Northgold intends to list its shares on Nasdaq First North Growth Market Sweden

Northgold in brief
Northgold, founded in 2020, is a gold exploration and development company that holds exploration rights for a number of areas within the under-invested Middle Ostrobothnia Gold Belt (“MOGB”) of central Finland, including the Kopsa project and the nearby Kiimala Trend project (Figure 1), both of which contain mineral resources.

Northgold’s purpose is to move forward through the discovery and advancement of feasible gold mining projects. The Company’s strategy is to bring capital and knowledge into mineral exploration projects that:

• Have low risk due to significant prior investment and discovery.
• Demonstrate potential for high-value mineralization on a district scale.
• Have the opportunity to create added value through further exploration and technical studies.

Northgold focuses on exploration and development of gold deposits that create leverage for the growth of gold as a long-term investment instrument. The Company's business model is to create value by expanding mineral resources through exploration and increasing their probability of extraction through technical studies. Once sufficient mineral resources have been delineated and a positive feasibility study has been completed, the Company ultimately plans to develop its deposits into economically profitable mines.

The projects
Northgold currently has an existing informal gold resource of more than 725,000 ounces (Table 1):

• Kopsa hosts NI 43-101 compliant measured and indicated mineral resources of 13.6 million tonnes (Mt) at 0.81 part per million (ppm) gold and 0.15% copper for 354,200 ounces (oz) gold (Au) or 459,100 oz gold equivalent (AuEq) including copper credits, plus inferred mineral resources of 2.7 Mt at 1.1 ppm gold and 0.2% copper for 69,400 oz Au or 95,500 oz AuEq including copper credits.

• The Ängesneva deposit within the Kiimala Trend project hosts NI 43-101 compliant indicated mineral resources of 3.85 Mt at 1.19 ppm Au for 147,300 oz Au, and another Kiimala Trend prospect (Vesiperä) hosts a non-compliant historical, inferred mineral resource estimate of 0.29 Mt at 2.52 ppm Au for 23,500 oz Au. Copper mineralization was also detected at these Kiimala Trend deposits, but was excluded from these historic resource estimates.

Table 1: Summary of Company mineral resources

Figure 1: Map of the MOGB. The Company’s tenements are outlined in purple. For reference, the main gold resources of the region are indicated: Laivakangas (Laiva Gold Mine, Otso Gold Ltd), Kopsa (Fennia Gold Oy, subsidiary of Northgold AB), Ängesneva (Lakeuden Malmi Oy, subsidiary of Northgold AB) and Hirsikangas (Rupert Resources Ltd). Gold deposits are denoted by yellow circles. Map produced from the GTK MDaE map service on 25.01.2022.

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More information about the exploration sites can be found on the Company's website: www.northgoldab.com.

Taking advantage of investment opportunities in Finland
The Company plans to conduct systematic exploration, including drilling, across its current projects with the goal of expanding the gold resources, discovering new deposits, and continuing the consolidation of the under-invested MOGB.

The gold belt is located within the Brahestad-Ladoga zone (an extension of the VMS trend and the Skellefteå gold line on the Swedish side) and the belt has historically received less than 10 per cent of exploration investments compared to the Swedish side. Furthermore, Finland is consistently a top 10 mining jurisdiction globally, which has recently led to large investments by global gold companies in the country, such as Kinross Gold, Centerra Gold and Agnico Eagle.

The technical team behind Northgold is led by Magnus Minerals Oy, one of Finland's leading geological consulting and project generators, which has existing joint ventures in Finland with e.g. Boliden AB, First Quantum Minerals Limited and Rio Tinto PLC.

The Offering
The motive of the Offering and the Listing is to conduct exploration activities with the goal of expanding mineral resources to over 1,000,000 oz AuEq of NI43-101 compliant resources within 18 months from the first day of trading, as well as to provide exposure to potential new discoveries at the Company’s earlier-stage prospects, based on encouraging geophysical and geochemical results.

The Offering is expected to consist of a new issue of shares corresponding to approximately SEK 40 million and would be directed to the public and institutional investors in both Sweden and Finland. If the planned Offering materializes, the Company’s existing shareholders have committed to lock-up agreements for all current shares in the Company for twelve months starting from the first day of trading.

Mitch Vanderydt, CEO, comments: “Following completion of the IPO planned for the first quarter of 2022, the Company will be well-positioned to promptly recommence drilling at both Kopsa and Kiimala Trend projects during the second quarter of 2022. Both projects have benefited from significant prior investment by previous owners which funded more than 30,000m of historic drilling across both projects more than a decade ago, when gold price assumptions were significantly lower than they are today.”

Advisers
Augment Partners AB is the financial advisor and Advokatfirmaet Schjødt AS, filial is the legal advisor in connection to the Offering and the Listing. Nordnet Bank AB shall act as the selling agent for the Offering.

For additional information, please contact the CEO:
“Mitch Vanderydt”
Mitchell J. Vanderydt, P.Eng, MBA
+1 (416) 524-5678
[email protected]

About Northgold
Northgold is a Swedish gold exploration and development Company with multiple resource-stage projects in the Middle Ostrobothnia Gold Belt (MOGB) of Central Finland, including the Kopsa Gold-Copper project and the Kiimala Trend Gold project. The Company strives to find and extract gold from under-prospected areas in Finland. More information is available on www.northgoldab.com.

Important information
This announcement does not constitute an offer or solicitation to subscribe, buy or otherwise trade in shares or other securities issued by the Company. Any offer to subscribe for the securities included in this announcement will be submitted through a prospectus that will be provided by Northgold after approval and registration by the Swedish Financial Supervisory Authority (Finansinspektionen). This announcement is for marketing purposes only and does not constitute a prospectus for the purposes of Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 (the “Prospectus Regulation”). Investors should not invest in any securities referred to in this announcement except on the basis of information contained in the aforementioned prospectus. Approval and registration by the Swedish Financial Supervisory Authority shall not be considered as an approval of the securities covered by the prospectus.

In any EEA Member State other than Sweden and Finland, this communication is only addressed to and is only directed at qualified investors in that Member State within the meaning of the Prospectus Regulation.

Neither this announcement nor the information contained herein may be published or distributed, directly or indirectly, in or to the United States of America, Australia, Canada, Hong Kong, Japan, New Zealand, Singapore, South Africa, South Korea, Switzerland or any other jurisdiction in which the publication or distribution would be illegal or subject to legal restrictions or require registration or other measures than those that follow from Swedish and Finnish law. The Company has not taken and will not take any measures to allow an offering to the public in any jurisdiction other than Sweden and Finland. The shares of the Company have not been registered and will not be registered under the United States Securities Act of 1933 as amended, and may not be offered, subscribed, exercised, pledged, sold, resold, delivered or transferred, directly or indirectly, in or to the United States of America. Measures in violation of the restrictions may constitute a breach of applicable securities legislation.

In the United Kingdom, this documents only being distributed to, and is only directed at, and any investment or investment activity to which this document relates is available only to, and will be engaged in only with, qualified investors (as defined in the Prospectus Regulation as it forms part of domestic law in the United Kingdom by virtue of the European Union (Withdrawal) Act 2018) and who are (i) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the “Order”) or (ii) high net worth entities, and other persons to whom this announcement may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “Relevant Persons”). This communication must not be acted on or relied on by persons who are not Relevant Persons. Any investment or investment activity to which this communication relates is available only to Relevant Persons and will be engaged in only with Relevant Persons. Persons distributing this communication must satisfy themselves that it is lawful to do so.

Forward-looking statements
This announcement may contain certain forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as “believe,” “expect,” “anticipate,” “intends,” “estimate,” “will,” “may,” “continue”, “should” and similar expressions. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies, and other important factors which are difficult or impossible to predict and are beyond its control. Such risks, uncertainties, contingencies, and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements. The information, opinions and forward-looking statements contained in this communication speak only as at its date and are subject to change without notice. The Company does not undertake any obligation to review, update, confirm or release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this announcement.

The information, estimates, and forward-looking statements contained in this announcement are valid only as of the date of this announcement and are subject to change without notice. The Company does not undertake any obligation to review, update, confirm, or publish any adjustments regarding any forward-looking statements to reflect events that occur or circumstances that arise regarding the content of this notice.

[1] One licence at the Kiimala Trend project, currently containing 147,300 oz Au of the measured and indicated resources and the entirety of the 23,500 oz Au non-compliant resources, is subject to an ongoing public appeals process.