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TORONTO, Sept. 01, 2022 (GLOBE NEWSWIRE) — TRX Gold Corporation (TSX: TNX) (NYSE American: TRX) (the “Company” or “TRX Gold”) is pleased to announce that its operating subsidiary, Buckreef Gold Corporation Limited (“Bucklef Gold”), entered into a prepaid gold purchase agreement with a contract price totaling US$5 million with OCIM Metals & Mining SA. The full contract price may be made available to Buckreef Gold in tranches with an initial tranche of $2.5 million and further tranches to be drawn over the next 18 months at Buckreef Gold’s discretion. Tranche 1 of this non-dilutive financing includes a grace period of 6 months and a repayment period over the following 12 months in the form of quarterly deliveries of a predetermined quantity of gold. The actual quantity will be determined by applying a discount to the gold spot prices prevailing on the date the funds are transferred to Buckreef Gold.

Proceeds from this financing will allow Buckreef Gold to make opportunistic productivity-enhancing purchases, for example, the acquisition of mining equipment to replace higher-cost rental equipment, which will help improve operating costs. of extraction and processing over time. Additionally, it provides the flexibility to accelerate sulphide exploration and development programs at Buckreef Gold.

Construction of the expanded 1,000+ tonne per day (“tpd”) processing plant continues to be on schedule with an expected completion date in the third calendar quarter of 2022, at a capital cost of $4 million of dollars, which remains within the limits of the budget. The Company expects to provide an update on the processing plant expansion in due course.

“As operations continue to ramp up at Buckreef Gold, alternative non-dilutive sources of funding continue to emerge for the business. This funding allows the Company to opportunistically increase high yield and payback purchases allowing it to further reduce its operating costs.The Company continues to be prudent in its financing operations by balancing capital requirements, financing amounts and managing the overall liquidity of the business. amount of funding is easily supported by Buckreef Gold’s anticipated production profile which is anchored by strong inventory and high mining rates.We would like to thank OCIM for their support throughout the funding process and for a effective and simple due diligence,” noted Stephen Mullowney, CEO of TRX Gold.

About OCIM:

The OCIM group of private companies has a long and successful history as a trader and financier of strategic assets. Founded in Paris in 1961, OCIM is run by a member of the third generation of the founding family. In addition to its historical core business in Real Estate, OCIM has diversified into other strategic tangible assets such as gold, silver and platinum through its subsidiary based in Geneva. As a merchant, OCIM trades physical metals throughout the value chain, from producers to end users. As a financier, OCIM invests in a wide variety of instruments and provides value chain financing with equity, debt and alternative investments.

To learn more about OCIM, visit: www.ocim.eu

About TRX Gold Corporation

TRX Gold is rapidly advancing the Buckreef Gold project. Anchored by a Mineral Resource published in May 2020, the project currently hosts a NI 43-101 Measured and Indicated Mineral Resource of 35.88 MT at 1.77 g/t gold containing 2,036,280 oz of gold and a inferred mineral of 17.8 MT at 1.11 g/t gold for 635,540 ounces of gold. The management team is focused on creating short and long-term shareholder value by increasing gold production to generate positive cash flow. The positive cash flow will be used for exploration drilling with the aim of increasing the current gold resource base and advancing the sulphide ore project which accounts for 90% of the current gold resource. TRX Gold’s actions are driven by the highest ESG standards, as evidenced by the relationships and programs the company has developed over its nearly two decades of presence in the Geita region of Tanzania.

Investors
Christina Lalli
Vice President, Investor Relations
TRX Gold Corporation
+1-438-399-8665
[email protected]
www.TRXgold.com

Forward-looking statements
This press release contains certain forward-looking statements as defined in applicable securities laws. All statements, other than statements of historical fact, are forward-looking statements. Forward-looking statements are frequently, but not always, identified by words such as “expects”, “anticipates”, “believes”, “hopes”, “intends”, “estimated”, “potential”, ” possible” and similar expressions. , or statements that events, conditions, or results “will”, “could”, “could”, or “should” occur or be achieved. Forward-looking statements relate to future events or future performance and reflect TRX Gold’s management’s expectations or beliefs regarding future events and include, but are not limited to, statements regarding the continuation of operating cash flow. , expansion of its processing plant, estimation of mineral resources, ability to develop value-creating activities, recoveries, subsequent project testing, success, scope and viability of mining operations, timing and the amount of estimated future production and capital expenditures.

Although TRX Gold believes that the expectations expressed in these forward-looking statements are based on reasonable assumptions, these statements are not guarantees of future performance. Actual achievements of TRX Gold or other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors. These risks, uncertainties and factors include general business, legal, economic, competitive, political, regulatory and social uncertainties; actual results of exploration activities and economic evaluations; exchange rate fluctuations; cost changes; future prices of gold and other minerals; mining method, production profile and mine plan; delays in exploration, development and construction activities; changes in governmental laws and regulations; the ability to obtain financing on acceptable terms and in a timely manner or not at all; title deed competitions; employee relations and shortages of qualified personnel and contractors; the speculative nature and risks inherent in exploration, development and mining activities. These risks are discussed in the reports that TRX Gold files with the SEC. You may view and obtain copies of these filings on the SEC’s website at http://www.sec.gov/edgar.shtml.

The information contained in this press release speaks as of the date of the press release and TRX Gold undertakes no obligation to update this information.