Contango ORE Announces Revised Budget for Manh Choh Project

HOUSTON–(BUSINESS WIRE)–Contango ORE, Inc. (“CORE” or the “Company”) (NYSE American: CTGO) today announced that it has received 2022 projected budget updates for Peak Gold, LLC (“Peak Gold JV ”), in which the Company holds a 30% non-controlling interest. Peak Gold JV plans to mine ore from the Main and North Manh Choh deposits located in the State of Alaska (the “Manh Choh Project”).

The company’s quarterly report on Form 10-Q filed with the Securities and Exchange Commission on February 10, 2022 disclosed that the Peak Gold joint venture had approved a $47.9 million spending program for 2022, of which the company would be around $14.4 million. At a meeting of the management committee of Peak Gold JV held on February 14, 2022, Kinross Gold Corporation, the manager of Peak Gold JV, presented updated information which resulted in a decrease in the expenditure program of Peak Gold JV for 2022 at around $26 million. , of which the Company’s share would be approximately $7.8 million. The director explained that the decrease is due to a revised work plan resulting from the recent impacts of inflation, contractors and labor market constraints in Alaska. The manager has determined that it is in the interests of the Peak Gold joint venture that certain activities originally planned for 2022 be delayed pending further analysis of options, including a re-offer process.

Despite the reduced budget, the manager expects the feasibility study for the Peak Gold joint venture to remain on schedule for the second half of 2022 and initial production to take place in 2024.

Rick Van Nieuwenhuyse, President and CEO of the company, said:

“The spending cuts in 2022 reflect the reality that inflation is hitting all sectors of the economy – especially construction. With January’s recent CPI hitting 7.5%, that should come as no surprise. In Alaska, the “State has received several billion dollars in COVID relief funds and an additional $5.6 billion from the recently passed infrastructure bill. Again, it should come as no surprise that competition for construction contractors Gold investors should also not be surprised to see the price of gold rise as well – yesterday, breaking above the $1900 level. eternities and remains a store of value. Reduced spending this year does not significantly delay the delivery of key milestones: feasibility and permitting by the end of 2022, main construction in 2023 and production in 2024. Meanwhile, Continuous contango e to advance our Lucky Shot project with our mining contractor now in the process of refurbishing and expanding the basement to allow the Company to drill test the down dip of the Lucky Shot vein this summer. Please stay tuned for updates on all of our projects.

ABOUT CORE

CORE is a company that engages in exploration in Alaska for gold and associated minerals through a 30% interest in Peak Gold, LLC, which leases approximately 675,000 acres for exploration and development, and through Contango Minerals Alaska, LLC, its wholly-owned subsidiary, which leases approximately 200,000 acres for exploration. The Company also owns the rights to the Lucky Shot, Coleman and War Baby mines, and approximately 16,600 acres of surrounding mining claims located in the Willow mining district approximately 75 miles north of Anchorage, Alaska. Additional information is available on our web page at www.contangoore.com.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements regarding CORE that are intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995, based on CORE’s current expectations and includes statements regarding future results of operations, the quality and nature of the asset base, the assumptions on which the estimates are based, and other expectations, beliefs, plans, objectives, assumptions, strategies or statements regarding events or future performance (often, but not always, using words such as “expects”, “projects”, “anticipates”, “plans”, “estimates”, “potential”, “possible”, “probable” or “intends”, or indicating that certain actions, events or results “may”, “will”, “should” or “could” be taken, occur or be realized). Forward-looking statements are based on current expectations, estimates and projections which involve a number of risks and uncertainties, which could cause actual results to differ materially from those reflected in the statements. These risks include, but are not limited to: risks in the exploration and mining industry (for example, operational risks associated with the exploration and development of mineral reserves; risks and uncertainties related to geology; the speculative nature of the mining industry; the uncertainty of estimates and projections of future production, costs and expenses; the volatility of natural resource prices, including the prices of gold and associated minerals; the existence and extent of commercially mineable minerals in properties acquired by CORE or Peak Gold LLC; the ability to realize the benefits of recent transactions with an affiliate of Kinross; disruption of transactions and the transition management of Peak Gold, LLC to any affiliate of Kinross, including with respect to maintaining business and operational relationships; delays or changes that may iels in plans with respect to exploration or development projects or capital expenditures; interpretation of former prospecting results and estimation of mineral resources; loss of key employees or consultants; health, safety and environmental risks and risks related to weather conditions and other natural disasters); uncertainties as to the availability and cost of financing; CORE’s inability to retain or maintain its relative ownership interest in Peak Gold, LLC; failure to realize the expected value of acquisitions; the failure of our management team to execute on its plans to achieve its objectives; the extent of disruption caused by the COVID-19 outbreak; and the possibility of government policies changing, political developments occurring, or government approvals being delayed or withheld, including as a result of recent U.S. presidential and congressional elections or the inability to obtain mining permits . Additional information about these and other factors that could affect CORE’s exploration program or financial results is included in CORE’s other reports filed with the United States Securities and Exchange Commission. Investors are cautioned that forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from projections contained in forward-looking statements. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. CORE undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions change.

Bonny J. Streater