TSG.L Regulatory News (TSG)

5 March 2021

Trans-Siberian Gold plc

("TSG", the "Company" or the "Group")

Asacha Gold Mine Update - Recommencement of Mining

Trading Update

Trans-Siberian Gold plc (TSG.LN), a low cost, high grade gold producer in Russia, announces that following an accident announced on 6 January 2021, the Company has been granted full permitting approvals to resume mining operations at Vein 25 in the East Zone of the Asacha Gold Mine ("Vein 25") with immediate effect and gives the following trading update.

Highlights

· TSG granted full permitting approvals to resume mining operations at Vein 25

· All repairs at the site of the incident have been completed 

· Mining operations have re-started with immediate effect

· RTN investigations close to completion

· Preventive safety measures already being devised and implemented ahead of investigation recommendations 

· Group has traded profitably during January and February 2021

· Gold doré production of 5,122 oz. from average gold grade of 5.1 g/t in January and February 2021

· Average realised gold price of $1,819/oz for January and February 2021

· Positive Net Cash[1] position of $2.7 million* at 1 March 2021

· Unsold finished metal in stock is 3,242 oz. gold and 7,869 oz. silver

*Note: Unaudited figure

Recommencement of Mining at Vein 25

The Company is pleased to announce that the Federal Service for Environmental, Technological and Nuclear Supervision ("Rostekhnadzor" or "RTN") has granted full permissions for the Group to recommence mining operations at Vein 25.

All repairs at the site of the incident have been completed, and the Company has re-started mining operations with immediate effect.

The Company understands that RTN is close to finalising its investigations and expects to receive the outcomes and recommendations by the end of March 2021. Independent technical expert reports commissioned by the Group concluded that the rock fall was largely caused by naturally occurring geological events which were hard to predict or foresee. Ahead of the RTN investigation recommendations a preventive action plan is being devised and implemented to mitigate future risk of this occurrence, including modification of ground support protocols, new ground support applications, site inspection, staff training and development supported by geotechnical software and additional underground equipment.

Current Trading Update

During the last 2 months, the Main Zone at the Asacha Gold Mine has remained fully operational and has provided sufficient feed ore for the processing plant to run at full capacity. Approximately 5,122 oz of gold doré was produced. The Group expects average gold grades to significantly improve now that Vein 25 is operational again. The Group has traded profitably during this period and has a robust financial position with strong liquidity having achieved a positive Net Cash position of approximately $2.7 million as at 1 March 2021.

Once the investigations are completed and the recommendations known, the Company will publish production and dividend guidance for FY2021. This is expected to be on or around the end of March 2021.

TSG expects to report first quarter 2021 production with an operations update from the Asacha Gold Mine in April 2021.

Alexander Dorogov, Chief Executive Officer of TSG, commented:

"We are pleased to have received approvals to safely resume mining operations at the Asacha Gold Mine. We continue to support the families affected by the accident, work closely with RTN and implement continuous improvements at our mine site. We have continued to trade profitably during this challenging period and are now pleased to recommence mining at Vein 25 in a safe and profitable manner".

ENDS

About TSG

TSG is focused on low cost, high grade mining operations and stable gold production from its 100% owned Asacha Gold Mine in Far East Russia. The Company also holds the licence for the development and exploration of the Rodnikova deposit, one of the largest gold fields in South Kamchatka.

Additional information is available from the Company's website: www.trans-siberiangold.com

Market Abuse Regulations

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR'). Upon the publication of this announcement via Regulatory Information Service ('RIS'), this inside information is now considered to be in the public domain.

Disclaimer

This announcement contains "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should" or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, uncertainties arise from the behaviour of financial and metals markets, fluctuations in interest and/or exchange rates and metal prices; and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different that those expressed in our forward-looking statements.