Labrador Gold Provides Update on Sale of Kingsway Project

TORONTO, May 23, 2024 (GLOBE NEWSWIRE) -- Labrador Gold Corp. (TSX.V:LAB | OTCQX:NKOSF | FNR:2N6) (“LabGold” or the “Company”) is pleased to announce that further to its press release dated April 22, 2024, the Company is providing an update on the sale of the Kingsway Project as required by the policies of the TSX Venture Exchange (“TSXV”). Pursuant to the Definitive Agreement with New Found Gold Corp. (“NFG”), NFG will acquire a 100% interest in the Kingsway Project, including all property and mining rights associated with the property, (the “Transaction”) in exchange for $20,000,000 CAD (the “Purchase Price”) payable and satisfied by the delivery to LabGold of such number of NFG Common Shares (the “Consideration Shares”) determined by dividing the Purchase Price by the closing price of the NFG Common Shares on the last trading day prior to the closing of the Transaction. The Consideration Shares will be subject to a resale restriction of four months and one day from the closing of the Transaction.

The Annual General and Special Shareholders Meeting (the “Meeting”) to approve the Transaction has been scheduled for June 27, 2024. Shareholders of record on May 15, 2024 will be entitled to vote at the Meeting. It is anticipated that the Information Circular (the “Circular”) and materials for the Meeting (the “Meeting Material”) will be mailed to registered shareholders on or about May 27, 2024. Beneficial shareholders will receive a voting instruction form along with a notification with information on how they may access the Meeting Materials electronically.

LabGold’s Board of Directors has unanimously recommended that LabGold’s shareholders vote in favour of the Transaction. The directors and officers of LabGold have entered into voting and support agreements with NFG, pursuant to which they have agreed, among other things, to vote their shares in favour of the Transaction. Shareholders entitled to vote at the Meeting who do not expect to be present at the Meeting are encouraged to date, sign and return the form of proxy or voting instruction form delivered to them in favour of the Transaction.

Additional information regarding the Transaction will be provided in the Circular that will be mailed to registered shareholders and filed on SEDAR+ at www.sedarplus.com.

The TSX Venture Exchange has in no way passed upon the merits of the proposed Transaction and has neither approved nor disapproved the contents of this news release.