First Mining Announces Positive Preliminary Economic Assessment for the Duparquet Gold Project, Quebec, Canada

2023-09-07

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_Pre-Tax NPV 5% of C$1.07 billion , After-Tax NPV 5% of C$588 million Pre-Tax IRR of 24.9%, After-Tax IRR of 18.0% Average LOM Annual Gold Production of 233 koz with AISC of US$976 /oz over 11-year LOM _

VANCOUVER, BC , Sept. 7, 2023 /CNW/ - First Mining Gold Corp. ("First Mining" or the "Company") (TSX: FF) (OTCQX: FFMGF) (FRANKFURT: FMG) is pleased to announce the positive results of a Preliminary Economic Assessment ("PEA") completed for its 100%-owned Duparquet Gold Project (the "Project" or "Duparquet") located in the Abitibi region of Quebec, Canada . The PEA results support a 15,000 tonnes per day open pit and underground mining operation over an 11-year mine life. The PEA only considers the Duparquet gold deposit located on the Beattie, Donchester, Central Duparquet and Dumico claim blocks and does not include the Pitt Gold and Duquesne deposits (see Mineral Resource Estimate section).

PEA Highlights

C$1.07 billion pre-tax NPV 5% and C$588 million after-tax NPV 5% at US$1,800 /oz gold ("Au") 24.9% pre-tax IRR; 18.0% after-tax IRR at US$1,800 /oz Au Annual Life-of-Mine ("LOM") recovered gold production of 233 koz Total LOM recovered gold of 2.5 Moz over an 11-year mine life Pre-tax payback of 3.8 years; after-tax payback of 4.8 years Initial capital costs estimated at C$706 million ; sustaining and underground development capital costs estimated at C$738 million Average annual LOM Total Cash Cost of US$751 /oz (1) ; average annual LOM All-In Sustaining Costs ("AISC") of US$976 /oz (2)

| Note: Base case parameters assume a gold price of US$1,800/oz and an exchange rate (C$ to US$) of 1.33. All currencies are reported in Canadian dollars unless otherwise specified. NPV calculated as of the commencement of construction and excludes all pre-construction costs. | | | (1) | Total Cash Costs consist of mining costs, processing costs, mine-level G&A, treatment and refining charges and royalties. | | (2) | AISC includes total cash costs plus sustaining capital, development capital and closure costs. |

"This PEA demonstrates the robust economic potential of the Duparquet Gold Project," stated Dan Wilton , CEO of First Mining. "The +200 koz per year production profile, attractive capital and operating cost profile and strategic location of the deposit in the heart of the Abitibi gold belt all contribute to the recognition of Duparquet as one of the most meaningful development projects in Canada . We are also pleased to have completed such a robust PEA within a year of consolidating the ownership of the Project. Importantly, the Duparquet Gold Project represents a unique opportunity to address the environmental legacy issues from the historic mining operations while delivering an important economic development opportunity for the local and Indigenous communities around the Project. We look forward to continuing to work with regulators, the Municipality of Duparquet and other local and Indigenous communities to advance this parallel track of environmental stewardship and economic development."

This PEA for the Duparquet Gold Project was prepared by G Mining Services Inc. of Montreal, Quebec , in accordance with National Instrument 43-101 _Standards of Disclosure for Mineral Projects _("NI 43-101"), and a technical report for the PEA will be filed by the Company on SEDAR+ within 45 days of this news release.

PEA Overview

The Duparquet Gold Project, located in the Abitibi region of Quebec, Canada , is one of the largest undeveloped gold projects in North America . The Project is located immediately north of the town of Duparquet which is approximately 50 kilometres northwest of Rouyn-Noranda, Quebec , a major mining service centre and home to the only remaining copper smelter in Canada . Duparquet currently hosts 3.4 million ounces of gold in the Indicated Mineral Resource category and 2.7 million ounces of gold in the Inferred Mineral Resource category, as set out in Table 5 in the Mineral Resource Estimate section.

The PEA evaluates recovery of gold from a 15,000 tonne-per-day ("tpd") open pit and underground mining operation, with a process plant that includes crushing, grinding, and flotation, producing a concentrate for sale.

Table 1: Key PEA Assumptions and Project Economics (1)

| Key Assumptions | Unit | LOM | | | Gold Price | US$/oz | US$1,800/oz | | | Exchange Rate | C$:US$ | 1.33 | | | Production Profile | Unit | LOM | | | Total Open Pit Tonnage | Mt | 282.0 | | | Total Open Pit Mineralized Material Mined | Mt | 43.6 | | | Open Pit Strip Ratio | w:o | 5.4 | | | Total UG Mineralized Material Mined | Mt | 12.0 | | | Total Tailings Mineralized Material Mined | Mt | 4.1 | | | Total Tonnes Processed | Mt | 59.7 | | | Daily Throughput | tpd | 15,000 | | | Mill Grade | g/t Au | 1.51 | | | Mine Life | Years | 11 years | | | Gold Recovery to Concentrate | % | 89.5 % | | | LOM Metal Recovered | koz Au | 2,595 koz Au | | | Average Annual Recovered | koz Au | 233 koz Au | | | Operating Costs (US$/oz) | Unit | LOM | | | Total Cash Costs (2) | US$/oz | $751 | | | AISC (3) | US$/oz | $976 | | | Capital Expenditures | Unit | LOM | | | Initial Capital | C$M | C$706 | | | Sustaining and Development Capital | C$M | C$738 | | | Closure Costs | C$M | $30 | | | Estimated Salvage Value | C$M | ($36) | | | Economics | Unit | LOM | | | NPV at 5% (pre-tax; post-tax) | C$M | C$1,073; C$588 | | | IRR (pre-tax; post-tax) | % | 24.9%; 18.0% | | | Payback (pre-tax; post-tax) | Years | 3.8 years; 4.8 years | | | | | | |

| (1) | The reader is advised that the PEA is preliminary in nature and is intended to provide only an initial, high-level review of the Project potential and design options. The PEA mine plan and economic model include numerous assumptions and the use of Inferred mineral resources. 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 and to be used in an economic analysis except as allowed for in PEA studies. There is no guarantee that Inferred resources can be converted to Indicated or Measured resources, and as such, there is no certainty that the PEA or Project economics described herein will be realized or achieved. | | (2) | Total Cash costs consist of mining costs, processing costs, mine-level G&A, treatment and refining charges and royalties. | | (3) | AISC includes total cash costs plus sustaining capital, development capital and closure costs. |

Economic Sensitivities

The Project economics and cash flows are highly sensitive to changes in the price of gold.

Table 2: PEA Sensitivity to Gold Price, Operating Costs and Capital Costs

Sensitivity to Gold Price

| Gold Price (US$/oz) | $1,400 | $1,600 | $1,800 | $2,000 | $2,200 | | Pre-Tax NPV 5% | C$168 million | C$621 million | C$1.07 billion | C$1.53 billion | C$1.98 billion | | Pre-Tax IRR | 8.5 % | 17.1 % | 24.9 % | 32.0 % | 38.6 % | | After-Tax NPV 5% | C$20 million | C$310 million | C$588 million | C$859 million | C$1.12 billion | | After-Tax IRR | 5.5 % | 12.1 % | 18.0 % | 23.2 % | 28.0 % |

Sensitivity to Initial Capital Costs

| Initial Capital Costs | +20 % | +10 % | C$706 million | -10 % | -20 % | | Pre-Tax NPV 5% | C$814 million | C$949 million | C$1.07 billion | C$1.18 billion | C$1.28 billion | | Pre-Tax IRR | 16.7 % | 20.4 % | 24.9 % | 30.5 % | 37.8 % | | After-Tax NPV 5% | C$413 million | C$503 million | C$588 million | C$661 million | C$723 million | | After-Tax IRR | 12.0 % | 14.7 % | 18.0 % | 21.9 % | 26.9 % |

Sensitivity to Operating Costs

| Operating Costs | +20 % | +10 % | C$2.2 billion | -10 % | -20 % | | Pre-Tax NPV 5% | C$761 million | C$917 million | C$1.07 billion | C$1.23 billion | C$1.39 billion | | Pre-Tax IRR | 19.5 % | 22.2 % | 24.9 % | 27.4 % | 29.9 % | | After-Tax NPV 5% | $398 million | $494 million | C$588 million | $680 million | $771 million | | After-Tax IRR | 14.0 % | 16.0 % | 18.0 % | 19.9 % | 21.7 % |

Mineral Resource Estimate

In September 2022 , the Duparquet Gold Project Mineral Resource Estimate ("MRE") was updated by InnovExplo Inc. in accordance with NI 43-101. (See news release of September 12, 2022 for more details) The Duparquet Gold Project contains 3.44 million ounces of gold in the Measured & Indicated category, grading 1.55 g/t Au, and an additional 1.6 million ounces of gold in the Inferred category, grading 1.36 g/t Au (see Table 3).

In August 2023 , new updated Mineral Resource Estimates were completed on First Mining's 100% owned Pitt Gold and Duquesne projects and have added 1.05 million ounces of gold grading 2.32 g/t Au in the Inferred category (see Table 4), which will now form part of the larger consolidated Duparquet Gold Project.

Following the updated Mineral Resource Estimate at Pitt Gold and Duquesne , the consolidated Duparquet Project now contains 3.44 million ounces of gold in the Measured & Indicated category, grading 1.55 g/t Au, and an additional 2.68 million ounces of gold in the Inferred category, grading 1.68 g/t Au.

Table 3: Duparquet Deposit Mineral Resource Estimate (Effective September 12, 2022 )

| Area

(mining method) | Cut-off

(g/t) | Ounces | Tonnage (t) | Au

Open Pit | 0.40 | 163,700 | 1.37 | 7,200 | 59,410,600 | 1.52 | 2,909,600 | 28,333,000 | 1.07 | 970,400 | | | Potential

UG Mining | 1.50 | - | - | - | 5,506,900 | 2.26 | 399,300 | 9,038,900 | 2.29 | 665,600 | | | Tailings | 0.40 | 19,900 | 2.03 | 1,300 | 4,105,200 | 0.93 | 123,200 | - | - | - | | | Total | | 183,600 | 1.43 | 8,500 | 69,022,700 | 1.55 | 3,432,100 | 37,371,900 | 1.36 | 1,636,000 | |

Table 4: Pitt Gold and Duquesne Deposits Mineral Resource Estimate (Effective August 31, 2023 ) ( not included in the PEA)

| Area

(mining method) | Cut-off

(g/t) | Ounces | Tonnage (t) | Au

Open Pit | 0.50 | - | - | - | 6,300,000 | 1.56 | 316,000 | | | Potential

UG Mining | 1.75 | 2,691,000 | 2.67 | 231,200 | 5,030,000 | 3.10 | 501,400 | | | Total | | 2,691,000 | 2.67 | 231,200 | 11,330,000 | 2.24 | 817,400 | |

Table 5: Duparquet Gold Project Consolidated Mineral Resource Estimate (Effective August 31, 2023 )*

Open Pit | 163,700 | 1.37 | 7,200 | 59,410,600 | 1.52 | 2,909,600 | 34,633,000 | 1.16 | 1,286,400 | | Potential

UG Mining | - | - | - | 5,506,900 | 2.26 | 399,300 | 16,759,900 | 2.59 | 1,398,200 | | Tailings | 19,900 | 2.03 | 1,300 | 4,105,200 | 0.93 | 123,200 | - | - | - | | Total | 183,600 | 1.43 | 8,500 | 69,022,700 | 1.55 | 3,432,100 | 51,392,900 | 1.62 | 2,684,600 |

| *Refer to respective deposit resource estimate table for cut-off grade |

Notes to accompany the Duparquet Gold Project Mineral Resource Estimates:

| 1. | The independent qualified persons for the Duparquet mineral resource estimate, as defined by NI 43-101, are Marina Iund, P.Geo., Carl Pelletier, P.Geo. and Simon Boudreau, P.Eng. from InnovExplo. The effective date of the estimate is September 12, 2022. | | 2. | The independent qualified persons for the Pitt Gold and Duquesne mineral resource estimates, as defined by NI 43 101, are Olivier Vadnais-Leblanc, P.Geo., Carl Pelletier, P.Geo., and Simon Boudreau, P.Eng. from InnovExplo. The effective date of the estimate is August 31, 2023. | | 3. | These mineral resources are not mineral reserves, as they do not have demonstrated economic viability. There is currently insufficient data to define these Inferred mineral resources as Indicated or Measured mineral resources and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category. The mineral resource estimate follows current CIM Definition Standards. | | 4. | The results are presented in situ and undiluted and have reasonable prospects of eventual economical extraction. | | 5. | In-pit and Underground estimates encompass sixty (60) mineralized domains and one dilution envelop using the grade of the adjacent material when assayed or a value of zero when not assayed; The tailings estimate encompass four (4) zones. | | 6. | Duparquet: In-pit and Underground: High-grade capping of 25 g/t Au; Tailings: High-grade capping of 13.0 g/t Au for Zone 1, 3.5 g/t Au for Zone 2, 1.7 g/t Au for Zone 3 and 2.2 g/t Au for Zone 4. High-grade capping supported by statistical analysis was done on raw assay data before compositing. | | 7. | Pitt Gold: Underground: High-grade capping of 20 g/t Au. High-grade capping supported by statistical analysis was done on composited assays. | | 8. | Duquesne: In-pit and Underground: High-grade capping of 55 g/t Au. High-grade capping supported by statistical analysis was done on composited assays. | | 9. | In-pit and Underground: For Duparquet, the estimate used a sub-block model in GEOVIA SURPAC 2021 with a unit block size of 5m x 5m x 5m and a minimum block size of 1.25m x 1.25m x1.25m. For Pitt Gold and Duquesne, the estimates used a sub-block model in GEOVIA SURPAC 2023 with a unit block size of 6m x 6m x 6m and a minimum block size of 1.5m x 0.5m x0.5m. Grade interpolations were obtained by ID2 using hard boundaries. Duparquet Tailings: The estimate used a block model in GEOVIA GEMS with a block size of 5m x 5m x 1m. Grade interpolation was obtained by ID2 using hard boundaries. | | 10. | In-pit and Underground: For Duparquet, a density value of 2.73 g/cm3 was used for the mineralized domains and the envelope. For Pitt Gold and Duquesne, a density value of 2.7 g/cm3 was used for the mineralized domains and the envelope. A density value of 2.00 g/cm3 was used for the overburden. A density value of 1.00 g/cm3 was used for the excavation solids (drifts and stopes) assumed to be filled with water. Tailings: A fixed density of 1.45 g/cm3 was used in zones and waste. | | 11. | In-pit and Underground: For Duparquet, the mineral resource estimate is classified as Measured, Indicated and Inferred. The measured category is defined by blocks having a volume of at least 25% within an envelope built at a distance of 10 m around existing channel samples. The Indicated category is defined by blocks meeting at least one (1) of the following conditions: Blocks falling within a 15-m buffer surrounding existing stopes and/or blocks for which the average distance to composites is less than 45 m. A clipping polygon was generated to constrain Indicated resources for each of the sixty (60) mineralized domains. Only the blocks for which reasonable geological and grade continuity have been demonstrated were selected. All remaining interpolated blocks were classified as Inferred resources. Blocks interpolated in the envelope were all classified as Inferred resources. Tailings: The Measured and Indicated categories were defined based on the drill hole spacing (Measured: Zones 1 and 2 = 30m x 30m grid; Indicated: Zone 3 = 100m x 100m grid and Zone 4 = 200m x 200m grid). For Pitt Gold and Duquesne, the mineral resource estimate are completely classified as Inferred due to a lack of confidence in certain drill hole collar and underground development locations. | | 12. | The Mineral Resource Estimate for Duquesne and Pitt Gold was prepared using 3D block modelling and the inverse distance squared ("ID2") interpolation method. | | 13. | The mineral resources are categorized as Inferred based on drill spacing, as well as geological and grade continuity. A maximum distance to the closest composite of 75 m for Inferred in all zones for Duquesne of 210 m for Inferred in all zones for Pitt Gold. | | 14. | The reasonable prospect for an eventual economical extraction is met by having used reasonable cut-off grades both for a potential open pit and underground extraction scenarios (minimum mining width of 2m) and constraining volumes (Deswik optimized shapes and Whittle optimized pit-shells). | | 15. | In-pit and Underground: The mineral resource estimate is locally pit-constrained with a bedrock slope angle of 50° and an overburden slope angle of 30°. The out-pit mineral resource met the reasonable prospect for eventual economic extraction by having constraining volumes applied to any blocks (potential underground extraction scenario) using DSO. Duparquet resources is reported at a rounded cut-off grade of 0.4 g/t Au (in-pit and tailings) and 1.5 g/t Au (UG). The cut-off grades were calculated using the following parameters: mining cost = CA$70.00 (UG); processing cost = CA$11.9 (tailing) to CA$17.0 (pit& UG); G&A = CA$8.75; refining and selling costs = CA$ 5.00; gold price = US$ 1,650/oz; USD:CAD exchange rate = 1.31; and mill recovery = 93.9%. The cut-off grades should be re-evaluated in light of future prevailing market conditions (metal prices, exchange rates, mining costs etc.). Duquesne resources are reported at a rounded cut-off grade of 0.5 g/t Au (in-pit) and Pitt Gold and Duquesne resources are reported at a rounded cut-off grade of 1.75 g/t Au (UG). The cut-off grades were calculated using the following parameters: mining cost = CA$84.86 (UG); processing cost = CA$21.010; G&A = CA$11.75; refining and selling costs = CA$ 5.00; gold price = US$ 1,800/oz; USD:CAD exchange rate = 1.3; and mill recovery = 90%. The cut-off grades should be re-evaluated in light of future prevailing market conditions (metal prices, exchange rates, mining costs etc.). | | 16. | The number of metric tons was rounded to the nearest thousand and ounces were rounded to the nearest hundred, following the recommendations in NI 43 101. Any discrepancies in the totals are due to rounding effects. | | 17. | The qualified persons are not aware of any known environmental, permitting, legal, title-related, taxation, socio-political, or marketing issues, or any other relevant issue not reported herein, that could materially affect the Mineral Resource Estimate. |

The database used for the Duparquet MRE contains 904 holes totalling 270,119m and 173,831 sampled intervals. The resource area has an E-W strike length of 4.5 km, a width of approximately 1 km, and a vertical extent of 1,050 m below surface. A total of 60 mineralized zones wireframes have been created for the Duparquet deposit.

The database used for the Duquesne MRE contains 1,011 underground drill holes for a total of 51,957.43m and 393 surface Diamond Drill Holes ("DDH") totaling 103,888.19m . The DDH intervals used for the interpretation contain 66,411 assays taken from the 1404 drill holes and surface channels ( 71,034.71m of core). A total of 389 mineralized zones wireframes have been created for the Duquesne deposit. Mineralized zones average thickness in the deposit varies between 0.69 m and 4.28 m with an interpreted average thickness of 1.89 m .

The database used for the Pitt Gold MRE contains 163 surface diamond drill holes totaling 70,364.67m . A total of 119 mineralized zones wireframes have been created for the Pitt Gold deposit. Mineralized zones average thickness in the deposit varies between 0.71 m and 3.03 m with an interpreted average thickness of 1.56 m .

Capital Costs

The capital cost estimate for the proposed open pit operation in the PEA is based on the scheduled plant throughput rates, as well as a review of similar sized open pit gold operations.

Table 6: Capital Cost Details

| Total Capital Cost | C$M | | Infrastructure | $10 | | Power & Electrical | $15 | | Water | $37 | | Surface Operations | $5 | | Mining | $102 | | Process Plant | $190 | | Indirect | $90 | | Owner's Cost | $54 | | Construction cost | $503 | | Contingency | $126 | | Pre-Production | $57 | | Working Capital | $20 | | Initial Capital | $706 | | Sustaining and Development Capital | $738 | | Closure Costs | $30 | | Salvage Value | ($36) | | Total Capital | $1,438 |

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