Steppe Gold Ltd.

Steppe Gold Ltd. is a junior gold producer headquartered in Ulaanbaatar, Mongolia, operating primarily in Asia. The company's portfolio consists of 2 projects, comprising 1 operating mine and 1 expansion project. Key assets include Boroo and ATO. The business model centers on integrated exploration, development, and production, leveraging two distinct processing flowsheets for operational flexibility. Processing capabilities include a conventional oxide heap leach operation with a 3-stage crushing circuit and an ADR plant, alongside a separate carbon-in-leach processing plant. This dual-stream approach allows for the treatment of different ore types, enhancing resource utilization. A key operational synergy involves transporting ore from one site to another for processing, which increases the efficiency of both locations. The enterprise's competitive approach is defined by its ability to manage various metallurgical processes and optimize asset integration. Risk management is addressed through operational diversification, though the company's policy is not to hedge its exposure to commodity price fluctuations. The business competes with other resource companies, many of which possess greater financial and technical resources, for financing, property acquisitions, and qualified personnel. This competitive landscape shapes its strategic focus on operational efficiency and disciplined growth.

Strategic direction is centered on value creation through a combination of organic growth, operational expansion, and targeted acquisitions. A primary initiative is the Phase 2 Expansion, a fully funded project designed to construct a new, larger conventional processing facility to handle different ore types and increase production capacity. This expansion is supported by a US$150 million financing package and a turnkey engineering, procurement, and construction contract. The capital allocation approach is demonstrated by securing this multi-tranche financing, which includes term loans and secured credit facilities, to de-risk major capital projects. The entity's growth strategy also includes disciplined portfolio management, evidenced by the concurrent acquisition of a major producing asset and the divestiture of a non-core development project in 2024. Future growth is planned through the restart of exploration activities at prospective sites and the evaluation of new projects. To broaden its investor base and access new capital markets, the organization has pursued a dual primary listing on an international stock exchange.

Executive leadership is headed by Chairman and Chief Executive Officer Bataa Tumur-Ochir, a founding member of the team who has held senior roles since 2019. The board of directors consists of 7 members, with governance structured through 3 primary committees: Audit, Corporate Governance and Nominating, and Compensation. The Audit Committee is composed of 3 members, all of whom are independent and financially literate, and it meets at least 4 times annually to oversee financial reporting, internal controls, and auditor performance. The governance framework is further defined by an investor rights agreement with its controlling shareholder, which provides for the nomination of up to 2 directors. Directors and executive officers as a group beneficially own approximately 6.6% of the company's outstanding shares, aligning leadership interests with those of shareholders. The management structure has evolved, with the appointment of a new President in 2023 to support the CEO, reflecting a strategic enhancement of the leadership team to manage growth.

The sustainability framework is guided by the company's inaugural Environmental, Social, and Governance report, prepared in alignment with the SASB Metals & Mining standard. Environmental stewardship is demonstrated through the implementation of an Environmental Management Plan, which has achieved implementation rates above 90% for the last 3 years, and a commitment to concurrent reclamation. The organization is also working towards ISO 14001 certification for its environmental management system. Social responsibility is enacted via formal cooperation agreements with local administrative bodies, focusing on local employment, infrastructure development, and community project funding. Workplace health and safety are managed through a "zero harm" philosophy, with the company pursuing ISO 45001 certification and implementing daily safety inspections, risk assessments, and employee training. Climate action includes the development of a comprehensive climate policy and the recalculation of greenhouse gas emissions to establish a validated baseline for future reduction efforts.

The corporate structure was significantly transformed in 2024 through the acquisition of Boroo Gold LLC. This transaction resulted in Boroo Singapore becoming the controlling shareholder with an approximate 55.9% interest in the company. Concurrently, the company divested its Tres Cruces Project to Boroo Singapore, reflecting a strategic realignment of its asset base. In 2023, the entity expanded through the acquisition of Anacortes Mining Corp. via a plan of arrangement. The company's operational assets are held through wholly-owned subsidiaries, including Steppe Gold LLC and Boroo Gold LLC. A key partnership exists through its subsidiary Corundum Geo LLC, which is structured as a joint venture with Bayankhongor New Mining LLC, a company owned by a provincial government, holding a 20% interest. This arrangement facilitates exploration and development in partnership with local government stakeholders. An investor rights agreement established in 2024 grants Boroo Singapore the right to nominate up to 2 directors, formalizing its influence on corporate governance.