Eldorado Gold Corporation (TSX: ELD) (NYSE: EGO) reports the Company’s financial and operational results for the second quarter of 2023. For further information, please see the Company’s Consolidated Financial Statements and Management’s Discussion and Analysis filed on SEDAR+ at www.sedarplus.com under the Company’s profile.

Second Quarter 2023 Highlights

Operations

• Gold production: 109,435 ounces, compared to 113,462 ounces in Q2 2022, a 4% decrease from Q2 2022 as a result of lower throughput at Lamaque due to the wildfires in the region and lower average gold grade and recoveries at Olympias.
• Gold sales: 110,134 ounces at an average realized gold price per ounce sold¹ of $1,953, compared to 107,631 ounces at an average realized gold price per ounce sold of $1,849 in Q2 2022. Gold sales increased 2% from Q2 2022 primarily a result of an increase in production at Kisladag.
• Production costs: $117.0 million, compared to $109.3 million in Q2 2022. The increase was primarily due to higher royalty expense and increased sales volumes.
• Cash operating costs¹: $791 per ounce gold sold, compared to $789 per ounce gold sold in Q2 2022. Cash operating costs increased from Q2 2022 primarily as a result of lower by-product credits.
• All-in sustaining costs (“AISC”)¹: $1,296 per ounce sold, compared to $1,270 per ounce sold in Q2 2022, primarily reflecting the increase in cash operating costs per ounce sold and slightly offset by lower sustaining capital expenditures.
• Total capital expenditures: $99.4 million, including $42.6 million of growth capital¹ invested at Skouries, with activity focused on mobilization, procurement and advancement of contracts. Growth capital invested at the operating mines totalled $29.0 million and was primarily related to Kisladag waste stripping to support mine life extension and construction of the first phase of the North Heap Leach Pad. Sustaining capital¹ totalled $26.1 million, including $16.2 million at Lamaque for underground development, equipment rebuilds, and the expansion of the tailing management facility.
• Production and cost outlook: The Company is maintaining its 2023 annual gold production guidance and cost guidance. Gold production is expected to be 475,000 – 515,000 ounces of gold. Cash operating costs per ounce sold are expected to be $760 to $860, total operating costs of $860 to $960 per ounce sold and AISC per ounce sold of $1,190 to $1,290.

Financial

• Revenue: $229.9 million in Q2 2023, an increase of 8% from $213.4 million in Q2 2022, primarily due to higher sales volumes, and higher average realized gold price.
• Net cash generated from operating activities from continuing operations: $75.3 million compared to $27.0 million in Q2 2022, primarily as a result of higher gold sales volumes and higher average realized prices.
• Cash flow from operating activities before changes in working capital²: $82.4 million in Q2 2023, compared to $49.2 million in Q2 2022, primarily driven by higher sales volumes, lower finance costs and lower income taxes paid.
• Cash, cash equivalents and term deposits: $456.6 million, as at June 30, 2023. Cash increased by $194.7 million from March 31, 2023, primarily as a result of a strategic equity investment ($61.3 million) by the European Bank for Reconstruction and Development and a bought deal financing ($101.1 million) that were both completed during the quarter.
• Net earnings (loss): Net earnings of $1.5 million, or $0.01 earnings per share, compared to net loss of $22.9 million or $0.12 loss per share in Q2 2022. Higher net earnings in Q2 2023, compared to Q2 2022, is primarily a result of higher gold sales, higher average realized gold prices, foreign exchange gain and lower finance costs.
• Adjusted net earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”)²: $106.8 million, compared to $88.5 million in Q2 2022. The increase was primarily driven by increased gold sales, coupled with lower finance costs.
• Adjusted net earnings (loss)²: $16.1 million or $0.09 earnings per share, compared to net earnings of $13.6 million or $0.07 earnings per share in Q2 2022. Adjusted net earnings in Q2 2023 added back a non-cash loss of $21.4 million on foreign exchange translation of deferred tax balances and removed a non-cash $8.4 million gain on derivative instruments, primarily on gold collars entered into during this quarter.
• Free cash flow²: Negative $21.7 million compared to negative $62.7 million in Q2 2022. Free cash flow excluding Skouries was $13.2 million compared to negative $56.9 million in Q2 2022, with the stronger figure this quarter due primarily to both higher sales volumes and realized gold price as well as lower tax installments and temporary working capital movements.
• Project Facility Drawdowns: Drawdowns on the Skouries Term Facility for Q2 2023 totalled €65.9 million, including the previously reported initial drawdown of €32.3 million in April 2023.

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¹ These financial measures or ratios are non-IFRS financial measures or ratios. Certain additional disclosure 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 and Other Financial Measures and Ratios’ in the Company’s June 30, 2023 MD&A.

Corporate

• Strategic Investment by the EBRD: On June 14, 2023, Eldorado completed a strategic investment of CDN $81.5 million ($61.3 million) by the EBRD. In June the funds were invested in the Skouries project in Northern Greece, and were credited against the Company’s 20% equity funding commitment per the terms of the project financing facility that closed on April 5, 2023.
• Bought Deal: On June 7, 2023, the Company completed a bought deal offering for gross proceeds of CDN $135.2 million ($101.1 million). Proceeds from the offering are expected to be used to fund growth initiatives across Eldorado’s portfolio, including some not currently contemplated within the Company’s five-year plan, as well as for general corporate and working capital purposes.
• Gold Collar Contracts: In May 2023, Eldorado entered into a series of zero-cost gold collar contracts in order to manage potential cash flow variability during the Skouries construction period.
• Sustainability: On May 31, 2023, the Company published the 2022 Sustainability Report, its 11^th annual report, detailing our environmental, social and governance performance.
• Appointed Vice President, Legal: On July 24, 2023, Tamiko Ohta was appointed as Vice President, Legal.

Skouries Highlights

• As at June 30, 2023, detailed engineering is 48% complete and procurement is 62% complete.
• Growth capital invested of $42.6 million in Q2 2023, expected total investment of $240-$260 million in 2023.
• Mobilized the first major earthwork initiative for construction of the haul roads to build earthworks structures.
• Commenced structural steel and cladding of process plant and foundation construction of primary crusher.
• On track for commissioning in mid-2025 and commercial production at the end of 2025.

Transitioned to full construction in Q2 2023 with finalization of the project financing. Capital investment in Q2 2023 continued to focus on early construction works, engineering and procurement. Underground development advanced the west decline while mobilization occurred related to the first major earthwork initiative for construction haul roads to build earthworks structures. Upcoming milestones in 2023 include the mobilization of major construction contracts for concrete, finalizing the awards of the remaining major procurement and contract packages to 90% completion, and advancing detailed engineering to 90% completion.

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² These financial measures or ratios are non-IFRS financial measures or ratios. Certain additional disclosure 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 and Other Financial Measures and Ratios’ in the Company’s June 30, 2023 MD&A.

“During the quarter, both Kisladag and Lamaque demonstrated resiliency in the face of extraordinary weather-related events,” said George Burns, Eldorado Gold’s President and CEO. “Starting in late May, wildfires in the Abitibi region impacted operations at Lamaque. The safety of our employees and contractors is our top priority and a number of shifts were suspended. Our team took the opportunity to re-sequence the maintenance schedule and devised an alternative route to safely get employees to the Triangle underground that has resulted in minimal impact to expected production for the year. During the month of May at Kisladag, the region experienced heavy rainfall, and despite the impact, the team safely delivered on its key milestones during the quarter which included successfully completing the commissioning of the new agglomeration circuit and rotating the high-pressure grinding rolls for the first time.”

“At Olympias, I am pleased to report that the team delivered on a number of key productivity initiatives including implementing ventilation on demand and bulk emulsion blasting during the quarter,” continued Burns. “Further, the substation is now energized, and in early July, the ventilation fans were able to start, which is expected to not only improve our energy efficiency and health and safety of our employees, but also increase the number of development headings we can effectively work in. I see this as the inflection point that we have been working towards over the past several years through our transformation efforts, which we expect will give us the ability to drive increased tonnage and production going forward. During the quarter, as we worked to finalize the implementation of these initiatives at Olympias which were expected earlier in the year, our mine sequencing was impacted which resulted in lower grades impacting gold and by-product production. That, in combination with lower realized zinc by-product prices and higher treatment charges, resulted in much higher all-in sustaining costs. We expect these costs to trend downwards as we realize the benefits of our productivity initiatives and sequence back into higher grade stopes in the second half of the year, consistent with our 2023 Olympias guidance.”

“In sustainability, Eldorado released its 11^th Annual Sustainability Report in late May highlighting our environmental, social and governance performance over the past year,” said Burns. “Further, our team in Greece completed their first verification against the Mining Association of Canada’s ‘Towards Sustainable Mining’ protocols. They achieved “Triple A” ratings across all indicators for Tailings Management and Biodiversity, underlining our commitment to responsible mining practices. At Lamaque, despite the wildfires, we took delivery of our first electric underground haul truck, marking the first of its kind in Quebec. Once fully operational, we expect electric trucks at Lamaque to both mitigate our GHG emissions and support lower operating costs due to anticipated productivity improvements.”

Consolidated Financial and Operational Highlights

(1) Attributable to shareholders of the Company.
(2) These financial measures or ratios are non-IFRS financial measures or ratios. See the section ‘Non-IFRS and Other Financial Measures and Ratios’ of our MD&A for explanations and discussions of these non-IFRS financial measures or ratios.
(3) Revenues from silver, lead and zinc sales are off-set against cash operating costs.
(4) Amounts presented for 2023 and 2022 are from continuing operations only and exclude the Romania segment. See Note 4 of our condensed consolidated interim financial statements for the three and six months ended June 30, 2023.
(5) A concentrate weight-scale calibration correction at Olympias has resulted in an adjustment to ending inventory as at March 31, 2023 of 1,024 gold ounces. Gold production in Q1 2023 has been reduced by this amount, resulting in additional production costs of $1.3 million and additional depreciation expense of $0.7 million for Q1 2023.

Total revenue was $229.9 million in Q2 2023, an increase of 8% from $213.4 million in Q2 2022 and was comparable to $229.4 million earned in Q1 2023. Total revenue was $459.2 million in the six months ended June 30, 2023, an increase from $408.1 million in the six months ended June 30, 2022. The increases in both three and six-month periods were primarily due to higher sales volumes, and higher average realized gold price.

Production costs increased to $117.0 million in Q2 2023 from $109.3 million in Q2 2022 and to $228.2 million in the six months ended June 30, 2023 from $213.9 million in the six months ended June 30, 2022. Increases in both periods were primarily due to higher royalty expense and increased sales volumes.

Cash operating costs averaged $791 per ounce sold in Q2 2023, an increase from $789 in Q2 2022, which is primarily due to lower by-product credits. Cash operating costs per ounce sold averaged $784 in the six months ended June 30, 2023, a decrease from $810 in the six months ended June 30, 2022, primarily due to an increase in volume sold.

AISC per ounce sold averaged $1,296 in Q2 2023, an increase from $1,270 in Q2 2022, due to increases in royalties and G&A costs per ounce sold, partially offset by lower sustaining capital expenditures. AISC per ounce sold averaged $1,252 in the six months ended June 30, 2023, a decrease from $1,306 in the six months ended June 30, 2022, primarily reflecting the decrease in cash operating costs per ounce sold and lower sustaining capital expenditures.

We reported net earnings attributable to shareholders from continuing operations of $1.5 million ($0.01 earnings per share) in Q2 2023 compared to net loss of $22.9 million ($0.12 loss per share) in Q2 2022 and net earnings of $20.9 million ($0.11 earnings per share) in the six months ended June 30, 2023 compared to net loss of $62.6 million ($0.34 loss per share) in the six months ended June 30, 2022. The higher net earnings this quarter, compared to Q2 2022, was driven by gains on both derivative instruments and foreign exchange, partially offset by higher income tax expense. The higher net earnings in the six months ended June 30, 2023 was primarily due to higher operating income from the increase in gold sales, lower mine standby costs and writedown of assets, gains on derivatives and foreign exchange, and lower income tax expense.

Adjusted net earnings was $16.1 million ($0.09 earnings per share) in Q2 2023 compared to adjusted net earnings of $13.6 million ($0.07 per share) in Q2 2022. Adjusted net earnings in Q2 2023 removed a $8.4 million gain on derivative instruments, primarily on gold collars entered into during this quarter, while adjusted net earnings in Q2 2022 added back a $14.4 million loss on redemption option derivative for the senior notes        .

Quarterly Operations Update

(1) Revenues from silver, lead and zinc sales are off-set against cash operating costs.
(2) These financial measures or ratios are non-IFRS financial measures or ratios. See the section ‘Non-IFRS and Other Financial Measures and Ratios’ of our MD&A for explanations and discussions of these non-IFRS financial measures or ratios.
(3) A concentrate weight-scale calibration correction at Olympias has resulted in an adjustment to ending inventory as at March 31, 2023 of 1,024 gold ounces. Gold production in Q1 2023 has been reduced by this amount, resulting in additional production costs of $1.3 million and additional depreciation expense of $0.7 million for Q1 2023.

Kisladag

Kisladag produced 34,180 ounces of gold in Q2 2023, a 22% increase from 27,974 ounces produced in Q2 2022. The increase was primarily due to increased tonnes stacked as compared to Q2 2022, despite challenging adverse weather conditions. Average grade remained consistent at 0.76 grams per tonne during Q2 2023 and Q2 2022.

Tonnes placed on the heap leach pad in the quarter continued to benefit from the installation of larger, higher- capacity conveyors, improving material handling capacity and belt agglomeration. Improvements in throughput were also due to the success of a fine ore agglomeration drum added to the crushing circuit and commissioned during the quarter, which improved materials handling on the conveying system. These initiatives have enabled increased recoverable ounces placed on the pad.

Extraordinary rainfall through May and early June had marginal impact on tonnage stacked however, the excess water affects the leach kinetics and results in a higher volume of lower tenor solution to process. It is expected that this additional solution will be extracted in the third quarter.

Revenue increased to $64.7 million in Q2 2023 from $51.0 million in Q2 2022, reflecting higher sales in the quarter, and to a lesser extent, an increase in the average realized gold price.

Production costs increased to $27.5 million in Q2 2023 from $25.1 million in Q2 2022 primarily due to an increase in tonnes processed and ounces sold in line with higher production. Royalty expense was also higher as a result of higher sales volume and higher average realized gold prices. Compared to prior year, we saw decreases in unit costs of fuel and electricity in Turkiye, and coupled with higher sales volumes, the resulting cash operating costs per ounce decreased to $687 in Q2 2023 from $798 in Q2 2022.

Depreciation expense increased to $18.1 million in Q2 2023 from $15.5 million in Q2 2022 in line with higher gold sales in the quarter and due to the shorter remaining useful life of the existing heap leach pad and adsorption-desorption and recovery plant.

AISC per ounce sold decreased to $937 in Q2 2023 from $1,090 in Q2 2022, primarily due to the decrease in cash operating costs per ounce sold and a decrease in sustaining capital expenditures.

Sustaining capital expenditures of $2.8 million in Q2 2023 and $5.0 million in the six months ended June 30, 2023 primarily included equipment rebuilds and mine equipment purchases. Growth capital investments of $18.7 million and $37.3 million in the three and six months ended June 30, 2023 included waste stripping to support the mine life extension and construction of the first phase of the North heap leach pad, which was commissioned in July 2023.

For 2023, production guidance at Kisladag is forecasted to be 160,000 to 170,000 ounces of gold. Production is expected to improve over the course of the second half of the year as we realize full effectiveness from the upgraded materials handling equipment. Our optimization efforts are expected to drive increased stacking rates. In addition, we expect to recover the ounces that were delayed as a result of the extraordinary rainfall in May and early June.

Lamaque

Lamaque produced 38,745 ounces of gold in Q2 2023, a decrease of 17% from 46,917 ounces in Q2 2022. The decrease was primarily due to lower ore throughput and slightly lower grade. Tonnes processed were reduced as a result of forest fires in the region which caused poor air quality resulting in a number of suspended shifts in the Triangle underground in June. The processing facility was able to keep operating on stockpile material and then brought forward scheduled maintenance from July into June to minimize unplanned downtime. Average grade decreased to 6.43 grams per tonne in Q2 2023 from 6.63 grams per tonne in Q2 2022. Underground development of high-grade stopes progressed well during the quarter.

Revenue decreased to $78.6 million in Q2 2023 from $85.0 million in Q2 2022 primarily due to lower ounces sold as a result of lower production, partially offset by higher average realized gold prices.

Production costs decreased to $28.3 million in Q2 2023 from $31.4 million in Q2 2022, primarily due to lower volume sold in the quarter. Cash operating costs per ounce sold rose to $676 in Q2 2023 from $657 in Q2 2022 as a result of lower gold sold, partially offset by cost savings from a weaker Canadian dollar as compared to prior year.

AISC per ounce sold increased to $1,117 in Q2 2023 from $985 in Q2 2022 primarily due to higher cash operating cost per ounce, lower gold sold, and higher sustaining capital expenditure in the quarter.

Sustaining capital expenditures of $16.2 million in Q2 2023 and $34.1 million in the six months ended June 30, 2023 primarily included underground development, equipment rebuilds, and expansion of the tailings management facility. Growth capital investment of $4.9 million in Q2 2023 and $7.6 million in the six months ended June 30, 2023 were primarily related to resource conversion drilling at Ormaque and spending on other exploration projects.

The second half of the year is expected to be stronger as both processing rates and grade increase. In 2023, production guidance at Lamaque is forecasted to be 170,000 to 180,000 ounces of gold.

Efemcukuru

Efemcukuru produced 22,644 payable ounces of gold in Q2 2023, a 1% decrease from 22,792 payable ounces in Q2 2022. The decrease was primarily due to a slight decrease in grade to 5.85 grams per tonne in Q2 2023 from 5.96 grams per tonne in Q2 2022. This impact was almost entirely offset by higher throughput in the quarter due to increased mill availability, further demonstrating consistency in mill utilization.

Revenue increased to $44.1 million in Q2 2023 from $41.4 million in Q2 2022. Lower payable ounces sold was offset by a higher average realized gold price recorded during Q2 2023.

Production costs decreased slightly to $20.4 million in Q2 2023 from $20.6 million in Q2 2022 primarily due to lower sales in the quarter and decreasing unit costs of consumables, and partially offset by higher royalty expense due to higher average realized gold prices. Lower unit costs of fuel and electricity resulted in a decrease in cash operating costs per ounce sold to $697 in Q2 2023 from $706 in Q2 2022.

AISC per ounce sold decreased to $1,111 in Q2 2023 from $1,180 in Q2 2022. The decrease was primarily due to the increase in cash operating costs per ounce sold and was partly offset by lower sustaining capital expenditure.

Sustaining capital expenditures of $3.7 million in Q2 2023 and $5.9 million in the six months ended June 30, 2023 were primarily underground development and equipment rebuilds. The development of the Mine Rock Storage Facility southern expansion commenced this quarter. Growth capital investment of $3.5 million in the six months ended June 30, 2023 included capital development, resource conversion drilling at Kokarpinar and resource expansion at Bati.

Production for the third and fourth quarter are expected to increase slightly over the second quarter as processing rates increase. For 2023, production guidance at Efemcukuru is forecast to be 80,000 to 90,000 ounces of gold.

Olympias

Olympias produced 13,866 ounces of gold in Q2 2023, a 12% decrease from 15,779 ounces in Q2 2022 and primarily reflected lower average gold grade due to changes in stope sequencing in the quarter as we await benefits of transformation initiatives that were completed in early July. This was partially offset by higher mill throughput that was achieved this quarter as we continue to ramp up productivity. Q2 2023 production of by-product metals, while lower than planned, increased as compared to Q2 2022 and Q1 2023 across silver, lead, and zinc as a result of higher average grades as planned in both the three and six months ended periods as well as higher throughput.

In line with our 2023 guidance, key transformation initiatives are on-going as the mine continues to ramp up productivity. Bulk emulsion blasting was commissioned in June, which we expect will allow for further efficiencies underground. Additionally, the newly constructed electrical substation was energized in June and commissioned in early July, following a successful shutdown to tie-in the expanded ventilation system. Increased ventilation capacity is expected to support productivity improvements in the lower parts of the mine and increase access to stopes with higher grades of base metals. These initiatives, while positive, were delayed from planned early Q1 implementation. These delays are the primary cause for mine plan sequencing and lower mine or Flats Zone development which have contributed to lower by-product volumes than planned. Stoping sequence and Flats development are expected to gradually recover over the balance of 2023.

Due to a scale calibration correction that was identified during this quarter, we made a one-time adjustment lowering Q1 2023 gold production by 1,024 ounces.

Revenue increased to $42.4 million in Q2 2023 from $36.3 million in Q2 2022 primarily as a result of higher gold sales and higher average realized gold price, which includes the impacts of upward revaluations of provisional pricing in Q2 2023 due to increases in gold price during the quarter. Sales of base metals were slightly lower in Q2 2023 due to the timing of silver and lead concentrate shipments in early July.

Production costs increased to $40.8 million in Q2 2023 from $32.1 million in Q2 2022 reflecting increased volumes of gold sales, combined with higher treatment and refining costs from higher zinc sales. Cash operating costs per ounce sold decreased to $1,439 in Q2 2023 from $1,446 in Q2 2022, with lower mining and operating costs per ounce sold nearly offset by lower revenue from silver and base metal sales (which reduce cash operating costs as by-product credits). The unit prices of major consumables continue to fluctuate, with electricity prices benefiting from subsidies and fuel costs lower as compared to the prior year, while explosives and cement prices rose slightly.

AISC per ounce sold decreased to $2,036 in Q2 2023 from $2,346 in Q2 2022 primarily due lower sustaining capital expenditures and direct operating costs per ounce sold, partially offset by lower by-product credits and higher royalty costs per ounce sold.

Both cash operating costs and AISC were unfavorably affected in Q2 2023 by reduced by-product volumes resulting from the delayed initiatives outlined above, as well as by lower zinc pricing, high zinc treatment charges, and lower gold payability for the pyrite concentrates due to concentrate quality, the latter driven by lower recovery from lower quality ores. The lower zinc price and payability increased cash costs by approximately $435 per ounce gold sold in Q2 and the lower silver grade impacted by-product volume, increased cash costs by approximately $230 per ounce of gold sold, meanwhile pyrite concentrate revenue, driven by a higher gold price, slightly offset the impact on cash costs.

Sustaining capital expenditures of $3.4 million in Q2 2023 and $7.1 million in the six months ended June 30, 2023 primarily included underground development, expansion of tailings facilities, the newly commissioned substation, and underground ventilation fans. Growth capital investment of $3.7 million in Q2 2023 and $3.5 million in the six months ended June 30, 2023 were primarily related to underground development.

Gold production is expected to improve over the second quarter as the productivity initiatives deliver increased tonnage and higher grades. For 2023, production guidance at Olympias is forecast to be 60,000 to 75,000 ounces of gold.

Development Project

Skouries

The Skouries project, part of the Kassandra Mines Complex, is located within the Halkidiki Peninsula of Northern Greece and is a high-grade gold-copper asset. In December 2021, we published the results of the Skouries Project Feasibility Study with a 23-year mine life and expected average annual production of 140,000 ounces of gold and 67 million pounds of copper. The project is expected to provide an after-tax IRR of 19% and an NPV (5%) of $1.3 billion with capital costs to complete the project estimated at $845 million.

Economic activity in Greece is increasing, so moving efficiently through the commitment phase of the project is important to continue mitigating cost and schedule pressures. While we have yet to see material impacts from this economic activity thus far, we see the keys to ongoing success as maintaining or improving the pace of contracts awards and continuing to meet the labour productivity levels estimated in the Feasibility Study Plan as construction ramps up. With several major contract awards expected during Q3 2023, the FS Estimate will update to the Project Control Budget based on executed contracts and other new information. We expect to provide updated disclosure by the end of Q3 2023.

For further information on the Company’s operating results for the second quarter of 2023, please see the Company’s MD&A filed on SEDAR+ at www.sedarplus.com under the Company’s profile.

About Eldorado

Eldorado is a gold and base metals producer with mining, development and exploration operations in Turkiye, Canada, Greece and Romania. The Company has a highly skilled and dedicated workforce, safe and responsible operations, a portfolio of high-quality assets, and long-term partnerships with local communities. Eldorado’s common shares trade on the Toronto Stock Exchange and the New York Stock Exchange.

Qualified Person

Except as otherwise noted, Simon Hille, FAusIMM, Senior Vice President, Technical Services and Operations, is the Qualified Person under NI 43-101 responsible for preparing and supervising the preparation of the scientific or technical information contained in this press release and verifying the technical data disclosed in this document relating to our operating mines and development projects. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Inferred mineral resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves.

Jessy Thelland, géo (OGQ No. 758), a member in good standing of the Ordre des Géologues du Québec, is the qualified person as defined in NI 43-101 responsible for, and has verified and approved, the scientific and technical disclosure contained in this MD&A for the Quebec projects.