Superior Gold Reports Strong 1st Quarter Results.

TORONTO: Superior Gold Inc. ("Superior Gold" or the "Company") (TSXV: SGI) announces financial results for the first quarter of 2021 for the Company's 100%-owned Plutonic Gold Operations, located in Western Australia.

First Quarter Highlights

Increased production by 11% over the fourth quarter of 2020 to 17,603 ounces, with sales of 17,538 ounces

Improved stope grade by a further 13% to 3.5 g/t gold representing an improvement for a third consecutive quarter

Increased milling recoveries to 86%, in part due to the finalization of re-commissioning of the gravity circuit in the fourth quarter of 2020

Realized a record average gold price of $1,777/oz above All-In Sustaining Cost1 ("AISC") of $1,510/oz, a 10% reduction from the fourth quarter of 2020

Net income for the period of $0.03 per share and adjusted net income of $0.01 per share

Significantly improved cash flow from operations to $4.9 million before changes in working capital and gold loan repayment

Generated free cash flow2 increasing the cash position at quarter end to $17.9 million in cash and cash equivalents

Repaid $2.2 million of the Auramet gold loan, with the remaining $2.0 million scheduled to be fully repaid by June 30, 2021

Announced positive exploration results, establishing two new mining fronts, results included 21.8 g/t gold over 8.3 metres at the Baltic Gap Mining Front3 and 13.7 g/t gold over 8.8 metres at the Western Mining Front4

Recorded zero incidences of COVID-19 infection for a fifth consecutive quarter

Tamara Brown, Interim CEO of Superior Gold stated: "Our first quarter results are a significant improvement and begin to highlight the full potential of Plutonic. We are delighted to report our third quarter-over-quarter increase in production as well as a meaningful decrease in AISC over the prior quarter. The operational initiatives that we put in place last year are resulting in a steady improvement in our mined stope grade, which has increased for a third consecutive quarter and represents a 47% improvement relative to the second quarter of 2020, after which we initiated the changes at the Company. Pleasingly, this operational improvement is driving cash flow from operations of close to $5 million, with the resultant free cash flow further improving our cash position.

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1 This is a Non-IFRS measure. Refer to Non-IFRS measures section of the Company's MD&As for a description of these measures.

2 Free cash flow is defined as cash from...