Company UpdateMetals and Mining

October 1, 2020

Auryn Resources, Inc. (AUG)Rating: Buy

Heiko F. Ihle, CFA212-356-0510

hihle@hcwresearch.comTyler Bisset

646-975-6955tbisset@hcwresearch.com

Marcus Giannini212-916-3978

mgiannini@hcwresearch.com

Refinement of Targets at Committee Bay; Anticipating Fury GoldVote Next Week to Unlock Shareholder Value; Reiterate Buy

Stock Data 09/30/2020Price $1.97Exchange NYSE AmericanPrice Target $2.8052-Week High $2.6652-Week Low $0.71Enterprise Value (M) $204Market Cap (M) $212Shares Outstanding (M) 107.63 Month Avg Volume 675,735Short Interest (M) 1.05Balance Sheet MetricsCash (M) $8.5Total Debt (M) $0.0Total Cash/Share $0.08

EPS (C$) DilutedFull Year - Dec 2019A 2020E 2021EFY C$(0.15) C$(0.13) C$(0.14)

3

2.5

2

1.5

1

0.5OCT-19 JAN-20 MAY-20 SEP-20

3

2.5

2

1.5

1

0.5

0

Vol. (mil) Price

Target identification at Committee Bay. On September 29, 2020,Auryn Resources announced the refinement of 12 targets across theCommittee Bay gold belt. These targets were generated utilizing a newunderstanding of high-grade systems across the gold belt based ongeophysical conductivity data. We note the importance of geophysicalsurveying as an exploration tool at site given the obstructed surfacemineralization due to glacial till. Going forward, the company intends todelineate the Kalulik – Aiviq structural corridor, the Anuri target area,and expand upon the Three Bluffs deposit, through exploration of thesetargets.

Strong growth potential at Three Bluffs. The Three Bluffs depositoffers potential for resource through the delineation of variousdefining structures, amid the identification of novel mineralized pods.We ultimately expect Three Bluffs to exhibit multiphase structuralcomponents where a secondary fold hinge within the system is believedto serve as a host for gold. Notably, Auryn has also identified sub-parallel fold hinges to the north of Three Bluffs that could contribute tothe known resource. In short, while structurally complex, Three Bluffsoffers a multifaceted depositional environment which Auryn continuesto delineate through certain geophysical responses.

Near-term reorganization into Fury Gold expected. On October 5,2020, shareholders of Auryn Resources are expected to vote on thecompany's proposed reorganization plan. Should shareholders approvethe proposal as presented, Auryn Resources is expected to start tradingas Fury Gold Mines under the ticker "FURY" on Friday, October 9, 2020.The proposal entitles shareholders to receive 0.7 shares of Fury Gold,which is expected to hold the company's Canadian assets, as well asa share of Sombrero Resources and Tier One Metals share for eachAuryn share. In short, Sombrero Resources is a holding company for theSombrero project, while Tier One Metals holds Curibaya and Huilacollo.Management expects both assets to go public in FY21. Looking ahead,we believe the three prongs of the company can narrow the focus ofeach entity to unlock shareholder value.

We are reiterating our Buy rating and our PT of $2.80 per share.Our valuation remains based on in situ ounces (oz) for the company'sresources at Committee Bay and Homestake at a $75/oz value. Wethen assign an unchanged $75.0M valuation to the Sombrero property,and an additional $45.0M for Auryn's non-core exploration assets. Webelieve that these valuations remain in line with comparable assets injurisdictions carrying equal geopolitical risks factors. We then add thecompany’s cash balance to arrive at our overall NAV of $317.4M, whichwe divide by the fully diluted share count of 115.4M, to achieve ourrounded price target of $2.80 per share.

Risks. (1) Commodity price risk; (2) operating and technical risk; (3)and financial risk.

For definitions and the distribution of analyst ratings, analyst certifications, and other disclosures, please refer to pages 3 - 4 of this report.

Auryn Resources

Figures below in 000's of U.S. dollars

Value of resources at Committee Bay and Homestake 188,523$

Plus Sombrero copper-gold project in Southern Peru 75,000$

Plus other exploration assets 45,000$

Plus cash & equivalents 8,830$

Less debt -$

Total current value 317,353$ 1.3 C$/US$ exchange rate as of 9/30/20

Common shares 107,613

Options & Warrants 7,783

Fully diluted shares 115,396

Auryn (AUG) Share price 1.97$ per share as of 9/30/20

Auryn (AUG) Net Asset Value 2.75$ per share

Rounded ($0.10) price target 2.80$ per share 29.6% discount to price target

Source: H.C. Wainwright & Co. estimates.

increased from $30M as of 7/13/20; includes Huilacollo, Curibaya, Sambalay, Salvador, Banos Del Indio, and Gibson MacQuoid

as of 5/12/20

as of 8/11/20

valued at ~$75 per oz (in line with current peer average multiple)

as of 8/11/20

increased from $50M as of 7/13/2020 given incremental exploration results

Auryn Resources, Inc. October 1, 2020

H.C. WAINWRIGHT & CO. EQUITY RESEARCH 2

Important Disclaimers

This material is confidential and intended for use by Institutional Accounts as defined in FINRA Rule 4512(c). It may also beprivileged or otherwise protected by work product immunity or other legal rules. If you have received it by mistake, please letus know by e-mail reply to unsubscribe@hcwresearch.com and delete it from your system; you may not copy this message ordisclose its contents to anyone. The integrity and security of this message cannot be guaranteed on the Internet.H.C. WAINWRIGHT & CO, LLC RATING SYSTEM: H.C. Wainwright employs a three tier rating system for evaluating boththe potential return and risk associated with owning common equity shares of rated firms. The expected return of any givenequity is measured on a RELATIVE basis of other companies in the same sector. The price objective is calculated to estimatethe potential movements in price that a given equity could reach provided certain targets are met over a defined time horizon.Price objectives are subject to external factors including industry events and market volatility.

RETURN ASSESSMENTMarket Outperform (Buy): The common stock of the company is expected to outperform a passive index comprised of all thecommon stock of companies within the same sector.Market Perform (Neutral): The common stock of the company is expected to mimic the performance of a passive indexcomprised of all the common stock of companies within the same sector.Market Underperform (Sell): The common stock of the company is expected to underperform a passive index comprised ofall the common stock of companies within the same sector.

Rating and Price Target History for: Auryn Resources, Inc. (AUG-US) as of 09-30-2020

3.00

2.50

2.00

1.50

1.00

0.50Q3 2018 Q1 Q2 Q3 2019 Q1 Q2 Q3 2020 Q1 Q2 Q3

I:BUY:$1.7008/20/18

BUY:$1.6002/14/19

BUY:$1.7004/04/19

BUY:$1.9005/16/19

BUY:$2.1008/08/19

BUY:$2.0010/01/19

BUY:$2.6007/15/20

BUY:$2.8008/10/20

Investment Banking Services include, but are not limited to, acting as a manager/co-manager in the underwriting or placementof securities, acting as financial advisor, and/or providing corporate finance or capital markets-related services to a companyor one of its affiliates or subsidiaries within the past 12 months.

Distribution of Ratings Table as of September 30, 2020IB Service/Past 12 Months

Ratings Count Percent Count PercentBuy 395 85.87% 154 38.99%Neutral 35 7.61% 5 14.29%Sell 0 0.00% 0 0.00%Under Review 30 6.52% 10 33.33%

H.C. Wainwright & Co, LLC (the “Firm”) is a member of FINRA and SIPC and a registered U.S. Broker-Dealer.

I, Heiko F. Ihle, CFA, Tyler Bisset and Marcus Giannini , certify that 1) all of the views expressed in this report accurately reflectmy personal views about any and all subject securities or issuers discussed; and 2) no part of my compensation was, is, orwill be directly or indirectly related to the specific recommendation or views expressed in this research report; and 3) neithermyself nor any members of my household is an officer, director or advisory board member of these companies.

None of the research analysts or the research analyst’s household has a financial interest in the securities of Auryn Resources,Inc. (including, without limitation, any option, right, warrant, future, long or short position).As of August 31, 2020 neither the Firm nor its affiliates beneficially own 1% or more of any class of common equity securitiesof Auryn Resources, Inc..Neither the research analyst nor the Firm knows or has reason to know of any other material conflict of interest at the timeof publication of this research report.

The research analyst principally responsible for preparation of the report does not receive compensation that is based upon anyspecific investment banking services or transaction but is compensated based on factors including total revenue and profitabilityof the Firm, a substantial portion of which is derived from investment banking services.

Auryn Resources, Inc. October 1, 2020

H.C. WAINWRIGHT & CO. EQUITY RESEARCH 3

The Firm or its affiliates did receive compensation from Auryn Resources, Inc. for investment banking services within twelvemonths before, and will seek compensation from the companies mentioned in this report for investment banking services withinthree months following publication of the research report.

H.C. Wainwright & Co., LLC managed or co-managed a public offering of securities for Auryn Resources, Inc. during the past12 months.

The Firm does not make a market in Auryn Resources, Inc. as of the date of this research report.

The securities of the company discussed in this report may be unsuitable for investors depending on their specific investmentobjectives and financial position. Past performance is no guarantee of future results. This report is offered for informationalpurposes only, and does not constitute an offer or solicitation to buy or sell any securities discussed herein in any jurisdictionwhere such would be prohibited. This research report is not intended to provide tax advice or to be used to provide tax advice toany person. Electronic versions of H.C. Wainwright & Co., LLC research reports are made available to all clients simultaneously.No part of this report may be reproduced in any form without the expressed permission of H.C. Wainwright & Co., LLC. Additionalinformation available upon request.H.C. Wainwright & Co., LLC does not provide individually tailored investment advice in research reports. This research report isnot intended to provide personal investment advice and it does not take into account the specific investment objectives, financialsituation and the particular needs of any specific person. Investors should seek financial advice regarding the appropriatenessof investing in financial instruments and implementing investment strategies discussed or recommended in this research report.H.C. Wainwright & Co., LLC’s and its affiliates’ salespeople, traders, and other professionals may provide oral or written marketcommentary or trading strategies that reflect opinions that are contrary to the opinions expressed in this research report.H.C. Wainwright & Co., LLC and its affiliates, officers, directors, and employees, excluding its analysts, will from time to timehave long or short positions in, act as principal in, and buy or sell, the securities or derivatives (including options and warrants)thereof of covered companies referred to in this research report.

The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as beingaccurate and does not purport to be a complete statement or summary of the available data on the company, industry or securitydiscussed in the report. All opinions and estimates included in this report constitute the analyst’s judgment as of the date ofthis report and are subject to change without notice.

Securities and other financial instruments discussed in this research report: may lose value; are not insured by the FederalDeposit Insurance Corporation; and are subject to investment risks, including possible loss of the principal amount invested.

Auryn Resources, Inc. October 1, 2020

H.C. WAINWRIGHT & CO. EQUITY RESEARCH 4