Kiboko Gold Inc. is providing a progress report and update for its Phase 1 drill program at its Harricana Gold Project. The Harricana Gold Project (the Project or Harricana Project) is located 55 kilometres north of Val-d'Or, Québec, in the world-renowned Abitibi gold belt. Highlights: 7,121 m of drilling over 48 holes completed since mid-September; Assay results are pending; Revised Phase 1 drilling expected to total 11,000 m over 67 holes; Maiden mineral resource targeted for second quarter 2023 (from first quarter 23); Revised Phase 1 exploration program is fully funded.

7,121 m of drilling over 48 holes completed since mid-September: Since the Phase 1 drill program commenced in mid-September at the Fontana area of the Harricana Project a total of 7,121 metres (m) have been drilled over 48 holes, consisting of 2,778 m over 14 orientated HQ diamond drillholes and 4,343 m over 34 reverse-circulation (RC) drillholes. Drilling is expected to pause in early December and resume following the arrival of winter ground conditions in early 2023. Assay results are pending: Due to laboratory staffing issues, turnaround times for assay results have been materially below contracted ranges, resulting in an enormous backlog of samples waiting to be assayed.

While the Company has been assured that the laboratory's staffing issues will be remedied, these delays have extended the Company's timeline for completing the Phase 1 exploration program to the second quarter of 2023 (from the first quarter of 2023). Maiden mineral resource targeted for second quarter of 2023: The Company believes that the areas targeted in the Phase 1 exploration program have the potential to support a near-surface, pit-constrained mineral resource estimate. In anticipation of reporting a maiden mineral resource, the Company has contracted WSP Golder for the preparation of an updated technical report for the Harricana Project.

As a result of the laboratory delays, the Company is now targeting the reporting of a maiden mineral resource for a portion of the Fontana area of the Project during the second quarter of 2023 (from the first quarter of 2023). Laboratory delays have also affected the Company's ability to prioritize drilling locations for a Phase 2 exploration program at Fontana for which permitting is underway. Phase 1 drilling expected to total 11,000 m over 67 holes and be completed in first quarter/2023: Drilling is expected to pause in early December while the Company awaits the arrival of winter ground conditions.

The winter portion of the Phase 1 program is expected to consist of 12 diamond drillholes totaling 2,600 m and be completed during the first quarter of 2023. Several holes that were originally planned as part of Phase 1, totaling approximately 1,400 m of drilling, have been deferred or will no longer be drilled due to difficult topography. As a result, the Phase 1 drill program is expected to total 11,000 m over 67 holes, versus the 12,450 m over 82 holes originally planned.

Revised Phase 1 exploration program is fully funded: The cost of the Phase 1 exploration program is expected to be higher than estimated in the Harricana Technical Report (as defined herein), which was based upon quotes and estimates received in January 2022. The expected cost increase is attributed to soaring global inflation; significant increases in labour, equipment, and consumable costs; and a slower than expected ramp up in drilling productivity. There is an unprecedented demand for workers causing a global skills shortage, resulting in a tightening and highly competitive labour market.

Consequently, the direct and indirect costs of attracting and retaining qualified personnel with the critical skills necessary to manage and execute exploration programs has increased significantly. The Company has fortunately been able to secure qualified and competent personnel and reliable equipment, but at a higher-than-expected cost. Due to the tightness in the local labour market, most personnel have been sourced from other regions of Québec, resulting in significantly higher travel and accommodation expenses.

Similarly, the scarcity of local equipment rentals and certain consumables has necessitated procurement from other regions of Québec, also contributing to higher costs. Additionally, the ramp-up time to achieve the expected range of drilling rates for both diamond and RC drilling was significantly longer than expected. This lower-than-expected drilling productivity at the onset of the program has extended the timeline to complete the drill program resulting in higher overall exploration program costs.

Kiboko has updated its revised Phase 1 exploration program budget to reflect current exploration costs, productivity, and expected timelines. The budgeted cost of the Phase 1 exploration program as outlined in the May 2022 Harricana Technical Report, and based upon January 2022 quotes, was $2.7 million, which included 12,450 m of drilling over 82 drillholes. The revised Phase 1 exploration program, which is planned to include 11,000 m of drilling over 67 holes and an updated technical report, is expected to cost approximately $4 million and be funded from existing working capital.