Ascot Resources Announces 2020 First Quarter Financial Results

Ascot Resources Ltd. announces the Company’s unaudited financial results for the three months ended March 31, 2020 (“Q1 2020”). For details of the unaudited condensed interim consolidated financial statements and Management’s Discussion and Analysis for the three months ended March 31, 2020, please see the Company’s filings on SEDAR (www.sedar.com).

All amounts herein are reported in $000s of Canadian dollars (“C$”) unless otherwise specified.

Q1 2020 AND RECENT HIGHLIGHTS

• On January 15, 2020, the Company announced an updated Resource Estimate for the Premier Gold Project including the Silver Coin, Big Missouri and Premier deposits, representing a 60% increase in the Indicated Category (see News Release dated January 15, 2020);
• On February 25, 2020, the Company closed its non-brokered private placement (the “Private Placement”) of 5,126,250 flow-through shares at a price of $0.98 per Flow-Through Share, and 8,170,588 common shares at a price of $0.64 per common share for aggregate gross proceeds of $10.3 million;
• On April 15, 2020, the Company reported robust feasibility study results with after-tax internal rate of return (“IRR”) of 51%. The feasibility study was prepared in accordance with an NI 43-101 technical report for Ascot’s 100% owned Premier and Red Mountain gold projects. The feasibility study outlines a low capital restart plan to feed the Premier mill at 2500 tonnes per day to produce approximately 1.1 million ounces of gold and 3.0 million ounces of silver over eight years.

Ascot’s President and CEO, Derek White commented, “Ascot continues to work towards re-starting the Premier mine. In the first quarter of 2020, we were very pleased to announce results from an independent feasibility study, highlighting a low capex and significant IRR of 51%. Financial support from our shareholders via a private placement in February provided Ascot with the necessary funds for key activities in 2020.”

FINANCIAL RESULTS – THREE MONTHS ENDED MARCH 31, 2020

The Company reported a net loss of $3,484 for Q1 2020 compared to $1,336 for the same quarter in 2019. Higher net loss for Q1 2020 was mainly due to $842 higher stock-based compensation charge and $1,081 foreign exchange loss. Higher stock-based compensation for Q1 2020 was a result of the grant of stock options, deferred share units (“DSU”) and restricted share units (“RSU”). There were no stock options, DSUs and RSUs issued in Q1 2019. Foreign exchange loss for Q1 2020 was due to the effect of strengthened U.S. Dollar on the U.S. Dollar denominated convertible note with Sprott Private Resource Lending (Collector), LP and Resource Income Partners Limited Partnership.

LIQUIDITY AND CAPITAL RESOURCES

In February 2020, the Company raised $10,253 through private placement to fund its 2020 exploration program and other corporate expenditures. As at March 31, 2020 the Company had a cash and cash equivalents balance of $11,329 and working capital deficit of $5,671. Included in cash and cash equivalents is $5,024, which is required to be spent on flow-through expenditures prior to December 31, 2021. Although the Company has sufficient funding to meet its obligations in 2020, the Company needs to secure additional funding for the development of its Premier Gold Project and repayment of its convertible note, which is due in January 2021.

ANNUAL GENERAL MEETING UPDATE

The Canadian Securities Administrators (“CSA”) and the Toronto Stock Exchange (“TSX”) have published temporary blanket relief measures, including timeframe extensions for holding annual shareholder meetings as a result of the COVID-19 pandemic. The TSX is now permitting issuers to hold their 2020 AGM on any date up to and including December 31, 2020. Ascot’s Board has determined that it will hold its 2020 Annual General Meeting (“AGM”) in the second half of 2020. Management continues to monitor the COVID-19 situation and details for the AGM will be communicated at a later date.

Qualified Persons and NI 43-101 Disclosure

John Kiernan, P.Eng., Chief Operating Officer of the Company is the Company’s Qualified Person as defined by National Instrument 43-101 and has reviewed and approved the technical contents of this news release.

ON BEHALF OF THE BOARD OF DIRECTORS OF

ASCOT RESOURCES LTD.

“Derek C. White”, President and CEO

For further information contact:
Kristina Howe
VP, Investor Relations
778-725-1060 / khowe@ascotgold.com

About Ascot Resources Ltd.

Ascot is a Canadian-based exploration and development company focused on re-starting the past producing historic Premier gold mine, located in British Columbia’s Golden Triangle. The Company continues to define high-grade resources for underground mining with the near-term goal of converting the underground resources into reserves, while continuing to explore nearby targets on its Premier/Dilworth and Silver Coin properties (collectively referred to as the Premier Gold Project). Ascot’s acquisition of IDM Mining added the high-grade gold and silver Red Mountain Project to its portfolio and positions the Company as a leading consolidator of high-quality assets in the Golden Triangle.

For more information about the Company, please refer to the Company’s profile on SEDAR at www.sedar.com or visit the Company’s web site at www.ascotgold.com, or for a virtual tour visit www.vrify.com under Ascot Resources.