Desert Gold Signs Option Agreement on 297 Square Kilometre Tiegba Gold Project in Ivory Coast

Rhea-AI Summary

Desert Gold Ventures (DAUGF) has signed an option agreement to acquire a 90% interest in the 297 km² Tiegba Gold Project in Ivory Coast from Flower Holdings SARLU. The deal requires Desert Gold to pay USD $450,000 ($150,000 paid upfront) and issue 1.5M common shares in three installments. The Tiegba Project, located 188km west of Abidjan, features a 4.2km by 2.1km gold-in-soil anomalous trend along the Tehini Shear Zone, with samples exceeding 900 ppb gold. The project is strategically positioned near major gold deposits including Agbaou, Bonikro/Hire, and Yaouré. The property remains largely underexplored with less than 20% explored and has never been drill tested despite promising surface results. Desert Gold plans to conduct expanded soil sampling, airborne magnetic surveys, and IP surveys to define drill targets.

Positive

• Strategic expansion into Ivory Coast's investor-friendly mining jurisdiction
• Large 297km² land package in Tier-1 Birimian gold belt near multi-million-ounce deposits
• Significant exploration potential with less than 20% of property explored
• Strong gold-in-soil anomalies with values exceeding 900 ppb gold
• Reasonable acquisition terms with $450,000 cash and 1.5M shares over multiple payments

Negative

• Project requires significant exploration investment with no drilling conducted yet
• Company will need to carry all costs through mine feasibility
• 1% NSR royalty obligation to Flower Holdings
• Additional dilution from 1.5M share issuance to Flower Holdings

Delta, British Columbia--(Newsfile Corp. - June 23, 2025) - Desert Gold Ventures Inc. (TSXV: DAU) (FSE: QXR2) (OTCQB: DAUGF) ("Desert Gold" or "the Company") is pleased to announce that the Company has entered into an option agreement (the "Agreement") with Flower Holdings SARLU ("Flower") to acquire a 90% interest in the Tiegba Gold Project. Flower is a private company located in Abidjan, Ivory Coast. The signing of the Tiegba option agreement marks a major milestone for the Company as it expands its project portfolio to become a regionally diversified gold explorer and developer in West Africa.

Tiegba Project Highlights

• The Tiegba Project is in Ivory Coast which has one of the most accommodative and investor friendly mining codes in the region;
  • Politically stable
  • Fast permitting
  • Excellent infrastructure
  • Major discoveries made in recent years with new mines coming online such as Montage Gold's Koné Project
• Large 297km² strategic land package in Tier-1 Birimian orogenic gold belt (see Image 3.);
  • Underexplored. Less than 20% of the Tiegba license has been explored representing significant exploration blue sky
• Located near multi-million-ounce deposits (See Image 2) including;
  • Agbaou (Allied Gold Corp)
  • Bonikro/Hire (Allied Gold Corp)
  • Yaouré (Perseus Mining Ltd)
• Large 4.2 km by 2.1km gold-in-soil anomalous trend along key regional structure; Tehini Shear Zone (see Image 1);
  • Multiple parallel mineralized trends with values exceeding 900 ppb gold including 89 samples over 50 ppb gold, 29 samples between 100 and 200 ppb gold and 12 samples over 200 ppb gold
  • Tiegba has never been drill tested despite compelling surface results
  • Company site visit confirms in-situ nature of gold anomalies
• Upcoming exploration program aims to quickly define drill targets;
  • Infill and expanded soil grids
  • Property-wide airborne magnetic and IP Surveys
  • Targeted trenching, geological mapping and prospecting

Desert Gold's CEO Jared Scharf commented "The completion of the Tiegba option agreement is a major milestone diversifying the Company into a regional West African player. During the spring, our technical team evaluated a dozen projects in the region covering over 1,000km². Tiegba ticked all the boxes. We look forward to quickly advancing the obvious and compelling gold prospects on the property into drill ready targets."

Image 1. Tiegba Planview highlighting 4.2km by 2.1km Anomalous Gold Trend

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/4954/256417_87cdb8a4c4321b94_001full.jpg

Image 2. Tiegba License Regional Scale Planview Map

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/4954/256417_87cdb8a4c4321b94_002full.jpg

Image 3. Tiegba Project Country Scale Map Highlighting Major Gold Projects

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/4954/256417_87cdb8a4c4321b94_003full.jpg

Key Terms of the Flower Option Agreement

• Desert Gold will pay Flower of total of USD $450,000 over the term of the Agreement, of which USD $150,000 has been paid upon signing of the Agreement with the remaining balance to be paid in two equal instalments on the first anniversary of the agreement and the final payment being made of the first permit renewal;
• Desert Gold will issue a total of 1,500,000 common shares to Flower in three (3) equal instalments along with the cash payments. Share issuances are subject to TSXV statutory hold periods;
• Upon completion of the cash and share payments to Flower, Desert Gold will have satisfied the terms of the Agreement earning a 90% interest in the Tiegba license. Flower's 10% interest will be free carried through Mine Feasibility. Thereafter Flower will be subject to standard form pro-rata dilution clauses.
• Flower shall retain a one percent (1%) net smelter royalty on all ore mined from the Tiegba license;
• Desert Gold will retain a right of first refusal ("ROFR") of any sale of Flower's NSR and or 10% minority interest.
• During the option period, Desert Gold will be responsible for maintaining the Tiegba permit in good standing and satisfy any and all obligations required by Ivorian law and will take over operational control of the Tiegba project on closing of the transaction with Flower.

Tiegba Project Details
The Tiegba Project is located approximately 188km west of the Capital city Abidjan and covers an area of 296.9km² within the underexplored Tehini Greenstone Belt (See Image 3.). The Tehini Belt extends northward towards Burkina Faso, where it hosts major active gold deposits such as Houndé (5.2 million ounces ["Moz"] Au) and Mana (2.3 Moz Au). Importantly, the northwestern extension of the Tiégba Project trends toward the Bonikro Agbaou gold complex and the Yaouré gold mine (See image 2.):

• Agbaou Deposit¹
  • Proven and Probable Reserves (9.49 Mt @ 1.50g/t = 458 koz)
  • Measured and Inferred (9.33 Mt @2.10 g/t = 631 koz)
• Boniko & Hire Deposits¹
  • Proven and Probable Reserves (11.98 Mt @1.15 g/t = 444 koz)
  • Measured and Inferred (40.21Mt @ 1.30g/t = 1.68 Moz)
• Yaoure²
  • Proven and Probable Reserves (35.2 Mt @1.53 g/t = 1.73 Moz)
  • Measured and Inferred (55.6 Mt @1.52 g/t = 2.7 Moz)

Geology
The Tiegba Project is part of the Paleoproterozoic Birimian terranes which consists of a northeast-trending sequence of volcanic/volcano sedimentary rocks and syn- to late-tectonic granitoids features characteristic of gold-bearing greenstone belts across West Africa.

The local geology of the Tiegba Project exhibits strong similarities to the Bonikro-Agbaou gold district. Notably, calc-alkaline intrusive bodies have been mapped along both the western and eastern margins of the permit area. These intrusions are considered favorable hosts for gold mineralisation, particularly along their contacts, within high-strain structural corridors, and at the intersection of quartz vein networks. These geological features represent high-priority targets for follow-up exploration.

Historical soil geochemistry data, originally collected by Newcrest Mining Limited, identified a prominent north-northeast trending gold-in-soil anomaly approximately 4.2km in length within the Tiegba Project area. Peak gold values exceed 900 ppb Au. These levels of soil samples are well above typical background levels for Birimian greenstone belts. These anomalies appear to be spatially associated with the Tehini Shear Zone, a major regional structure that transects the property. This mineralized corridor has also been proven prospective on adjacent ground to the southwest, currently being advanced by Thor Explorations Ltd. (see Thor news release dated September 16, 2024)³.

Desert Gold Site Visit
As part of Desert Gold's initial due diligence, a site visit was conducted by its technical team in March 2025 to assess the prospectivity of the Tiegba permit. Field observations confirmed elevated soil anomalies coincident with sub-outcropping bedrock and transitional zones containing residual lithological fragments and dispersed quartz float. These features are interpreted as supportive of an in-situ mineralized source, with a geochemical anomaly resulting from primary dispersion processes.

Work Plans
Despite the presence of well-defined gold-in-soil anomalies, the Tiegba project remains untested by drilling. To date, only a small portion of the property has undergone systematic evaluation (<20%). Desert Gold plans to validate the historical soil data through the expansion of soil sampling grids and targeted infill sampling to better define geochemical trends.

Desert Gold intends to conduct a property-wide geophysical survey to improve understanding of the underlying structural architecture. This work will support the effective planning of additional soil sampling, trenching, detailed geological mapping, and prospecting activities, all aimed to quickly advance the project toward its first drill program.

SMSZ Project Preliminary Economic Assessment ("PEA") Update
Desert Gold's previously announced SMSZ Project PEA is near completion. The company expects to publish initial results in the coming weeks.

Stock Option Issuance
The Company has issued a total of 1,000,000 incentive stock options to certain directors, employees and consultants of the Company. The stock options have an exercise price of CAD $0.08 and a duration of five (5) years from the date of issuance.

On Behalf of the Board of Directors
"Sonny Janda"
___________________________
Sonny Janda
Chairman

About Desert Gold Ventures
Desert Gold Ventures Inc. is a gold exploration and development company which controls the 440 km² SMSZ Project in Western Mali containing Measured and Indicated Mineral Resources of 8.47 million tonnes grading 1.14 g/t gold totaling 310,300 ounces and Inferred Mineral Resources of 20.7 million tonnes grading 1.16 g/t gold totaling 769,200 ounces. For further information please visit www.SEDARplus.ca under the company's profile. Website: www.desertgold.ca.

Contact
Jared Scharf, President and CEO
Email: jared.scharf@desertgold.ca

Qualified Person Statement
The scientific and technical information contained in this news release has been reviewed and approved by Ty Magee (M.Sc., P. Geo), a Qualified Person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects. Mr. Magee is an advisor and consultant to Desert Gold Ventures and is considered independent of the Company.

QAQC
The historical soil geochemical results referenced herein were originally collected by Newcrest Mining Limited and have not yet been independently verified by Desert Gold. While the dataset demonstrates strong coherence with regional structural features and prospective geology, the reliability of the sampling methods, analytical techniques, and quality control measures implemented during the historical program is currently unknown, nor public. As such, these results should be considered historical in nature. Desert Gold intends to validate the historical dataset through a systematic QA/QC program as part of its upcoming exploration activities. This will include the implementation of industry-standard protocols involving: Certified reference materials (standards), Field duplicates, Blank samples, Chain-of-custody procedures. These measures will be employed to ensure the accuracy and reproducibility of future sampling results, and to establish a compliant geochemical database to guide follow-up work including trenching, geophysics, and potential drilling.

References
¹ Allied Gold Corporation. (2024). Annual Information Form and Technical Summary - 2024 (pp. 42-44). Retrieved from https://www.alliedgold.com/files/documents/Allied-Gold-AIF-2024.pdf
²Perseus Mining Limited. (2024, August). Annual Resource and Reserve Statement - FY2024. Retrieved from https://perseusmining.com/wp-content/uploads/2024/08/FY24-Resource-Reserve-Update.pdf
³Thor Explorations Ltd. (September 16, 2024). "Thor Explorations Announces the Acquisition of the Guitry Project and Expansion into Côte d'Ivoire"

This news release contains forward-looking statements respecting the Company's ability to successfully complete the Offering. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Such statements are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such statements, including the inability of the Company to successfully complete the Offering. These uncertainties and risks include, but are not limited to, the strength of the capital markets, the price of gold; operational, funding, and liquidity risks; the degree to which mineral resource estimates are reflective of actual mineral resources; and the degree to which factors which would make a mineral deposit commercially viable are present; the risks and hazards associated with mining operations. Risks and uncertainties about the Company's business are more fully discussed in the company's disclosure materials filed with the securities regulatory authorities in Canada and available at www.sedarplus.ca and readers are urged to read these materials. The Company assumes no obligation to update any forward-looking statement or to update the reasons why actual results could differ from such statements unless required by law. Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein in the United States. The securities described herein have not been and will not be registered under the united states securities act of 1933, as amended, and may not be offered or sold in the united states or to the account or benefit of a U.S. person absent an exemption from the registration requirements of such act.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/256417

FAQ

What is the size and location of Desert Gold's new Tiegba Gold Project?

The Tiegba Gold Project is a 297 square kilometer property located 188km west of Abidjan in Ivory Coast, situated in the Tehini Greenstone Belt.

What are the terms of DAUGF's option agreement for the Tiegba Project?

Desert Gold will pay USD $450,000 and issue 1.5M common shares in three installments to acquire 90% interest, with Flower Holdings retaining a 1% NSR and 10% free-carried interest through mine feasibility.

What are the key exploration results at the Tiegba Gold Project?

The project features a 4.2km by 2.1km gold-in-soil anomalous trend with values exceeding 900 ppb gold, including 89 samples over 50 ppb gold and 12 samples over 200 ppb gold.

What major gold deposits are located near Desert Gold's Tiegba Project?

The project is near the Agbaou (458 koz reserves), Bonikro/Hire (444 koz reserves), and Yaouré (1.73 Moz reserves) gold deposits.

What are Desert Gold's immediate exploration plans for Tiegba?

Desert Gold plans to conduct expanded soil sampling grids, property-wide airborne magnetic and IP surveys, targeted trenching, geological mapping, and prospecting to define drill targets.