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Original-Research: Desert Gold Ventures Inc. - from GBC AG

13.08.2025 / 08:00 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQ

Group.

The issuer is solely responsible for the content of this research. The

result of this research does not constitute investment advice or an

invitation to conclude certain stock exchange transactions.

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Classification of GBC AG to Desert Gold Ventures Inc.

Company Name: Desert Gold Ventures Inc.

ISIN: CA25039N4084

Reason for the research: Management Interview

Recommendation: Management Interview

Last rating change:

Analyst: Matthias Greiffenberger, Cosmin Filker

Desert Gold Ventures CEO Jared Scharf on Unlocking the Full Potential of

Mali's SMSZ Project

West Africa's gold belt has long been a hotspot for major discoveries, and

Desert Gold Ventures' SMSZ Project in Mali is shaping up to be something far

bigger than just another deposit. With only 10% of its gold resource

incorporated into its recent Preliminary Economic Assessment (PEA) and a

strong projected IRR supported by a low all-in sustaining cost, the project

is already showing the potential to become a multi-million-ounce mining

camp. CEO Jared Scharf sees this as just the beginning, with a modular

processing plant strategy enabling fast scalability, a pipeline of near-term

oxide expansion opportunities, and exploration upside across more than 30

gold zones. In this conversation, Scharf shares how Desert Gold plans to

leverage the current gold market cycle, balance near-term cash flow with

long-term growth, and evolve into a leading player in the West African

mining landscape.

GBC AG: Your PEA incorporates only 10% of the SMSZ Project's gold resources.

What's the broader opportunity when you start tapping into the remaining

90%? Is this just the beginning for Desert Gold?

Jared Scharf: The broader opportunity stems not only from the additional

million ounces of gold resources not yet included in the PEA, but also from

the significant exploration upside not factored into the current 1.1

million-ounce resource. The SMSZ Project has over 30 open gold zones on the

property, only five of which form part of the resource. The bigger picture

is to develop a multi-million-ounce mining camp with several large open pit

feeding one or possibly two major mining operations on the SMSZ property.

GBC AG: With a strong projected IRR of 34% and $71 million in after-tax cash

flow, what do you see as the most exciting levers to further enhance the

project's economics?

Jared Scharf: The 34% IRR assumes a gold price of $2,500 per ounce. At the

current gold price, the project IRR is over 50%. With an all-in sustaining

cost (AISC) of roughly $1,350 per ounce, the project demonstrates tremendou

leverage to the gold price while maintaining solid margins, even if price

pull back significantly. The most immediate opportunity is to incorporate

additional brownfield exploration targets located near the Barani starter

pit into the mine plan. I believe we could double or even triple the oxide

resources in the area in the near term. This would have a significant

positive impact on the project's economics by boosting annual gold

production and extending the mine life considerably before we transition to

the Gourbassi mine.

GBC AG: The modular processing plant strategy is both cost-effective and

flexible. How does this position Desert Gold to scale quickly and adapt to

new discoveries?

Jared Scharf: With so many gold zones on the SMSZ property, having a plant

that is movable yet capable of processing oxide, transition, and fresh rock

material gives us maximum flexibility. It allows us to incorporate both

existing gold zones and new discoveries into production quickly.

GBC AG: The Barani East permit allows for up to 36 kilotons per month of ore

processing. What would it take to double production and how soon could that

be realized?

Jared Scharf: As you can see from the PEA, the initial life of mine at 17

years is a bit long for a relatively small project. If we succeed in adding

more oxide resources in the Barani area, we will seriously consider ramping

up production to 36 thousand tonnes per month. This might shorten the mine

life by a few years, but it would generate more cash flow earlier in the

schedule, significantly boosting the project's net present value (NPV),

payback period, and IRR. Generating more cash flow sooner is alway

preferable.

GBC AG: How do you view the current global gold market and where do you

think we are in the broader gold cycle? What does that mean for a company

like Desert Gold?

Jared Scharf: Very good question. Broadly speaking, I expect the United

States to enter another cycle of monetary easing. I believe lower interest

rates are on the horizon, which is typically a major tailwind for gold. That

said, gold has already had a solid run, so there could be some near-term

downward pressure, but the medium- to long-term outlook has never been

stronger in my view. I expect prices to move higher over the next several

years.

In terms of gold equities, the majors, which are more liquid and widely held

by investors, have already seen strong valuation gains. Some select

developers and juniors have also performed well. However, valuations remain

extremely low compared to historical levels, especially in the junior space.

I believe we are still in the very early stages of a cyclical bull market in

gold equities.

GBC AG: How does Desert Gold balance near-term production goals with

long-term growth potential across your projects in Mali and Côte d'Ivoire?

Jared Scharf: These are not mutually exclusive initiatives. In fact, they

are complementary. Exploration success at the SMSZ Project will directly

enhance our mining plan for the reasons I have already mentioned. At the

same time, diversifying our jurisdictional risk into Côte d'Ivoire provide

our shareholders with both security and additional growth potential.

GBC AG: Looking three to five years ahead, what is your vision for Desert

Gold and how do you see the company evolving in the West African mining

landscape?

Jared Scharf: In three to five years, I envision the SMSZ Project producing

gold from two or more open pits, with multiple drill rigs operating

continuously to expand nearby gold zones. My hope is that once we get

started, we simply won't stop.

In Côte d'Ivoire, we plan to begin exploration immediately after this year'

rainy season, with a maiden drill program at our Tiegba Project. The goal

there is to make a major discovery.

GBC AG: Jared, thank you for sharing your insights and vision for Desert

Gold Ventures. We look forward to following the company's progress as the

SMSZ Project and your broader West African portfolio continue to advance.

Jared Scharf: Thank you. It's been a pleasure to share our story, and I'm

excited about what lies ahead for Desert Gold and our shareholders.

You can download the research here:

https://eqs-cockpit.com/c/fncls.ssp?u=575f6c745df3b166910c8ec30e9c4517

Contact for questions:

GBC AG

Halderstraße 27

86150 Augsburg

0821 / 241133 0

research@gbc-ag.de

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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR

Beim oben analysierten Unternehmen ist folgender möglicher

Interessenkonflikt gegeben: (5a,6a,7,11); Einen Katalog möglicher

Interessenkonflikte finden Sie unter:

https://www.gbc-ag.de/de/Offenlegung

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Date of Completion: 12.08.2025 (11:00 pm)

Date of First Distribution: 13.08.2025 (8:00 am)

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2182894 13.08.2025 CET/CEST

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