steppe - company update finalv1...steppe gold is a precious metals exploration and development...

1

TSXSymbol: STGO

TotalBasicSharesO/S(M): 42.9

MATTHEWWOODChairman,PresidentandCEO

BATAATUMUR-OCHIRDirectorandVicePresidentMongolia

ANEELWARAICHDirectorandExecutiveVicePresident

PATRICKMICHAELSDirector

DR.ZAMBABATJARGALDirector

LEWISMARKSDirector

SHELDONVANDERKOOYDirector

CONTACTINFORMATION

THECOMPANY’SHEADOFFICE:

Shangri-Laoffice,Suite1201,Olympicstreet19A,SukhbaatarDistrict1,Ulaanbaatar14241,MongoliaTel:+97677321914

TORONTOOFFICE:

90AdelaideStreet.W,Suite400Toronto,ONM5H3V9,CanadaTel:+16476970577

TRANSFERAGENT:

LoriWinchesterSeniorRelationshipManager,ClientManagement

Phone:+1416607-7898Cell:+1416671-4558Email:lori.winchester@tmx.com

Toronto,ON – SteppeGold Limited (TSX: STGO) – STEPPEDRAWSONSECOND UPFRONT DEPOSIT UNDER TRIPLE FLAG BERMUDA GOLDSTREAMANDREPAYSCENTERRANOTEFORATOPROJECTACQUISITION

TORONTO--SteppeGoldLimited(TSX:STGO)(the“Company”or“SteppeGold”)is pleased to announce that it hasmet the conditions to advance theUS$11.5millionSecondUpfrontDeposit availableunder its gold streamwithTriple FlagMining Finance Bermuda Ltd. (“Triple Flag Bermuda”) and Triple Flag hasacceptedanadvancerequestforUS$8.1milliontocoverforecastedexpendituresfordevelopmentoftheATOProjecttotheendoftheyear.Theadvancewillbemadeonamonthlybasis,withtheCompanyhavingalreadyreceivedanadvanceofUS$3.8milliontocoverOctoberexpendituresattheATOproject.ThebalanceoftheUS$8.1millionadvancewillbepaid intwotranchesofUS$2.6milliononOctober26,2018andUS$1.7milliononNovember26,2018.

TheCompanyand itssubsidiariesSteppeGoldLLCandSteppe InvestmentsLtd.(“SteppeBVI”)enteredintoametalspurchaseandsaleagreementdatedAugust11,2017(the“StreamAgreement”)withTripleFlagBermudapursuanttowhichSteppeBVIagreedtoselltoTripleFlagBermudaaportionofthegoldandsilverproduced from the ATO Project. Under the terms of the Stream Agreement,SteppeBVIisobligatedtoselltoTripleFlagBermuda25%ofthegoldand50%ofthesilverproducedfromtheATOProjectuntilsuchtimeasSteppeBVIhassoldanaggregateof46,000ouncesofgoldand375,000ouncesofsilver,respectively(the“DeliveryMilestones”).

AsconsiderationforthegrantofthestreambySteppeBVI,TripleFlagBermudaagreed tomakeanupfrontdepositagainst thepurchaseprice for thegoldandsilverofUS$23millionintwo$11.5milliontranches.ThefirsttrancheofUS$11.5million(the“InitialUpfrontDeposit”)wasadvancedonSeptember15,2017.Theadvance of the second tranche of US$11.5 million (the “Second UpfrontDeposit”) was subject to certain conditions including Steppe Mongolia havingexpended at least US$15 million on the ATO Project. The Second UpfrontDeposit can be drawn down in tranches representing 3-month forecastedexpenditures for development of the ATO Project. On completion of thedevelopmentoftheATOProject,anyamountoftheSecondUpfrontDepositthathasnotbeendrawndownwillbeadvancedasalumpsum.

The Company is also pleased to advise that it has repaid the US$5 millionpromissorynoteissuedtoCenterraGoldMongoliaLLC,asubsidiaryofCenterraGoldInc.,aspartofthepurchasepricefortheacquisitionbytheCompanyoftheATOProject. The remainingpromissory noteofUS$5millionheldbyCenterraandrepresentingthebalanceofthepurchasepricefortheATOProjectisdueonSeptember30,2019.

CAPITALIZATION

BOARDOFDIRECTORS

TSX:STGO

October15,2018

TSX:STGO

October14,2018

2

ABOUTTRIPLEFLAG

TripleFlagMiningFinanceBermudaLtd.andTripleFlagMiningFinanceLtd.togetherconstituteTripleFlag.TripleFlagprimarilytargetsstreamingandroyalty investmentsintheminingsectorwithbackingbyElliottManagementCorporation,anexperiencedglobalinvestmentfirmwithmorethan$30billionofassetsundermanagement. Triple Flag's investment focus is primarily on preciousmetals with amission to become aleadingsought-after long-termfundingpartnertominingcompaniesthroughoutthecommoditycycle.Formoreinformation,visithttp://www.tripleflagmining.com.

ABOUTSTEPPEGOLDSteppeGoldisapreciousmetalsexplorationanddevelopmentcompanywithanaggressivegrowthstrategyto build Steppe into the premier preciousmetals company inMongolia. The Company owns 100% of theadvanced staged Altan Tsaagan Ovoo Gold Project where resource expansion drilling and a heap leachdevelopmentiscurrentlyunderway.TheCompanyalsoowns80%oftheexcitingUudamKhundiiGoldProjectwhereanactiveexplorationprogramisunderwayandmakingnewdiscoveries.Mongoliaisopenforbusiness,prominingdevelopmentandoneofthe lastgreatfrontierswheregiantmineraldepositscanbefoundanddeveloped.