I-80 Gold Corp T.IAU

Sprott Report

[Ridgeback]

We see three main takeaways from today’s McCoy-Cove drilling.

First, today’s average of 10 holes of 7.0m @ 14.4g/t AuEq is world class and compares very well (grade is +29%) against the current 1.7Moz @ 11.2g/t AuEq resource.

Second, today’s excellent widths of several hits at ~8-10m true width (following up nicely with previous results from Cove here) continue to increase our confidence in geometry / grade / continuity of the orebody and hence reducing the execution risk.

Even better, at 30m spacing we expect to see a high conversion ratio of the inferred (1.4Moz @ 10.9g/t) to M&I in the upcoming MRE update, and eventually some of these ounces to fall into the FS mine plan.

Given the (i) good ground conditions there and (ii) the impressive widths amenable to bulk UG mining, we think Cove could potentially achieve a 1,500tpd mining rate rating as the largest of the three mines that I-80 has under development.

Third, while initial UG development is now completed and drill program at Helen/Gap zones will feed the FS welladvanced now are actions that de-risk the development of this asset, we note that 2201 (169koz inferred) and CSD (71koz indicated / 109koz inferred) remain out of the FS picture, leaving further runaway on exploration / ounce growth in one of NA’s highest grade gold mines, that is in-for-free given current market valuation.

For now, we maintain our BUY recommendation and C$5.30/sh based on unchanged multiples of 0.60xNAV5%-1850.

Looking ahead, a final decision and deal specific/valuation details of recently announced Ruby Hill JV MoU, MRE updates at Granite Creek (SCPe adding 0.5-1Moz at ~10g/t South Pacific Zone) and Ruby Hill (incl. a maiden base metals resource estimate), with the latter to see a PEA as well, remain the key catalysts for IAU. In our view, the market still misses the extent of funding derisking for Ruby Hill that the JV provides, while Granite Creek is expected to be cashflow positive in 2024, all pointing to a much better funding situation than the market assumes.

With (i) IAU trading at just 0.21xNAV vs peers at 0.5xNAV, and (ii) market sentiment turning on precious, we think I-80 has great value here and offers a value-accretive entry point for new investors should they add it to their register.

 I-80 is also completing a 40-day pump test to finalize property’s hydrogeological model and for final mine permitting purposes.

i-80 Gold, 20 November 2023 Page 2 E Q U I T Y R E S E A R C H Why we like I-80 1. Among highest grade open pit and underground development assets in US 2. One of only three companies with refractory sulphide processing facilities in Nevada 3. Ramping up underground methodically with US$82m of cash to support Catalysts • 2023: Ruby Deeps PEA/MRE • 2023: Ruby Hill permits • 1Q24: Ruby Hill JV MoU decision • 2H23-1H24: SCPe updated Granite Creek DFS/MRE • 1Q24: Initial Ruby Hill polymetallic resource • 2025: SCPe for updated McCoy-Cove MRE and DFS

[geolteacher]

Ridgeback - thanks for posting these analysts reports!