AEX Gold Inc. - 2022 Objectives and First Quarter Financial Results

AEX Gold's strategy remains to bring the Nalunaq gold project back into production and use that base as a platform to discover and develop other world class gold and strategic mineral assets both directly and through partnerships to be found in the under explored OECD jurisdiction that is Greenland.

2022 activity highlights

• Nalunaq: Core drilling from up to four rigs within and extension to the Valley Block aimed at increasing resources and confidence and to prepare the ground for potential new infrastructure development and bulk sample.
• Vagar Ridge: New core drilling programme using two rigs aimed at quantifying the scale of the discovery as well as the depth potential.
• Vagar Licence: Further geological mapping and sampling across five new targets identified by the 2021 exploration programme.
• Nanoq: Subject to the 2021 exploration results, expected to be released imminently, the Company's intent is to prepare for airborne geophysical survey across the target and along a 20km long structural corridor linking the discovery to the Jokum's Shear gold/copper occurrence.
• Sava and North Sava: Maiden scout core drilling programme to test IOCG mineralisation style identified within three target areas identified in 2021 as well as an extended airborne geophysical survey and geochemical sampling programme across North Sava.
• Stendalen: Airborne geophysical surveys and geological reconnaissance on recorded Ni/Cu sulphide mineralisation to define best drilling locations for a 2023 core drilling programme.
• Regional: further geological reconnaissance and sampling across Eagle's Nest gold target and Kobbermineburgt copper targets as well as sampling across Paatusoq Rare Earth target in preparation for more detailed exploration in 2023.
• Operational readiness: One of AEX's key regional differentiators, its all-weather exploration camp remains open with Geological and drill personnel inbound to commence 2022 field season; contracts being finalised with ALS Geochemistry for the installation of an onsite sample preparation laboratory; and most key contracts in place with service providers and equipment including four drill rigs, helicopters and boat charters and geological supplies.
• Cash balance of $23.8M at March 31, 2022.

Eldur Olafsson, CEO of AEX Gold, commented:

"After a very positive year of drilling and exploration in 2021 where amongst other things we confirmed a new high grade resource block at Nalunaq and a much larger scale to the Vagar Ridge discovery than we had imagined, we plan to build on this success in 2022 with an active drilling and geological programme across our ever-growing portfolio to test the size and prospectivity. We expect this programme to evolve as the season goes forward as we are still expecting results from our Nanoq Licence, which are due imminently, from regional assets and results from our Nørrearm Graphite samples, expected in H2.

"We have also made great strides within our strategic mineral and rare earths business, where Greenland is fast becoming the last frontier for Western developed nations to secure these valuable minerals which will play such an important role in the energy transition. In recognition of this potential, the Company has announced its intention to change its name from AEX Gold to Amaroq Minerals post the AGM on 16^th June 2022."

Precious Metals 2022 Exploration Work Programme:

Nalunaq

• The 2022 exploration programme intends to provide further resource development through both infill and strike extension drilling across the Valley Block, informed by the Dolerite Dyke Model. To facilitate this program the Company will develop up to two new drill access roads from the existing mountain surface infrastructure.
• The programme will also include the underground assessment of extensions to the Target and Mountain Blocks, including the footwall vein, in order to further refine the Company's geological model and resource growth target areas.
• Subject to drill results, the 2022 exploration programme will provide AEX with the optionality of investigating additional underground infrastructure and an underground bulk sample in 2023 with an option for toll treatment off-site subject to discussions with the Government of Greenland. This would be used as a development step to increase resource confidence and de-risk the resource ahead of possible mine construction in 2024/2025, subject to permitting and funding.
• The Company has started discussion with mine contractors in order to mitigate delays, as the lead time is on average 12 months in the industry today.
• The Company is in the process of updating its Environmental Impact Assessment (EIA) and Social Impact Assessment (SIA), which as previously announced it expects to complete over the course of the next year.

Vagar Ridge

• The 2021 exploration results have significantly increased the Vagar Ridge footprint, confirming its potential to be a multi-million ounce prospect, adding to AEX's substantial portfolio of prospective gold assets.
• AEX believes that Vagar Ridge may host up to four Orogenic gold veins with new rock chip samples giving up to 86.7 g/t gold.
• 2022 activity: AEX intends to mobilise two helicopter supported drill rigs to conduct the first core drilling on the discovery since 2013. This programme will aim to test the scale of the discovery and prepare it for more resource focused drilling. It will also aim to develop more evidence of Intrusion Related Gold mineralisation style across the target.

Vagar Licence Targets

• The 2021 Vagar Licence exploration programme included hyperspectral imaging, reconnaissance sampling and a 385 km² high resolution airborne magnetic survey, interpreted by SRK Consulting.
• These results has defined a significant deformation zone that extends for more than 50 km across the Vagar licence and into AEX's neighbouring licences, highlighting five further high priority targets similar to Vagar Ridge
• 2022 activity: These five targets will be further investigated and sampled this year with a view to providing potential further drill targets in the next few years, depending upon results.

Nanoq Gold

• 2022 activity: Subject to the 2021 Nanoq exploration results which are currently being analysed and are expected to be released imminently, the Company intends to prepare for an airborne geophysical survey across the Nanoq discovery and across an interpreted structural corridor linking it to the Jokum's Shear target 20km to the south.

Eagle's Nest (Anoritooq licence)

• 2022 activity: Subject to the assessment of the 2021 exploration results in the area which are still being analysed, the Company intend to continue its early-stage geological reconnaissance mapping and sampling aimed at making further Orogenic gold discoveries north of Nalunaq.

Strategic Mineral Targets 2022 Exploration Work Programme:

General

• Significant 3,527.75 km² mineral licence area has been acquired from Orano, taking AEX's total land package in South Greenland to 7,615.85km² and substantially increasing the Company's exposure to Base and Strategic Minerals.
• The acquisition means the Company will become the largest licence holder in South Greenland, and the third largest in Greenland, after Anglo American and Greenfields Exploration.
• AEX's ongoing Mineral System Modelling highlights the potential of Southern Greenland to host significant strategic metal deposits. These new licences sit within a interpreted Laurasian Mineral Belt connecting Eastern Canada through Greenland to Scandinavia that hosts World Class mineral deposits such as Voisey's Bay (Canada), Gardar Province (Greenland), and the Kiruna IOCG belt (Scandinavia). Work programmes at Sava have illustrated Iron Ore, Copper, Gold ("IOCG") style signatures across three target areas

Sava and North Sava

• 2021 Work programs at Sava have identified a IOCG (Iron Oxide, Copper Gold) and Porphyry Copper belt situated in close proximity to the international airport at Narsarsaq. North Sava has provided historical grab samples up to 382 g/t Gold (Au), 3.4% Copper (Cu), 3.7% Zinc (Zn), 100 g/t Silver (Ag), 19% Niobium (Nb), 2.2% Zirconium (Zr).
• 2022 activity: at Sava a maiden scout core drilling programme will test the mineralisation and alteration assemblage at the three targets developed during the course of 2021. These targets will also be further extended by additional geochemical sampling across the licence area. At North Sava, the Company will build upon the interpretations of Orano and conduct a remote sensing programme and airborne geophysical survey that will provide coverage across both licences and it is hoped that this will indicate further high priority targets for 2023.

The Stendalen Iron-Vanadium-Titanium layered intrusive

• Previously explored by GEUS, Softrock Mineral and NunaMineral A/S. This intrusive is 8km in diameter and hosts a magnetic layer up to 20m thick which has provided historical samples yielding between 1-10.5% Titanium Dioxide (TiO₂₎ (average of 4.8%) and 226-5,753ppm Vanadium (V) (average 2,335ppm).
• Stendalen also host the potential for Nickel (Ni), Copper (Cu) and Platinum Group Element (PGE) mineralisation with grab samples proving grades of 0.8% Copper (Cu), 0.5% Nickel (Ni) and 0.1% Cobalt (Co).
• 2022 activity: the Company intend to conduct an airborne geophysical (ZTEM) survey over the intrusion in order to understand its scale, structure and potential for deep sulphide mineralisation signatures. This will be coupled with a ground assessment of the reported Ni/Cu sulphide mineralisation in the contact areas of the intrusion. Finally, the Company will assess drill locations and site logistics ahead of a core drilling programme in 2023 subject to results.

Kobberminebugt

• 2022 activity: The Company intend to conduct further geological reconnaissance mapping and sampling in and around the former producing Josva copper mine in order to understand the style of mineralisation and extent potential. Further occurrences will also be explored further along the granite / sediment contact zone.

The Paatusoq Rare Earth Element, Niobium, Tantalum, Zirconium project

• This syenite complex is 20 km in diameter covering an area of ~240 km² within an unexplored section of the Gardar Province.
• 2022 activity: This new critical metals target within the licences acquired from Orano shall be visited during the 2022 field programme to conduct additional geochemical sampling to test the styles of mineralisation and its relationship to the wider Gardar Province that also hosts the Kvanefjeld and Tanbreez rare earth projects.

In addition to these named programmes, the Company intends to assess numerous other gold targets within the Nanortalik gold belt and several identified graphite targets similar to that already being explored by AEX at Nørrearm and GreenRoc at the Amitsoq Project.

AEX Infrastructure support

• The new all-weather 50-person camp remains open and the first field crew is already on site preparing for the 2022 field season.
• The Company have a drilling contract in place with two rigs already on site with a further two rigs inbound.
• The Company is also finalising contracts with ALS Geochemistry to install a Containerised Preparation Laboratory (CPL) at Nalunaq to service the company's requirements through 2022 and beyond. This laboratory will allow the Company to provide more regular samples for full chemical assay and provide shorter assaying lead-times that are significantly stretched globally.

AEX Gold Financial Results

• The Corporation had a cash balance of $23.8 million at March 31, 2022 ($27.3 million at December 31, 2021), with no debt, and total working capital of $22.6 million ($25.2 million at December 31, 2021).
• Exploration and evaluation expenses during the period were $1.0 million (Q1 2021: $1.2 million), predominantly on the Nalunaq Property.
• General and administrative expenses during the period were $3.0 million (Q1 2021: $1.6 million), with the increase as a result of share-based compensation granted to its officers, employees and consultants.

Selected Financial Information

The following selected financial data is extracted from the Financial Statements for the three months ended March 31, 2022.

Financial Results

Financial Position

Enquiries:
AEX Gold Inc.
Eldur Olafsson, Director and CEO
+354 665 2003
eo@aexgold.com

Eddie Wyvill, Investor Relations
+44 (0) 7713 126727
ew@aexgold.com

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

Panmure Gordon (UK) Limited (Joint Broker)
John Prior
Hugh Rich
Dougie Mcleod
+44 (0) 20 7886 2500

SI Capital Limited (Joint Broker)
Nick Emerson
Charlie Stephenson
+44 (0) 1483 413500

Camarco (Financial PR)
Billy Clegg
Emily Hall
Charlie Dingwall+44 (0) 20 3757 4980

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AEX Gold Inc.: Unaudited Condensed Interim Consolidated Financial Statements for the Three Months Ended March 31, 2022

AEX Gold Inc.
Consolidated Statements of Financial Position
(Unaudited, in Canadian Dollars)

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.

AEX Gold Inc.
Consolidated Statements of Comprehensive Loss
(Unaudited, in Canadian Dollars)

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.

AEX Gold Inc.
Consolidated Statements of Changes in Equity
(Unaudited, in Canadian Dollars)

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.

AEX Gold Inc.
Consolidated Statements of Cash Flows
(Unaudited, in Canadian Dollars)

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.

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, 2022 ("Financial Statements") were approved by the Board of Directors on May 27, 2022.

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, 2021 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, 2021.

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 past 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, 2021. 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 $181,833 ($49,316 for the three months ended March 31, 2021) was expensed as exploration and evaluation expenses during the three months ended March 31, 2022.

As at March 31, 2022, the Corporation had capital asset purchase commitments, net of deposit on order, of $nil ($6,597,326 as at March 31, 2021). These commitments related to purchases of equipment, infrastructure and vehicles.

As of March 31, 2022, the amount of $7,522,085 of construction in progress is related to equipment and infrastructure received or in storage and which will be installed at the appropriate time. Equipment and infrastructure include process plant components that are not yet available for use.

5. LEASE LIABILITIES

6. STOCK OPTIONS

An incentive stock option plan (the "Plan") was approved initially in 2017 and renewed by shareholders on June 9, 2021. 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, directors, employees and consultants. The Board of directors grants 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.

On January 17, 2022, the Corporation granted to its officers, employees and consultant 4,100,000 stock options with an exercise price of $0.60 and expiry date of January 17, 2027. The stock options vested 100% at the grant date. The options were granted at an exercise price equal to the closing market price of the shares the day prior to the grant. Total stock-based compensation costs amount to $1,435,000 for an estimated fair value of $0.35 per option. The fair value of the options granted was estimated using the Black-Scholes model with no expected dividend yield, 69.38% expected volatility, 1.51% risk-free interest rate and a 5 year term. The expected life and expected volatility were estimated by benchmarking comparable companies to the Corporation.

6. STOCK OPTIONS (CONT'D)

Changes in stock options are as follows:

Stock options outstanding and exercisable as at March 31, 2022 are as follows:

7. EXPLORATION AND EVALUATION EXPENSES

8. GENERAL AND ADMINISTRATION

9. SUBSEQUENT EVENTS

9.1 Options granted

On April 20, 2022, the Corporation granted a senior employee 73,333 stock options with an exercise price of $0.75 and expiry date of April 20, 2027. The stock options vested 100% at the grant date. The options were granted with an exercise price equal to the closing market price of the shares the day prior to the grant.

9.2 Acquisition of Significant Strategic Mineral Land Package in South Greenland

On May 12, 2022, the Corporation announced that it has acquired mineral exploration licences No. 2020-41 and 2021-11 (the "Licences") covering areas in South Greenland from Orano Group ("Orano") for zero upfront consideration but in exchange for a 0.5% contractual, gross revenue royalty (GRR), based on potential future sales of minerals exploited on the licences. The GRR is paid annually and capped at US$10 million ("Royalties Cap"). The Royalties Cap is subject to an annual inflation adjustment, with an ultimate cap limited to the current market capitalisation of the Corporation. Orano has a right of first refusal on any sales or transfer of these licenses. The acquisition is subject to approval from the Greenland Government.

Further Information:

About AEX

AEX's principal business objectives are the identification, acquisition, exploration and development of gold properties in Greenland. The Company's principal asset is a 100% interest in the Nalunaq Project, an advanced exploration stage property with an exploitation licence including the previously operating Nalunaq gold mine. The Company has a portfolio of gold assets covering 7,615.85km², 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 Company's current expectations regarding future events and the future growth of the Company'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 Company'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 Company'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 Company and speaks only as of the date on which it is made. Except as required by applicable securities laws, the Company 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").

Qualified Person Statement

The technical information presented in this press release has been approved by James Gilbertson CGeol, VP Exploration for AEX Gold and a Chartered Geologist with the Geological Society of London, and as such a Qualified Person as defined by NI 43-101

SOURCE: AEX Gold Inc.