Gold Bull Resources Corp. reported completion of its Sandman Preliminary Economic Assessment (PEA or Scoping) Phase 2 Study at its 100% owned Sandman Project (Sandman or the Project) located in Humboldt County, Nevada, USA. The Sandman Scoping Phase 2 Study has identified a stand-alone, low pre-production capital USD 29 million, conventional heap leach gold project producing circa 35,000 to 40,000 ounces of gold per year for 9 years.

The project boasts an excellent Internal Rate of Return (IRR) at 101% and a pre-tax payback period of 1.1 years, using a conservative gold price of USD 1800. The Scoping Phase 2 Study focused on mining gold mineralized material within optimized pit shells in two phases: Phase 1 mines all mineralized material within the pit shell above the water table (Phase 1 Study previously announced September 12, 2022 titled “Gold Bull's Sandman Project Scoping Study points to near-term production potential”), with report filed on October 27, 2022, and this Phase 2 study focused on mineralized material below the water table and within the pit shell, after completion of additional monitoring, permitting and dewatering efforts paid by mine cashflow, thereby reducing initial capital and completed during the above water table mining process. The benefit of this two-phase approach, is enabling sufficient time and mine sourced funding to continue to close out existing mineral resources, discover additional gold resources, and enable sufficient time to conduct the below water table mine studies and permitting, all paid from Sandman Project mine revenues.

The model is organic growth and non-shareholder dilutive. This Scoping Phase 2 Study focused on the efficient extraction of all mineralized material within an optimized pit shell in a sequence that facilitates effective use of initial pre-production capital and a more rapid mine commissioning. This Scoping Phase 2 Study will be a preliminary economic assessment, under NI 43-101 requirements, and will be filed on SEDAR within 45 days.

The Sandman Scoping Phase 2 Study was prepared by Jerod Eastman, President of DJ 6E Consulting LLC, an independent third-party consultant. The Study has demonstrated potentially strong financial metrics for the Sandman Project based on a proposed stand-alone low-cost start-up heap leach gold mine project located approximately 25 km from the mining town of Winnemucca in central Northern Nevada, USA. Mr. Eastman was also the author of the Company's “Preliminary Economic Assessment (Scoping Study), NI 43-101 Technical Report” for the Project with an effective date of September 12, 2022 and filed on SEDAR on October 27, 2022.

This Phase 2 Study investigated an expansion to the previously announced Phase 1 five-year mine plan of above water table mineralized material processed onsite via conventional Heap Leach processing AND includes a Phase 2 plan to mine the mineralized material below the water table after Phase 1 is finalized, and the necessary permitting and dewatering efforts have been completed. Gold Bull considers Sandman to be technically low risk, given the low strip ratio and significant historical database that the Scoping Studies have been based on. Both Scoping Studies were completed to an overall +/- 30% accuracy and using key parameters and mine factors.

The Phase 1 mine scenario targeted low Initial pre-production capital and near-term cash flow to then later fund below water table oxide mine studies and development while producing revenue from the asset. The deferred work includes below water table permitting, studies for efficient product processing and additional resource drilling. The Sandman Project Phase 2 Scoping Study includes Life of Mine (LOM) and reports a pre-tax IRR of 101%, NPV6% of USD 145 million, annual cashflow of estimated USD 26Mpa, and a payback period of 1.1 years when applying a gold price of USD 1,800/oz of gold.

The initial pre-production capital cost is USD 29 million, which includes working capital of USD 4.5 million, and a further USD 20.2 million will be required as sustaining capital for additional mine studies, dewatering, and leach pad expansions. Total operating cost is $17.22 per tonne and all in sustaining cost of $1,204/oz gold. Royalty is low at 1.2% of product.

The Project is based on 455,000 gold ounces contained within the put shells, with a head grade of 0.73 g/t gold spread across four known gold deposits. The four (4) gold resources shall be mined via conventional open pit mining methods, with an average life of mine waste to ore ratio of 2.2:1, annual production is 35-40K oz gold, with 2.2Mt feed production rate. Refer Table 2 for further details and estimated financial metrics.