Compelling economics with an estimated after-tax IRR of 37% and after-tax NPV of $1.5 billion

Torex Gold Resources Inc. (TSX: TXG) (OTCQX: TORXF) has released the results of a preliminary economic assessment for its Los Reyes project in Sinaloa, Mexico, which includes a life of mine operating summary and estimated economics. The PEA confirms compelling economics for Los Reyes, underpinned by an attractive production profile and mine life, strong margins, and manageable upfront investment.

Andrew Snowden, President & CEO of Torex, stated:

“The Los Reyes PEA marks an important step in demonstrating the underlying value of the Company’s next growth project outside of the Morelos Complex and confirms the project potential we envisioned when we acquired Prime Mining in late 2025. The PEA outlines a high-quality gold and silver project with an attractive production profile and long mine life, robust all-in sustaining cost margin¹ of 56%, and upfront capital investment that can be fully funded internally through cash flow generated from our flagship Morelos Complex.

“Los Reyes has an estimated after-tax IRR of 37.3% and after-tax NPV (5%) of $1,491 million, assuming long-term consensus metal prices of $3,600/oz gold (“Au”) and $50/oz silver (“Ag”). Assuming 10% higher metal prices, modestly lower than the current spot prices for Au and Ag of approximately $4,150/oz and $62/oz, respectively, Los Reyes has an estimated after-tax IRR of 42.7% and after-tax NPV (5%) of $1,816 million. The strength of the project’s economics is reflected in the profitability index, which is equivalent to 2.9x the estimated upfront capital expenditure¹ of $515 million as well as the relatively quick payback period of less than two years at long-term consensus metal prices.

“From an operational standpoint, Los Reyes is expected to boast a strong production profile and competitive cost base. During the first 11 years of operation, prior to processing lower-grade stockpiled material, annual production is forecast to average 161 thousand gold equivalent ounces², including 111 koz Au and 3,594 koz Ag. All-in sustaining costs ¹ over the life of the project are forecast to average $1,617 per oz AuEq sold² based on average annual production of 134 koz AuEq over 14.4 years.

“The development of Los Reyes will benefit from the Company’s proven track record of successful project delivery and operations in Mexico, including permitting expertise, excellent community relationships, robust security protocols and a deep talent pool within the country. Based on a preliminary project timeline, construction of Los Reyes would commence in 2029 with first production in 2031.

“As part of our rigorous project execution framework, we intend to progress Los Reyes through a prefeasibility study in 2027 and feasibility study in 2028. Going forward, we will focus on de-risking and enhancing the underlying economics of Los Reyes through a multi-year exploration and drilling program, additional metallurgical and geotechnical work, and a number of trade-off studies as we advance Los Reyes to production.”

SUMMARY OF THE LOS REYES PROJECT PEA

The PEA outlines the initial economics for the Los Reyes project. Operational and economic estimates are based on a two-year project construction period. References to metal production are on a recovered basis and sales are on a payable basis (net of refinery deductions). All values of economic inputs are nominally based, and all amounts are expressed in U.S. dollars (Table 1).

Table 1: Summary of the Los Reyes PEA (subject to rounding)

Notes to Table 1

1. These measures are non-GAAP financial measures with no standardized meaning under IFRS and might not be comparable to similar financial measures disclosed by other issuers. See Endnote 1 below on non-GAAP measures.
2. AuEq produced or sold includes Au (produced / sold) and AuEq values for Ag (produced / sold), respectively, assuming metal prices of $3,600/oz Au and $50/oz Ag. AuEq (oz) = Au (oz) + Ag (oz) * (50 / 3,600).

The mine plan and economics outlined in the PEA are based on an updated mineral resource estimate for Los Reyes which incorporates approximately 10,000 metres of drilling completed by Prime Mining post the cut-off date for the previous mineral resource estimate of October 2024. Additionally, the mineral resource now assumes the use of long-hole open stoping versus cut-and-fill in the estimation of underground mineral resources (Table 7).

With the resumption of drilling in May 2026, a comprehensive drilling program aimed at supporting the PFS and enhancing the resource inventory of Los Reyes is well underway.

It is important to note that the PEA is preliminary in nature, includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the results of the PEA will be realized. The basis for the PEA and the qualifications and assumptions made by the Qualified Persons who undertook the PEA are set out in this news release and the PEA.

Production Profile

Based on an estimate of mineable resources, Los Reyes is expected to deliver average annual production of 134 koz AuEq, including 93 koz Au and 2,992 koz Ag, over on an estimated mine life of 14.4 years. Assuming Au and Ag prices of $3,600/oz and $50/oz, respectively, 69% of payable metal value over the life of the project is attributable to Au with the remainder attributable to Ag. During the first 11 years (prior to processing lower-grade stockpiled open pit material), annual production is expected to average 161 koz AuEq, including 111 koz Au and 3,594 koz Ag (Figure 1).

Figure 1: Annual production is forecast to average 134 koz AuEq over 14.4 years including 161 koz AuEq over the first 11 years prior to processing of lower-grade stockpiled open pit material

Note to Figure 1

1. AuEq production includes Au production and AuEq values for Ag production assuming long-term metal prices of $3,600/oz Au and $50/oz Ag. AuEq (oz) = Au (oz) + Ag (oz) * (50 / 3,600).

Mining, Processing & Tailings Management

Mineralized material will be mined concurrently from open pit and underground deposits and treated through a single processing facility. Open pit mining is expected to begin one year ahead of underground operations, with lower-grade open pit material stockpiled and processed towards the end of the mine life (Table 2, Figure 2).

Figure 2: The majority of mineralized material is expected to be sourced from underground operations; lower-grade open pit material will be stockpiled and processed towards the end of the mine life

The primary mining method for underground operations at Los Reyes will be long-hole open stoping with paste backfill. Open pit operations will be conducted via conventional drill-and-blast, load-and-haul methods at an average strip ratio of 6.8:1 (waste to mineralized material). The majority of mineralized material from the open pits and underground will be transported to the processing facility through a shared fleet of low-profile haul trucks and will leverage tunnels connecting the various underground deposits.

Table 2: Plant feed will come from a combination of open pit and underground mines at Los Reyes

Notes to Table 2:

1. Strip ratio is the ratio of waste to mineralized material mined within the open pit.
2. Estimates are subject to rounding.

Mineralized material mined at Los Reyes will be treated via conventional crushing (3 stage) and a single ball mill grinding circuit with Au and Ag recovered using whole-ore leaching and the Merrill Crowe process. The processing plant has been designed with a capacity of 5,000 tonnes per day (“tpd”) with estimated metallurgical recoveries of 94.8% for Au and 81.1% for Ag over the life of the project.

The majority of tailings will be filtered and placed in a dedicated tailings storage facility with the remainder sent to the paste plant to be utilized as cement paste backfill in the underground mine. Approximately 38% of ore processed over the life of the operation is expected to be deposited underground as paste backfill with the remainder deposited in the filtered TSF.

Site infrastructure will include a 138 kV transmission line connecting to the grid of an existing hydro-electric facility north of Cosalá, water supply from local sources or surface water collection, as well as security, administration, warehouse, maintenance, and mine operations facilities.

Capital Expenditures¹

The upfront capital investment for the Los Reyes project is estimated to be $515 million. Approximately 60% of upfront costs are related to direct project expenditures and the remainder are associated with indirect expenditures. Of the direct expenditures, the largest capital outlays are related to construction of the processing plant ($113 million) and mine development ($98 million). The estimated upfront capital investment includes $103 million for contingencies (Table 3).

Table 3: Initial capital expenditures for the Los Reyes project are estimated to be $515 million

Note to Table 3:

1. Initial capital expenditures represent estimated upfront project construction capital costs and are preliminary in nature. Estimates are subject to rounding.

Sustaining capital expenditures over the life of the project are estimated to be $579 million, implying an average annual spend of $40 million. Sustaining capital expenditures include $301 million of lease payments related to the open pit and underground mining fleets (Table 4).

Table 4: Total sustaining capital expenditures for Los Reyes are estimated to be $579 million

Notes to Table 4:

1. Sustaining capital expenditures is a non-GAAP measure. See Endnote 1 below on non-GAAP measures.
2. Estimates are subject to rounding.

Conceptual closure costs (consistent with a PEA level of study) have been estimated at $35 million, with the largest components related to the rehabilitation of waste rock and the TSF, followed by plant demolition and general site rehabilitation.

Operating Costs

At base case metal prices, TCC¹ and mine-site AISC¹ are expected to average $1,299/oz AuEq sold and $1,617/oz AuEq sold, respectively, over the life of mine. On a by-product basis (net of Ag credits), TCC and mine-site AISC are expected to average $279/oz Au sold and $738/oz Au sold, respectively. At base case metal prices, Los Reyes is expected to deliver a TCC margin¹ of 65% over the project period and a mine-site AISC margin¹ of 56%. Mine-site AISC and margins exclude corporate level costs (Table 5).

Table 5: Los Reyes is expected to boast a competitive cost profile

Notes to Table 5:

1. These measures are non-GAAP financial measures with no standardized meaning under IFRS and might not be comparable to similar financial measures disclosed by other issuers. See Endnote 1 below on non-GAAP measures.
2. Open pit mining unit costs are based on $/t material mined which of 87,286 kt (mineralized material mined of 11,251 kt and waste mined of 76,034 kt).
3. Underground mining unit costs are based on $/t underground mineralized material mined of 14,822 kt.
4. Processing unit costs, site support unit costs, PTU, and total onsite operating unit costs are based $/t mineralized material processed of 26,074 kt.
5. PTU refers to mandated profit sharing in Mexico and is estimated based on taxable profit.
6. A summary of life of mine metal sold values for Au and Ag can be found in Table 1 including tonnes processed and average processed grades. AuEq sold includes Au sold and AuEq values for Ag sold assuming metal prices of $3,600/oz Au and $50/oz Ag. AuEq (oz) = Au (oz) + Ag (oz) * (50 / 3,600).
7. Estimates are subject to rounding.

Economics

Los Reyes is estimated to have an after-tax NPV (5% discount rate) of $1,491 million, after-tax IRR of 37.3%, payback period of 1.9 years, and profitability index of 2.9 (NPV over upfront capital expenditures) assuming long-term consensus metal prices of $3,600/oz Au and $50/oz Ag. Assuming 10% higher metal prices (modestly lower than current spot prices for Au and Ag), the estimated after-tax IRR is 42.7% and after-tax NPV (5%) is $1,816 million (Table 6).

The economics of the Los Reyes project are highly sensitive to changes in metal prices as well as estimated head grade and recovery. See Figure 3 for a sensitivity analysis.

Table 6: Sensitivity of Los Reyes economics as various combined Au/Ag price scenarios

Notes to Table 6:

1. EBITDA is a non-GAAP financial measures with no standardized meaning under IFRS and might not be comparable to similar financial measures disclosed by other issuers. See Endnote 1 below on non-GAAP measures.

Next Steps

The Company plans to commence a PFS on Los Reyes during the second half of 2026, which will include the results of current and future drilling focused on upgrading Inferred Mineral Resources to the Indicated category while also supporting further metallurgical and geotechnical studies. As part of the PFS, the Company expects to conduct several trade-off studies to de-risk the project design and/or enhance the overall economics. Potential trade-off studies could include the potential to supplement production by processing mineralized material below the current mill cut-off grade via a small heap leach operation, evaluation of using sub-level caving to mine the Guadalupe East underground, review of plant and surface infrastructure, as well as other project-related aspects.

With 20,000 metres of drilling planned for this year at Los Reyes, the Company expects to de-risk and upgrade the solid foundation of resources already established along the three main areas – Guadalupe, Z-T, and Central. Exploration over the coming years will seek to enhance the resource inventory, particularly along these primary zones of mineralization which remain open along strike and dip, as well as at several generative targets outside of the main resource areas.

ENDNOTES

1. The Company has presented certain non-GAAP financial measures in this news release which include: total cash costs, all-in sustaining costs, total cash costs margin, all-in sustaining costs margin, sustaining capital expenditures, EBITDA, and unit cost measures. The Company believes that these measures, while not a substitute for measures of performance prepared in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company. These measures do not have any standardized meaning prescribed under IFRS, and, therefore, may not be comparable to other issuers. As Los Reyes is not currently in production, there is no comparable GAAP financial measure reported at this time. For more information on non-GAAP measures, including the Company’s definition of each measure, please refer to the latest MD&A available on www.torexgold.com and SEDAR+ (www.sedarplus.ca).
2. AuEq produced or sold includes Au (produced / sold) and AuEq values for Ag (produced / sold), respectively, assuming metal prices of $3,600/oz Au and $50/oz Ag. AuEq (oz) = Au (oz) + Ag (oz) * (50 / 3,600).

ABOUT TOREX GOLD RESOURCES INC.

Torex Gold Resources Inc. is a Canadian mining company engaged in the exploration, development, and production of gold, copper, and silver from its flagship Morelos Complex in Guerrero, Mexico. The Company also owns the Los Reyes gold-silver project in Sinaloa and a portfolio of early-stage exploration properties, including the Batopilas and Guigui projects in Chihuahua, Mexico, and the Medicine Springs project in Nevada, USA as well as an option to acquire the Gryphon project in Nevada, USA.

The Company’s key strategic objectives are: optimize Morelos production and costs; disciplined growth and capital allocation; grow reserves and resources; project delivery excellence; retain and attract best industry talent; and be an industry leader in responsible mining. In addition to realizing the full potential of the Morelos Property, the Company continues to seek opportunities to acquire assets that enable diversification and deliver value to shareholders.