Minto Metals Corp. (TSX-V:MNTO) is pleased to announce the Company’s production results for the 12-month period ended December 31^st, 2022 from the Minto Mine located within the Selkirk First Nation’s Territory in central Yukon, Canada. Payable copper production for 2022 was 28.9 million pounds, which was in line with expected production of between 28.0 – 31.0 million pounds, as announced in the Company’s press release dated January 7, 2022.

2022 Full Year Highlights

• Minto completed 2022 with consolidated production totaling 28.9 million pounds of copper, a 12.6% increase over 2021.
• Copper sales increased in the first, second and third quarters of 2022, compared to the same periods in 2021.
• The Company navigated through a significant water event during spring freshet, which was caused by a snow pack that was 417% above normal, with no environmental impact. More than 1,400,000m³ of water was discharged from site, which was more than double the volume discharged over the last 7 years combined:
  • Water Treatment Plant enhancements were made, creating the ability to discharge water through the winter months for the first time in Minto’s history; and
  • Operations at the mill were suspended for a total of 8 weeks due to this water event, and tonnes milled were lower than expected as a result.
• New tele-remote scooptram (controlled from surface) began operating underground in between shift changes moving ore/waste.
• Equipment condition monitoring was operational and communicates in real-time using new fiber network installed underground, key operating data/information from onboard the equipment.
• 2 new ore lenses were identified, with plans to build on these in 2023.

1. Under the Wheaton Precious Metals agreement, the Company receives 65% of the adjusted Gold price up to a maximum of US$1,250 for 2 years and then 50% up to a maximum of US$1,000 thereafter (12 Months remaining on initial term). Silver receipts are at the lesser of the prevailing market price and US $4.35/oz with 1% annual escalator.

“I am pleased to report we completed 2022 achieving both our safety and production targets. Minto delivered within our market guidance by producing 28.9 million pounds of copper, a 13% increase over the previous year. 2022 presented challenges to all copper producers as our metal had a bit of a wild ride. Copper went from a high of US$4.92/lb in Q1 and then quickly declined through Q2 to end up at a low of US$3.23/lb early in Q3. In addition, there were and still are many challenges related to the ongoing supply chain impacts of COVID which is seen across all businesses in the world today,” commented Chris Stewart, President and Chief Executive Officer of Minto.

“In addition, and specific to our area of the Yukon, we had a record snow survey measuring 417% above normal coming out of the 2021/2022 winter which resulted in a record spring freshet event. This forced us to temporarily suspend our milling operations several times, for a total of 8 weeks, to allow us time to treat the significant volume of incoming water as we needed to ensure we discharged safely to the environment. The dedication and commitment of our employees, contractors and consultants allowed us to safely reach our production goal despite all these challenges. I would like to thank everyone for their hard work throughout this past year.”

“In 2023 we will be investing in our Water Treatment Plant to double its capacity so that we can avoid temporarily shutting down our milling operations due to water issues going forward. We will also be continuing our exploration program, building on the positive results of our 2022 and 2021 drill programs where new mining lenses and potential extensions to known ore lenses were identified. Minto also plans for more robust investor relations initiatives in 2023 and more engagement within the investment community throughout the year. We look forward to communicating our activities to the market regularly, and engaging with current and potential investors, as well as the analyst community,” concluded Mr. Stewart.

Changes to Board of Directors

The Company also announces that Edie Hofmeister will be stepping down as a Director, and Greg McKnight will be stepping down as a Director and Chairman of Minto’s Board of Directors. Ms. Hofmeister’s departure is effective February 28, 2023 and Mr. McKnight’s departure is effective March 15, 2023.

Replacing Mr. McKnight as Chairman of the Board is Joe Phillips who has served as a Director on Minto’s Board since December 2021. Mr. Phillips has over 45 years of experience in the construction, commissioning and operation of mining projects in 13 countries in 5 continents. Over his career he has directed the construction, commissioning and operation of 11 plants and mining operations, all of which met or exceeded their designed capacities.

Minto wishes to thank Greg and Edie for their service and commitment to Minto Metals Corp. An executive search is underway, and a notice of appointment will be announced as soon as qualified replacements are secured.

2023 Outlook Guidance

Minto is pleased to announce guidance for 2023. The Company anticipates that 2023 will be a transformational year at our operations, as we continue to ramp up our ore production. We are committed to a cost control strategy while improving our mine and milling operations. Capital investment is required for the development of our assets and we are working closely with our partners at the Selkirk First Nation and the Yukon Government to facilitate the permits needed for this.  Our goal is to deliver a high-quality copper concentrate while protecting the Selkirk First Nation’s land that we operate on.

The following table summarises the production, cost and capital expenditure outlook for 2023. The plan is to operate the mill at an average throughput of 3900 tonnes/day as the ore production continues to climb closer to our mill’s ultimate permitted capacity of 4,200 tonnes/day.

Qualified Person

The technical contents of this news release have been reviewed and approved by Chris Stewart, P.Eng., President & CEO of Minto and a Qualified Person as defined by Canadian Securities Administrators National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

Non-GAAP Financial Measure

C1 Cash Costs  

C1 cash costs consist of production and selling costs net of by-product credits and is provided in this news release as it is a key measure that management uses to monitor and evaluate the performance of the Company’s mining operation. This measure does not have a standard meaning within GAAP and, therefore amounts presented may not be comparable to similar data presented by other mining companies. This performance measure should not be considered in isolation as a substitute for measures of performance in accordance with GAAP.

About Minto Metals Corp.

Minto operates the producing Minto mine located within the traditional territory of the Selkirk First Nation in the Minto Copper Belt of the Yukon. The Minto mine has been in operation since 2007 with underground mining commencing in 2014. Since 2007, approximately 500Mlbs of copper have been produced from the Minto mine. The current mine operations are based on underground mining, a process plant to produce high-grade copper, gold, and silver concentrate, and all supporting infrastructure associated with a remote location in Yukon. The Minto property is located west of the Yukon River, about 20 km WNW of Minto Landing, the latter on the east side of the river, and approximately 250 road-km north of the City of Whitehorse, the capital city of Yukon.

Minto Metals Corp.  is pleased to announce the Company’s production results for the 12-month period ended December 31^st, 2022 from the Minto Mine located within the Selkirk First Nation’s Territory in central Yukon, Canada. Payable copper production for 2022 was 28.9 million pounds, which was in line with expected production of between 28.0 – 31.0 million pounds, as announced in the Company’s press release dated January 7, 2022.

2022 Full Year Highlights

• Minto completed 2022 with consolidated production totaling 28.9 million pounds of copper, a 12.6% increase over 2021.
• Copper sales increased in the first, second and third quarters of 2022, compared to the same periods in 2021.
• The Company navigated through a significant water event during spring freshet, which was caused by a snow pack that was 417% above normal, with no environmental impact. More than 1,400,000m³ of water was discharged from site, which was more than double the volume discharged over the last 7 years combined:
  • Water Treatment Plant enhancements were made, creating the ability to discharge water through the winter months for the first time in Minto’s history; and
  • Operations at the mill were suspended for a total of 8 weeks due to this water event, and tonnes milled were lower than expected as a result.
• New tele-remote scooptram (controlled from surface) began operating underground in between shift changes moving ore/waste.
• Equipment condition monitoring was operational and communicates in real-time using new fiber network installed underground, key operating data/information from onboard the equipment.
• 2 new ore lenses were identified, with plans to build on these in 2023.

1. Under the Wheaton Precious Metals agreement, the Company receives 65% of the adjusted Gold price up to a maximum of US$1,250 for 2 years and then 50% up to a maximum of US$1,000 thereafter (12 Months remaining on initial term). Silver receipts are at the lesser of the prevailing market price and US $4.35/oz with 1% annual escalator.

“I am pleased to report we completed 2022 achieving both our safety and production targets. Minto delivered within our market guidance by producing 28.9 million pounds of copper, a 13% increase over the previous year. 2022 presented challenges to all copper producers as our metal had a bit of a wild ride. Copper went from a high of US$4.92/lb in Q1 and then quickly declined through Q2 to end up at a low of US$3.23/lb early in Q3. In addition, there were and still are many challenges related to the ongoing supply chain impacts of COVID which is seen across all businesses in the world today,” commented Chris Stewart, President and Chief Executive Officer of Minto.

“In addition, and specific to our area of the Yukon, we had a record snow survey measuring 417% above normal coming out of the 2021/2022 winter which resulted in a record spring freshet event. This forced us to temporarily suspend our milling operations several times, for a total of 8 weeks, to allow us time to treat the significant volume of incoming water as we needed to ensure we discharged safely to the environment. The dedication and commitment of our employees, contractors and consultants allowed us to safely reach our production goal despite all these challenges. I would like to thank everyone for their hard work throughout this past year.”

“In 2023 we will be investing in our Water Treatment Plant to double its capacity so that we can avoid temporarily shutting down our milling operations due to water issues going forward. We will also be continuing our exploration program, building on the positive results of our 2022 and 2021 drill programs where new mining lenses and potential extensions to known ore lenses were identified. Minto also plans for more robust investor relations initiatives in 2023 and more engagement within the investment community throughout the year. We look forward to communicating our activities to the market regularly, and engaging with current and potential investors, as well as the analyst community,” concluded Mr. Stewart.

Changes to Board of Directors

The Company also announces that Edie Hofmeister will be stepping down as a Director, and Greg McKnight will be stepping down as a Director and Chairman of Minto’s Board of Directors. Ms. Hofmeister’s departure is effective February 28, 2023 and Mr. McKnight’s departure is effective March 15, 2023.

Replacing Mr. McKnight as Chairman of the Board is Joe Phillips who has served as a Director on Minto’s Board since December 2021. Mr. Phillips has over 45 years of experience in the construction, commissioning and operation of mining projects in 13 countries in 5 continents. Over his career he has directed the construction, commissioning and operation of 11 plants and mining operations, all of which met or exceeded their designed capacities.

Minto wishes to thank Greg and Edie for their service and commitment to Minto Metals Corp. An executive search is underway, and a notice of appointment will be announced as soon as qualified replacements are secured.

2023 Outlook Guidance

Minto is pleased to announce guidance for 2023. The Company anticipates that 2023 will be a transformational year at our operations, as we continue to ramp up our ore production. We are committed to a cost control strategy while improving our mine and milling operations. Capital investment is required for the development of our assets and we are working closely with our partners at the Selkirk First Nation and the Yukon Government to facilitate the permits needed for this.  Our goal is to deliver a high-quality copper concentrate while protecting the Selkirk First Nation’s land that we operate on.

The following table summarises the production, cost and capital expenditure outlook for 2023. The plan is to operate the mill at an average throughput of 3900 tonnes/day as the ore production continues to climb closer to our mill’s ultimate permitted capacity of 4,200 tonnes/day.

Qualified Person

The technical contents of this news release have been reviewed and approved by Chris Stewart, P.Eng., President & CEO of Minto and a Qualified Person as defined by Canadian Securities Administrators National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

Non-GAAP Financial Measure

C1 Cash Costs  

C1 cash costs consist of production and selling costs net of by-product credits and is provided in this news release as it is a key measure that management uses to monitor and evaluate the performance of the Company’s mining operation. This measure does not have a standard meaning within GAAP and, therefore amounts presented may not be comparable to similar data presented by other mining companies. This performance measure should not be considered in isolation as a substitute for measures of performance in accordance with GAAP.

About Minto Metals Corp.

Minto operates the producing Minto mine located within the traditional territory of the Selkirk First Nation in the Minto Copper Belt of the Yukon. The Minto mine has been in operation since 2007 with underground mining commencing in 2014. Since 2007, approximately 500Mlbs of copper have been produced from the Minto mine. The current mine operations are based on underground mining, a process plant to produce high-grade copper, gold, and silver concentrate, and all supporting infrastructure associated with a remote location in Yukon. The Minto property is located west of the Yukon River, about 20 km WNW of Minto Landing, the latter on the east side of the river, and approximately 250 road-km north of the City of Whitehorse, the capital city of Yukon.