SGZ.L Regulatory News (SGZ)

1 June 2021

Scotgold Resources Limited

("Scotgold" or the "Company)

Production and Corporate Update

Scotgold is pleased to provide an update to the market with regard to its mine production and processing performance for the Cononish Project ("Cononish").

The Company is pleased to announce that Cononish has been producing both gold concentrate and gravity separated gold Dore, following the resolution of various outstanding technical issues affecting the processing plant announced by RNS on 27th April 2021.

The first shipment of concentrate was made on the 11th May 2021, achieving a major milestone for the Company. We shipped 25 tonnes of concentrate at an average of 182.4 grams per tonne of gold, exceeding the target of 150 grams per tonne achieving maximum price within the agreed terms within the offtake agreement. Modest amounts of gravity gold Dore was also produced and sent to refiners this month for further treatment.

Scotgold is encouraged with the mine and process plant performance, although performance has been intermittent to date. On given days throughout April and May both the mine and process plant have been achieving near design rates of production. The Company is also pleased with the quality of ore that has been mined and produced through the process plant.

Scotgold's focus is to further enhance safe production through consistency and stability of mine and process plant operations in parallel with the opening of multiple faces of ore in the underground mine itself. The current limited available number of ore faces does limit our immediate ability to focus on the highest-grade ore zones of the Cononish ore body. Having proved that the mine and processing plant can operate as designed, our focus is on reducing outages through more efficient management of spares and having further redundancy in our mining mobile fleet with the arrival of the second haulage DUX truck.

The company expects to inform the market through regular monthly updates going forward, where a focus on forward looking statements is expected including the ramp-up of production and new estimates for calendar year 2021 gold production.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

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