14 March 2023

Lexington Gold Ltd

("Lexington Gold" or the "Company")

US$150,000 Unsecured Loan Facility

Lexington Gold (AIM: LEX), the gold exploration and development company with projects in North and South Carolina, USA, is pleased to announce that a wholly owned subsidiary of the Company has entered into a US$150,000 unsecured loan facility (the "Loan Facility") with Edward Nealon, a director and Chairman of the Company (the "Lender"), to be utilised to satisfy the group's ongoing working capital requirements and costs associated with evaluating potential additional new gold projects/opportunities.

Highlights:

·   US$150,000 Loan Facility obtained from the Company's Chairman, a significant shareholder in the Company

·    The Loan Facility provides working capital and financial flexibility whilst the Company:

o  awaits the assay results from its recent sampling and mapping campaigns at both the Jennings-Pioneer and Argo projects; and

o  evaluates potential additional new gold projects/opportunities both in the Carolinas and in other well-known, global gold producing jurisdictions.

·    The Loan Facility serves to avoid equity dilution for existing shareholders at the current time

Bernard Olivier, CEO of Lexington Gold, commented:

"The purpose of this Loan Facility is to provide the Company with additional working capital and financial flexibility as it awaits the assay results from its recent sampling and mapping campaigns at both the Jennings-Pioneer and Argo projects which will then enable us to design the next phase of work. The Loan Facility also enables the Company to continue to evaluate and seek to secure potential additional new gold projects/opportunities in the Carolinas as well as other well-known, global gold producing jurisdictions, whilst avoiding equity dilution for shareholders in the current uncertain market environment."

Loan Facility

The purpose of the Loan Facility is to provide the Company with additional working capital and financial flexibility as it awaits the assay results from its recent sampling and mapping campaigns at both the Jennings-Pioneer and Argo projects which will then enable us to design the next phase of work including generating drill targets, especially at Jennings-Pioneer which remains a very exciting project for the Company. In addition, it enables us to continue to evaluate potential additional new gold projects/opportunities, both in the Carolinas and other well-known global gold producing jurisdictions, whilst avoiding equity dilution for existing shareholders at this time.

The Loan Facility is unsecured, has a 12-month term from the date of drawdown, and bears interest at a rate of 5 per cent. per annum, payable on maturity. The agreement includes customary terms and conditions for a facility of this nature, including a condition that the Company and its relevant subsidiary will not pledge or charge any assets to any other creditors without the prior consent of the Lender, such consent not to be unreasonably withheld. In the event of any unremedied default, interest shall be payable at a rate of 1 per cent. per month.

Related Party Transaction

The Lender, Edward Nealon, is a director of the Company. The Loan Facility therefore constitutes a related party transaction pursuant to Rule 13 of the AIM Rules for Companies. Accordingly, the independent directors in respect of the Loan Facility, being Rhoderick Grivas, Melissa Sturgess and Bernard Olivier, having consulted with the Company's Nominated Adviser, Strand Hanson Limited, consider that the terms of the Loan Facility are fair and reasonable insofar as the Company's shareholders are concerned.

The Board believes that the Loan Facility represents the most attractive funding option at this time and avoids equity dilution for the Company's shareholders whilst awaiting assay results and evaluating potential additional new gold projects/opportunities.

For further information, please contact:

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended by virtue of the Market Abuse (Amendment) (EU Exit) Regulations 2019.

- ENDS -

Note to Editors:

Lexington Gold (AIM: LEX) is a gold exploration and development company currently holding interests in four diverse gold projects, covering a combined area of approximately 1,675 acres in North and South Carolina, USA with a JORC (2012) Total Inferred Resource of 6,976,000t @ 0.94 g/t Au for 210,800 oz of contained gold. The projects are situated in the highly prospective Carolina Super Terrane ("CST"), which has seen significant historic gold production and is host to a number of multi-million-ounce mines operated by majors. It was also the site of the first US gold rush in the early 1800s, before gold was discovered in California.

Further information is available on the Company's website: www.lexingtongold.co.uk. Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.