Plant Expansion Results in Significantly Lower Operating Cost Per Tonne

TRX Gold Corporation (TSX: TRX) (NYSE American: TRX) reported its results for the first quarter of 2025 for the three months ended November 30, 2024. Financial results are available on the Company’s website at www.TRXgold.com.

Key highlights for Q1 2025 include:

• Capturing record gold prices: The Company poured 4,841 ounces of gold (Q1 2024: 4,927) and sold 4,813 ounces of gold (Q1 2024: 4,895) generating revenue of $12.5 million (Q1 2024: $9.4 million), gross profit of $4.8 million (Q1 2024: $3.7 million) and Adjusted EBITDA¹ of $4.4 million (Q1 2024: $2.6 million). The increase in revenue, gross profit and Adjusted EBITDA¹ compared to the prior comparative period is mainly related to a record average realized gold price (net)¹ of $2,653 per ounce (Q1 2024: $1,942 per ounce).
• Production level in line with expectations and mine sequencing: Gold production in Q1 2025 was mainly in line with the prior year comparative period and reflects higher mill throughput, offset by a lower average head grade of 1.29 g/t (Q1 2024: 2.57 g/t) and lower average recovery of 72% (Q1 2024: 81%). A planned mine sequence commenced in Q1 2025, accessing lower grade ore blocks during the quarter, concurrent with a scheduled stripping campaign, in order to access higher grade ore blocks in the second half of F2025. The lower average recovery in Q1 2025 was mainly due to a higher proportion of blended material processed in Q1 2025 (24% oxide / 76% sulphide) compared to the prior year period, where the mill processed a higher proportion of oxide material at a higher average recovery. The Company also experienced lower recovery rates with lower grade material.
• Decreasing variable cost per tonne: Processing costs per tonne of $12.60 in Q1 2025 were significantly lower than the prior year comparative period (Q1 2024: $26.56 per tonne) predominantly due to greater economies of scale following final commissioning of the expanded 2,000 tonne per day (“tpd”) processing facility. Mining costs per tonne of $4.00 in Q1 2025 were also lower than the prior year comparative period (Q1 2024: $4.25) and are expected to continue to improve over time as owner operated equipment will be utilized to provide cost effective support for site development projects as well as plant feed operations.
• Benefitting from economies of scale: Total ore tonnes processed at the newly expanded processing facility of 1,703 tpd in Q1 2025, were 108% higher than the prior year comparative period (Q1 2024: 817 tpd), reaching a maximum of 2,073 tpd, following commissioning of the newly expanded processing plant in early Q1 2025 (September 2024). The higher processing plant throughput provided a higher proportion of overhead cost absorption, significantly benefitting processing cost per tonne.
• Increase in annual gold production is expected: The Company continues to expect gold production for fiscal 2025 (“F2025”) to be higher than fiscal 2024 (“F2024”) levels, reflecting a full year of operations from the expanded 2,000 tpd processing plant and an expected decreased reliance on lower grade stockpile inventory, partially offset by a waste stripping campaign required to access high grade ore blocks to deliver consistent higher grade ore feed to the mill. The Company continues to expect cash cost per ounce to be in line with F2024 levels, mainly due to the impact of higher expected gold production and significantly lower processing costs per tonne, offset by a lower average grade profile, in line with the scheduled mine sequence. Mining costs per tonne are also expected to trend lower in F2025.
• Best drill results to date at Buckreef Gold: During Q1 2025, the Company announced its two best drill results ever, on a gram x tonne x meters (“gtm”) basis, intersecting 37 meters (“m”) @ 6.86 g/t Au (253.82 gtm) from 130 m (hole BMDD315) and 35.5 m @ 5.48 g/t Au (194.54 gtm) from 64 m, located along the newly discovered and high-priority Stamford Bridge Zone. This is a promising new gold mineralization shear zone located approximately 250 m east of the Buckreef Gold Main Zone that is beginning to form what may become a potential 1-kilometer “bridge” between the Buckreef Gold Main Zone and the prospective Eastern Porphyry and Anfield zones. Subsequent to Q1 2025, the Company announced additional high-grade intercepts at Stamford Bridge (see January 14, 2025 Press Release) as part of its ongoing exploration program focused on newly defined exploration targets.
• Growth initiatives in place: Growth capital in F2025 is expected to be consistent with F2024 levels and includes expansion initiatives related to the long-term growth of Buckreef Gold, including plant optimizations aimed at increasing recovery, throughput and production and study costs aimed at expanding Buckreef Gold and developing the larger project.
• Exploration is a priority: Exploration spending is expected to increase in F2025 and includes diamond drill and reverse circulation drilling services provided by the State Mining Corporation (“STAMICO”) for a program which includes brownfields drilling at Buckreef Main Zone (Northeast and Southwest), Buckreef West, Eastern Porphyry, and greenfield drilling at Stamford Bridge and Anfield.
• Health & Safety remain top of mind: The Company achieved zero lost time injuries and there were no environmental or community related incidents during Q1 2025.

TRX Gold’s CEO, Stephen Mullowney comments: “Q1 2025 has been quite busy and has progressed in line with our plan. Gold production is a function of tonnes processed x head grade x recovery and consequently, your major cost drivers are tonnes moved and tonnes processed. We are pleased to see the lower operating costs per tonne come through on the plant expansion, which has enabled the business to be profitable even when processing lower grade material. These costs savings are expected to significantly benefit the business as the grade profile in the mining sequence improves. We have not stopped here, our newly appointed COO Richard Boffey, has been busy with ongoing operational efficiencies which are expected to benefit the business in the second half of the year as well. The exploration team continues to plan and execute an initial drill program at the newly discovered Stamford Bridge Zone, which is turning into quite an exciting discovery, with the best ever drill results to date at Buckreef Gold and the outline of a shear structure becoming more evident. Much more work will follow at this high-priority target over the next several months, as we hope to uncover a new mineable zone. Lastly, we are laser-focused on the mine plan in order to get to those high-grade ore blocks in the second half of this fiscal year, so that we can continue to capitalize on our reduced cost profile and robust gold prices.”

Figure 1: Buckreef Gold new and expanded crushing circuit (Q2 2024)

 Figure 2: New 350 Excavator and Haul Truck (at December 20, 2024)

 Figure 3: Buckreef Gold’s Open Pit Mining Operations (Q4 2024)

Qualified Person

Mr. William van Breugel, P.Eng, BASc (Hons), Technical Advisor to TRX Gold Corporation, is the Company’s Qualified Person under National Instrument 43-101 “Standards of Disclosure for Mineral Projects” and has reviewed and assumes responsibility for the scientific and technical content in this press release.

About TRX Gold Corporation

TRX Gold is rapidly advancing the Buckreef Gold Project. Anchored by a Mineral Resource published in May 2020², the project currently hosts a Measured and Indicated Mineral Resource of 35.88 million tonnes at 1.77 grams per tonne gold containing 2,036,280 ounces of gold and an Inferred Mineral Resource of 17.8 MT at 1.11 g/t gold for 635,540 oz of gold. The leadership team is focused on creating both near-term and long-term shareholder value by increasing gold production to generate positive cash flow. The positive cash flow will be utilized for exploratory drilling with the goal of increasing the current mineral resource base and advancing the larger project development which represents 90% of current mineral resources. TRX Gold’s actions are led by the highest environmental, social and corporate governance standards, evidenced by the relationships and programs that the Company has developed during its nearly two decades of presence in the Geita Region, Tanzania. Please refer to the Company’s Updated Mineral Resources Estimate for Buckreef Gold Project, dated May 15, 2020² and filed under the Company’s profile on SEDAR+ and with the SEC on June 23, 2020 for more information.