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TORONTO, ONTARIO, April 29, 2022 – Mangazeya Mining Ltd. (“Mangazeya” or the “Company”) (NEX: MGZ.H) announced the filing of its audited consolidated financial statements
(“Financial Statements”) and management’s discussion and analysis (“MD&A”) for the financial year ended December 31, 2021 as required by the National Instrument 51-102 Continuous
Disclosure Obligations.

All figures are quoted in thousands of Canadian dollars unless otherwise indicated.

Fourth quarter and 2021 highlights:

• In 2021 the total revenue of the Group increased by 51% compared to the previous year in line
  with the increase in sales volumes by 65%.
• The total gold production in 2021 amounted to 87.9k ounces, which represents a 70% increase
  in comparison with the previous year, mostly because of the higher volumes of production and
  processing of ore with higher concentration of gold at Nasedkino deposit
• The Group had a total net negative cash flow of $7.3 million in 2021, that also excludes a
  payment under the bank loan agreement in the amount of $9.4 million (7.5 million USD) that
  was technically rescheduled from December 2021 to January 2022.
• The decrease of the total cash cost per ounce at Nasedkino deposit among other factors is
  attributed to processing of ore with a high concentration of gold (2.9 g/t) in 2021, it is expected
  that in 2022 and onwards this parameter would be of a lower level.
• The recent developments in relation to the geopolitical environment since the end of February
  2022 and the corresponding serious sanction measures imposed on Russia represent significant challenges for the Company’s operations and its financial position (see below ‘subsequent
  events’).

  Savkinskoye deposit
  In 2021 no gold has been produced or sold, the Company resumed stripping activities at the
  end of 2021 and plans to resume production in 2022.

  Kochkovskoye deposit
  The gold produced in 4Q and in the year 2021 amounted to 3.5 and 13.6k ounces respectively,
  which is lower than in the same periods of the previous year due to reduction of mining and
  processing activities in part of oxidized ore.
  The sales of gold were 4.1k and 13.5k ounces in 4Q 2021 and 2021 respectively.

  The average TCC for gold mined at Kochkovskoye for 2021 was $1,799 per ounce, which
  represents a 50% increase in comparison with 2020 ($1,200) due to the decrease of production
  and sales volumes, while the fixed cost share in the cost of sales structure remained stable.

  Nasedkino deposit
  In 4Q and in the year 2021 respectively 33.6k and 74.3k ounces of gold were produced
  representing a significant increase in comparison with the previous year due to higher
  volumes of gold mined and processed.
  In 4Q and in the year 2021 respectively 32.7k and 72.1k ounces of gold were sold.
  The TCC for gold sold amounted to $614 per ounce that is by 39% lower than in the
  comparative period due to the effect of decrease of the fixed cost component in the cost of
  sales structure per one unit sold because of the increased volumes of production and sales.
  The decrease is also related to processing of the ore of a higher gold grade that is a temporary
  factor applicable for the reporting period (2021), the Company expects this parameter to be
  of a lower level since 2022 and onwards.

• The gross consolidated profit of Mangazeya Mining Ltd for the 2021 amounted to $103.4 mln,
  and the gross profit margin was 53%. The increase of gross profit against the comparative
  period by 70% due to higher revenue as well as the reduction of the fixed costs share in the
  cost of sales structure of Nasedkino due to higher amount of production and sales volumes.
• The general and administrative expenses for 2021 were $9.9 mln, representing a decrease of
  15% compared to the same period of the previous year.
• In the 2021 the Company had a positive adjusted EBITDA of $118.1 million and an adjusted
  EBITDA margin of 61%.
• The finance expenses of the Company in 2021 totaled $56.0 million, including the expenses on
  derivative financial instruments of $39.8 mln as well as interest expenses on bank loans in the
  amount of $11.3 mln.
• The Company’s net income for the year 2021 was $51.8 million.

Cash flow and capital resources:

• In 2021 the Company had a positive cash flow of $115.9 million from operating activities
  before changes in working capital, being a result of increased volumes of sales and stable
  market prices.
• During 2021 the Company invested $38.0 million in technical enhancement of the
  production facilities, exploration and evaluation activities and upgrade of IT infrastructure.
• In 2021 the Company’s cash outflow on financing activity was $47.5 million, representing
  settlements under bank loan agreements, payments in regard to finance lease obligations and
  3 financial instruments. This excludes the payment under the bank loan agreement in the
  amount of $9.4 million (7.5 million USD) that was technically rescheduled from December
  2021 to January 2022.

Subsequent events

The deterioration of the geopolitical situation resulting from the conflict in Ukraine rapidly developing
since the end of February 2022 has led to severe economic sanctions adopted by the United States, the
European Union, the United Kingdom, Canada and other countries against Russian Federation. The
already adopted measures and announced future restrictions represent significant challenges and an
increased level of uncertainty for the Russian economy in general and specific industries in particular,
including the metals and mining sector. The management of the Company considers the main factors
of risk:
– the global disruptions in the supply chains, leading to higher operational and capital costs for
the Company.
– the sanctions imposed on the banking system imply difficulties of access to capital markets,
resulting in increased borrowing rates
– the general macroeconomic environment may affect the gold sales by the increased discounts
to the gold price.
While the management assumes that the Company will be able to continue its current operational
activities and work on the achievement of its business goals, the unprecedented sanctions already
adopted and possible in the future, and further unpredictable developments of economic and political
situation are expected to have an impact on the financial results of 2022.

The Financial Statement and MD&A are available on Mangazeya’s website at https://mangazeyamining.ru and have been filed on SEDAR at www.sedar.com.

About Mangazeya Mining Ltd.
Mangazeya Mining Ltd. is a NEX-listed mining and exploration company, focused on the development of mineral resources in the Russian Federation.

Contact:
Anton Grigoryev
Corporate Secretary
Mangazeya Mining Ltd.
a.grigoryev@mangazeya.ru