Positive Preliminary Economic Assessment And Updated Mineral Resource For Colombian Projects

VANCOUVER - Soma Gold Corp. announced the completion of an updated independent Mineral Resource Estimate for the Company's El Bagre and Nechí Projects and a positive Preliminary Economic Assessment (PEA) for the development of the Cordero Mine, in Antioquia, Colombia. All values are in Canadian dollars (CAD$) unless otherwise noted. El Bagre Complex consists of three underground mines, two of which, Le Ye and Los Mangos, will be mined out shortly, and Cordero, which is currently under development. Total inclusive Indicated and Inferred Mineral Resources at the Cordero Mine increased significantly by 18% and 1,093% respectively, since December 31, 2018.

Cordero Mine PEA Highlights include robust project economics: Using base-case metal price of US$1,700 per ounce of gold and a CAD/US$ exchange rate of 0.75, the project has a pre-tax NPV of $94.6million, and an after-tax NPV of $55.9 million, both using an 8% discount rate; Average annual gold production over life of mine is estimated at 44,376 ounces per year from 2023 to 2025; The economic analysis in this PEA is based, in part, on Inferred Resources, and is preliminary in nature. Inferred Resources are considered too geologically speculative to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is no certainty that economic forecasts, on which this Preliminary Economic Assessment is based, will be realized.

Production at Cordero is scheduled to ramp up to 680 tpd in 2024, which will allow the Company to restart its previously operating El Limon mill. There is good potential to increase the Mineral Resource and extend the mine life at the Cordero Mine as the deposit is open on strike and at depth.

"We are very pleased with the results of our first updated resource since we acquired the El Bagre Gold Mining Complex (including the Cordero Mine) and the Nechi Project in 2020. Total contained ounces in all categories at Cordero has increased significantly from the previously reported resource, and we anticipate adding additional ounces with future drill programs,” said Javier Cordova, CEO.

"Our development program at the Cordero Mine is well advanced with Cordero supplying the vast majority of the mineralized material for the Company's El Bagre Mill from 2023 onwards as our two legacy and lower-grade mines are phased out. As production at Cordero ramps up to planned levels of 680 tpd, it will also allow us to restart our currently idle El Limon mill. The results of the PEA support the attractive economics of our mining operations."