Superior Gold Inc.

Good morning ladies and gentlemen. Thank you for standing by. Welcome to Superior Gold's second quarter 2021 results conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, then the number one on your telephone keypad. If you would like to withdraw your question, press star, then the number two. If you have any difficulties hearing the conference, please press star then zero for operator assistance at any time. As a reminder, this conference call is being broadcast live on the Internet and recorded. I would now like to turn the conference call over to Chris Jourdan, President and Chief Executive Officer. Please go ahead, Mr. Jourdan.

Thank you, Michelle. Good morning, everyone, and thank you for joining us. to discuss Superior Gold's second quarter 2021 results. I hope you and your families are well and safe. I would like to start by acknowledging the contributions of our outgoing interim CEO, Tamara Brown. The value Tamara brought to the company over the past year is clearly evident in our latest results, and I want to thank her for stepping in, articulating our growth strategy and working with the team to start the turnaround at our operations. We will continue to build on this platform Tamara put in place to deliver our growth strategy. As a reminder, please refer to slide two of our presentation, which is posted on our website to view our portion of the language regarding forward-looking statements. In addition, please note that all amounts discussed are in US dollars unless noted otherwise. As you are aware, I recently stepped into the President and CEO role. For those of you who don't know me, I have 30 years of international processing and mining experience. Most recently, I was with Newcrest Mining, Australia's largest gold miner. As Program Director for Transformation of the P&G Operations and previously the General Manager of Leho Gold Mine, one of the world's largest gold mines, and Chief Performance Officer. Prior to that, I was the CEO of International Federal Metals Limited, an LSE-listed integrated chrome mining and smelting company. I'm excited to be leading the Superior Gold team, working closely with the board as we continue with the transformation at the Platonic Gold operations towards its full potential. Together, we will be focused on achieving the company's strategic goals of sustainably growing our gold production from both underground and open-fit operations, combined with the opportunity for belt consolidation in one of the world's most prolific gold mining campuses. located in the Yalgong Goldfields of WA. Joining me on today's call are Paul Olmsted, our CFO, and Keith Boyle, our COO. As a reminder, we believe the key investment highlights for Superior Gold are that our operations are located in Western Australia, which is one of the top mining jurisdictions in the world, according to the Fraser Institute. We own a world-class operating mine with significant established infrastructure. We have a clear and concise optimization and expansion plan, which I will discuss in more detail in the next slide. We have a significant mineral resource base, plus additional exploration upside, given our very large and underexplored mineralized system. And finally, one of the most compelling attributes is the re-rate opportunity we represent compared to our peers. First, we are working to reestablish steady-state production from the underground mine, and we encourage to see it return to a steady state of improving positive cash flow in both the first and the second quarter of this year. The near-mining resource extension drilling and mineral exploration currently underway seeks to provide future mining fronts with stable, cost-effective feed to the mill. To supplement this underground feed, we are adding open-fit production from a number of near-mill, past-producing open-pit projects, including Plutonic East, which commenced on schedule during the second quarter, then perched with optionality into Salmon, Hermes, and Hermes South. The opportunity review currently underway will explore and develop opportunities to maximize the potential from these pits. The timeframe and capex to put these smaller pits into production is relatively short and relatively low. And with the announcement of the platonic mainfoot pushback project at the end of 2020, we now have a potentially longer-term steady supply of open-foot feed. The third pillar of our growth strategy is recommissioning our second mill that is currently on care and maintenance. New sources of feed may come from exploration in our existing properties or from several other sources along the platonic Miramere Gold Belt. This provides the opportunity to increase production at Plutonic to well above current levels with a minimal capital expenditures because of the significant infrastructure that's already in place. Finally, there is the potential for a new discovery as we invest in exploration of Plutonic. We have certainly been very encouraged by our recent drilling results now that we have a third drill rig on the property dedicated to opening new mining fronts.

We are providing inspiration updates later in August 2021.