SolGold PLC Announces Cascabel Amended Investment Protection Agreement

Rhea-AI Summary

SolGold has secured a major milestone for its Cascabel Copper-Gold Project in Ecuador through the execution of an Amended Investment Protection Agreement (AIPA). The agreement, signed with the Ecuadorian Government, recognizes $311.5 million in historical investments made between 2013 and 2023.

The AIPA provides crucial legal, fiscal, and regulatory certainty for the project's advancement, including:

• Guaranteed legal framework under Ecuador's COPCI
• International arbitration rights in London, UK
• Enhanced local employment commitments
• Strengthened community development focus

This agreement also unlocks the second tranche of funding from SolGold's gold stream financing agreement with Franco-Nevada and Osisko Bermuda. CEO Dan Vujcic emphasizes this as a significant step in de-risking the project while reinforcing the partnership with Ecuador's government.

Positive

• Execution of Amended Investment Protection Agreement (AIPA) provides long-term legal and fiscal certainty
• Recognition of $311.5M in historical investments validates project development progress
• Unlocks second tranche of funding from Franco-Nevada and Osisko gold stream financing
• International arbitration provision in London enhances legal security for investors
• Government support confirmed for project development, reducing political risk

Negative

• Significant capital expenditure of $311.5M already invested with no revenue generation yet
• Project still in development phase with no clear timeline to production
• Continued dependence on external financing through streaming agreements

BISHOPSGATE, LONDON / ACCESS Newswire / May 1, 2025 / SolGold (LSE:SOLG)(TSX:SOLG) is pleased to announce the execution of the Amended Investment Protection Agreement ("AIPA") with the Government of Ecuador for its flagship Cascabel Copper-Gold Project ("Cascabel" or the "Project").

Following formal approval by the Committee for the Strategic Promotion and Attraction of Investments ("CEPAI"), the AIPA was signed between SolGold's 100% owned subsidiaries, Exploraciones Novomining S.A. ("ENSA") and Solgold-Ecuador S.A. ("SGE"), and the Ministry of Production, Foreign Trade, Investments and Fisheries, marking a significant milestone in securing long-term legal, fiscal, and regulatory certainty for the advancement of the Cascabel Project.

The AIPA updates the original Investment Protection Agreement signed earlier in the Project's life cycle, affirming the legal and fiscal framework to reflect Cascabel's transition toward development and recognizing US$311.5 million in historical investment made by SolGold through 2023 during the exploration stage.

Completion of the AIPA also satisfies a key condition precedent for the release of the second tranche of funding under SolGold's syndicated gold stream financing agreement with Franco-Nevada (Barbados) Corporation and Osisko Bermuda Limited.

The signing reflects SolGold's continued commitment to progressing Cascabel in partnership with the Ecuadorian Government and demonstrates Ecuador's support for ESG-aligned, long-life mining investments.

AIPA Highlights

· Recognition of US$311.5 million in historical investments between 2013 and 2023.

· Guarantees an established legal and fiscal framework under Ecuador's Organic Code of Production, Trade, and Investment ("COPCI").

· Provides for the resolution of disputes through international arbitration under ICC rules, with the seat of arbitration in London, UK, further enhancing the legal security framework supporting the Cascabel Project.

· Strengthens SolGold's commitments to local employment, community development, and environmental stewardship.

· Reinforces SolGold's alignment with the Government of Ecuador's goals of promoting responsible, sustainable mining development.

Dan Vujcic, Chief Executive Officer of SolGold, commented:

"The AIPA execution represents an important step forward in de-risking the Cascabel Project. This achievement underscores the strength of partnership between SolGold and the Government of Ecuador and reinforces our shared commitment to sustainable project development. We remain focused on advancing Cascabel with urgency and intent to ultimately delivering a world-class mining complex that benefits our host communities, shareholders, and all stakeholders."

CONTACTS

Dan Vujcic Chief Executive Officer

Tel: +44 (0) 20 3807 6996

ABOUT SOLGOLD

SolGold is a leading resources company focused on the discovery, definition and development of world-class copper and gold deposits and continues to strive to deliver objectives efficiently and in the interests of shareholders.

SolGold completed and released a staged development plan, Pre-Feasibility Study on 16 February 2024. The study, completed at US$1750/oz gold, US$3.85/lb copper and US$22.50/oz for silver, delivered an NPV (based on a discount rate of 8%) of US$3.22bn on a capex of US$1.55bn for an initial 12 Mtpa underground block caving operation. The evaluation also showed an after-tax IRR of 24% and a first 10-year free cash flow generation of US$7.1bn. The PFS assessed Mineral Reserves 539.7 Mt tonnes, which represents only 18% of the total resource over an initial 28-year project life.

On 15 July 2024, SolGold announced a gold stream agreement with Franco Nevada and Osisko Royalties (the "Streamers") pursuant to which the Streamers would pay US$100m as pre-development funding in three tranches, conditional on achieving various technical and permitting milestones. The first US$33.3m was received on signing. A further US$650m contribution to development expenditure will be provided on completion of the feasibility study, permitting and financing, subject to CPs, acceptable financing packages for the balance funding required. SolGold has agreed, in consideration for this funding, a life of mine stream priced at 20% of the spot gold price at the time for 20% of gold production for the first 10 years and 12% thereafter. The stream represents approximately 5% of total revenue for the project and provides some 42% of currently estimated capital development costs. SolGold retains change of control buyback options on the stream to the extent of 50% within 3 years and 33 1/3 % for a further two years.

SolGold continues to advance de-risking programs, permitting and financing discussions and to reevaluate the project at recent consensus prices for copper and gold.

On 28 October 2024, SolGold appointed G-Mining Services to be the Project Manager for the Feasibility Study.

The Company operates with transparency and in accordance with international best practices. SolGold is committed to delivering value to its shareholders while simultaneously providing economic and social benefits to impacted communities, fostering a healthy and safe workplace, and minimizing environmental impact.

SolGold is listed on the London Stock Exchange and Toronto Stock Exchange (LSE/TSX: SOLG).

Seewww.solgold.com.aufor more information. Follow us on X @SolGold_plc.

CAUTIONARY NOTICE

News releases, presentations and public commentary made by SolGold plc (the "Company") and its Officers may contain certain statements and expressions of belief, expectation or opinion which are forward looking statements, and which relate, inter alia, to interpretations of exploration results to date and the Company's proposed strategy, plans and objectives or to the expectations or intentions of the Company's Directors, including the plan for developing the Project currently being studied as well as the expectations of the Company as to the forward price of copper. Such forward-looking and interpretative statements involve known and unknown risks, uncertainties, and other important factors beyond the control of the Company that could cause the actual performance or achievements of the Company to be materially different from such interpretations and forward-looking statements.

Accordingly, the reader should not rely on any interpretations or forward-looking statements, and save as required by the exchange rules of the TSX and LSE or by applicable laws, the Company does not accept any obligation to disseminate any updates or revisions to such interpretations or forward-looking statements. The Company may reinterpret results to date as the status of its assets and projects changes with time, expenditure, metals prices and other affecting circumstances.

This release may contain "forward looking information". Forward looking information includes, but is not limited to, statements regarding the Company's plans for developing its properties. Generally, forward looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved".

Forward looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward looking information, including but not limited to: transaction risks; general business, economic, competitive, political and social uncertainties; future prices of mineral prices; accidents, labour disputes and shortages and other risks of the mining industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, risks relating to the ability of exploration activities (including assay results) to accurately predict mineralization; errors in management's geological modelling and/or mine development plan; capital and operating costs varying significantly from estimates; the preliminary nature of visual assessments; delays in obtaining or failures to obtain required governmental, environmental or other required approvals; uncertainties relating to the availability and costs of financing needed in the future; changes in equity markets; inflation; the global economic climate; fluctuations in commodity prices; the ability of the Company to complete further exploration activities, including drilling; delays in the development of projects; environmental risks; community and non-governmental actions; other risks involved in the mineral exploration and development industry; the ability of the Company to retain its key management employees and skilled and experienced personnel; and those risks set out in the Company's public documents filed on SEDAR+ at www.sedarplus.ca. Accordingly, readers should not place undue reliance on forward looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

The Company and its officers do not endorse, or reject or otherwise comment on the conclusions, interpretations or views expressed in press articles or third-party analysis.

SolGold plc UK Company No. 5449516 ARBN 117 169 856 Email: info@solgold.com.auWebsite: www.solgold.com.au

Head office: Level Level 5/191 St Georges Terrace, Perth WA 6000Australia Postal address: PO Box 7059, Cloisters Square PO Perth WA 6850 Australia

Registered office: 1 Cornhill, London, EC3V 3ND, UK Phone: +44 (0) 20 3807 6996

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

SOURCE: SolGold PLC

View the original press release on ACCESS Newswire

FAQ

What is the value of SolGold's historical investments in Cascabel project through 2023?

SolGold (SLGGF) invested US$311.5 million in the Cascabel Copper-Gold Project during its exploration stage from 2013 to 2023, as recognized in the Amended Investment Protection Agreement with Ecuador.

What legal protections does the 2025 AIPA provide for SolGold's Cascabel project?

The 2025 AIPA provides legal and fiscal framework under Ecuador's COPCI, and ensures dispute resolution through international arbitration in London, UK, offering enhanced security for SolGold's Cascabel project.

How does the AIPA affect SolGold's gold stream financing agreement?

The AIPA completion satisfies a key condition for releasing the second tranche of funding under SolGold's syndicated gold stream financing agreement with Franco-Nevada and Osisko Bermuda Limited.

What environmental and social commitments has SolGold made in the 2025 AIPA?

Under the 2025 AIPA, SolGold has strengthened its commitments to local employment, community development, and environmental stewardship, aligning with Ecuador's goals for responsible and sustainable mining.

What is the significance of AIPA for SLGGF investors?

The AIPA represents a significant de-risking milestone for SLGGF investors by securing long-term legal, fiscal, and regulatory certainty for the Cascabel Project's advancement in Ecuador.