Orla Mining Ltd. (TSX: OLA) (NYSE: ORLA) is pleased to provide an update on its exploration activities on its South Railroad Project  in 2022 and an overview of exploration plans for 2023 in Nevada.

2022 Exploration Highlights: South Railroad (Nevada)

• The resumption of exploration activities in mid-2022 resulted in promising drill results from multiple satellite oxide mineralized zones and targets across the 21,000-hectare South Railroad land package.
• Infill and selected step-out drilling was performed with the objective to upgrade inferred resources at the Pinion SB, POD, Sweet Hollow and Jasperoid Wash oxide deposits, define potential new resources at the Dixie mineralized zone, and advance the early-stage LT target.
• Inferred mineral resource estimates for Pinion SB, POD, Sweet Hollow, and Jasperoid Wash are expected to be updated in the second half of 2023, incorporating assay and metallurgical test study results from the 2022 core and reverse circulation (“RC”) drill program, as well as from historical drill holes.
• Notable 2022 RC drill results (core hole results pending)¹:

Oxide Resource Targets

“Our short but effective drill program in 2022 successfully confirmed significant mineralization at multiple satellite zones and targets on the South Railroad Project. We believe there are immediate opportunities to upgrade and potentially increase oxide resources on our land package, which could ultimately strengthen project economics,” said Sylvain Guerard, Senior Vice President, Exploration, of Orla. “New, highly prospective oxide and sulphide targets have also been outlined for drilling in 2023. The team is excited to be ramping up exploration activities directed toward making new discoveries on the Carlin Trend.”

Current Mineral Reserve Estimate

Current Mineral Resource Estimate

2022 Exploration: South Railroad (Nevada)

South Railroad is a feasibility-stage heap leach project that is currently in the permitting stage. The feasibility study on the project contemplates open pit mining of the Dark Star and Pinion deposits. South Railroad is situated within a prospective land package, referred to as the Railroad-Pinion property, along the prolific Carlin Trend, which provides opportunities for future resource expansion and conversion, and the discovery of new deposits. Orla is actively exploring the land package in parallel with permitting and development of the heap leach project.

The project covers a strike length of over 25 kilometres along the southern end of the prolific Carlin Gold Trend, Nevada. The Carlin Trend consists of multiple deposits containing a huge gold endowment of >100 million ounces. Gold mineralization at South Railroad occurs mainly as disseminated Carlin-type ore-stage pyrite in stratiform breccia and stratigraphic horizons within a complex fault network. The property hosts multiple zones of oxide, transition and sulphide mineralization, throughout the entire land package, with current Proven & Probable Reserves of 1.6 M oz (65.2 Mt @ 0.77 g/t Au) and Measured and Indicated Resources of 1.8 M oz (75.3 Mt @ 0.74 g/t Au). Multiple high priority exploration targets have been defined and provide excellent upside potential for the discovery of new deposits.

Exploration at South Railroad in 2022 focused on oxide resource definition and expansion at multiple targets. Upon taking ownership of the South Railroad project in August 2022, Orla accelerated exploration activities and expanded the project’s 2022 program. The program objectives included: 1) confirming historical drill results, and 2) providing additional information, including increased drill hole spacing density, specific gravity measurements and material for preliminary metallurgical test work necessary for mineral resources estimation upgrade and growth. 2022 RC drill assay results are in line with historical drilling data at each of the drilled targets. Mineral resource estimates for Pinion SB, POD, Sweet Hollow, and Jasperoid Wash mineralized zones, and at the Dixie target, are planned for 2023.

In total, 10,573 metre of drilling (9,796 metres of RC in 61 holes and 777 metres of core in 7 holes) were completed at South Railroad in 2022. All RC assay results have been received and are presented in this news release. Assay results for drill core holes remain pending. Selective core material will be used for metallurgical test study planned for the second quarter 2023.

Pinion SB – Resource Expansion:

The Pinion SB mineralized zone is contiguous and southeast of the Pinion deposit. Orla completed 12 RC holes (2,874 drill metres) in 2022. Drilling successfully demonstrated continuity of the oxide gold mineralization extending southeast over a redefined strike length of 420 metres and from 115 to 190 metres vertical depth. Mineralization remains open along strike. The Pinion deposit and Pinion SB Zone are hosted in a northwest-trending structural zone, at the Devil’s Gate / Tripon Pass – Webb formations karsted contact, within the south-plunging nose of the Bullion Anticline. An updated resource estimate is planned for the second half of 2023.

Notable results:

• PR22-01: 0.85 g/t Au over 53.3 m (Oxide) from 109.7 m
• PR22-01: 1.03 g/t Au over 32.0 m (Oxide) from 176.8 m
• PR22-07: 1.10 g/t Au over 27.4 m (Oxide) from 210.3 m
• PR22-01: 1.61 g/t Au over 18.3 m (Oxide) from 225.6 m
• PR22-02: 0.46 g/t Au over 62.5 m (Oxide) from 80.8 m

POD – Resource Expansion:

The POD zone is located in the northern part of the property, 1.5 km south-southwest of the North Bullion deposit. POD geological setting is similar to Newmont’s Rain deposit located to the north of the property. In 2022, 18 RC holes (1,475 drill metres) and two core holes (195 metres) were completed at POD. Drilling intersected significant transition and sulphide, including high grade (>4 g/t Au) gold mineralization confirming shallow positive historical drill results. POD mineralization is hosted in the Mississippian Chainman Formation along a northwest-southeast trending structural zone. An updated resource estimate is planned for the second half of 2023.

Notable results:

• POD22-15: 4.87 g/t Au over 25.9 m from 30.5 m (Transition), incl. 8.52 g/t Au over 13.7m (Oxide)
• POD22-09: 1.37 g/t Au over 21.3 m (Oxide) from 18.3 m, and 4.96 g/t Au over 24.4 m (Sulphide) from 39.6 m
• POD22-08: 1.51 g/t Au over 12.2m (Oxide) from 22.9 m, and 4.12 g/t Au over 35.1m (Sulphide) from 36.6 m
• POD22-04: 2.16 g/t Au over 22.9 m (Transition) from 33.5 m
• POD22-14: 1.52 g/t Au over 19.8m (Oxide) & 2.72 g/t Au over 32.0m (Sulphide) from 16.8 m

Sweet Hollow – Resource Expansion:

The Sweet Hollow mineralized zone is located in the northern part of the property near the POD mineralized zone, and 1.25 km southwest of the North Bullion deposit. This is a similar geological setting to Newmont’s Emigrant deposit located to the north of the property. Seven RC holes (628 metres) and 3 core holes (171 metres) were completed at Sweet Hollow in 2022. Drilling intersected oxide mineralization, confirming near surface positive historical drill results. Sweet Hollow gold mineralization is hosted in Devil’s Gate / Tripon Pass – Webb formations karsted contact along the north-northeast trending Bullion Fault. An updated resource estimate is planned for the second half of 2023.

Notable results:

• SH22-03: 0.52 g/t Au over 35.1 m (Oxide) from 41.1 m
• SH22-04: 0.41 g/t Au over 32.0 m (Oxide) from 16.8 m
• SH22-05: 0.38 g/t Au over 29.0 m (Oxide) from 1.5 m
• SH22-05: 0.31 g/t Au over 30.5 m (Oxide) from 36.6 m

Jasperoid Wash – Resource Expansion:

Jasperoid Wash is located 10 km south of the Pinion deposit. Gold mineralization is currently defined over 140 metres vertically starting at surface. Eight RC holes (1,222 metres) were completed at Jasperoid Wash in 2022. Drilling intersected oxide, transition, and sulphide mineralization, confirming positive historical drill results. The mineralized zone is hosted in Pennsylvania – Permian formations sedimentary breccia and Tertiary intrusive rocks bounded by two north trending regional structures known as the Westport and Eastport Faults. An updated resource estimate is planned for the second half of 2023.

Notable results:

• JW22-04: 0.62 g/t Au over 18.3 m (Transition) from 30.5 m
• JW22-03: 0.29 g/t Au over 38.1 m (Oxide) from 71.6 m
• JW22-06: 0.24 g/t Au over 27.4 m (Oxide) from 18.3 m, and 0.37 g/t Au over 15.2 m (Oxide) from 67.1 m

Dixie – Advanced Exploration, Resource Definition:

Dixie is located 3.4 km to the south of the Dark Star deposit along a north-trending regional structure known as the Ridgeline Fault. Twelve RC holes (2,615 metres) and 2 core holes (411 metres) were completed at Dixie in 2022. No resource exists at Dixie and an initial resource estimate is planned for 2023 using both historical results and 2022 RC and core drilling completed by Orla, along with drill core material to be used for metallurgical studies. Gold mineralization is hosted in Pennsylvanian – Permian Formations sedimentary rocks and is currently defined over 200 metres, ranging from 75 to 300 metres below surface and remains open to the south.

Notable results:

• DX22-06: 0.50 g/t Au over 35.1 m (Transition) from 74.7 m, and 0.81 g/t Au over 19.8 m (Oxide) from 109.7 m
• DX22-04: 1.77 g/t Au over 10.7 m (Transition) from 163.1 m, and 0.62 g/t Au over 15.2 m (Oxide) from 207.3 m
• DX22-01: 0.47 g/t Au over 36.6 m (Transition) from 149.4 m

LT – Early-Stage Exploration:

The LT target is located 3 km northwest of the Pinion deposit. Selected historical significant oxide intercepts at LT includes: 30.5 m of 0.78 g/t Au (LT20-08) and 39.6 m of 0.76 g/t Au (LT21-02). Oxide mineralization at LT starts at the surface and is open along strike to the north and at depth. Mineralization is currently defined over a strike length of 600 metres and from surface to 115 metres vertically. Two RC holes were drilled in 2022 (335 drill metres) with one hole (L22-01) intersecting positive oxide gold mineralization from surface. The second hole was drilled off trend and did not return significant results. A soil geochemical survey was also performed in 2022 to define extension of the mineralization to the north and orient follow-up drilling. Partial soil results received thus far suggest gold mineralization may extend north of LT. The LT target is hosted in the north-trending LT Fault at the permissive Devil’s Gate / Tripon Pass – Webb formations karsted contact.

Notable result:

• LT22-01: 0.53 g/t Au over 21.3 m (Oxide) from 0.0 m

2023 Exploration Plans & Strategy: South Railroad (Nevada)

A $10 million exploration budget is planned in Nevada in 2023 which would include approximately 22,400 metres of drilling (16,500 metres of RC drilling and 5,900 metres of core).

Resource Definition and Expansion + New Discoveries:

Multiple targets, including the extension of known mineralization (deposits) and newly developed targets supported by geology, geochemistry, and geophysical data, have been defined by Orla. Key exploration targets to be drilled in 2023 include Pinion SB, as well as extensions of mineralization at Jasperoid Wash, Dixie, POD, Sweet Hollow, and North Bullion. Target design focuses on primary structural controls (north–south and west-northwest–east-southeast striking structures), especially where these structures intersect and crosscut favourable stratigraphic horizons.

There is potential for the discovery of additional satellite deposits, including Carlin-, epithermal- and skarn-type gold and base metal mineralization, throughout the district in many areas that have not been thoroughly tested. Targets with potential for new discoveries occur in various parts of the property and include LT, Webb, Millie, Quick, Davis, CC, Ranch, Hidden Star, Porter, Robinson, Willow, and South Dome. In addition to drill testing some of these less advanced targets, geological mapping and geochemical surveys are planned to advance early-stage targets to the drill-stage and to develop new exploration targets.

Qualified Persons Statement

The scientific and technical information in this news release has been reviewed and approved by Mr. Sylvain Guerard, P Geo., SVP Exploration of the Company, who is the Qualified Person as defined under the definitions of National Instrument 43-101.

To verify the information related to the 2022 drilling programs at the South Railroad property, Mr. Guerard has visited the property in the past year; discussed logging, sampling, and sample shipping processes with responsible site staff; discussed and reviewed assay and QA/QC results with responsible personnel; and reviewed supporting documentation, including drill hole location and orientation and significant assay interval calculations.

Quality Assurance / Quality Control – 2022 Drill Program

All gold results at South Railroad were obtained by fire assay fusion and optical emission finish (FA-PB30-ICP) at American Assay Labs in Sparks, Nevada, USA. Over limit gold assays were determined using fire assay fusion with gravimetric finish (GRAVAu-30). Gold cyanide extraction was determined using a 2-hour cyanide leach (AuCN30). All other elements were determined by 4 acid and boric acid dissolution with ICP-OES+MS method (ICP-2AM50). Quality Assurance/Quality Control and interpretation of results were performed by qualified persons employing a Quality Assurance/Quality Control program consistent with NI 43-101 and industry best practices. Certified reference material (standards), blank, or rig duplicate were inserted approximately every tenth sample for Quality Assurance/Quality Control purposes by the Company. American Assay Labs is independent of Orla. There are no known drilling, sampling, recovery, or other factors that could materially affect the accuracy or reliability of the drilling data at South Railroad.

About Orla Mining Ltd.

Orla is operating the Camino Rojo Oxide Gold Mine, a gold and silver open-pit and heap leach mine, located in Zacatecas State, Mexico. The property is 100% owned by Orla and covers over 160,000 hectares. The technical report for the 2021 Feasibility Study on the Camino Rojo oxide gold project entitled “Unconstrained Feasibility Study NI 43-101 Technical Report on the Camino Rojo Gold Project – Municipality of Mazapil, Zacatecas, Mexico” dated January 11, 2021, is available on SEDAR and EDGAR under the Company’s profile at www.sedar.com and www.sec.gov, respectively. Orla also owns 100% of Cerro Quema located in Panama which includes a gold production scenario and various exploration targets. Cerro Quema is a proposed open pit mine and gold heap leach operation. The technical report for the Pre-Feasibility Study on the Cerro Quema oxide gold project entitled “Project Pre-Feasibility Updated NI 43-101 Technical Report on the Cerro Quema Project, Province of Los Santos, Panama” dated January 18, 2022, is available on SEDAR and EDGAR under the Company’s profile at www.sedar.com and www.sec.gov, respectively. Orla also owns 100% of the South Railroad Project, a feasibility-stage, open pit, heap leach project located on the Carlin trend in Nevada. The technical report for the 2022 Feasibility Study entitled “South Railroad Project, Form 43-101F1 Technical Report Feasibility Study, Elko County, Nevada” dated March 23, 2022, is available on SEDAR and EDGAR under the Company’s profile at www.sedar.com and www.sec.gov, respectively. The technical reports are available on Orla’s website at www.orlamining.com

Appendix: Drill Results

Table 1: South Railroad Drill Composites

Table 2: South Railroad Drill Hole Collars

Figure 1: South Railroad Project; Deposits, Mineralized Zones and 2022 Drill Results Highlights (CNW Group/Orla Mining Ltd.)

Figure 2: South Railroad Project; Deposits, Mineralized Zones and 2023 Drill Targets (CNW Group/Orla Mining Ltd.)

Figure 3: South Railroad Project – Pinion Long Section (CNW Group/Orla Mining Ltd.)

Figure 4: South Railroad Project – POD Long Section (CNW Group/Orla Mining Ltd.)

Figure 5: South Railroad Project – Sweet Hollow Long Section (CNW Group/Orla Mining Ltd.)

Figure 6: South Railroad Project – Jasperoid Wash Long Section (CNW Group/Orla Mining Ltd.)

Figure 7: South Railroad Project – Dixie Long Section (CNW Group/Orla Mining Ltd.)

Figure 8: South Railroad Project with 2022 Drilling and 2023 Exploration Targets (CNW Group/Orla Mining Ltd.)