On Track to Meet Full Year Production Guidance

TRX Gold Corporation (TSX: TNX) (NYSE American: TRX) reported its results for the third quarter of 2023 for the three months ended May 31, 2023. Financial results are available on the Company’s website.

Key highlights for Q3 2023 include:

• 1,000 tonne per day mill running efficiently: In Q3 2023, Buckreef Gold poured 4,764 ounces of gold and sold 4,810 ounces of gold, resulting in positive operating cash flow for the Company of $3.2 million. Year to date, Buckreef Gold poured and sold 15,794 and 16,068 ounces of gold respectively; both nine-month production records for the Company, resulting in positive operating cash flow of $14.6 million.

• Maintaining strong profit margins: In Q3 2023, Buckreef Gold recognized revenue of $9.3 million and cost of sales of $5.4 million, generating gross profit of $3.9 million, gross profit margin of 42% and Adjusted EBITDA1 of $3.3 million. Year to date, Buckreef Gold recognized revenue of $29.1 million and cost of sales of $15.0 million, generating gross profit of $14.1 million, gross profit margin of 48% and Adjusted EBITDA1 of $11.6 million.

• Sulphide bulk sample test proves future potential: During the quarter, the Company pivoted its mining plan to include a test bulk sample of sulphide ore which was subsequently processed through Buckreef Gold’s existing processing plant. Over 6,500 tonnes of sulphide ore were successfully processed, achieving an indicative gold recovery of 88.7%. This was a significant achievement as approximately 90% of Buckreef Gold’s gold mineral resource is held in sulphide material, thus unlocking the significant economic potential of the project. The bulk sample test indicates that the Company can likely process sulphide ore through its existing processing plant, thus potentially minimizing capex for future plant expansions.

• Reinvesting cash flow to grow operations: The Company used cash flow from operations to invest in the further growth of Buckreef Gold, including procurement of an additional 1,000 tpd ball mill to increase annual throughput by 75-100% through the addition of this new mill, and advanced construction of a significantly expanded tailings storage facility to accommodate higher production volumes.

• Exploration results from high-priority gold zones: During the quarter, the Company drilled 839 meters at Buckreef Gold and announced near surface drill results at the Anfield and Eastern Porphyry Zones, with highlights of 14 meters @ 3.5 g/t including 3.0 meters @ 10.9 g/t from a downhole depth of 47 meters from the Eastern Porphyry zone, and 2.94 meters grading 13.74 g/t, from a downhole depth of 43 meters in the Anfield Zone. Year to date, the Company drilled 11,171 meters of exploration, infill and sterilization drilling.

TRX Gold’s CEO, Stephen Mullowney comments: “These positive results continue to demonstrate the immense opportunity at Buckreef Gold and reflect successful execution of the Company’s sustainable business plan where cash flow from operations funds value creating activities.”

Figure 1. The Buckreef Gold Mine oxide starter pit during Q3 2023

Figure 2. The Buckreef Gold Tailings Storage Facility expansion; liner installation at TSF 2.2 during Q3 2023

 Outlook for the Remainder of Fiscal 2023

• Maintaining market guidance: The Company continues to expect gold production from the 1,000+ tpd processing plant for fiscal 2023 to be between 20,000 – 25,000 ounces and expects total average cash cost1 to be at the upper end of the originally estimated range of between $750 – $850 per ounce.

• Near-term production growth on target: The Company continues to advance a project aimed at increasing the average annual throughput by 75-100% with an expansion of the existing carbon-in-leach plant. Construction will seamlessly integrate into the existing operating plant, with the addition of a new 1,000 tpd ball mill and construction of an extended foundation and bund wall to support the additional leach tanks, as well as all ancillary work. The capital cost of the expanded plant is expected to be approximately US$6 million and will be funded using operating cash flow from Buckreef Gold. Construction of the expanded milling circuit is expected to start in Q4 2023 and potentially benefit production in early calendar 2024.

• Larger development project advancement: The Company continues to work with our principal consultants on advancing the larger development project that will target a large-scale gold mine operation, including advanced metallurgical testing across the deposit and geotechnical studies for a deeper pit. Concurrent with this work, the Company has started assessing a significantly larger processing facility.

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” 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 2020, the project currently hosts an NI 43-101 Measured and Indicated Mineral Resource of 35.88 MT at 1.77 g/t 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 ounces 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 gold Resource base and advancing the Sulphide Ore Project which represents 90% of current gold Resources. TRX Gold’s actions are led by the highest ESG standards, evidenced by the relationships and programs that the Company has developed during its nearly two decades of presence in Geita Region, Tanzania.