What you need to know: • Allegiant Gold is a leading gold explorer with five assets in Nevada. Its flagship, the Eastside District, hosts a 1.4Moz Au and 9Moz Ag deposit. • AUAU has commenced a 5,000m drill program at Eastside, part of which will focus on resource expansion and the rest on exploration targets. • Utilizing its project farm-out strategy, the Company has brought in ~$7.5M over the last five years, limiting dilution to shareholders and supporting its clean capital structure which has no warrants. • We value AUAU at $0.50/share based on US$25/oz in-the-ground. Allegiant Gold Ltd. (AUAU:TSXV) is a precious metals exploration company based out of Tonopah, Nevada, with a focus on gold. Allegiant is currently developing its flagship asset, the Eastside District which hosts two mineral resources at the McIntosh and the Castle Projects within the District, totalling an inferred resource of 1.4Moz Au at 0.54 g/t and 8.7Moz Ag at 4.4 g/t. In addition to Eastside, Allegiant has four other projects in Nevada, which the Company will continue exploring as part of its farm-out strategy. This strategy helps the Company minimize shareholder dilution by generating funds through partnerships, separating the Company from its peers. AUAU is led by a strong management team, board, and partners that combine to own 28% of the shares, notably, Kinross Gold (K:TSX) holds 10% of the outstanding shares and provides exploration and operational support to the Company. We are initiating coverage on Allegiant Gold Ltd. with a BUY rating and target price of $0.50/share. Investment Thesis Summary Eastside District – Existing Resource & Tier-1 Asset in the Making. The Eastside District hosts two resources which combine to 1.4Moz of gold. The District shows strong potential of growing to a multi-million-ounce deposit and ultimately becoming an attractive takeout target for the several major miners in the region. Basket of Complimentary Assets. Beyond Eastside, AUAU has four other assets all of which lie in Nevada, benefit from the state’s rich geological resources and are strategically positioned near some of the largest mines in the world. Farm-Outs & Cash Generation. Over the last five years, AUAU has spun out two projects, for a cash compensation of ~$7.5M. This strategy allows the Company to minimize dilution to shareholders, providing cash to explore its flagship assets. Great Partner & Potential Acquirers. Kinross Gold has 10% ownership, is a strategic advisor, and its Round Mountain Mine is close to Eastside. Many other major companies, such as Barrick, Newmont, and AngloGold Ashanti, are in proximity to several of Allegiant’s five assets making it an attractive M&A target. Motivated Management (Significant Insider Ownership). Management currently owns 14%. Notably, most of management’s shares were bought in the open market as the Company was not founded by the current management team. Clean Capital Structure and Financial Responsibility. Since new management took over in 2019, the Company has had one of the lowest dilution and best performance of any company in its peer group, hasn’t raised money in over two years, has just 105M shares outstanding, and no warrants outstanding.