Filo Mining Corp. (TSX: FIL) (Nasdaq First North Growth Market: FIL) (OTCQX: FLMMF) announces its results for the three and nine months ended September 30, 2021.

HIGHLIGHTS AND OUTLOOK

Filo Mining Launches Most Ambitious Drill Campaign to Date Following Successful 2020/2021 Exploration Program

Jamie Beck, President & CEO, commented, “We are now into our next phase of drilling at Filo del Sol, and with the addition of two drill rigs next week, we will have a total of five rigs turning on site. The initial three holes are planned 50m step-outs from hole FSDH041 and are intended to follow up on the high-grade mineralization intersected in our last program.   The deepest of these holes is currently at 953m; depending on final hole depth, drill productivity, and assay turnaround time, initial results could be available prior to year-end.  We plan to ramp up to seven rigs early in the new year, and anticipate continuous, year-round operations throughout 2022.

Our last program successfully showcased the Filo del Sol project as one of the most important copper-gold-silver discoveries in recent years, and we are convinced it has potential to grow even bigger and better.  Amidst a backdrop of strong commodity prices and a lack of new copper discoveries, it will be an exciting program for Filo Mining’s stakeholders as we continue to explore this remarkable deposit.”

In August 2021, following the completion of camp winterization efforts to prepare the project and its facilities for year-round operation, the Company successfully commenced its 2021/2022 drill campaign at the Filo del Sol project (“Filo del Sol” or the “Filo del Sol Project”), marking the earliest launch to a drill campaign in the project’s history.

This drill program will be a combination of resource definition drilling and step-out holes, with hole locations to be guided by drill results, surface mapping, and geophysical interpretations.  Initial drilling will target the area between FSDH025 in the south and FSDH037 in the north, with priority set on following up on the high-grade intersections drilled in FSDH041. Step-out drilling will continue to try to find the edges of the deposit, which remains open to the north, south, east and at depth.  With seven rigs active on the project throughout 2022, this will be the Company’s most ambitious drill campaign ever, enabling it to rapidly define the deposit as it advances key exploration efforts.

The current drill program follows the exceptional exploration successes achieved by the Company last season, which featured the discovery of a significant new zone of high-grade copper, gold and silver mineralization along with the substantial extension of the known mineralization. During the third quarter of 2021, the Company received and reported on final assays from the 2020/2021 drill campaign, highlights of which included:

• Hole FSDH046, which confirmed strong mineralization to over 1,400m below surface and returned the longest mineralized intersection at the project to date being 1,378m at 0.71% CuEq (0.45% Cu; 0.29g/t Au; 6.1g/t Ag) from a depth of 77.7m, including 676m at 0.92% CuEq (0.57% Cu; 0.34g/t Au; 11.3g/t Ag) from a depth of 380m;
• Hole FSDH049, which returned 425.3m at 1.55% CuEq (0.42% Cu; 0.44g/t Au; 91.5g/t Ag) and intersected the highest-grade silver intersection on the project to date, with 4m at 5,045.0 g/t Ag from a depth of 236m contained within a broader silver interval of 56m at 629.1 g/t Ag from a depth of 228m; and
• Hole FSDH051, which was the most northerly hole drilled into the deposit to date, returned 344.0m at 0.50% CuEq (0.26% Cu; 0.21g/t Au; 9.4g/t Ag) from 246m, extending the mineralized zone by 750m to the north, bringing the north-south strike of continuous mineralization to 4,500m.

FINANCIAL RESULTS

(In thousands of Canadian dollars, except per share amounts)

SELECTED FINANCIAL INFORMATION

(In thousands of Canadian dollars)

The Company incurred a net loss of $9.1 million during the three months ended September 30, 2021, comprised primarily of $8.7 million in exploration and project investigation costs and $3.1 million in G&A costs, which were partially offset by a gain of approximately $2.5 million resulting from the use of marketable securities for the purposes of facilitating intragroup funding transfers (a “Funding Gain”). For the 2020 comparative period, the Company reported a net loss of $2.5 million, consisting mainly of $1.0 million in exploration and project investigation costs and $1.7 million in G&A costs, which were partially offset by a Funding Gain of $0.2 million.

LIQUIDITY AND CAPITAL RESOURCES

As at September 30, 2021, the Company had cash of $22.9 million and net working capital of $18.7 million, compared to cash of $36.3 million and net working capital of $33.0 million as at December 31, 2020. The decrease in the Company’s cash and net working capital is due primarily to funds used to advance exploration at the Filo del Sol Project, and to a lesser extent, funds spent for general corporate purposes. These decreases have been partially offset primarily by $6.9 million in gross proceeds received by the Company in relation to the exercise of stock options during the nine months ended September 30, 2021.

The Company will continue to deploy the majority of its treasury to fund ongoing advancement of the Filo del Sol Project.

About Filo Mining

Filo Mining is a Canadian exploration and development company focused on advancing its 100% owned Filo del Sol copper-gold-silver deposit located in Chile’s Region III and adjacent San Juan Province, Argentina. Filo Mining is a member of the Lundin Group of Companies.

Technical Information

Copper Equivalent is calculated based on US$ 3.00/lb Cu, US$ 1,500/oz Au and US$ 18/oz Ag, with 80% metallurgical recoveries assumed for all metals.  The formula is: CuEq % = Cu % + (0.7292 * Au g/t) + (0.0088 * Ag g/t).

Details on assay procedures and the drill intersections provided above can be found in the Company’s news releases dated July 19, 2021 and August 4, 2021.

Qualified Persons

The scientific and technical disclosure for the Filo del Sol Project included in this news release have been reviewed and approved by Bob Carmichael, P.Eng. and Jamie Beck, P. Eng.  Mr. Carmichael is Filo Mining’s Vice President of Exploration and a Qualified Person under National Instrument 43-101 Standards of Disclosure of Mineral Projects (“NI 43-101”). Mr. Beck is Filo Mining’s President and CEO and is also a Qualified Person under NI 43-101.