Steppe Gold Limited Announces Its Financial Results for the Quarter Ended March 31, 2020

Ulaanbaatar, Mongolia--(Newsfile Corp. - May 15, 2020) -  Steppe Gold Limited (TSX: STGO) ("Steppe Gold" or "the Company") is extremely pleased to announce its financial results for the quarter ended March 31, 2020.

The Company announces that the Company's interim consolidated financial results for the first fiscal quarter ended March 31, 2020 have been filed on SEDAR.

The full version of the Condensed Interim Consolidated Financial Statements and Management's Discussion & Analysis can be viewed on the Company's website at www.steppegold.com or under the Company's profile on SEDAR at www.sedar.com. Amounts are expressed in United States dollars unless otherwise noted.

HIGHLIGHTS

Financial Results for the Three Months Ended, March 31, 2020

• On January 20, 2020, the Company's Adsorption-Desorption Recovery (ADR) Plant was fully commissioned by the Professional Inspection Agency of Mongolia and declared ready for use.
• On January 30, 2020, the Company received funding from the Mongolian National Investment Fund PIF SPV. The fund has subscribed for a 12% two‐year secured convertible debenture of the Company in the principal amount of $3 million.
• Cash was $1.8 million at March 31, 2020, compared to $0.67 million at December 31, 2019. The increase was primarily due to cash received from financing, offset by cash utilised in operating activities.
• Subsequent to quarter end the Company commenced its first gold sales and sold a total of 5,233 oz of gold and 1,372 oz of silver in two separate deliveries to the Central Bank of Mongolia. This generated net cash flow before stream obligations of $8.5 million.
• On April 9, 2020, privately held debentures with a total value of $2,500,000 were converted into 4,807,692 common shares of the Company.
• Loss from operations for the quarter was $3.9 million ($0.09 per share) compared to a loss of $0.5 million ($0.01 per share) for the quarter ended March 31, 2019.

Steppe Gold Limited

Steppe Gold is Mongolia's premier precious metals company.

For Further information, please contact:

Matthew Wood, Executive Chairman
Bataa Tumur-Ochir, CEO and President

Shangri-La office, Suite 1201, Olympic street
19A, Sukhbaatar District 1,
Ulaanbaatar 14241, Mongolia
Tel: +976 7732 1914

Cautionary Note Regarding Forward-Looking Statements:

The above contains forward-looking statements that are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward-looking statements. Factors that could cause such differences include: changes in world commodity markets, equity markets, costs and supply of materials relevant to the mining industry, change in government and changes to regulations affecting the mining industry. Forward-looking statements in this release include, among other things, statements regarding the trading of the Common Shares and business, economic, and political conditions in Mongolia. Although we believe the expectations reflected in our forward-looking statements are reasonable, results may vary, and we cannot guarantee future results, levels of activity, performance or achievements. We disclaim any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/55922