Mineros S.A. (TSX: MSA) (CB: MINEROS) reported its financial and operational results for the three months ended March 31, 2023. For further information, please see the Company’s unaudited condensed consolidated interim financial statements and management’s discussion and analysis filed under its profile on www.sedar.com.

Andrés Restrepo, President and CEO of Mineros, commented, “The first quarter of 2023 was challenging as we faced a nearly two-week long suspension of operations at the Nechí Alluvial Property, due to protests by groups of informal miners, which reflected as a 9% decrease in gold produced when compared to the same quarter of 2022. On the other hand, during the first quarter of 2023, we also received the positive pre-feasibility study results for the Porvenir Project in Nicaragua, a key project in our pipeline of organic growth projects. The Porvenir Project would allow us to extend the life of mine at the Hemco Property for eight additional years, adding average annual production of approximately 56,700 ounces of gold. We expect that brownfield and greenfield exploration of our properties will remain a source of future growth.”

FINANCIAL AND OPERATING HIGHLIGHTS FOR THE FIRST QUARTER 2023

Gold Production

• 60,248 ounces of gold produced.
• A 9% decrease in gold production compared to the same period in 2022 (Q1/22: 66,009 ounces of gold produced).
• On track to achieve 2023 production guidance.

Cost of Sales, Cash Cost¹ and All-in Sustaining Cost¹

• Cost of sales of $85,820, a decrease of 7% relative to the same period in 2022 (Q1/22: $92,005).
• Cash Cost per ounce of gold sold^1,2 of $1,155 (Q1/22: $1,175), representing a 2% decrease relative to the same period in 2022.
• AISC per ounce of gold sold1,2 of $1,411 (Q1/22: $1,377), representing an 2% increase relative to the same period in 2022.
• On track to achieve 2023 cost guidance.

Dividend Payment

• $4,837 in dividends paid.
• An increase of 5% in dividends paid compared to the same period in 2022 (Q1/22: $4,598).

Revenue

• Revenue of $118,090.
• Revenue decreased by 5% compared to the same period in 2022 (Q1/22: $124,650).

Profitability

• Gross profit decreased by 1% to $32,270 compared to the same period in 2022 (Q1/22: $32,645).
• Net profit for the period up 47% to $15,404 ($0.05/share) compared to the same period in 2022 (Q1/22: $10,472 or ($0.03/share)), explained by the insurance claim recognition associated with the overturning of the Llanuras Plant, a floating beneficiation plant at the Nechí Alluvial Property on May 28, 2022.

Net Debt to Adjusted EBITDA ratio¹

• Net Debt to Adjusted EBITDA ratio¹ of 0.07x as at March 31, 2023.
• The Company has continued to have a low Net Debt to Adjusted EBITDA ratio, even with a 256% increase compared to 0.02x as at March 31, 2022.

Financial and Operating Highlights.

Operational Highlights by Material Property

(All numbers in ounces unless otherwise noted)

Production of 17,988 ounces of gold during the first quarter of 2023 from the Nechí Alluvial Property in Colombia was 7% below production during the first quarter of 2022 production, explained by a nearly two-week long suspension of operations due to protests in the Bajo Cauca region.

In Nicaragua, gold production during the first quarter of 2023 was 32,621 ounces of gold, similar to production of the first quarter of 2022, as higher production from the Panama and Pioneer mines in the first quarter of 2023 compensated for lower purchases of artisanal material.

First quarter of 2023 production of 9,639 ounces of gold from the Gualcamayo Property in Argentina was 32% lower than production during the first quarter of 2022, explained mainly by a lower average gold grade by 50%. The increase in ore-in-process stockpiles is explained by lower production levels due to the cyanidation process and heap leach kinetics.

CORPORATE HIGHLIGHTS FOR THE THREE MONTHS ENDED MARCH 31, 2023

Positive Prefeasibility Study Results for the Porvenir Project – Hemco Property, Nicaragua

On March 16, 2023, the Company announced a new technical report on the Hemco Property, which included positive prefeasibility study results for its Porvenir Project updated Mineral Resource and Mineral Reserve estimates for other deposits, significantly increasing the mine life of the Hemco Property Mineral Reserves from five to thirteen years. Highlights of the prefeasibility study included:

• Mineral Resource and Mineral Reserve estimates for the Porvenir Project, effective December 31, 2022:
  • 270 kt of Proven Mineral Reserves averaging 2.70 g/t Au, 13.6 g/t Ag and 3.14% Zn, containing 23 koz Au, 118 koz Ag, and 19 Mlb Zn;
  • 5,524 kt of Probable Mineral Reserves averaging 3.09 g/t Au, 10.2 g/t Ag and 2.96% Zn, containing 549 koz Au, 1,804 koz Ag, and 360 Mlb Zn;
  • 59 kt of Measured Mineral Resources averaging 1.75 g/t Au, 8.08 g/t Ag, and 2.11 % Zn, containing 3 koz Au, 15 koz Ag, and 3 Mlb Zn;
  • 974 kt of Indicated Mineral Resources averaging 2.39 g/t Au, 8.13 g/t Ag, and 2.56% Zn containing metal of 75 koz Au, 255 koz Ag, and 55 Mlb Zn; and
  • 1,694 kt of Inferred Mineral Resources averaging 2.42 g/t Au, 12.10 g/t Ag, and 3.64% Zn, containing metal of 132 koz Au, 656 koz Ag, and 136 Mlb Zn
• Porvenir Project base case economics include an after-tax net present value (using a 10% discount rate) of approximately $42 million, which is 27% of current market capitalisation (close to $155 million) an after-tax internal rate of return of approximately 16% and a payback period of approximately 4 years from start of production in 2027, assuming $1,500/oz Au, $19.00/oz Ag, and $1.27/lb Zn.
• The Porvenir Project will add average annual production over its nine-year mine life of 56,700 oz Au per year, along with 112,300 oz Ag per year and 38.5 Mlb Zn per year to the Hemco Property.
• After-tax net present value (using a 5% discount rate) of $160 million, similar to current market capitalisation of CAD 200 million (close to $155 million) at $1,650/oz Au, $20.90/oz Ag, and $1.40/lb Zn; increasing to $216mm at $1,800/oz Au, $22.80/oz Ag, and $1.52/lb Zn.
• IRR of 21% and after-tax payback period of 3.5-years from start of production at $1,650/oz Au, $20.90/oz Ag, and $1.40/lb Zn.

For more information, see the MD&A.

Temporary Suspension of Operations at the Nechí Alluvial Property in Colombia due to Protests

On March 10, 2023, the Company announced a temporary suspension of operations at its Nechí Alluvial Property due to protests by groups of informal miners not associated with the Company against measures taken by the national government of Colombia. On March 23, 2023, the Company announced the resumption of all temporarily suspended operations. While the suspension negatively impacted the Company’s quarterly gold production, Mineros nevertheless expects to reach its annual production guidance for the Nechí Alluvial Property of 84,000 – 94,000 oz. The Company continues to work with local communities and stakeholders to ensure the continuity of its operations at its Nechí Alluvial Property.

Profit Distribution and 2023 Dividends

On March 30, 2023, at the Company’s ordinary meeting of its General Shareholders Assembly, a distribution of the Company’s profits for the year was approved. This distribution included, in respect of each common share of the Company, an annual ordinary dividend of payable in four equal quarterly installments of $0.0175, representing a total distribution of $0.07 per share, or $20,982 in total.

Subsequent to March 31, 2022

Reduction of Royal Road Interest in Hemco Property

On April 13, 2023, Royal Road Minerals Limited abandoned its rights under the amended and restated strategic alliance agreement dated May 21, 2021, between Hemco Nicaragua S.A., a subsidiary of Mineros, and Royal Road and its Nicaraguan affiliate in respect of the Hemco Property, except the Hemco Rosita VI concession and the Hemco Rosita VII concession application, which together form the Caribe Exploration Target. The Company does not expect this reduction to have a material impact on its financial statements.

GROWTH AND EXPLORATION PROJECT UPDATES

Porvenir Project, Nicaragua: After obtaining positive pre-feasibility study results, the Company is planning to drill a total of 5,000 metres of diamond drilling at the Porvenir Project starting in the second quarter of 2023, with the aim of increasing or upgrading current Mineral Resources and Mineral Reserves.

Luna Roja Deposit, Nicaragua: In the first quarter of 2023, upon review of its exploration priorities, the Company determined to focus its resources on reviewing the Luna Roja geological model, interpreting the results of its 2022 drilling campaign, including new targets surrounding the main deposit, and internally updating its Mineral Resource estimate prior to commencing further drilling at the Luna Roja Deposit.

Deep Carbonates Project, Argentina: On March 31, 2023, the Company filled its annual information form containing an updated Mineral Resource estimate for the Deep Carbonates Project as at December 31, 2022, which includes the 2021 and 2022 drilling campaign. Notwithstanding the winding down of activities at the Gualcamayo Mine, the Company continues to analyze mining and processing scenarios for its sulphide gold Deep Carbonates Project and is expecting to make an announcement in this regard during 2023.

ABOUT MINEROS S.A.

Mineros is a gold mining company headquartered in Medellin, Colombia. The Company has a diversified asset base, with mines in Colombia, Nicaragua and Argentina and a pipeline of development and exploration projects throughout the region.

The board of directors and management of Mineros have extensive experience in mining, corporate development, finance and sustainability. Mineros has a long track record of maximizing shareholder value and delivering solid annual dividends. For almost 50 years Mineros has operated with a focus on safety and sustainability at all its operations.

The Company has been granted an exemption from the individual voting and majority voting requirements applicable to listed issuers under Toronto Stock Exchange policies, on grounds that compliance with such requirements would constitute a breach of Colombian laws and regulations which require the directors to be elected on the basis of a slate of nominees proposed for election pursuant to an electoral quotient system. For further information, please see the Company’s most recent annual information form filed on SEDAR at www.sedar.com.

QUALIFIED PERSON

The scientific and technical information contained in this news release has been reviewed and approved by Jorge Aceituno, a Registered Member of the Chilean Mining Commission and the Planning Manager, Resources and Reserves for Mineros and a qualified person within the meaning of National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”).