TRX Gold Corporation (TSX:TNX) (NYSE American:TRX) is pleased to announce preliminary Q3 2022 production of 2,733 ounces of gold, exceeding previous production guidance of 750-800 ounces of gold per month, as well as preliminary Q3 2022 sales of 3,033 ounces of gold, both new records for the Company.

The average market price for gold in Q3 2022 (March – May 2022) was $1,912 per ounce.

Preliminary Q3 2022 gold production was higher than Q2 2022 reflecting the first full quarter of the 360 tonne per day (tpd) processing plant operating at full design capacity along with a solid grade profile. The expansion to 1,000+ tpd remains on budget and is scheduled for completion in calendar Q3 2022.

“We said we would start small and grow the business from there. The 360 tpd processing plant has been ‘dialed in’ and we are very excited for the 1,000+ tpd expansion coming online later this year, with the possibility of further production expansions thereafter. This is a great start towards our sustainable business plan of having early production fund organic development and growth, notably expansion of the processing plant and investment in other value enhancing activities including exploration in the Buckreef Main Zone, Buckreef West and the Anfield Zone. There are a whole array of value creating opportunities at Buckreef Gold, growth is our mantra at the moment,” noted Stephen Mullowney, Chief Executive Officer of TRX Gold.

TRX Gold will provide additional discussion and analysis regarding its third quarter 2022 production and sales when the Company reports its quarterly results in early July 2022.

Figures 1 and 2: Dorè bars from Buckreef Gold

About TRX Gold Corporation

TRX Gold along with its joint venture partner, STAMICO is advancing a significant gold project at Buckreef in Tanzania. Buckreef is anchored by an expanded Mineral Resource published in May 2020. Measured Mineral Resource is 19.98 million tonnes  at 1.99 grams per tonne gold containing 1,281,161 ounces of gold and Indicated Mineral Resource is 15.89 MT at 1.48 g/t gold containing 755,119 oz of gold for a combined tonnage of 35.88 MT at 1.77 g/t gold containing 2,036,280 oz of gold. The Buckreef Gold Project also contains an Inferred Mineral Resource of 17.8 MT at 1.11g/t gold for contained gold of 635,540 oz of gold. The Company is actively investigating and assessing multiple exploration targets on its property. Please refer to the Company’s Updated Mineral Resources Estimate for Buckreef Gold Project, dated May 15, 2020 and filed under the Company’s profile on SEDAR and with the SEC on June 23, 2020 (the “Technical Report”), for more information.

Buckreef is being advanced in a value accretive sustainable manner through:

Expanding Production Profile: A 360 tonne per day processing plant is being expanded to 1,000+ tpd, enabling a near term production profile of 15,000 – 20,000 oz of gold per year. Positive operating cash flow will be utilized for value enhancing activities, including exploration and Sulphide Project Development.

Exploration: Continuing with a drilling program with the goal of expanding resources, discovering new resources and converting resources to reserves, by: (i) step-out drilling in the northeast extension of Buckreef Main; (ii) infill drilling to upgrade Mineral Resources currently in the Inferred category in Buckreef Main; (iii) infill drilling program of Buckreef West; (iv) developing an exploration program for the newly discovered Anfield Zone; (v) upgrading historical mineral resources at Bingwa and Tembo; (vi) identifying new prospects at Buckreef Gold Project, and in the East African region.

Sulphide Development Project: Unlocking the value of the Sulphide Project in which the ‘sulphide ore’ encompasses approximately 90% of the Resources. It is the goal of the Company to exceed all metrics as outlined in the Technical Report, including annual production and strip ratio.

Qualified Person

Mr. Andrew Mark Cheatle, P.Geo., MBA, ARSM, is the Company’s Qualified Person under National Instrument 43-101 “Standards of Disclosure for Mineral Projects” (“NI 43-101”) and has reviewed and assumes responsibility for the scientific and technical content in this press release.