AEX Gold Inc. Reports First Quarter Financial Results

TORONTO, May 27, 2021 - AEX Gold Inc. (AIM:AEXG)(TSXV:AEX), an independent gold company with a portfolio of gold licences in Greenland, announces its unaudited condensed interim consolidated financial statements ("Financial Statements") for the first quarter ended March 31, 2021. All figures are in Canadian dollars unless otherwise noted.

The Financial Statements and the accompanying Management Discussion and Analysis are available on the Corporation's website at www.aexgold.com and will be filed under the Corporation's SEDAR profile at www.sedar.com later today.

At the time of the AIM listing AEX announced the development of the Nalunaq Project of which the main engineering and constructing activities commenced in Q4-2020. A large part of the cost increases between Q1-2020 and Q1-2021 relate to the transition of AEX from an exploration and evaluation focused company to a development and exploration company post the AIM listing.

Financial Highlights

• The Corporation had a strong cash balance of $55.0 million at March 31, 2021 ($61.9 million at December 31, 2020), with no debt, and total working capital of $54.3 million ($61.4 million at December 31, 2020).
• Capital asset purchase commitments, net of deposits on order as at March 31, 2021 was $6.6 million. These commitments as previously reported, relate to the purchase of components of process plant equipment, infrastructure and vehicles. Available liquidity, net of commitments as at March 31, 2021 was $47.7 million.
• Construction in progress increased by $0.6 million in Q1-21 (zero at December 31, 2020) as a result of capitalized engineering on the Nalunaq Project prior to suspension on February 10, 2021.
• Exploration and evaluation expenses during the period were $1.3 million (Q1 2020: $0.6 million), predominantly on the Nalunaq Property.
• General and administrative expenses during the period were $1.6 million (Q1 2020: $0.4 million), with the increase a result of higher management, consulting and professional fees associated with right-sizing the organizational structure to develop Nalunaq.

Selected Financial Information

The following selected financial data is extracted from the Financial Statements for the three months ended March 31, 2021.

Financial Results

Financial Position

Corporate and Operational Update

• The tender process for the Internal 3^rd party engineering study is well under way with most interested parties having access to the Nalunaq Project data room. The internal 3^rd party engineering study will advance the process plant cost, supporting infrastructure cost and schedule to a AACE International Recommended Practice No. 18R-97 (2005) Class I estimate, with planned completion later this year.
• Critical contracts to advance the 2021 exploration and limited infrastructure 'early works' program have been signed and work is expected to commence in early June.
• In relation to permitting the Terms of Reference for the Environmental Impact Assessment ("EIA") and Social Impact Assessment ("SIA") were approved for public consultation with various Greenlandic Stakeholders. The draft SIA and draft EIA reports are in the process of being reviewed by the Authorities.

Eldur Olafsson, CEO of AEX, commented: "With strong liquidity and improved access to Greenland we are looking forward to the commencement of the exploration program this year while also setting ourselves up for the revised development plan for Nalunaq."

Enquiries:

AEX Gold Inc.
Jaco Crouse, Director and CFO
1-416-271-4767
jc@aexgold.com

Eldur Olafsson, Director and CEO
+354 665 2003
eo@aexgold.com

Stifel Nicolaus Europe Limited (Nominated Adviser and Broker)
Callum Stewart
Simon Mensley
Ashton Clanfield
+44 (0) 20 7710 7600

Camarco (Financial PR)
Gordon Poole
Nick Hennis
+44 (0) 20 3757 4980

AEX Gold Inc.
Condensed Notes to the interim Consolidated Financial Statements
Three months ended March 31, 2021 and 2020
(Unaudited, in Canadian Dollars)

1. NATURE OF OPERATIONS, BASIS OF PRESENTATION

AEX Gold Inc. (the "Corporation") was incorporated on February 22, 2017 under the Canada Business Corporations Act. The Corporation's head office is situated at 3400, One First Canadian Place, P.O. Box 130, Toronto, Ontario, M5X 1A4, Canada. The Corporation operates in one industry segment, being the acquisition, exploration and development of mineral properties. It owns interests in properties located in Greenland. The Corporation's financial year ends on December 31. Since July 2017, the Corporation's shares are listed on the TSX Venture Exchange (the "TSX-V") under the AEX ticker and since July 2020, the Corporation's shares are also listed on the AIM market of the London Stock Exchange ("AIM") under the AEXG ticker.

These unaudited condensed interim consolidated financial statements for the three months ended March 31, 2021 ("Financial Statements") were approved by the Board of Directors on May 26, 2021.

1.1 Basis of presentation

The Financial Statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") including International Accounting Standard ("IAS") 34, Interim Financial Reporting. The Financial Statements have been prepared under the historical cost convention.

The Financial Statements should be read in conjunction with the annual financial statements for the year ended December 31, 2020 which have been prepared in accordance with IFRS as issued by the IASB. The accounting policies, methods of computation and presentation applied in these Financial Statements are consistent with those of the previous financial year ended December 31, 2020.

During the 2020 year, an outbreak of a new strain of coronavirus (COVID-19) resulted in a major global health crisis which continues to have impacts on the global economy and the financial markets at the date of completion of the Financial Statements. These events may cause significant changes on the Corporation's ability to complete planned exploration and evaluation activities in the future, meet its other obligations and existing commitments for the exploration and evaluation programs or our ability to obtain debt and equity financing. Following these events, the Corporation has taken and will continue to take action to minimize the impact of the COVID-19 pandemic. However, it is impossible to ultimately determine the financial implications of these events.

2. CRITICAL ACCOUNTING JUDGMENTS AND ASSUMPTIONS

The preparation of the Financial Statements requires Management to make judgments and form assumptions that affect the reported amounts of assets and liabilities at the date of the Financial Statements and reported amounts of expenses during the reporting period. On an ongoing basis, Management evaluates its judgments in relation to assets, liabilities and expenses. Management uses historical experience and various other factors it believes to be reasonable under the given circumstances as the basis for its judgments. Actual outcomes may differ from these estimates under different assumptions and conditions.

In preparing the Financial Statements, the significant judgements made by Management in applying the Corporation accounting policies and the key sources of estimation uncertainty were the same as those that applied to the Corporation's audited annual financial statements for the year ended December 31, 2020. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

3. MINERAL PROPERTIES

4. CAPITAL ASSETS

4. CAPITAL ASSETS (CONT'D)

Depreciation of capital assets related to exploration and evaluation properties is being recorded in exploration and evaluation expenses in the consolidated statement of comprehensive loss, under depreciation. Depreciation of $49,316 ($57,158 for the three months ended March 31, 2020) was expensed as exploration and evaluation expenses during the three months ended March 31, 2021.

As at March 31, 2021, the Corporation had capital asset purchase commitments, net of deposit on order, of $6,597,326. These commitments relate to purchases of equipment, infrastructure and vehicles.

5. LEASE LIABILITIES

6. STOCK OPTIONS

An incentive stock option plan (the "Plan") was approved initially in 2017 and renewed by shareholders on June 17, 2020. The Plan is a "rolling" plan whereby a maximum of 10% of the issued shares at the time of the grant are reserved for issue under the Plan to executive officers and directors, employees and consultants. The Board of directors attributes the stock options and the exercise price of the options shall not be less than the closing price on the last trading day preceding the grant date. The options have a maximum term of ten years. Options granted pursuant to the Plan shall vest and become exercisable at such time or times as may be determined by the Board, except options granted to consultants providing investor relations activities shall vest in stages over a 12 month period with a maximum of one-quarter of the options vesting in any three-month period. The Corporation has no legal or constructive obligation to repurchase or settle the options in cash.

Changes in stock options are as follows:

6. STOCK OPTIONS (CONT'D)

Stock options outstanding and exercisable as at March 31, 2021 are as follows:

7. EXPLORATION AND EVALUATION EXPENSES

8. GENERAL AND ADMINISTRATION

Further Information:

About AEX
AEX's principal business objectives are the identification, acquisition, exploration and development of gold properties in Greenland. The Corporation's principal asset is a 100% interest in the Nalunaq Project, an advanced exploration stage property with an exploitation license including the previously operating Nalunaq gold mine. The Corporation has a portfolio of gold assets covering 3,870km², the largest portfolio of gold assets in Southern Greenland covering the two known gold belts in the region. AEX is incorporated under the Canada Business Corporations Act and wholly owns Nalunaq A/S, incorporated under the Greenland Public Companies Act.

Forward-Looking Information
This press release contains forward-looking information within the meaning of applicable securities legislation, which reflects the Corporation's current expectations regarding future events and the future growth of the Corporation's business. In this press release there is forward-looking information based on a number of assumptions and subject to a number of risks and uncertainties, many of which are beyond the Corporation's control, that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to the factors discussed under "Risk Factors" in the Final Prospectus available under the Corporation's profile on SEDAR at www.sedar.com. Any forward-looking information included in this press release is based only on information currently available to the Corporation and speaks only as of the date on which it is made. Except as required by applicable securities laws, the Corporation assumes no obligation to update or revise any forward-looking information to reflect new circumstances or events. No securities regulatory authority has either approved or disapproved of the contents of this press release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Inside Information
This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No. 596/2014 on Market Abuse ("UK MAR"), as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018, and Regulation (EU) No. 596/2014 on Market Abuse ("EU MAR").

SOURCE: AEX Gold Inc.