Queen’s Road Capital Investment Ltd. (TSXV-QRC) (the “Company” or “QRC”) is pleased to announce that it has entered into a binding agreement with Contango ORE, Inc. (“CORE”) (NYSE American: CTGO) whereby the Company will purchase US$20,000,000 of convertible debentures to be issued by CORE.

The convertible debentures will have a 4-year term, carry an 8.0% coupon (6.0% payable in cash and 2.0% payable in shares), a 3% establishment fee and will be convertible into CORE common shares at a price of $30.50.

CORE is a U.S. gold development company that owns a 30% equity interest in the Peak Gold, LLC partnership (“Peak Gold”) with Kinross Gold Corp. (“Kinross”), the 70% owner and manager. Peak Gold is developing the Manh Choh deposit located in Alaska on lands owned by the Alaska Native Tetlin Tribe. Peak Gold has a typical mining lease agreement with the Tetlin Tribe pursuant to which the Tetlin Tribe will receive royalty payments as well as commitments for jobs and training for tribal members. The feasibility study at Manh Choh is scheduled for completion during the first half of 2022 with first gold pour scheduled for 2024. Kinross has advised CORE that it anticipates producing over 1 million ounces of gold at Peak Gold over a 4.5-year mine life based on current resources with an estimated All-in Sustaining Costs (ASIC) of $750/oz and estimated total capital costs of up to $130 million. Ore mined at Peak Gold will be trucked to Kinross’ Fort Knox mill, resulting in anticipated capital cost savings and an accelerated permitting process.

CORE also owns the Lucky Shot gold property in Alaska. Lucky Shot historically produced 250,000 ounces at a grade of 40g/t gold. CORE is led by Mr. Rick Van Nieuwenhuyse. Rick founded Novagold Resources Inc., which is developing the world class Donlin gold deposit in Alaska jointly with Barrick Gold Corp., and NovaCopper Inc., now Trilogy Metals Inc., which is developing the Ambler polymetallic deposit in Alaska jointly with South32 Ltd.

The proceeds from the convertible debenture investment are expected to be used to fund CORE’s share of costs at Peak Gold and advance exploration activities at its wholly-owned gold projects in Alaska, including the Lucky Shot property.

Warren Gilman, Chairman & CEO commented: “QRC is pleased to partner with Rick on his new venture. Manh Choh is the most advanced gold development project in Alaska and, with Kinross at the helm, we have no doubt that Peak Gold will become Alaska’s next gold producer. CORE’s other assets also present some exciting exploration opportunities which Rick and his team are best suited to advance. As our first investment in the gold sector, CORE provides both near-term production and exploration upside to QRC and its shareholders.”
Completion of the investment is subject to receipt of all required regulatory approvals and is expected to occur on or before April 29, 2022.

About Queen’s Road Capital Investment Ltd.
Queen’s Road Capital is a dividend paying, leading financier to the global resource sector. The Company is a resource focused investment company, making investments in privately held and publicly traded resource companies. The Company acquires and holds securities for long-term capital appreciation, with a focus on convertible debt securities and resource projects in advanced development or production located in politically safe jurisdictions.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

FOR FURTHER INFORMATION, visit the Company’s website at www.queensrdcapital.com or contact by email info@queensrdcapital.com or phone +852 2759 2022       

Caution Regarding Forward Looking Statements

Certain statements in this News Release, which are not historical in nature, constitute “forward looking statements” within the meaning of that phrase under applicable Canadian securities law. These statements include, but are not limited to, statements or information concerning the Company’s growth strategy and the Company’s future performance. These statements reflect management’s current assumptions and expectations and by their nature are subject to certain underlying assumptions, known and unknown risks and uncertainties and other factors which may cause actual results, performance or events to be materially different from those expressed or implied by such forward looking statements. Those risks include the interpretation of drill results; the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with our expectations; commodity and currency price fluctuation; failure to obtain adequate financing; regulatory, recovery rates, refinery costs, inability to identify or successfully conclude corporate transactions, and other relevant conversion factors, permitting and licensing risks; and general market and mining exploration risks. Forward-looking statements should not be construed as investment advice. Readers should perform a detailed, independent investigation and analysis of the Company and are encouraged to seek independent professional advice before making any investment decision. Accordingly, readers should not place undue reliance on any forward-looking statement. Except as required by applicable securities laws, the Company disclaims any obligation to update or revise any forward-looking statements to reflect events or changes in circumstances that occur after the date hereof.