GEODRILL ANNOUNCES 2023 FIRST QUARTER FINANCIAL RESULTS

- Continued Strong Demand for Drilling Services -

TORONTO, May 9, 2023 /CNW/ - Geodrill Limited ("Geodrill" or the "Company") (TSX: GEO) (OTCQX: GEODF), a leading West African based drilling company, reported its financial results for the three months ended March 31, 2023. All figures are reported in U.S. dollars ($), unless otherwise indicated. Geodrill's financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS").

• Generated the best ever first quarter revenue (the second highest ever quarterly revenue in the Company's history) of $37.6M, representing a 12% increase compared to $33.4M for Q1-2022;
• Increased gross profit to $12.2M or 32% of revenue, compared to a gross profit of $9.8M or 29% of revenue for Q1-2022;
• Recorded EBITDA of $10.5M or 28% of revenue, compared to $10.4M for Q1-2022; excluding the gain from equity investments in Q1-2022 the EBITDA for Q1-2022 would have been $9.3M or 28%1 ;
• Generated record net income for Q1-2023 of $6.1M, or $0.13 per Ordinary Share compared to $6.0M for Q1-2022, or $0.13 per Ordinary Share; excluding the gain from equity investments in Q1-2022 the net income for Q1-2022 would have been $4.9M or $0.11 per Ordinary Share1 ;
• Achieved a Return on Capital Employed (ROCE) of 24% and a Return on Equity (ROE) of 17%;
• Ended the quarter with net cash (excluding lease liabilities) of $9.2M;
• Achieved new milestone of 11.6M LTI free hours;
• Continued to develop a diversified geographical and commodity strategy into South America where the Company is drilling for green EV metals; and
• Deployed additional rigs in Chile.

• Demand for drilling services has continued to increase and the Company expects the robust mining and exploration cycle will continue in 2023;
• Gold price continues to provide a strong tailwind for exploration drilling; and
• Expanding geographical reach and commodity diversification.

"Geodrill has delivered outstanding results over multiple reporting periods generating impressive results in the first quarter of 2023. Our pace of growth continues to fortify our financial position, and is a reflection of the momentum of our growth strategy, underpinned by a strong customer base, a fleet of high performance rigs and an experienced workforce. We will continue to focus on maintaining a solid balance sheet while executing drilling programs for the remainder of the year," said Geodrill Chief Financial Officer Greg Borsk.

"Our operational and financial performance underscores our commitment to execute best-in-class drilling services on multiple, long-term contracts, providing recurring revenues and cash flow visibility. With a rising price environment for both gold and other minerals, we will continue to create value for shareholders by focusing on margin expansion while increasing our geographic footprint in Egypt and South America," said Dave Harper, President and CEO of Geodrill.

Geodrill's consolidated financial statements and management's discussion & analysis ("MD&A"), for the three and twelve month periods ended March 31, 2023, are available via Geodrill's website at www.geodrill-gh.com and will be available on SEDAR at www.sedar.com.

The Company's Annual and Special Meeting of Shareholders (the "Meeting") will be held at the Company's registered office: Ragnall House, 18 Peel Road, Douglas, Isle of Man, on Tuesday May 9, 2023, at 10:00am EST. The Company will only conduct the formal legal business at the Meeting and provide access via a teleconference. The Company requests that shareholders vote in advance by voting on-line as noted on their proxy form, or sending in their proxy forms as outlined in the Management Information Circular filed on SEDAR on April 6, 2023 and mailed to shareholders.

You can join the call by dialing 1-888-664-6392 or 416-764-8659. A live audio webcast of the conference call will also be available through:

https://app.webinar.net/xvA3GL3KZ75

Following the Annual and Special Meeting, management of the Company will host a conference call at 10:30 am EST to discuss the financial results.

You can join the call by dialing 1-888-664-6392 or local 416-764-8659. To instantly join the conference call by phone, please use the following URL to easily register yourself and be connected into the conference call automatically: https://app.webinar.net/RlMPyVRyz3Q

Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be needed to hear the webcast. An archived replay of the webcast will be available for 90 days. Operator Assisted Toll-Free Dial-In Number: (888) 231-8192.

Geodrill has been successful in establishing a leading market position in Ghana, Cote d'Ivoire and Mali. The Company also operates in other African jurisdictions including Egypt and is expanding its geographic presence in South America. With the largest fleet of multi-purpose rigs, Geodrill provides a broad selection of diverse drilling services, including exploration, delineation, underground and grade control drilling, to meet the specific needs of its clients. The Company's client mix is made up of senior mining, intermediate and junior exploration companies. www.geodrill-gh.com

EBITDA is defined as Earnings before Interest, Taxes, Depreciation and Amortization and is used as a measure of financial performance. The Company believes EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties to evaluate companies in the industry. However, EBITDA is not a measure recognized by IFRS and does not have a standardized meaning prescribed by IFRS. EBITDA should not be viewed in isolation and does not purport to be an alternative to net income or gross profit as an indicator of operating performance or cash flows from operating activities as a measure of liquidity. EBITDA does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similarly titled measures presented by other publicly traded companies, and EBITDA should not be construed as an alternative to other financial measures determined in accordance with IFRS.

Additionally, EBITDA is not intended to be a measure of free cash flow for management's discretionary use, as it does not consider certain cash requirements such as capital expenditures, contractual commitments, interest payments, tax payments and debt service requirements. Please see the Company's MD&A for the three and twelve month periods ended December 31, 2022 for the EBITDA reconciliation.

This press release may contain "forward-looking information" which may include, but is not limited to the future financial or operating performance of the Company, its subsidiaries, future growth, results of operations, performance, business prospects and opportunities. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "believes", or variations (including negative variations) of such words and phrases, or by the use of words or phrases that state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.

Forward-looking statements are based on certain assumptions and analyses made by the Company in light of its experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements contained in this press release including, without limitation those described in the Management's Discussion & Analysis for the quarter ended December 31, 2022 and the Company's Annual Information Form dated March 30, 2023 under the heading "Risk Factors". Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in such forward-looking statements, there may be other factors that may cause actions, events or results to differ from those anticipated, estimated or intended. Should one or more of these risks or uncertainties materialize or should assumptions underlying such forward-looking statements prove incorrect, actual results, performance or achievements may vary materially from those expressed or implied by the forward-looking statements contained in this press release. The forward-looking information and forward-looking statements contained herein are made as of the date of this press release and the Company disclaims any obligation to update or review such information or statements, whether as a result of new information, future events or otherwise, except as required by law.

SOURCE Geodrill Limited

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