Mr. Marc Cernovitch reports

LAKE VICTORIA GOLD REACHES AGREEMENT IN PRINCIPLE WITH GOVERNMENT OF TANZANIA ON FREE CARRIED INTEREST FRAMEWORK

Lake Victoria Gold Ltd.'s Tanzanian subsidiary, Tembo Gold Ltd., has reached an agreement in principle with the government of Tanzania on the major issues surrounding the government's statutory free carried interest in the Imwelo gold project.

The statutory negotiation meeting was held on Sept. 10, 2025, in Arusha, Tanzania, and attended by Marc Cernovitch, president and chief executive officer of Lake Victoria Gold, accompanied by legal and financial advisers from Velma Law & Crowe, alongside the government negotiation team from the Ministry of Minerals. The meeting was productive and resulted in agreement in principle on the central issues, including the government's free carried interest in mining projects as required by Tanzanian law.

Tanzania's mining participation framework

Under Tanzania's Mining Act (Cap. 123) and the Mining (State Participation) Regulations, 2022, the government is entitled to a minimum 16-per-cent non-dilutable free carried interest in all gold mining projects. This ensures that the people of Tanzania participate directly in the ownership of their natural resources.

In addition to equity ownership, the fiscal regime includes:

• A 6-per-cent royalty on gold production, plus a 1-per-cent export levy;
• A 4-per-cent reduced royalty rate when minerals are refined within Tanzania;
• A requirement that 20 per cent of production be refined and sold in country, with the Bank of Tanzania purchasing that portion at market prices.

These measures are designed to maximize local beneficiation, strengthen national gold reserves and ensure that Tanzanians share equitably in the benefits of mining.

Formation of a joint venture company

As part of the process, Lake Victoria Gold and the government will establish a new joint venture company (JVCo) to hold and operate the Imwelo mining licence. The JVCo structure, governed by a framework agreement and shareholders' agreement, provides a transparent and durable foundation for collaboration between the company and the government.

Marc Cernovitch, president and chief executive officer of Lake Victoria Gold, commented: "Reaching agreement in principle with the Ministry of Minerals marks an important milestone for Lake Victoria Gold and for Tanzania. The government's participation ensures that the Imwelo project will be developed in alignment with national priorities, including responsible mining, in-country refining and long-term value creation for all stakeholders. While final approvals and details remain to be completed, this first step lays the groundwork for a constructive partnership through the new joint venture company. We look forward to working alongside the government of Tanzania to bring Imwelo into production responsibly and efficiently."

Simon Benstead, executive chairman of Lake Victoria Gold, added: "This agreement in principle is a transformative development for Lake Victoria Gold. With the recent closing of our financing, the company is well positioned to advance the Imwelo project toward construction and production. We are excited to move forward in partnership with the government of Tanzania and to deliver on our goal of building a responsible, cash-flowing gold operation in the near term."

With this agreement in principle, Lake Victoria Gold has cleared one of the most significant regulatory hurdles on the pathway to production. The company now moves forward with strengthened alignment with the government of Tanzania, a financing platform in place, and a clear road map toward construction and near-term cash flow from Imwelo. This milestone substantially derisks the project and sets the stage for long-term value creation for both shareholders and the people of Tanzania.

The agreement in principle remains subject to review and approval at higher levels of the Tanzanian government, as well as the finalization of detailed terms. Lake Victoria Gold will disclose the final agreed terms once a binding agreement has been executed.

About Lake Victoria Gold Ltd.

Lake Victoria Gold is a rapidly growing gold exploration and development company listed on the TSX Venture Exchange under the symbol LVG. Leveraging its unique position and experience, the company is principally focused on growth and consolidation in the highly prolific and prospective Lake Victoria goldfield in Tanzania.

The company has a 100-per-cent interest in the Tembo project which has over 50,000 metres of drilling and is located adjacent to Barrick's Bulyanhulu mine. The company also holds a 100-per-cent interest in the Imwelo project which is a fully permitted gold project west of AngloGold Ashanti's Geita gold mine. With historical resource estimates and a 2021 prefeasibility study, the project is fully permitted for mine construction and production, positioning it as a near-term development opportunity.

Lake Victoria has assembled a highly experienced team with a record of developing, financing and operating mining projects in Africa with management, directors and partners owning more than 60 per cent of the shares. Notably, the company is grateful for the validation that comes with the support and equity investment from Barrick and recent strategic partnership with Taifa Group.

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