Vancouver, British Columbia – FIORE GOLD LTD. (TSXV: F) (OTCQB: FIOGF) (FSE-2FO) (“Fiore” or the “Company”) is pleased to announce that its financial statements and management’s discussion and analysis for the second fiscal quarter (“Q2 2020”) ended March 31, 2020, have been filed with the securities regulatory authorities and are available at www.sedar.com and on the Company’s website at www.fioregold.com.

Fiscal Q2 2020 Highlights
(all figures in U.S. dollars unless otherwise indicated)
Operating & Financial
•Q2 gold production of 12,085 ounces representing a production record for the Pan Mine and a 38% increase compared to Q1 2020
•Gold sales of 12,026 ounces at an average realized price of $1,576 per ounce, all sales unhedged
•Recorded quarterly revenues of $19.0 million with mine operating income of $5.3 million
•Net income of $2.9 million
•Generated Pan operating cash flow1 of $6.0 million and consolidated operating cash flow of $3.9 million, both records for Fiore Gold
•Closing cash balance of $9.1 million, an increase of $2.6 million relative to our last reported cash balance as of December 31, 2019
•Strengthened balance sheet with net working capital of $28.7 million as of March 31, 2020
•Mined ore production in Q2 of 14,177 tons per day with a stripping ratio of 1.8:1.0 and grade of 0.016 ounces/ton
•Q2 2020 Pan Mine AISC1 per ounce sold of $1,099 and cash costs per ounce sold1 of $983
•Q2 2020 Fiore consolidated AISC1 of $1,196 per ounce sold
•Mining costs of $2.01 per ton mined demonstrate continued operational efficiencies
•73,555 total site man-hours worked in Q2 with one reportable incident and zero lost-time injuries
•Mining declared an essential business in Nevada and the Pan Mine continues to operate with strict protocols in place focused on protecting the health and safety of our employees
•We are pleased to reiterate our 2020 production and cost guidance

Organic Growth
•Pan drill results released May 12, 2020 continue to expand oxide gold mineralization, with a resource and mine plan update expected in the second half of 2020
•Results of a Preliminary Economic Assessment (“PEA”) released on April 9th demonstrating positive economics for the Gold Rock project with opportunities to further enhance value. On May 13, 2020, Fiore Gold filed the related technical report.
•Completed construction of the Pan to Gold Rock access road
•On May 19, 2020, Fiore Gold announced a 2.0 million ounce measured and indicated resource at its Golden Eagle Project in Washington State, USA

Tim Warman, Fiore’s CEO commented, “Fiore’s achievements in Q2 continue to advance our goal of becoming a multi-asset US gold producer. The Pan Mine set multiple records in profitability and cash flow with production increasing and costs declining quarter on quarter. Pan continues to be our cornerstone asset allowing us to advance the adjacent Gold Rock property without diluting our shareholders. With a strengthened balance sheet, a positive PEA, and the access road constructed, we are now taking the next steps to move Gold Rock toward feasibility. And with the subsequently announced 2 million ounce resource at Golden Eagle, we hope to drive even further shareholder value. We continue to recognize the inherent risk posed by COVID-19. The health and safety of our employees comes first as they are the foundation of our success in Nevada. We have put a range of operating protocols in place to best mitigate the risk to them. We are fortunate that we have no reported cases at site and continue to operate with minimal disruption.”

Review of Operating Results
Three Months Ended March 31,
Operating Results 2020 2019
Ore Mined (t) 1,290,130 1,188,974
Waste Mined (t) 2,262,897 1,941,370
Total Mined (t) 3,553,027 3,130,344
Gold Ounces Mined (oz) 20,635 17,250
Ore Grade Mined (oz/t) 0.016 0.015
Strip Ratio waste/ore 1.8 1.6

Gold Ounces Produced (oz) 12,085 10,759
Gold Ounces Sold (Payable) (oz) 12,026 10,737

Average Realized Price1 $/oz 1,576 1,305
Total Cash Costs per Ounce1 $/oz 983 847
Cost of Sales per Ounce1 $/oz 1,135 962
Pan Mine AISC per Ounce1 $/oz 1,099 899
Fiore Consolidated AISC per Ounce1 $/oz 1,196 986

Ore tons and total tons mined were higher than the prior year as mining efficiencies allowed us to achieve the required increase in stripping ratio, which is the primary driver for the increase in Pan and Fiore consolidated AISC1 relative to the prior year. As indicated in our guidance, strip ratio is expected to decline in the second half of 2020. Gold ounces mined in the quarter improved relative to 2019 due to increased ore tons and ore grade mined. The quarter also benefitted from some higher-grade areas of the ore deposit that were mined earlier in the year than planned. Gold production of 12,085 ounces was higher than the prior year quarter due to the increased recoveries related to the installation of the primary crusher.

1 This is a non-IFRS financial measure. Please refer to “Non-IFRS Financial Measures” at the end of this news release for a description of these non-IFRS financial measures and to the Non-IFRS Financial measures in the March 31, 2020 Management’s Discussion and Analysis for a reconciliation to operating costs from the Company’s interim financial statements.

Key Developments
Pan Mine
With Pan operating well, we continue our focus on drilling to expand the resource and reserves, and increase mine life. Initial results of the current resource expansion drill program were announced on December 10, 2019. Subsequent to the quarter-end, on May 12, 2020, we released drill results on a further sixty-four holes drilled at several locations around the main North Pan pits, as well as the smaller Syncline and Black Stallion satellite pits. The holes were intended to test the potential to expand the existing oxide reserves both at depth and laterally beyond the current reserve boundaries.

Highlights from these sixty-four holes, all from the North Pan area, include:

•Hole PR20-006 returned 32.0 metres of 0.75 g/t gold
•Hole PR20-008 returned 30.5 metres of 0.76 g/t gold
•Hole PR20-013 returned 27.4 metres of 0.74 g/t gold
•Hole PR20-016 returned 38.1 metres of 0.92 g/t gold
•Hole PR20-031 returned 25.9 metres of 0.74 g/t gold
•Hole PR20-040 returned 74.7 metres of 0.74 g/t gold
•Hole PR20-052 returned 27.4 metres of 0.68 g/t gold
•Hole PR20-053 returned 30.5 metres of 0.60 g/t gold
•Hole PR20-055 returned 15.2 metres of 2.60 g/t gold

Gold Rock
On April 9, 2020, we announced results from a PEA completed for the federally permitted Gold Rock gold project located approximately 8 miles southeast of the Pan Mine. This PEA represents the first ever economic and technical analysis of mining at Gold Rock and shows the project can deliver solid returns for a modest capital investment. The PEA provides an updated mineral resource estimate and a base case assessment of developing the Project as a satellite open pit operation that will share significant infrastructure and management with the adjacent Pan Mine. The PEA also identifies a considerable number of opportunities to enhance the project economics as Gold Rock advances to the Feasibility stage by drilling to increase the mineral resource, further metallurgical testing aimed at improving recoveries, and geotechnical drilling aimed at reducing the stripping ratio. On May 13, 2020, Fiore filed the related technical report.

We have prepared a detailed development plan for Gold Rock that lays out the drilling, metallurgical testing, engineering, state permitting, and other activities required to advance the project towards production. Based on our experience operating the nearby Pan Mine, we intend to proceed directly from the PEA to a Feasibility Study in order to shorten the development timeframe. To assist drilling and on-going work related to the Feasibility Study, we completed the construction of an access road connecting Pan and Gold Rock

Rio Loa
In February 2020, Fiore entered into an agreement with a private Chilean company to assign all of our obligations under the Rio Loa Option Agreement. The divestment of Rio Loa focuses the Company firmly on the United States, one of the world’s top mining jurisdictions.

Q2 2020 Financial Results
Three Months Ended March 31,
Financial Results of Operations 2020 2019
Select Items – On a Consolidated Basis $000’s $000’s
Revenue 18,956 14,019
Mine Operating Income 5,305 3,687
Income from Operations 3,516 2,550
Operating Cash Flow 3,879 2,874
Unrealized Gain on Derivatives, net 39 295
Net Income 2,889 1,995
Adjusted Net Earnings1 2,890 1,678

Financial Position as of: March 31,
2020 September 30, 2019
Select Items – On a Consolidated Basis $000’s $000’s
Cash 9,111 7,280
Inventories 25,152 20,886
Total Current Assets 35,358 29,610
Mineral Property, Plant and Equipment, net 17,460 18,764
Total Assets 61,069 56,156
Total Current Liabilities (6,648) (6,558)
Long-Term Liabilities (11,448) (10,279)

Working Capital Surplus 28,710 23,052

Relative to the prior year quarter, Fiore demonstrated improvements on all profitability and cash flow measures noted above. This was due to record gold production and the benefit of higher realized gold prices, offset in part by higher costs related to increased stripping.

Our liquidity and financial position strengthened with a higher cash balance of $9.1 million and working capital of $28.7 million. Refer to the Company’s MD&A and Financial Statements for additional information. The improvement in financial strength puts Fiore in a good position to continue to progress our growth assets and mitigate potential risks posed by COVID-19.


1 This is a non-IFRS financial measure. Please refer to “Non-IFRS Financial Measures” at the end of this news release for a description of these non-IFRS financial measures and to the Non-IFRS Financial measures in the March 31, 2020 Management’s Discussion and Analysis for a reconciliation to operating costs from the Company’s interim financial statements.

Corporate Strategy
Our corporate strategy is to grow Fiore Gold into a 150,000 ounce per year gold producer. To achieve this, we intend to:
•grow gold production at the Pan Mine while also growing the reserve and resource base;
•advance exploration and development of the nearby Gold Rock project; and
•acquire additional production or near-production assets to complement our existing operations

Qualified Person
The scientific and technical information contained in this news release relating to Fiore Gold’s Pan Mine was approved by J. Ross MacLean (MMSA), Fiore Gold’s Chief Operating Officer and a “Qualified Person” under National Instrument 43-101. The scientific and technical information contained in this news release relating to the Gold Rock and Golden Eagle projects were approved by Paul Noland (AIPG CPG-11293), Fiore Gold’s VP Exploration and a “Qualified Person” under National Instrument 43-101.

On behalf of FIORE GOLD LTD.

“Tim Warman”

Chief Executive Officer