True Gold Mining Reports Q3 2014 Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 24, 2014) - True Gold Mining Inc. (TSX VENTURE:TGM) ("True Gold" or the "Company") reported the financial results and business highlights for the nine-months ended September 30, 2014. To date, all aspects of the Karma Gold Project ("Karma" or the "Project") are on time and on budget.

THIRD QUARTER HIGHLIGHTS

Project Finance - Karma Fully Funded

• Secured financing of up to US$120 million from Franco-Nevada Corporation ("Franco-Nevada") and Sandstorm Gold Inc. ("Sandstorm") to fully fund Karma construction as well as certain corporate and Burkina general and administrative costs.
• Commenced drawdown under the financing agreement receiving an initial payment of US$37 million. Draw down of the remaining balance will be made over the course of construction.

Permitting - Karma Fully Permitted

• The Company received the Kao and Nami exploitation permits.
• All five deposits within the Karma Feasibility Study ("Karma FS") mine plan are fully permitted.
• No other permits are required under the Karma FS mine plan.

Project Development - Karma Construction Underway

• Project construction well underway (earthworks on the plant site terraces are 100% complete and civil works more than 20% complete), on time and on budget, with approximately US$51.5 million (greater than 39%) of the total US$131.5 million Karma initial capex spent and committed to date.
• Long lead time capital items ordered, with all mining fleet vehicles and equipment expected on-site by January 2015.

Potential Mine Expansion - North Kao

• Completed a Preliminary Economic Assessment on North Kao.
• Production rate at North Kao of 118,000 oz Au/year on average over 2.5 year mine life.
• North Kao yields an after-tax IRR of 213% and adds approximately US $70.0 million to Karma after tax NPV.
• Potential to add US$118 million in after-tax free cash flow to the Karma FS economics.

Project Optimization - Cost/Operating Savings

• Secured long-term cement contract at a price lower than one used in the Karma FS.
• Increases the Karma FS after-tax NPV by US$20 million to $198.8 million @ US$1,250/oz Au.

Exploration