Mr. Eldur Olafsson reports

Q1 2024 FINANCIAL RESULTS

Amaroq Minerals Ltd. has released its first quarter 2024 financials. A conference call for analysts and investors will be held today at 4 p.m. BST (3 p.m. GMT, 11 a.m. EST), details of which can be found farther down in this announcement. All dollar amounts are expressed in Canadian dollars unless otherwise noted.

Eldur Olafsson, chief executive officer of Amaroq, commented:

"During the quarter we successfully completed a fundraise to accelerate mining at Nalunaq, whilst continuing to invest in our wider gold and strategic minerals portfolio in South Greenland. I would like to thank all participating shareholders for their strong support shown in this financing.

"I have been on site at Nalunaq now for some weeks, participating across all workstreams, and am highly encouraged by how operations are progressing. It has been excellent to be working alongside around 80 people from the Amaroq mining, engineering and site teams, in addition to our contractors Thyssen Schachtbau, Halyard, HK Transport, Scott Steel and Arctic Unlimited. With our new general manager Jaco Duvenhage hired to oversee all operations at Nalunaq, we are seeing good progress on all fronts, and I would like to thank the team for their hard work. The experience gained this winter, in our first year of year-round operations, has been invaluable to improving our understanding and planning for developing future projects in South Greenland. Construction works over this period were completed despite pack ice conditions, thanks to the foresight of the team who ensured that all the required equipment was mobilized to site ahead of time. In addition, at the end of March, the successful first underground mining blast at Nalunaq was initiated at the 720-metre level, which was a key milestone.

"I look forward to providing the market with a more complete update on Nalunaq operations at our capital markets event on June 13, where we will present visuals of the progress made to date and providing guidance on the cost to complete as well as the expected date of first gold production. In addition, we will present our plan for resource growth at Nalunaq, along with details of our expanded drilling program at the Stendalen copper-nickel discovery.

"Finally, progress on new growth opportunities within South Greenland, including strategic minerals, hydro and servicing, are progressing well and we look forward to providing an update to the market in due course, during or before the capital markets day."

Q1 2024 corporate highlights:

• Amaroq group liquidity of $96.31-million consisting of cash balances, undrawn revolving credit facilities, undrawn revolving credit overrun facility less trade payables ($52.42-million as at Dec. 31, 2023).
• Gold business working capital of $78.2-million that includes prepaid contractors on the Nalunaq project of $17.47-million as of March 31, 2024 ($37.6-million as at Dec. 31, 2023, including prepaid contractors on the Nalunaq project of $18.68-million).
• The Gardaq Joint venture that comprises the strategic minerals business has available liquidity of $17-million ($18.7-million as at Dec. 31, 2023) on a 100-per-cent basis.
• In February, 2024, the company completed a fundraising, raising net proceeds of approximately $74.52-million, to accelerate mining of the target block at the Nalunaq mine to maintain the processing plant's current nameplate capacity of 300 tonnes of ore processed per day in 2025 and for the extension of the process plant to include a flotation circuit and dry-stack tailings facility.
• The company intends to provide an update on the Nalunaq project at a capital markets event to be held in Iceland on June 13, 2024.
• The company increased the amount placed in escrow from $680,000 as at Dec. 31, 2023, to $5.70-million as at March 31, 2024, as a prerequisite for mining and construction permits.
• Postperiod, Mr. Duvenhage was appointed as Nalunaq general manager to oversee the operation.

Q1 2024 operational highlights:

• Permitting: The public consultation for the environmental impact assessment (EIA) and social impact assessment (SIA) for Nalunaq closed on March 1, 2024.
• Contracting and procurement: After the rescoping of the work, 81 per cent of the key contracts for the processing plant were concluded and procurement was 81 per cent complete at the end of Q1. The last major contract for structural, mechanical, piping and processing plant equipment installation was awarded to Scott Steel Erectors in early April.
• Engineering: Process plant detailed design and engineering was 86 per cent complete at the end of Q1 based on the updated project scope.
• Construction: Processing plant pad construction is 95 per cent complete, precast foundations received and on site, foundation excavations completed, all plinths installed up to crusher area. Erection of processing plant steel structure is in progress. Overall processing plant construction is 24 per cent complete.
• Mining: Mine rehabilitation was completed in mid-March, and the successful first underground blast at Nalunaq was initiated on March 30, 2024. Development work continues, with rehabilitation of 570L access commenced to establish underground diamond drill location for drilling off the target block extension. Mine equipment, including the second development drill and two ST-7 scoops, are on route to Greenland and awaiting delivery to site as per schedule.
• Exploration: The company has been busy finalizing interpretation and preparing for a busy 2024 field season to include targeted mineral resource growth plans at Nalunaq and copper-nickel-cobalt drilling at Stendalen among other project development programs.

Nalunaq project key performance indicators:

• 60,372 total hours worked during Q1 2024;
• Daily average of 55 people working on site at Nalunaq in Q1 2024;
• Zero lost-time injuries in Q1 2024;
• Ratio of Greenlandic personnel at Nalunaq standing at 53 per cent in Q1 2024.

Outlook:

• Following the announcement that Jaco Crouse would step down as chief financial officer and as a director of the company with effect from June 3, 2024, the recruitment process to appoint a new CFO is well advanced. The company will update the market in due course.
• All engineering for the process plant will be completed during second quarter and the procurement packages will be issued to the market for these.
• Postperiod, activities at Nalunaq continue to progress well, with 80 people now present on site. Construction of the processing plant structure is under way and expected to complete in June, 2024. Management intends to provide a further update on the Nalunaq project at a capital markets day in Iceland, to take place on June 13, 2024.

Exploration activities overview

Gold projects:

• Nalunaq:
  • Additional 75 vein intersections from historical core drilling have been selected using core photography and will be assessed and sampled during Q2 2024.
  • A resource development exploration program has been developed to work alongside continued underground rehabilitation and development activities.
• Nanoq:
  • Further desk-based modelling from the ALS Goldspot interpretation has allowed the company to produce detailed resource drilling plans that can be progressed in 2024/2025.
• Vagar Ridge:
  • The corporation has progressed with the construction of a robust geological and mineralization model to inform future exploration at Vagar as well as designing future exploration options.

Strategic minerals:

• Sava copper belt (Sava/North Sava):
  • Amaroq has continued to assess the results from the 2023 field season alongside recognized subject matter experts in porphyry mineralization as the company develops its 2024 exploration programs.
• Stendalen:
  • Geophysical data reviewed points to the likely feeder zone and other sulphide accumulation areas. Two thousand twenty-four exploration drilling plans have been developed.
• Kobberminebugt:
  • High-resolution geophysical data (MT) have been received and inverted for the Kobberminebugt licence and are currently being reviewed ahead of the development of a 2024 field program.
• Nunarsuit:
  • High-resolution geophysical data (magnetics, gravity and radiometics) have been received for the western sections of the licence and are currently being reviewed ahead of the development of a 2024 field program.
• Regional exploration:
  • The company has continued its desk based regional exploration programs developing further targets to be assessed as part of the 2024 field programs.

Details of conference call

A conference call for analysts and investors will be held today at 4 p.m. BST (3 p.m. GMT, 11 a.m. EST), including a management presentation and Q&A session.

To join the meeting, please register on-line.

Notice of Iceland capital markets day

The company intends to hold a capital markets day in Iceland on June 13, 2024, during which management will provide an update on the Nalunaq project.

Details of registration and remote access will be provided in advance of the session.

Amaroq financial results

The selected financial data herein are extracted from the financial statements for the three months ended March 31, 2024.

About Amaroq Minerals Ltd.

Amaroq Minerals' principal business objectives are the identification, acquisition, exploration and development of gold and strategic metal properties in Greenland. The company's principal asset is a 100-per-cent interest in the Nalunaq project, a development-stage property with an exploitation licence, including the previously operating Nalunaq gold mine. The corporation has a portfolio of gold and strategic metal assets in Southern Greenland covering the two known gold belts in the region. Amaroq Minerals is incorporated under the Canada Business Corporations Act and wholly owns Nalunaq A/S, incorporated under the Greenland Public Companies Act.

Qualified person statement

The technical information presented in this press release has been approved by James Gilbertson, CGeol, vice-president, exploration, for Amaroq Minerals and a chartered geologist with the Geological Society of London, and as such a qualified person as defined by National Instrument 43-101.

We seek Safe Harbor.