Nechi Alluvial Property Above Production Guidance

MEDELLIN, COLOMBIA - Mineros S.A., President and CEO, Andrés Restrepo, said, "I am pleased to report that the Company has had another strong quarter with respect to operational results, exceeding the higher end of the production guidance range. In the fourth quarter of 2022, Mineros produced 72,568 ounces of gold, an 11% increase from the same quarter in 2021. Along with increased production, the Company has seen reductions in both the all-in sustaining cost per ounce of gold sold and the cash cost per ounce of gold sold compared to the same period in 2021. Net profit for the year was mainly lower as a result of the $36,542 impairment of the Gualcamayo Property."

Annual production of 92,385 ounces of gold from the Nechi Alluvial Property in Colombia was slightly above 2022 guidance and 26% above 2021 production. The increase in production in 2022 relative to the previous year is a result of higher operational efficiencies, the receipt of environmental permits that were delayed in 2021, and additional gold production from our artisanal mining formalization program.

In Nicaragua, total combined annual production of 132,520 ounces of gold also exceeded our 2022 guidance and was 4% higher than 2021 annual production. Gold production from the Panama and Pioneer mines increased significantly after the resolution of supply chain constraints during 2021.

Annual production of 62,247 ounces of gold from the Gualcamayo Property in Argentina was near the midpoint of guidance and 1% higher than in 2021.

The Company recorded an impairment charge on non-current assets of $36,542 (2021: $13,586) in respect of the Gualcamayo Mine. The Company performed a review for indicators of impairment at each of the cash generating units (CGUs) and evaluated key assumptions such as significant reviews to the mining plan including current estimates of recoverable mineral reserves and resources, recent operating results, future expected production based on the reserves and appropriate discount rates, which led to an indicator for impairment of the Gualcamayo Mine. This impairment charge does not affect the cash position of the Company.

The Company previously announced an initial Mineral Resource estimate for the Luna Roja Deposit, which included 1.164 million tonnes of Indicated Mineral Resources averaging 2.46 grams of gold per tonne ("g/t Au"), for approximately 92,000 ounces of gold and 0.504 million tonnes of Inferred Mineral Resources averaging 2.31 g/t Au, for approximately 37,000 ounces of gold. The initial Mineral Resource estimate assumes both open pit and underground mining and extends from surface to a depth of 200 meters.

Last May, a storm with unusually heavy rains and strong winds hit the area where the Nechi Alluvial Property is located and overturned the Llanuras Plant, a floating beneficiation plant connected to the Llanuras suction dredge. Immediately following the accident, the Company's emergency protocols were activated, which included a rescue operation followed by a coordinated search and subsequent recovery operation. Investigations into this incident by the relevant Colombian authorities are mostly in their final stage but the Company has not yet received the final results of these investigations.  Investigations by independent investigators hired by the Company have concluded without any material findings and the Company has made some incremental adjustments to continue enhancing security at its operations. Notwithstanding that the Company was not able to recover or repair the Llanuras Plant and an impairment was recognized and has been able to adjust its production plan to compensate for the lost production resulting from the incident.