PureGold Provides Update on CCAA Proceedings; Announces Management Departures

Press Release

March 6, 2023

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

VANCOUVER, B.C. – Pure Gold Mining Inc. (NEX:PGM.H) (“PureGold” or the “Company”), announces today that it has filed a court application with the Supreme Court of British Columbia (the “Court”), to be heard on March 7, 2023, seeking  to extend the stay of proceedings in the Company’s ongoing Companies’ Creditors Arrangement Act (“CCAA”) proceedings up to and including May 8, 2023, and approval of an Amended Interim Financing Term Sheet to provide for an increase to the authorized borrowings under the Interim Facility from US$10 million to US$15 million on substantially the same terms to the previously approved Interim Financing Term Sheet between a fund managed by Sprott Resource Lending Corp. (“Sprott”) as lender and the Company as borrower.

PureGold believes that the duration of the proposed stay extension and associated financing will provide it sufficient time to make necessary decisions on how to advance its restructuring efforts. PureGold intends to continue to engage in discussions with Sprott and interested third parties concerning a possible transaction. The PureGold Mine near Red Lake, Ontario remains in a state of care and maintenance and is expected to remain in such state for the duration of the CCAA proceedings.

Organizational Departures

PureGold also announces that Terry Smith, Chief Operating Officer and Bryan Wilson, VP Mine General Manager have submitted their resignations to PureGold, effective March 10, 2023 and March 16, 2023, respectively. Mr. Smith and Mr. Wilson both joined the Company in February 2022. Mr. Smith and Mr. Wilson have each committed to remain with the Company until their respective departure dates to support an orderly transition.

The Company would like to thank Terry and Bryan for their outstanding leadership, dedication, and commitment and wishes them all the very best in their new roles in the industry.

About Pure Gold Mining Inc.

The Company is a Canadian gold mining company, located in Red Lake, Ontario, Canada. The Company owns the PureGold Mine, which began gold production in 2021 after the successful construction of an 800 tpd underground mine and processing facility. The Company’s Mine is centered on a forty-seven square kilometre property with significant discovery potential.

Additional information about the Company and its activities may be found on the Company’s website at www.puregoldmining.ca and under the Company’s profile at www.sedar.com

ON BEHALF OF THE BOARD

“Mark O’Dea”

Mark O’Dea, President & CEO

Investor inquiries:

Adrian O’Brien, Director, Marketing and Communications
Tel: 604-809-6890

aobrien@puregoldmining.ca

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