Pre-Feasibility Study (PFS) Summary

The PFS was initiated in 2022 and was produced by a team of independent consultants that possess extensive expertise in their respective fields. Details on the contributors can be found in the “Qualified Persons” section below.

All amounts are in United States dollars unless otherwise specified. Base case economics were calculated using a gold price of $1,650 per ounce, copper price of $3.75 per pound and a silver price of $20.00 per ounce. The effective date of the PFS is April 7, 2023 and a technical report relating to the PFS will be filed on SEDAR within 45 days of this news release.

The PFS demonstrates further improvements upon the Company’s two prior preliminary economic assessments for the Project, with the latest being the 2020 Preliminary Economic Assessment (the “2020 PEA”).

Summary of improvements at Cangrejos since the 2020 PEA:

• Contained ounces of gold in the mine plan increased to 11.6 million ounces
• Indicated gold mineral resource increased to 16.8 million ounces from 10.4 million ounces
• Mineral resource expansion makes Cangrejos the 26^th largest primary gold asset globally by contained gold in mineral resources
• Mine life increased from 25 to 26 years
• Project after-tax NPV of US$2,238 million at US$1,650/oz gold and US$3.75/lb copper

PFS highlights include the following estimates:

• Life of mine (“LOM”) average annual payable production of 371 thousand ounces gold (“koz”)
• LOM average annual payable by-product production of 41 million lbs copper
• 469 koz of average annual gold equivalent production over the LOM
• 26-year mine life with a LOM revenue mix of 79% gold, 20% copper and 1% silver
• 30,000 tonnes per day processing operation years 1-3, erxpanding to 60,000 in year 4 and 80,000 in year 7
• After-tax NPV (5%) of $2.2 billion and IRR 17.2% using base case prices
• Average cash operating costs of $602/oz and all-in sustaining costs of $671/oz, net of by-product credits
• LOM processed grades of 0.55 grams per tonne (“g/t”) gold and 0.10% copper
• Years 1-6 processed grades of 0.71 g/t gold and 0.12% copper
• Initial capital costs of $925 million include working capital and exclude refundable value added tax (“VAT”)

Table 1: Summary of Cangrejos Economic Results by Gold and Copper Price

Table 2: Comparison to 2020 PEA to the 2023 PFS

Table 3: Mining Material Summary

Note: Totals may not add up due to rounding

Table 4: Processing and Production Schedule

Note: Equivalents calculated using $1,650 per ounce gold, $3.75 per pound copper and $20.00 per ounce silver

Table 5: Cangrejos Life of Mine Capital Expenditure Estimate Breakdown

Note: Totals may not add up due to rounding

⁽¹⁾The contingency allowance was developed on an area-by-area assessment of estimate confidence. The assessment considered scope, quantification, and pricing factors to assign a contingency amount to each area.

⁽²⁾ VAT is recoverable on 12% of the export value once the Project is in production.

Table 6: Summary of Cangrejos Operating Cost Estimates and Cash Costs

Note: Totals may not add up due to rounding

By-products and equivalents calculated using $1,650 per ounce gold, $3.75 per pound copper and $20.00 per ounce silver.
Net Cash Cost: (Operating costs including transportation and refining costs + Royalties – By-product credits) / Payable Au oz.
Gold Equivalent Cash Cost: (Operating costs including transportation and refining costs + Royalties) / Payable Au Eq oz.
All-in Sustaining Cash Cost: Adds sustaining capital and closure costs to the Net Cash Cost and Gold Equivalent Cash Cost.

Table 7: Selected Metallurgical Recoveries Summary

Table 8: Recoveries by Product Type

For more detailed information please view the full news release for April 17, 2023: Click Here

Leo Hathaway, P.Geo, a "qualified person" within the definition of that term in NI 43-101, has reviewed and approved the scientific and technical information contained on this page.