New Found Reports Positive Phase 1 Metallurgical Test Results Demonstrating 90% to 96% Gold Extraction at Queensway - Seite 2

Ron Hampton, Chief Development Officer of New Found, stated: “These initial results of the metallurgical testing indicate excellent gold extraction from the mineralization observed at the Keats, Lotto, and Golden Joint. In addition, this test work indicates the suitability of processing utilizing conventional gravity separation and carbon-in-leach (CIL) technology.”

Additional Details

Phase I scope of work consisted of chemical and mineralogical analyses, environmental characterization, establishment of comminution parameters, gold extraction methods, reagent consumption, cyanide detoxification, and solid-liquid separation properties for process and tailings streams.

Results, summarized in Table 1, which include all 116 variability composites, indicate that mineralized zones are generally high-grade and contain significant free-milling gold, which is amenable to both gravity and CIL leach extraction. Free gold grains greater than 150 microns in size were observed predominantly in the quartz veins located throughout the zones. Weighted average gold extraction for all targeted mineralized zones ranged from 90% to 96% when reduced to a product size of 75 microns.

Comminution test work indicated that the tested material had an average SMC Axb index of approximately 62 and an average Bond Work Index (BWI) of approximately 17.5 kWh/t, which would be considered a medium hard ore for SAG milling and medium hard ore for ball milling.

Laboratory test work was carried out by Base Metallurgical Laboratory Ltd. in Kamloops, British Columbia.

At-The-Market Quarterly Update

The Company is pleased to provide a quarterly update with respect to the Company’s at-the-market equity offering program (the “ATM”) implemented on August 26, 2022, pursuant to an equity distribution agreement (the “Equity Distribution Agreement”) with BMO Nesbitt Burns Inc., Paradigm Capital Inc. (together, the “Canadian Agents”) and BMO Capital Markets Corp. (the “U.S. Agent” and, together with the Canadian Agents, the “Agents”).

From the commencement of the ATM to March 31, 2024, the Company issued an aggregate of 6,614,143 common shares in the capital of the Company (the “ATM Shares”), through the facilities of the TSX Venture Exchange and NYSE American, at an average price per ATM Share of C$5.66. From December 31, 2023, to March 31, 2024, the Company issued 2,561,690 ATM Shares for aggregate gross proceeds of C$11,878,079. Pursuant to the Equity Distribution Agreement, a cash commission of C$279,135 was paid to the Agents in connection with the issuance of the ATM Shares during the last fiscal quarter, resulting in aggregate net proceeds of C$11,598,891.