ATY.V · 2023-08-14 12:00:00

Atico Reports Consolidated Financial Results for Second Quarter of 2023

Financials

(1) Alternative performance measures; please refer to “Non-GAAP Financial Measures” at the end of this release.

(2) Net of by-product credits

(3) Subject to adjustments on final settlement

Page 1 of 6

Atico Reports Consolidated Financial Results for Second Quarter of 2023

(All amounts expressed in US dollars, unless otherwise stated)

Vancouver, August 14, 2023 -- Atico Mining Corporation (the “Company” or “Atico”) (TSX.V:

ATY | OTCQX: ATCMF) today announced its financial results for the three months ended June

30, 2023, posting a net gain of $0.1 million. Production for the period at Atico’s El Roble mine

totaled 2.8 million pounds (“lbs”) of copper and 2,294 ounces (“oz”) of gold in concentrate at a

cash cost(1) of $2.22 per payable pound of copper(2).

Fernando E. Ganoza, CEO and Director, commented, “As the overall production results improved

over the previous quarter, the financial results followed the same trend. Now that the operation has

again reached its intended steady state rate, we are anticipating further improvement in most

financial metrics for the second half of the year” said Fernando E. Ganoza, CEO. “For the

remainder of the year we will continue to put tremendous emphasis on the drill campaign at El

Roble mine vicinity while at the same time working on the mine plan to access these same areas.”

Second Quarter Financial Highlights

 Net income for the quarter amounted to $0.1 million, compared with net loss of $2.7 million

for the comparative quarter. The increase was primarily due to higher sales.

 Sales for the quarter increased 124% to $12.2 million when compared with $5.5 million in Q2-

2022. Copper (“Cu”) and gold (“Au”) accounted for 79% and 21% of the 6,597 (Q2-2022 –

4,472) dry metric tonnes (“DMT”) sold during Q2-2023.

 The average realized price per metal was $3.92 per pound of copper and $1,938 per ounce of

gold.

 Ending working capital was $13.3 million and the Company had $15.8 million in long-term

loans payable.

 Cash costs (1) were $125.05 per tonne of processed ore (Q2-2022 - $138.39) and $2.22 per

pound of payable copper produced (Q2-2022 - $1.36). The increase in cash cost per pound of

payable copper produced compared to the comparative period is due to lower copper

production due to lower ore grade.

 Cash margin was $1.70 (Q2-2022 - $2.38) per pound of payable copper produced, which was

a decrease of 29% over Q2-2022 due to lower copper price and higher cash cost per pound.

(1) Alternative performance measures; please refer to “Non-GAAP Financial Measures” at the end of this release.

(2) Net of by-product credits

(3) Subject to adjustments on final settlement

Page 2 of 6

 All-in sustaining cash cost per payable pound of copper produced (1)(2) was $3.28 (Q2-2022 -

$2.33).

Second Quarter Summary of Financial Results

2023

2022

Change

Revenue

$ 12,228,088 $ 5,463,057 124%

Cost of sales

(11,273,890) (5,705,078)

98%

Income from mining operations

954,198

(242,021)

(494%)

As a % of revenue

8% (4%)

General and administrative expenses

1,452,364

1,357,251

Income from operations

(602,944)

(1,749,732)

66%

As a % of revenue

(5%)

(32%)

Income before income taxes

(935,677)

(3,447,039)

(73%)

Net income

55,040

(2,693,821)

(102%)

As a % of revenue

(49%)

Operating cash flow before changes in non-cash operating

working capital items(1)

$ 2,999,267 $ (1,789,309) (268%)

Second Quarter Operational Review

In Q2-2023, the Company produced 2.8 million lbs of copper, 2,294 oz of gold, and 7,612 oz of

silver. When compared to the same period in 2022, production decreased by 22% for copper and

18% for gold, due to lower ore grades. Average copper head-grades decreased by 36% and gold

head-grades decreased by 28%, relative to the same period in 2022.

(1) Alternative performance measures; please refer to “Non-GAAP Financial Measures” at the end of this release.

(2) Net of by-product credits

(3) Subject to adjustments on final settlement

Page 3 of 6

Second Quarter Operational Details

2023

2022

Change

Production (Contained metals)(3)

Copper (000s lbs) 2,803 3,591 (22%)

Gold (oz) 2,294 2,811 (18%)

Silver (oz) 7,612 8,358 (9%)

Mine

Tonnes of material mined 72,340 61,667 17%

Mill

Tonnes processed 68,471 56,172 22%

Tonnes processed per day 799 889 (10%)

Copper grade (%) 2.04 3.17 (36%)

Gold grade (g/t) 1.78 2.47 (28%)

Silver grade (g/t) 9.46 8.63 10%

Recoveries

Copper (%) 91.1 91.4 (0%)

Gold (%) 58.7 62.9 (7%)

Silver (%) 36.6 53.8 (17%)

Concentrates

Copper Concentrates (DMT) 6,784 8,278 (18%)

Copper (%) 18.7 19.7 (5%)

Gold (g/t) 10.5 10.6 (1%)

Silver (g/t) 34.9 31.4 11%

Payable copper produced (000s lbs) 2,639 3,411 (23%)

Cash cost per pound of payable copper ($/lbs) (1)(2) 2.22 1.36 63%

(1) Alternative performance measures; please refer to “Non-GAAP Financial Measures” at the end of this release.

(2) Net of by-product credits

(3) Subject to adjustments on final settlement

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The financial statements and MD&A are available on SEDAR and have also been posted on the

Company's website at http://www.aticomining.com/s/FinancialStatements.asp

El Roble Mine

The El Roble mine is a high grade, underground copper and gold mine with nominal processing

plant capacity of 1,000 tonnes per day, located in the Department of Choco in Colombia. Its

commercial product is a copper-gold concentrate.

Since obtaining control of the mine on November 22, 2013, Atico has upgraded the operation from

a historical nominal capacity of 400 tonnes per day.

El Roble has Proven and Probable reserves of 1.00 million tonnes grading 3.02% copper and 1.76

g/t gold, at a cut-off grade of 1.3% copper equivalent with an effective date of September 30, 2020.

Mineralization is open at depth and along strike and the Company plans to further test the limits

of the deposit. On the larger land package, the Company has identified a prospective stratigraphic

contact between volcanic rocks and black and grey pelagic sediments and cherts that has been

traced by Atico geologists for ten kilometers. This contact has been determined to be an important

control on VMS mineralization on which Atico has identified numerous target areas prospective

for VMS type mineralization occurrence, which is the focus of the current surface drill program at

El Roble.

La Plata Overview

Atico’s wholly-owned La Plata project is a gold rich volcanogenic massive sulphide deposit that

was the subject of small-scale mining from 1975-1981 by Outokumpu Finland. The project

benefits from a modern drill and exploration database which was completed by Cambior Inc. from

1996-1999, Cornerstone Capital from 2006-2009 and Toachi from 2016-2019.

Toachi Mining completed a PEA estimating an inferred resource of 1.85 million tonnes grading

4.10 grams gold per tonne, 50.0 grams silver per tonne, 3.30% copper, 4.60% zinc and 0.60% lead

per tonne.

The La Plata project consists two concessions covering a total area of 2,235 hectares along its 4-

kilometer length, which contains known mineralization in two VMS lenses and nine priority

exploration targets.

(1) Alternative performance measures; please refer to “Non-GAAP Financial Measures” at the end of this release.

(2) Net of by-product credits

(3) Subject to adjustments on final settlement

Page 5 of 6

Qualified Person

Mr. Thomas Kelly (SME Registered Member 1696580), advisor to the Company and a qualified

person under National Instrument 43-101 standards, is responsible for ensuring that the technical

information contained in this news release is an accurate summary of the original reports and data

provided to or developed by Atico.

About Atico Mining Corporation

Atico is a growth-oriented Company, focused on exploring, developing and mining copper and

gold projects in Latin America. The Company generates significant cash flow through the

operation of the El Roble mine and is developing it’s high-grade La Plata VMS project in Ecuador.

The Company is also pursuing additional acquisition of advanced stage opportunities. For more

information, please visit www.aticomining.com.

ON BEHALF OF THE BOARD

Fernando E. Ganoza

CEO

Atico Mining Corporation

Trading symbols: TSX.V: ATY | OTCQX: ATCMF

Investor Relations

Igor Dutina

Tel: +1.604.633.9022

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the

TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

No securities regulatory authority has either approved or disapproved of the contents of this news release. The

securities being offered have not been, and will not be, registered under the United States Securities Act of 1933, as

amended (the ‘‘U.S. Securities Act’’), or any state securities laws, and may not be offered or sold in the United States,

or to, or for the account or benefit of, a "U.S. person" (as defined in Regulation S of the U.S. Securities Act) unless

pursuant to an exemption therefrom. This press release is for information purposes only and does not constitute an

offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction.

(1) Alternative performance measures; please refer to “Non-GAAP Financial Measures” at the end of this release.

(2) Net of by-product credits

(3) Subject to adjustments on final settlement

Page 6 of 6

Cautionary Note Regarding Forward Looking Statements

This announcement includes certain “forward-looking statements” within the meaning of Canadian securities

legislation. All statements, other than statements of historical fact, included herein, without limitation the use of net

proceeds, are forward-looking statements. Forward- looking statements involve various risks and uncertainties and

are based on certain factors and assumptions. There can be no assurance that such statements will prove to be

accurate, and actual results and future events could differ materially from those anticipated in such statements.

Important factors that could cause actual results to differ materially from the Company’s expectations include

uncertainties as to the timing and process for renewal of title to the El Roble claims; uncertainties relating to

interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of

capital and operating costs; the need to obtain additional financing to maintain its interest in and/or explore and

develop the Company’s mineral projects; uncertainty of meeting anticipated program milestones for the Company’s

mineral projects; the world-wide economic and social impact of COVID-19 is managed and the duration and extent

of the coronavirus pandemic is minimized or not long-term; disruptions related to the COVID-19 pandemic or other

health and safety issues, or the responses of governments, communities, the Company and others to such pandemic or

other issues; and other risks and uncertainties disclosed under the heading “Risk Factors” in the Company's

Management's Discussion and Analysis for the year ended December 31, 2022 as filed on SEDAR and as available

on the Company's website for further details, and in the prospectus of the Company dated March 2, 2012 filed with

the Canadian securities regulatory authorities on the SEDAR website at www.sedar.com

Non-GAAP Financial Measures

The items marked with a "(1)" are alternative performance measures and readers should refer to Non-GAAP Financial

Measures in the Company's Management's Discussion and Analysis for the six months ended June 30, 2023, as filed

on SEDAR and as available on the Company's website for further details.

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