It has been just over two weeks since our most recent press release updating our exciting progress towards gold production at our Massala project (News – Compass Gold Corp) and our Zoom presentation to a group of our Shareholders and Debenture Holders. Since that time, a lot of good things have happened for Compass. I would like to provide you with a brief update through this letter. I will take you through what is happening on the ground at Massala, the latest news from the Malian Mining Ministry that becomes effective today, and finally, some important international mining and finance developments relating to Mali that have just been announced.
On the Ground at Massala
Let me start by updating you on our progress on site at Massala. Last week, our Compass team worked to complete the final step required to receive our Environmental Permit for the Massala Small Mine operation. Two separate Community Consultation Sessions were completed, including site inspections and an open discussion forum, moderated by officials from the Malian Ministry of the Environment. You can see a summary, in English, of these consultation sessions, along with photographs with this link: [Community Consultation Report] The agreements reached through that consultation process will be incorporated into our final study and application, which will be written by independent consultants and submitted by the end of next week. We are completing all of our permit requirements, just as the Malian Mining Ministry has announced that, effective today, they are re-activating the permit application process. Perfect timing, and more on that later.
Also on site, or at least just two kilometers away at the SMAT gold processing facility, the engineering and electrical wiring of power and final assembly of the modified crushing and processing facility is now just days away from completion. Photos of the work and final stages can be viewed with this link: [Photos – Compass Gold Corp]
Our Compass team is working together with the ROMARCO engineering group to start initial processing of SMAT ore at the facility, anticipated the first week of April, which will help to ensure all is ready for processing Compass ore immediately upon receiving our permit! We have about a dozen trenches at Tarabala, each five metres deep, about fifty meters long, and extending along a two-hundred-metre strike length ready to be excavated and hauled to the SMAT facility. [Appendix A below] The proposed Small Mine Permit zone continues to be guarded by a small, armed military detachment residing on site to ensure the gold goes to the plant and is not disrupted by artisanal miners.
Malian Mining Developments
Since our last communications, a significant announcement was published by the Malian Mining Ministry proclaiming the end of a nearly three-year moratorium on issuances of license renewals and granting of new licenses. The welcome news was the subject of press releases from several mining and exploration companies. A copy of the announcement, in English, can be read in its entirety in Appendix B below.
This is great news for Compass; we expect our Exploration Permit Renewals, which have been lodged with the Mining Ministry for more than a year, to be granted shortly. Also, as of March 15th, new permit applications for Small Mines can also be received, which should place Compass Gold at the head of the line for such a permit.
It is also worth noting that the Ministry of Mining is not yet accepting applications for new Exploration Permits. It is not clear when that might change, but in the meantime, as the holder of one of the largest packages of highly prospective, drilled and mapped exploration ground, we become one of the only means for new players to gain entry into the historical gold districts of Mali through a joint venture.
Corporate Activity and Financing News Relating to Compass and Mali
Shifting focus back to Canada, there have been some very interesting corporate and financial developments to report on. Starting with our Shareholder call on February 26th, 2025, we were able to review our progress and the timing of Warrants attaching to the Debenture funding that we used to advance our Massala project. We discussed with our Debenture holders that Warrants with a 10-cent exercise price, expiring on June 30th of this year, could provide a valuable cash cushion in March and April while we look to ramp up production. This would require an ‘early’ exercise of those expiring warrants.
The response was overwhelming! Within a week, we had commitments from the vast majority of holders to exercise those warrants. Several shareholders even expressed a willingness to take up warrants from those holders who might decide to waive their exercise right. At the end of the day, we expect to see a 100% exercise of those warrants, and over the next few weeks, we will have received a cash inflow of more than CDN$400,000. This is just another example of the incredible support of the core group of shareholders and debenture holders who have kept us moving ahead over the past two years. We are all working towards a day, very soon, when the ‘in-flow’ of cash will come from gold sales and not shareholders writing cheques!
All of that good news was happening with an exciting backdrop of the PDAC, the largest Mining/Investment Convention in the world. This year, more than 27,000 attendees gathered in Toronto to see and hear about all things mining. And with the global price of bullion rocketing up against the US$3,000 mark, gold mining was once again center stage. As part of the PDAC week, I was able to participate in a couple of video interviews on the Stockhouse Mining platform, which you may have seen [Streaming News & Media | Stock Market Video]. We are ready to start shining some light on what is coming next for Compass. Folks like Stockhouse were interested to hear the story, as were many others we met over two days on the PDAC exhibit floor, in presentation rooms and at receptions.
The positive progress for mining at the Malian country level, as well as within the West African region, is starting to become evident. We spoke to the largest producers within the country. Some are relieved to get their project expansions moving ahead. Some will wait and see what their next steps will be. Some made it clear they are committed for the long term and “not going anywhere.” One large producer even asked to have a closer look at which of our permits and drilling results might hold near-term promise for a Joint Venture arrangement.
On a smaller scale, we met with potential operating and financing partners with long histories in the region. They were intrigued by our concept of building a cash generator at surface while we take the time to define and monetize the deeper potential for a large open pit mine through the right transaction or Joint Venture down the road. What everyone acknowledged is that Compass has unparalleled in-country experience, a huge land position that allows for rapid scaling up of the surface mine concept and a significant ‘first mover’ advantage.
All of those strategic alternatives and others will be carefully examined once we get the gold production going at Massala.
On the financial side, two of the biggest financial stories announced during the PDAC had to do with gold mining in Mali! First, Allied Gold, the Canadian company that purchased the Sadiola mine complex from Iamgold and Anglo Gold just over a year ago, announced a $500 million cash investment from the UAE Ambrosia Fund. Not only will the Ambrosia Fund become a 50% owner of Sadiola, but they will also import their proprietary technology for solar power, which could radically transform the cost and sustainability of mining in Mali. [Allied Gold Corporation]
A second major announcement was made for a $130 million financing lead by the Sprott Group and Canadian mining billionaire Eric Sprott, for ROBEX Resources, another Canadian gold mining company with mines in Mali and the region. Robex Gold]
Conclusion
All of this activity and interest truly augers well for Compass Gold. We see the price of gold reaching record levels and showing continued strength amidst global uncertainties that are not going away any time soon. Our team’s work on the ground, led by Dr. Madani Diallo and the positive developments within the Malian mining environment are coming together to provide great momentum for all of our shareholders. As I said, the timing could not be better.
I firmly believe that all of us, as Compass shareholders, can look forward to a flow of exciting news over the next several months, which, at long last, will result in a share price that more properly reflects the fundamental value being built within Compass Gold’s assets, holdings and operations.
Our Compass team has worked extremely hard to carefully develop and execute a strategy that is delivering that value and rewarding our shareholders for their extraordinary commitment, patience and support
Lots to get done. Stay tuned!
Best regards
Larry Phillips
APPENDIX A

APPENDIX B
