AEX Gold - 2022 Objectives and First Quarter Financial Results

2022-05-30

TSX - Toronto Stock Exchange · Gold · Canada

TORONTO, ON / ACCESSWIRE / May 30, 2022 /AEX Gold Inc. ("AEX" or the "Company" or the "Corporation") (AIM:AEXG; TSXV:AEX), the independent mining company with an unrivalled land package of gold and strategic mineral assets covering an area of 7,615.85 km2in Southern Greenland, is pleased to outline its 2022 objectives and Q1 Financial Results.

AEX Gold's strategy remains to bring the Nalunaq gold project back into production and use that base as a platform to discover and develop other world class gold and strategic mineral assets both directly and through partnerships to be found in the under explored OECD jurisdiction that is Greenland.

2022 activity highlights

Nalunaq: Core drilling from up to four rigs within and extension to the Valley Block aimed at increasing resources and confidence and to prepare the ground for potential new infrastructure development and bulk sample. Vagar Ridge: New core drilling programme using two rigs aimed at quantifying the scale of the discovery as well as the depth potential. Vagar Licence: Further geological mapping and sampling across five new targets identified by the 2021 exploration programme. Nanoq: Subject to the 2021 exploration results, expected to be released imminently, the Company's intent is to prepare for airborne geophysical survey across the target and along a 20km long structural corridor linking the discovery to the Jokum's Shear gold/copper occurrence. Sava and North Sava: Maiden scout core drilling programme to test IOCG mineralisation style identified within three target areas identified in 2021 as well as an extended airborne geophysical survey and geochemical sampling programme across North Sava. Stendalen: Airborne geophysical surveys and geological reconnaissance on recorded Ni/Cu sulphide mineralisation to define best drilling locations for a 2023 core drilling programme. Regional: further geological reconnaissance and sampling across Eagle's Nest gold target and Kobbermineburgt copper targets as well as sampling across Paatusoq Rare Earth target in preparation for more detailed exploration in 2023. Operational readiness: One of AEX's key regional differentiators, its all-weather exploration camp remains open with Geological and drill personnel inbound to commence 2022 field season; contracts being finalised with ALS Geochemistry for the installation of an onsite sample preparation laboratory; and most key contracts in place with service providers and equipment including four drill rigs, helicopters and boat charters and geological supplies. Cash balance of $23.8M at March 31, 2022.

Eldur Olafsson, CEO of AEX Gold, commented:

"After a very positive year of drilling and exploration in 2021 where amongst other things we confirmed a new high grade resource block at Nalunaq and a much larger scale to the Vagar Ridge discovery than we had imagined, we plan to build on this success in 2022 with an active drilling and geological programme across our ever-growing portfolio to test the size and prospectivity.We expect this programme to evolve as the season goes forward as we are still expecting results from our Nanoq Licence, which are due imminently, from regional assets and results from our Nørrearm Graphite samples, expected in H2.

"We have also made great strides within our strategic mineral and rare earths business, where Greenland is fast becoming the last frontier for Western developed nations to secure these valuable minerals which will play such an important role in the energy transition. In recognition of this potential, the Company has announced its intention to change its name from AEX Gold to Amaroq Minerals post the AGM on 16thJune 2022."

Precious Metals 2022 Exploration Work Programme:

Nalunaq

The 2022 exploration programme intends to provide further resource development through both infill and strike extension drilling across the Valley Block, informed by the Dolerite Dyke Model. To facilitate this program the Company will develop up to two new drill access roads from the existing mountain surface infrastructure. The programme will also include the underground assessment of extensions to the Target and Mountain Blocks, including the footwall vein, in order to further refine the Company's geological model and resource growth target areas. Subject to drill results, the 2022 exploration programme will provide AEX with the optionality of investigating additional underground infrastructure and an underground bulk sample in 2023 with an option for toll treatment off-site subject to discussions with the Government of Greenland. This would be used as a development step to increase resource confidence and de-risk the resource ahead of possible mine construction in 2024/2025, subject to permitting and funding. The Company has started discussion with mine contractors in order to mitigate delays, as the lead time is on average 12 months in the industry today. The Company is in the process of updating its Environmental Impact Assessment (EIA) and Social Impact Assessment (SIA), which as previously announced it expects to complete over the course of the next year.

Vagar Ridge

The 2021 exploration results have significantly increased the Vagar Ridge footprint, confirming its potential to be a multi-million ounce prospect, adding to AEX's substantial portfolio of prospective gold assets. AEX believes that Vagar Ridge may host up to four Orogenic gold veins with new rock chip samples giving up to 86.7 g/t gold. 2022 activity: AEX intends to mobilise two helicopter supported drill rigs to conduct the first core drilling on the discovery since 2013. This programme will aim to test the scale of the discovery and prepare it for more resource focused drilling. It will also aim to develop more evidence of Intrusion Related Gold mineralisation style across the target.

Vagar Licence Targets

The 2021 Vagar Licence exploration programme included hyperspectral imaging, reconnaissance sampling and a 385 km2high resolution airborne magnetic survey, interpreted by SRK Consulting. These results has defined a significant deformation zone that extends for more than 50 km across the Vagar licence and into AEX's neighbouring licences, highlighting five further high priority targets similar to Vagar Ridge 2022 activity: These five targets will be further investigated and sampled this year with a view to providing potential further drill targets in the next few years, depending upon results.

Nanoq Gold

2022 activity: Subject to the 2021 Nanoq exploration results which are currently being analysed and are expected to be released imminently, the Company intends to prepare for an airborne geophysical survey across the Nanoq discovery and across an interpreted structural corridor linking it to the Jokum's Shear target 20km to the south.

Eagle's Nest (Anoritooq licence)

2022 activity: Subject to the assessment of the 2021 exploration results in the area which are still being analysed, the Company intend to continue its early-stage geological reconnaissance mapping and sampling aimed at making further Orogenic gold discoveries north of Nalunaq.

Strategic Mineral Targets 2022 Exploration Work Programme:

General

Significant 3,527.75 km2mineral licence area has been acquired from Orano, taking AEX's total land package in South Greenland to 7,615.85km2and substantially increasing the Company's exposure to Base and Strategic Minerals. The acquisition means the Company will become the largest licence holder in South Greenland, and the third largest in Greenland, after Anglo American and Greenfields Exploration. AEX's ongoing Mineral System Modelling highlights the potential of Southern Greenland to host significant strategic metal deposits. These new licences sit within a interpreted Laurasian Mineral Belt connecting Eastern Canada through Greenland to Scandinavia that hosts World Class mineral deposits such as Voisey's Bay (Canada), Gardar Province (Greenland), and the Kiruna IOCG belt (Scandinavia). Work programmes at Sava have illustrated Iron Ore, Copper, Gold ("IOCG") style signatures across three target areas

Sava and North Sava

2021 Work programs at Sava have identified a IOCG (Iron Oxide, Copper Gold) and Porphyry Copper belt situated in close proximity to the international airport at Narsarsaq. North Sava has provided historical grab samples up to 382 g/t Gold (Au), 3.4% Copper (Cu), 3.7% Zinc (Zn), 100 g/t Silver (Ag), 19% Niobium (Nb), 2.2% Zirconium (Zr). 2022 activity: at Sava a maiden scout core drilling programme will test the mineralisation and alteration assemblage at the three targets developed during the course of 2021. These targets will also be further extended by additional geochemical sampling across the licence area. At North Sava, the Company will build upon the interpretations of Orano and conduct a remote sensing programme and airborne geophysical survey that will provide coverage across both licences and it is hoped that this will indicate further high priority targets for 2023.

The Stendalen Iron-Vanadium-Titanium layered intrusive

Previously explored by GEUS, Softrock Mineral and NunaMineral A/S. This intrusive is 8km in diameter and hosts a magnetic layer up to 20m thick which has provided historical samples yielding between 1-10.5% Titanium Dioxide (TiO2)(average of 4.8%) and 226-5,753ppm Vanadium (V) (average 2,335ppm). Stendalen also host the potential for Nickel (Ni), Copper (Cu) and Platinum Group Element (PGE) mineralisation with grab samples proving grades of 0.8% Copper (Cu), 0.5% Nickel (Ni) and 0.1% Cobalt (Co). 2022 activity: the Company intend to conduct an airborne geophysical (ZTEM) survey over the intrusion in order to understand its scale, structure and potential for deep sulphide mineralisation signatures. This will be coupled with a ground assessment of the reported Ni/Cu sulphide mineralisation in the contact areas of the intrusion. Finally, the Company will assess drill locations and site logistics ahead of a core drilling programme in 2023 subject to results.

Kobberminebugt

2022 activity: The Company intend to conduct further geological reconnaissance mapping and sampling in and around the former producing Josva copper mine in order to understand the style of mineralisation and extent potential. Further occurrences will also be explored further along the granite / sediment contact zone.

The Paatusoq Rare Earth Element, Niobium, Tantalum, Zirconium project

This syenite complex is 20 km in diameter covering an area of ~240 km2within an unexplored section of the Gardar Province. 2022 activity: This new critical metals target within the licences acquired from Orano shall be visited during the 2022 field programme to conduct additional geochemical sampling to test the styles of mineralisation and its relationship to the wider Gardar Province that also hosts the Kvanefjeld and Tanbreez rare earth projects.

In addition to these named programmes, the Company intends to assess numerous other gold targets within the Nanortalik gold belt and several identified graphite targets similar to that already being explored by AEX at Nørrearm and GreenRoc at the Amitsoq Project.

AEX Infrastructure support

The new all-weather 50-person camp remains open and the first field crew is already on site preparing for the 2022 field season. The Company have a drilling contract in place with two rigs already on site with a further two rigs inbound. The Company is also finalising contracts with ALS Geochemistry to install a Containerised Preparation Laboratory (CPL) at Nalunaq to service the company's requirements through 2022 and beyond. This laboratory will allow the Company to provide more regular samples for full chemical assay and provide shorter assaying lead-times that are significantly stretched globally.

AEX Gold Financial Results

The Corporation had a cash balance of $23.8 million at March 31, 2022 ($27.3 million at December 31, 2021), with no debt, and total working capital of $22.6 million ($25.2 million at December 31, 2021). Exploration and evaluation expenses during the period were $1.0 million (Q1 2021: $1.2 million), predominantly on the Nalunaq Property. General and administrative expenses during the period were $3.0 million (Q1 2021: $1.6 million), with the increase as a result of share-based compensation granted to its officers, employees and consultants.

Selected Financial Information

The following selected financial data is extracted from the Financial Statements for the three months ended March 31, 2022.

Financial Results

| | | Three months

ended March 31, | | | | | | | | | | 2022 | | | 2021 | | | | | | | $ | | | $ | | | | | Exploration and evaluation expenses | | | 1,010,330 | | | | 1,247,147 | | | General and administrative | | | 2,988,769 | | | | 1,585,071 | | | Net loss and comprehensive loss | | | (4,135,498 | ) | | | (3,289,052 | ) | | Basic and diluted loss per common share | | | (0.02 | ) | | | (0.02 | ) |

Financial Position

| | | As at March 31, 2022 | | | As at December 31, 2021 | | | | | | | $ | | | $ | | | | | Cash on hand | | | 23,823,441 | | | | 27,324,459 | | | Total assets | | | 39,195,469 | | | | 42,781,664 | | | Total current liabilities | | | 1,207,103 | | | | 2,100,084 | | | Shareholders' equity | | | 37,276,866 | | | | 39,968,502 | | | Working capital | | | 22,812,025 | | | | 25,542,242 | |

Enquiries: AEX Gold Inc. Eldur Olafsson, Director and CEO +354 665 2003 eo@aexgold.com

Eddie Wyvill, Investor Relations +44 (0) 7713 126727 ew@aexgold.com

Stifel Nicolaus Europe Limited (Nominated Adviser and Broker) Callum Stewart Simon Mensley Ashton Clanfield +44 (0) 20 7710 7600

Panmure Gordon (UK) Limited (Joint Broker) John Prior Hugh Rich Dougie Mcleod +44 (0) 20 7886 2500

SI Capital Limited (Joint Broker) Nick Emerson Charlie Stephenson +44 (0) 1483 413500

Camarco (Financial PR) Billy Clegg Emily Hall Charlie Dingwall+44 (0) 20 3757 4980

For Company updates: Follow @AexGold on Twitter Follow AEX Gold Inc. on LinkedIn

AEX Gold Inc: Unaudited Condensed Interim Consolidated Financial Statements for the Three Months Ended March 31, 2022

AEX Gold Inc. Consolidated Statements of Financial Position (Unaudited, in Canadian Dollars)

March 31, | | | As at December 31, | | | | | | | | Notes | | | 2022 | | | 2021 | | | | | | | | | | | $ | | | $ | | | | | | ASSETS | | | | | | | | | | | | | | Current assets | | | | | | | | | | | | | | Cash | | | | | | 23,823,441 | | | | 27,324,459 | | | | Sales tax receivable | | | | | | 36,054 | | | | 51,250 | | | | Prepaid expenses and others | | | | | | 159,633 | | | | 266,617 | | | | Total current assets | | | | | | 24,019,128 | | | | 27,642,326 | | | | | | | | | | | | | | | | | | Non-current assets | | | | | | | | | | | | | | Deposit | | | | | | 27,944 | | | | 9,805 | | | | Escrow account for environmental monitoring | | | | | | 409,727 | | | | 424,637 | | | | Mineral properties | | 3 | | | | 62,244 | | | | 62,244 | | | | Capital assets | | 4 | | | | 14,676,426 | | | | 14,642,652 | | | | Total non-current assets | | | | | | | 15,176,341 | | | | 15,139,338 | | | TOTAL ASSETS | | | | | | | 39,195,469 | | | | 42,781,664 | | | | | | | | | | | | | | | | | LIABILITIES AND EQUITY | | | | | | | | | | | | | | Current liabilities | | | | | | | | | | | | | | Trade and other payables | | | | | | | 1,137,933 | | | | 2,049,249 | | | Lease liabilities - current portion | | 5 | | | | 69,170 | | | | 50,835 | | | | Total current liabilities | | | | | | | 1,207,103 | | | | 2,100,084 | | | | | | | | | | | | | | | | | Non-current liabilities | | | | | | | | | | | | | | Lease liabilities | | 5 | | | | 711,500 | | | | 713,078 | | | | Total non-current liabilities | | | | | | | 711,500 | | | | 713,078 | | | Total liabilities | | | | | | | 1,918,603 | | | | 2,813,162 | | | | | | | | | | | | | | | | | Equity | | | | | | | | | | | | | | Capital stock | | | | | | | 88,500,205 | | | | 88,500,205 | | | Contributed surplus | | | | | | | 4,744,585 | | | | 3,300,723 | | | Accumulated other comprehensive loss | | | | | | | (36,772 | ) | | | (36,772 | ) | | Deficit | | | | | | | (55,931,152 | ) | | | (51,795,654 | ) | | Total equity | | | | | | | 37,276,866 | | | | 39,968,502 | | | TOTAL LIABILITIES AND EQUITY | | | | | | | 39,195,469 | | | | 42,781,664 | | | | | | | | | | | | | | | |

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.

AEX Gold Inc. Consolidated Statements of Comprehensive Loss (Unaudited, in Canadian Dollars)

ended March 31, | | | | | | | | | | | Notes | | | 2022 | | | 2021 | | | | | | | | | | | $ | | | $ | | | | | | | | | | | | | | | | | | | | Expenses | | | | | | | | | | | | | | Exploration and evaluation expenses | | 7 | | | | 1,010,330 | | | | 1,247,147 | | | | General and administrative | | 8 | | | | 2,988,769 | | | | 1,585,071 | | | | Foreign exchange loss | | | | | | | 147,188 | | | | 490,599 | | | Operating loss | | | | | | | 4,146,287 | | | | 3,322,817 | | | Other expenses (income) | | | | | | | | | | | | | | Interest income | | | | | | | (20,325 | ) | | | (44,070 | ) | | Finance costs | | | | | | | 9,536 | | | | 10,305 | | | Net loss and comprehensive loss | | | | | | | (4,135,498 | ) | | | (3,289,052 | ) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Weighted average number of common shares outstanding - basic and diluted | | | | | | | 177,098,737 | | | | 177,098,737 | | | Basic and diluted loss per common share | | | | | | | (0.02 | ) | | | (0.02 | ) | | | | | | | | | | | | | | |

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.

AEX Gold Inc. Consolidated Statements of Changes in Equity (Unaudited, in Canadian Dollars)

| | | Number of common shares

outstanding | | | Capital

Equity | | | | | | | | | | | | | | $ | | | $ | | | $ | | | $ | | | $ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Balance at January 1, 2021 | | | 177,098,737 | | | | 88,500,205 | | | | 2,925,952 | | | | (36,772 | ) | | | (27,106,415 | ) | | | 64,282,970 | | | Net loss and comprehensive loss | | | - | | | | - | | | | - | | | | - | | | | (3,289,052 | ) | | | (3,289,052 | ) | | Balance at March 31, 2021 | | | 177,098,737 | | | | 88,500,205 | | | | 2,925,952 | | | | (36,772 | ) | | | (30,395,467 | ) | | | 60,993,918 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Balance at January 1, 2022 | | | 177,098,737 | | | | 88,500,205 | | | | 3,300,723 | | | | (36,772 | ) | | | (51,795,654 | ) | | | 39,968,502 | | | Net loss and comprehensive loss | | | - | | | | - | | | | - | | | | - | | | | (4,135,498 | ) | | | (4,135,498 | ) | | Stock-based compensation | | | - | | | | - | | | | 1,443,862 | | | | - | | | | - | | | | 1,443,862 | | | Balance at March 31, 2022 | | | 177,098,737 | | | | 88,500,205 | | | | 4,744,585 | | | | (36,772 | ) | | | (55,931,152 | ) | | | 37,276,866 | |

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.

AEX Gold Inc. Consolidated Statements of Cash Flows (Unaudited, in Canadian Dollars)

ended March 31, | | | | | | | | | | | | | | 2022 | | | 2021 | | | | | | | | | | | $ | | | $ | | | | | | | | | | | | | | | | | | | | Operating activities | | | | | | | | | | | | | | Net loss for the period | | | | | | (4,135,498 | ) | | | (3,289,052 | ) | | | Adjustments for: | | | | | | | | | | | | | | Depreciation | | 4 | | | | 203,970 | | | | 71,862 | | | | Stock-based compensation | | | | | | | 1,443,862 | | | | - | | | Other expenses (income) | | | | | | | 9,048 | | | | - | | | Foreign exchange loss | | | | | | | 145,361 | | | | 504,799 | | | | | | | | | | (2,333,257 | ) | | | (2,712,391 | ) | | Changes in non-cash working capital items: | | | | | | | | | | | | | | Sales tax receivable | | | | | | | 15,196 | | | | (5,004 | ) | | Prepaid expenses and others | | | | | | | 106,984 | | | | 23,580 | | | Trade and other payables | | | | | | | (905,619 | ) | | | 96,077 | | | | | | | | | | (783,439 | ) | | | 114,653 | | | Cash flow used in operating activities | | | | | | | (3,116,696 | ) | | | (2,597,738 | ) | | | | | | | | | | | | | | | | Investing activities | | | | | | | | | | | | | | Acquisition of capital assets | | 4 | | | | (247,834 | ) | | | (594,722 | ) | | | Deposit on order | | | | | | | - | | | | (3,306,586 | ) | | Cash flow used in investing activities | | | | | | | (247,834 | ) | | | (3,901,308 | ) | | | | | | | | | | | | | | | | Financing activities | | | | | | | | | | | | | | Principal repayment - lease liabilities | | 5 | | | | (5,550 | ) | | | (16,168 | ) | | | Cash flow from financing activities | | | | | | | (5,550 | ) | | | (16,168 | ) | | | | | | | | | | | | | | | | Net change in cash before effects of exchange rate changes on cash during the period | | | | | | | (3,370,080 | ) | | | (6,515,214 | ) | | Effects of exchange rate changes on cash | | | | | | | (130,938 | ) | | | (346,875 | ) | | Net change in cash during the period | | | | | | | (3,501,018 | ) | | | (6,862,089 | ) | | Cash, beginning of period | | | | | | | 27,324,459 | | | | 61,874,999 | | | Cash, end of period | | | | | | | 23,823,441 | | | | 55,012,910 | | | | | | | | | | | | | | | | | Supplemental cash flow information | | | | | | | | | | | | | | Interest received | | | | | | | 20,325 | | | | 44,070 | | | Additions in capital assets included in trade and other payables | | | | | | | 48,290 | | | | - | | | | | | | | | | | | | | | |