Mr. Patrick Downey reports

OREZONE REPORTS FIRST QUARTER 2024 RESULTS

Orezone Gold Corp. has released its operational and financial results for the first quarter of 2024. The company will host a conference call and webcast on May 14, 2024, commencing at 8 a.m. PT to discuss its Q1 2024 results. Additional details are provided at the end of this press release.

All dollar amounts are in United States dollars unless otherwise stated.

Patrick Downey, president and chief executive officer, commented: "Our Bombore mine had another quarter of consistent performance, delivering 30,139 ounces of gold production, mine earnings of $27-million and positive free cash flow. In addition, we successfully commissioned the powerline connection to the national grid and substantially completed the construction of the MV3 resettlement site which will open mining access to the Siga East deposit in the third quarter of 2024.

"Importantly, we continue to reinvest in the Bombore mine and, after a careful review of available financing alternatives, the company has decided to pursue its phase II Hard Rock expansion in two stages to better align capital requirements with funding sources. We have now received a debt proposal for the first stage of the expansion from our senior lender, Coris Bank, which we expect to finalize in the very near future."

• Safety: continued strong safety performance in Q1 2024 with 1.41 million hours worked without a lost-time injury;
• Debt reduction: principal repayment of 3.0 billion West African francs ($5.0-million) in Q1 2024 on the company's senior loans with Coris Bank International;
• Liquidity: on May 10, 2024, the company closed and drew down on a 12.0-billion-West-African-franc (approximately $20-million) bridge loan with Coris Bank in order to improve the company's cash position. The company intends to refinance the bridge loan with the project loan for its phase II hard rock expansion with Coris Bank expected in Q3 2024.

The phase II Hard Rock expansion

A hard rock plant, to complement the existing phase I oxide plant, is required to process the fresh rock and lower transition mineral reserves of the Bombore orebody.

The company originally contemplated constructing a 4.4-million-tonne-per-annum (Mtpa) hard rock plant in a single stage as outlined in its 2023 feasibility study. Following a recent review of available financing sources, the company has decided to complete this brownfield expansion in two stages to better manage its capital requirements. Stage 1 will consist of an initial 2.5 Mtpa (million tonne per annum) hard rock plant, with a future stage 2 expansion increasing hard rock plant throughput to 5.0 Mtpa to 7.0 Mtpa.

A preliminary capital cost for this initial 2.5 Mtpa hard rock plant is estimated at $80-million, significantly less than the $167.5-million estimated for the 4.4 Mtpa hard rock plant. The company expects to finance the construction costs of this stage 1 hard rock plant (rescoped phase II Hard Rock expansion) primarily through senior debt and cash flow generated from its phase I oxide operations during the construction period.

The company has significantly advanced discussions with Coris Bank for additional project debt and anticipates concluding a binding debt commitment in June, 2024. Based on forecasted construction and key equipment timelines, the company expects first gold from the phase II Hard Rock expansion to be achieved in late 2025.

The company intends to provide more detailed guidance for its phase II Hard Rock expansion later this year after the company has secured a binding debt commitment and Board approval to proceed with the expansion.

Bombore production results

Gold production in Q1 2024 was 30,139 ounces, a decline of 27 per cent from the 41,301 ounces produced in Q1 2023. The lower gold production is attributable to an 18-per-cent decrease in head grades, a 6-per-cent decline in plant throughput and a 3-per-cent decrease in plant recoveries. The better head grade achieved in Q1 2023 was primarily the result of processing of high-grade stockpiles accumulated during the phase I construction which have now been fully depleted. Mill availability in Q1 2024 was impacted by the commissioning of grid power to site and from the shortage of power from the national grid toward the end of the quarter. In addition, as mining deepens in the certain pits, the quantity of transition ore has started to increase. The presence of transition ore results in slightly lower metallurgical recoveries, lower plant throughput and additional plant maintenance due to the harder nature of the ore.

Plant throughput, head grades and recoveries are expected to improve from a greater blend of oxide ore once mining commences at Siga East in Q3 2024.

Bombore operating costs

AISC (all-in sustaining costs) per gold ounce sold in Q1 2024 was $1,324, a 4--per cent increase from the $926 per ounce sold in Q1 2023. The higher AISC is primarily the result of: (a) lower Q1 2024 gold production and sales as explained herein; (b) greater per ounce royalty costs from new royalty rates that took effect in October, 2023, and from a higher realized selling price; and (c) increased mining costs.

Cash cost per ore tonne processed in Q1 2024 was $21.05 per tonne, an increase of 11 per cent from the $18.96 per tonne in Q1 2023. The higher cash cost in Q1 2024 was predominantly due to increased mining and site G&A (general and administrative) costs, and from fewer ore tonnes processed. Mining costs have increased as lower benches are mined resulting in longer hauls and more transition material that requires drill-and-blast prior to excavation. In addition, unit mining costs have increased from a higher strip ratio and more management fees from the mobilization of a second mining contractor in July, 2023, to supplement material movement of the main mining contractor. Site G&A costs reflect greater spending for security as the company expands its operations into the southern portion of the mining permit.

Processing costs per ore tonne has remained relatively stable from $9.21 per tonne in Q1 2023 to $9.24 per tonne in Q1 2024. Unit processing costs were expected to decline in Q1 2024 from 2023 levels upon the introduction of grid power to the Bombore mine at the end of January, 2024; however, the power costs savings from using grid power has been offset by greater blend of transition ore requiring higher per-tonne consumption of power, grinding media and main reagents; more plant maintenance to address higher equipment wear; and from lower plant throughput resulting in fixed processing costs being absorbed over fewer tonnes in Q1 2024. Furthermore, the mine relied on more self generated power beginning in March, 2024, from lower-than-expected availability of grid power as the dry season impacted the contributions of hydropower to the national grid.

Bombore growth capital projects

Grid power connection

The commissioning of the powerline to connect Bombore to Burkina Faso's national energy grid commenced in January, 2024, and was successfully energized by the end of the same month. As of March 31, 2024, the company has incurred costs of $19.3-million for the grid power connection, of which $1.1-million was incurred in Q1 2024.

Resettlement action plan (RAP) phases II and III

RAP phases II and III involve the construction of three new resettlement communities (MV3, MV2 and BV2) in order to relocate households currently residing within the southern half of the Bombore mining permit. The company has sequenced MV3 first in order to gain access to mining areas that are currently contemplated in the 2024 mine plan.

Construction of MV3 was substantially completed in April, 2024, with the company now organizing with local leaders and residents to relocate families into their new resettlement homes later in Q2 2024. In parallel, the company has commenced earthworks for the next resettlement site (MV2) and awarded contracts to local companies to begin construction shortly.

As of March 31, 2024, the company has incurred project-to-date costs of $13.5-million for RAP phases II and III, of which $3.1-million was incurred in Q1 2024.

Conference call and webcast

The condensed consolidated interim financial statements and management's discussion and analysis are available at the company website and on the company's profile on SEDAR+. Orezone will host a conference call and audio webcast to discuss 2024 first quarter results on May 14, 2024, at 8 a.m. PT (11 a.m. ET).

Webcast

Date:  Tuesday, May 14, 2024

Time:  8 a.m. Pacific Time (11 a.m. Eastern Time)

Conference call

Toll-free in U.S. and Canada:   1-800-715-9871

International callers:   646-307-1963

Event ID:  2084420

Qualified persons

The scientific and technical information in this news release was reviewed and approved by Dr. Pascal Marquis, Geo, senior vice-president of exploration, and Rob Henderson, PEng, vice-president of technical services, both of whom are qualified persons as defined under National Instrument 43-101 -- Standards of Disclosure for Mineral Projects.

About Orezone Gold Corp.

Orezone Gold is a West African gold producer engaged in mining, developing and exploring its 90-per-cent-owned, flagship Bombore gold mine in Burkina Faso. The Bombore mine achieved commercial production on its oxide operations on Dec. 1, 2022, and is now focused on its staged hardrock expansion that is expected to materially increase annual and life-of-mine gold production from the processing of hardrock mineral reserves. Orezone is led by an experienced team focused on social responsibility and sustainability with a proven record in project construction and operations, financings, capital markets, and mergers and acquisitions.

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