Aris Gold Corporation (TSX: ARIS) (OTCQX: ALLXF) reports financial and operating results for the three and six months ended June 30, 2022. All amounts are in US dollars, unless otherwise indicated.

Aris Gold CEO Neil Woodyer stated: “During Q2 our team became the operator and completed the acquisition of a 20% interest in the Soto Norte project, with the option to increase to 50% ownership. This marked a big step forward for the company, which we quickly followed with the announcement to combine with GCM Mining to create a new, stronger Aris Mining. On completion of this transaction our portfolio of assets will include two producing mines, two development projects, and an advanced exploration project. We are delivering on our strategy to create a leading Americas focused gold company.”

Q2 2022 Highlights

On April 12, 2022, Aris Gold completed the acquisition of a 20% interest in the Soto Norte gold project in Colombia, with the option to increase to a 50% interest, and became operator. A feasibility study on the Soto Norte project estimates steady-state production of 450,000 ounces of gold per year at life-of-mine all-in sustaining costs (AISC) of $471 per ounce of gold. Concurrently with the acquisition, Aris Gold amended its $110 million precious metals stream at the Marmato mine with Wheaton Precious Metals International to increase the total funding amount by $65 million to $175 million.

Also in Q2 2022, Aris Gold advanced construction of the Marmato Lower Mine, including advancing the ventilation decline, furthering the land acquisition process, finalizing updates to the Environmental Management Plan, continuing the geotechnical and environmental studies for advancement of the Lower Mine decline, progressing construction of the camp and access road, and refining the engineering design, cost and completion schedule.

Optimization work at the Marmato Upper Mine continued to advance in Q2 2022, including relocating the gravity concentrator to the primary milling circuit to improve recoveries, implementing a new strategy to optimize the ventilation system and further improve conditions underground, and modifying the mechanized mining methods to decrease stope widths and further reduce dilution.

Subsequent to Q2 2022, on July 25, 2022 Aris Gold announced an agreement with GCM Mining to combine and create a gold producer with increased diversification of operating and project development risk, an improved capital markets profile, and reduced overhead costs. GCM Mining and Aris Gold shareholder meetings to approve the transaction are planned for September 19, 2022, subject to receipt of shareholder and regulatory approvals and satisfaction of customary closing conditions. Completion of the transaction and the launch of the new Aris Mining Corporation is expected to occur promptly thereafter.

Q2 2022 Financial and Operating Highlights

Gold production from the Marmato Upper Mine in Q2 2022 increased year-over-year by 24% to 7,411 ounces, driven by a 13% increase in throughput and a 12% increase in grade compared to Q2 2021. These increases in both volumes mined and grade realized demonstrate the steady improvements of the Upper Mine optimization program. Revenue increased by 29% for Q2 2022 compared to Q2 2021, primarily driven by the increase in gold sold.

Financial and operating highlights

Aris Gold’s Q2 2022 financial statements and related MD&A are available on SEDAR and in the Investors section of Aris Gold’s website here.

About Aris Gold

Aris Gold is a Canadian mining company listed on the TSX and on the OTCQX. The Company is led by an executive team with a demonstrated track record of creating value through building globally relevant gold mining companies. In Colombia, Aris Gold operates the 100%-owned Marmato mine, and is the operator and 20% owner of the Soto Norte development project with an option to become 50% owner. Aris Gold also owns the Juby project, an advanced exploration stage gold project in the Abitibi greenstone belt of Ontario, Canada. In July 2022, Aris Gold entered into an agreement to combine with GCM Mining, which will add the Segovia operations, also in Colombia, and the Toroparu development project in Guyana. The transaction with GCM Mining is expected to close in mid-September 2022 following receipt of regulatory approvals and satisfaction of customary closing conditions. Aris Gold plans to pursue additional acquisition and growth opportunities to unlock value creation from scale and diversification.