Q2 2024 Financial Results

TORONTO, ON / ACCESSWIRE / August 14, 2024 / Amaroq Minerals Ltd. (AIM:AMRQ)(TSXV:AMRQ)(NASDAQ Iceland:AMRQ), an independent mine development company with a substantial land package of gold and strategic mineral assets in Southern Greenland, presents its Q2 2024 financials. A conference call for analysts and investors will be held today at 14:00 BST (13:00 GMT, 09:00 EST), details of which can be found further down in this announcement. All dollar amounts are expressed in Canadian dollars unless otherwise noted.

Eldur Olafsson, CEO of Amaroq, commented:

"Progress at Nalunaq is advancing smoothly, and we remain on track to achieve first gold production later this year. The completion of the main building works marks a significant milestone, and we are now focused on installing the key components of the processing plant. A standout achievement this quarter was receiving approval from the Greenlandic Government for our Environmental and Social Impact Assessments. Upholding the highest standards of environmental and social responsibility is fundamental to our mission as we bring Nalunaq into production.

"Our exploration efforts across our gold and strategic minerals targets are also progressing well. At Nalunaq, the Target Block resource expansion program is underway, with drill crews now fully mobilized on-site. At Stendalen, we have successfully completed the camp construction, and drilling operations have begun, informed by promising results from recently completed ground geophysics.

"Additionally, we are pleased to announce a significant post-period development: the successful arrangement of a substantial increase and extension of our debt financing package with Landsbankinn. This new arrangement simplifies the structure of the facility while securing more favorable rates."

Q2 2024 Corporate Highlights

• Amaroq group liquidity of $62.2 million consisting of cash balances, undrawn revolving credit facilities, undrawn revolving credit overrun facility less trade payables ($96.3 million as of March 31, 2024).

• Gold business working capital before convertible note liability of $50.5 million that includes prepaid contractors on the Nalunaq project of $19.6 million as of June 30, 2024 ($78.2 million that includes prepaid contractors on the Nalunaq project of $17.5 million as of March 31, 2024)

• The Gardaq Joint Venture that comprises the Strategic Minerals business has available liquidity of $13.5 million as of June 30, 2024 ($17 million as of March 31, 2023).

• Amaroq continues to develop opportunities in Servicing and Hydro to enhance local procurement options and support the transition towards cleaner energy sources.

Post-Period Highlights

• In July 2024, the Company agreed heads of terms, subject to final documentation, with Landsbankinn for US$35 million in three Revolving Credit Facilities, securing a substantial increase and extension to its current debt facilities.

• On 6 August 2024, Ellert Arnarson joined the Company as Chief Financial Officer (CFO).

Q2 2024 Operational Highlights

• Permitting: The Government of Greenland approved the Environmental Impact Assessment (EIA) and Social Impact Assessment (SIA) for the Nalunaq project in June 2024. The Company is now working with stakeholders on the Impact Benefit Agreement (IBA), which it aims to have in place by the end of the year.

• Contracting and Procurement: Procurement of all key contract packages is 92% complete. Contracts for the flotation recovery and dry stack tailings sections ("phase two") building and equipment has commenced and will be completed by the end of Q3 2024. The remaining contracts are also expected to be concluded in Q3 2024.

• Engineering: Process plant detail design and engineering for phase one was 96% complete at the end of Q2, with all packages issued to the market. Engineering for phase two of the process plant building has commenced and will be completed by the end of Q3 2024.

• Construction: Plant pad earthworks and civil construction was 100% complete. The plant building structural steel is 100% complete and cladding is 94% complete. Mechanical installation of the crushing circuit is 68% complete and installation of the civil foundations for the retaining walls, stockpile reclaimer and stacker conveyor have commenced. The TMM and light vehicle workshop construction is complete and electrical installation was 78% complete. Foundations for the new accommodation unit were 25% complete. Overall process plant construction is 56% complete.

• Mining: Mine Development has progressed as new equipment has arrived to site, including two new ST7 scoops and one new Jumbo drill. The ramp has been completed to 732 m and the first ore round was blasted on June 30th. Amaroq has continued the sump development which is 75% complete. Both Mine Arc refuge stations have been commissioned. The leaky feeder communication system was installed from 300 to the 720 ml. Construction of the underground main heating system on 300ml portal has commenced. The exhaust raise fans for Target Block have been commissioned in preparation for the development of the exploration drift as drilling is planned to commence in September.

• Nalunaq Exploration: All additional 75 vein sampling from historical core housed at Nalunaq has been completed and submitted to ALS for assaying. Drill crews and equipment for surface exploration drilling targeting expanded mineralization at the Target Block, have been mobilised to site.

• Strategic Minerals: Amaroq has mobilised three drill rigs and a semi-permanent 40 person camp in order to enact an expanded drilling programme at Stendalen, which has now commenced.

Nalunaq Project KPIs

• 103,680 total hours worked during Q2 2024

• Daily average of 96 people working on site at Nalunaq in Q2 2024

• Ratio of Greenlandic personnel at Nalunaq was 51% in Q2 2024

Outlook

• Activities at Nalunaq remain on track to deliver first gold in Q4 2024. An additional accommodation wing is due to be added in Q3 2024 to accommodate up to 120 people on site.

• The Ni-Cu exploration programme continues at the Stendalen copper-nickel discovery with an expanded drilling programme targeting the sulphide zone.

Exploration activities overview

Gold projects:

• Nalunaq

  • All additional 75 vein sampling from historical core housed at Nalunaq has been completed and submitted to ALS for assaying.

  • Drill crews and equipment for surface exploration drilling to enlarge the mineralised zone at the Target Block have mobilised to site.

  • Following completion of the underground rehabilitation, exploration will now be conducted from underground as well as surface. The 2024 exploration programme aims to provide additional information and data on the Mountain Block and Target Block extensions to the Main Vein as well as assessing continuity and form of the 75 Vein. Underground drilling locations have been designed and a rig is to be mobilised for operations in Q4 2024.

• Vagar and Surrounding Areas

  • Amaroq intends to continue its target generation programmes in the regions near to Nalunaq and Vagar licences.

Strategic Minerals:

• Sava Copper Belt (Sava/North Sava)

  • Geological field team have commenced a programme of mapping and sampling across the copper belt area assessing both potential porphyry and magmatic Cu-Ni targets.

  • Following the identification of a copper/molybdenum porphyry system at Target West, the Company intends to continue additional porphyry target generation across the Sava and North Sava licences as well as regionally across the Copper Belt targeting areas that hold the greatest potential to host porphyry related systems.

  • Further assessment of the prospectivity of the epithermal copper/gold mineralisation at Target North is also planned.

• Stendalen

  • Following the new Copper-Nickel discovery made at Stendalen, Amaroq has mobilised three drill rigs and a semi-permanent camp to site to facilitate an expanded drilling programme.

  • Following the successful completion of a ground geophysics programme, a more robust conductive target within the interpreted Feeder Zone has been defined which will be the focus of the 2024 drilling programme, which commenced post-period in August.

  • In addition, the Company has commenced planning for a downhole geophysics programme to provide further confidence to the overall extend and geometry of the intrusion and associated sulphide mineralisation.

  • Leveraging off the data from this discovery, ground studies will also assess the potential for further target areas regionally.

• Kobberminebugt

  • Amaroq continues to review the results of the detailed geophysical programme conducted over the Kobberminebugt licence in 2023. Specific geophysical targets will be interpreted, and target generation activities will take place during Summer 2024.

• Nunarsuit

  • Geophysical data collected during 2023 is currently being fully assessed and Amaroq aims to conduct a targeted field programme on the licence during Summer of 2024. Initial targets will include specific geophysical anomalies as well as outcropping niobium bearing pegmatites.

Details of conference call

A conference call for analysts and investors will be held today at 14:00 BST (13:00 GMT, 09:00 EST), including a management presentation and Q&A session.

To join the meeting, please register at the below link:

https://us06web.zoom.us/webinar/register/WN_Vcw3xLPxTP2xvokJBtfQVQ

Amaroq Financial Results

The following selected financial data is extracted from the Financial Statements for the six months ended June 30, 2024.

Financial Results

Financial Position

Conditional Awards under RSU Plan

Amaroq further announces that it made a conditional award (the "Award") under the Restricted Share Unit Plan (the "RSU Plan") to the Chief Financial Officer Ellert Arnarson whose appointment became effective on 06 August 2024. The Award consists of a conditional right to receive value if the future performance targets, applicable to the Award, are met. Any value to which the participant is eligible in respect of the Award will be granted as Restricted Share Units (each an "RSU"), with each RSU entitling the participant to receive common shares in the Company. Each RSU will be granted under, and governed in accordance with, the rules of the Company's Restricted Share Unit Plan (the "RSU Plan") available on the Company's website at https://www.amaroqminerals.com/about/corporate-governance/

The details of the Award are as follows:

• Initial price: share price on the date of appointment being C$1.04;

• Hurdle rate: 10% p.a. above the Initial Price;

• Pool: value equal to 10% of the growth in value above the Hurdle rate;

• Individual allocation: 12% of the pool;

• Measurement date: 31 December 2025, a single measurement date based on the 3 months average share price;

• RSU Grant date: Q1 2026;

• Vesting: 100% vests Q1 2027.

PDMR Dealing Notification Form of provided in accordance with Article 19 of the EU Market Abuse Regulation 596/2014 can be found below.

******************

DEALING NOTIFICATION FORM
FOR USE BY PERSONS DISCHARGING MANAGERIAL RESPONSIBILITY
AND THEIR CLOSELY ASSOCIATED PERSONS

Enquiries:

Amaroq Minerals Ltd.
Eldur Olafsson, Executive Director and CEO
eo@amaroqminerals.com

Eddie Wyvill, Corporate Development
+44 (0)7713 126727
ew@amaroqminerals.com

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

Panmure Liberum (UK) Limited (Joint Broker)
Scott Mathieson
Kieron Hodgson
+44 (0) 20 7886 2500

Camarco (Financial PR)
Billy Clegg
Elfie Kent
Fergus Young
+44 (0) 20 3757 4980

For Company updates:

Follow @Amaroq_minerals on X (Formerly known as Twitter)
Follow Amaroq Minerals Inc. on LinkedIn

Further Information:

About Amaroq Minerals

Amaroq Minerals' principal business objectives are the identification, acquisition, exploration, and development of gold and strategic metal properties in South Greenland. The Company's principal asset is a 100% interest in the past producing Nalunaq Gold mine which is due to go into production towards the end of 2024. The Company has a portfolio of gold and strategic metal assets in Southern Greenland covering the two known gold belts in the region as well as advanced exploration projects at Stendalen and the Sava Copper Belt exploring for Strategic metals such as Copper, Nickel, Rare Earths and other minerals. Amaroq Minerals is continued under the Business Corporations Act (Ontario) and wholly owns Nalunaq A/S, incorporated under the Greenland Public Companies Act.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Glossary

Inside Information
This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No. 596/2014 on Market Abuse ("UK MAR"), as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018, and Regulation (EU) No. 596/2014 on Market Abuse ("EU MAR").

Qualified Person Statement
The technical information presented in this press release has been approved by James Gilbertson CGeol, VP Exploration for Amaroq Minerals and a Chartered Geologist with the Geological Society of London, and as such a Qualified Person as defined by NI 43-101.

Amaroq Minerals Ltd.
UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
For the three and six months ended June 30, 2024

The attached financial statements have been prepared by Management of Amaroq Minerals Ltd. and have not been reviewed by the auditor

Amaroq Minerals Ltd.
Consolidated Statements of Financial Position
(Unaudited, in Canadian Dollars)