DGR GLOBAL LIMITED — Capital/Financing Update 2020

Oct 1, 2020

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DGR Global Limited

2 October 2020

DGR Global Update on SolGold

The Board of DGR Global Limited (DGR, the Company) would like to provide an update to shareholders and interested in investors regarding recent developments with LSE / TSX-listed SolGold Plc, in which DGR currently holds a 9.85% interest.

Porvenir Discovery

Overnight in London, SolGold announced the discovery of a new highly mineralised copper-gold porphyry system with the first hole drilled at the Porvenir prospect within its regional project portfolio. As shareholders would be aware, in addition to the flagship Cascabel Project in north west Ecuador, SolGold has an extensive footprint across Ecuador with its regional project portfolio, currently containing 13 priority targets, of which Porvenir is one.

PDH-20-001, the first drill hole at Porvenir, has so far intersected over 500m of visual chalcopyrite (copper sulphide mineralization), hosted by potassium-rich intrusions, as the hole continues towards a planned depth of at least 600m.

The dominant copper sulphide mineral observed to date is chalcopyrite. Chalcopyrite is the most economically important mineral in porphyry copper deposits, and contains 34.5% copper by composition[1] . Chalcopyrite mineralisation has been observed from 15.9m to the current reported depth of 525.3m.

Geological and rock-alteration vectors observed in drill core, including an increasing chalcopyrite to pyrite ratio, suggest that more intense mineralisation can be reasonably expected deeper in the system. Globally significant examples of copper-gold porphyry systems hosted by potassium-rich intrusions are numerous.

SolGold notes that the observations from its geological team are of a preliminary nature. The visual mineralization observed has not yet been assayed, and the intensity of visual mineralisation should not be used to estimate grade or commercial viability at this stage. Assay results are expected to take not less than 3 weeks from submission.

Planning and logistical work is underway to ramp up drilling by mobilising an additional five drill rigs to site as quickly as COVID-19 restrictions allow.

The Porvenir Project is in Southern Ecuador, some 100 km north of the Peruvian border. The project is situated within the eastern most metallogenic portion of the Ecuadorian sector of the Andean Copper Belt which hosts several of the world’s largest and most significant copper and gold deposits in Columbia, Ecuador, Peru, Argentina and Chile, including the Fruta Del Norte gold project owned by Lundin Gold, approximately 100km to the north-northeast.

1 http://www.webmineral.com/data/Chalcopyrite.shtml#.X3ZcQmgzaUk

DGR Global Limited ACN 052 354 837

street: Level 27, 111 Eagle Street post: GPO Box 5261 Brisbane QLD 4001 p +61 7 3303 0680 f +61 7 3303 0681 e info@dgrglobal.com.au w www.dgrglobal.com.au

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Franco Nevada Financing Transaction

On 14 September 2020, SolGold announced that it closed the US$100 million royalty financing pursuant to NSR Financing Agreement (“NSR Financing”) with Franco-Nevada Corporation (“Franco-Nevada”) in relation to the Company’s flagship Alpala copper-gold project and the remainder of the Cascabel concession in northern Ecuador.

Franco Nevada has now provided SolGold with US$100 million (the “Royalty Purchase Price”) under the NSR Financing Agreement. SolGold is applying the funds received to progress the Alpala Project through to a final Feasibility Study and a development decision. The balance of the proceeds are expected to be used for SolGold’s share of the development of Alpala pursuant to agreements with the minority shareholder of Exploraciones Novomining S.A. (ENSA), Cornerstone Capital Resources Inc.

In return for the Royalty Purchase Price, Franco-Nevada has been granted a perpetual 1% NSR royalty interest to be calculated with reference to net smelter returns from the Cascabel concession area in accordance with the terms and conditions set out in the NSR Financing Agreement. Furthermore, the NSR Financing can be upsized by US$50 million at SolGold’s election to a 1.5% NSR royalty interest within eight months from the date the NSR Financing was signed (11 May 2020).

As it reported on 30 September 2020, SolGold is currently working on its Pre-Feasibility Study, which it is aiming to finalise and publish as soon as possible.

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SolGold is continuing to pursue its strategy to become a tier 1 copper producing company through the aggressive exploration of its extensive tenement portfolio in Ecuador. The first pass regional exploration program is fully funded until mid- to late-2021.

Compliance with the ASX Listing Rules restricts what can be detailed by DGR Global in this announcement. Accordingly, interested investors are encouraged to read the full details of these developments, which are available in SolGold’s market releases, available on its website ( www.solgold.com.au ).

DGR Global’s equity stake in SolGold is currently worth approximately $115 million based on the LSE closing price on Thursday 1 October 2020.

Reference is made to DGR Global’s market release of 27 April 2020, which advised of the receipt of correspondence from ASIC which stated that in ASIC’s view, the Company should be accounting for its interest in SolGold on the basis of equity accounting . In its correspondence, ASIC further states that “[t]he adjustment should be treated as a prior period error in the Company’s financial report for the year ending 30 June 2020.”

By way of illustration only, if the equity method of accounting was adopted for DGR’s investment in SolGold plc in the annual financial statements for 30 June 2020, it would have resulted in a decrease in Other Financial Assets of $76,906,576, a decrease in Deferred Tax Liabilities of $19,147,313, an increase in Accumulated Losses of $13,082,198 and a decrease in Reserves of $44,677,065.

The Company disagrees with ASIC’s view, and has advised ASIC accordingly in a letter of response dated 8 May 2020. The Company continues to believe that its application of the relevant accounting standard is consistent with the law. Furthermore, its view is supported by the independent professional advice that it has received on the matter.

DGR Global Limited ACN 052 354 837 street: Level 27, 111 Eagle Street post: GPO Box 5261 Brisbane QLD 4001 p +61 7 3303 0680 f +61 7 3303 0681 e info@dgrglobal.com.au w www.dgrglobal.com.au

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For clarity, the Company advises that the matter in dispute is purely related to one of professional judgement in the application of the particular accounting standard as it relates to the accounting treatment of Company’s interest in SolGold in its published financial statements. This is separate and distinct to the matter of the market value of the Company’s interest in SolGold, which remains unaffected.

This Announcement is Authorised by the Board of Directors. Karl Schlobohm Company Secretary

Electronic copies of all DGR market releases, together with more corporate and project related information is available on the Company website: www.dgrglobal.com.au

Email: info@dgrglobal.com.au

Twitter: @DGRGlobal

For further information contact:

Mr Nicholas Mather Karl Schlobohm Sarah Schuiringa Managing Director Company Secretary Marketing / PR Ph: 07 3303 0680 Ph: 07 3303 0680 Ph: 07 3303 0680

About DGR Global Limited

DGR Global’s business is the creation of resource exploration development and mining companies.

The business uses the skills of a core team of talented geoscientists to identify resource projects capable of yielding world class discoveries of attractive commodities. This is achieved through:

• The identification of commodities with a favorable 20 year price outlook.

• Geological terranes with:

  • A demonstrated strong endowment for that commodity;

  • An under-explored history;

  • Opportunity for the application of recently developed exploration techniques;

  • Jurisdictions with improving socio-economic and regulatory frameworks;

  • Extensive available tenures.

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DGR Global Limited ACN 052 354 837 street: Level 27, 111 Eagle Street post: GPO Box 5261 Brisbane QLD 4001 p +61 7 3303 0680 f +61 7 3303 0681 e info@dgrglobal.com.au w www.dgrglobal.com.au