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TGOL: Growing Resource at Cheap Discovery Cost in World-Class Location

What you need to know:
• Thunder Gold is advancing the Tower Mountain Project in a world-class location just ~40km from Thunder Bay with unparalleled infrastructure.
• Tower Mountain hosts a 3.6Moz resource at an average grade of 0.45 g/t, supporting a potential high-tonnage open pit operation.
• The Company has commenced a phased 2026 exploration campaign and is targeting an expanded resource and PEA by year-end.
• TGOL trades at ~US$7/oz on its current resource, a fraction of its peers.

Thunder Gold Corp. (TGOL:TSXV, TGOLF:OTC) is a Canadian exploration company advancing its Tower Mountain Project in Ontario. The Company announced a mineral resource estimate in January outlining a sizable ~3.6Moz of gold, grading ~0.5 g/t. TGOL has achieved an industry-leading cost of discovery of C$3.95/oz, and ~80% of the Tower Mountain Intrusive Complex (TMIC) remains untested. The low cost of drilling and continuity of the deposit provide high conviction that resources will continue to grow, and TGOL has presented the market with clear 2026 objectives for an expanded resource and PEA. Importantly, Tower Mountain is situated in a world-class location just outside of Thunder Bay, which is anticipated to significantly enhance economics. We are initiating coverage on Thunder Gold Corp. with a BUY rating and target price of C$0.60/share.

Investment Thesis Summary
World-Class Location is Being Overlooked. The Thunder Bay region is well-known as one of the top mining jurisdictions globally. The mining framework is well-established, providing both visibility and familiarity in advancing mining projects. With that said, Tower Mountain is strategically positioned only ~40km outside of Thunder Bay along the Trans-Canada Highway, differentiating the project from others in the mining camp that gravitate toward more remote locations. All required infrastructure is in place and within ~3km of the property, which is anticipated to significantly reduce costs. This is a game-changer, and its unparalleled access to infrastructure is currently being underappreciated by the market.

Lowest Cost of Discovery Among Peers. In defining an initial ~3.6Moz resource, the Company has achieved an impressive cost of discovery at C$3.95/oz, which is well below Canadian peers, and we view the resource as a solid base for a high-tonnage, lower-grade open pit operation. Predictable continuous mineralization and a peer-leading 1.8:1 strip ratio present plenty of opportunity for low-cost growth in the near-term, while 80% of the TMIC remains untested, outlining notable long-term potential in unlocking a generational project.

Visible Roadmap for Advancement. TGOL’s management team brings 30+ years of extensive mining expertise in advancing projects. The team has provided the market with clear expectations and is not leaving investors in the dark. The Company has commenced a phased drill program and is targeting 5Moz following 2026 drilling, which will guide a PEA by year-end.

Clear Valuation Disconnect. Despite a best-in-class location and favourable low-strip mineralization, TGOL trades at an enormous discount at ~US$7/oz versus Canadian peers averaging ~$US80/oz, and its closest peers at +US$50/oz. We attribute some of this to its lower average grade; however, as outlined below, grade is one of many factors driving project economics, and we expect Tower Mountain is positioned to be a very profitable project. The window may be short before the markets take notice as TGOL delivers on its near-term plans.