Steppe Gold Provides Third Quarter Update Inventory Build up Continues and Near-Term Catalysts

Ulaanbaatar, Mongolia--(Newsfile Corp. - October 12, 2021) -  Steppe Gold Limited (TSX: STGO) (OTCQX: STPGF) (FSE: 2J9) ("Steppe Gold" or the "Company") is pleased to provide an update on its third quarter activities, including its operations at the ATO Gold Mine.

Steppe Gold is pleased to provide the following updates on the ATO Gold Mine (all figures in USD unless stated):

1. Mining and stacking on the heap leach phase at the ATO Gold Mine has continued in the third quarter uninterrupted. With 1.7 million tonnes stacked on the leach pad and a further 0.6 million tonnes on stacked on the ROM pad, we are pleased to report strong gold and silver inventory build-up through the year.

2. Based on sampling grades on mined and stacked ore, together with estimated unrecovered ore on the leach pad or in the solution or circuit, we estimate that we now have a total of over 40,000 oz of gold in inventory, on a 70% recovery basis, on the leach pad, ROM pad and in circuit.

3. Solid progress has been made on the construction and installation of the new fixed crushing unit and we expect this to be operational by the end of 2021. This is the first major equipment installation for the fresh rock phase, and it will also allow us to drive higher crushing rates in the remaining oxide phase with ample excess capacity in the plant.

4. The boiler house for winter leaching and production is complete and is now in the testing phase.

5. As outlined in previous filings and news releases we have been experiencing supply chain issues since the outbreak of COVID 19 in Mongolia in November 2020. Continuing high rates of COVID 19 in Mongolia have resulted in robust restrictions at the Mongolia-China border for certain goods. This has caused supply disruptions for our ATO mine, that the Company considers to be temporary in nature, representing a deferral of production from 2021 to 2022. These delays have persisted through the third quarter as production was effectively paused in the quarter.

6. Now with the pending onset of winter conditions we are focusing on maximizing our inventory position to set up for a very strong production year in 2022.

7. The Definitive Feasibility Study for the fresh rock expansion is essentially complete and headline numbers are expected to be released by October 26, with the final report to be filed shortly thereafter.

8. Exploration at the ATO Gold Mine continued in the third quarter with two active drill rigs on site and around 3,800 metres of drilling completed. Results are preliminary but there are some promising intercepts on step out drilling.

President and CEO of Steppe Gold, Bataa Tumur-Ochir commented, "While the pandemic continues to cause severe disruptions in our supply chain, we are optimistic that the China border issues will be resolved soon. Mining and stacking at ATO has continued at planned rates, with over 40,000 oz of gold currently in inventory. We expect that this will put us back on track for a strong year of production in 2022, towards ~60,000 Au oz. We are excited to shortly announce the definitive feasibility study for our fresh rock expansion, following on from the highly encouraging doubled resource update released earlier this year. We are also well advanced with project debt discussions that we expect to show strong support for the Company."

Steppe Gold Limited

Steppe Gold is Mongolia's premier precious metals company.

For Further information, please contact:

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:

This news release may contain "forward-looking statements" within the meaning of applicable Canadian securities laws, including, without limitation, our statements related to: the terms, timing and potential completion of the cross-listing on the Mongolian Stock Exchange, satisfaction of regulatory requirements in various jurisdictions and the use of the net proceeds therefrom; the completion of the boiler house; the timing and potential completion of the Definitive Feasibility Study; and the expected mineralization across the ATO Gold Mine licence(s); and the impact of reagent issues on the Company's business and its growth plans. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, and contingencies. These statements generally can be identified by the use of forward-looking words such as "may", "should", "will", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe" or "continue", or the negative thereof or similar variations. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause future results, performance or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. Steppe Gold's statements expressed or implied by these forward-looking statements are subject to a number of risks, uncertainties, and conditions, many of which are outside of Steppe Gold's control, and undue reliance should not be placed on such statements. Forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding the Company and its operations, including: changes in world commodity markets, equity markets, costs and supply of materials relevant to the mining industry, change in government; changes to regulations affecting the mining industry; risks inherent in the mining industry; and that future results may vary from historical results. 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.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/99318