TRX Gold Shatters Records, Fuels Major Tanzanian Expansion

TORONTO, ON – March 02, 2026 – TRX Gold Corporation is riding a powerful wave of record-high gold prices, announcing a landmark quarter that saw it shatter production records, fortify its balance sheet, and aggressively accelerate the expansion of its Buckreef Gold Project in Tanzania. The company reported preliminary Q2 2026 production of 7,453 ounces of gold, a 13% jump from the previous quarter, signaling a significant operational ramp-up just as market conditions turn exceptionally favorable.

The surge in output was matched by soaring revenues, as the company sold approximately 7,400 ounces of gold at an average market price of $4,682 per ounce, a staggering 21% increase over its realized price in the first quarter. This confluence of operational excellence and a bullish gold market has fundamentally transformed the company's financial standing and strategic outlook, positioning it for a new phase of substantial growth.

"We’re very pleased with the positive trajectory and record gold production achieved at Buckreef Gold this quarter," commented Stephen Mullowney, CEO of TRX Gold, in a public statement. He attributed the success to access to higher-grade ore and improved mill recoveries from recent plant upgrades. "We are now on a significant growth trajectory, and things are getting really exciting!"

A Financial Metamorphosis

A pivotal element of TRX Gold's blockbuster quarter was a strategic overhaul of its capital structure. The company announced that all outstanding share purchase warrants were either exercised or expired during the quarter, a move that yielded approximately $21.0 million in gross proceeds. This influx of capital has left the company with what Mullowney described as a "clean capital structure," now free of the potential share dilution that warrants can represent.

The financial implications are profound. TRX Gold’s cash balance has swelled to approximately $25 million, a net increase of about $15.8 million from the end of the previous quarter, even after repaying deferred revenue and settling accounts payable. This has dramatically improved the company's liquidity, with its working capital ratio strengthening from 1.7 to a robust 2.5.

This fortified balance sheet provides a critical advantage: the ability to self-fund its ambitious expansion plans. With very low debt and strong, organically generated cash flow, TRX Gold is no longer reliant on external financing to fuel its growth. This financial independence is a key differentiator in the capital-intensive mining sector, allowing management to execute its strategy with greater speed and flexibility, directly translating operational success into tangible project development.

Building the Future at Buckreef

The newfound financial muscle is being deployed to rapidly advance the expansion of the Buckreef processing plant. The company is on a clear path to increase its processing capacity from the current 2,000 tonnes per day (tpd) to over 3,000 tpd, a project aligned with the promising May 2025 Preliminary Economic Assessment (PEA).

Progress on the ground in Tanzania is tangible and proceeding at pace. Procurement for key long-lead items has been finalized, and several critical components are already arriving or being installed. A new pre-leach thickener has reached the port of Dar es Salaam, with on-site civil work already complete for its installation. Upgraded agitators and interstage screens have been delivered to the site, and their installation is currently underway.

Further technological enhancements are also nearing completion. An Aachen reactor is already installed and operating, awaiting the commissioning of a new oxygen plant that is currently enroute to Tanzania. The company anticipates both the oxygen plant and the pre-leach thickener to be commissioned in the third quarter of 2026. A new, larger gold recovery circuit (ADR plant) and gold room are under fabrication, with commissioning targeted before the end of the year.

This expansion is supported by significant infrastructure upgrades, including the construction of a third lift on the current tailings storage facility (TSF) and the advanced engineering and permitting for a new, life-of-mine TSF. This track record of successfully delivering plant expansions on time and on budget gives investors confidence in the company’s ability to execute this next, larger phase of growth.

Riding the Golden Wave

The current, historically high gold price is acting as a powerful catalyst, prompting a strategic re-evaluation of the entire Buckreef mine plan. The project's 2025 PEA was based on a conservative gold price assumption of US$1,900 per ounce. With market prices now more than double that figure, the economics of the project have been fundamentally altered.

In response, TRX Gold has initiated a comprehensive revision of its life-of-mine strategy to maximize value. Preliminary analysis suggests the potential for a significantly expanded third cutback at the Main Pit, a move that could extend the life of the open-pit operations and substantially increase the total number of recoverable ounces.

This strategic pivot may delay the originally planned start of underground mining at the Main Pit, but it opens up other lucrative possibilities. The company is evaluating an earlier start to underground mining at the separate Stamford Bridge orebody while simultaneously accelerating mining at the expanded Eastern Porphyry pit. This dynamic approach allows the company to remain nimble, directing its resources to the most profitable areas in response to market conditions. The ultimate goal is to optimize the mining sequence to generate maximum cash flow in the near and medium term, further funding long-term growth.

Deepening Roots and Expanding Horizons

Beyond the immediate financial and operational successes, TRX Gold is also focused on long-term sustainability and resource growth. The company has launched an aggressive drilling and exploration program to expand its mineral resource base across the vast Buckreef property. A second geophysical survey is underway to investigate ten new targets, and a new exploration drill rig has already begun resource upgrade and grade control drilling to support near-term mining plans.

This forward-looking exploration is complemented by a strong commitment to local development and high ESG standards. The company's expansion is expected to create hundreds of new jobs in Tanzania's Geita Region. In a significant commitment to local empowerment, Buckreef Gold has also launched a skills development program to train over 100 Tanzanian professionals in advanced mining techniques.

Furthermore, a strategic agreement signed in 2025 to sell a portion of its gold to the Bank of Tanzania underscores the project's alignment with national priorities, helping to bolster the country's foreign exchange reserves and enhance its position in the global gold market. As TRX Gold continues to advance its multi-faceted growth strategy—powered by financial strength, operational expansion, and strategic foresight—it is solidifying the Buckreef project's potential to become a cornerstone of Tanzania’s gold mining industry for many years to come.