Toronto, ON / August 13, 2021 / Victoria Gold Corp. (TSX-VGCX) (“Victoria” or the “Company”) is
pleased to announce its second quarter and first-half 2021 summary financial and operating results.
The Company will host a Zoom video conference on Monday, August 16th at 9:00am Pacific Time
(12:00pm Eastern Time) to discuss the second quarter and half-year consolidated results (details are
provided at the end of this news release). The Company uses certain non-IFRS performance measures
throughout this news release. Please refer to the “Non-IFRS Performance Measures” section of this
news release for more information.
All amounts are in Canadian dollars unless otherwise indicated. This release should be read in
conjunction with the Company’s Financial Statements and Management’s Discussion and Analysis
(“MD&A”) for the three and six months ended June 30, 2021 and 2020, available on the Company’s
website or on SEDAR.
Mr. John McConnell, President and CEO commented, “Operations at Eagle through the first half of this
year have performed well and there have been material increases in ore and waste mined, ore stacked
and gold produced over the comparable period in the previous year. On the financial side, we do not
have comparable metrics from 2020 as we achieved Commercial Production on July 1, 2020. We expect
the substantial production growth to translate into considerable year over year increases in gold sales,
revenue and operating cash flows during the second half of 2021.”
Operational Highlights – Second Quarter 2021
• Mine production was 2.3 million tonnes of ore.
• Ore stacked on the heap leach pad was 2.4 million tonnes at an average grade of 0.81
grams per tonne (g/t).
• Gold production was 32,140 ounces.
Financial Highlights – Second Quarter 2021
• Gold sold was 28,731 ounces, at an average realized price1 of $2,208 (US$1,798) per oz.
• Recognized revenue of $63.5 million based on sales of 28,731 ounces of gold.
• Operating earnings were $20.8 million.
• Net Income of $1.3 million, or $0.02 per share on a basic and diluted basis.
• Cash costs1 of $952 (US$775) per oz and all-in sustaining costs (“AISC”)1 of $1,824
(US$1,485) per oz of gold sold.
• EBITDA1 of $28.4 million.
• Free cash flow1 deficiency of $15.5 million, or a deficiency of $0.25 per share1
.
• Cash and cash equivalents of $14.8 million at June 30, 2021 after repaying $7.6 million of
principal payments against the Company’s debt facilities.

1) Refer to “Non-IFRS Performance Measures” section

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Gold production and sales
During the three months ended June 30, 2021, the Eagle Gold Mine produced 32,140 ounces of gold, compared to 28,352 ounces of gold production in Q2 2020. The Company was primarily focused on operational ramp up throughout 2020 and declared commercial production on July 1, 2020.
During the three months ended June 30, 2021, the Company sold 28,731 ounces of gold, compared with 20,320 gold ounces sold in the same quarter in the prior year.

Mining
During the three months ended June 30, 2021, a total of 2.3 million tonnes of ore were mined, at a strip ratio of 1.5:1 with a total of 5.6 million tonnes of material mined. In comparison, a total of 2.3 million tonnes of ore were mined, at a strip ratio of 1.5:1 with a total of 5.5 million tonnes of material mined for the prior comparable period in 2020.

Processing
During the three months ended June 30, 2021, a total of 2.4 million tonnes of ore was stacked on the heap leach pad at a throughput rate of 26,338 k tonnes per day. A total of 2.2 million tonnes of ore was stacked on the heap leach pad at a throughput rate of 23,711 k tonnes per day for the prior comparable period in 2020.
Average head grade for the quarter was 0.81 g/t Au, compared to 0.88 g/t Au in the prior comparable period in 2020. Grade is somewhat lower than expected and is primarily due to short range planning adjustments on the sequencing of ore release from the open pit.
As at June 30, 2021, the Company estimates there are 85,009 recoverable ounces within mineral inventory.
As of the date of this press release, a number of improvements related to material handling within the process circuit have been completed. These corrective measures have led to improving reliability and plant uptime and, in turn, have improved ore stacking and gold production. The full extent of these improvements are expected to materialize in H2 2021.

Capital
The Company incurred a total of $26.5 million in capital expenditures during the three months ended June 30, 2021 including: (1) sustaining capital of $17.4 million (including a CAT 993K Loader ($2.0 million) and construction of the truck shop and water treatment facility ($5.9 million)); (2) capitalized stripping activities of $6.5 million; (3) $1.1 million spend on growth capital expenditures (growth exploration), and; (4) $1.5 million adjustment to the Company’s asset retirement obligation during the quarter.

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Revenue
For the three months ended June 30, 2021, the Company sold 28,731 ounces of gold at an average realized price of $2,208 (US$1,798) (see “Non-IFRS Performance Measures” section) resulting in revenue of $63.5 million. Revenue is net of treatment and refining charges, which were $0.2 million for the three months ended June 30, 2021.

Cost of goods sold
Cost of goods sold of $27.7 million for the three months ended June 30, 2021 are comprised of production costs, (including mining, processing, site services and site general and administration costs), royalty and selling costs.

Depreciation and depletion
Depreciation and depletion was $13.1 million for the three months ended June 30, 2021. Assets are depreciated on a straight-line basis over their useful life or depleted on a units-of-production basis over the reserves to which they relate.

Net income (loss)
The Company reported net income of $1.3 million for the three month period ended June 30, 2021, compared to a net loss of $12.9 million for the previous year’s comparable period. The increase in net income for the three month period ended June 30, 2021 is the result of operating earnings, unrealized gains on marketable securities and foreign exchange gains, offset by finance costs, unrealized and realized losses on derivative instruments and deferred taxes.

Liquidity and Capital Resources
At June 30, 2021, the Company had cash and cash equivalents of $14.8 million and a working capital surplus of $39.8 million. The decrease in cash and cash equivalents of $41.3 million over the year ended December 31, 2020, was due to operating activities and changes in working capital including an inventory increase ($22.9 million increase in cash), offset by investing activities ($54.1 million decrease in cash) primarily from sustaining capital expenditures incurred at the Eagle Gold Mine and financing activities ($10.1 million decrease in cash) from principal and interest repayments made on credit facilities.

2021 Outlook
2021 production and financial guidance remain intact assuming there is no unforeseen significant impact on operations at the Eagle Gold Mine due to the COVID-19 pandemic. The Company has taken precautions to mitigate the risk of COVID-19 on operations. However, the COVID-19 pandemic and any future emergence and spread of similar pathogens could have a material adverse impact on our business, operations and operating results, financial condition, liquidity and market for our securities.
The Company produced 58,899 ounces of gold during the first half of 2021. The Company’s 2021 gold production will be heavily weighted to the second half of 2021 and guidance at the Eagle Gold Mine of 180,000 ounces to 200,000 ounces is unchanged. The Company estimates gold production in excess of 120,000 ounces during the second half of 2021. Based on first half production, current stacking and forecasted gold production, the Company anticipates full year 2021 production to be towards the lower end of the guidance range.
The Company’s AISC1 per ounce of gold sold during the first half of 2021 was US$1,535. The Company expects unit costs to fall materially in the second half of 2021 as gold production and sales increase.

AISC1
guidance at the Eagle Gold Mine of US$1,050 to US$1,175 per ounce of gold sold is unchanged.
With production anticipated to be toward the lower end of guidance and costs trending higher due to wide spread escalation, the Company anticipates full year 2021 AISC1
to be close to the top end of guidance.
The Company has initiated ‘Project 250’ aimed at increasing the average annual gold production of the Eagle Gold Mine to 250,000 ounces by 2023. The two primary opportunities to increase production are the scalping of fine ore from the crushing circuit and adjusting the seasonal stacking plan. Scalping of fine ore is expected to reduce wear and energy requirements as well as increase overall capacity of the crushing circuit. Further investigation is underway on year-round stacking of ore to the heap leach pad.
Early engineering on Project 250 is expected to be complete in the second half of 2021.

1 Refer to "NON-IFRS performance Measures"section.