Theta Gold Mines Limited: Quarterly Activities and Cashflow Report 31 March 2021

Sydney, Australia - Theta Gold Mines Ltd. (ASX:TGM) (OTCMKTS:TGMGF) is pleased to report on its activities for the period from 1 January to 31 March 2021.

The company has progressed strongly during the early part of 2021, delivering key project milestones, funding, the first underground Mining Reserve (refer ASX announcement 8 April 2021) and first underground Prefeasibility Study (refer ASX announcement 13 April 2021). The team has delivered a Maiden Underground Prefeasibility Study ("PFS") based on only 16% of Theta Gold's 4.5m oz Au underground gold resource, and incorporates only 3 out of the recorded 43 historical mines across the project area.

The Maiden Underground Mining Reserve is estimated at 419,000 oz gold (2,366 Kt @ 5.49 g/t). In total, the global Mining Reserve is now 580,000 oz gold (4,530 Kt @ 3.98 g/t) (see Annexure A, Table 1*). The global Mineral Resource (JORC 2012) remains over 6 Moz (45.5 Mt @ 4.17 g/t Au) (see Annexure A, Table 2*).

Theta Gold has demonstrated, through the first phase underground PFS, excellent project economics for what it believes to be only a small portion of the underground resource and will continue to build up its Mining Reserves by progressing Rietfontein and other mines through to PFS level, while concluding detailed designs for the Phase 1 Underground Project.

The Theta mine team now boasts a number of ex-Harmony Gold mining experts. Not only do they strengthen the mine build and execution team, it gives the board great confidence that the men at the coal face share our belief in this large goldfield.

HIGHLIGHTS

POST QUARTER - April 2021

Pre-Feasibility Study - TGME Phase 1 Underground Project - 74% owned by TGM

TGME Phase 1 Underground Project, which excludes the open pits, was released to the market on 13 April 2021. All numbers in USD and financials based on forecast gold price of average USD$1,570/oz and ZAR/USD exchange rate of 15.9. Salient details include:

- Peak Capex of only USD36m to start mining operations leading on to the recovery of 419Koz Au at a peak rate of 60Koz pa.

- Pay-back period from first gold of 13 months

- Pay-back period from start of mining of 22 months

- 419,000 oz Au delivered to plant (is this recovered?) over initial Life of Mine (LoM)

- By the third year, recovered production is over 60,000 oz Au/year

- LoM of 7.67 years, based on existing Mining Reserves (excludes 3.5 Moz Inferred Resources)

- US$241.2 million EBITDA over LoM

- Internal Rate of Return (IRR) 82%

- US$91.2 million Net Present Value (NPV)

- US$905/oz Au all-in sustaining cost (AISC) over LoM, bottom quartile for South African producers

- Total LoM Capital Expenditure (CAPEX) US$79 million includes -

o Peak CAPEX first 3 years US$37M -for the oxide and backfill plants and for Beta Mine development

o Year 4 US$27M for sulphide circuit,Frankfort and CDM Mine development

o US$15M for other capital development costs and sustaining capex during LoM operations

Maiden Underground Mining Reserve

- MAIDEN 419,000oz @ 5.49g/t Au Underground Mining Reserve declared

- TOTAL 580,000oz @ 3.98g/t Au Global Mining Reserve (Open Pit & Underground)

- 63 % Conversion factor for Maiden Underground Mining Reserve

- 3.5Moz of Underground resource (Inferred) remaining for future conversion into Mining Ore Reserve

- Global Mineral Resource 6Moz Au includes -

o 4.5 Moz Underground (26.3 Mt @ 5.4 g/t Au) (Measured, Indicated, and Inferred)

- 969,400 oz (4.87 Mt @ 6.20 g/t Au) (Measured & Indicated)

o 1.3 Moz Open pit resources (13.02 Mt @3.25 g/t Au) (Indicated & Inferred )

- 917 Koz Theta Project (9.6 Mt @ 2.99g/t Au) (Indicated & Inferred; 0- 130m depth)

- 161 Koz (2.16 Mt @ 2.31 g/t Au at a 0.4 g/t Au cut-off) Probable Ore Reserve estimate (Theta Project Open Pit Ore Reserve)

o Tailings & Rock dumps - 174,000 oz (Indicated & Inferred)

DURING THE QUARTER - Q3 FY 2021

- A$15 million At-the-Market equity facility arranged with Acuity Capital

- A$4 million Funds Raised to support mine study, permitting and development

- Execution Team strengthened

*To view the full quarterly report, please visit:
https://abnnewswire.net/lnk/ZW732XWN

About Theta Gold Mines Limited:

Theta Gold Mines Ltd. (ASX:TGM) (OTCMKTS:TGMGF) is a gold development company that holds a range of prospective gold assets in a world-renowned South African gold mining region. These assets include several surface and near-surface high-grade gold projects which provide cost advantages relative to other gold producers in the region.

Theta Gold Mines core project is located next to the historical gold mining town of Pilgrim's Rest, in Mpumalanga Province, some 370km northeast of Johannesburg by road or 95km north of Nelspruit (Capital City of Mpumalanga Province). Following small scale production from 2011-2015, the Company is currently focussing on the construction of a new gold processing plant within its approved footprint at the TGME plant, and for the processing of the Theta Open Pit oxide gold ore. Nearby surface and underground mines and prospects are expected to be further evaluated in the future.

The Company aims to build a solid production platform to over 100Kozpa based primarily around shallow, open-cut or adit-entry hard rock mining sources. Theta Gold Mines has access to over 43 historical mines and prospect areas that can be accessed and explored, with over 6.7Moz of historical production recorded.

Source:
Theta Gold Mines Ltd.

Contact:

Bill Guy, Chairman Theta Gold Mines Ltd. T: + 61 2 8046 7584 E: billg@thetagoldmines.com Investor Relations Australia: Ben Jarvis Six Degrees Investor Relations T: +61 (0) 431 271 538 United States: Michael Porter Porter, LeVay & Rose Inc T: +1 212 564 4700 E: theta@plrinvest.com