Special Edition - Q&A with Lake Victoria Gold

As promised, we have a special edition of Funding Secured this week featuring an exclusive Q&A with one of the most exciting early stage gold exploration companies in North America: Lake Victoria Gold (US:LVGLF, TSX-V:LVG).

Why are we interested in gold exploration?

In addition to the mining sector attracting some of the most capital out of any industry in recent months, there are other obvious reasons.

With inflation still running rampant, government spending soaring by the trillions, and no real solution in sight (other than a slowing DOGE), there are only a few true safe havens left in the world. Gold has always been one of them alongside silver, and now bitcoin. But gold is the ultimate.

And what’s happening right now with gold miners is borderline absurd.

With average all-in sustaining costs (AISC) around $1,500/oz, many miners are now generating free cash flow margins of 57% at today’s prices. That’s $2,000 in free cash flow per ounce. This kind of leverage to the price of gold is explosive.

Let’s break it down:

• A miner producing at $1,500 and selling at $2,000? That’s 25% free cash flow margin.
  

• At $2,500 gold? That jumps to 40%.
  

• At $3,500 gold—where we are now—that’s $2,000/oz in the money, or a 57% free cash flow!

Margins like this aren’t just good, they’re generational. And here’s where it gets even better…

The real opportunity lies with new miners, developers, and near-term producers, companies that are just 6 to 12 months away from production. Especially those that are still flying under the radar and haven’t re-rated yet.

That’s the sweet spot.

And that’s why we’re bringing you Lake Victoria Gold today, with an exclusive CEO interview.

What is Lake Victoria Gold (US:LVGLF, TSX-V:LVG)?

Lake Victoria Gold is a rapidly growing gold exploration and development company focused on unlocking world-class gold deposits in Tanzania’s prolific Lake Victoria Goldfield. With a 100% interest in the fully permitted Imwelo Project and the high-potential Tembo Project adjacent to Barrick’s 20Moz Bulyanhulu Mine, LVG is poised for near-term production and long-term growth. Backed by strategic partnerships with Barrick Gold and Taifa Group, and a management team owning over 60% of shares, LVG is executing a disciplined strategy to deliver shareholder value.

Join us for our exclusive interview with Lake Victoria Gold’s CEO, Marc Cernovitch.

Q: Can you elaborate on your timeline to first gold production at your two properties, and what you see as the biggest operational risk or bottleneck that could delay production or ramp-up?

A: We are targeting first gold production at Tembo via a small-scale JV in H2 2025, and full-scale production at Imwelo in H1 2026. With a renewed 10-year Mining Licence at Imwelo and permits secured, construction is advancing. The largest risks relate to bureaucratic approvals or supply chain delays, but we’ve mitigated these with experienced local partners and established contractors. Our team has done this before, and we’re well positioned to deliver on schedule.

Q: With an AISC of approximately $1400 at Imwelo, can you walk us through what $2000 an oz of profitability would do for the company?

A: A potential $2000/oz profit margin at Imwelo, based on an estimated AISC of $1400/oz and a gold price of $3400/oz, would generate transformative cash flow. For a projected 12,000 oz annual production in year one with a plan to double production in year 3, the profitability is significant. This robust cash flow will accelerate exploration at Tembo and Imwelo, and fund organic growth, all while minimizing dilution. LVG is in an ideal position to drive significant shareholder and return on equity.

Q: How will the $15M capex for Imwelo be funded? Any risks?

A: We’ve already secured key pieces of the financing puzzle, that are such a challenge for many junior miners. We signed a term sheet for a non-dilutive gold prepay facility with Monetary Metals, tied to up-to 7,000 oz of future production. We are in advanced discussions with local banks for additional debt, and our Tanzanian partner, Taifa Group (owned by the country’s wealthiest businessman), has already completed the first tranche (16M shares at 0.22) of its three-stage equity investment. The regulatory approval processes, permitting and mining license renewals were timing risks that are now behind us. With a newly renewed 10 year mining license in place and strong Tanzanian partners, we’re well-positioned to secure funding.

Q: You highlight substantial exploration potential at both Imwelo and Tembo. Is the plan to fund future exploration using cash flow from mining? With USD$24,000,000 per year in est. cash flow, that is going to fund a lot of exploration!

A: Yes, cash flow from both Tembo (2025) and Imwelo (2026) will fund aggressive exploration programs. These near-term producers are a means to a larger end: unlocking the broader potential of our land packages.

At Tembo, over 50,000m of drilling has tested just 15% of known structural targets across a 32 km² license. Multiple high-grade intercepts and close proximity to Barrick’s Bulyanhulu Mine suggest district-scale discovery potential.

At Imwelo, prior drilling averaged only 50 metres in depth and focused narrowly on defining a starter pit to justify a production decision. As such, there is significant untested upside at depth, along strike, and in between existing pit shells. Our 2025 drilling will include infill, step-out, and deeper holes aimed at resource expansion, grade improvement, and future underground potential.

Exploration remains central to our value creation strategy and will be increasingly self-funded as production begins.

Q: Can you discuss how the Barrick partnership is structured, what they’re doing, how much they’ve invested, and how this can help you?

A: Our partnership with Barrick validates the value and strategic positioning of the Tembo project. In 2021, we sold six non-core licenses to Barrick for $6M upfront, with up to $45M in contingent payments tied to Barrick’s exploration success. As part of the transaction they bought 5.5M shares of LVG at 0.27 making them a significant partner. Barrick has spent approximately $5M of a $9M exploration commitment, sharing valuable data that enhances the Tembo strategy. This confirms Tembo’s potential as a district-scale asset and provides non-dilutive upside, positioning LVG as a potential acquisition target as Barrick consolidates the region.

Q: LVG’s management team has deep mining experience. Can you highlight specific past projects or roles where the team has successfully developed similar assets?

A: Our team’s track record and diverse skill sets is a key strength. COO Seth Dickinson is a mining engineer with 30 years of experience and led the team that developed Imwelo from claim to Mining Licence. Tanzanian Managing Director David Scott, is the former Technical Services Manager at Barrick’s Bulyanhulu and brings 40 years of African gold expertise. Executive Chairman Simon Benstead and I bring a combined 50 years of capital markets experience and are surrounded by advisors and partners that help us see our blind spots.

Q: What do you see as the most significant catalysts, both operational and financial, that could drive a re-rating of the stock in the next 6-12 months?

A: We see a continuum of catalysts and re-rating opportunities as investors embark on a journey with us as we march towards production. We are working on finalizing our agreement with Nyati and will start the work programs at Tembo that will lead to production and cash flow in 2025. Construction at Imwelo will begin imminently and lead to the first gold pour in H1 2026. Barrick is accelerating their exploration on the Tembo licences we sold them and the first resource estimate is expected in H2 2026, potentially triggering a meaningful contingency payment for LVG. New drill results at Tembo and Imwelo, targeting high-grade zones, along with the commencement of first cash flow from operations—expected at Tembo in 2025 and Imwelo in 2026—are all key near-term catalysts that could drive a meaningful re-rating.

Q: Can you elaborate on your cap table and share ownership structure, how many shares are outstanding, what percent does management own?

A: LVG has approximately ~147M shares outstanding, with management, directors, and strategic partners owning over 70%, aligning us closely with shareholders. Taifa Group holds a significant equity stake, and Barrick’s investment further validates our story. There are no warrants and no options currently outstanding and there is no cheap paper in the market. The float is tight, and the shareholder base is strongly aligned with value creation.

Q: Any last takeaways you want our readers to know?

A: Lake Victoria Gold is at an inflection point. With production on the horizon, district-scale potential, and strategic partnerships with Barrick and Taifa, we’re building a platform for significant growth. Our experienced team, high insider ownership, and non-dilutive financing strategy position LVG as a compelling investment in a soaring gold market.

The price of gold creates an environment that benefits advanced projects, even if they are relatively small in scale. In our first year of production, there is potential for cash flow that is more than our current market cap. With $2,000 margins, and upwards of 12,000 ounces a year, there is tremendous incentive to get into production ASAP.

We hope you’ve enjoyed this Special Edition of Funding Secured.

Visit www.lakevictoriagold.com for more information.