Mr. Eldur Olafsson reports

Q2 2024 FINANCIAL RESULTS

Amaroq Minerals Ltd. has released its Q2 (second quarter) 2024 financials. A conference call for analysts and investors will be held today at 2 p.m. BST (1 p.m. GMT) (9 a.m. EST), details of which can be found in this news release.

Eldur Olafsson, chief executive officer of Amaroq, commented:

"Progress at Nalunaq is advancing smoothly and we remain on track to achieve first gold production later this year. The completion of the main building works marks a significant milestone and we are now focused on installing the key components of the processing plant. A standout achievement this quarter was receiving approval from the Greenlandic government for our environmental and social impact assessments. Upholding the highest standards of environmental and social responsibility is fundamental to our mission as we bring Nalunaq into production.

"Our exploration efforts across our gold and strategic minerals targets are also progressing well. At Nalunaq, the Target block resource expansion program is under way, with drill crews now fully mobilized on site. At Stendalen, we have successfully completed the camp construction and drilling operations have begun, informed by promising results from recently completed ground geophysics.

"Additionally, we are pleased to announce a significant postperiod development: the successful arrangement of a substantial increase and extension of our debt financing package with Landsbankinn. This new arrangement simplifies the structure of the facility while securing more favorable rates."

Q2 2024 corporate highlights:

• Amaroq group liquidity of $62.2-million, consisting of cash balances, undrawn revolving credit facilities, undrawn revolving credit overrun facility less trade payables ($96.3-million as of March 31, 2024);
• Gold business working capital before convertible note liability of $50.5-million that includes prepaid contractors on the Nalunaq project of $19.6-million as of June 30, 2024 ($78.2-million that includes prepaid contractors on the Nalunaq project of $17.5-million as of March 31, 2024);
• The Gardaq joint venture that comprises the strategic minerals business has available liquidity of $13.5-million as of June 30, 2024 ($17-million as of March 31, 2023);
• Amaroq continues to develop opportunities in servicing and hydro to enhance local procurement options and support the transition toward cleaner energy sources.

Postperiod highlights:

• In July, 2024, the company agreed heads of terms, subject to final documentation, with Landsbankinn for $35-million (U.S.) in three revolving credit facilities, securing a substantial increase and extension to its current debt facilities.
• On Aug. 6, 2024, Ellert Arnarson joined the company as chief financial officer.

Q2 2024 operational highlights:

• Permitting: The government of Greenland approved the environmental impact assessment (EIA) and social impact assessment (SIA) for the Nalunaq project in June, 2024. The company is now working with stakeholders on the impact benefit agreement (IBA), which it aims to have in place by the end of the year.
• Contracting and procurement: Procurement of all key contract packages is 92 per cent complete. Contracts for the flotation recovery and dry stack tailings section (phase 2) building and equipment have commenced and will be completed by the end of Q3 (third quarter) 2024. The remaining contracts are also expected to be concluded in Q3 2024.
• Engineering: Process plant detail design and engineering for phase 1 was 96 per cent complete at the end of Q2, with all packages issued to the market. Engineering for phase 2 of the process plant building has commenced and will be completed by the end of Q3 2024.
• Construction: Plant pad earthworks and civil construction was 100 per cent complete. The plant building structural steel is 100 per cent complete and cladding is 94 per cent complete. Mechanical installation of the crushing circuit is 68 per cent complete, and installation of the civil foundations for the retaining walls, stockpile reclaimer and stacker conveyor has commenced. The TMM and light-vehicle workshop construction is complete, and electrical installation was 78 per cent complete. Foundations for the new accommodation unit were 25 per cent complete. Overall process plant construction is 56 per cent complete.
• Mining: Mine development has progressed as new equipment has arrived to site, including two new ST7 scoops and one new Jumbo drill. The ramp has been completed to 732 metres (m) and the first ore round was blasted on June 30. Amaroq has continued the sump development, which is 75 per cent complete. Both mine arc refuge stations have been commissioned. The leaky feeder communication system was installed from 300 to the 720 millilitres (ml). Construction of the underground main heating system on 300 ml portal has commenced. The exhaust raise fans for the Target block have been commissioned in preparation for the development of the exploration drift as drilling is planned to commence in September.
• Nalunaq exploration: All additional 75 vein sampling from historical core housed at Nalunaq has been completed and submitted to ALS for assaying. Drill crews and equipment for surface exploration drilling targeting expanded mineralization at the Target block, have been mobilized to site.
• Strategic minerals: Amaroq has mobilized three drill rigs and a semi-permanent 40-person camp in order to enact an expanded drilling program at Stendalen, which has now commenced.

Nalunaq project KPIs (key performance indicators):

• 103,680 total hours worked during Q2 2024;
• Daily average of 96 people working on site at Nalunaq in Q2 2024;
• Ratio of Greenlandic personnel at Nalunaq was 51 per cent in Q2 2024.

Outlook:

• Activities at Nalunaq remain on track to deliver first gold in Q4 2024. An additional accommodation wing is due to be added in Q3 2024 to accommodate up to 120 people on site.
• The Ni-Cu (nickel-copper) exploration program continues at the Stendalen copper-nickel discovery with an expanded drilling program targeting the sulphide zone.

Exploration activities overview

Gold projects

Nalunaq:

• All additional 75 vein sampling from historical core housed at Nalunaq has been completed and submitted to ALS for assaying.
• Drill crews and equipment for surface exploration drilling to enlarge the mineralized zone at the Target block have mobilized to site.
• Following completion of the underground rehabilitation, exploration will now be conducted from underground, as well as surface. The 2024 exploration program aims to provide additional information and data on the Mountain block and Target block extensions to the main vein, as well as assessing continuity and form of the 75 vein. Underground drilling locations have been designed and a rig is to be mobilized for operations in Q4 2024.

Vagar and surrounding areas:

• Amaroq intends to continue its target generation programs in the regions near to Nalunaq and Vagar licences.

Strategic minerals

Sava copper belt (Sava/North Sava):

• The geological field team has commenced a program of mapping and sampling across the copper belt area assessing both potential porphyry and magmatic Cu-Ni targets.
• Following the identification of a copper/molybdenum porphyry system at Target West, the company intends to continue additional porphyry target generation across the Sava and North Sava licences, as well as regionally across the copper belt targeting areas that hold the greatest potential to host porphyry related systems.
• Further assessment of the prospectivity of the epithermal copper/gold mineralization at Target North is also planned.

Stendalen:

• Following the new copper-nickel discovery made at Stendalen, Amaroq has mobilized three drill rigs and a semi-permanent camp to site to facilitate an expanded drilling program.
• Following the successful completion of a ground geophysics program, a more robust conductive target within the interpreted feeder zone has been defined which will be the focus of the 2024 drilling program, which commenced postperiod in August.
• In addition, the company has commenced planning for a downhole geophysics program to provide further confidence to the overall extend and geometry of the intrusion and associated sulphide mineralization.
• Leveraging off the data from this discovery, ground studies will also assess the potential for further target areas regionally.

Kobberminebugt:

• Amaroq continues to review the results of the detailed geophysical program conducted over the Kobberminebugt licence in 2023. Specific geophysical targets will be interpreted and target generation activities will take place during summer of 2024.

Nunarsuit:

• Geophysical data collected during 2023 are currently being fully assessed and Amaroq aims to conduct a targeted field program on the licence during summer of 2024. Initial targets will include specific geophysical anomalies, as well as outcropping niobium-bearing pegmatites.

Details of conference call

A conference call for analysts and investors will be held today at 2 p.m. BST (1 p.m. GMT) (9 a.m. EST), including a management presentation and Q&A (question-and-answer) session.

To join the meeting, please register on-line.

Amaroq financial results

Selected financial data in the attached tables are extracted from the financial statements for the six months ended June 30, 2024.

Conditional awards under RSU (restricted share unit) plan

Amaroq further announces that it made a conditional award under the RSU plan to Mr. Arnarson, whose appointment as CFO became effective on Aug. 6, 2024. The award consists of a conditional right to receive value if the future performance targets, applicable to the award, are met. Any value to which the participant is eligible in respect of the award will be granted as restricted share units, with each RSU entitling the participant to receive common shares in the company. Each RSU will be granted under, and governed in accordance with, the rules of the company's restricted share unit plan available on the company's website.

The details of the award are as follows:

• Initial price: share price on the date of appointment being $1.04;
• Hurdle rate: 10 per cent per annum above the initial price;
• Pool: value equal to 10 per cent of the growth in value above the hurdle rate;
• Individual allocation: 12 per cent of the pool;
• Measurement date: Dec. 31, 2025, a single measurement date based on the three-month average share price;
• RSU grant date: Q1 (first quarter) 2026;
• Vesting: 100 per cent vests Q1 2027.

About Amaroq Minerals Ltd.

Amaroq Minerals' principal business objectives are the identification, acquisition, exploration and development of gold and strategic metal properties in southern Greenland. The company's principal asset is a 100-per-cent interest in the past-producing Nalunaq gold mine, which is due to go into production toward the end of 2024. The company has a portfolio of gold and strategic metal assets in southern Greenland covering the two known gold belts in the region, as well as advanced exploration projects at Stendalen and the Sava copper belt, exploring for strategic metals, such as copper, nickel, rare earths and other minerals. Amaroq Minerals is continued under the Business Corporations Act (Ontario) and wholly owns Nalunaq A/S, incorporated under the Greenland Public Companies Act.

Qualified person statement

The technical information presented in this news release has been approved by James Gilbertson, CGeol, vice-president of 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.

The attached financial statements have been prepared by management of Amaroq and have not been reviewed by the auditor.