TRX GOLD Corp

Processing

During Q4 2024 the Company announced completion of the expanded processing plant to 2,000 tpd of nameplate processing capacity. The newly expanded processing plant was fully commissioned in September 2024 following installation of the 4-way cyclone cluster and has been consistently achieving, on average, 1,938 tpd of mill throughput following full plant commissioning, reaching a maximum of 2,016 tpd, a 149% increase over Q3 2024. Following completion of the expanded plant, Q4 2024 production increased to 5,767 ounces from Q3 2024 (4,628 ounces), a 25% increase over the prior quarter, as the increase in processing plant throughput more than offset the impact of lower head grade (Q4 2024: 1.66 g/t, Q3 2024: 2.53 g/t). During Q4 2024 the processing plant achieved the following statistics: (i) average throughput of 1,542 tpd (Q4 2023: 801 tpd); (ii) plant availability of 91% (Q4 2023: 85%); and (iii) an average recovery rate of 77% (Q4 2023: 88%). While the Company benefitted from an increase in average throughput following completion of the expanded 2,000 tpd processing plant, the mill processed a higher proportion of blended material (34% oxide / 66% sulphide) in Q4 2024, compared to 100% oxide material processed in Q4 2023, which impacted average recoveries. The Company is currently developing finer grinding initiatives to achieve higher gold recoveries, consistent with the results announced upon completion of the metallurgical variability study.

Management’s Discussionand AnalysisAugust 31, 2024

For the three months ended August 31, 2024, processing costs per tonne of $13.23 were significantly lower than the prior year comparative period (Q4 2023: $ 25.76 per tonne) predominantly due to greater economies of scale following final commissioning of the expanded 2,000 tpd processing facility. The higher processing plant throughput of 1,542 tpd in Q4 2024 (Q4 2023: 801) provided a higher proportion of overhead cost absorption, thus benefiting processing cost per tonne in Q4 2024.

For the twelve months ended August 31, 2024, processing costs per tonne of $20.07 were lower than the prior year comparative period (2023: $21.81 per tonne) predominantly due to greater economies of scale, from higher overhead cost absorption following completion of the expanded 2,000 tpd processing facility in Q4 2024, combined with lower fuel costs due to an increase in grid power availability. The connection of the new powerline to Buckreef Gold was completed during November 2023 and has provided more stable, consistent power availability and improved power and fuel costs compared to the prior year comparative period.