COLORADO SPRINGS, CO / ACCESSWIRE / November 2, 2021 / Fortitude Gold Corp. (OTCQB:FTCO) (the "Company") reported production and financial results for the third quarter ended September 30, 2021 of 11,478 ounces of gold produced at $793 per ounce all-in sustaining cost, $20.4 million net sales, and a $16.6 million increase to its treasury to $44.3 million from December 31, 2020. Fortitude Gold is a gold producer, developer, and explorer with operations in Nevada, U.S.A.

Q3 2021 FINANCIAL RESULTS AND HIGHLIGHTS

• $20.4 million net sales
• $4.6 million net income or $0.19 per share
• $44.3 million cash balance on September 30, 2021, an increase of $16.6 million from December 31, 2020
• 11,478 gold ounces produced
• 1.42 grams per tonne average gold grade mined
• $75.5 million working capital at September 30, 2021, an increase of $33.7 million from December 31, 2020
• $9.6 million mine gross profit
• $624 total cash cost after by-product credits per gold ounce sold
• $793 per gold ounce total all-in sustaining cost
• 16.7% dividend increase to $0.42 annually per share, subsequently increased by 14% to $0.48 per share

Overview of Q3 2021 Results

Fortitude Gold sold 11,454 gold ounces at a total cash cost of $624 per ounce (after by-product credits). Realized metal prices during the quarter averaged $1,789 per ounce gold*. The Company recorded net income of $4.6 million, or $0.19 per share. Cash and cash equivalents at quarter end totaled $44.3 million. The Company produced 11,478 ounces of gold during the quarter and maintains its 2021 upper range gold production Outlook of 45,000 gold ounces.

*Average realized metal prices include final settlement adjustments for previously unsettled provisional sales. Provisional sales may remain unsettled from one quarter into the next. Realized prices will therefore vary from average spot metal market prices upon final settlement.

Mr. Jason Reid, CEO and President of Fortitude Gold, stated, "The Isabella Pearl mine delivered another strong production quarter with 11,478 low-cost gold ounces keeping us on target to reach the high end of our 2021 production outlook range. Other third quarter highlights included net income of $4.6 million, a record cash balance of $44.3 million and a 16.7% dividend increase to $0.42 annually. This solid third quarter, following an exceptional 2021 first half, allowed the Company to increase its dividend in October, for a third time this year, to $0.04 per month, or $0.48 per year. We are pleased to be executing our strategic business strategy, outperforming our industry peers on year-to-date valuations and we are proud to be one of the few junior producers delivering substantial dividends to shareholders."

Mr. Reid continued, "Exploration during the quarter included a positive second round of drill results at the Scarlet target located on the Isabella Pearl property, as well as the Company's largest infill drill program to date at our Golden Mile property. We continue to target an initial resource at Golden Mile in 2021, with the goal to move the project towards a production decision at the earliest possible time. Column leach tests for Golden Mile mineralization were released during the third quarter estimating 85% gold recovery. We also received our permit to expand the heap leach pad at the Isabella Pearl project in July and began construction activities during the quarter with pad completion expected early 2022. We are excited to be a profitable gold producer in the Walker Lane Mineral Belt, with a stellar portfolio of 100% owned properties. We look forward to moving closer to building our second mine in Nevada, U.S.A, arguably the world's premier mining jurisdiction."

The following Production Statistics table summarizes certain information about our Isabella Pearl Mine for three and nine months ended September 30, 2021 and 2020:

The following Sales Statistics table summarizes certain information about our Isabella Pearl Mine for three and nine months ended September 30, 2021 and 2020:

See Accompanying Tables

The following information summarizes the results of operations for Fortitude Gold Corporation for the three and nine months ended September 30, 2021 and 2020, its financial condition at September 30, 2021 and December 31, 2020, and its cash flows for the nine months ended September 30, 2021 and 2020. The summary data as of September 30, 2021 and for the three and nine months ended September 30, 2021 and 2020 is unaudited; the summary data as of December 31, 2020 is derived from our audited financial statements contained in our annual report on Form 10-K for the year ended December 31, 2020, but do not include the footnotes and other information that is included in the complete financial statements. Readers are urged to review the Company's Form 10-K in its entirety, which can be found on the SEC's website at www.sec.gov.

The calculation of its cash cost before by-product credits per gold ounce sold, total cash cost after by-product credits per gold ounce sold and total all-in sustaining cost per gold ounce sold contained in this press release are non-GAAP financial measures. Please see "Management's Discussion and Analysis and Results of Operations" contained in the Company's most recent Form 10-K for a complete discussion and reconciliation of the non-GAAP measures.

FORTITUDE GOLD CORPORATION
CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands, except share and per share amounts)

FORTITUDE GOLD CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
For the three and nine months ended September 30, 2021 and 2020
(U.S. dollars in thousands, except share and per share amounts)
(Unaudited)

FORTITUDE GOLD CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the nine months ended September 30, 2021 and 2020
(U.S. dollars in thousands)
(Unaudited)

About Fortitude Gold Corp.:

Fortitude Gold is a U.S. based gold producer targeting projects with low operating costs, high margins, and strong returns on capital. The Company's strategy is to grow organically, remain debt-free and distribute substantial dividends. The Company's Nevada Mining Unit consists of five high-grade gold properties located in the Walker Lane Mineral Belt, with the Isabella Pearl gold mine in current production. Nevada, U.S.A. is among the world's premier mining friendly jurisdictions.

Cautionary Statements: This press release contains forward-looking statements that involve risks and uncertainties. If you are risk-averse you should NOT buy shares in Fortitude Gold Corp. The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. When used in this press release, the words "plan", "target", "anticipate," "believe," "estimate," "intend" and "expect" and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, without limitation, the statements regarding the Company's strategy, future plans for production, future expenses and costs, future liquidity and capital resources, and estimates of mineralized material are forward-looking statements. All forward-looking statements in this press release are based upon information available to the Company on the date of this press release, and the Company assumes no obligation to update any such forward-looking statements.

Forward looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. The Company's actual results could differ materially from those discussed in this press release. In particular, the scope, duration, and impact of the COVID-19 pandemic on mining operations, Company employees, and supply chains as well as the scope, duration and impact of government action aimed at mitigating the pandemic may cause future actual results to differ materially from those expressed or implied by any forward-looking statements. Also, there can be no assurance that production will continue at any specific rate.

Contact:

Greg Patterson
719-717-9825
greg.patterson@fortitudegold.com
www.Fortitudegold.com

SOURCE: Fortitude Gold Corp.