Scotgold Resources Limited (AIM: SGZ), Scotland's and the UK's first commercial gold producer, announced on 7 April 2022 that it had entered into a loan procurement agreement with Fern Wealth GmbH ('Fern Wealth') from a syndicate of high-net-worth investors for an amount up to GBP3 million (the 'New Loans') (the 'Agreement').

The Company is pleased to announce that, under the terms of the Agreement, it has received and completed the first tranche of the New Loans drawdown for the total of GBP1.2 million on 20 May 2022. It is anticipated that the remaining GBP1.8 million of the GBP3 million New Loans will be received and fully drawdown on or before 30 June 2022. Subject to the receipt of the full amount of GBP3m under the New Loans the Company intends to use the proceeds received to fast-track the Company's Optimisation Initiatives to achieve a gold production run rate of c.23,500oz p.a. by the end of Q1 2023.

The core Optimisation Initiatives planned for 2022 include: Design, construct, and commission a tailings thickener, a cost-effective technology to improve the throughput and recoveries of concentrate product in the processing plant to achieve a monthly run rate of c. 4,000 feed tonnes to the process plant by end of Q2 2022 which equates to c 16,000 - 17,500 ounces p.a. run rate of gold by the end of Q2 2022.

Enhancing mining efficiencies of the underground mine to ensure continuous operations and Design, construct, and commission an ore sorter at the processing plant between the existing crushing unit and the Mill to realise an increase in ounces of gold processed per tonne at lower tonnages and potentially lower CAPEX and OPEX.

Due diligence to be completed by the end of Q2 2022 and the sorter, if approved, to be operational by the end of Q1 2023. Tranche 1 of the New Loans drawdown has enabled Scotgold to improve its working capital position and be able to finalise the purchase of the tailings thickener to commence the construct and commissioning stage of the optimisation initiative.

Repayment of short-term loan facility - Bridge Barn

Scotgold announced on 3 March 2022 that it had secured a short-term Loan Facility with Bridge Barn Limited ('Bridge Barn') a company owned and controlled by Nathaniel Le Roux (Non-Executive Director) providing GBP250,000 to Scotgold (the 'Short Term Loan Facility'), to cover working capital requirements which had been impacted by the delay in shipment of the Company's gold concentrate from port, due to macro and geo-political events in March 2022 impacting global shipping lines. The Company is pleased to announce that is has repaid the Short Term Loan Facility in full plus interest, utilising revenues from its April 2022 gold concentrate sales which totalled just over GBP1 million for the month. The information contained within this Announcement is deemed by the Company to constitute inside information as stipulated under Article 7 of the Market Abuse Regulation (EU) No. 596/2014 (as amended) as it forms part of the domestic law of the United Kingdom by virtue of the European Union (Withdrawal) Act 2018 (as amended). Upon the publication of this Announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

Contact:

Tel: +44 (0) 774 8843 871

Scotgold Resources Ltd (AIM: SGZ), is Scotland's first commercial gold producer. The Company poured first gold in November 2020 at its Cononish Gold and Silver Mine ('Cononish) in Tyndrum, Scotland and is developing it into a +23,500-ounce gold mine per annum by end of Q1 2023. Cononish is a highgrade underground mining operation with a central processing plant producing gold concentrate for off-take and gold dore for the Scottish Jewellery industry. Once in full production, the mine has anticipated forecast operating costs of c.GBP544/oz AISC, which will place Cononish in the lowest quartile of gold mining operations globally.

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