Luca Mining Corp. (TSXV: LUCA) (OTCQX: LUCMF) (Frankfurt: Z68) is pleased to announce it has achieved commercial production at its Tahuehueto operation.

Additionally, the Company is announcing its production guidance for 2025, outlining expectations for its Campo Morado and Tahuehueto operations. The Company also provides details on its consolidated forecasts, budgeted capital, and exploration expenditures. All figures are presented in U.S. dollars unless otherwise stated.

Commercial Production at Tahuehueto

In March 2025, the Company has successfully achieved commercial production at its Tahuehueto mine, consistently operating at a throughput rate above 800 tonnes per day.

Ramon Perez, President of the Company, commented “This milestone marks a significant step in the mine’s development, reflecting the operational team’s dedication and the effectiveness of recent optimization efforts. Achieving this sustained production level demonstrates the mine’s ability to generate stable output, supporting the Company’s growth strategy and long-term value creation. The Company remains focused on further enhancing efficiencies and maximizing the mine’s full potential.”

2025 Production and Free Cash Flow² Guidance Highlights

For the year ahead, Luca anticipates producing between 85,000 and 100,000 gold equivalent ounces¹ with payable ounces ranging between 65,000 and 80,000. Free cash flow² before working capital adjustments is anticipated to be between $30 million and $40 million. The Company remains focused on key strategic initiatives designed to enhance shareholder value and drive operational efficiencies across its two producing mines.

At Campo Morado, efforts will continue to ramp up operations with the goal of achieving a consistent and sustainable mill feed while targeting an increase in throughput above 2,000 tonnes per day towards the end of 2025. Optimization work remains ongoing to improve metal recoveries and maintain grade consistency, including refining grinding techniques and reagent dosing. Additionally, the development of a third copper concentrate is expected to enhance payability of precious metals with improved concentrate grades. The Company has also outlined plans for a minimum 5,000-metre exploration program, which aims to expand mineral resources and sustain long-term production.

At Tahuehueto, the Company is prioritizing infrastructure enhancements, including the construction of a spare parts warehouse to minimize downtime and improve operational resilience. Increasing mill throughput remains a key objective, alongside continued exploration efforts to assess both near-mine and regional targets within the property’s extensive epithermal vein system.

In-line with its broader financial strategy, Luca is committed to eliminating the Company’s debt by July 2026. Strong operational free cash flow, combined with the potential exercise of outstanding warrants, may allow for an accelerated repayment timeline.

CEO Dan Barnholden commented, “Luca is entering an exciting phase of growth, underpinned by a commitment to operational excellence and exploration success. In 2025, we anticipate a significant increase in production, strengthened cash flow, and the advancement of highly strategic initiatives. With two operating mines generating robust free cash flow, we are well positioned to enhance our performance while identifying new growth opportunities, including potential M&A activity. Our long-term vision is to establish Luca as a leading mid-tier mining company with a production target exceeding 200,000 gold equivalent ounces annually.”

2025 Production Guidance

Produced Metal

Payable Metal

At Tahuehueto, our processing plant has an installed capacity of 1,000 tpd, with demonstrated instantaneous production rates of up to 1,200 tpd. As operations transition into commercial production, plant availability is currently at 82%, reflecting the typical phased approach to ramp-up as operations stabilize. This results in an average processing rate of 820 tpd, with a clear plan to systematically increase availability to 85%-90% as the plant continues to perform well. Our focus remains on optimizing efficiencies to enhance long-term reliability and maximize throughput.

Free Cash Flow²

The Company anticipates generating between $30 million and $40 million in free cash flow² before working capital adjustments for the year, reflecting the strength of its core mining operations. This metric, which excludes short-term fluctuations in receivables, payables, prepaids and inventory, provides a clear measure of the Company’s ability to generate cash from operations net of capital expenditures. Strong free cash flow² supports key initiatives, including debt repayment, reinvestment in growth opportunities, and potential shareholder returns. The Company’s anticipated cash generation underscores its operational efficiency and financial resilience as it continues to execute its long-term strategy.

2025 Budgeted Capital Expenditures and Exploration

In 2025, Luca plans to invest a total of $27.4 million into its projects, $23.5 million in sustaining capital expenditures and $3.9 million in exploration across its two operating mines. These expenditures are expected to be fully funded through operational cash flow.

At Campo Morado, a total of $13 million will be allocated to capital projects, with the primary investment being the development mine workings estimated at $10 million. Additional funds will support mine infrastructure, equipment acquisitions, and improvements to the processing plant and tailings storage facility. The exploration program will include 5,000 metres of drilling for $1.3 million, marking the first such initiative in several years. This campaign will focus on increasing high-grade resources near existing operations while also evaluating regional targets for future development.

At Tahuehueto, planned capital expenditures amount to $10.5 million, with $6.5 million allocated to mine workings. Additional investments will be directed toward infrastructure upgrades, plant enhancements, and camp improvements. The 2025 exploration program for $2.6 million is expected to involve 5,000 metres of drilling, primarily targeting resource expansion and mine life extension. Luca may extend exploration efforts to assess regional targets across the broader property.

Technical Disclosure

The scientific and technical information contained in this news release has been reviewed and approved by Ramon Mendoza, P.Eng., Chief Technical Officer, a Qualified Person as defined under National Instrument 43-101.

Production in Campo Morado

Production at the Campo Morado is not currently based on the result of a feasibility study of mineral reserves demonstrating economic and technical viability, instead is supported by historical and actual mine and processing performance. Readers should consider that increased uncertainty exists until such viability is supported by a study at least at a pre-feasibility study level. The Company is currently working with independent consultants to complete a Mineral Resource update and provide an estimation of the Mineral Reserves at Campo Morado.

About Luca Mining Corp.

Luca Mining is a diversified Canadian mining company with two 100%-owned producing mines within the prolific Sierra Madre mineralized belt in Mexico which hosts numerous producing and historic mines along its trend. The Company produces gold, copper, zinc, silver and lead from these mines that each have considerable development and resource upside.

The Campo Morado mine, is an underground operation located in Guerrero State.  It produces copper-zinc-lead concentrates with precious metals credits. It is currently undergoing an optimization program which is already generating significant improvements in recoveries and concentrates grades, efficiencies, and cashflows.

The Tahuehueto gold-silver mine is an underground operation in Durango State, located along a trend that hosts numerous producing and historic mines. The Company has successfully commissioned its mill and is now in commercial production.