Executive Summary / Key Takeaways

• First Mining Gold Corp. (FFMGF) is a gold exploration and development company strategically positioned to capitalize on rising gold prices through its two cornerstone Canadian projects, Springpole and Duparquet, which collectively hold significant undeveloped gold resources.
• The company is actively de-risking its assets through substantial exploration programs, evidenced by recent discoveries and expansions at Duparquet, and advancing Springpole towards production with a Feasibility Study underway and key environmental approvals anticipated.
• Recent successful capital raises totaling $36.4 million, coupled with strategic asset divestitures, have significantly strengthened the balance sheet, providing essential funding for project advancement and reducing immediate liquidity concerns.
• Despite its pre-revenue stage, First Mining Gold is perceived to be deeply undervalued, trading at a substantial discount to its estimated net asset value per share, presenting a compelling opportunity for investors seeking exposure to high-growth gold development.
• Strategic partnerships with Indigenous communities and local governments underscore a commitment to responsible development, enhancing project stability and long-term operational viability in Canada's supportive mining jurisdictions.

The Golden Opportunity: First Mining Gold's Strategic Ascent

First Mining Gold Corp. (FFMGF) stands as a dedicated gold exploration and development company, meticulously building a portfolio of high-quality mineral properties across Canada. Founded in 2015 in Vancouver, the company embarked on a strategic journey to acquire and advance significant gold and silver deposits, establishing a foundational presence in prolific mining regions. This focused approach has shaped its current position, emphasizing the systematic de-risking and development of its core assets rather than immediate production.

The global gold market currently presents a compelling backdrop for companies like First Mining Gold. Gold has experienced a significant rally throughout 2025, reaching an all-time record spot price of $3,528.78 per ounce in September, surpassing its previous high from April. International gold futures briefly touched $3,744 per ounce in early September, closing at $3,705.80, representing a cumulative increase of 44% since the beginning of the year. This surge is fueled by geopolitical tensions, monetary policy uncertainty, and robust central bank accumulation, with global central bank gold reserves projected to increase by 900 tons in 2025 alone. Gold producers are enjoying unprecedented profit margins, as the industry's average all-in sustaining cost remains around $1,500 per ounce, making the current spot price more than double that figure. This robust market environment significantly enhances the potential profitability and strategic value of First Mining Gold's undeveloped resources.

Operational Technology: Precision in Exploration and Development

First Mining Gold's competitive edge, in the absence of proprietary processing technology, lies in its systematic and geologically informed approach to exploration and project development. This "operational technology" is critical for identifying, defining, and advancing high-quality gold projects in Canada. The company leverages extensive geological expertise and efficient drilling programs to expand known resources and discover new gold zones, effectively de-risking its assets. Despite lacking proprietary, quantifiable technology differentiators, its operational excellence and strategic asset base provide a strong foundation.

A prime example of this approach is the ongoing 2025 drilling program at the Duparquet Gold Project in Quebec. The company initiated an estimated 18,000 meters of drilling in March, adding a second drill rig by April to accelerate progress. This systematic exploration has yielded significant results, including the discovery of the Minuit Gold Zone in July, located 75 meters north of the historical Donchester Mine, with drill hole DUP25-059 returning 2.25 g/t Au over 12.8 meters, including 4.08 g/t Au over 4.0 meters. More recently, in September 2025, drilling expanded the newly discovered Miroir Target, with DUP25-064 returning 3.23 g/t Au over 25.9 meters, including high-grade intercepts of 11.20 g/t Au over 2.0 meters and 10.16 g/t Au over 1.4 meters, extending mineralization to 100 meters depth. These quantifiable drilling results demonstrate the effectiveness of First Mining Gold's exploration strategy in expanding its resource base and enhancing the project's overall value.

For investors, this focused "technological" approach translates into a clear path for resource growth and project de-risking. By systematically proving up and expanding its gold resources, First Mining Gold builds a stronger foundation for future production or strategic partnerships, directly contributing to its competitive moat through resource ownership and a well-defined development pipeline.

Strategic Pillars: Springpole and Duparquet

First Mining Gold's investment thesis is anchored by two flagship projects: the Springpole Gold Project in northwestern Ontario and the Duparquet Gold Project in Quebec. Springpole, described as one of North America's largest undeveloped open-pit gold deposits, boasts 4.6 million ounces of gold in the indicated category and 0.3 million ounces in the inferred category. The project's Pre-Feasibility Study (PFS) projected an 11.3-year mine life with a post-tax NPV5% of USD 995 million at USD 1,600/oz Au, an after-tax IRR of 29.4%, and a 2.4-year payback period. The company submitted its final Environmental Impact Statement/Environmental Assessment (EIS/EA) in November 2024, with a federal decision anticipated by the end of 2025. Furthermore, a significant Long Term Relationship Agreement was signed with the Mishkeegogamang First Nation in July 2025, establishing a collaborative framework for the project's development, operations, and closure. This agreement, alongside the target of 300,000 ounces of gold production, underscores the company's commitment to responsible development and community engagement.

The Duparquet Gold Project, located on the Destor-Porcupine Fault Zone in Quebec's prolific Abitibi region, is currently a PEA-stage development project. Beyond the successful drilling campaigns, First Mining Gold signed a historic Memorandum of Understanding (MOU) with the City of Duparquet in September 2025, formalizing collaboration for community development and project advancement. This proactive engagement with local stakeholders is crucial for securing social license and ensuring smooth project progression. The company's strategic decision in July 2025 to divest its remaining 20% interest in the Hope Brook Gold Project for C$3 million in cash and 7 million common shares of Big Ridge Gold Corp. (BRG) further streamlines its focus on these two core, high-potential assets.

Financial Performance and Capital Strength

As an exploration and development company, First Mining Gold has consistently reported zero revenue from 2015 through 2024, a characteristic common to companies in this pre-production phase. The company has, however, demonstrated a robust approach to capital management to fund its extensive development activities. In 2024, First Mining Gold reported a net loss of $15.31 million, following a net loss of $7.04 million in 2023. Operating cash flow for 2024 was negative $3.95 million, and free cash flow was negative $25.05 million, reflecting ongoing investments in its projects.

The year 2025 has been pivotal for strengthening the company's financial position. First Mining Gold successfully closed an oversubscribed public offering of $12.0 million in July and an upsized non-brokered private placement of approximately $24.4 million in August. These financings collectively raised $36.4 million, providing significant capital to advance the Springpole and Duparquet projects. As of June 30, 2025, prior to these capital raises, the company held $5.8 million in cash and marketable securities, alongside an equity interest in PC Gold Inc. (Pickle Crow Project) valued at $21.5 million. The receipt of a final US$5 million payment from First Majestic Silver Corp. (AG) in March 2025, related to the Springpole Silver Stream Purchase Agreement, further bolstered liquidity. These strategic capital injections and asset sales underscore the company's ability to secure funding for its ambitious development plans, mitigating the inherent risks associated with its pre-revenue status.

Competitive Landscape and Strategic Positioning

First Mining Gold operates within the highly competitive Canadian gold mining sector, distinguishing itself through its focus on acquiring and developing large, high-quality gold projects in stable jurisdictions. Compared to major gold producers like Barrick Gold Corporation (GOLD) and Newmont Corporation (NEM), First Mining Gold is a smaller, development-stage player. Barrick and Newmont benefit from significant operational scale, diversified global portfolios, and established production capabilities, leading to consistent revenue, stronger profitability margins, and robust cash flow generation. First Mining Gold, in contrast, offers higher growth potential as its projects move towards production or acquisition, providing purer exposure to gold market trends.

Against mid-tier producers like Agnico Eagle Mines Limited (AEM) and Kinross Gold Corporation (KGC), First Mining Gold's project-based approach is more exploratory and less proven. While Agnico Eagle is known for its low-risk jurisdictions and operational discipline, and Kinross for its global footprint and cost management, First Mining Gold's strategic advantage lies in its concentrated focus on high-potential Canadian assets. This provides a unique value proposition in terms of geological upside and regulatory stability. The company's disciplined approach to acquiring high-quality mineral assets at low costs during bear market conditions positions it to benefit significantly from market recoveries, potentially giving it a cost advantage in its portfolio compared to competitors who may have overpaid for assets.

First Mining Gold's commitment to meaningful collaboration with Indigenous communities, as demonstrated by the Springpole LTRA and Duparquet MOU, also serves as a critical differentiator. This focus on ESG (Environmental, Social, and Governance) factors enhances project stability and reduces potential delays, positioning it as a serious contender in the Canadian gold sector where such partnerships are increasingly vital. While its operational scale is currently limited, exposing it to higher costs per unit compared to larger rivals, its strategic focus on de-risking its core assets and securing social license aims to bridge this gap as projects advance.

Risks and Outlook

The primary risk for First Mining Gold, typical for development-stage mining companies, is the successful transition from exploration to production. This involves navigating complex permitting processes, securing substantial capital for construction, and managing operational challenges. Delays in federal decisions for projects like Springpole's EIS/EA, or unexpected geological complexities, could impact timelines and costs. Furthermore, while the company has recently bolstered its liquidity, continued access to capital will be essential for future development phases.

Despite these risks, the outlook for First Mining Gold is optimistic, underpinned by a strong gold market and significant progress on its key projects. The anticipated federal decision on Springpole's EIS/EA by the end of 2025 represents a major de-risking event. The ongoing 18,000-meter drilling program at Duparquet is designed to further expand resources and unlock regional gold endowment, supporting future development. Management's stated goal of targeting 300,000 ounces of gold at Springpole provides a clear production objective. The company's robust balance sheet, strengthened by recent financings, positions it to make significant progress at both Springpole and Duparquet, as noted by CEO Dan Wilton.

Conclusion

First Mining Gold Corp. is at a pivotal juncture, transforming from a pure explorer into a formidable gold developer in Canada's resource-rich landscape. The company's strategic focus on its Springpole and Duparquet projects, coupled with a systematic approach to exploration and development, is steadily unlocking the inherent value of its substantial gold resources. In a market characterized by record gold prices and increasing institutional interest, First Mining Gold's commitment to responsible development and strong community partnerships further enhances its long-term potential. While the journey from discovery to production carries inherent risks, the company's strengthened financial position, ongoing project advancements, and deeply undervalued asset base present a compelling investment thesis for those seeking exposure to significant growth in the gold sector. The successful execution of its development plans and the realization of its project potential could significantly narrow the current valuation gap, positioning First Mining Gold for substantial future gains.