Contango ORE, Inc. announced that it had received updates to the projected 2022 budget for Peak Gold, LLC, in which the Company holds a non-controlling 30% interest. Peak Gold JV plans to mine ore from the Main and North Manh Choh deposits located within the State of Alaska (the "Manh Choh Project"). The Company's quarterly report on Form 10-Q filed with the Securities and Exchange Commission on February 10, 2022 disclosed that the Peak Gold JV had approved a $47.9 million spending program for 2022, of which the Company's share would be approximately $14.4 million.

At a meeting of the Management Committee of Peak Gold JV held on February 14, 2022, Kinross Gold Corporation, the Manager of Peak Gold JV, presented updated information that resulted in a decrease in the Peak Gold JV spending program for 2022 to approximately $26 million, of which the Company's share would be approximately $7.8 million. The Manager explained that the decrease is due to a revised work plan resulting from recent impacts of inflation, contractor and labor market constraints in Alaska. The Manager determined that it was in the best interests of the Peak Gold JV that certain activities that were initially planned for 2022 be delayed pending further analysis of options including a re-bidding process.

Despite the reduced budget, the Manager expects the Peak Gold JV's feasibility study to remain on target for the second half of 2022, and for initial production to occur in 2024.