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, 2022.

HIGHLIGHTS AND OUTLOOK

Filo del Sol drill program successfully extends the Aurora Zone and Breccia 41 while building confidence in geological continuity

Jamie Beck, President & CEO, commented, “Our investment in accelerating exploration continues to yield impressive results, demonstrating continuity and extension of the Aurora Zone and Breccia 41 in combination with the Bonita Zone discovery, establishing a new porphyry centre approximately 2km northeast of Breccia 41. With the arrival of spring, we are ramping up drilling operations and will be mobilizing additional rigs to the project in the fourth quarter. Exploration results continue to stand out on a global scale and showcase the project as one of the most significant copper-gold-silver discoveries of its generation.”

During and subsequent to the end of the third quarter of 2022, the Company announced results from three holes at the Filo del Sol Project.  Drillholes FSDH061, FSDH063, and FSDH067 successfully extended the strike length of the Aurora Zone by 180m to a total of 1.6km in the north-south direction, in addition to infilling certain areas of the Aurora Zone which increased confidence in the geological continuity throughout this zone.

• The Aurora Zone is interpreted to be continuous between FSDH063 to the south, and FSDH061 to the north (1.6km total distance between holes); large undrilled gaps remain between these holes and the Zone remains open in all directions;
• FSDH061 intersected 701.2m at 1.13% CuEq from a depth of 392m, including 406m at 1.36% CuEq from 508m and the hole ended in strong mineralization at a depth of 1,093m; clearly extending the Aurora Zone, and confirming its generally NNE strike direction. The Aurora Zone remains completely open northeast of this intersection;
• FSDH063, located 1.6km southwest of FSDH061, was drilled to a final depth of 1,141m and intersected 844.2m at 0.53% CuEq from a depth of 16m, including 142m at 0.71% CuEq from a depth of 16m and 112m at 0.86% CuEq from a depth of 436m. The Aurora Zone remains open to the south of this hole, and large distances remain to the north and down-dip for expansion. Down dip, FSDH025 is just over 500m away from FSDH063, and to the north there is an undrilled gap of 590m between FSDH063 and FSDH048 (1,081m at 0.88% CuEq; 0.52% Cu, 0.43g/t Au, 5.3g/t Ag); and
• FSDH067, an infill hole between FSDH061 and FSDH063, intersected 1,131.6m at 1.11% CuEq from a depth of 132m, including 4m at 1.54% Cu, 12.08 g/t Au and 20.5 g/t Ag from 202m and 36m at 0.76% Cu, 0.71 g/t Au and 123.2 g/t Ag from 248m. The hole ended in strong mineralization at a depth of 1,263.6m.

Assay results received by the Company during and subsequent to the end of the third quarter of 2022 are summarized in the following table:

As of the date of this News Release, additional holes have been completed with assays pending, which include:

• FSDH062, infilling a 200m gap between holes FSDH044 and FSDH046, completed to a depth of 1,400m; and
• FSDH064, infilling a 400m gap between holes FSDH032 and FSDH048, completed to a depth of 1,447m.

Assay results for these holes will be released as they are received, analyzed and confirmed by the Company.

Two additional holes, FSDH065 (196m) and FSDH066 (458m) were suspended earlier this year, prior to the winter weather, and will be deepened during the upcoming months.

Six drill rigs are currently active, and the Company will add additional rigs to the program as the weather moderates. The winter campaign, which focused on the Aurora and Breccia 41 Zones, was planned to keep the drill rigs close together to prioritize safety. As these holes finish up, drilling will begin to spread out to test new exploration targets while also keeping a focus on expanding and defining the known zones. Some big step-out holes are planned to the north and south (including testing the Gemelos target, located 5km northeast of the Aurora Zone) along with smaller step-outs, as the Company drills to the north of FSDH061 and south of FSDH063. The Company continues to maintain a strong focus on improving drill productivity through a variety of initiatives, including the incorporation of two brand new, state-of-the-art diamond drill rigs, and is planning for consistent drilling over the next 12 months.

Data collected from the current campaign will be used to develop a comprehensive geological model which will guide further exploration and form the basis of an eventual update to the Mineral Resource estimate.

The Company incurred a net loss of $20.0 million during the three months ended September 30, 2022, comprised primarily of $19.9 million in exploration and project investigation costs and $6.3 million in G&A costs, which were partially offset by a gain of approximately $4.0 million resulting from the use of marketable securities for the purposes of facilitating intragroup funding transfers (a “Funding Gain”). For the 2021 comparative period, the Company reported a net loss of $9.5 million, consisting mainly of $8.7 million in exploration and project investigation costs and $3.1 million in G&A costs, which were partially offset by a Funding Gain of $2.5 million.

LIQUIDITY AND CAPITAL RESOURCES

As at September 30, 2022, the Company had cash and cash equivalents of $91.7 million and net working capital of $76.9 million, compared to cash of $19.4 million and net working capital of $13.1 million as at December 31, 2021. The increase in the Company’s cash and cash equivalents and net working capital is primarily due to $100.4 million in net proceeds generated by the Private Placement of 6,270,000 common shares to BHP at a price of $15.95 per common share and. An Additional $4.3 million in gross proceeds was received by the Company in relation to the exercise of stock options during the nine months ended September 30, 2022. The Company plans to deploy its treasury to fund ongoing exploration and advancement of the Filo del Sol project, and for working capital and general corporate purposes.

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 August 23, 2022 and October 5, 2022.

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. Mr. Beck is Filo Mining’s President and CEO and is also a Qualified Person under NI 43-101.