Contango Ore (CTGO) Investor Update summary

Manh Choh production and financial update

• First gold production at Manh Choh achieved, with July batch processing 210,000 tons at 9.46 g/t, 18% above average grade, and 95.2% recovery, exceeding feasibility expectations.

• Total production included 55,000 ounces of gold and 11,000 ounces of silver, with Contango's 30% share resulting in 14,700 ounces gold and 3,118 ounces silver; 8,900 ounces delivered into hedges and 5,800 ounces sold at spot prices.

• Gold sales realized a blended price of $2,188/oz, with spot sales at $2,440/oz, totaling $32.2 million in gold and silver sales for Contango.

• Guidance for 2023 is 30,000–40,000 ounces of gold, targeting 35,000 ounces, with all-in sustaining costs expected at $1,100–$1,200/oz; 2024 guidance remains at 30,000–40,000 ounces.

• Hedging covers 124,600 ounces at $2,025/oz, about 60% of next two years’ production, to secure debt financing and protect downside risk.

Johnson Tract project progress

• Drilling underway at Johnson Tract, with camp operational since July and first pulps shipped; program to run through early October.

• Focus on infill drilling, hydrology, geotechnical, and environmental studies; preliminary economic assessment in progress.

• Permitting advancing, with 404 wetlands permit expected by end of quarter and state permitting for underground adit initiated.

• Plan to complete drilling in 2023, permit tunnel in 2025, and begin underground development in 2026, aiming for mine plan by 2028.

• Projected to support bulk underground mining with competitive costs due to ore body geometry and proximity to infrastructure.

Project pipeline and strategic insights

• Lucky Shot on care and maintenance, with plans to resume drilling in 2024 and develop a mine plan for 30,000–40,000 ounces/year.

• Amanita and Golden Zone prospects under review, with potential for significant gold and copper resources; exploration plans for 2024.

• Exploration at Manh Choh ongoing, with $4.7 million program to extend mine life; results expected in fall.

• Experience at Manh Choh highlights importance of simple, high-grade ore bodies, private land, and efficient permitting for future acquisitions.

• Selective approach to new opportunities, focusing on accretive, high-grade, near-infrastructure projects.