Amaroq Minerals Ltd. Q3 2022 Financial Results and 2023 Objectives

The Financial Statements and the accompanying Management Discussion and Analysis are available on the Corporation's website at www.amaroqminerals.com and will be filed under the Corporation's SEDAR profile at www.sedar.com later today. All figures are in Canadian dollars unless otherwise noted.

Q3 2022 Highlights

• Significant progress across Amaroq's portfolio within Greenland during the period, with work plans completed on schedule and within budget.
• Publication of an updated Nalunaq Mineral Resource Estimate (MRE) with reported Total Inferred Mineral Resource of 355.0Kt @ 28.0g/t Au for 320Koz gold, and confirming the project as falling within the top 2% of deposits in terms of grade globally.
• Commencement of the planning stages of a bulk sampling project at Nalunaq to assess the optimal path forward for mine development, and working towards first cashflow generation.
• Additional drilling completed across two further projects at Sava and at Vagar Ridge, with results expected in Q4 and follow up exploration and drilling planned for 2023.
• Geophysical surveys completed at Nanoq and North Sava, with the results currently being processed with further ground exploration conducted in the Eagle's Nest and Kobberminbugt areas.
• C$11m allocated to exploration and development of the Corporation's significant Greenlandic assets in the nine months ended September 30, 2022.

Post-period Highlights

• Promising discovery of Copper, Molybdenum and Gold at the Sava licence during the 2022 exploration programme.
• Completion of £30m Capital Fundraising (circa C$46.4 million) in London and Iceland to accelerate development of the Company's precious metals portfolio.
• Signing of final documentation in relation to the ACAM joint venture for the exploration and development of Amaroq's strategic mineral assets and receipt of initial £18m funding (circa C$28.5 million) is expected to close in Q1 2023, subject to limited regulatory conditions being satisfied.
• Listing of Icelandic Depository Receipts on the Nasdaq First North Growth Market in Iceland with the first day of trading being November 1, 2022.

2023 Precious Metals Objectives

• Focus on progressing Nalunaq to the next phase of development, to underpin the development of the wider portfolio.
• Nalunaq: Extraction of an initial bulk sample to elevate the Inferred Mineral Resources to the Indicated category, provide mining access to the orebody and demonstrate revenue generation potential. Drilling programme to take place, targeting an extension to the Inferred Resources in the Mountain Block and to generate further targets in the Welcome Block.
• Vagar Ridge: Following limited drilling during 2022 due to weather conditions, Amaroq will finalize the scout drilling programme to improve the understanding of the geology and mineralisation of the discovery.
• Nanoq: Scout drilling programme to take place following geophysical results, targeting surface exposures to improve understanding of the geology and structure.
• Regional: Gold target generation programme will continue across the Vagar licence and the greater area.

2023 Strategic Minerals Objectives

• Accelerate exploration of Strategic Minerals assets in line with the ACAM Joint Venture agreement.
• Sava / North Sava: Further scout drilling on 3+ targets as well as infill drilling at Target South and Target West. Systematic surface sampling to expand Target North and define further iron oxide, copper, gold (IOCG) prospectivity.
• Stendalen: Airborne geophysical survey and a first strategraphic drill hole through the prospective geological units.
• Paatasoq: Ground-based targeting to take place across Gardar age intrusion targeting Rare Earth mineralisation
• Kobberminebugt: Airborne geophysical survey to assess the location, size and depth of the skarn style mineralisation.

2023 Operational Priorities

• Finalization of ABD Solutions survey to assess the suitability of the Nalunaq site for vehicle automation. Amaroq will continue discussions with ABD Solutions to determine the next steps.
• Amaroq's development programme will require significant equipment and the Company will be evaluating procurement options in 2023 to ensure availability of equipment and services.
• Amaroq is in dialogue with the Greenlandic government and a team of experts to assess potential for green energy production in Greenland. The Company's priority focus is to establish how green energy can be sourced to supply Amaroq's sites and how the Company can cooperate with the government to help facilitate the development of green energy within Greenland.

Eldur Olafsson, CEO of Amaroq, commented:

"Amaroq is now the most active private investor in Greenland, and we continue to make excellent strategic progress in the region. We are now focused on advancing our cornerstone Nalunaq project to the next phase of development, with an initial bulk sample expected in 2023. We also continue to progress exploration work at our key growth targets and remain on schedule with our plans, with geophysical surveys and additional drilling completed throughout the period.

"I am also pleased to present our priority objectives for 2023. We have developed an exciting programme to accelerate growth across our portfolio, and I look forward to providing an update on our progress."

Selected Financial Information

The following selected financial data is extracted from the Financial Statements for the three and nine months ended September 30, 2022.

Financial Results

Financial Position

Enquiries:

Amaroq Minerals Ltd.
Eldur Olafsson, Executive Director and CEO
+354 665 2003
eo@amaroqminerals.com

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

Stifel Nicolaus Europe Limited (Nominated Adviser and Broker)
Callum Stewart
Varun Talwar
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
Elfie Kent
Charlie Dingwall
+44 (0) 20 3757 4980

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Amaroq Minerals: Unaudited Condensed Interim Consolidated Financial Statements for the three and nine Months Ended September 30, 2022
Consolidated Statements of Financial Position
(Unaudited, in Canadian Dollars)

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

Consolidated Statements of Comprehensive Loss
(Unaudited, in Canadian Dollars)

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.

Consolidated Statements of Cash Flows
(Unaudited, in Canadian Dollars)

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

Condensed Notes to the interim Consolidated Financial Statements
Three and nine months ended September 30, 2022 and 2021
(Unaudited, in Canadian Dollars)

1. NATURE OF OPERATIONS, BASIS OF PRESENTATION

Amaroq Minerals Ltd. (the "Corporation") (previously known as AEX Gold Inc.) 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"), since July 2020, the Corporation's shares are also listed on the AIM market of the London Stock Exchange ("AIM") and from November 1, 2022, on Nasdaq First North Growth Market Iceland ("Nasdaq") under the AMRQ ticker.

These unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2022 ("Financial Statements") were approved by the Board of Directors on November 28, 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 $545,919 ($122,672 for the nine months ended September 30, 2021) was expensed as exploration and evaluation expenses during the nine months ended September 30, 2022.

As at September 30, 2022, the Corporation had capital asset purchase commitments, net of deposit on order, of $nil ($939,016 as at September 30, 2021). These commitments related to purchases of equipment, infrastructure and vehicles.

As of September 30, 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

The Corporation has one lease for its office. In October 2020, the Corporation started the lease for five years and five months including five free rent months during this period. The monthly rent is $8,825 until March 2024 and $9,070 for the balance of the lease. The Corporation has the option to renew the lease for an additional five-year period at $9,070 monthly rent indexed annually to the increase of the consumer price index of the previous year for the Montreal area.

6. STOCK OPTIONS

An incentive stock option plan (the "Plan") was approved initially in 2017 and renewed by shareholders on June 16, 2022. 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 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.

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. Total stock-based compensation costs amount to $32,267 for an estimated fair value of $0.44 per option. The fair value of the options granted was estimated using the Black-Scholes model with no expected dividend yield, 68.9% expected volatility, 2.7% risk-free interest rate and a 5-year term. The expected life and expected volatility were estimated by benchmarking comparable companies to the Corporation.

On July 14, 2022, the Corporation granted an employee 39,062 stock options with an exercise price of $0.64 and expiry date of July 14, 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. Total stock-based compensation costs amount to $14,844 for an estimated fair value of $0.38 per option. The fair value of the options granted was estimated using the Black-Scholes model with no expected dividend yield, 69% expected volatility, 3.1% risk-free interest rate and a 5-year term. The expected life and expected volatility were estimated by benchmarking comparable companies to the Corporation.

Changes in stock options are as follows:

Stock options outstanding and exercisable as at September 30, 2022 are as follows:

7. EXPLORATION AND EVALUATION EXPENSES

8. GENERAL AND ADMINISTRATION

9. SUBSEQUENT EVENTS

9.1 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 market capitalisation of the Corporation at the time of signature. Orano has a right of first refusal on any sales or transfer of licenses. The acquisition became effective on November 14, 2022 when all related transfer documents were signed by the Government of Greenland.

9.2 ACAM LP Joint Venture

On June 10, 2022, the Corporation announced that it had signed a non-binding head of terms with ACAM LP ("ACAM") to establish a special purpose vehicle (the "SPV") and create a joint venture (the "JV") for the exploration and development of its Strategic Mineral assets for a combined contribution of $58.0 million (GBP 36.7 million). Subject to negotiation of the final terms of the JV, ACAM will invest $28.5 million (GBP 18 million) in exchange for a 49% shareholding in the SPV, with Amaroq holding 51%. Amaroq is expected to contribute its strategic non-precious mineral (i.e. non-gold) licences as well as a contribution in kind, valued, in aggregate, at $29.5 million (GBP 18.7 million) in the form of site support, logistics and overhead costs associated with utilizing its existing infrastructure in Southern Greenland to support the JV's activities. The transfer of these licences is subject to approval from the Greenland Government. An option for further future funding of $16.0 million (GBP 10.0 million) is also potentially available on the achievement of agreed milestones. The final documentation of the deal was executed on October 19, 2022 and the initial funding is expected in Q1 2023 subject to certain regulatory conditions precedent.

9.3 Fundraising and First North Listing

On November 3, 2022, the Corporation successfully completed a capital fundraising as well as a listing on the Nasdaq First North Growth Iceland Exchange. The Corporation completed the fundraising by issuing 85,714,285 common shares at a price of GBP 0.35, $0.54 or ISK 56.77 per share, for a gross proceeds to the Corporation of $46,162,053.

The Fundraising is complemented by the joint venture between the Corporation and ACAM, announced on June 10, 2022 and finalized on October 19, 2022 under which the Corporation will establish a strategic mineral focused exploration subsidiary to hold certain licences in which the majority of resource is expected to relate to non-gold minerals. In addition to the Fundraising, the Corporation has now executed final documentation in relation to the ACAM joint venture, with closing and receipt of the initial $28.5 million (GBP 18 million) funding now only subject to certain regulatory conditions precedent, and is expected to close in Q1 2023.

Arion Bank hf. and Landsbankinn hf. acted as agents in connection with the Icelandic Fundraising. In consideration for their services, the agents received a cash commission equal to $1,668,318. Stifel Nicolaus Europe Limited ("Stifel") acted as sole bookrunner, nominated adviser and broker on the UK Placing and Panmure Gordon (UK) Limited ("Panmure Gordon"; together with Stifel, the "UK Banks") acted as manager and broker in relation to the UK Placing. In consideration for their services, they received a cash commission equal to $451,311.

Certain officers and directors of the Corporation purchased an aggregate of 4,972,871 common shares for gross proceeds of $2,700,132. The officers and directors of the Corporation subscribed to the Fundraising under the same terms and conditions as set forth for all subscribers.

Further Information:

About Amaroq Minerals

Amaroq Minerals' principal business objectives are the identification, acquisition, exploration, and development of gold and strategic metal properties in Greenland. The Company'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 and strategic metal assets covering 7,866.85km ² , the largest mineral portfolio in Southern Greenland covering the two known gold belts in the region. Amaroq Minerals 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.

Glossary

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 Mineral Resource Estimate was prepared by Dr Lucy Roberts, MAusIMM(CP), Principal Consultant (Resource Geology), SRK Consulting (UK) Limited., an independent Qualified Person in accordance with the requirements of National Instrument 43-101 ("NI 43-101"). Dr Roberts has approved the disclosure herein.

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

SOURCE: Amaroq Minerals Ltd.