New Found Gold Corp. announced that it has entered into a property purchase agreement with Labrador Gold Corp. providing for the sale by LabGold to New Found (the Transaction) of a 100% interest in LabGold?s Kingsway Project, located in Gander, Newfoundland and Labrador, as well as certain related assets of LabGold.

As consideration for the Purchased Assets, New Found will issue to LabGold such number of common shares in New Found equal to CAD 20,000,000 divided by the closing price of the Shares on the TSX Venture Exchange on the last trading day prior to the closing date of the Transaction. Kingsway Project Details: The Kingsway Project contains 311 mineral claims covering 7,775 hectares and adjoins New Found?s Queensway Project along several borders. The Kingsway Project contains many similar geological characteristics to the Queensway Project including over 12km of presumed strike length along the Appleton Fault Zone (AFZ).

Exploration over the past several years by LabGold has resulted in several high-grade gold discoveries including Big Vein, Pristine, and Golden Glove that display similar mineralizing styles to the Queensway Project. Project Synergies: New Found?s base of geologic knowledge of the central Newfoundland Gold Belt and the AFZ will be applied to the Kingsway Project to expand on existing discovery areas and to identify additional mineralized zones. The combined projects offer increased potential to solidify the district scale nature of the Queensway Project, with the additional 12km of strike along the AFZ lending the ability to identify and build upon additional zones of mineralization.

New Found is well capitalized and has significant exploration infrastructure and an experienced exploration team in place that will allow for efficient exploration that is required to unlock the mineral potential at the Kingsway Project. Details of the Transaction: The Transaction requires the approval of 66 2/3% of the votes cast by holders of common shares of LabGold at a shareholder meeting to be called by LabGold. In addition, the Transaction is subject to customary closing conditions, including the approval of the TSX-V. It is anticipated that the closing of the Transaction will occur in the third quarter of 2024.

The Agreement includes deal-protection provisions, including customary non-solicitation provisions, a right for New Found to match any superior proposal, and a termination fee of CAD 500,000, payable by LabGold, in customary circumstances. Directors, officers and certain shareholders of LabGold, owning approximately 2.35% of LabGold?s common shares have entered into voting support agreements pursuant to which they have agreed to vote all the LabGold shares they own, or control, in favour of the Transaction.