Drill Results Expand Resource of Gold Project in SD
Research Report

1. Dakota Gold Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Dakota Gold Corp.
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Disclosures for BMO Capital Markets, Dakota Gold Corp., November 26, 2024

Analyst's Certification I, Andrew Mikitchook, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report. Analysts who prepared this report are compensated based upon (among other factors) the overall profitability of BMO Capital Markets and their affiliates, which includes the overall profitability of investment banking services. Compensation for research is based on effectiveness in generating new ideas and in communication of ideas to clients, performance of recommendations, accuracy of earnings estimates, and service to clients. Analysts employed by BMO Nesbitt Burns Inc. and/or BMO Capital Markets Limited are not registered as research analysts with FINRA. These analysts may not be associated persons of BMO Capital Markets Corp. and therefore may not be subject to the FINRA Rule 2241 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.

Company Specific Disclosures Disclosure 1: BMO Capital Markets has undertaken an underwriting liability with respect to Dakota Gold Corp within the past 12 months. Disclosure 2: BMO Capital Markets has provided investment banking services for remuneration with respect to Dakota Gold Corp within the past 12 months. Disclosure 3: BMO Capital Markets has managed or co-managed a public offering of securities with respect to Dakota Gold Corp within the past 12 months. Disclosure 4: BMO Capital Markets or an affiliate has received compensation for investment banking services from Dakota Gold Corp within the past 12 months. Disclosure 5: BMO Capital Markets or an affiliate received compensation for products or services other than investment banking services within the past 12 months from Dakota Gold Corp. Disclosure 6A: Dakota Gold Corp is a client (or was a client) of BMO Nesbitt Burns Inc., BMO Capital Markets Corp., BMO Capital Markets Limited or an affiliate within the past 12 months: A) Investment Banking Services Disclosure 6C: Dakota Gold Corp is a client (or was a client) of BMO Nesbitt Burns Inc., BMO Capital Markets Corp., BMO Capital Markets Limited or an affiliate within the past 12 months: C) Non-Securities Related Services. Disclosure 19: BMO Capital Markets Corp. ("BMO CMC") is acting as an agent to Dakota Gold on an at-the-market equity offering program. BMO CMC is being paid a fee based on the program. BMO CMC follows information control procedures which prevent its research analysts who are issuing research from having access to material non-public information received by BMO CMC's investment banking personnel in connection with the transaction. Accordingly, it is possible that individual employees at BMO CMC may have material non-public information or opinions which are not included in, and may not be consistent with, the information and opinions in this research report.

Methodology and Risks to Target Price/Valuation for Dakota Gold Corp (DC-NYSE) Methodology: We use an NAV multiple inline with other explorers and developers in the mining sector under coverage at BMO. We apply a 1.0x multiple to our NAV, which is appropriate given the early stage of exploration. To calculate NAV we assign placeholder exploration values to the JB Gold and Unionville Zones, and we model a modest heap leach mine at Richmond Hill based on existing resource base. We have not modeled financing debt or equity costs/dilution as these structures are unknown. Dakota Gold Corp | Page 3 November 26, 2024 Risks: In our opinion, there is high exploration risk to meet market expectations of continuing strong drill results from the JB Gold Zone and other targets. We also view financing risk as high — although 2024 exploration is fully funded, there is a significant amount of investment (time and money) required to advance a project from exploration through engineering studies and finally construction phase. Dakota has mitigated this risk through a non-binding proposal with Orion for up to $300m in financing support for any future construction and development. We view jurisdictional risk as low and as an added advantage, Dakota is in a known mining jurisdiction and in addition all exploration licenses are on private land.

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Dakota Gold Corp. (DC:NYSE American) announced results of 13 infill and stepout holes, which were positive, drilled as part of the 2024 program at its Richmond Hill project in South Dakota, reported BMO Capital Markets analyst Andrew Mikitchook in a Nov. 26 research note.

176% Return Implied

On the news, BMO maintained its US$6 per share price target on the South Dakota-based gold explorer,  trading at the time of the report at about US$2.17 per share, the analyst noted. The difference between these prices implies a potential return for investors of 176%.

Dakota is still rated as Outperform.

Likely Resource Expansion

Dakota's recent drilling took place in Chism Gulch, an area at Richmond Hill with minimal previous drilling, in the northeast corner of the resource envelope, reported Mikitchook. The company targeted both existing gaps in the current block model and incremental stepouts.  

Generally, results showed grades and widths similar to those in the block model and higher than expected. Two standout intercepts were 10.2 meters (10.2m) of 4.14 grams per ton (4.14 g/t) gold and 13.4m of 1.99 g/t gold.

"RH24C-115 returned 1.84 g/t over 10.5m, which we expect should extend [the] resource past [the] current boundary," Mikitchook wrote.

Further, the deposit remains open in all directions.

Role in Advancing Maitland

Richmond Hill "could represent a near-term modest gold production opportunity that could generate cash flow to fund advancing the JB gold zone discovery" at Dakota's Maitland gold project, Mikitchook reiterated. At Maitland, the company finished its 2024 drill program targeting the JB zone and the Unionville zone.

After analyzing the 2024 drill results at Maitland, Dakota may choose to follow up drill there next year.

What To Watch For

Mikitchook indicated what the near-term plans are for Richmond Hill. A steady flow of drill results from the 2024 program at this project, on track for completion at the end of last month, is to come.

An updated resource estimate, encompassing data for 145 new drill holes, is to follow. Next to be done, likely in Q2/25, is an SK1300 initial assessment, including cash flow, equivalent to a preliminary economic assessment.

"Management views Richmond Hill as a low-cost, surface oxide, heap-leach operation similar to the adjacent Wharf mine," Mikitchook wrote.