Aris Gold Announces Q2 2021 Financial and Operating Results

VANCOUVER, BC, Aug. 11, 2021 /PRNewswire/ - Aris Gold Corporation (Aris Gold or the Company) (TSX: ARIS) (OTCQX: ALLXF) reports financial and operating results for the three and six months ended June 30, 2021 (Q2 2021 and H1 2021, respectively). All amounts are in US dollars, unless otherwise indicated.

Q2 2021 Highlights

During Q2 2021 Aris Gold continued to advance the Lower Mine project at the Marmato mine in Colombia, with notable developments including:

• In April, Aris Gold awarded the engineering, procurement and construction management contract to Wood PLC, a global leader in consulting and engineering with extensive experience delivering mining projects across Latin America.
  
  
• In April, Aris Gold received $34 million of the $110 million precious metals purchase agreement stream financing from Wheaton Precious Metals International Ltd (WPM). The remaining $76 million will be received in three additional installments as the development of the Lower Mine progresses.
  
  
• In May, Aris Gold submitted the updated Environmental Management Plan (PMA) to the regional environmental authority, Corpocaldas, which addresses the environmental impacts of the Lower Mine development.
  
  
• Aris Gold continued with the 35,000-metre exploration drill program at Marmato. Consistent with previous results, drilling continued to show high-grade mineralization over broad widths demonstrating potential to extend the 13-year mine life outlined in the Company's 2020 technical report for the Marmato project. As of August 2021, this drill program is approximately 85% complete.
  
  
• Aris Gold strengthened its operating and construction teams at Marmato with the addition of two senior operations executives in Colombia.
  
  
• Expenditures of $8.0 million incurred for the Lower Mine, including $3.2 million related to the 35,000-metre drilling campaign and $4.8 million related to early works, land acquisitions, technical studies and other related costs.
  
  
• The Marmato Upper Mine performance optimization activities included a comprehensive review of operations management, administrative and organizational structures. The implementation of several initiatives is now under way, including a program that prioritizes the needs of the underground mine workers with preferred access to accommodation at the site camp.

In addition, Aris Gold launched an initial 10,000-metre drill program at the Juby project in Q2 2021. Juby is an advanced exploration stage gold project in the Abitibi greenstone belt of Ontario, Canada. The objective of the drill program is to expand the known open pit mineral resources and test areas that may host higher-grade zones. Two rigs are currently on site and the drilling program is expected to be completed by the end of August 2021.

Q2 2021 and H1 2021 Financial and Operating Highlights

In Q2 and H1 2021, Aris Gold recorded net earnings of $5.3 million and a net loss of $3.1 million, respectively. H1 2021 revenue was $24.9 million, 47% higher than the same period in 2020, primarily driven by a 31% increase in gold ounces sold to 13,505 ounces. Similarly, for Q2 2021, revenue was $11.2 million, 75% higher than Q2 2020, primarily driven by a 63% increase in gold ounces sold to 6,093 ounces.

Financial and operating highlights

Aris Gold's Q2 2021 financial statements and related MD&A are available on SEDAR and in the Investors section of Aris Gold's website here.

Outlook

Management is planning and implementing several activities for the remainder of 2021 focused on performance optimization in the Marmato Upper Mine, while also completing several early work projects in preparation for Lower Mine construction. Highlights of the 2021 optimization program include:

• Appointment of a new, highly experienced senior operations team and reorganized management reporting structures.
  
  
• A comprehensive workforce review and rationalization program, which included the implementation of a new mine shift schedule, and provides workers with preferred access to accommodation at the site camp and other incentives to relocate to the Marmato community.
  
  
• Introduction of 3D mine planning and modelling to improve access to high-grade material, improve grade control and reduce dilution. To accelerate training, this project is being implemented with the assistance of specialist technical consultants.
  
  
• Introduction of new cost management programs including tightly controlled purchasing and procurement processes.
  
  
• Implementing enterprise resource planning software, or ERP, to improve cost management with timely reporting, and other supply chain and financial management tools.
  
  
• Investing in plant upgrades, new equipment, and enhanced maintenance programs to increase mine production and milling rates.

About Aris Gold

Aris Gold is a Canadian mining company listed on the TSX under the symbol ARIS and on the OTCQX under the symbol ALLXF. The Company is led by an executive team with a demonstrated track record of creating value through building globally relevant gold mining companies. Aris Gold operates the Marmato mine in Colombia, where a modernization and expansion program is under way, and the Juby project, an advanced exploration stage gold project in the Abitibi greenstone belt of Ontario, Canada. Aris Gold plans to pursue acquisition and other growth opportunities to unlock value creation from scale and diversification.

Additional information on Aris Gold can be found at www.arisgold.com and www.sedar.com.

Forward-looking Information

This news release contains "forward-looking information" or forward-looking statements" within the meaning of Canadian securities legislation. All statements included herein, other than statements of historical fact, including without limitation statements relating to Aris Gold's growth strategy, improvements to the operations of the Marmato Upper Mine, receipt of the remaining funds under the stream financing, extension of the mine life at Marmato through advancing the Lower Mine project and advancing the Marmato Upper Mine and statements made under the heading "Outlook" are forward-looking. Generally, the forward-looking information and forward looking statements can be identified by the use of forward looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", "will continue" or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Statements concerning mineral resource estimates may also be deemed to constitute forward looking information to the extent that they involve estimates of the mineralization that will be encountered. The material factors or assumptions used to develop forward looking information or statements are disclosed throughout this presentation.

Forward looking information and forward looking statements, while based on management's best estimates and assumptions, are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Aris Gold to be materially different from those expressed or implied by such forward-looking information or forward looking statements, including but not limited to: the ability of the Aris Gold management team to successfully integrate with the current operations, risks related to international operations, risks related to general economic conditions, uncertainties relating to operations during the COVID-19 pandemic, actual results of current exploration activities, availability of quality assets that will add scale, diversification and complement Aris Gold's growth trajectory; changes in project parameters as plans continue to be refined; fluctuations in prices of metals including gold; the ability to convert mineral resources to mineral reserves; fluctuations in foreign currency exchange rates, increases in market prices of mining consumables, risks associated with holding derivative instruments (such as credit risks, market liquidity risk and mark-to-market risk), possible variations in mineral reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; changes in national and local government legislation, taxation, controls, regulations, regulations and political or economic developments in Canada or Colombia, accidents and operations, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the mining industry; delays in obtaining governmental approvals including obtaining required environmental and other licenses, or in the completion of development or construction activities, changes in national and local government regulation of mining operations, tax rules and regulations, and political and economic developments in countries in which the Company operates, as well as those factors discussed in the section entitled "Risk Factors" in Aris Gold's most recent AIF available on SEDAR at www.sedar.com.

Although Aris Gold has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information and forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information or statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information or statements. The Company has and continues to disclose in its Management's Discussion and Analysis and other publicly filed documents, changes to material factors or assumptions underlying the forward-looking information and forward-looking statements and to the validity of the information, in the period the changes occur. The forward-looking statements and forward-looking information are made as of the date hereof and Aris Gold disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements or forward-looking information contained herein to reflect future results. Accordingly, readers should not place undue reliance on forward-looking statements and information.

This announcement does not constitute an offer of securities for sale in the United States, nor may any securities referred to herein be offered or sold in the United States absent registration or an exemption from registration as provided in the U.S. Securities Act of 1933 as amended (the "Securities Act") and the rules and regulations thereunder. The securities referred to herein have not been registered pursuant to the Securities Act and there is no intention to register any of the securities in the United States or to conduct a public offering of securities in the United States.

SOURCE Aris Gold Corporation