Gold Co. Receives Coverage and Large Target Price
Research Report

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Disclosures for Haywood Capital Markets, Thesis Gold Inc., December 9, 2024

This research report is only for informational purposes. Nothing contained in this report is, or should be, relied upon as a promise or representation as to the future performance. The opinions and information in this communication constitutes the current judgment of the authors as of the date and time of this report and are subject to change without notice. There is no representation, warranty or other assurance that any projections contained in this report will be realized. Past performance is not indicative of future results. This report is not intended to provide personal investment advice. Investors are encouraged to seek advice regarding the advisability or suitability of any investments or strategies discussed in this report. Individuals involved in the production of research materials operate independently and without influence from any other Haywood Securities Inc. departments, including Haywood Securities Inc. affiliates. This report is not and is not to be construed as: (i) an offer to sell or solicitation of an offer to buy securities; (ii) an offer to transact business in any jurisdiction; or (iii) investment advice to any party. It does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. Clients should consider whether any advice or recommendation in our research is suitable for their particular circumstances and, if appropriate, seek professional advice, including tax advice. Products and services described herein are only available where they can be lawfully provided. All research reports are disseminated and available to all clients simultaneously. No part of this material or any research report may be (i) copied, photocopied or duplicated in any form by any means or (ii) redistributed without the prior written consent of Haywood Securities Inc.

Analyst Certification I, Jamie Spratt, hereby certify that the views expressed in this report (which includes the rating assigned to the issuer’s shares as well as the analytical substance and tone of the report) accurately reflect my/our personal views about the subject securities and the issuer. No part of my/our compensation was, is, or will be directly or indirectly related to the specific recommendations.

Important Disclosures Of the companies included in the report the following Important Disclosures apply: Haywood Securities, Inc. has reviewed lead projects of this company and a portion of the expenses for this travel may have been reimbursed by the issuer.

Haywood Capital Markets analyst Jamie Spratt, in a research report published on December 9, 2024, initiated coverage on Thesis Gold Inc. (TAU:TSXV; THSGF:OTCQX; A3EP87:WKN) with a Buy rating and a price target of CA$3.00. The initiation follows the company's advancement of its 100% owned Lawyers-Ranch project in British Columbia's Toodoggone Mining District.

Spratt highlighted the project's strong economics, stating, "Thesis completed a PEA in September 2024 that demonstrated strong economics with an after-tax IRR of 35.2% and an after-tax NPV5% of CA$1.28B at US$1,930 [gold] Au and US$24 Ag increasing to 52.8% and CA$2.25B at US$2,500 Au and US$30 [silver] Ag."

The analyst emphasized the project's scale and quality, noting, "Resources have expanded quickly from the maiden resource of 132 koz in 2018 and now place the LR project as one of the largest gold-silver projects in Canada." He added that "The LR project would rank in the top 15 of operating Canadian gold mines and the bottom quartile of the cost curve."

Regarding valuation, Spratt stated, "We do not see this scarcity value reflected in the current valuation at US$17/ozEq and 0.21x P/NAV below peers at US$38/ozEq and 0.35x P/NAV. The stock trades at an 86% discount to recent Canadian development company acquisition multiples that have averaged US$123/oz."

Haywood's valuation methodology is based on a DCF approach. Spratt explained, "Our modeled DCF valuation parameters are largely in line with the PEA with some added conservatism on opex and capex. We have modeled initial production starting in 2030 generating average annual production of 169koz Au and 4.2Moz Ag at an AISC of US$1,108/oz AuEq."

The share price at the time of the report of CA$0.63 represents a potential return of approximately 376% to the analyst's CA$3.00 target price.