures and are reported under investing activities on the statements of cash flows in the Company’s consolidated financial statements.

2025 Guidance Commentary

• Consolidated production is expected to be between 190,000 and 210,000 ounces, which, based on the midpoint, represents an approximately 16% increase compared to 2024. Production is anticipated to strengthen in the second half of 2025, with the first and fourth quarters accounting for approximately 20% and 30% of total gold production, respectively.
  • The gold production outlook for Eagle River of 100,000 to 110,000 ounces reflects a 10% increase compared to the prior year driven by the establishment of new underground areas, enabling increased throughput levels. Production at Eagle River in the second half of the year is expected to represent approximately 55% of its full year 2025 output.
  • Kiena gold production guidance of 90,000 to 100,000 ounces represents a material increase over 2024, with four full quarters of production sourced from the Kiena Deep A Zone, augmented by approximately 10,000 ounces of pre-commercial production from the Presqu’île Zone. Grade variability is expected to decrease in 2025 as the majority of the planned mining reserves have now been substantially delineated. Additionally, dilution control is improving and enhanced mining execution – such as the selective application of a hybrid long-hole and cut-and-fill mining strategy – is contributing to more consistent performance. While initial stope production at Presqu’île remains on track for late 2025, the expected receipt of a bulk sample permit early in the year may allow for the stockpiling of development ore with processing projected to commence in the fourth quarter. The second half of the year is expected to represent approximately 60% of Kiena’s annual production.

• Consolidated cash costs in 2025 are expected to be $1,125 to $1,250 per ounce, lower than the prior year as a result of ongoing cost control initiatives and an increase in gold sales.
  • Eagle River cash costs in 2025 are expected to be $1,225 to $1,350 per ounce, below 2024 levels due to increased volumes and reflecting various cost containment initiatives.
  • Kiena cash cost guidance of $1,025 to $1,150 per ounce is lower than the prior year as increased production offsets higher planned development and delineation costs.
• All-in sustaining costs per ounce are expected to be $1,775 to $1,975 (US$1,325 to US$1,475). Due to the projected profile of production and capital outlays, the Company expects all-in sustaining costs per ounce in the first half of the year to be approximately 15% higher than full year guidance.
• Consolidated sustaining and growth capital investment is expected to be $160 million in 2025. This includes the remaining capital required to complete the Presqu’île exploration ramp, together with investment in development, infrastructure, equipment upgrades and underground exploration at both sites. These initiatives are expected to drive high-return production growth over the coming years. Both sites have budgeted for increased development to open new mining fronts as part of the Company’s fill-the-mill strategy, enhancing operating flexibility and improving equipment utilization.
  • Total capital investment at Eagle River is expected to be $65 million in 2025. Sustaining capital includes $25 million in deferred development, $8 million in delineation and exploration drilling and $27 million in mobile and fixed infrastructure upgrades to support the fill-the-mill strategy. Growth capital of $5 million includes power line enhancements as well as tailings engineering and design work.
  • Total capital investment at Kiena is expected to be $95 million in 2025. Sustaining capital of $55 million includes $15 million in deferred development, $13 million in delineation and exploration drilling, $20 million in tailings and other infrastructure, and $6 million in mobile equipment, including new battery electric trucks. Growth capital is expected to be $40 million, mostly related to remaining development of the exploration ramp from surface to level 33.

• At prevailing gold prices, the Company is well positioned to deliver robust free cash flow and further strengthen available liquidity in 2025, driven by increased production and reduced costs. This strong financial performance will support the Company’s continued focus on high return long-term organic growth initiatives. The estimated impact of a US$100 per ounce change in realized gold prices on annual free cash flow is approximately $20 million. The Company also projects an effective tax rate of approximately 35%, reflecting the use of available tax attributes and applicable tax rates.

Operational Outlook

Gold production is expected to continue to increase in 2026 to between 195,000 and 220,000 ounces. Consistent levels of production from Eagle River will be primarily driven by higher expected throughput levels, benefitting from planned infrastructure and optimization improvements, as well as delineation drilling around existing development, a strategic priority for the operation. At Kiena, a full year of production from the Presqu’île Zone is expected to drive an increase in processed ore and gold production.

Achieving long-term sustainable production growth consistent with recent years will require success across operations, technical services and exploration to drive targeted efficiencies, optimization, infrastructure upgrades, and resource development initiatives. These initiatives, coupled with a commitment to cost management and operational excellence, provide a credible and achievable framework to deliver value for shareholders.

At Eagle River, production is expected to benefit from a significant contribution from the high-grade 300 Zone as well as from Wesdome’s global resource model initiative. This program aims to unlock economic mineralization close to surface and existing development through the digitization of historic mine data, deployment of alternative mining methods as well as the use of incremental and break-even cut-off grade analysis. Improved development performance is expected to increase access to ore and improve mill utilization, allowing for the consistent delivery of ore to the 1,200 tonnes per day mill. As the mine advances the 300 Zone at depth, these efforts are projected to support consistent annual production levels. A planned increase in deferred development in 2025 is anticipated to enable greater access to drilled inventory going forward, supporting operational flexibility and reducing risks to production targets.

At Kiena, consistent and efficient mining of the Kiena Deep A Zone will remain the cornerstone of production over the medium term. Steady improvements in hoisting and underground infrastructure, including ventilation and electric haulage infrastructure, are expected to support higher mining rates and efficiency gains. Completion of stope development in the Presqu’île Zone as well as the exploration ramp to level 33 at Kiena will allow access to high-potential mining targets, facilitating future production from the 33-level drift. Other near-surface deposits such as Dubuisson are expected to be delineated in the medium term and integrated into mine plans, contributing to potential mine life extension and increased utilization of the 2,040 tonnes per day mill.

The Company believes that consolidated cash costs and all-in sustaining costs per ounce in the lower half of the industry cost curve are achievable. As effective mill utilization increases at Eagle River and Kiena, the benefits of planned investment and economies of scale are expected to drive down unit costs and improve margins. Sustaining and growth capital spend will remain disciplined with targeted investments in infrastructure, equipment and exploration aimed at supporting production growth and enhancing long-term asset value. Total annual sustaining expenditures over the next two years are expected to be between $100 and $120 million, including $20 to $30 million per year allocated to underground exploration and delineation drilling to make new discoveries, extend mine life and expand reserves adjacent to current infrastructure.

The Company is currently evaluating the timing of completing updated NI 43-101 technical reports to incorporate strategic asset optimization initiatives currently underway.

About Wesdome Gold Mines Ltd.

Wesdome is a Canadian-focused gold producer with two high-grade underground assets, the Eagle River mine in Ontario and the Kiena mine in Québec. The Company’s primary goal is to responsibly leverage its operating platform and high-quality brownfield and greenfield exploration pipeline to build Canada’s next intermediate gold producer.