Lower AISC and continued strong free cash flow underpin solid third quarter financial performance and capital returns

Torex Resources Inc.  (TSX: TXR) (OTCQX: TORXF) reports the Company’s financial and operational results for the three and nine months ended September 30, 2026.

Andrew Snowden, President & CEO of Torex, stated:

“Our third quarter results demonstrate the cash-generating strength of Morelos, with revenue of $555 million and adjusted EBITDA¹ of $344 million. We generated $150 million in quarterly free cash flow¹, bringing the year-to-date total to $402 million. This significant free cash flow generation has enabled us to return $271 million to shareholders year-to-date², while growing our cash balance to $226 million, exceeding our $200 million cash target. Most importantly, we achieved all this safely, with no lost-time injuries for the sixth consecutive quarter.

“All-in sustaining costs¹ decreased 27% quarter-over-quarter to $1,803 per gold equivalent ounce sold, primarily reflecting higher processed grades and increased gold recovery, generating an AISC margin of 58%. Full-year 2026 AISC is trending within our guidance of $2,000 to $2,100 per oz AuEq.

“Looking ahead to the fourth quarter, having produced 329,071 oz AuEq year-to-date, we remain solidly on track to achieve the midpoint of our annual production guidance of 420,000 to 470,000 oz AuEq.³ Media Luna North remains on schedule for first ore before year-end, while encouraging drilling results at Morelos indicate potential to expand our resource base.

“As we continue to pursue opportunities to grow and extend our production profile, our plant debottlenecking project at Morelos provides the ability to increase throughput by 10 to 15% with relatively modest capital investment, providing a near-term, high-return avenue for growth. Implementation of the plant debottlenecking is expected to commence in 2027 with potential benefits accruing in late 2027. A possible further plant expansion will be informed by drilling in the San Miguel Corridor throughout 2027, with a decision targeted for early 2028. At Los Reyes, the prefeasibility study continues to advance, supported by drilling and trade-off studies focused on upgrading resources, de-risking the design, and enhancing project economics.

“Our planned New York Stock Exchange listing represents another step in Torex’s evolution, expanding our market presence to better reflect our scale, diversification and long-term growth ambitions.

“With strong operating performance, exceptional cash generation and continue progress on our growth projects, we are well positioned to finish 2026 on a strong footing and build this momentum in 2027”.

Q3 Highlights

• Safety performance: The Company recorded no lost-time injuries for the sixth consecutive quarter and marked 21 million hours lost-time injury free at the end of September. In October, post quarter end, one lost time injury occurred when an employee suffered a hand injury underground at Media Luna.
• Production: Production of 131,900 gold equivalent ounces (“oz AuEq³“) (YTD – 329,071 oz AuEq³), including 98,685 oz of gold (YTD – 241,610 oz of gold), 614.3 koz of silver (YTD – 1,677.4 koz of silver), and 16.3 mlb of copper (YTD – 45.1 mlb of copper). Mining rates remained strong during the third quarter, averaging 8,244 tpd at Media Luna and 3,055 tpd at ELG Underground. During the quarter, throughput at the processing plant exceeded design levels, averaging 10,798 tpd. The increase in production compared to the preceding quarter reflects higher processed grades as well as an improved gold recovery of 88.2% (85.4% for the second quarter of 2026). Production is tracking to the midpoint of annual gold equivalent guidance of 420,000 to 470,000 oz AuEq³.
• Sales: Gold equivalent ounces sold of 127,395 oz AuEq³ (YTD – 328,968 oz AuEq³) at a quarterly average realized gold price¹ of $4,324 per oz AuEq³ (YTD – $4,533 per oz AuEq³), contributing to revenue of $555.0 million (YTD – $1,501.2 million). Revenue for the quarter includes a net gain of $8.0 million (YTD – net loss of $23.0 million) for price adjustments on provisionally priced concentrate sales (third quarter net gain includes a realized loss of $3.2 million on final sales settlements during the third quarter and an unrealized gain of $11.2 million on provisional sales pending final settlement).
• All-in sustaining costs¹: Quarterly all-in sustaining costs of $1,803 per oz AuEq sold³ (YTD – $2,025 per oz AuEq sold³) and all-in sustaining costs margin¹ of $2,521 per oz AuEq sold³ (YTD – $2,508 per oz AuEq sold³), implying an all-in sustaining costs margin¹ of 58% (YTD – 55%). Cost of sales was $245.0 million or $1,923 per oz AuEq sold³ in the quarter (YTD – $700.2 million or $2,128 per oz AuEq sold³). Torex is on track to achieve full year all-in sustaining costs guidance of $2,000 to $2,100 per oz AuEq³.
• Strong profitability and adjusted EBITDA¹: Reported quarterly net income of $155.2 million (YTD – $476.5 million), or $1.68 per share (basic) (YTD – $5.08) and adjusted net earnings¹ of $180.1 million (YTD – $464.7 million), or $1.95 per share (basic) (YTD – $4.96). Generated EBITDA of $333.3 million (YTD – $900.5 million) and adjusted EBITDA of $344.2 million (YTD – $906.3 million).
• Cash flow generation: Net cash generated from operating activities totalled $231.0 million (YTD – $608.4 million) and $297.8 million (YTD – $637.1 million) before changes in non-cash operating working capital. Net cash generated from operating activities included income taxes paid of $53.7 million (YTD – $246.9 million). Free cash flow² of $150.4 million (YTD – $401.9 million) is net of cash outlays for capital expenditures, lease payments, and interest.
• Strong financial liquidity: The quarter closed with $562.8 million in available liquidity¹, including $225.9 million in cash and $336.9 million available on the $350.0 million credit facility, net of letters of credit outstanding of $13.1 million.
• Media Luna North Project: During the third quarter of 2026, $19.8 million (YTD – $46.5 million) of non-sustaining capital expenditures were incurred relating to the development of Media Luna North. Development of the main access ramp and haulage drift continue to track well. First production at Media Luna North remains on track for late 2026.
• Exploration and drilling activities⁴: In September, the Company provided an update on results from its drilling and exploration programs within the ELG Underground and Media Luna Cluster. Results to date support the Company’s strategy to grow reserves and resources, extend mine life, and enhance the long-term production profile at Morelos:
  • ELG Underground: Drilling continues to show promising results that highlight the potential to offset reserve depletion and add to the resource inventory with our year-end reserve and resource update expected in March 2027.
  • Media Luna Cluster: Drilling at the San Miguel corridor, a new area of interest which spans from Media Luna West to southeast of the Media Luna mine, has shown strong potential for the entire corridor to be mineralized which could considerably add to the overall Morelos resource inventory. At the Media Luna mine, drilling to support the potential conversion of Inferred Resources to the Indicated category is ongoing, while at Media Luna North, drilling continues to confirm the geological model and de-risk stopes planned for the first year of production when the project comes online later this year.
  • Regional exploration: The regional drilling programs at both Atzcala and El Naranjo are well underway. Initial results suggest epithermal mineralized systems lie within both target areas, with the presence of shallow, oxidized, epithermal-style mineralization, which is a positive early indication for continued exploration efforts at these sites.
• Return of capital to shareholders²: In May, the Company announced an enhanced return of capital program targeting the return of $350.0 million to shareholders during 2026 through a combination of share purchases and dividends. As at September 30, 2026, the Company has returned $270.8 million, representing approximately 77% of the targeted threshold for 2026.
• Dividends: During the third quarter of 2026, the Company paid dividends of $10.8 million (YTD – $32.0 million). On November 4, 2026, the Company declared a quarterly dividend of C$0.16 per common share (“Torex Share”), payable on December 3, 2026, to shareholders of record on November 19, 2026.
• Share Repurchases: During the third quarter of 2026, the Company repurchased 1,755,843 Torex Shares for $83.8 million (C$117.4 million) at an average price per share of $47.74 (C$66.84) (YTD – 4,888,626 Torex Shares for $238.8 million or C$330.1 million at an average price of $48.85 or C$67.52). The Company plans to renew the current Normal Course Issuer Bid (“NCIB”) prior to expiration on November 20, 2026.
• Corporate name and ticker change: At the Company’s Annual and Special Meeting of Shareholders on June 17, 2026, Torex’s shareholders approved a change of the Company’s corporate name from Torex Gold Resources Inc. to Torex Resources Inc., which became effective October 28, 2026. In addition, as of November 3, 2026, Torex’s ticker on the Toronto Stock Exchange changed from “TXG” to “TXR”.
• Board of Directors changes⁵: In October, the Company announced the addition of Mr. Lee Hodgkinson to its Board of Directors (“the Board”) effective November 1, 2026, along with the recent departure of Mr. Rodrigo Sandoval, who recently assumed an executive role elsewhere. Mr. Hodgkinson brings more than three decades of experience advising boards and executive teams in the mining sector.
• Planned U.S. Listing: As disclosed in the Company’s MD&A for the interim period ended June 30, 2026, Torex is pursuing a secondary listing of its common shares on the New York Stock Exchange (“NYSE”). The Company anticipates a secondary listing of its shares on the NYSE will provide greater capital market access and exposure, improved trading liquidity, and expanded research coverage. In September 2026, the Company received clearance from the NYSE to apply to list its common shares on the NYSE. The Company has now filed its listing application and is working towards completing a formal listing as early as mid-November 2026. The Company expects to provide a further update to the market once the necessary conditions to proceed with listing have been satisfied. However, there can be no assurance that approval of the proposed listing will be granted by the NYSE or the expected listing timeline will be realized.

Footnotes

1. These measures are non-GAAP financial measures with no standardized meaning under IFRS and might not be comparable to similar financial measures disclosed by other issuers. Refer to “Non-GAAP Financial Performance Measures” for further information and a detailed reconciliation to the comparable IFRS measures.
2. For more information on the Company’s return of capital program, see the Company’s news release titled “Torex Gold Reports Enhanced Return of Capital Program” issued on May 6, 2026, and filed on SEDAR+ at www.sedarplus.ca and on the Company’s website at www.torex.com.
3. Gold equivalent ounces produced and sold include production and sales of silver (Ag) and copper (Cu) converted to a gold equivalent based on a ratio of the average market prices for each commodity sold in the period. For the three months ended September 30, 2026, market prices averaged $4,262/oz gold (Au), $62.59/oz Ag, and $6.40/lb Cu, and AuEq (oz) = Au (oz) + 1,000 * (62.59 / 4,262) x Ag (koz) + 1,000,000 x (6.40 / 4,262) x Cu (mlb). For the nine months ended September 30, 2026, market prices averaged $4,545/oz Au, $73.24/oz Ag, and $6.09/lb Cu, and AuEq (oz) = Au (oz) + 1,000 * (73.24 / 4,545) x Ag (koz) + 1,000,000 x (6.09 / 4,545) x Cu (mlb).
4. For more information on the Morelos exploration and drilling results, see the Company’s news release titled “Torex Gold Provides Q3 2026 Morelos Drilling & Exploration Update” issued on September 24, 2026, and filed on SEDAR+ at www.sedarplus.ca and on the Company’s website at www.torexgold.com.
5. For more information on the Board of Director changes, see the Company’s new release titled “Torex Gold Welcomes Lee Hodgkinson to Its Board of Directors” Issued on October 20, 2026, and filed on SEDAR+ at www.sedarplus.ca and on the Company’s website at www.torexgold.com.

Table 1: Operating and Financial Highlights

1. On a 12-month rolling basis, per million hours worked.
2. Gold equivalent ounces produced and sold include production of silver and copper converted to a gold equivalent based on a ratio of the average market prices for each commodity sold in the period. Refer to “Gold Equivalent Reporting” for the relevant average market prices by commodity.
3. Total cash costs, all-in sustaining costs, average realized gold price, adjusted net earnings, adjusted net earnings per share, EBITDA, adjusted EBITDA, free cash flow, net cash (debt) and available liquidity are non-GAAP financial measures with no standardized meaning under IFRS and might not be comparable to similar financial measures disclosed by other issuers. Refer to “Non-GAAP Financial Performance Measures” for further information and a detailed reconciliation to the comparable IFRS measures.

Table 2: Reconciliation of Total Cash Costs and All-in Sustaining Costs to Production Costs and Royalties

7

13

1. Includes provisional price adjustments on sales of copper concentrate and precipitate.
2. This amount excludes a loss of $4.8 million, gain of $0.8 million and loss of $10.7 million for the three months ended September 30, 2026, June 30, 2026, and September 30, 2025, respectively, and a loss of $5.2 million and loss of $24.5 million for the nine months ended September 30, 2026 and September 30, 2025, respectively, in relation to the remeasurement of share-based payments. This amount also excludes corporate depreciation and amortization expenses totalling $nil, $nil and $0.1 million for the three months ended September 30, 2026, June 30, 2026, and September 30, 2025, respectively, $0.1 million and $0.2 million for the nine months ended September 30, 2026 and September 30, 2025, respectively, within general and administrative costs. Included in general and administrative costs is share-based compensation expense in the amount of $2.1 million or $22/oz ($16/oz AuEq) for the three months ended September 30, 2026, $2.0 million or $29/oz ($22/oz AuEq) for the three months ended June 30, 2026, $2.0 million or $21/oz ($17/oz AuEq) for the three months ended September 30, 2025, $6.4 million or $26/oz ($19/oz AuEq) for the nine months ended September 30, 2026 and $6.1 million or $28/oz ($24/oz AuEq) for the nine months ended September 30, 2025.
3. Sustaining capital expenditures includes lease payments (principal and interest) of $8.8 million, $7.8 million and $7.1 million for the three months ended September 30, 2026, June 30, 2026, and September 30, 2025, respectively, and $24.3 million and $12.7 million for the nine months ended September 30, 2026 and September 30, 2025, respectively.
4. Gold equivalent ounces produced and sold include production of silver and copper converted to a gold equivalent based on a ratio of the average market prices for each commodity sold in the period. Refer to “Gold Equivalent Reporting” for the relevant average market prices by commodity.

Table 3. Reconciliation of Sustaining and Non-Sustaining Capital Expenditures to Additions to Property, Plant and Equipment

1. Non-sustaining capital expenditures includes lease payments (principal and interest) of $nil, $nil and $nil for the three months ended September 30, 2026,
   June 30, 2026, and September 30, 2025, respectively, and $nil and $5.1 million for the nine months ended September 30, 2026 and September 30, 2025, respectively.
2. The amount of cash expended on additions to property, plant and equipment in the period as reported in the Condensed Consolidated Interim Statements of Cash Flows.

Table 4. Reconciliation of Average Realized Gold Price to Revenue

1. Includes provisional price adjustments on sales of copper concentrate and precipitate.
2. Gold equivalent ounces produced and sold include production of silver and copper converted to a gold equivalent based on a ratio of the average market prices for each commodity sold in the period. Refer to “Gold Equivalent Reporting” for the relevant average market prices by commodity.

Table 5. Reconciliation of All-in Sustaining Costs Margin to Revenue

1. Includes provisional price adjustments on sales of copper concentrate and precipitate.
2. Gold equivalent ounces produced and sold include production of silver and copper converted to a gold equivalent based on a ratio of the average market prices for each commodity sold in the period. Refer to “Gold Equivalent Reporting” for the relevant average market prices by commodity.

Table 6: Reconciliation of Adjusted Net Earnings to Net Income

7

5

Table 7: Reconciliation of EBITDA and Adjusted EBITDA to Net Income

1. Includes depreciation and amortization included in cost of sales, general and administrative expenses and exploration and evaluation expenses.

Table 8: Reconciliation of Free Cash Flow to Net Cash Generated from Operating Activities

1. The amount of cash expended on additions to property, plant and equipment in the period as reported on the Condensed Consolidated Interim Statements of Cash Flows.
2. Included in investing activities as reported on the Condensed Consolidated Interim Statements of Cash Flows.
3. Including borrowing costs capitalized to property, plant and equipment.

Table 9: Reconciliation of Net Cash to Cash and Cash Equivalents

Table 10: Reconciliation of Available Liquidity to Cash and Cash Equivalents

Table 11: Reconciliation of Unit Cost Measures to Production Costs

1. Media Luna underground tonnes mined and mining costs are reported post the declaration of commercial production on May 1, 2025.

About Torex Resources Inc.

Torex Resources Inc. is a Canadian mining company engaged in the exploration, development, and production of gold, silver and copper from its flagship Morelos Complex in Guerrero, Mexico. The Company also owns the Los Reyes gold-silver project in Sinaloa, Mexico and a portfolio of early-stage exploration projects, including Batopilas and Guigui in Chihuahua, Mexico, La Gloria in Sonora, Mexico, and Medicine Springs in Nevada, USA, as well as an option to acquire the Gryphon Summit project in Nevada, USA.

The Company’s key strategic objectives are: optimize Morelos production and costs; disciplined growth and capital allocation; grow reserves and resources; project delivery excellence; retain and attract best industry talent and other exploration projects; and be an industry leader in responsible mining. In addition to realizing the full potential of the Morelos Property, the Company continues to seek opportunities to acquire assets that enable diversification and deliver value to shareholders.