Production of 17,913 gold equivalent ounces with $33.4 million in revenues; planned stripping contributing to higher costs, expected to normalize in H2 2022

(All dollar amounts expressed in US dollars unless otherwise noted)

Great Panther Mining Limited (TSX: GPR) (NYSE-A: GPL) a growth-oriented precious metals producer focused on the Americas, announces consolidated financial results for the three months ended March 31, 2022, from its three wholly-owned mines: the Tucano Gold Mine in Brazil, and Topia and the Guanajuato Mine Complex in Mexico, both primarily silver mines.

“First quarter 2022 results were in line with expectations and good progress was made on numerous fronts as we build back steady-state production at Tucano,” stated Alan Hair, Chair and Interim CEO. “The first half of 2022 is focused on capital intensive programs required to safeguard production in the back-half of the year. Stripping of the TAP AB, TAP C and Urucum North pits is advancing in preparation for ore production in the third quarter, as is mobilization of the new mining contractor. Although still on the road to recovery, I believe we are turning a corner and expect to see improving results as the year progresses.”

During the first quarter of 2022, progress was made in stripping the TAP AB, TAP C and Urucum North pits despite rain levels being over 30% higher in the quarter than historical averages. The combination of significant stripping against anticipated low production of gold ounces in Q1 2022 resulted in higher unit costs than the comparative quarter in 2021, however these costs are expected to normalize in the second half of 2022.

Selected Q1 2022 Highlights

• Consolidated metal production of 17,913 gold equivalent ounces, inclusive of 14,319 gold ounces and 173,698 silver ounces
• Consolidated cash costs of $1,725 per gold ounce sold compared with $954 in the first quarter of 2021
• Consolidated all-in-sustaining-costs¹, excluding corporate G&A, of $2,740 per gold ounce sold compared with $1,557 for the same period in 2021
• Revenue of $33.4 million compared with $52.6 million in the same period in 2021
• Mine operating loss of $3.4 million compared with mine operating earnings of $11.0 million in Q1 2021
• Net loss of $8.9 million compared with net loss of $0.3 million in Q1 2021
• EBITDA¹ of negative $1.2 million compared with EBITDA of $10.3 million for Q1 2021
• Updated Mineral Reserve and Mineral Resource (“MRMR”) estimate for the Tucano gold mine successfully replaced mining depletion and extended mine life by 1.5 years
• New mining contractor, MINAX, on track to be fully mobilized during Q2
• Reported positive exploration results for the Coricancha development project in Peru that confirm the potential of the Escondida vein
• Recognized for executive gender diversity by The Globe and Mail’s “Women Lead Here” benchmark
• Both Topia and the GMC received “Socially Responsible Company” distinctions, awarded by CEMEFI (the Mexican Center for Philanthropy).

As previously disclosed, the additional pushback of the UCS pit was postponed until the second half of 2022 following the rainy season. In Q1 2022, geotechnical studies were completed by the Company with the assistance of SRK Consulting that confirmed the value of ore in the UCS pit will support the pushback design. The pushback is estimated to total 8.5 million tonnes of waste removal.

During Q1 2022, 4,912 metres were drilled completing the 11,000-metre infill drilling program to support technical studies for the URN underground project. Final assays are being received and will be reported this quarter. Final results are also being received for more than 700 line-kilometres of multi-element soil geochemistry sampling carried out in 2021. This geochemical database will be interpreted to define and prioritize targets for follow-up and drilling in the second half of 2022.

Financial Highlights

Summary of Select Financial Results

For Q1 2022, the Company recorded a net loss of $8.9 million compared with net loss of $0.3 million for Q1 2021. Lower metal sales volumes due to low production, as explained above, offset partially by higher realized prices for gold, lead and zinc, resulted in a decrease in revenue to $33.4 million and mine operating loss of $3.4 million compared with revenue of $52.6 million and mine operating earnings of $11.0 million for Q1 2021.

Net working capital declined $18.4 million in Q1 2022 to negative $18.1 million. For Q1 2022, the Company incurred cash outflows from operating and investing activities of $20.1 million. The Company expects to generate positive cash flows from its mining operations in 2022 prior to capital investments, debt repayment obligations, and exploration and evaluation and development costs. The Company has determined that it will require further financing and will consider additional equity financing (including through use of the ATM facility) and debt financing, in order to meet long-term objectives, improve working capital, fund planned capital investments and exploration programs for its operating mines, pursue acquisitions and meet scheduled debt repayment obligations.

Operational Highlights

The Company’s operations are on track to meet previously announced consolidated production guidance for 2022 of 100,000 to 119,000 Au eq. As disclosed in the Company’s news release dated January 19, 2022, the second half of 2022 is expected to account for a least 65% of annual production guidance. The mine plan for Tucano reflects more stripping in the first half of 2022 and therefore consolidated AISC is expected to be higher in the first half and offset by increased production rates in the second half of 2022.

Production and AISC guidance here and elsewhere in this news release is forward-looking information that should be read in conjunction with the Cautionary Statement on Forward-Looking Statements section at the end of this news release and the Company’s most recently filed Management Discussion and Analysis for the year ended December 31, 2021. The Company may revise guidance during the year to reflect actual results to date and those anticipated for the remainder of the year.

Refer to the Company’s Management’s Discussion and Analysis for the three months ended March 31, 2022 for more details of the financial results and for reconciliations of the Company’s non-GAAP performance measures to the nearest GAAP measure. The full version of the Company’s unaudited condensed interim consolidated financial statements for the three months ended March 31, 2022 and 2021 and MD&A can be viewed on the Company’s website at www.greatpanther.com, on SEDAR at www.sedar.com or on EDGAR at www.sec.gov/edgar.shtml. All financial information is prepared in accordance with IFRS, except as noted in the Non-GAAP Measures section of the Company’s MD&A.

ABOUT GREAT PANTHER

Great Panther is a growth-oriented precious metals producer focused on the Americas. The Company owns a diversified portfolio of assets in Brazil, Mexico and Peru that includes three gold and silver mines, an advanced development project and a large land package with district-scale potential. Great Panther is focused on creating long-term stakeholder value through safe and sustainable production, reinvesting into exploration and pursuing acquisition opportunities to complement its existing portfolio.

TECHNICAL INFORMATION

The technical information contained in this news release has been reviewed and approved by Fernando A. Cornejo, P. Eng., Chief Operating Officer, a non-independent Qualified Person for the purposes of National Instrument 43-101 – Standards of Disclosure for Mineral Projects.