Bibiani and Chicano Gold Mines Increase Monthly Production By 20.7%

VANCOUVER - Asante Gold Corporation President and CEO, Dave Anthony, stated, “Over the past 12 months Asante has been transformed from an early-stage exploration company to a mid-tier gold producer. The significant production gains in November and December bode well for the achievement of our 400,000 ounce target from Bibiani and Chirano for the fiscal year ending January 31, 2024. Over the past five months we have made payments totaling US$83.6 million towards closing our Bibiani acquisition and repaying our gold forward sale agreement. Looking forward, we continue to capture the benefits of owning these two nearby operating mines, which incorporate a district scale land package with significant exploration potential. Value creation initiatives are proceeding across our business as we look to make Asante one of the top mining companies in Africa.”

The Company reported a 20.7% increase in average monthly gold production for November and December 2022, as compared with the prior two months, from its Bibiani Gold Mine and Chirano Gold Mine in Ghana. Gold production on a combined basis for Bibiani and Chirano totaled 47,954 ounces for a monthly average of 23,977 ounces, up 20.7% from previous 39,731 ounces or a monthly average of 19,866 ounces for September and October. The November and December gold production monthly average was up 34.4% from the monthly average of 17,834 ounces gold from August to October, 2022, Asante’s third fiscal quarter.

Asante expects to disclose its production results.

The Bibiani process plant and mine facilities are operating on a 24 hour per day basis, with ~230,000 tonnes of ore treated in each of November and December, 18% ahead of the ramp up schedule. Asante plans to increase throughput to 250,000 tonnes ore per month by end of March 2023. Preliminary gold production in December was 12,171 ounces, with 86.3% recovery from 1.70 g/t average gold grade feeding the mill. We note that as the mine development continues into Q3 2023, the process plant feed grade is planned to approximately 3 g/t. A dedicated power supply line was completed in December enabling the Process Plant to operate with fewer power disruptions. This will support initiatives to improve operating results going forward. The mine plan and mine to mill reconciliation for the Walsh satellite pit and Main Pit remain on target. The underground mine program study initiated in the fall of 2022 remains on track, with completion expected in June 2023. This program will define the initiatives required to extract mineralized material below Strauss, Walsh, Elizabeth Hill, Big Mug, and the Main Pit, from 2024. The Company plans to file an updated NI 43-101 technical report in respect of Bibiani to incorporate results of the 2022 exploration program during calendar Q3 2023. This report will incorporate exploration results and depletion.

The Walsh Pit continues to outperform, relative to our initial planned gold production. Exploration success in this area has increased planned production from the Walsh pit to more than 100,000 ounces from 20,000 ounces, with further exploration work underway.

The near mine exploration program continues, and the Company is working to extend the Bibiani Open Pit life of mine from 8.3 years. Exploration continues to focus on four targets: Aheman, Elizabeth, Grasshopper and South Russel. Total drilling completed in calendar 2022 exceeded 24,000 meters, slightly ahead of the plan, which was 23,900 meters. The Company plans to continue its near mine development exploration program in calendar 2023 and 2024 with planned drilling of 30,000 meters per year.

Advanced exploration at the South Russel target has continued. The strike length of gold mineralization at South Russel is now confirmed to 500 meters with recent drill intercepts confirming high grade mineralization from surface, consistent in width and grade to previous intercepts. The gold mineralized system remains open along strike and to depth.

Following recent drill results from the Grasshopper satellite pit exploration and mine development program, the Company expects the Grasshopper satellite pit to be opened up in calendar Q2 2023 and is expected to provide additional process plant feed through Q1 2024.

All Chirano process plant and mine facilities are operating on a 24 hour per day basis, with ~285,000 tonnes of ore treated in December, as budgeted. Preliminary gold production in December was 12,011 ounces, with 89% recovery from 1.46 g/t average mill feed gold grade. The Company continues with roll out of its Chirano Business Improvement Plan targeting increased gold recovery to +91%, increase gold production by 30% and reduce AISC by 10% for calendar 2024.

Detailed studies to capture potential synergies between the Bibiani and Chirano Mines are advanced. A principal initiative is the development of an access road to directly link the process plants, which are approximately 15 km apart. This road will support shared services activities and will be developed further, to become a mine haul road, so that ore can be treated where most appropriate.