U.S. Gold Corp Chairman Explains How His Gold and Copper Assets Can Exploit A Current Storm Of 2024 Opportunity

Cheyenne, Wyoming--(Newsfile Corp. - May 9, 2024) - Publicly traded U.S. Gold Corp. (NasdaqCM: USAU) is advancing an ambitious 2024 gold and copper exploration and development mission. At least three projects, and their potential, have helped push USAU shares higher by over 13% in April, outpacing copper and nearly 3X the percentage increase of gold. The company's flagship asset, and nearest to production, is its Southeast Wyoming located CK Gold Project. Two other projects may not be far behind, its Keystone exploration property on the Cortez Trend in Nevada and its Challis Gold Project in Idaho. To find out more about the company, its recent appreciation, and the value inherent to its assets, Hawk Point Media reached out to Luke Norman, U.S. Gold Corp. Chairman and Co-Founder, to get his take on why 2023 can be considered a setup year and 2024 a potential breakout one. Here's what he said:

Q: Luke, U.S. Gold Corp stock has had quite a run in April, up over 13% at this interview. Since that's where investors focus first, let's start with this question: Is that a precursor to better trading days ahead?

A: Whilst I can't really comment on share price movements, as the adage says, the market is never wrong - I do believe that this is a precursor to better trading days ahead for us. A lot of fundamental milestones are on the near-term horizon for us as a Company. I feel that those milestones can, and will, set us apart from the crowd in our industry and allow us to trade at levels closer to the value metrics that would be representative of us in a normalized market place.

Q: And it's not the only asset you expect to be a value driver, correct?

A: Copper King (CK) in Wyoming is our flagship asset, yes. However, Keystone, in Nevada, is one of those assets that could be a life-changer for us as a company. A district scale asset with near identical geology to the monster Cortez Hills complex (Barrick Gold Corporation) of mines next door. We have a suite of assets that are truly world-class, and all located in the US.

Q: So, with CK Gold being the most near-term value driver, can you speculate on how it can impact the bottom line?

A: Well I mentioned a "normalized market" in my first answer, so I am glad to expand on that. CK is a truly unique deposit. Tremendous location, just 20Mi west of Cheyenne Wyoming. We have a reserve of ~1M oz of gold and ~248M lbs of copper. Using our pre-feasibility numbers from December of 2021, which was based upon a $1625 gold price and $3.25 copper (currently gold $~$2350 and copper ~$4.50), our project has a Net Present Value of around $323M. usually calculations for a company's market-cap would be between .4 - .6 of that value (between $129M - $190M). We currently trade around $44M. Now that again is based purely off of a reserve calculation. We represent our combined gold and copper reserve in a gold equivalence value - (so 1.44M oz gold equivalent, or 1.44Moz AuEq.). In a jurisdiction like Wyoming, there is often a case where these reserves would be valued at closer to $200 per oz of gold in the ground…so you can do the math on that for yourselves. And none of those calculations take into consideration the fact that we are soon to be a "shovel-ready" fully permitted project.

However, this is where CK gets really interesting. During our engineering phase, we discovered what we have valued as "waste rock" is actually a highly valuable aggregates material. SO the potential to bring in upwards of 30M tons of waste rock, into an aggregates value to that NPV is a very real proposition. It would have a very big upside impact into an already valuable project.

As a side-note, we think our copper component is going to continue to bring valuations higher. Copper was recently designated as a critical mineral in the US. As the US moves towards the electrification of the automotive industry, along with huge demand from AI server networks, copper demand vs supply is going to drive domestic copper demand massively. (Update: On May 8, 2024, U.S. Gold Corp announced Mine Operating Permit Approval for the CK Gold Project in Wyoming. See update HERE)

Q: With only about 10.7 million shares outstanding in the last report, that could be extrapolated to significant earnings per share?

A: In a production scenario, and again using our historic PFS, the cashflow to shares would be impressive. But of course that would require a combination of debt and equity capital, that would be difficult to calculate off the cuff.

Q: Along the same lines of bottom-line growth, U.S. Gold Corp. must still provide evidence that those dollars can contribute toward EPS sooner rather than later. Do you have value drivers in the queue that you can discuss?

A: Permits to mine are a huge advantage to any project. We are in the final stages of receiving ours - which is a considerable milestone. Combine that with our intent to look at our aggregates potential, flourishing metals prices and a post production scenario where our finished open-pit might act as a water reservoir, the value drivers are just starting to be brought forward.

Q: When researching U.S. Gold Corp, what stood out is the magnitude of potential in play for what's considered a junior mining company. There are so many details that investors must truly go to your website and open the presentations to understand why investors have a bullish bias for your stock. There is simply too much detail to provide in a single interview. So, provide in fewer words why U.S. Gold Corp. may be at a transformational period in its history?

A: With a pedigree team, led by George Bee, who has been involved in some of the largest gold mines on the planet, we are very well leveraged to the coming bull-cycle in metals. A very rare and tight share-structure, and a US based asset. It's a great time to take a serious look at us and discuss with your investment advisor.

End interview

Published with permission from Hawk Point Media Group, Llc.

About U.S. Gold Corp.
U.S. Gold Corp. is a publicly traded, U.S.-focused gold development and exploration company. U.S. Gold Corp. has a portfolio of exploration properties. The CK Gold Project is located in Southeast Wyoming and has a Preliminary Feasibility Study technical report, which was completed by Gustavson Associates, LLC. Keystone is an exploration property on the Cortez Trend in Nevada. The Challis Gold Project is located in Idaho. For more information about U.S. Gold Corp., please visit www.usgoldcorp.gold.

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Safe Harbor

Certain statements in this shareholder letter are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of forward-looking words such as "anticipate," "believe," "forecast," "estimated," and "intend," among others. These forward-looking statements include statements related to the Company's attendance and participation in PDAC 2024; the attendance and participation by investors, mining companies and industry service providers at the Conference; and the Company's plans to update investors on the Company's operational progress at the CK Gold Project (including the expected timing of the Mine Operating Permit), the Company's strategy for permitting a Plan of Operations to explore the Challis Gold Project, the systematic exploration at the Keystone Project and the Company's thesis for its 2024 gold and copper market dynamics and prices outlook. These forward-looking statements are based on U.S. Gold Corp.'s current expectations, and actual results could differ materially from such statements. There are a number of factors that could cause actual events to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to, risks arising from: the prevailing market conditions for metal prices and mining industry cost inputs, environmental and regulatory risks, COVID-19 risks, risks faced by junior companies generally engaged in exploration activities, whether U.S. Gold will be able to raise sufficient capital to implement future drilling programs, the success or failure of future drilling programs, changes to assumptions contained in our preliminary feasibility study, and other factors described in the Company's most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K filed with the Securities and Exchange Commission, which can be reviewed at www.sec.gov. The Company has based these forward-looking statements on its current expectations and assumptions about future events. While management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory, and other risks, contingencies, and uncertainties, most of which are difficult to predict and many of which are beyond the Company's control. The Company makes no representation or warranty that the information contained herein is complete and accurate and we have no duty to correct or update any information contained herein.

For further information
U.S. Gold Corp.
Investor Relations
+1 800 557 4550
www.usgoldcorp.gold

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