Skeena Completes Positive Definitive Feasibility Study for Eskay Creek: After-Tax NPV (5%) of C$2.0 Billion, 43% IRR and 1.2 Year Payback

VANCOUVER, BC / ACCESSWIRE / November 14, 2023 / Skeena Resources Limited (TSX:SKE )(NYSE:SKE ) ("Skeena" or the "Company") is pleased to announce the results of the Definitive Feasibility Study ("DFS" or the "Study") for its 100% owned Eskay Creek Gold-Silver Project ("Eskay Creek" or the "Project") located in Tahltan Territory in the Golden Triangle of northwest British Columbia.

Eskay Creek 2023 DFS Highlights:

• After-tax net present value ("NPV")(5%) of C$2.0 billion at a base case of US$1,800 gold and US$23 silver
• Industry-leading after-tax internal rate of return ("IRR") of 43% and an after-tax payback of 1.2 years on pre-production capital expenditures ("CAPEX")
• Life of mine ("LOM") all-in sustaining cost ("AISC") of US$684/oz gold equivalent ("AuEq") sold
• Proven and Probable Mineral Reserves for open-pit mining of 39.8 million tonnes ("Mt") containing 3.3 million ounces ("Moz") gold and 88.0 Moz silver (4.6 Moz AuEq)
• Years 1-5: Average annual production of 455,000 oz at 5.5 g/t AuEq and average annual after-tax free cashflow of C$474 million
• Years 1-10: Average annual production of 370,000 oz at 4.2 g/t AuEq and average annual after-tax free cashflow of C$365 million
• Estimated pre-production CAPEX of C$713 million, yielding a compelling after-tax NPV:CAPEX ratio of 2.8:1

The Company will be hosting a conference call to present the DFS results for Eskay Creek on November 15 at 8:00 AM PT / 11:00 AM ET. A presentation by management will be followed by an opportunity for Q&A.

Conference Call Webcast and Dial in Details:

Webcast URL with Audio - https://services.choruscall.ca/links/skeenaresources202311.html

Participant Telephone Numbers - Canada/US 1-800-319-4610, International Toll +1-604-638-5340

Definitive Feasibility Study Presentation - https://skeenaresources.com/investors/2023-definitive-feasibility-study-presentation/ *presentation will be available on the morning of November 15, 2023

If you would like to ask a question, please dial in. All callers should dial in 5-10 minutes prior to the scheduled start time and simply ask to join the call. If you are unable to join the call, a replay will be made available here following the completion of the call.

Randy Reichert, Skeena's President & CEO, commented, "This Definitive Feasibility Study was a critical de-risking step for the Company in the development of Eskay Creek. In this Study, we had multiple breakthroughs in metallurgy, increased Mineral Reserves by approximately 20% and continued to increase the Project value for our shareholders. This study is robust and engineered to construct Eskay Creek."

The Company's Executive Chairman, Walter Coles, added "Randy and the team have done a phenomenal job of improving the Project. With our base case after-tax NPV surpassing C$2.0 billion, Eskay Creek stands out as a rare potential Tier 1 gold mining project, located in a politically stable jurisdiction. Excitingly, we see additional opportunities to increase Reserves and mine life, while continuing to advance the project through permitting, project financing, construction and production in 2026. We're frustrated by the massive valuation gap between non-revenue generating mine developers and junior gold producers. However, we recognize that rapidly advancing Eskay Creek toward production and generating cash flow is the obvious path to delivering tremendous shareholder value."

Eskay Creek Definitive Feasibility Study

The DFS for Eskay Creek was completed by Global Resource Engineering ("GRE") and Sedgman Canada Limited ("Sedgman"), a CIMIC Group Company. The Study demonstrates a robust Project with industry-leading economics for a conventional open-pit mining and milling operation. The DFS is a continuation of the September 2022 Feasibility Study ("FS") with key updates including an updated Mineral Reserve statement, optimized mine plan and improved metallurgy.

Summary of Key Results and Assumptions in the DFS

Table 1: After-Tax NPV(5%) and IRR Sensitivities to Commodity Prices

• All dollar ($) figures are presented in CAD unless otherwise stated. Base case metal prices used in this economic analysis are US$1,800/oz Au and US$23.00 Ag. These prices are supported by 3-year trailing average prices.
• Spot price taken as of October 31, 2023

Realized Improvements & Optimizations

The 2023 DFS incorporates several key enhancements and de-risking strategies relative to the 2022 FS including:

• Increase in the Mineral Reserve estimate and an extended mine life to 12-years
• Remodelled orebody based on a more selective mining approach with a smaller block size
• Pre-production mining accelerated to create a larger ore stockpile at startup, de-risking initial production and improving ability to blend for optimal concentrates
• Metallurgical testwork completed that supports a simplified flowsheet and results in a 43% reduction of mass pull with no material change in recovery to concentrate
• Lower concentrate tonnes at higher grade result in increased payables and decreased transport and smeltertreatment costs
• Updated capital costs to reflect a plan that is executable, technically proven and significantly de-risked with an additional year of engineering and studies
• On-site permanent camp brought forward in plan and relocated away from mine infrastructure to improve workforce attraction and retention, promote employee well-being and to ensure adequate camp space during construction

Table 2: 2023 Eskay Creek DFS Project Parameters

• Cash costs are on an ounce payable basis and are inclusive of operating mining costs, processing costs, site G&A costs, royalties, smelting, refining, and transports costs
• AISC are on an ounce payable basis and include cash costs plus sustaining capital and closure costs
• All dollar ($) figures are presented in CAD unless otherwise stated. Base case metal prices used in this economic analysis are US$1,800/oz Au and US$23.00 Ag. These prices are based on 3-year trailing average prices.
• Pre-production capital expenditure of C$713M is exclusive of initial working capital, primarily C$43.3M of pre-production mining operating costs associated with establishing initial ore stockpile inventory

Mineral Resource Estimate

The Company's current Mineral Resource Estimate ("MRE") with an effective date of June 20, 2023, forms the basis of the DFS. Mineral Resources are reported inclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

Table 3: 2023 Measured and Indicated Pit Constrained Resource Reported at a 0.7 g/t AuEq Cut-off Grade

1. All references to AuEq in this disclosure for the 2023 MRE have factored metallurgical recoveries as per the calculation: AuEq = ((Au (g/t)*1700*0.84) + (Ag (g/t)*23*0.88)) / (1700*0.84). US$1,700/oz Au, US$23/oz Ag, 84% gold recovery and 88% silver recovery
2. The Qualified Person for the estimate is Ms. Terre Lane, MMSA QP, Principal Mining Engineer of GRE who reviewed and validated the Mineral Resource estimate
3. The effective date of the mineral resource estimate is June 20, 2023
4. The number of metric tonnes and ounces was rounded to the nearest million. Any discrepancies in the totals are due to rounding
5. Open pit-constrained mineral resources are reported in relation to a conceptual pit shell
6. Block tonnage was estimated from average specific gravity measurements using lithology and zone groupings
7. All grades within different zone groupings were capped where appropriate
8. Mineral resources are potentially amenable to open pit mining methods reported at a cut-off grade of 0.7 g/t AuEq.
9. Cut-off grades are based on a price of US$1,700 per ounce of gold, US$23 per ounce of silver, gold recoveries of 84%, and silver recoveries of 88%, and without considering revenues from other metals.
10. Open pit key assumptions for reasonable prospects of eventual economic extraction are as follows:
    1. An overall pit wall angle of 45 degrees
    2. A reference mining cost of US$3.00 per tonne mined
    3. A processing cost of US$15.50 per tonne processed
    4. General and administrative costs of US$6.00 per tonne processed
    5. Mining dilution of 5%
    6. Mining recovery of 95%
    7. Transportation and refining costs of US$18.5 per ounce Au.
    8. Transportation and refining costs of US$7 per ounce Ag.
11. Estimates use metric units (metres, tonnes, and g/t). Metals are reported in troy ounces (metric tonne * grade/31.10348)
12. The 2014 CIM Definition Standards were used for the reporting of mineral resources.
13. The reported resource has been updated to reflect an updated topography surface and underground depletion wireframes.

Mining Overview

Eskay Creek is planned to be an open-pit operation using conventional mining equipment. Pit designs were developed for the north and south pit areas. The initial phases were designed for the purpose of obtaining a technical sample and necessary non-acid generating waste material ("NAG") to create supporting infrastructure. Open-pit mining follows down slope of the ridge where the deposit is located. The north pit will consist of 10 phases, while the south pit will be developed as a single phase.

Mining will be executed on 10 metre benches using a combination of 400 and 200 ton excavators and ore will be mined selectively on three sub-benches (flitches) using 200 ton excavators. Application of selective mining techniques in ore resulted in substantial improvements to mined ore grade, compared to non-selective ore mining that was contemplated in the 2022 FS mine plan. Selective mining techniques were evaluated by reducing the resource model block size from 10x10x10 metre to 5x5x5 metre to accurately model reduced ore dilution by operating 200 ton excavators in ore to reduce the smallest mining unit. The mining fleet was increased compared to the 2022 FS plan to provide higher mining rates in the no-snowfall months to compensate for anticipated lower production rates during the winter months.

Table 4: 2023 Eskay Creek Proven and Probable Mineral Reserves