Northgold

Auditors comment on the Annual report
The auditor’s report, which is attached to the annual report for 2024, deviates from what is common as a remark is stated by the auditor relating to a significant uncertainty regarding the going concern.

Without prejudice to my opinion above, I would like to draw attention to the statement in the Directors' Report that the company is dependent on further capital injections in 2025 to ensure its continued operation. It is the board's assessment that there are good opportunities for continued financing, which is described in more detail below. The above indicates that there is a material uncertainty, which may cast significant doubt on the company's ability to continue as a going concern.

Board of Directors’ Comment on Going Concern
The Board of Directors acknowledges the auditor’s remark regarding uncertainty related to the Company’s ability to secure sufficient funding for its ongoing operations.

As previously announced in the Company’s press release dated 11 April 2025, Northgold has entered into an agreement to divest its wholly owned Finnish subsidiaries, including all operational assets, to Nordic Resources Limited. Upon completion of this transaction, the Company will no longer hold operational assets but will instead hold a portfolio consisting primarily of listed equity in Nordic Resources and cash.

The transaction, which is subject to shareholder and regulatory approvals, is expected to generate sufficient funding to support the Company until its intended voluntary liquidation. It is the Board's view that the proceeds from the transaction will fully cover all remaining obligations during this transitional period. Accordingly, the Board has proposed a resolution on voluntary liquidation to the shareholders, which would result in a distribution of the proceeds to Northgold’s shareholders.

Differences between year-end and annual report
As part of our year-end reporting, asset values were presented based on book value. However, in our audited annual report, a depreciation adjustment of approximately SEK 19 million has been made. This adjustment reflects the revaluation of assets following the acquisition of certain subsidiaries by third party. The adjustment aligns with standard accounting practices and ensures our financial reporting accurately reflects the transaction and the value of the acquired entities. The sales of subsidiaries and sale terms of transactions were disclosed by Northgold in April 2025.

Further information
Seppo Tuovinen, CEO of Northgold AB
seppo.tuovinen@northgold.com
ir@northgoldab.com
Website: www.northgoldab.com
Follow us: www.linkedin.com/company/northgold

About Northgold
Northgold is a Swedish-listed gold exploration and development Company focused on advancing multiple, co-located, resource-stage projects in the Middle Ostrobothnia Gold Belt (MOGB) of Central Finland, including the Kopsa Gold-Copper project, the Kiimala Trend Gold project, and the Hirsikangas Gold project. The Company strives to grow its gold mineral resources, make new gold discoveries, and ultimately extract gold from these under-explored areas in Central Finland. Augment Partners AB, tel. +46 8-604 22 55 info@augment.se, is acting as the Company's Certified Adviser.