Orla Mining Ltd. (TSX: OLA) (NYSE: ORLA) announces the results for the first quarter ended March 31, 2024.

(All amounts expressed in U.S. dollars unless otherwise stated)

First Quarter 2024 Highlights

• First quarter gold production was 33,223 ounces and gold sold was 32,046 ounces (pre-released).
• All-in sustaining costs¹ was $909 per ounce of gold sold during the first quarter 2024.
• Adjusted earnings¹ for the first quarter were $16.8 million or $0.05 per share.
• Net income for the first quarter was $17.5 million or $0.06 per share.
• Cash flow from operating activities before changes in non-cash working capital during the first quarter was $21.7 million.
• Exploration and project expenditure was $8.6 million during the quarter, of which $3.9 million was capitalized and $4.7 million was expensed.
• As at March 31, 2024, Orla’s cash balance was $118.1 million and net cash¹ was $29.7 million.
• Subsequent to quarter end, the Company made a $10.0 million re-payment towards its revolving credit facility reducing the outstanding balance drawn to $78.4 million.

“We continue to strive to be a gold mining company of choice, that effectively finds, builds, and operates high quality gold mines. In keeping with these objectives, we started 2024 with continued strong gold production at Camino Rojo generating meaningful free cash flow, we enhanced our landholdings in Nevada with the acquisition of Contact Gold, and our exploration program in Mexico is progressing as planned and returning exciting results.”

– Jason Simpson, President and Chief Executive Officer of Orla

Financial and Operations Update

First Quarter 2024 Financial and Operations Summary

The Camino Rojo Oxide Gold Mine produced 33,223 ounces of gold in the first quarter of 2024 at an average ore stacking rate of 19,597 tonnes per day. The average mining rate during the first quarter was 30,950 tonnes per day with a strip ratio of 0.45. The average grade of ore processed during the first quarter was 0.82 g/t gold, in line with plan. Tonnes of waste mined remained lower than planned during the quarter as the Company awaited receipt of permits from the Secretariat of Environment and Natural Resources (known as “SEMARNAT”) for access to certain areas of the pit. Gold sold during the first quarter 2024 totaled 32,046 ounces and cash costs and AISC totaled $576 and $909 per ounce of gold sold, respectively.

Exploration and Projects Update

In the first quarter, exploration efforts were concentrated on drilling activities at Camino Rojo in Mexico. Throughout the quarter, drilling totaled 12,808 metres, primarily focused on the Camino Rojo Extensions. Orla also issued multiple press releases, during the first quarter highlighting the results of exploration activities from the second half of 2023 at the Camino Rojo and South Railroad projects.

Camino Rojo Extension Exploration (Mexico)

As part of the near-mine exploration at Camino Rojo, the 2024 focus shifts to the promising Camino Rojo Extension, with a 30,000-metre drill program designed to test and expand the potential of the still-open mineralization at the expansive Camino Rojo deposit. The Company drilled over 10,000 metres and 10 holes during the quarter with assays and metallurgical testing in progress.

Camino Rojo Near-Mine Oxide Exploration (Mexico)

The 2024 oxide extension program aims to delineate additional shallow oxide mineralization near the southeast pit wall, focusing on structurally controlled areas, with the objective of defining additional oxide gold material and extend the life of the Camino Rojo Oxide mine. The 2024 oxide extension program was completed in March, with total drilling of 2,036 metres in 19 drillholes. Assay results from the 2024 oxide extension program are expected in the second quarter.

Camino Rojo Sulphides Project Planning (Mexico)

A preliminary underground resource estimate on the Camino Rojo Sulphides is anticipated to be completed in the second half of 2024. Metallurgical study of the recent phase of Camino Rojo sulphide infill drilling is expected to continue throughout 2024.

South Railroad Project Permitting (Nevada)

The Company continues baseline environmental data collection to facilitate the environmental studies required to support development of the Environmental Impact Statement, and the overall National Environmental Policy Act permitting process. Orla is currently expanding on this work to allow flexibility in project planning when working with the Bureau of Land Management during the permitting process. The next step in the NEPA process will be the BLM publishing the Notice of Intent in the Federal Register, followed by public scoping meetings in conjunction with the development of the EIS. SWCA Environmental Consultants have been engaged to manage the EIS process on behalf of the BLM. The process will culminate in the BLM publishing a Record of Decision for the project. The Company expects this permitting process to continue over 2024 and 2025, with construction at South Railroad commencing in 2026.

Contact Gold Acquisition

During the quarter, Orla announced the acquisition of Contact Gold. Contact’s key asset is the 100%-owned Pony Creek property, a 4,500 hectare exploration land package, strategically located adjacent to Orla’s South Railroad property in the heart of the Carlin trend in Nevada. This acquisition enhances Orla’s strategic footprint in Nevada and the addition of Pony Creek will complement Orla’s control of the southern part of the Railroad Mining District, representing a natural and seamless expansion of the South Railroad property. The acquisition was completed after quarter-end on April 29, 2024.

Orla has commenced the integration of Pony Creek into the Company’s exploration activities. The Company intends to increase the 2024 South Railroad exploration budget by $3.0 million, to $14.0 million, to enhance ongoing exploration efforts in Nevada, focusing on the combined South Railroad – Pony Creek Property. Drilling activities in Nevada are scheduled to commence in the second quarter and last until the middle of the fourth quarter of 2024.

For further details, please see the Company’s news releases dated February 26, 2024 and April 29, 2024.

Panama Update

The Company has filed a Notice of Intent to Arbitrate with the Government of Panama under the Canada-Panama Free Trade Agreement in respect of the Cerro Quema Project. The Notice of Intent asserts that measures taken by Panama constitute violations of its legal obligations under the FTA and customary international law. The Notice of Intent is intended to facilitate consultations between the Government of Panama and the Company. If these consultations are not successful, the Company expects to file a formal Request for Arbitration under the FTA. Although the Company intends to pursue these legal remedies, the Company’s preference is a constructive resolution with the Government of Panama that results in a positive outcome for all stakeholders.

2024 Guidance – Q1 Update

With the acquisition of Contact Gold, Orla intends to increase the 2024 exploration budget in Nevada by $3.0 million. This additional expenditure will increase the total 2024 exploration spend to $14.0 million at South Railroad. During the first quarter, the Company spent a total of $8.6 million in exploration and project development or 23% of the revised expected total spending for the year, of which $3.9 million was capitalized and $4.7 million was expensed.

The Company remains on track to meet its 2024 gold production guidance of 110,000 to 120,000 ounces and AISC guidance of $875 to $975 per ounce of gold sold.

Financial Statements

Orla’s unaudited financial statements and management’s discussion and analysis for the quarter ended March 31, 2024, are available on the Company’s website at www.orlamining.com, and under the Company’s profiles on SEDAR+ and EDGAR.

Qualified Persons Statement

The scientific and technical information in this news release was reviewed and approved by Mr. J. Andrew Cormier, P. Eng., Chief Operating Officer of the Company, and Mr. Sylvain Guerard, P. Geo., Senior Vice President, Exploration of the Company, who are the Qualified Persons as defined under NI 43-101 – Standards of Disclosure for Mineral Projects.

About Orla Mining Ltd.

Orla’s corporate strategy is to acquire, develop, and operate mineral properties where the Company’s expertise can substantially increase stakeholder value. The Company has two material gold projects: (1) Camino Rojo, located in Zacatecas State, Mexico and (2) South Railroad, located in Nevada, United States. Orla is operating the Camino Rojo Oxide Gold Mine, a gold and silver open-pit and heap leach mine. The property is 100% owned by Orla and covers over 130,000 hectares which contains a large oxide and sulphide mineral resource. Orla is also developing the South Railroad Project, a feasibility-stage, open pit, heap leach gold project located on the Carlin trend in Nevada. The technical reports for the Company’s material projects are available on Orla’s website at www.orlamining.com, and on SEDAR+ and EDGAR under the Company’s profile at www.sedarplus.ca and www.sec.gov, respectively.