Skeena's Eskay Creek Mine Secures Transformative .02 Billion Financing

Skeena Resources, a leading mining company, has announced a groundbreaking .02 billion (US0 million) financing package for the redevelopment of its 100%-owned Eskay Creek mine in British Columbia's renowned Golden Triangle. This transformative deal paves the way for the mine's transition to open-pit production, solidifying its position as a premier gold and silver asset in the region.

Unlocking the Potential of Eskay Creek

A Storied Past, a Promising Future

The Eskay Creek mine has a rich history, having operated as an underground mine from 1994 to 2008. During its heyday, it was renowned as the highest-grade gold mine in the world, producing an impressive 3.3 million ounces of gold and 160 million ounces of silver at average grades of 45 g/t gold and 2,224 g/t silver. Now, with the new financing package in place, Skeena Resources is poised to revive the mine's legacy and unlock its full potential through open-pit operations.

Comprehensive Financing Solution

The .02 billion financing package, secured from Orion Resource Partners, comprises four key components:- 7 million equity investment at a premium to Skeena's share price- 3 million gold stream with an option to buy back up to two-thirds within 12 months of commercial production- 8 million senior secured loan with a 1% standby fee and no break fee- 7 million cost overrun facility in the form of an additional gold stream, subject to the same standby terms as the loanThis comprehensive financing solution provides Skeena with the necessary resources to advance the Eskay Creek project into production, while offering attractive cost of capital, flexibility, and optionality.

Fully Funded to Production

With the .02 billion financing package and Skeena's existing million cash position, the Eskay Creek project is now fully funded to production. This milestone achievement aligns with Skeena's strategic vision and validates the project's merits, further strengthening the company's position as a key player in the Golden Triangle.

Robust Feasibility Study

Skeena's recently completed definitive feasibility study for the Eskay Creek project has demonstrated the mine's exceptional potential. The study outlines a high-grade open-pit operation with an after-tax net present value (5% discount) of billion and an after-tax internal rate of return of 43%. Using a gold price of US,800/oz. and a silver price of US/oz., the project is expected to reach payback in just 1.2 years, with life-of-mine all-in sustaining costs of US7/oz.

Impressive Mineral Reserves and Resources

The Eskay Creek project boasts impressive mineral reserves and resources. The proven and probable reserves total 39.8 million tonnes grading 2.5 g/t gold and 68.7 g/t silver (3.6 g/t gold equivalent), containing an estimated 33 million ounces of gold and 88.0 million ounces of silver.The measured and indicated resource for the open-pit operation stands at 50.1 million tonnes grading 2.6 g/t gold and 63 g/t silver (3.4 g/t gold equivalent), containing an estimated 4.1 million ounces of gold and 101.4 million ounces of silver.

Bright Future Ahead

With the Eskay Creek project now fully funded, Skeena Resources is poised to transition the mine into open-pit production in the first half of 2027. The company expects annual production of 320,000 ounces of gold equivalent over a 12-year mine life, solidifying Eskay Creek's position as a premier gold and silver asset in the region.The successful financing package, coupled with the project's robust feasibility study and impressive mineral reserves and resources, positions Skeena Resources for a bright future as it unlocks the full potential of the Eskay Creek mine. This transformative development marks a significant milestone for the company and the mining industry in the Golden Triangle.