Scythian Mining Group Shareholder Update

Scythian Mining Group

("Scythian" or the "Company")

Shareholder update

London, 5th September 2022. Scythian Mining Group, the clean gold explorer and developer with operations in Kazakhstan, today Managing Director Barry Davis updated shareholders on its progress since May 2022.

Dear Shareholder

I wish to take this opportunity to update you on the progress of Scythian since the last shareholder update in March. As you can see Scythian has updated its image, starting with the logo, letterhead, corporate office, presentation profile and soon the website, in preparation for an IPO on the London Stock Exchange.

Executive Summary

Because of the drilling success at Kokkus and current market conditions, it is planned to IPO Scythian mid-2023.

Scythian has moved forward with a 5200m drilling program at Kokkus, which is producing significant results. As a result of this success, Scythian is negotiating an additional funding agreement with a US Investor for a further 15,000m of drilling to increase the Kokkus resource with a target of 2-3m oz Au plus a PFS before the IPO. This will enable our local company to apply for a Mining Permit in 2023.

Scythian is also in negotiations with potential partners to replace our current Russian partner on the very attractive porphyry Cu-Au cluster at East Balkhash. Drilling in 2021 produced significant results at Dzharyk South Au project as well as the Taisogan Cu only porphyry system which Scythian is currently completing a resource calculation on.

Scythian has also engaged Flagstaff Strategic and Investor Communications as our UK PR firm, so further updates will be sent out via Flagstaff. If you wish to receive these updates, please register with Scythian@flagstaffcomms.com or contact Partner Tim Thompson  tim@flagstaffcomms.com.

Technical Summary

a. Kokkus Au Deposit, (Scythian will have 51% of Kokkus this month and 100% early 2023)

Scythian is in the process of completing 4,000m RC and 1,200m DDH, which has confirmed the initial geological understanding of Kokkus, in that it is a multi-layered sub-vertical deposit. Initially Scythian had confirmed 2 separate zones of Au mineralisation, where the original resource of 198,000oz Au over 200m was in K1 only, and K2 which is sub-parallel to K1. Now with further drilling, trenching, and mapping, it has been confirmed that there are 11 separate zones of mineralisation, K1-K11, with more to come as we focus on other areas, which has a combined strike length of over 15 km, and true widths varies from 50m to 10m. All zones are associated with intense silica-illite alteration with quartz veining associated with mainly pyrite. The total size of the massive alteration is over 4km2. At this stage the controlling structure is thought to be a folded mylonite. Figure 1 and 2, with some photos below.

Figure 1:- Stage 1 Drilling- Folded Zones of Au Mineralisation at Kokkus, K1, K2, K3 & K4 showing the massive silica-illite. Resource drilling to target 1m oz Au

Figure 2: Stage 2 Drilling- 7+ Sub Parallel Zones of Au Mineralisation, K5, K6, K7 plus extension to K1-K4. Exploration has started, target 2-3m oz Au

Photo 1: Exploration Camp at Kokkus with K2 ridge in the background

Photo 2:- Typical Kokkus ore zone core, showing intense silica-illite alteration of the original sediments, with late stage quartz veins. These zones will vary from 25-100m down hole.

Because of this success, Scythian is now in talks with a US investor to complete a further 15,000m DDH, and a PFS before March 2023 with the aim to bring the resource to around 2-3moz Au, before SRK complete their MRE/CPR report for an IPO on the LSE mid 2023, if the market conditions are favourable. If not, Scythian will continue to develop Kokkus to production.

Scythian has engaged SRK to complete an MRE/ CPR after the drilling is completed, which is scheduled to be completed in Feb 2023. Next month Dr A. Kloppenburg will visit Kokkus to complete a more detailed structural study to get a more accurate understanding of the structural controls on the mineralisation and to give Scythian more confidence on where to drill under-cover with the aim of joining these zones together.

Further work to be completed this year will include more detailed metallurgical work on gravity recovery of the free gold in the oxide zone, as well as heap leach testing, Geotech logging of the core, a DEM survey as well as initial hydrology test work.

Scythian will own 51% of Kokkus by the end of September, and the remaining 49% to be obtained next year.

Kokkus Drill Results to Date. Only 18 of the RC result have returned to date, and all of these holes were short, thus many actually started or ended in mineralisation, being less than 60m.

The DDH intersected much wider alteration zones 25-85m.

2022 Drill RC results to date

SMG 2018 Drill Results

East Balkhash

Scythian has 20% of East Balkhash, free carried.

Scythian's Russian partner completed 14,000m of DDH and 15km of trenching in 2021, of which we have received the results back in June 2022.

East Balkhash is a project which Scythian acquired in 2018, and it has been funded since then by our Russian partner. It contains 5 Au-Cu porphyry systems. One of the porphyry systems, Taisogan, has been extensively drilled and is likely to have a JORC Inferred resource of around 600,000 tonnes Cu with an average of 0.33%, it is hoped that this will be confirmed soon. There is no Au at Taisogan.

Taisogan is only 40km from the biggest Cu mine in Kazakhstan, Aktogay owned by Kaz Minerals.

Results for the drilling at Taisogan:

Five kilometres north of Taisogan, Scythian discovered Dzharyk South, an Au only deposit on the surface, which is 3.5km long and 800m, consisting of 8 separate Au zones, again with strong silica illite alteration, but not to the intensity and scale of Kokkus.

Results for the drilling at Dzharyk South:

Scythian is in discussions with a number of parties to replace our 80% Russian partner, because of the current sanctions, which, if successful, will give Scythian the opportunity to increase its equity in East Balkhash to 50%.

IP targets, Dzharyk South-Cu, Dzharyk 4, a,b,c and Dzharyk 5 have not been drill tested to date.

Best Regards

Barry Davis

Managing Director

For further information visit www.scythian.com, follow on twitter @scythian or contact:

Scythian Mining Group

Barry Davis President and Managing Director

Contact Via Flagstaff

Flagstaff Strategic and Investor Communications

Tim Thompson 

Mark Edwards

Andrea Seymour

Anna Probert

Tel: +44 (0) 207 129 1474

scythian@flagstaffcomms.com