# EDGAR Filing Document

**Accession Number:** 0001173643
**File Stem:** 0001171843-23-000268
**Filing Date:** 2023-1
**Character Count:** 137161
**Document Hash:** 9f894ea5895aa90de0f8c5586acb8676
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001171843-23-000268.hdr.sgml**: 20241204

**ACCESSION NUMBER**: 0001171843-23-000268

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 95

**CONFORMED PERIOD OF REPORT**: 20221130

**FILED AS OF DATE**: 20230117

**DATE AS OF CHANGE**: 20230113

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** TRX GOLD Corp
- **CENTRAL INDEX KEY:** 0001173643
- **STANDARD INDUSTRIAL CLASSIFICATION:** GOLD & SILVER ORES [1040]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** A0
- **FISCAL YEAR END:** 0831

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-32500
- **FILM NUMBER:** 23529877

**BUSINESS ADDRESS:**
- **STREET 1:** SUITE 200, 150 KING STREET WEST
- **CITY:** TORONTO
- **STATE:** A6
- **ZIP:** M5H 1J9
- **BUSINESS PHONE:** 416-315-0662

**MAIL ADDRESS:**
- **STREET 1:** SUITE 200, 150 KING STREET WEST
- **CITY:** TORONTO
- **STATE:** A6
- **ZIP:** M5H 1J9

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Tanzanian Gold Corp
- **DATE OF NAME CHANGE:** 20220510

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** TRX GOLD Corp
- **DATE OF NAME CHANGE:** 20220505

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Tanzanian Gold Corp
- **DATE OF NAME CHANGE:** 20190502

?xml version="1.0" encoding="utf-8"?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, DC 20549**

**Form 6-K**

**REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 or 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934**

For the month of January 2023

Commission File No. 001-32500

<u>TRX GOLD Corporation</u>

(Translation of registrant's name into English)

277 Lakeshore Road East, Suite 403

Oakville, Ontario Canada L6J 6J3

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under the cover Form 20-F or Form 40-F.

Form 20-F ☐ Form 40-F ☒

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Explanatory Note

TRX Gold Corp. (the "Company") is furnishing this Form 6-K to provide its financial information for the three months ended November 30, 2022, and to incorporate such financial information into the Company's registration statements referenced below.

Exhibits 99.1 and 99.2 attached hereto are hereby incorporated by reference into the Company's Registration Statements on Form F-3 (Registration Statement File numbers 333-248210; 333-250146; and 333-255526) and on Form S-8 (Registration Statement File number 333-234078) to be a part thereof from the date on which this report is submitted, to the extent not superseded by documents or reports subsequently filed.

Exhibits

The following exhibits are filed as part of this Form 6-K.

---

| | |
|:---|:---|
| Exhibit No. | Document |
| [99.1](exh_991.htm) | [Unaudited financial statements for the three months ended November 30, 2022](exh_991.htm) |
| [99.2](exh_992.htm) | [Management's Discussion & Analysis for the three months ended November 30, 2022](exh_992.htm) |
| 101.INS | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document). |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101). |

---

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Form 6-K report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | TRX Gold Corporation | TRX Gold Corporation |
|  | (Registrant) | (Registrant) |
|  | By: | <u>/s/ Stephen Mullowney</u> |
|  |  | Stephen Mullowney, Chief Executive Officer |
| Date: January 13, 2023 |  |  |

---

## Exhibit 99.1

?xml version="1.0" encoding="utf-8"?

**Exhibit 99.1**

![](logo.jpg)

**TRX Gold Corporation**

**Interim Condensed Consolidated** 

**Financial Statements** 

**(Unaudited)**

**For the three months ended**

**November 30, 2022 and 2021**

**TRX Gold Corporation**

**Interim Condensed Consolidated Statements of Financial Position**

**(Unaudited)**

(Expressed in Thousands of US Dollars)

---

| | | | |
|:---|:---|:---|:---|
| | **Note** | **November 30, 2022** | August 31, 2022<br> (Note 2)  |
| **Assets** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Current Assets** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash |  | $**8930** | $8476 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amounts receivable | 5 | **1624** | 2540 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepayments and other assets | 6 | **1220** | 1206 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | 7 | **3831** | 3630 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current assets** |  | **15605** | 15852 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other long-term assets | 5 | **4976** | 4359 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mineral property, plant and equipment | 8 | **54757** | 51634 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total assets** |  | $**75338** | $71845 |
| **Liabilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Current Liabilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amounts payable and accrued liabilities |  | $**7103** | $7920 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Withholding tax payable |  | **181** | 181 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax payable |  | **789** | 436 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current portion of deferred revenue | 9 | **2627** | 1864 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current portion of lease liabilities |  | **64** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative warrant liabilities | 10 | **3484** | 6849 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current liabilities** |  | **14248** | 17250 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities |  | **77** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 9 | **-** | 621 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax liability |  | **1129** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for reclamation |  | **2850** | 2815 |
| **Total liabilities** |  | **18304** | 20686 |
| **Equity** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share capital |  | **164173** | 163946 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based payments reserve | 12 | **7313** | 6825 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Warrants reserve | 13 | **1700** | 1700 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit |  | **(120161)** | (123673) |
| **Equity attributable to shareholders** |  | **53025** | 48798 |
| Non-controlling interests | 14 | **4009** | 2361 |
| **Total equity** |  | **57034** | 51159 |
| **Total equity and liabilities** |  | $**75338** | $71845 |

---

*The accompanying notes are an integral part of these interim condensed consolidated financial statements.*

**TRX Gold Corporation**

**Interim Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)**

**(Unaudited)**

(Expressed in Thousands of US Dollars, except per share amounts)

---

| | | | |
|:---|:---|:---|:---|
|  | | **Three months ended**<br> **November 30,** | **Three months ended**<br> **November 30,** |
| | <br>**Note** | **2022** | 2021<br> (Note 2)  |
| **Revenue** | 19 | $**9718** | $- |
| **Cost of sales** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Production costs |  | **(3518)** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Royalty |  | **(697)** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation |  | **(193)** | - |
| **Total cost of sales** |  | **(4408)** | - |
| **Gross profit** |  | **5310** | - |
| General and administrative expenses | 16 | **(1837)** | (2345) |
| Gain on derivative warrant liabilities | 10 | **3365** | 208 |
| Foreign exchange (losses) gains |  | **(7)** | 18 |
| Interest and other expenses |  | **(185)** | (39) |
| **Income (loss) before tax** |  | **6646** | (2158) |
| Income tax expense | 17 | **(1486)** | - |
| **Net income (loss) and comprehensive income (loss)** |  | $**5160** | $(2158) |
| **Net income (loss) and comprehensive income (loss) attributable to:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholders |  | $**3512** | $(2022) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-controlling interests |  | **1648** | (136) |
| **Net income (loss) and comprehensive income (loss)** |  | $**5160** | $(2158) |
| **Earnings (loss) per share attributable to shareholders** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic and diluted earnings (loss) per share | 11 | $**0.01** | $(0.01) |

---

*The accompanying notes are an integral part of these interim condensed consolidated financial statements.*

**TRX Gold Corporation**

**Interim Condensed Consolidated Statements of Changes in Equity**

**(Unaudited)**

(Expressed in Thousands of US Dollars, except share amounts)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Share Capital** | **Share Capital** | **Reserves** | **Reserves** | | | | |
| | **Number of <br> Shares** | **Amount** | **Share-based <br> payments** | **Warrants** |<br> **Accumulated <br> deficit** |<br> **Owner's <br> equity** |<br> **Non-<br> controlling <br> interests** |<br>**Total <br> equity** |
| **Balance at August 31, 2021** | **254870556** | $**158129** | $**5680** | $**1606** | $**(117457)** | $**47958** | $**(1533)** | $**46425** |
| &nbsp;&nbsp;&nbsp;Shares issued for settlement of debts | 165889 | 98 |  |  |  | 98 |  | 98 |
| &nbsp;&nbsp;&nbsp;Share-based compensation expense (Note 12) |  |  | 980 |  |  | 980 |  | 980 |
| &nbsp;&nbsp;&nbsp;Net loss for the period | - | - | - | - | (2022) | (2022) | (136) | (2158) |
| **Balance at November 30, 2021** | **255036445** | $**158227** | $**6660** | $**1606** | $**(119479)** | $**47014** | $**(1669)** | **45345** |
| &nbsp;&nbsp;&nbsp;Shares issued for financing | 909901 | 373 |  |  |  | 373 |  | 373 |
| &nbsp;&nbsp;&nbsp;Shares issued for cash, net of share issuance costs | 17948718 | 3867 |  |  |  | 3867 |  | 3867 |
| &nbsp;&nbsp;&nbsp;Stock options exercised | 450000 | 258 | (111) |  |  | 147 |  | 147 |
| &nbsp;&nbsp;&nbsp;Shares issued for share-based payments | 1801120 | 1221 | (1221) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Witholding tax impact on restricted share units |  |  | (636) |  |  | (636) |  | (636) |
| &nbsp;&nbsp;&nbsp;Warrants issued |  |  |  | 94 |  | 94 |  | 94 |
| &nbsp;&nbsp;&nbsp;Share-based compensation expense |  |  | 2133 |  |  | 2133 |  | 2133 |
| &nbsp;&nbsp;&nbsp;Net loss for the period | - | - | - | - | (4194) | (4194) | 4030 | (164) |
| **Balance at August 31, 2022** | **276146184** | $**163946** | $**6825** | $**1700** | $**(123673)** | $**48798** | $**2361** | $**51159** |
| &nbsp;&nbsp;&nbsp;Shares issued for share-based payments | 442500 | 227 | (227) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Share-based compensation expense (Note 12) |  |  | 809 |  |  | 809 |  | 809 |
| &nbsp;&nbsp;&nbsp;Witholding tax impact on restricted share units |  |  | (94) |  |  | (94) |  | (94) |
| &nbsp;&nbsp;&nbsp;Net income for the period | - | - | - | - | 3512 | 3512 | 1648 | 5160 |
| **Balance at November 30, 2022** | **276588684** | $**164173** | $**7313** | $**1700** | $**(120161)** | $**53025** | $**4009** | $**57034** |

---

*The accompanying notes are an integral part of these interim condensed consolidated financial statements.*

**TRX Gold Corporation**

**Interim Condensed Consolidated Statements of Cash Flows**

**(Unaudited)**

(Expressed in Thousands of US Dollars)

---

| | | | |
|:---|:---|:---|:---|
|  | | **Three months ended**<br> **November 30,** | **Three months ended**<br> **November 30,** |
| | <br>**Note** | **2022** | 2021 |
| **Operating** |  |  |  |
| Net income (loss) |  | $**5160** | $(2158) |
| Adjustments for items not involving cash: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-cash items | 21 | **(1016)** | 887 |
| Changes in non-cash working capital: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Decrease (increase) in amounts receivable |  | **915** | (42) |
| &nbsp;&nbsp;&nbsp;&nbsp;Increase in inventories |  | **(125)** | (338) |
| &nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in prepaid and other assets |  | **(14)** | 182 |
| &nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in amounts payable and accrued liabilities |  | **1371** | (1486) |
| &nbsp;&nbsp;&nbsp;&nbsp;Increase in income tax payable |  | **357** | - |
| **Cash provided by (used in) operating activities** |  | $**6648** | $(2955) |
| **Investing** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Exploration and evaluation assets and expenditures |  | $**-** | $(2192) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from gold sales |  | **-** | 535 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of mineral property, plant and equipment |  | **(5419)** | (906) |
| &nbsp;&nbsp;&nbsp;&nbsp;Increase in other long-term assets |  | **(617)** | - |
| **Cash used in investing activities** |  | $**(6036)** | $(2563) |
| **Financing** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Withholding taxes on settlement of restricted share units |  | $**(94)** | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;Lease payments |  | **(64)** | - |
| **Cash used in financing activities** |  | $**(158)** | $- |
| Net increase (decrease) in cash |  | $**454** | $(5518) |
| Cash at beginning of the period |  | **8476** | 13447 |
| **Cash at end of the period** |  | $**8930** | $7929 |

---

*The accompanying notes are an integral part of these interim condensed consolidated financial statements.*

---

| |
|:---|
| **TRX Gold Corporation** |
| **Notes to the Interim Condensed Consolidated Financial Statements** |
| **For the three months ended November 30, 2022 and 2021**  |
| **(Unaudited)** |
| (Expressed in Thousands of US dollars, except for share and per share amounts) |

---

1. Nature of operations

TRX Gold Corporation ("TRX Gold", "Group" or the "Company") was incorporated in the Province of Alberta on July 5, 1990 under the Business Corporations Act (Alberta). The Company's principal business activity is the exploration, development and production of mineral property interests in the United Republic of Tanzania ("Tanzania"). On November 1, 2022, the Company declared commercial production on the 1,000+ tonnes per day process plant at its Buckreef Gold Project ("Buckreef") in Tanzania.

The Company's registered office is 400 3<sup>rd</sup> Avenue SW, Suite 3700, Calgary, Alberta, T2P 4H2, Canada and the Company's principal place of business is 277 Lakeshore Road E, Suite 403, Oakville, Ontario, L6J 6J3, Canada.

The Company's common shares are listed on the Toronto Stock Exchange in Canada (TSX: TNX) and NYSE American in the United States of America (NYSE American: TRX).

The Company is primarily focused on development and mining operations, exploring, and evaluating its mineral properties. The business of exploring and mining for minerals involves a high degree of risk. The underlying value of the mineral properties is dependent upon the existence and economic recovery of mineral resources and reserves, the ability to raise long-term financing to complete the development of the properties, government policies and regulations, and upon future profitable production or, alternatively, upon the Company's ability to dispose of its interest on an advantageous basis; all of which are uncertain.

2. Basis of preparation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a)** **Statement of compliance** 

The Company's interim condensed consolidated financial statements have been prepared in accordance with International Accounting Standards ("IAS") 34, *Interim Financial Reporting*, as issued by the International Accounting Standards Board. The interim condensed consolidated financial statements do not include all disclosures required by International Financial Reporting Standards ("IFRS") for annual financial statements and should be read in conjunction with the Company consolidated financial statements for the year ended August 31, 2022.

These interim condensed consolidated financial statements were approved by the Board of Directors of the Company on January 12, 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b)** **Comparative figures** 

Certain comparative amounts have been restated to conform to the current period's presentation.

The reclassification in presentation resulted in the following impact on the Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) for the three months ended November 30, 2021:

---

| | | | |
|:---|:---|:---|:---|
| | **Reported at November 30, 2021** | **Reclassification** | **Restated at<br> November 30, 2021**  |
| General and administration expenses | $(2345) | $- | $**(2345)** |
| Financial instrument related costs and other | 174 | (174) | **-** |
| Gain on derivative warrant liabilities |  | 208 | **208** |
| Foreign exchange gains | 18 |  | **18** |
| Interest and other expenses | (5) | (34) | **(39)** |
| **Net loss and comprehensive loss** | $(2158) | $- | $**(2158)** |

---

The reclassification in presentation resulted in the following impact on the Consolidated Statements Financial Position as at August 31, 2022:

---

| | | | |
|:---|:---|:---|:---|
| | **Reported at<br> August 31, 2022**  | **Reclassification** | **Restated at<br> August 31, 2022**  |
| Amounts receivable | $40 | $2500 | $**2540** |
| Other receivables | 2500 | (2500) | **-** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c)** **Basis of presentation and measurement** 

These interim condensed consolidated financial statements have been prepared on a going concern basis under the historical cost basis, except for certain financial assets and liabilities which are measured at fair value, as disclosed in Note 18. All amounts in these interim condensed consolidated financial statements are presented in U.S. dollars with all amounts rounded to the nearest thousand, except for share and per share data, or as otherwise noted. Reference herein of $ or USD is to US dollars and C$ or CAD is to Canadian dollars.

---

| |
|:---|
| **TRX Gold Corporation** |
| **Notes to the Interim Condensed Consolidated Financial Statements** |
| **For the three months ended November 30, 2022 and 2021**  |
| **(Unaudited)** |
| (Expressed in Thousands of US dollars, except for share and per share amounts) |

---

3. Significant accounting policies

The accounting policies applied in these interim condensed consolidated financial statements are consistent with those applied in the preparation of the Company's annual consolidated financial statements for the year ended August 31, 2022.

4. Significant accounting judgments, estimates and assumptions

The preparation of consolidated financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the carrying amount of assets and liabilities and the reported amount of revenues and expenses. The following discusses the most significant accounting policy judgments and accounting estimates that the Company has made in the preparation of these interim condensed consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a)** **Production Start Date** 

Management assesses the stage of each mine development project to determine when a mine moves into the production stage. The criteria used to assess the start date of a mine are determined based on the unique nature of each mine development project. The Company considers various relevant criteria to assess when the mine is substantially complete, ready for its intended use and moves into the production phase. Some of the criteria include, but are not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· A significant level of capital expenditures compared to construction cost estimates are complete,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Ability to produce gold in saleable form within specifications has been achieved,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Reasonable period for testing has been completed, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Reasonable level of ongoing production based on mill throughput, recovery rates and mill availability.

On November 1, 2022, the Company declared commercial production for the 1,000+ tonnes per day ("tpd") processing plant at Buckreef after successful construction, commissioning and ramp-up of processing to a steady state throughput of 1,000+ tpd. The processing plant was running consistently at or above nameplate capacity since October 2022 with gold recoveries exceeding 90%. All major construction activities were completed and Buckreef demonstrated its ability to sustain ongoing production levels.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b)** **Units-of-Production** 

Management estimates recoverable proven and probable mineral reserves in determining the depreciation and amortization of certain mineral property, plant and equipment that is expected to be used for the duration of the mine life. This results in a depreciation charge proportional to the recovery of the anticipated ounces of gold. The life of the asset is assessed annually and considers its physical life limitations and present assessment of economically recoverable reserves of the mine property at which the asset is located. The calculations require the use of estimates and assumptions, including the amount of recoverable proven and probable mineral reserves. The Company's units of production calculations are based on recovered ounces of gold poured.

---

| |
|:---|
| **TRX Gold Corporation** |
| **Notes to the Interim Condensed Consolidated Financial Statements** |
| **For the three months ended November 30, 2022 and 2021**  |
| **(Unaudited)** |
| (Expressed in Thousands of US dollars, except for share and per share amounts) |

---

5. Amounts receivable

---

| | | |
|:---|:---|:---|
| | **November 30, 2022** | August 31, 2022 |
| Receivable from precious metal sales | $**1515** | $- |
| Sales tax receivable<sup>(1)</sup> | **5044** | 4359 |
| Prepaid gold purchase receivable (Note 9) | **-** | 2500 |
| Other | **41** | 40 |
|  | **6600** | 6899 |
| Less: Long-term portion | **(4976)** | (4359) |
| **Total amounts receivable** | $**1624** | $2540 |

---

(1) Sales tax receivables consist of harmonized services tax and value added tax ("VAT") due from
 Canadian and Tanzanian tax authorities, respectively. Tanzanian tax regulations allow for VAT receivable to be refunded or set-off against
 taxes due to the Tanzania Revenue Authority ("TRA"). VAT which still need to be verified by the TRA have been classified as long-term assets as the Company does not expect to recover these amounts within the next 12 months.

As at November 30, 2022 and August 31, 2022, no impairment has been recorded against these receivables and the Company held no collateral for any receivables.

6. Prepayments and other assets

---

| | | |
|:---|:---|:---|
| | **November 30, 2022** | August 31, 2022 |
| Prepaid expenses | $**713** | $699 |
| Commitment fees<sup>(1)</sup> | **507** | 507 |
| **Total prepayments and other assets** | $**1220** | $1206 |

---

(1) Consists of commitment fees paid with respect to a share purchase agreement whereby the Company, at its sole
 discretion, has the right to sell up to $10 million of its shares over a 36-month period.

7. Inventories

---

| | | |
|:---|:---|:---|
| | **November 30, 2022** | August 31, 2022 |
| Ore stockpile | $**1745** | $2643 |
| Gold in circuit | **1255** | 210 |
| Gold doré | **-** | 253 |
| **Total precious metals inventories** | **3000** | 3106 |
| Supplies | **831** | 524 |
| **Total inventories** | $**3831** | $3630 |

---

---

| |
|:---|
| **TRX Gold Corporation** |
| **Notes to the Interim Condensed Consolidated Financial Statements** |
| **For the three months ended November 30, 2022 and 2021**  |
| **(Unaudited)** |
| (Expressed in Thousands of US dollars, except for share and per share amounts) |

---

8. Mineral property, plant and equipment

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | <br>**Construction <br> in progress** | <br>**Mineral <br> properties** | <br>**Processing <br> plant and <br> related <br> infrastructure** | <br>**Machinery <br> and <br> equipment** | <br>**Other** | <br>**Total** |
| **Cost** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**As at August 31, 2022** | $**45239** | $**-** | $**7076** | $**1396** | $**143** | $**53854** |
| &nbsp;&nbsp;&nbsp;Additions |  | 822 | 2378 | 21 | 211 | 3432 |
| &nbsp;&nbsp;&nbsp;Transfers<sup>(1)</sup> | (45239) | 45239 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;**As at November 30, 2022** | $**-** | $**46061** | $**9454** | $**1417** | $**354** | $**57286** |
| **Accumulated depreciation** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**As at August 31, 2022** | $**-** | $**-** | $**1566** | $**619** | $**35** | $**2220** |
| &nbsp;&nbsp;&nbsp;Depreciation | - | 112 | 95 | 31 | 71 | 309 |
| &nbsp;&nbsp;&nbsp;**As at November 30, 2022** | $**-** | $**112** | $**1661** | $**650** | $**106** | $**2529** |
| **Net book value** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;As at August 31, 2022 | $45239 | $- | $5510 | $777 | $108 | $51634 |
| &nbsp;&nbsp;&nbsp;**As at November 30, 2022** | $**-** | $**45949** | $**7793** | $**767** | $**248** | $**54757** |

---

(1) On November 1, 2022, Buckreef achieved commercial production at which point development expenditures were
 subject to depreciation.

9. Deferred revenue

On August 11, 2022, the Company entered into a $5 million prepaid Gold Doré Purchase Agreement ("Agreement") with OCIM Metals and Mining S.A. ("OCIM"). The Agreement requires funds to be made available to the Company in two tranches. The Company drew down the first tranche of $2.5 million in exchange for delivering 434 ounces of gold per quarter, commencing February 2023, for a total of 1,735 ounces of gold over four quarters.

The Agreement has been accounted for as a contract in accordance with IFRS 15, *Revenue from Contracts with Customers*. As the total amount paid up-front by OCIM for the future deliveries of gold differs from the stand-alone selling price of the gold, the Company concluded the Agreement contains a significant financing component ("SFC"). Gold deliveries due in connection with the up-front payment are recorded in revenue based on the gold spot price originally established at the time of each advance, being the estimated stand-alone selling price of gold deliveries as determined at inception (after separating the SFC). The outstanding deferred revenue liability will accrue interest reflecting the cost of financing.

---

| | |
|:---|:---|
| | **Amount** |
| **As at August 31, 2022** | $**2485** |
| &nbsp;&nbsp;&nbsp;Accretion of deferred revenue | 127 |
| &nbsp;&nbsp;&nbsp;Transaction costs expensed | 15 |
| **As at November 30, 2022** | $**2627** |

---

---

| |
|:---|
| **TRX Gold Corporation** |
| **Notes to the Interim Condensed Consolidated Financial Statements** |
| **For the three months ended November 30, 2022 and 2021**  |
| **(Unaudited)** |
| (Expressed in Thousands of US dollars, except for share and per share amounts) |

---

10. Derivative warrant liabilities

---

| | |
|:---|:---|
| | **Amount** |
| **As at August 31, 2022** | $**6849** |
| &nbsp;&nbsp;Change in fair value | (3365) |
| **As at November 30, 2022** | $**3484** |

---

Derivative warrant liabilities of $3.5 million will only be settled by issuing equity of the Company.

Fair values of derivative warrant liabilities were calculated using the Black-Scholes option pricing model with the following assumptions:

---

| | | |
|:---|:---|:---|
| | **November 30, 2022** | August 31, 2022 |
| Share price | $**0.34** | $0.48 |
| Risk-free interest rate | **3.91% - 4.66%** | 3.32% - 3.44% |
| Dividend yield | **0%** | 0% |
| Expected volatility | **55% - 57%** | 55% - 60% |
| Remaining term (in years) | **0.7 – 4.2** | 0.9 – 4.4 |

---

The fair value is classified as level 3 as the expected volatility is determined using adjusted historical volatilities and were therefore not an observable input.

*<u>Sensitivity analysis</u>*

If expected volatility, the significant unobservable input, had been higher or lower by 10% and all other variables were held constant, net income and net assets for the three months ended November 30, 2022 would increase or decrease by:

---

| | | |
|:---|:---|:---|
| | **November 30, 2022** | **November 30, 2022** |
| <br>**10% change in expected volatility** | **Increase** | **Decrease** |
| (Loss) income | $**(467)** | $**468** |

---

11. Earnings (loss) per share

---

| | | |
|:---|:---|:---|
|  | **Three months ended November 30,** | **Three months ended November 30,** |
| | **2022** | 2021 |
| Net income (loss) attributable to shareholders | $**3512** | $(2022) |
| Weighted average number of common shares for purposes of basic EPS | **276477860** | 254983579 |
| Effect of dilutive stock options and warrants | **1221178** | - |
| Weighted average number of common shares for purposes of diluted EPS | **277699038** | 254983579 |

---

The determination of weighted average number of common shares for the purpose of diluted EPS excluded 7.4 million share options and 42.0 million warrants that were anti-dilutive for the period (2021: 7.4 million share options and 23.4 million share warrants).

12. Share-based payments reserve

Share-based compensation expense for the three months ended November 30, 2022 totaled $0.8 million (November 30, 2021: $1.0 million).

As at November 30, 2022, the Company had 2,910,925 (August 31, 2022 - 2,106,675) share awards available for issuance under the Omnibus Equity Incentive Plan.

---

| |
|:---|
| **TRX Gold Corporation** |
| **Notes to the Interim Condensed Consolidated Financial Statements** |
| **For the three months ended November 30, 2022 and 2021**  |
| **(Unaudited)** |
| (Expressed in Thousands of US dollars, except for share and per share amounts) |

---

**a)** **Stock options** 

***Canadian Dollars denominated stock options***

---

| | | |
|:---|:---|:---|
| | **Number of <br> stock options** | **Weighted average <br> exercise price <br> per share** |
| **Balance – November 30, 2022 and August 31, 2022** | **5336000** | **CAD $0.41** |

---

Options to purchase common shares carry exercise prices and terms to maturity as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Number of options** | **Number of options** | | |
| <br>**Exercise price** | **Outstanding** | **Exercisable** | <br>**Expiry**<br>**Date** | **Remaining**<br>**contractual**<br>**life (years)** |
| C$0.40 | 2454000 | 2454000 | October 11, 2026 | 3.9 |
| C$0.43 | 2782000 | 2782000 | September 29, 2026 | 3.8 |
| C$0.35 | 100000 | 100000 | January 2, 2027 | 4.1 |
| **C$0.41<sup>(1)</sup>** | **5336000** | **5336000** |  | **3.9** **<sup>(1)</sup>** |

---

<sup>(1)</sup> Total represents weighted average.

***US Dollars denominated stock options***

---

| | | |
|:---|:---|:---|
| | **Number of <br> stock options** | **Weighted average <br> exercise price <br> per share** |
| **Balance – November 30, 2022 and August 31, 2022** | **7375000** | **$0.50** |

---

 

Options to purchase common shares carry exercise prices and terms to maturity as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Number of options** | **Number of options** | | |
| ****<br>**Exercise price**<br>**Outstanding $** | **Outstanding** | **Exercisable** | <br>**Expiry**<br>**Date** |<br>**Remaining**<br>**contractual**<br>**life (years)** |
| USD $0.50 | 7375000 | 1475000 | August 17, 2027 | 4.7 |

---

Share-based payment expenses related to stock options amounted to $0.1 million for the three-month period ended November 30, 2022 (November 30, 2021 - nil).

**b)** **Restricted Share Units ("RSUs"):** 

The following table sets out activity with respect to outstanding RSUs:

---

| | |
|:---|:---|
| | **Number of <br> RSUs** |
| **Balance – August 31, 2022** | **1855276** |
| Vested | (600000) |
| Forfeited | (160000) |
| **Balance – November 30, 2022** | **1095276** |

---

Share-based payment expenses related to RSUs amounted to $0.2 million for the three-month period ended November 30, 2022 (November 30, 2021 - nil).

---

| |
|:---|
| **TRX Gold Corporation** |
| **Notes to the Interim Condensed Consolidated Financial Statements** |
| **For the three months ended November 30, 2022 and 2021**  |
| **(Unaudited)** |
| (Expressed in Thousands of US dollars, except for share and per share amounts) |

---

13. Warrants reserve

---

| | | |
|:---|:---|:---|
| | **Number of <br> warrants** | **Weighted average <br> exercise price <br> per share** |
| **Balance – November 30, 2022 and August 31, 2022** | **41970074** | **0.72** |

---

As at November 30, 2022, the following warrants were outstanding:

---

| | | | |
|:---|:---|:---|:---|
|  | **Number of**<br> **Warrants** | **Exercise <br> price** | <br> **Expiry date** |
| Convertible debenture warrants - July 27, 2020 | 3002037 | $1.21 | July 27, 2023 |
| Private placement financing warrants - December 23, 2020 | 2777268 | $1.50 | December 23, 2023 |
| Private placement financing warrants - February 11, 2021 | 16461539 | $0.80 | February 11, 2026 |
| Private placement financing broker warrants - February 11, 2021 | 1152307 | $0.80 | February 11, 2026 |
| Private placement financing warrants – January 26, 2022 | 17948718 | $0.44 | January 26, 2027 |
| Private placement financing placement agent warrants – January 26, 2022 | 628205 | $0.44 | January 26, 2027 |
| **Balance - November 30, 2022** | **41970074** |  |  |

---

The outstanding warrants have a weighted average exercise price of $0.72 and weighted average remaining contractual life of 3.3 years.

14. Non-controlling interest

Summarized financial information for Buckreef is disclosed below:

---

| | | |
|:---|:---|:---|
|  | **Three months ended November 30,** | **Three months ended November 30,** |
| **Income Statement** | **2022** | 2021 |
| Revenue | $**9718** | $- |
| Comprehensive earnings (loss) for the period | **3662** | (301) |

---

---

| | | |
|:---|:---|:---|
| **Statement of Financial Position** | **November 30, 2022** | August 31, 2022 |
| Current assets | $**8283** | $7253 |
| Non-current assets | **57430** | 53789 |
| Current liabilities | **(8448)** | (8602) |
| Non-current liabilities | **(3995)** | (2815) |
| Advances from parent, net | **(37709)** | (37725) |

---

---

| |
|:---|
| **TRX Gold Corporation** |
| **Notes to the Interim Condensed Consolidated Financial Statements** |
| **For the three months ended November 30, 2022 and 2021**  |
| **(Unaudited)** |
| (Expressed in Thousands of US dollars, except for share and per share amounts) |

---

15. Related party transactions

Related parties include the Board of Directors and officers, extended relatives and enterprises that are controlled by these individuals as well as certain consultants performing similar functions.

Remuneration of Directors and key management personnel of the Company was as follows:

---

| | | |
|:---|:---|:---|
|  | **Three months ended November 30,** | **Three months ended November 30,** |
| **Directors and key management personnel** | **2022** | 2021 |
| Remuneration <sup>(1)</sup> | $**459** | $399 |
| Share-based compensation expense | **714** | 980 |
| **Total directors and key management personnel** | $**1173** | $1379 |

---

<sup>(1)</sup> Remuneration includes salaries and benefits for certain key management personnel and director fees. Certain members of the board of directors have employment or service contracts with the Company. Directors are entitled to director fees and share based payments for their services and officers are entitled to cash remuneration and share based payments for their employment services.

As at November 30, 2022, included in amounts payable is $0.2 million of board fees (August 31, 2022 - $0.2 million) due to related parties with no specific terms of repayment.

During the three-month period ended November 30, 2022, $0.1 million for the stock options granted to key management personnel was expensed (November 30, 2021 - nil) and $0.2 million for RSUs granted to directors was expensed (November 30, 2021 - nil).

During the year ended August 31, 2021, the Company granted common shares upon hiring key management personnel in the aggregate of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) 1.56 million common shares having a fair market value of $1.1 million on the respective start dates of the
 key Management (December 1, 2020 to May 18, 2021).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Common shares on the first, second and third anniversary dates of the greater of up to 2.02 million, 3.55
 million and 2.82 million common shares; or common shares having a fair market value of to $1.4 million, $2.5 million and $2.0 million
 provided that 80% of such issuance shall be guaranteed and 20% shall be subject to certain financial milestones to be determined by the
 Board of Directors respectively.

The common shares had a value of $7.0 million at grant date that is amortized over the service period.

During the three-month period ended November 30, 2022, $0.8 million related to common shares granted to key management personnel was expensed (November 30, 2021 - $1.0 million).

---

| |
|:---|
| **TRX Gold Corporation** |
| **Notes to the Interim Condensed Consolidated Financial Statements** |
| **For the three months ended November 30, 2022 and 2021**  |
| **(Unaudited)** |
| (Expressed in Thousands of US dollars, except for share and per share amounts) |

---

16. General and administrative expenses

---

| | | |
|:---|:---|:---|
|  | **Three months ended November 30,** | **Three months ended November 30,** |
| | **2022** | 2021 |
| Directors' fees (Note 15) | $**107** | $73 |
| Insurance | **99** | 122 |
| Office and general | **19** | 108 |
| Shareholder information | **128** | 113 |
| Professional fees | **101** | 152 |
| Salaries and benefits<sup>(1)</sup> (Note 15) | **484** | 628 |
| Consulting | **51** | 45 |
| Share-based compensation expense<sup>(1)</sup> (Note 15) | **753** | 980 |
| Travel and accommodation | **47** | 43 |
| Depreciation<sup>(1)</sup> | **40** | 81 |
| Other | **8** | - |
| **Total general and administrative expenses** | $**1837** | $2345 |

---

<sup>(1)</sup> As a result of adoption to amendments to IAS 16, *Property, Plant and Equipment,* during the year ended August 31, 2022, certain costs incurred related to Buckreef's operating costs, post adoption, were recorded in cost of sales.

17. Income tax

Income tax expense is recognized based on management's estimate of the weighted average annual income tax rate expected for the full financial year. The maximum amount of tax losses that a business can utilize in Tanzania is 70% of its taxable profit for the current year. The remaining 30% of taxable profit is subject to a statutory tax rate of 30%. As a result, Buckreef's current income tax is calculated at an effective tax rate of 9% until Buckreef's tax loss carryforwards are fully utilized. Tax losses in Tanzania can only be utilized by the entity to which the tax losses relate to.

The carrying value of Buckreef's Mineral Property, Plant and Equipment is higher than their tax written down values due to historical mining incentives in Tanzania and accelerated depreciation for tax purposes. The taxable temporary difference between the carrying value of Mineral Property, Plant and Equipment and its tax basis in excess of available tax loss carryforwards resulted in a deferred tax liability.

For the three months ended November 30, 2022, the Company recorded income tax expense of $1.5 million, comprised of current income tax expense of $0.4 million and deferred income tax expense of $1.1 million (November 30, 2021 - nil).

18. Financial instruments

**Fair value of financial instruments**

Cash and derivative warrant liabilities are classified as measured at fair value through profit and loss. Amounts receivable and amounts payable are classified as measured at amortized cost. The carrying value of the Company's cash, amounts receivable, amounts payable approximate their fair value due to the relatively short-term nature of these instruments.

Fair value estimates are made at a specific point in time based on relevant market information and information about financial instruments. These estimates are subject to and involve uncertainties and matters of significant judgment, and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

The Company classifies its financial instruments carried at fair value according to a three-level hierarchy that reflects the significance of the inputs used in making the fair value measurements. The three levels of fair value hierarchy, giving the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs, are as follows:

· Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities;

· Level 2 – Inputs other than quoted prices that are observable for assets and liabilities, either
 directly or indirectly; and

· Level 3 – Inputs for assets or liabilities that are not based on observable market data.

As at November 30, 2022 and August 31, 2022, cash was classified as Level 1 and derivative warrant liabilities (Note 10) were classified as Level 3 under the fair value hierarchy.

---

| |
|:---|
| **TRX Gold Corporation** |
| **Notes to the Interim Condensed Consolidated Financial Statements** |
| **For the three months ended November 30, 2022 and 2021**  |
| **(Unaudited)** |
| (Expressed in Thousands of US dollars, except for share and per share amounts) |

---

19. Segmented information

**Operating segments**

The Company's Chief Operating Decision Maker, its Chief Executive Officer, reviews the operating results, assesses the performance and makes capital allocation decisions of the Company viewed as a single operating segment engaged in mineral exploration and development in Tanzania. All amounts disclosed in the interim condensed consolidated financial statements represent this single reporting segment. The Company's corporate division only earns interest revenue that is considered incidental to the activities of the Company and does not meet the definition of an operating segment as defined in IFRS 8, *Operating Segments*.

**Geographic segments**

The Company is in the business of mineral exploration and production in Tanzania. Information regarding the Company's geographic locations are as follows:

---

| | | |
|:---|:---|:---|
| | **Three months ended November 30,** | **Three months ended November 30,** |
| ****<br>**Revenue** | **2022** | **2021** |
| Tanzania | $**9718** | $- |
| **Total revenue** | $**9718** | $- |

---

---

| | | |
|:---|:---|:---|
| **Non-current assets** | **November 30, 2022** | August 31, 2022 |
| Canada | $**65** | $- |
| Tanzania | **59668** | 55993 |
| **Total non-current assets** | $**59733** | $55993 |

---

20. Commitments and contingencies

***Commitments:***

 ****

In order to maintain its existing mining and exploration licenses, the Company is required to pay annual license fees totalling $24. As at November 30, 2022 and August 31, 2022, these licenses remained in good standing and the Company is up to date on its license payments.

***Contingencies:***

 ****

The Company is involved in litigation and disputes arising in the normal course of operations. Management is of the opinion that the outcome of any potential litigation will not have a material adverse impact on the Company's financial position or results of operations. Accordingly, no provisions for the settlement of outstanding litigation and potential claims have been accrued as at November 30, 2022 and August 31, 2022.

---

| |
|:---|
| **TRX Gold Corporation** |
| **Notes to the Interim Condensed Consolidated Financial Statements** |
| **For the three months ended November 30, 2022 and 2021**  |
| **(Unaudited)** |
| (Expressed in Thousands of US dollars, except for share and per share amounts) |

---

21. Non-cash items

---

| | | |
|:---|:---|:---|
|  | **Three months ended November 30,** | **Three months ended November 30,** |
| | **2022** | **2021** |
| Depreciation | $**233** | $81 |
| Gains on derivative warrant liabilities (Note 10) | **(3365)** | (208) |
| Share-based compensation expense (Note 12) | **809** | 980 |
| Accretion of provision for reclamation | **35** | 34 |
| Deferred income tax expense (Note 17) | **1129** |  |
| Accretion of lease liabilities | **5** |  |
| Accretion of deferred revenue (Note 9) | **127** |  |
| Foreign exchange gains | **(4)** |  |
| Other expenses | **15** | - |
| **Total non-cash items** | $**(1016)** | $887 |

---

## Exhibit 99.2

**Exhibit 99.2**

**TRX GOLD CORPORATION**

**MANAGEMENT'S DISCUSSION AND ANALYSIS**

For the three-month period ended November 30, 2022

![](cover.jpg)

---

| | |
|:---|:---|
| ![](logo.jpg) | **Management's Discussion and Analysis**<br> **November 30, 2022**<br>|

---

The following Management's Discussion and Analysis ("MD&A") of the financial condition and results of operations for TRX Gold Corporation ("TRX Gold" or the "Company") should be read in conjunction with the Company's unaudited interim consolidated financial statements for the three months ended November 30, 2022, as well as the Company's audited consolidated financial statements included in the Company's Annual Report on Form 40-F and Annual Information Form for the year ended August 31, 2022. The financial statements and related notes of TRX Gold have been prepared in accordance with International Financial Reporting Standards ("IFRS"). Additional information, including our press releases, has been filed electronically on SEDAR and is available online under the Company's profile at www.sedar.com and on our website at www.TRXGold.com.

This MD&A reports our activities through January 12, 2023 unless otherwise indicated. References to the 1<sup>st</sup> quarter of 2023 or Q1 2023, and references to the 1<sup>st</sup> quarter of 2022 or Q1 2022 mean the three months ended November 30, 2022 and 2021, respectively. Unless otherwise noted, all references to currency in this MD&A refer to US dollars. Unless clearly otherwise referenced to a specific table, numbers referenced refer to numbered Endnotes on page 33.

Mr. Andrew Mark Cheatle, P.Geo., MBA, ARSM, is the Company's in-house Qualified Person under National Instrument 43-101 "Standards of Disclosure for Mineral Projects" ("NI 43-101") and has reviewed and approved the scientific and technical information in this MD&A. Mr. Cheatle is the Chief Operating Officer and a Director of TRX Gold and a Director of the Company's subsidiaries, including Buckreef Gold Company Limited ("Buckreef Gold") and TRX Gold Tanzania Limited ("TRX Gold Tanzania"). Therefore, he is not considered to be independent under NI 43-101. Mr. Cheatle has over 30 years of relevant industry experience, a Master of Business Administration (MBA) from Capella University, USA (2005), and an Honours Degree in Geology from the Royal School of Mines, Imperial College, London, UK (1985). He is a registered professional geoscientist with Professional Geoscientists of Ontario, Canada (Reg. No. 0166).

**Disclosure and Cautionary Statement Regarding Forward Looking Information**

This MD&A contains certain forward-looking statements and forward-looking information, including without limitation statements about TRX Gold's future business, operations and production capabilities. All statements, other than statements of historical fact, included herein are forward-looking statements and forward-looking information that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Although TRX Gold believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance. The actual achievements of TRX Gold or other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors. These risks, uncertainties and factors include general business, legal, economic, competitive, political, regulatory and social uncertainties; actual results of exploration activities and economic evaluations; fluctuations in currency exchange rates; changes in costs; future prices of gold and other minerals; mining method, production profile and mine plan; delays in exploration, development and construction activities; changes in government legislation and regulation; the ability to obtain financing on acceptable terms and in a timely manner or at all; contests over title to properties; employee relations and shortages of skilled personnel and contractors; and the speculative nature of, and the risks involved in, the exploration, development and mining business.

---

| | |
|:---|:---|
| ![](logo.jpg) | **Management's Discussion and Analysis**<br> **November 30, 2022**<br>|

---

Certain information presented in this MD&A may constitute "forward-looking statements" and "forward looking information" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and under securities legislation applicable in Canada, respectively. Such forward-looking statements and information are based on numerous assumptions, and involve known and unknown risks, uncertainties, and other factors, including risks inherent in mineral exploration and development, which may cause the actual results, performance, or achievements of the Company to be materially different from any projected future results, performance, or achievements expressed or implied by such forward-looking statements and information. Investors are referred to our description of the risk factors affecting the Company, as contained in our U.S. Securities and Exchange Commission ("SEC") filings, including our Annual Report on Form 40-F and Report of Foreign Private Issuer on Form 6-K, and our Annual Information Form also posted on SEDAR, for more information concerning these risks, uncertainties, and other factors.

**TRX Gold Corporation**

TRX Gold is rapidly advancing the Buckreef Gold Project. Anchored by a Mineral Resource published in May 2020, the project currently hosts an NI 43-101 Measured and Indicated Mineral Resource of 35.88 million tonnes ("MT") at 1.77 grams per tonne ("g/t") gold containing 2,036,280 ounces ("oz") of gold and an Inferred Mineral Resource of 17.8 MT at 1.11g/t gold for 635,540 oz of gold. The leadership team is focused on creating both near-term and long-term shareholder value by increasing gold production to generate positive cash flow. The positive cash flow will be utilized for exploratory drilling with the goal of increasing the current gold Resource base and advancing the Sulphide Ore Project which represents 90% of current gold Resources. TRX Gold's actions are led by the highest environmental, social and corporate governance ("ESG") standards, evidenced by the relationships and programs that the Company has developed during its nearly two decades of presence in Geita Region, Tanzania. Please refer to the Company's Updated Mineral Resources Estimate for Buckreef Gold Project, dated May 15, 2020 and filed under the Company's profile on SEDAR and with the SEC on June 23, 2020 (the "Technical Report"), for more information.

---

| | |
|:---|:---|
| ![](logo.jpg) | **Management's Discussion and Analysis**<br> **November 30, 2022**<br>|

---

**First Quarter 2023 Highlights** 

Q1 2023 was a significant quarter for the Company as Buckreef Gold declared commercial production on the expanded 1,000+ tpd processing plant and began operating the expanded plant at full design capacity beginning in November 2022. During Q1 2023 the Company recorded its highest quarterly: (i) production, (ii) sales, (iii) gross profit, (iv) net income, (iv) operating cash flow, and (v) Adjusted EBITDA, at a low cash cost<sup>1</sup> of $732 per ounce of gold. During the quarter, the Company continued to use cash flow from operations to fund reinvestment in Buckreef Gold. The Company continued to advance its drilling campaign, including infill drilling, step-out drilling and grade control drilling and announced positive assay results from the metallurgical variability program on the Main Zone and step-out drilling program to the southwest. These positive results continue to demonstrate the immense opportunity at Buckreef Gold and reflect successful execution of the Company's sustainable business plan where cash flow from operations funds value creating activities - including exploration and growth.

Key highlights for Q1 2023 include:

&nbsp;&nbsp;&nbsp;&nbsp;· The Company achieved zero lost time injuries ("LTI") and had no confirmed COVID-19 cases at site;

&nbsp;&nbsp;&nbsp;&nbsp;· The Company achieved a significant safety milestone of 1.0 million operating hours with no LTI.

&nbsp;&nbsp;&nbsp;&nbsp;· In September 2022, Buckreef Gold announced successful commissioning of the expanded 1,000+ tpd processing
 plant, which was completed on time and on budget (capital cost of $4.0 million). The plant ramped up throughput and reached nameplate
 capacity of 1,000+ tpd at the end of October 2022. Commercial production of the 1,000+ processing plant was declared effective November
 2022.

&nbsp;&nbsp;&nbsp;&nbsp;· Poured 5,395 ounces of gold in Q1 2023, a new quarterly production record at Buckreef Gold. Sold 5,754 ounces
 of gold in Q1 2023, a new quarterly sales record resulting in positive operating cash flow for the Company of $6.6 million.

&nbsp;&nbsp;&nbsp;&nbsp;· Recognized revenue of $9.7 million in Q1 2023, cost of sales of $4.4 million, and cash costs<sup>1</sup> of
 $732 per ounce of gold, generating gross profit of $5.3 million, gross profit margin of 55% and Adjusted EBITDA<sup>1</sup>of $4.4 million.

&nbsp;&nbsp;&nbsp;&nbsp;· The Company completed over 4,665 meters of diamond drilling at Buckreef Gold including infill drilling, step-out
 drilling and grade control drilling.

&nbsp;&nbsp;&nbsp;&nbsp;· Subsequent to quarter end, the Company announced positive assay results from its 19-hole metallurgical variability
 sampling program on the Buckreef Gold Main Zone and assay results from the southwest Main Zone drilling.

---

| | |
|:---|:---|
| ![](logo.jpg) | **Management's Discussion and Analysis**<br> **November 30, 2022**<br>|

---

**2023 Outlook**

&nbsp;&nbsp;&nbsp;&nbsp;· Fiscal 2023 ("F2023") production and cost guidance ranges are unchanged from when they were originally estimated and released
 in November 2022.

&nbsp;&nbsp;&nbsp;&nbsp;· The Company continues to expect gold production from the 1,000+ tpd processing plant for F2023 to be between
 20,000 - 25,000 ounces at total average cash costs<sup>1</sup> of $750 - $850 per ounce.

&nbsp;&nbsp;&nbsp;&nbsp;· Mining, crushing, processing and gold production are all expected to operate at full capacity during F2023
 following initial ramp-up and commissioning of the 1,000+ tpd processing plant during Q1. Higher production is expected in the second
 half (H2) of the year as the processing plant achieved steady state operation at nameplate capacity of 1,000+ tpd at the end of October
 2022.

&nbsp;&nbsp;&nbsp;&nbsp;· Operating cash flow from the 1,000+ tpd processing plant will be reinvested in Buckreef Gold with a focus
 on value enhancing activities, including: (i) exploration and drilling with a focus on potential resource expansion at Buckreef Main (northeast
 and south), Buckreef West, Anfield, Eastern Porphyry extension, Bingwa and Tembo; (ii) additional capital programs focused on further
 plant expansions and production growth; and (iii) enhanced corporate social responsibility/ESG programs.

&nbsp;&nbsp;&nbsp;&nbsp;· The Company continues to advance a project the Company initiated aimed at increasing the average annual throughput
 by 75-100% through the addition of a new ball mill. Detailed engineering and procurement of equipment has commenced. Construction is expected
 to start in F2023 and potentially benefit production in late calendar H2 2023. Any incremental production as a result of this expansion
 has not been considered in the F2023 guidance above.

&nbsp;&nbsp;&nbsp;&nbsp;· The Company continues to expect exploration spending in F2023 to include diamond drill and reverse circulation
 drilling services provided by the State Mining Company of Tanzania ("STAMICO") for a program which includes; brownfields drilling
 at Buckreef Main Zone (NE and SW), Buckreef West, Eastern Porphyry, and greenfield drilling at Anfield. Sterilization drilling will commence
 at site expansion facilities, including tailings storage and waste rock facilities.

&nbsp;&nbsp;&nbsp;&nbsp;· The Sulphide Development Project, in which the 'sulphide ore' encompasses approximately 90% of
 the Buckreef Main Zone's Measured and Indicated Mineral Resources, is a key mid-to-long term value driver. Unlocking this value
 is an important business objective for the Company. The Sulphide Development Project will evaluate the options for a high return large
 scale project. It is the goal of the Company to exceed the metrics outlined in the 2018 Technical Report, including annual production,
 strip ratios and key financial metrics. The Company continues to work with our principal consultants on advancing the Sulphide Development
 Project, including advanced metallurgical testing across the deposit and geotechnical studies for a deeper pit. The Company has started
 assessing a significantly larger sulphide ore processing facility.

---

| | |
|:---|:---|
| ![](logo.jpg) | **Management's Discussion and Analysis**<br> **November 30, 2022**<br>|

---

**First Quarter 2023 Operational and Financial Details**

*<u>Mining and Processing</u>*

&nbsp;&nbsp;&nbsp;&nbsp;· Buckreef Gold reported zero LTI and had no confirmed COVID-19 related cases at site during the three months
 ended November 30, 2022. For the three months ended November 30, 2022, including contractors, Buckreef Gold recorded a safety incident
 frequency rate of 0 (per million hours). The Company's two main contractors, FEMA Mining and STAMICO Drilling, also recorded a safety
 incident frequency rate of 0 (per million hours). Also, in Q1 2023, the Company achieved a significant safety milestone of 1.0 million
 operating hours with no LTI.

&nbsp;&nbsp;&nbsp;&nbsp;· In September 2022, Buckreef Gold announced that the 1,000+ tpd oxide mill circuit
 was commissioned and was ramping up production from its initial 360 tpd capacity. The expanded processing plant construction was completed
 in line with the scheduled completion date of calendar Q3 2022 at a capital cost of $4 million, also within guidance. First ore was introduced
 to the expanded processing plant in September 2022 and site ramped up throughput, rapidly reaching nameplate capacity of 1,000+ tpd at
 the end of October 2022. Commercial production of the 1,000+ processing plant was declared in November 2022.

&nbsp;&nbsp;&nbsp;&nbsp;· During Q1 2023, Buckreef Gold poured 5,395 ounces of gold and sold 5,754 ounces of gold, both quarterly records
 for the Company. The 49% increase in gold production in Q1 2023 compared to Q4 2022 is mainly attributable to an increase in ore tonnes
 milled following commissioning of the expanded 1,000+ tpd processing plant in Q1 2023.

&nbsp;&nbsp;&nbsp;&nbsp;· The 1,000+ tpd processing plant achieved the following in Q1 2023: (i) average
 throughput of 847 tpd; (ii) plant availability of 95%; and (iii) average recovery rate of 91%.

&nbsp;&nbsp;&nbsp;&nbsp;· Total ore mined of 68 thousand tonnes ("kt") in Q1 2023 was consistent with Q4 2022. Total waste
 mined of 438 kt were 147 kt above Q4 2022 contributing to a strip ratio of 6.5 (waste:ore tonnes) and a total of 506 kt of material mined.
 During Q1 2023 the Company expedited waste stripping to access a greater extent of ore, including higher grade blocks.

&nbsp;&nbsp;&nbsp;&nbsp;· As at November 30 2022, the run-of-mine ("ROM") pad contained 103,140 tonnes at an average grade
 of 1.21 g/t with an estimated 4,006 ounces of gold. A further stockpile of crushed mill feed of 5,309 tonnes at 2.45 g/t containing an
 estimated 418 ounces of gold has been accumulated between the crusher and mill. During Q1 2023, the Company processed stockpiled and mined
 material to commission the expanded 1,000+ tpd processing plant (which includes 7 new large carbon-in-leach ("CIL") tanks)
 and consequently reported an increase of gold in circuit, reflecting a buildup of metal inventory in the CIL tanks during plant commissioning.
 The net result being a substantial increase of gold in circuit from 230 ounces at August 31, 2022 to 1,751 ounces at November 30, 2022.
 The stockpile balance provides support for the Company to meet its production guidance in the upcoming quarters.

&nbsp;&nbsp;&nbsp;&nbsp;· Tailings storage facilities ("TSF") (TSF 2, pond 1 and pond 2) have significantly advanced and
 are on track to provide an additional two years of storage. Concurrently, the Company has identified two local sites for a long-term tailings
 storage solution. Engineering design will commence in Q2 2023.

---

| | |
|:---|:---|
| ![](logo.jpg) | **Management's Discussion and Analysis**<br> **November 30, 2022**<br>|

---

 

*<u>Exploration</u>*

&nbsp;&nbsp;&nbsp;&nbsp;· In Q1 2023, the Company drilled 21 holes representing 4,665 meters at Buckreef Gold including infill drilling
 at Buckreef Main and exploration drilling at Anfield and Eastern Porphyry. Assay results from the latter two programs are pending.

&nbsp;&nbsp;&nbsp;&nbsp;· The Company has also drilled to the southwest ("SW") of the Main Zone, beyond and under the historical
 South Pit (24 drill holes representing 4,255 meters). Assay results from both wide spaced drill programs are encouraging with wide zones
 of mineralization encountered in some holes that are comparable to present mining areas. Importantly, the deposit now remains open on
 strike to the southwest, northeast and at depth, and since drilling recommenced in 2021, an additional 500 meters of gold mineralization
 (along strike and representing approximately 30% increase in deposit strike length) have been identified. The identification of the additional
 500 meters of strike length to the deposit provides future opportunity for the Company to potentially add additional mineral resources
 to inventory.

&nbsp;&nbsp;&nbsp;&nbsp;· The Company received significant assay results for the metallurgical testing program, the results of which
 demonstrate: (i) continuity of mineralization down dip and along strike of the deposit; and (ii) excellent width and grade of mineralization.
 As part of the upcoming metallurgical variability study, using core from this program, the Company will assess the amenability of the
 sulphide material to be processed through the existing processing plant, using its relatively simple flowsheet. In turn, this may have
 positive implications for potential plant expansions.

*<u>Sulphide Development Project</u>*

&nbsp;&nbsp;&nbsp;&nbsp;· Buckreef Gold has commenced the long-lead items for de-risking the Sulphide Development Project, including:
 (i) geotechnical characterization to determine the ultimate pit slopes of the 2 kilometre long open pit. This work commenced in Q2 2022
 with consultants SGS Canada Inc ("SGSC") and Terrane Geoscience Inc; and (ii) the variability metallurgical study for the
 first 5-7 years of potential production of the Sulphide Development Project. To date a total of 19 metallurgical holes (2,367 meters)
 have been completed along the entire strike of the Buckreef Main deposit. These holes have now been prepared for shipment for metallurgical
 testing at the successful bidding laboratory.

&nbsp;&nbsp;&nbsp;&nbsp;· The Company, in conjunction with Ausenco, has identified potential locations for the sulphide ore processing
 plant, dry stack tailings facility, waste rock piles and other associated infrastructure. All locations are subject to successful 'condemnation
 drilling', which will commence in fiscal Q2 2022.

&nbsp;&nbsp;&nbsp;&nbsp;· The exploration drilling program will also focus on infill and expansion drilling at Eastern Porphyry, Buckreef
 West, inferred mineral resources and strike extensions, both to the northeast and southwest of the Main Zone - which if successful, has
 the potential to increase tonnes to the indicated mineral resource category.

*<u>Environmental, Social and Corporate Governance</u>*

&nbsp;&nbsp;&nbsp;&nbsp;· The Company is committed to working to high ESG standards and is implementing several community programs,
 while continuing to develop a broader framework and policies. There were no reportable environmental or community related incidents during
 the quarter ended November 30, 2022. Buckreef Gold continued to develop its ESG program during the quarter, successfully partnering with
 the Geita District and District Commissioners on school, water and health projects.

&nbsp;&nbsp;&nbsp;&nbsp;· Buckreef Gold worked with the Geita District Council and local wards to collaboratively identify key programs
 that focus on short to long term educational needs, which in turn is aligned with Buckreef Gold's local hiring practices and includes
 Science, Technology, Engineering and Mathematics (STEM) and gender goals.

---

| | |
|:---|:---|
| ![](logo.jpg) | **Management's Discussion and Analysis**<br> **November 30, 2022**<br>|

---

&nbsp;&nbsp;&nbsp;&nbsp;· A Memorandum of Understanding was signed in Q2 2022 between Buckreef and Geita District Council to provide
 support around education in the wards of Lwamgasa, Kaseme, Busanda and Bugulula, being the host wards for the mine site. A total of 420
 million Tanzania Shillings (approximately $180,000) is budgeted by Buckreef for 2023, commencing July 2022 – June 2023, to support
 priority areas in agreement with the District Council.

&nbsp;&nbsp;&nbsp;&nbsp;· Buckreef Gold's operations: (i) are connected to the Tanzanian national electricity grid and utilize
 grid power which is significantly and increasingly sourced from hydroelectric facilities in Tanzania; (ii) recycle all water used in its
 operations; (iii) do not discharge water from its operations; (iv) employ a workforce that comprises 100% Tanzanian citizens (110 full-time
 employees, 249 contract miners and project contractors); (v) include development and building activities that are focused on maximizing
 local content; and (vi) exhibit a '100 mile diet' by procuring all food locally. In addition, the Company's sulphide
 development operations are expected to utilize dry stack tailings.

&nbsp;&nbsp;&nbsp;&nbsp;· The Company supports local procurement in its activities by first sourcing within the immediate wards, then
 out to district, region and nation. Only those items or services not available in Tanzania are purchased externally, first prioritizing
 East Africa, Africa, then globally.

&nbsp;&nbsp;&nbsp;&nbsp;· The Company will continue to develop a broader ESG program, including reporting aligned with definitions from
 the World Economic Forum (WEF), and identifying its contributions to the United Nations Sustainable Development Goads (SDGs) over the
 course of F2023.

*<u>Financial</u>*

&nbsp;&nbsp;&nbsp;&nbsp;· Gold ounces poured during Q1 2023 were 5,395 ounces – a quarterly production record for Buckreef Gold.
 Gold ounces sold were 5,754 ounces at an average realized price<sup>1</sup> of $1,689 per ounce.

&nbsp;&nbsp;&nbsp;&nbsp;· Following record production and sales during Q1 2023, the Company recognized revenue of $9.7 million, cost
 of sales of $4.4 million and cash costs<sup>1</sup>of $732 per ounce, generating gross profit of $5.3 million (55% gross profit margin),
 quarterly net income of $5.2 million, operating cash flow of $6.6 million and Adjusted EBITDA<sup>1</sup> of $4.4 million.

&nbsp;&nbsp;&nbsp;&nbsp;· As at November 30, 2022, the Company had cash of $8.9 million and working capital of $4.8 million after adjusting
 for derivative liabilities which will only be settled by issuing equity of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;· As the Company advances and the production profile expands, management continually evaluates its liquidity
 requirements and available sources of financing including but not limited to: (i) cash flow from operations; (ii) corporate debt; (iii)
 project specific debt; (iv) off-take financing; and (v) equity financing. The Company will be prudent in how it capitalizes the Company
 over the short, medium and long-term with shareholder value being an overarching consideration.

&nbsp;&nbsp;&nbsp;&nbsp;· During Q4 2022, the Company announced that its operating subsidiary, Buckreef Gold Corporation Limited, entered
 into a pre-paid gold purchase agreement with a contract price totaling US$5 million with OCIM Metals & Mining SA ("OCIM").
 The total contract price can be made available to Buckreef Gold in tranches with a $2.5 million upfront tranche and further tranches to
 be drawn over the next 18 months at Buckreef Gold's option. During Q1 2023, the Company drew down the first tranche of $2.5 million
 in exchange for delivering 434 ounces of gold per quarter, commencing February 2023, for a total of 1,735 ounces of gold over four quarters.

*<u>Other</u>*

&nbsp;&nbsp;&nbsp;&nbsp;· The Company, along with land management consultants at Property Matrix, finalized 'addendum payments'
 for the remaining land compensation claims. 'Addendum payments' are characterized as those claims made as part of the locally
 defined process and were made after the successful completion of 98% of claims by Project Affected Persons. The final 'addendum'
 amounts will be paid in fiscal Q2 2023. In total, approximately $2.7 million have been distributed to local land and property owners.

---

| | |
|:---|:---|
| ![](logo.jpg) | **Management's Discussion and Analysis**<br> **November 30, 2022**<br>|

---

**Operational Overview**

**The Buckreef Gold Project**

The Company is focused on the Buckreef Gold Project located in the Geita District of the Geita Region south of Lake Victoria, approximately 110 km southwest of the City of Mwanza, Tanzania (Figure 1). The Buckreef Gold Project area can be accessed by ferry across Smiths Sound, via a paved national road and, thereafter, via well maintained unpaved regional roads. The Buckreef Gold Project comprises five prospects, namely Buckreef, Bingwa, Tembo, Eastern Porphyry and Anfield. The Buckreef Gold Project itself encompasses three main mineralized zones: Buckreef South, Buckreef Main and Buckreef North. The Buckreef Gold Project is fully licensed for mining and the extraction of gold.

The Buckreef Gold Project Mineral Resources as of May 15, 2020, are as follows:

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Measured** | **Measured** | **Measured** | **Indicated** | **Indicated** | **Indicated** | **Inferred** | **Inferred** | **Inferred** | **Total (Measured + Indicated)** | **Total (Measured + Indicated)** | **Total (Measured + Indicated)** |
| <br>**Area** | **Tonnes**<br>**MT** | **Grade**<br>**g/t** | **Au**<br>**Oz** | **Tonnes**<br>**MT** | **Grade**<br>**g/t** | **Au**<br>**Oz** | **Tonnes**<br>**MT** | **Grade**<br>**g/t** | **Au**<br>**Oz** | **Tonnes**<br>**MT** | **Grade**<br>**g/t** | **Au**<br>**Oz** |
| Buckreef | 19.98 | 1.99 | 1281160 | 15.89 | 1.48 | 755120 | 17.82 | 1.11 | 635540 | 35.88 | 1.77 | 2036280 |
| Eastern Porphyry | 0.09 | 1.20 | 3366 | 1.02 | 1.17 | 38339 | 1.24 | 1.39 | 55380 | 1.10 | 1.18 | 41705 |
| Tembo | 0.02 | 0.99 | 531 | 0.19 | 1.77 | 10518 | 0.27 | 1.92 | 16461 | 0.20 | 1.70 | 11048 |
| Bingwa | 0.90 | 2.84 | 82145 | 0.49 | 1.48 | 23331 | 0.22 | 1.49 | 10541 | 1.39 | 2.36 | 105477 |
| Total | 20.99 | 2.03 | 1367202 | 17.59 | 1.46 | 827308 | 19.55 | 1.14 | 717922 | 38.57 | 1.77 | 2194510 |

---

Note: Main Zone at 0.4 g/t cut-off, and Eastern Porphyry, Bingwa and Tembo at 0.5 g/t cut-off

Mineral Resources inclusive of Mineral Reserves

Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability

All resources below 540 mRL are classified as inferred

Estimates over variable widths of 2 to 40 meters

Bulk Density ranges 2.0 g/cm<sup>3</sup> to 2.8 g/cm<sup>3</sup>

55% attributable to the Company

Effective Date: May 15, 2020

Mineral Reserves remained as of the May 15, 2020 Technical Report and are tabulated below.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | | **In Situ Gold Content** | **In Situ Gold Content** |
| <br>**Buckreef Reserves** | **Tonnes**<br>**(Mt)** | **Grade**<br>**Au (g/t)** | **Kg** | **oz** |
| Proven-Stockpile | 119726 | 1.86 | 223 | 7160 |
| Proven | 9352183 | 1.72 | 16092 | 517358 |
| Probable | 9730764 | 1.36 | 13265 | 426492 |
| Mineral Reserves | 19202673 | 1.54 | 29580 | 951010 |

---

1) Mineral Reserves is inclusive of Mineral Reserve shapes, mining recovery, mining dilution and open pit preproduction development costs. Mineral Reserve estimate includes dilution.

2) Mineral Reserve was estimated using NI 43-101F compliant Standards on Mineral Resources and Reserves, Definitions.

3) Contained metal may differ due to rounding.

**Mineral Resource and Reserve Statements**

The Company did not conduct any new work that would warrant material changes in the previously reported Mineral Resource and Mineral Reserve statements during this reporting period.

---

| | |
|:---|:---|
| ![](logo.jpg) | **Management's Discussion and Analysis**<br> **November 30, 2022**<br>|

---

**Figure 1: Location of Buckreef Gold Project Licences on Lake Victoria Greenstone Belt**

![](figure_01.jpg)

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| | |
|:---|:---|
| ![](logo.jpg) | **Management's Discussion and Analysis**<br> **November 30, 2022**<br>|

---

**Processing Plant and Operations**

In September 2022 Buckreef Gold announced that the 1,000+ tpd oxide mill circuit was commissioned and was ramping up production from its original 360 tpd capacity. First ore was introduced to the expanded processing plant in September 2022 and the team ramped up throughput reaching nameplate capacity of 1,000+ tpd at the end of October 2022. Commercial production of the 1,000+ processing plant was declared in November 2022.

Select operating, financial and stockpile information from the expanded operation follows below:

**Select Operating and Financial Data**

---

| | | | |
|:---|:---|:---|:---|
| | **Unit** | **Three months ended<br> November 30, 2022**  | **Three months ended<br> November 30, 2021<sup>1</sup>**  |
| **Operating Data** |  |  |  |
| Ore Mined | k tonnes | 68 | 28 |
| Waste Mined | k tonnes | 438 | 88 |
| Total Mined | k tonnes | 506 | 116 |
| Strip Ratio | w:o | 6.5 | 3.1 |
| Mining Rate | tpd | 5557 | 1275 |
| Mining Cost (Variable) | US$/t | $3.17 | $2.84 |
| Plant Ore Milled | k tonnes | 77.1 | 8.4 |
| Head Grade | g/t | 3.06 | 2.71 |
| Plant Utilization | % | 95 | 81 |
| Plant Recovery Rate | % | 91 | 90 |
| Processing Cost (Fixed) | US$('000s) | $187 | $154 |
| Processing Cost (Variable) | US$/t | $18.51 | $17.56 |
| Plant Mill Throughput | tpd | 847 | 93 |
| Gold Ounces Poured | oz | 5395 | 589 |
| Gold Ounces Sold | oz | 5754 | 390 |
| **Financial Data<sup>2</sup>** |  |  |  |
| Revenue<sup>3</sup> | $('000s) | 9718 |  |
| Gross Profit | $('000s) | 5310 |  |
| Net income (loss) | $('000s) | 5160 | (2158) |
| Adjusted EBITDA<sup>4</sup> | $('000s) | 4412 | (1347) |
| Operating Cash Flow | $('000s) | 6648 | (2955) |
| Average Realized Price<sup>4</sup> | $/oz | 1689 |  |
| Cash Costs<sup>4</sup> | $/oz | 732 |  |

---

<sup>1</sup> Months Sept/Oct 2021 reflect 120 tpd test plant operations. November 2021 reflect operations from the newly commissioned 360 tpd processing plant.

<sup>2</sup> Note that the table above does not present comparative statistics for revenue, costs of good sold and related sales and cost metrics for the three month comparable period as Buckreef Gold early adopted the IAS 16 amendment as disclosed in the three and six months ended February 28, 2022 financial statements. Gold sales and related costs prior to that date were capitalized to exploration and evaluation assets and expenditures.

<sup>3</sup> Revenue includes immaterial amounts from the sale of by-product silver and copper.

<sup>4</sup> Refer to the "Non-IFRS Performance Measure" section.

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| | |
|:---|:---|
| ![](logo.jpg) | **Management's Discussion and Analysis**<br> **November 30, 2022**<br>|

---

**<u>Operations Discussion</u>**

**Gold Production and Sales**

During Q1 2023, Buckreef Gold poured 5,395 ounces of gold and sold 5,754 ounces of gold, both new quarterly records for the Company. Gold ounces produced and sold reflected an increase relative to the prior year comparative period mainly due to an increase in plant throughput following commissioning of the expanded 1,000+ tpd processing plant in Q1 2023. Figures 2 to 6 illustrate several of the accomplishments detailed in the Operations Discussion.

**Mining**

Total ore mined in Q1 2023 increased to 68 thousand tonnes (kt) from 28 kt in the comparative prior year period following successful ramp-up and commissioning of the 1,000+ tpd processing plant during Q1 2023. In Q1 2023 total waste mined was 438 kt contributing to a strip ratio of 6.5 (waste:ore tonnes) and a total of 506 kt of material mined. During Q1 2023 the Company expedited waste stripping to access a greater extent of ore, including higher grade blocks.

Mining costs per tonne (variable) primarily reflect contractor mining costs following the hiring of FEMA in Q1 2022 on a two-year contract to mine ore, waste and to construct the TSF at Buckreef Gold. Mining costs per tonne (variable) of $3.17 in Q1 2023 were lower as compared to Q4 2022 ($3.64) primarily due to the impact of higher tonnes mined on the fixed portion of the mining contractor management fee combined with a decrease in blasting activity during Q1 2023 as compared to Q4 2022, as Buckreef Gold had increased blasting in the prior year as the Company ramped up mining operations in preparation for 1,000+ tpd processing plant commissioning. Mining cost per tonne was higher than the prior year comparative period ($2.84) mainly due to the impact of higher fuel prices on higher tonnes mined as the Company continued to operate the 120 tpd test plant during the three months ended November 30, 2021.

**Processing**

The 1,000+ tpd processing plant was commissioned in September 2022 and reached nameplate capacity at the end of October 2022. In Q1 2023, the expanded processing plant achieved the following statistics: (i) average throughput of 847 tpd; (ii) plant availability of 95%; and (iii) an average recovery rate of 91% with consistent tailings grade, regardless of head grade.

For the three months ended November 30, 2022, processing costs per tonne (variable) of $18.51 were higher than Q4 2022 ($14.45) mainly due to an increase in power utilization, fuel consumption, reagents and consumables associated with the first-fill of the expanded 1,000+ tpd processing facility which was commissioned during Q1 2023. Processing cost per tonne was higher than the prior year comparative period ($17.56) also due to an increase in power, fuel, chemicals and reagents following expansion of the processing plant from 120 tpd to 360 tpd during Q1 2022 followed by a further expansion to 1,000+ tpd in Q1 2023.

---

| | |
|:---|:---|
| ![](logo.jpg) | **Management's Discussion and Analysis**<br> **November 30, 2022**<br>|

---

**Stockpile, Gold in Circuit (GIC) and Finished Goods Inventory**

As at November 30, 2022, Buckreef Gold reported the following stockpile statistics: (i) the ROM pad contained 103,140 tonnes at an average grade of 1.21 g/t with an estimated 4,006 ounces of gold; and (ii) crushed mill feed of 5,309 tonnes at 2.45 g/t containing an estimated 418 ounces of gold. During Q1 2023, the Company processed stockpiled and mined material to commission the expanded 1,000+ tpd processing plant (which includes 7 new large CIL tanks) and consequently reported an increase of gold in circuit, reflecting a buildup of metal inventory in the CIL tanks during plant commissioning. The net result being a substantial increase of gold in circuit from 230 ounces at August 31, 2022 to 1,751 ounces at November 30, 2022. The significant stockpile and GIC balance at November 30, 2022 provide support for the Company to meet its production guidance in the upcoming quarters.

A summary of the ROM pad and crushed ore stockpile statistics are contained in Table 1 below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| Table: RoM Stockpile Summary (as at 30 November 2022) | Table: RoM Stockpile Summary (as at 30 November 2022) | Table: RoM Stockpile Summary (as at 30 November 2022) | Table: RoM Stockpile Summary (as at 30 November 2022) | Table: RoM Stockpile Summary (as at 30 November 2022) |
| **Summary RoM Stockpile** | Volume (m<sup>3</sup>) | Tonnes | Grade (g/t Au) | Metal (oz) |
| High Grade | 1010 | 1492 | 3.42 | 164 |
| Medium Grade | 27352 | 48554 | 1.63 | 2539 |
| Low Grade | 31319 | 53094 | 0.76 | 1303 |
| Total (RoM) | 59681 | 103140 | 1.21 | 4006 |
| Crushed Ore (COS) | 3296 | 5309 | 2.45 | 418 |
| **Total** | **62977** | **108449** | **1.27** | **4425** |

---

---

| | |
|:---|:---|
| ![](logo.jpg) | **Management's Discussion and Analysis**<br> **November 30, 2022**<br>|

---

**Figure 2: Buckreef Gold Mine Oxide Mineral Reserve Starter Pit (Blasting Activity Q1 2023)** 

**Figure 3: 1,000 tpd Processing Plant at Buckreef Gold Mine, showing new CIL tanks and conveyor feed to the new ball mills (Q1 2023)**![](figure_03.jpg)

---

| | |
|:---|:---|
| ![](logo.jpg) | **Management's Discussion and Analysis**<br> **November 30, 2022**<br>|

---

**Figure 4: Buckeef Gold Expanded 1,000 tpd Processing Plant, showing installation of two new 360 tpd ball mills (Q1 2023)**![](figure_04.jpg)

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| | |
|:---|:---|
| ![](logo.jpg) | **Management's Discussion and Analysis**<br> **November 30, 2022**<br>|

---

**Figure 5: Buckreef Gold Exploration Drilling (Q1 2023)** 

**Figure 6: Buckreef Gold Drilling Contractors Making Survey Readings (Q1 2023)**

---

| | |
|:---|:---|
| ![](logo.jpg) | **Management's Discussion and Analysis**<br> **November 30, 2022**<br>|

---

**Exploration & Mineral Resources** 

TRX Gold and Buckreef Gold continue to evaluate the full potential of the Buckreef Gold property and identify opportunities for the discovery of additional mineral resources and their conversion to mineral reserves. Successful exploration will also provide greater production flexibility and growth. To achieve this goal the Company, in conjunction with Buckreef Gold, has:

&nbsp;&nbsp;&nbsp;&nbsp;· Re-evaluated the Buckreef Main Zone for strike extensions, off-shoot splays, and at depth potential. The deposit
 is open in all directions (See Figures 7 & 8). To date, the Company has tested the NE Extension and successfully identified gold mineralization
 over an additional 300 meters. The deposit remains open along strike to the northeast. The southwest extension has also been tested with
 wide spaced drilling and the exploration program has returned encouraging results. The deposit now remains open along strike to the southwest;

&nbsp;&nbsp;&nbsp;&nbsp;· Collectively, between the northeast extension and southwest drilling the known strike extent of the deposit
 has been expanded 500 meters, or by nearly 30% since exploration recommenced. The Company will now identify the areas offering the best
 opportunity to add gold ounces to the mineral resource inventory and commence an infill drilling program; and

&nbsp;&nbsp;&nbsp;&nbsp;· During the quarter the Company commenced drilling at Anfield and the Eastern Porphyry zones. Both zones represent
 compelling exploration targets to the Company. In 2021 the Company discovered the Anfield Zone, a set of parallel structures 200 - 500
 meters to the east of the Buckreef Main Zone and with evidence of an additional strike length of 3 km of shear zone targets (Figure 8).
 Furthermore, the Anfield trend aligns and is on strike with the Eastern Porphyry zone to the northeast and a neighboring small scale mine
 to the southwest.

**Buckreef Gold – Fiscal Q1 2023 Exploration to Date**

During the quarter the Company drilled over 4,665 meters at Buckreef Gold including exploration, infill drilling and step-out drilling.

**Buckreef Gold Main Zone Drilling Results and Interpretation**

The significant mineralized intercepts of the Buckreef Main Zone are as shown in the Figures 7 & 8. It is evident that the deposit remains open on trend to the northeast and southwest. As previously noted, the Company had initiated a drill program, specifically to explore potential mineralization extensions to the NE and SW and to upgrade shallow Inferred Mineral Resources.

During the quarter the Company received more assay results from its exploration program which has provided another extension of known mineralization on the Buckreef Gold Main Zone ("Main Zone") trend of approximately 200 meters to the southwest and deeper under the historical South. (These results are published in January 2023). The Company has drilled a total of 24 drill holes representing 4,255 meters in the southwest area, with full results provided in Table 2.

The results are positive and significant for the Company as they continue to demonstrate: (i) continuity of gold mineralization along strike to the southwest of the Main Zone deposit; and (ii) continued gold mineralization under the (historical) South Pit. The deposit, therefore, remains 'open at depth and on strike,' and in combination with the 300 m extension of the northeast (announced previously) represents approximately a 30% increase in the Main Zone deposit strike length to over 2.0 kms.

**Highlights include:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Hole BMDD250 intersected **34.80 m grading @ 1.26 g/t Au** from 87.2 m, including 10.0 m grading @ 3.08
 g/t from 89.9 m; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Hole BMDD275 intersected **16.5 m grading @ 2.01 g/t Au** from 53.7 m, including 7.0 m grading @ 3.28 g/t
 from 56.0 m.

Notes: Sample Protocol QA/QC – see endnotes. Sampled widths are not true widths.

---

| | |
|:---|:---|
| ![](logo.jpg) | **Management's Discussion and Analysis**<br> **November 30, 2022**<br>|

---

&nbsp;&nbsp;&nbsp;&nbsp;· **Extension of Buckreef Main Zone by a further 200 meters:** Expansion of the gold deposit mineralization
 by 300 meters in the northeast and 200 m in the southwest (increases in the strike length of the Buckreef Main Zone to over 2.0 kms) on
 the Buckreef Gold deposit which already contains over 2.0 million ounces of gold in the Measured and Indicated Mineral Resources in the
 Buckreef Main Zone. The Buckreef Main Zone continues to be open further to the NE and extending to the Buckreef Special Mining License
 boundary (see Figures 8 & 9) and to the southwest. In the latter the trend is aligned to several historical artisanal scale miner
 pits; and

&nbsp;&nbsp;&nbsp;&nbsp;· The Company continued exploration drilling at the Anfield Zone and extended the program to include the Eastern
 Porphyry Zone, This exploration program combined with the extension of the Buckreef Main Zone is expected to expand the scope and scale
 of the Buckreef Gold Project.

**Table 2: Buckreef Main Zone South Drill Hole Sample Results Summary**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Buckreef South Assay Results** | **Buckreef South Assay Results** | **Buckreef South Assay Results** | **Buckreef South Assay Results** | **Buckreef South Assay Results** | **Buckreef South Assay Results** | **Buckreef South Assay Results** | **Buckreef South Assay Results** | **Buckreef South Assay Results** | **Buckreef South Assay Results** | **Buckreef South Assay Results** | **Buckreef South Assay Results** |
| **Hole ID** | **Drill Holes Location** | **Drill Holes Location** | **Drill Holes Location** | **Drill Holes Location** | **Drill Holes Location** | **Sample Depth** | **Sample Depth** | **Width (m)** | **Assay Grade<br> (gpt)** | **Lithology** | **Comment** |
| **Hole ID** | **Easting (m)** | **Northing (m)** | **RL (m)** | **Azimuth** | **Dip** | **From (m)** | **To (m)** | **Width (m)** | **Assay Grade<br> (gpt)** | **Lithology** | **Comment** |
| **BMDD248** **DD** | 391071.5 | 9657427 | 1214.5 | 306 | -58 | 143 | 148 | 5 | 0.45 | Msz | Shear zone with Mild alteration |
|  |  |  |  |  |  | 192.5 | 198 | 5.5 | 0.38 | Msz | Shear zone with mild alteration |
| **BMDD249** | 391042 | 9657447.3 | 1215.5 | 306 | -54 | 120.4 | 128 | 7.6 | 0.41 | Msz | Shear zone with mild alteration |
| **BMDD250** | 391114.5 | 9658259 | 1227.8 | 306 | -60 | 30 | 33 | 3 | 0.42 | Msz | Shear zone with mild alteration |
|  |  |  |  |  |  | 87.2 | 122 | 34.8 | 1.26 | Msz | Mineralised shear zone with mild to strong alteration |
|  |  |  |  |  |  | 89 | 99 | 10 | 3.08 | Msz | Shear zone with strong alteration |
| **BMDD252** | 391061.7 | 9657528.7 | 1216.3 | 306 | -48 | 34 | 38.7 | 4.7 | 0.32 | Msz | Shear zone with mild alteration |
|  |  |  |  |  |  | 79.5 | 99 | 19.5 | 0.74 | Msz | Mineralised Shear zone with mild alteration |
| **BMDD253** | 390927.6 | 9657500 | 1218.1 | 126 | -51 | 82.1 | 85.5 | 3.4 | 0.96 | Msz | Mineralised shear zone with mild alteration |
| **BMDD254** | 391137.4 | 9657821 | 1220.2 | 306 | -57 | 56 | 59.8 | 3.8 | 1.3 | Msz | Mineralised shear zone with mild alteration |
| **BMDD256** | 391122.7 | 9657787 | 1219.6 | 306 | -57 | 27.9 | 30 | 2.1 | 1.21 | Msz | Mineralised shear zone with mild to strong alteration |
|  |  |  |  |  |  | 43.3 | 45 | 1.7 | 0.56 |  |  |
|  |  |  |  |  |  | 54 | 57.7 | 3.7 | 1.73 |  |  |
|  |  |  |  |  |  | 77 | 81 | 4 | 0.5 |  |  |
| **BMDD258** | 391078.9 | 9657620 | 1217.3 | 306 | -50 | 23 | 25 | 2 | 1.76 | Msz | Mineralised shear zone with mild alteration |
|  |  |  |  |  |  | 41 | 44 | 3 | 0.47 |  |  |
| **BMDD259** | 391156 | 9657714 | 1217.7 | 306 | -53 | 82 | 83.5 | 1.5 | 0.82 |  |  |
|  |  |  |  |  |  | 108 | 110 | 2 | 0.71 | Msz | Mineralised shear zone with mild alteration |
|  |  |  |  |  |  | 131 | 136 | 5 | 0.52 |  |  |
| **BMDD267** | 390966.4 | 9657379.9 | 1213.7 | 305 | -62 | 165 | 167 | 2 | 1.41 | Msz | Shear zone with mild alteration |
| **BMDD273** | 390969.4 | 9657256.9 | 1210.3 | 306 | -57 | 36.1 | 37.7 | 1.6 | 0.49 | Msz | Shear zone with mild alteration |
| **BMDD274** | 390918.3 | 9657289.7 | 1212 | 306 | -57 | 39.4 | 41 | 1.7 | 0.78 | Msz | Shear zone with mild alteration |
| **BMDD275** | 390940.4 | 9657216 | 1210 | 306 | -57 | 27.5 | 29.2 | 1.8 | 0.51 |  |  |
|  |  |  |  |  |  | 43 | 52.1 | 9.1 | 0.58 |  |  |
|  |  |  |  |  |  | 53.7 | 70.2 | 16.5 | 2.01 | Msz | Mineralised shear zone with mild to strong alteration |
|  |  |  |  |  |  | 56 | 63 | 7 | 3.27 |  |  |
|  |  |  |  |  |  | 80.3 | 84.6 | 4.3 | 0.96 |  |  |
| **BMDD278** | 390967.1 | 9657195.1 | 1209.2 | 306 | -57 | 63.6 | 71.6 | 8.1 | 0.65 |  |  |
|  |  |  |  |  |  | 83 | 89.3 | 6.3 | 1.00 | Msz | Mineralised shear zone with mild alteration |
|  |  |  |  |  |  | 128 | 131 | 3 | 0.74 |  |  |
| **BMDD279** | 390996.1 | 9657175.3 | 1208.9 | 306 | -57 | 41 | 46 | 5 | 1.13 |  |  |
|  |  |  |  |  |  | 48 | 51 | 3 | 0.63 |  |  |
|  |  |  |  |  |  | 140.6 | 142 | 1.4 | 2.72 | Msz | Mineralised shear zone with mild to strong alteration |
|  |  |  |  |  |  | 148.9 | 159.4 | 10.5 | 0.96 |  |  |

---

Notes: Sample Protocol QA/QC – see endnotes. Sampled widths are not true widths.

---

| | |
|:---|:---|
| ![](logo.jpg) | **Management's Discussion and Analysis**<br> **November 30, 2022**<br>|

---

**Figure 7: Long section of Buckreef Main Zone (View to the West) Showing 1 Meter Composite Values and Technical Report Pit Outline. Exploration to the NE of the Main Zone is Highlighted**

![](figure_07.jpg)

---

| | |
|:---|:---|
| ![](logo.jpg) | **Management's Discussion and Analysis**<br> **November 30, 2022**<br>|

---

**Figure 8: NE Buckreef Main Zone Exploration Target Highlighted and in Relation to the Anfield Zone**![](figure_08.jpg)

---

| | |
|:---|:---|
| ![](logo.jpg) | **Management's Discussion and Analysis**<br> **November 30, 2022**<br>|

---

**Figure 9: Map Showing Mineralization Extension and Location of Drill Results at Buckreef Main Zone Southwest Extension**

---

| | |
|:---|:---|
| ![](logo.jpg) | **Management's Discussion and Analysis**<br> **November 30, 2022**<br>|

---

**Sulphide Development Project – Preliminary Metallurgical Results and Ongoing Test Work**

The Company continues to work on its mid-long-term sulphide development project and has received assay results from its 19-hole metallurgical variability sampling program on the Buckreef Main Zone.

The results are positive and significant for the Company because they continue to demonstrate: (i) continuity of mineralization down dip and along strike of the deposit; and (ii) excellent width and grade of mineralization.

**Highlights include:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Hole BMMT015 intersected **28.0 m grading @ 10.68 g/t Au** from 0 m;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Hole BMMT020 intersected **123.0 m grading @ 2.69 g/t Au** from 3 m;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Hole BMMT009 intersected **121.0 m grading @ 2.96 g/t Au** from 3 m;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Hole BMMT022 intersected **106.0 m grading @ 4.19 g/t Au** from 85 m, 77 m grading @ 3.09 g/t from 241
 m; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Hole BMMT021 intersected **90.0 m grading @ 1.56 g/t Au** from 139 m.

Detailed results are shown in Table 3 and locations are shown in Figure 10.

**Figure 10: Map Showing Location of Metallurgical Drill Holes and Their Result Highlights**

![](figure_10.jpg)

---

| | |
|:---|:---|
| ![](logo.jpg) | **Management's Discussion and Analysis**<br> **November 30, 2022**<br>|

---

 **Table 3: Metallurgy Drill Hole Sample Results Summary**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Metallurgy Samples Assay Results** | **Metallurgy Samples Assay Results** | **Metallurgy Samples Assay Results** | **Metallurgy Samples Assay Results** | **Metallurgy Samples Assay Results** | **Metallurgy Samples Assay Results** | **Metallurgy Samples Assay Results** | **Metallurgy Samples Assay Results** | **Metallurgy Samples Assay Results** | **Metallurgy Samples Assay Results** | **Metallurgy Samples Assay Results** | **Metallurgy Samples Assay Results** |
| **Hole ID** | **Drill Holes Location** | **Drill Holes Location** | **Drill Holes Location** | **Drill Holes Location** | **Drill Holes Location** | **Sample Depth** | **Sample Depth** | **Width (m)** | **Assay Grade (gpt)** | **Lithology** | **Comment** |
| **Hole ID** | **Easting (m)** | **Northing (m)** | **RL (m)** | **Azimuth** | **Dip** | **From (m)** | **To (m)** | **Width (m)** | **Assay Grade (gpt)** | **Lithology** | **Comment** |
| **BMMT004** **DD** | 391096.8 | 9657894.8 | 1217.7 | 127 | -72 | 4.0 | 22.0 | 17.0 | 2.17 | Msz | Oxidised and Mineralised shear zone |
| **BMMT005** DD | 391134.7 | 9657947.9 | 1217.6 | 119 | -88 | 0.0 | 21.0 | 21.0 | 0.52 | Msz | Oxidised and Mineralised Shear zone |
| **BMMT006** DD | 391184.0 | 9658008.0 | 1217.7 | 303 | -77 | 4.0 | 15.6 | 11.6 | 0.68 | Msz | Oxidised and Mineralised Shear zone |
| **BMMT007** DD | 391223.8 | 9658080.1 | 1214.7 | 304 | -81 | 0.0 | 8.0 | 8.0 | 0.39 | Msz | Oxidised and Mineralised Shear zone |
| **BMMT008** DD | 391292.3 | 9658148.7 | 1220.1 | 306 | -77 | 2.0 | 94.0 | 89.0 | 1.72 | Msz | Mineralised shear zone with Quartz Veining |
| **BMMT009** DD | 391337.4 | 9658225.5 | 1222.1 | 303 | -82 | 3.0 | 124.0 | 121.0 | 2.96 | Msz | Oxidised and Mineralised shear zone |
|  |  |  |  |  |  | 127.0 | 148.0 | 21.0 | 0.79 | Msz | Shear zone with mild alteration |
|  |  |  |  |  |  | 152.0 | 157.0 | 5.0 | 0.2 | Msz | Shear zone with mild alteration |
| **BMMT010** DD | 391194.4 | 9658008.3 | 1217.5 | 329 | -87 | 69.0 | 86.0 | 17.0 | 3.82 | Msz | Mineralised shear zone with strong alteration |
|  |  |  |  |  |  | 87.0 | 97.0 | 10.0 | 0.82 | Msz | Shear zone with mild alteration |
|  |  |  |  |  |  | 100.0 | 129.0 | 29.0 | 3.28 | Msz | Mineralised shear zone with strong alteration |
|  |  |  |  |  |  | 144.0 | 170.0 | 26.0 | 3.59 | Msz | Mineralised shear zone with strong alteration |
| **BMMT011** DD | 391112.2 | 9657940.2 | 1217.5 | 136 | -67 | 20.0 | 84.0 | 64.0 | 1.17 | Msz | Mineralised shear zone with strong alteration |
|  |  |  |  |  |  | 85.0 | 114.0 | 29.0 | 0.37 | Msz | Shear zone with mild alteration |
|  |  |  |  |  |  | 127.0 | 137.0 | 10.0 | 2.08 | Msz | Mineralised shear zone with strong alteration |
| **BMMT012** DD | 391253.7 | 9658097.7 | 1215.1 | 242 | -75 | 4.0 | 28.0 | 24.0 | 2.28 | Msz | Mineralised shear zone with Quartz Veining |
| **BMMT014** DD | 391055.0 | 9657666.9 | 1218.3 | 90 | -78 | 27.0 | 42.0 | 15.0 | 0.59 | Msz | Mineralised shear zone with mild alteration |
| **BMMT015** DD | 391231.1 | 9658072.9 | 1215.3 | 310 | -80 | 0.0 | 28.0 | 28.0 | 10.68 | Msz | Mineralised shear zone with Quartz Veining |
| **BMMT016** DD | 391353.7 | 9658331.9 | 1223.4 | 306 | -81 | 7.0 | 41.0 | 34.0 | 2.03 | Msz | Mineralised shear zone with strong alteration |
|  |  |  |  |  |  | 49.0 | 76.0 | 27.0 | 1.45 |  | Mineralised shear zone with strong alteration |
|  |  |  |  |  |  | 96.0 | 101.0 | 5.0 | 0.37 | Msz | Shear zone with mild alteration |
| **BMMT017** DD | 391469.3 | 9658387.0 | 1219.9 | 142 | -80 | 4.0 | 26.0 | 22.0 | 3.30 | Msz | Oxidised and Mineralised shear zone |
| **BMMT018** DD | 391521.8 | 9658681.8 | 1218.6 | 126 | -82 | 4.0 | 33.0 | 29.0 | 2.97 | Msz | Mineralised shear zone with Quartz Veining |
|  |  |  |  |  |  | 43.0 | 53.0 | 10.0 | 0.34 | Msz | Mineralised shear zone with mild alteration |
|  |  |  |  |  |  | 57.0 | 141.8 | 84.8 | 0.64 | Msz | Mineralised shear zone with mild alteration |
|  |  |  |  |  |  | 143.0 | 169.0 | 26.0 | 0.63 | Msz | Mineralised shear zone with mild alteration |
| **BMMT019** DD | 391464.1 | 9658771.4 | 1220.0 | 130 | -67 | 50.0 | 78.0 | 28.0 | 2.33 | Msz | Mineralised shear zone with strong alteration |
|  |  |  |  |  |  | 86.0 | 91.0 | 5.0 | 0.43 | Msz | Mineralised shear zone with mild alteration |
|  |  |  |  |  |  | 100.0 | 111.0 | 11.0 | 0.55 | Msz | Mineralised shear zone with mild alteration |
|  |  |  |  |  |  | 135.0 | 142.0 | 7.0 | 0.77 | Msz | Mineralised shear zone with mild alteration |
|  |  |  |  |  |  | 161.0 | 167.0 | 6.0 | 0.55 | Msz | Mineralised shear zone with mild alteration |
|  |  |  |  |  |  | 200.0 | 212.0 | 12.0 | 0.75 | Msz | Mineralised shear zone with mild alteration |
|  |  |  |  |  |  | 214.0 | 218.0 | 4.0 | 0.32 | Msz | Mineralised shear zone with mild alteration |
|  |  |  |  |  |  | 222.0 | 229.8 | 7.8 | 0.55 | Msz | Mineralised shear zone with mild alteration |
| **BMMT020** DD | 391519.4 | 9658607.6 | 1219.9 | 126 | -80 | 3.0 | 126.0 | 123.0 | 2.69 | Msz | Mineralised shear zone with strong alteration |
|  |  |  |  |  |  | 128.0 | 130.0 | 2.0 | 1.55 | Msz | Mineralised shear zone with strong alteration |
|  |  |  |  |  |  | 152.0 | 154.0 | 2.0 | 2.00 | Msz | Mineralised shear zone with strong alteration |
|  |  |  |  |  |  | 202.0 | 208.0 | 6.0 | 2.82 | Msz | Mineralised shear zone with strong alteration |
| **BMMT021** DD | 391493.7 | 9658549.5 | 1220.9 | 134 | -85 | 2.0 | 80.0 | 78.0 | 0.58 | Msz | Mineralised shear zone with quartz veining |
|  |  |  |  |  |  | 88.0 | 91.0 | 3.0 | 0.33 | Msz | Mineralised shear zone with quartz veining |
|  |  |  |  |  |  | 118.0 | 126.0 | 8.0 | 0.54 | Msz | Mineralised shear zone with mild alteration |
|  |  |  |  |  |  | 139.0 | 229.0 | 90.0 | 1.56 | Msz | Mineralised shear zone with strong alteration |
|  |  |  |  |  |  | 238.0 | 245.0 | 7.0 | 0.95 | Msz | Mineralised shear zone with mild alteration |
| **BMMT022** DD | 391467.7 | 9658451.6 | 1221.0 | 127 | -82 | 42.0 | 54.0 | 12.0 | 0.3 | Msz | Mineralised shear zone with mild alteration |
|  |  |  |  |  |  | 58.0 | 72.0 | 14.0 | 0.76 | Msz | Mineralised shear zone with mild alteration |
|  |  |  |  |  |  | 85.0 | 191.0 | 106.0 | 4.19 | Msz | Mineralised shear zone with strong alteration |
|  |  |  |  |  |  | 194.0 | 211.0 | 17.0 | 1.16 | Msz |  |
|  |  |  |  |  |  | 213.0 | 240.0 | 27.0 | 1.78 | Msz | Mineralised shear zone with strong alteration |
|  |  |  |  |  |  | 241.0 | 318.0 | 77.0 | 3.09 | Msz | Mineralised shear zone with strong alteration |
|  |  |  |  |  |  | 321.0 | 338.0 | 17.0 | 2.95 | Msz | Mineralised shear zone with strong alteration |

---

Notes: Sample Protocol QA/QC – see footnote below. Sampled widths are not true widths. Of 19 holes drilled, 18 are reported, with the remaining hole unreported due to an incomplete intersection of the Main Zone.

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| | |
|:---|:---|
| ![](logo.jpg) | **Management's Discussion and Analysis**<br> **November 30, 2022**<br>|

---

As part of the metallurgical variability study, using core from the 19 hole drill program, the Company will assess the amenability of the sulphide material to be processed through the existing processing plant, using its relatively simple flowsheet. In turn, this may have positive implications for potential plant expansions. During the quarter, the Company. working with Ausenco, has successfully identified a metallurgical laboratory of good renown to complete this work to undertake which will encompass the first 5-7 years of production from the sulphide mine and processing operations at Buckreef Gold. This study will build on the prior work of SGSC on deeper parts of the mineral resource and data gathered during processing of the oxide, transitional mineral reserve. All samples have been prepared and are ready for shipment.

The samples will be analyzed for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Overall gold recoveries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Process design to achieve those recoveries (grindability, retention times, straight CIL or
 flotation/regrind);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Any pregnant solution robbing or refractory mineralogy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Acid Mine Drainage (if any) characteristics; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Dry stack tailings characteristics.

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| | |
|:---|:---|
| ![](logo.jpg) | **Management's Discussion and Analysis**<br> **November 30, 2022**<br>|

---

**First Quarter 2023 Financial Highlights** 

For the three months ended November 30, 2022, Buckreef Gold produced and sold 5,395 and 5,754 ounces of gold, respectively – both quarterly records for the Company.

The Company recognized revenue on the Statements of Income (Loss) and Comprehensive Income (Loss) of $9.7 million for the three months ended November 30, 2022.

Cost of sales, which includes production costs, royalties and depreciation, was $4.4 million generating a gross profit margin of $5.3 million or 55% during Q1 2023 and net income of $5.2 million.

The quarterly sales record (5,754 ounces) generated positive operating cash flow of $6.6 million in Q1 2023. Positive operating cash flow is being used to fund value creating activities, including exploration and advancing the sulphide development project.

At November 30, 2022 the Company had a cash balance of $8.9 million and a working capital surplus of $4.8 million after adjusting for current liabilities which will only be settled by issuing equity.

**Capital Expenditures**

During the three months ended November 30, 2022 the Company incurred a total of $5.4 million in cash capital expenditures. Net additions increased as the Company continued to invest in infrastructure and development for the Buckreef Gold property during the quarter, primarily relating to capital expenditures related to final commissioning of the 1,000+ tpd processing plant in November 2022, capitalized pre-stripping mine development activity with FEMA to access a greater extent of ore, including higher grade blocks, one-time expenditures related to final road realignment around the Special Mining License which will enable full life of mine access to the Main Zone, construction of a significantly expanded tailings storage facility and development drilling related to the diamond drill program with STAMICO, for a program which focused on infill and exploration drilling at Buckreef Main, Anfield and Eastern Porphyry.

**Selected Financial Information** 

The following information has been extracted from the Company's interim condensed unaudited consolidated financial statements for the three months ended November 30, 2022 and audited consolidated financial statements prepared in accordance with IFRS, for the years ended August 31, 2022 and 2021.

---

| | | | |
|:---|:---|:---|:---|
| **$(000's)** | **As at and for the<br> three months ended<br> November 30, 2022**  | **As at and for the<br> twelve months ended<br> August 31, 2022**  | **As at and for the<br> year ended<br> August 31, 2021**  |
| Net income (loss) and comprehensive income (loss) attributable to shareholders | 3512 | (6216) | (4004) |
| Basic income (loss) per share | 0.01 | (0.02) | (0.02) |
| Diluted income (loss) per share | 0.01 | (0.02) | (0.02) |
| Total assets | 75338 | 71845 | 56518 |
| Total long term financial liabilities | 4056 | 3436 | 2681 |

---

---

| | |
|:---|:---|
| ![](logo.jpg) | **Management's Discussion and Analysis**<br> **November 30, 2022**<br>|

---

**Financial Results**

**Three months ended November 30, 2022**

---

| | | |
|:---|:---|:---|
|  | **Three months ended** | **Three months ended** |
| | **November 30** | **November 30** |
| | **2022** | 2021 |
| Revenue | $**9718** | $— |
| Cost of sales | **(4408)** |  |
| Gross profit | **5310** |  |
| General and administrative expense | **(1837)** | (2345) |
| Gain on derivative warrant liabilities | **3365** | 208 |
| Foreign exchange | **(7)** | 18 |
| Interest, net and other expense | **(185)** | (39) |
| Income tax expense | **(1486)** |  |
| Net income (loss) and comprehensive income (loss) | $**5160** | $(2158) |
| Net income (loss) and comprehensive income (loss) attributable to shareholders | **3512** | (2022) |
| Net income (loss) and comprehensive income (loss) attributable to non-controlling interests | **1648** | (136) |

---

**Revenue**

For the three months ended November 30, 2022, the Company recognized revenue of $9.7 million. Note that the financial statements for the comparable period do not present revenue, cost of sales or gross profit as Buckreef Gold early adopted amendments to International Accounting Standards ("IAS") 16, Property, Plant and Equipment, as disclosed in the three and six months ended February 28, 2022 financial statements. Gold sales and related costs prior to that date were capitalized to exploration and evaluation assets and expenditures. During the period, the Company sold 5,754 ounces of gold at an average realized price<sup>1</sup> of $1,689 per ounce.

**Cost of sales**

Cost of sales for the three months ended November 30, 2022 was $4.4 million and is comprised of production costs, (including mining, processing and site general and administrative costs), royalties and depreciation. Assets are depreciated on a straight-line basis over their useful life or depleted on a units-of-production basis over the reserves to which they relate.

In connection with the successful processing plant expansion which resulted in higher plant throughput and gold production, the Company changed the method of estimating the cost of its ore stockpiles effective September 1, 2022. The updated methodology estimates the cost of ore stockpiles based on estimated recoverable ounces of gold in ore stockpiles whereby the previous methodology was based on tonnes of ore in stockpiles. The net result is that higher costs are attached to higher grade ore and consequently, higher costs are charged to the statements of comprehensive income/(loss) during periods that higher grade ore is processed and sold (and vice versa). The Company believes this methodology better matches revenue and expenses and has been applied prospectively.

For the three months ended November 30, 2022, the Company recorded production costs of $3.5 million and royalties of $0.7 million based on a 7.3% statutory royalty rate in Tanzania. Cash costs<sup>1</sup> which include production costs and royalties were $732 per ounce, below the low end of guidance range. Under the previous methodology, when estimating the cost of ore stockpiles based on tonnes rather than recoverable ounces, cash costs<sup>1</sup> would have been $605 per ounce.

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|:---|:---|
| ![](logo.jpg) | **Management's Discussion and Analysis**<br> **November 30, 2022**<br>|

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On November 1, 2022, the Company declared commercial production for the 1,000+ tpd processing plant at Buckreef after successful construction, commissioning and ramp-up of processing to a steady state throughput of 1,000+ tpd. Upon declaration of commercial production, capitalization of mine development costs ceases and depreciation of capitalized mine development costs commences. For the three months ended November 30, 2022, the Company recorded depreciation of $0.2 million.

As noted above, the prior year comparable period does not present cost of sales as Buckreef Gold early adopted amendments to IAS 16 as disclosed in the three and six months ended February 28, 2022 financial statements. Prior to that date any related cost of sales were capitalized to exploration and evaluation assets and expenditures.

**General and administrative expense**

During the three months ended November 30, 2022, the Company recorded general and administrative expense of $1.8 million compared to $2.3 million for the previous year comparable period, mainly due to a decrease in share-based compensation expense and a reduction in salaries and benefits. The decrease in share-based compensation expense was mainly due to a portion of equity based compensation granted to certain key management personnel in connection with their employment contracts being fully vested. The decrease in salaries and benefits as compared to the prior year period was mainly due to recognition of certain costs related to Buckreef's operating activities in cost of sales in Q1 2023 as a result of early adoption of amendments to IAS 16 during the three and six months ended February 28, 2022.

**Gain on derivative warrant liabilities**

During the three months ended November 30, 2022, the Company had a gain on derivative warrant liabilities of $3.4 million compared to a gain of $0.2 million in the prior year period. The gain on revaluation of derivative warrant liabilities was principally due to a decrease in the share price using the Black Scholes option pricing model (Q1 2023 - $0.34, Q1 2022 - $0.41).

**Income tax expense**

Income tax expense is recognized based on management's estimate of the weighted average annual income tax rate expected for the full financial year. During the three months ended November 30, 2022, the Company recorded net income at Buckreef Gold and recognized income tax expense of $1.5 million, comprised of a current income tax expense of $0.4 million (November 30, 2021 - $nil) and deferred income tax expense of $1.1 million (November 30, 2021 - $nil) based on current Tanzanian statutory tax rates.

**Net income (loss) and comprehensive income (loss)** 

The Company reported net income for the three month period ended November 30, 2022 of $5.2 million ($3.5 million net income attributable to shareholders, basic and diluted earnings per share of $0.01, respectively). This compared to a net loss of $2.2 million in the prior year period ($2.0 million net loss attributable to shareholders, basic and diluted loss per share of $0.01, respectively).The increase in net income is primarily the result of an increase in gross profit of $5.3 million following sales of $9.7 million and cost of sales of $4.4 million during Q1 2023. This, combined with an increased gain on derivative warrant liabilities ($3.2 million) due to a decrease in share price and a decrease in general and administrative expense ($0.5 million) due to lower share-based compensation expense and lower salaries and benefits was partially offset by an increase in income tax expense of $1.5 million following recognition of net income at Buckreef Gold.

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|:---|:---|
| ![](logo.jpg) | **Management's Discussion and Analysis**<br> **November 30, 2022**<br>|

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**Summary of Quarterly Results** 

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **($(000's), except per share amounts)** | **($(000's), except per share amounts)** | **($(000's), except per share amounts)** | **($(000's), except per share amounts)** | **($(000's), except per share amounts)** | **($(000's), except per share amounts)** | **($(000's), except per share amounts)** | **($(000's), except per share amounts)** | **($(000's), except per share amounts)** |
| US$ unless otherwise stated | 2023 Q1 | 2022 Q4 | 2022 Q3 | 2022 Q2 | 2022 Q1 | 2021 Q4 | 2021 Q3 | 2021 Q2 |
| **Net income (loss) and comprehensive income (loss)** | 5160 | (2350) | 3188 | (1002) | (2158) | (3517) | 33 | (164) |
| Net income (loss) and comprehensive (income) loss attributable to: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;*Non-controlling interests* | 1648 | 1857 | 1217 | 956 | (136) | (79) | (483) | (197) |
| &nbsp;&nbsp;&nbsp;*Common shareholders* | 3512 | (4207) | 1971 | (1958) | (2022) | (3438) | 516 | 33 |
| **Net income (loss) and comprehensive income (loss)** | 5160 | (2350) | 3188 | (1002) | (2158) | (3517) | 33 | (164) |

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**Liquidity and Capital Resources** 

At November 30, 2022 the Company had $8.9 million of cash (August 31, 2022 - $8.5 million) and working capital of $4.8 million after adjusting for current liabilities which will only be settled by issuing equity of the Company (August 31, 2022 - $5.4 million).

The increase in cash of $0.4 million over August 31, 2022 was primarily due to an increase in operating cash flow (Q1 2023: $6.6 million, Q4 2022: $2.4 million). During Q1 2023 the Company poured 5,395 ounces of gold (Q4 2022: 3,619) and sold 5,754 ounces of gold (Q4 2022: 3,363), both new records for Buckreef Gold which contributed to record operating cash flow during Q1 2023. The increase in operating cash flow was partially offset by an increase in capital expenditures related to the final commissioning of the expanded 1,000+ tpd processing plant, capitalized pre-stripping mine development, expenditures related to final road realignment around the Special Mining License, construction of a significantly expanded tailings storage facility and development drilling related to the diamond drill program with STAMICO.

To help supplement the Company's liquidity and to fund productivity enhancing purchases, during Q4 2022 the Company announced that its operating subsidiary, Buckreef Gold Corporation Limited, entered into a pre-paid gold purchase agreement with a contract price totaling US$5 million with OCIM. The total contract price was made available to Buckreef Gold in tranches with a $2.5 million upfront tranche and further tranches to be drawn over the next 18 months at Buckreef Gold's option. Tranche 1 in this non-dilutive financing includes a 6-month grace period and a repayment period over the following 12 months as quarterly deliveries of a pre-determined quantity of gold. During Q1 2023, the Company drew down the first tranche of $2.5 million in exchange for delivering 434 ounces of gold per quarter, commencing February 2023, for a total of 1,735 ounces of gold over four quarters. The Company intends to use these proceeds on an opportunistic basis and provides the flexibility to make value accretive equipment purchases, and to expedite exploration and sulphide development programs at Buckreef Gold.

In addition, to provide the Company with access to supplementary liquidity, during Q2 2022, TRX Gold entered into a purchase agreement with Lincoln Park Capital Fund, LLC ("Lincoln Park"). This agreement provides TRX Gold with the right to sell up to $10 million of its shares to Lincoln Park over a 36-month period at its sole discretion. TRX Gold will control the timing and amount of any sales to Lincoln Park and will use the proceeds as needed to develop the Buckreef Gold asset. To date, TRX Gold has made no sales of common shares to Lincoln Park.

As of November 30, 2022, the Company has accumulated losses of $120.2 million since inception (August 31, 2022: $123.7 million).

**Commitments**

In order to maintain existing site mining and exploration licenses, the Company is required to pay annual license fees. As at November 30, 2022 these licenses remained in good standing and the Company is up to date on license payments.

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|:---|:---|
| ![](logo.jpg) | **Management's Discussion and Analysis**<br> **November 30, 2022**<br>|

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**Contingencies**

The Company is involved in litigation and disputes arising in the normal course of operations. Management is of the opinion that the outcome of any potential litigation will not have a material adverse impact on the Company's financial position or results of operations. Accordingly, no provisions for the settlement of outstanding litigation and potential claims have been accrued.

**Off-Balance Sheet Arrangements**

The Company has no off-balance sheet arrangements.

**Transactions with Related Parties** 

The Company may enter into related party transactions that are in the normal course of business. Transactions with Related Parties disclosure can be found in Note 15 of the Unaudited Interim Consolidated Financial Statements for the three months ended November 30, 2022.

**Omnibus Equity Incentive Plan**

Effective June 26, 2019, the Company adopted the Omnibus Equity Incentive Plan dated June 26, 2019 (the "Omnibus Plan"), which Omnibus Plan was approved by the shareholders on August 16, 2019, subsequently updated and approved by the shareholders on February 25, 2022.

The purposes of the Omnibus Plan are: (a) to advance the interests of the Company by enhancing the ability of the Company and its subsidiaries to attract, motivate and retain employees, officers, directors, and consultants, which either of directors or officers may be consultants or employees; (b) to reward such persons for their sustained contributions; and (c) to encourage such persons to consider the long-term corporate performance of the Company.

The Omnibus Plan provides for the grant of options, restricted share units ("RSUs"), deferred share units ("DSUs") and performance share units ("PSUs") (collectively, the "Omnibus Plan Awards"), all of which are described in detail in the Form 40-F Annual Report for the year ended August 31, 2022, and the Information Circular dated January 21, 2022, filed on SEDAR on January 27, 2022.

The Omnibus Plan provides for the grant of other share-based awards to participants ("Other Share-Based Awards"), which awards would include the grant of common shares. All Other Share-Based Awards will be granted by an agreement evidencing the Other Share-Based Awards granted under the Omnibus Plan.

Subject to adjustments as provided for under the Omnibus Plan, the maximum number of shares issuable pursuant to Omnibus Plan Awards outstanding at any time under the Omnibus Plan shall not exceed 10% of the aggregate number of common shares outstanding from time to time on a non-diluted basis; provided that the acquisition of common shares by the Company for cancellation shall not constitute non-compliance with the Omnibus Plan for any Omnibus Plan Awards outstanding prior to such purchase of common shares for cancellation.

For more particulars about the Omnibus Plan, we refer you to the copy of the Omnibus Plan previously filed as an exhibit with the SEC and on SEDAR. The Omnibus Plan replaces all previous equity compensation plans of the Company, including the Restricted Stock Unit Plan and Stock Option Plan.

**Changes in Accounting Polices and Critical Accounting Estimates and Judgements**

Significant accounting policies as well as any changes in accounting policies are discussed in Note 2 "Basis of Preparation", Note 3 "Significant Accounting Policies" and Note 4 "Significant Accounting Judgments, Estimates and Assumptions" of the Company's Unaudited Interim Consolidated Financial Statements for the three months ended November 30, 2022.

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|:---|:---|
| ![](logo.jpg) | **Management's Discussion and Analysis**<br> **November 30, 2022**<br>|

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**Non-IFRS Performance Measures**

**Average realized price per ounce of gold sold**

Average realized price per ounce of gold sold is a non-IFRS measure and does not constitute a measure recognized by IFRS and does not have a standardized meaning defined by IFRS. Average realized price per ounce of gold sold is calculated by dividing revenue by ounces of gold sold. It may not be comparable to information in other gold producers' reports and filings.

Dollar amounts are expressed in thousands of US dollars.

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|:---|:---|
| | Three Months Ended<br>November 30, 2022 |
| Revenue per financial statements | $9718 |
| Ounces of gold sold | 5754 |
| **Average realized price gold sold** | $**1689** |

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**Cash costs per ounce of gold sold**

Cash cost per ounce of gold sold is a non-IFRS performance measure and does not constitute a measure recognized by IFRS and does not have a standardized meaning defined by IFRS. Cash cost per ounce may not be comparable to information in other gold producers' reports and filings. Upon declaration of commercial production of the 1,000+ tpd processing plant in Q1 2023, capitalization of mine development costs ceased, and depreciation of capitalized mine development costs commenced. As the Company uses this measure to monitor the performance of our gold mining operations and its ability to generate positive cash flow, beginning in Q1 2023, total cash costs per ounce of gold sold starts with cost of sales related to gold production and removes depreciation. The following table provides a reconciliation of total cash costs per ounce of gold sold to cost of goods sold per the financial statements for the three months ended November 30, 2022.

Dollar amounts are expressed in thousands of US dollars.

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| | |
|:---|:---|
| | Three Months Ended<br>November 30, 2022 |
| Cost of sales per financial statements<br>| $4408 |
| Less: Depreciation | $(193) |
| Total cash costs | $4215 |
| Ounces of gold sold | 5754 |
| **Cash costs per ounce of gold sold** | $**732** |

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|:---|:---|
| ![](logo.jpg) | **Management's Discussion and Analysis**<br> **November 30, 2022**<br>|

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**Adjusted EBITDA**

Adjusted EBITDA is a non-IFRS performance measure and does not constitute a measure recognized by IFRS and does not have a standardized meaning defined by IFRS. Adjusted EBITDA may not be comparable to information in other gold producers' reports and filings. Adjusted EBITDA is presented as a supplemental measure of the Company's performance and ability to service its obligations. Adjusted EBITDA is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the industry, many of which present Adjusted EBITDA when reporting their results. Issuers present Adjusted EBITDA because investors, analysts and rating agencies consider it useful in measuring the ability of those issuers to meet their obligations. Adjusted EBITDA represents net income (loss) before interest, income taxes, and depreciation and also eliminates the impact of a number of items that are not considered indicative of ongoing operating performance.

Certain items of expense are added, and certain items of income are deducted from net income that are not likely to recur or are not indicative of the Company's underlying operating results for the reporting periods presented or for future operating performance and consist of:

• Unrealized gain/loss on derivative warrant liabilities;

• Accretion related to the provision for reclamation; and

• Amortization of share-based compensation expense.

The following table provides a reconciliation of net income (loss) and comprehensive income (loss) to Adjusted EBITDA per the financial statements for the three months ended November 30, 2022.

Dollar amounts are expressed in thousands of US dollars.

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| | | |
|:---|:---|:---|
| | Three Months Ended<br>November 30, 2022 | Three Months Ended<br>November 30, 2021 |
| Net income (loss) and comprehensive income (loss) per financial statements | $5160 | $(2158) |
| Add: |  |  |
| Depreciation | 193 |  |
| Interest and other expenses | 185 | 39 |
| Income tax expense | 1486 |  |
| Gain on derivative warrant liabilities | (3365) | (208) |
| Share-based compensation expense | 753 | 980 |
| **Adjusted EBITDA** | $**4412** | $**(1347)** |

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The Company has included "average realized price per ounce of gold sold", "cash costs per ounce of gold sold" and "Adjusted EBITDA" as non-IFRS performance measures throughout this MD&A as TRX Gold believes that these generally accepted industry performance measures provide a useful indication of the Company's operational performance. The Company believes that certain investors use this information to evaluate the Company's performance and ability to generate cash flow. Accordingly, they are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

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|:---|:---|
| ![](logo.jpg) | **Management's Discussion and Analysis**<br> **November 30, 2022**<br>|

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**Disclosure of Outstanding Share Data**

As at the date of this MD&A, there were 276,588,684 common shares outstanding, 41,970,074 share purchase warrants outstanding, 1,095,276 RSUs outstanding, nil PSUs/DSUs outstanding, and 12,711,000 stock options outstanding.

**Risks Factors** 

The Company is subject to a number of extraneous risk factors over which it has no control. These factors are common to most mineral exploration and development companies and include, among others: project ownership, exploration and development risk, depressed equity markets and related financing risk, commodity price risk, fluctuating exchange rates, environmental risk, insurance risk, sovereign risk. For further details on the risk factors affecting the Company, please see the Company's Form 40-F Annual Report for the year ended August 31, 2022 filed with the SEC on November 29, 2022 and on SEDAR as the Company's Annual Information Form on November 29, 2022.

**Internal Control Over Financial Reporting ("ICFR")** 

Management of the Company is responsible for establishing and maintaining adequate internal controls over financial reporting ("ICFR") for the Company as defined in Rule 13a-15(f) under the Securities and Exchange Act of 1934. The Company's management, including the Company's Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO") have conducted an evaluation of the design and effectiveness of the Company's ICFR as of August 31, 2022. In making this assessment, the Company's management used the criteria established in Internal Control – Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO 2013"). This evaluation included review of the documentation of controls, evaluation of the design and operating effectiveness of controls, and a conclusion on this evaluation. Based on this evaluation, Management concluded that ICFR was not effective for the year ended August 31, 2022 due to the following material weaknesses: (i) the Company had not implemented and tested all of the Company's key controls, including information technology general controls, internal control over financial reporting and disclosure controls and procedures as per the criteria established in the COSO 2013 Framework and (ii) lack of timely review and approval of certain journal entries and reconciliations.

Remediation of Material Weaknesses

The control deficiencies described above were concluded on by management during the year ended August 31, 2022. The Company has prioritized the remediation of the material weaknesses and is working under the oversight of the Audit Committee to resolve the issue.

During the year ended August 31, 2022, the Company continued to strengthen its internal controls and are committed to ensuring that such controls are designed and operating effectively. The Company is implementing process and control improvements and management made the following changes during the year to improve the internal control framework, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;· Engaged a third-party service provider to design and implement an enhanced internal control environment framework.
 During the year, the Company developed a set of key risk control matrices by business cycle and by entity, including key controls, business
 processes and policies to enhance the maturity level of the Company's internal control environment. The Company also developed narratives
 and process maps for each key business cycle as conducted through walkthroughs with management, staff and its third-party IT services
 provider within all key business cycles. Management has been proactive in implementing the newly designed internal control framework and
 is remediating any identified control gaps.

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|:---|:---|
| ![](logo.jpg) | **Management's Discussion and Analysis**<br> **November 30, 2022**<br>|

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&nbsp;&nbsp;&nbsp;&nbsp;· Built an experienced Buckreef Finance team with several internal personnel changes, including a new site Finance
 Manager and site Finance Superintendent, to enhance review and approval of invoices, journal entries and reconciliations, improve segregation
 of duties and to optimize the Company's financial reporting close process.

&nbsp;&nbsp;&nbsp;&nbsp;· Hired a new Corporate Controller with extensive IFRS experience to further supplement review and approval
 of journal entries and reconciliations, and to improve the Company's financial reporting close process and reporting of the Company's
 financial results and disclosures. This also includes preparation of formal accounting memorandums to support our conclusions on technical
 accounting matters, and the development and use of checklists and research tools to assist in compliance with IFRS with regard to complex
 accounting issues.

&nbsp;&nbsp;&nbsp;&nbsp;· The Company implemented a new enterprise resource planning system subsequent to August 31, 2022 to help automate
 certain reconciliations and manual processes and to increase the efficiency of the financial statement review process. It is also expected
 to eliminate risk of manual spreadsheet errors and formalize procedures around validation of completeness and accuracy of spreadsheets
 related to account reconciliations. The Company will continue to expand on the use of the software tool to help manage month-end and quarter-end
 activities.

During the year ended August 31, 2022, the Company worked with a third-party service provider to design and document a new and improved system of internal controls and is currently in the process of implementing and testing the operating effectiveness of these newly designed key controls with the goal of remediating the material weakness identified above. However, as at August 31, 2022, the Company has been unable to complete this implementation by the required reporting date due to limited time and resources. Proposed changes to address the material weaknesses will take time to implement due to, amongst other things, a limited number of staff at the Company.

It is the Company's intention to remediate the material weakness by engaging a third-party service provider to assist in the review, evaluation and testing of the Company's controls and procedures in a timely manner over the course of fiscal 2023.

**Additional Information**

The Company is a Canadian public company listed on the Toronto Stock Exchange trading under the symbol "TNX" and also listed on the NYSE American trading under the symbol "TRX". Additional information about the Company and its business activities is available on SEDAR at www.sedar.com; with the SEC at sec.gov; and the Company's website at www.TRXgold.com.

**Approval**

The Board of Directors of TRX Gold Corporation has approved the disclosure contained in this Q1 2023 MD&A. A copy of this Q1 2023 MD&A will be provided to anyone who requests it. It is also available on the SEDAR website at www.sedar.com

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|:---|:---|
| ![](logo.jpg) | **Management's Discussion and Analysis**<br> **November 30, 2022**<br>|

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**Endnotes**

<sup>1</sup> Refer to "Non-IFRS Performance Measures" section.

<sup>2</sup> Notes Regarding Sample Protocol QA/QC: The sample chain of custody is managed by the Buckreef Gold geology team on site. Reported results are from diamond drilled core samples. Intervals of core to be analyzed are split into half using a mechanized core cutter, with one half sent to the Laboratory for geochemical analysis and the remaining half kept in storage for future reference and uses. Diamond drilled core has been a HQ size and recoveries are consistently 100% across all drill holes intercept reported.

Sampling and analytical procedures are subject to a comprehensive quality assurance and quality control program. The QA/QC program involves insertion of duplicate samples, blanks and certified reference materials in the sample stream. Gold analyses are performed by standard fire assaying protocols using a 50-gram charge with atomic absorption (AAS) finish and a gravimetric finish performed for assays greater than 10 grams per tonne.

Sample Preparation and analysis are performed by independent SGS Laboratory in Mwanza, Tanzania. SGS Laboratory is ISO17025 accredited and employs a Laboratory Information Management System for sample tracking, quality control and reporting.

The results summarized in this MD&A are from Buckreef Main Zone NEE prospect. The prospect is an extension of the known Buckreef Main Zone. The intercepts confirm a continuity of over 200 m of known Buckreef main deposit to the North east. The intersections reported here are a down-hole length and may not represent true width, however the true width is estimated to be between 50% - 60% of the length.