Could you provide a brief introduction to Hycroft Mining?

Hycroft Mining has a long and successful history of open pit heap leaching operations dating back to the 1980s. Currently, we are in the process of transitioning into the milling of sulfide ores while completing technical studies and conducting our largest drilling program in over a decade at the Hycroft mine.

Could you expand on the initial drilling results that were released in September 2022?

Hycroft Mining currently has over 15 million ounces of gold equivalent in its resource, with over 10 million in M&I and another five million in inferred. We also possess the largest silver resource in North America, with over 450 million ounces of silver M&I. It is important to note that Hycroft is on the lower end of the spectrum when it comes to grade, with only 0.5 g/t gold. This drill program is expected to last until the summer of 2023, at which point we will release a new technical report on the sulfide milling operation. With an enormous amount of infrastructure on site, the only thing needed for the sulfide operation is the mill configuration for processing sulfide ores. We also have around 40 million tons of heap-leachable material at Hycroft. If we can drill out more on the heap leach, we can start that operation much sooner as we are already permitted for leaching and milling. The Sprott and AMC investment in March 2022 allowed us to launch this exploration program to unlock Hycroft’s true value. This also brought an entirely new shareholder base that is very supportive, enabling us to do a follow-on market equity of over US$130 million. In such a volatile market, having this amount of cash in the bank affords us the staying power needed for the years to come.

What role can Nevada play in the US supply chain of precious metals?

Nevada has a considerable amount of gold and silver, and silver is key for the solar industry and many applications, whether you have a gas or electric vehicle. With the Tesla Giga factory in particular, we are well positioned to help support the increase in demand. There needs to be collaboration between the federal government and Washington. If we are going to meet some of these goals, we must hold companies accountable while also shortening the red tape processes to obtain permits. It takes a lot of time and capital to get projects running, and if you add a decade of permitting, it will force the US to look for the critical mineral it needs outside of the country.

What is the priority for Hycroft in the coming year?

Releasing a new technical report on the sulfide milling operations is our primary priority. We also have a very large exploration program, so we will have continuous news out throughout the year. Additionally, we will expand our plans for heap leach operations and transition toward the sulfide operation. With US$150 million in cash, we can unlock value and are looking at M&A transactions.

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