Mr. Larry Phillips reports

COMPASS GOLD SIGNS MOU FOR THE CONSTRUCTION OF A GRAVITY CONCENTRATION PLANT AT THE MASSALA GOLD PROJECT, MALI

Compass Gold Corp. has entered into a non-binding memorandum of understanding (MOU) with Mali-based Industrie Malienne Pour L'Agriculture (IMAGRI or the partner). The MOU establishes a framework to advance the construction of a modular gravity concentration plant capable of producing a saleable gold concentrate by processing material from the company's 100-per-cent-owned Massala small mine project in southern Mali, providing a potential near-term pathway toward gold production.

"While we await the issuance of our small mine permit, our team remains firmly focused on advancing the work necessary to move Massala into gold production as quickly and responsibly as possible," commented Larry Phillips, president and chief executive officer of Compass. "The signing of this MOU demonstrates our commitment to taking concrete steps now to position Compass to move quickly once the permit is received. The proposed gravity concentration plant is designed around a simple and conventional processing approach, while providing flexibility to scale or relocate the operation as we identify subsequent small mine opportunities within our expansive land package.

"We are particularly pleased to be working with IMAGRI, a well-respected Malian company with more than 25 years of experience and a demonstrated history of successfully delivering projects in Mali and neighbouring West African countries. In evaluating our plant construction options, we considered proposals from other contractors that would have required advance payments exceeding $5-million (U.S.) before the commencement of production. The proposed arrangement with IMAGRI offers a substantially more capital-efficient pathway to production, significantly reducing our anticipated upfront funding requirements. Additionally, IMAGRI's extensive local knowledge, technical capabilities and proven track record make them a valuable partner as we work toward bringing Massala into production."

MOU highlights

• A simple, modular and scalable processing solution is proposed with a relatively straightforward flowsheet comprising an apron feeder, crushing module, scrubber, screening module, conveyors, jig modules and concentrator module;
• IMAGRI to supply and deploy the principal gravity processing plant and provide related installation, commissioning, maintenance and support services; IMAGRI has also proposed providing mining services for the project;
• Proposed facility is envisioned to process approximately 1,000 tonnes per day of mineralized material, subject to continuing engineering and technical studies, targeting 90-per-cent operating availability and an initial 60-per-cent gold recovery;
• Parties intend to negotiate a definitive agreement, covering scope of work, construction schedule, capital requirements, operating responsibilities and other commercial terms by year-end 2026.

Under the terms of the MOU, the parties will work together to advance the design, engineering and planning for the proposed gravity concentration plant, with the aim of signing a definitive agreement by the end of 2026. The definitive agreement is expected to address plant construction, commissioning and a proposed mining services operating framework for Massala.

About Compass Gold Corp.

Compass Gold is a mineral exploration company focused on advancing its flagship Massala gold project, which is located within its large, highly prospective land package (the Sikasso property) in southern Mali. The Sikasso property includes three permit areas totalling approximately 900 square kilometres in a region hosting several multimillion-ounce gold deposits, including Morila, Syama, Kalana and Komana.

Compass's Mali-based technical team, led in the field by Dr. Madani Diallo and overseen by Dr. Sandy Archibald, PGeo, is executing the current exploration program, following up on numerous anomalies first outlined in Dr. Archibald's August, 2017, National Instrument 43-101 technical report on the Sikasso property.

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