Baru Gold Corp. ("Baru" and its subsidiary PT. Tambang Mas Sangihe) announced to stakeholders and investors the signing of an agreement with an Asian-based Investment and Banking Advisory Firm to assist with placing a USD 15 Million gold-prepayment agreement.

The financing to be covered by the Gold Loan is in the form of a loan that is non-dilutive to shareholders. The expected date of closing is in approximately 90 days. The Gold Loan is in addition to the Private Placement announced on January 4, 2023.

The Investment Firm is headquartered in Singapore with offices worldwide and is a leading finance provider to growing companies in Southeast Asia, the Middle East and Africa. The Investment Firm has a long and successful track record of investments in Indonesia. With worldwide capital networks, they have raised over USD 1.6 Billion and worked extensively on securing financing for various mining companies and companies that trade precious metals.

The terms of the engagement of the Investment Firm include the payment of: a non-refundable commitment fee of $7,500; a non-refundable milestone fee of $10,000 payable upon acceptance and signing of any indicative term sheet or contract with the proposed lender; a 2.75% fee based on the prepayment amount and the loan principal payable upon the closing of the loan transaction; and a 2% commission on the sale value of any gold dore sold to any purchasing parties introduced by the Investment Firm to the Company. The primary objective of the Gold Loan is to bring the Sangihe Project into production. Most of the funding will be used to expand land acquisition, construct more heap leach pads, build additional pits and other necessary production facilities, hire security, and obtain a Merrill Crowe Plant.

A Merrill Crowe Plant will significantly improve the processing speed and recovery rates of gold, allow the extraction of silver and copper, and reduce the Company's environmental impact. Based on the metallurgical test results announced on April 11, 2022, with the utilization of a Merrill Crowe Plant, the Company expects gold recoveries of 85% and silver recoveries to reach approximately 96%. The secondary objectives of the Gold Loan are to retire old debt and to expand the drilling and exploration program.

The initial area targeted for this drilling program is covered in the Sangihe 2010 NI 43-101 report that identified 835,000 ounces of gold as an inferred resource between Binebase and Bawone villages over an approximately 1.2 kilometres of strike length. An infill drilling program will be conducted in this area to upgrade some inferred resources into indicated and measured resource status. Thereafter, exploration drilling will continue over an additional 1.45 kilometres from Bawone to the South of Salurang and in other targeted regional areas.

As announced on February 7, 2022, and February 14, 2022, The Murphy Geological Services Structural Survey identified 23 additional exploration targets and subsequent ground truth sampling at the Kingston Target revealed high-grade gold (14.60 g/t) and silver (13.60 g/t) assays. Most of the area within the Company's Contract of Work is unexplored and a priority of the Company is to identify new targets to expand production operations.