The value and eligibility of each NatGold Token are determined through a standardized, transparent framework that ensures all tokens are backed by independently verified gold resources and priced according to consistent, data-driven criteria. This approach reflects NatGold’s commitment to integrity, traceability, and uniformity across its digital mining ecosystem.

Eligibility: What qualifies a gold deposit for tokenization?

To qualify as a Certified NatGold Resource, a deposit must meet strict technical and legal criteria:

• It must be supported by a JORC, NI 43-101, or S-K 1300 compliant technical report, reviewed by a Qualified or Competent Person.
• The titleholder must pass KYC and AML screening.
• The mineral rights must be perpetual, unencumbered, and apply exclusively to subsurface gold—not under active exploration or mining.

Once approved, a standardized digital mining cutoff grade of 0.10 g/t is applied to the report to define the portion of the resource eligible for tokenization. This cutoff is fixed and non-variable, unlike in traditional mining, where grades can be adjusted for economic feasibility. This fixed standard ensures consistency and prevents the manipulation of reported volumes in response to market conditions.

Conversion: How do resources become NatGold Tokens?

NatGold applies tokenization ratios based on the geological confidence level of the gold resource:

• Measured Resources: These are the most reliable resources and are tokenized at 80%, meaning one troy ounce of measured resources is represented by 0.80 of a NatGold Token.
• Indicated Resources: These resources are less certain than measured resources, resulting in a 40% representation—each troy ounce of indicated resources equals 0.40 of a NatGold Token.
• Inferred Resources: 0 Being the least certain, inferred resources are tokenized at 20%, with one troy ounce represented by 0.20 of a NatGold Token.
  (Note: deposits containing only Inferred resources are not eligible for tokenization.)

These ratios are embedded in NatGold’s smart contracts and reflect industry protocols and a data-derived analysis of resource reliability. By applying a consistent, risk-adjusted weighting to each resource category, NatGold ensures all tokens are issued uniformly and transparently, regardless of the project location or operator.

Each NatGold Token is denominated in troy ounces, the globally recognized unit for gold pricing. This allows for intuitive comparisons with spot market prices and enables investors to understand tokenized value in familiar terms.

Valuation: How is token value established?

NatGold’s Real-Time AISC Index (All-In Sustaining Cost) is a live benchmark that reflects the global average cost of producing a troy ounce of gold. By subtracting this value from the current COMEX spot price, NatGold calculates the Baseline Intrinsic Value—the estimated in-ground economic margin per ounce of gold.

This margin is applied to the verified volume of Certified NatGold Resources to determine the total tokenized value. However, once a NatGold Token is minted, it transcends traditional gold valuation. It becomes a scarce, blockchain-native, environmentally aligned asset—designed for a digital economy where transparency, sustainability, and non-extractive monetization are increasingly valued.