ATY.V · 2024-05-21 12:00:00

Atico Reports Consolidated Financial Results for First Quarter of 2024

Financials

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

VANCOUVER, British Columbia, May 21, 2024 -- Atico Mining Corporation (the “Company” or “Atico”) (TSX.V: ATY | OTC:

ATCMF) today announced its financial results for the three months ended March 31, 2024, posting income from mining

operations of $2.8 million and a net loss of $0.4 million. Production for the period at Atico’s El Roble mine totaled 3.3 million

pounds (“lbs”) of copper and 2,185 ounces (“oz”) of gold in concentrate at a cash cost(1) of $2.57 per payable pound of copper

(2).

Fernando E. Ganoza, CEO and Director, commented, "the operational and financial results for this quarter were in line with

Company expectations. We are already into development of the newly discovered reserves and have been making additional

investments in preparation for ore extraction from these areas.” Mr. Ganoza continued, “for the remainder of the year, we

should start to see an improvement in our operating costs as we progressively gain access to mining the upper areas of the

mine, while at the same time the recent increase in metals prices, particularly in copper should be positively reflected in our

revenue and margin.”

First Quarter Financial Highlights

• Net loss for the quarter amounted to $0.4 million, compared with $0.5 million for the comparative quarter. The loss was

primarily due to higher costs and lower average realized price per pound of payable copper which impacted income from

mining operations, as well as an unrealized mark-to-market loss on gold hedges.

• Sales for the quarter increased 39% to $17.8 million when compared with $12.8 million in Q1-2024. Copper (“Cu”) and

gold (“Au”) accounted for 81% and 19% of the 9,383 (Q1-2023 – 6,475) dry metric tonnes (“DMT”) sold during Q1-2024.

• The average realized price per metal was $3.97 (Q1-2023 – $4.15) per pound of copper and $2,180 (Q1-2023 – $2,139)

per ounce of gold.

• Ending working capital was negative $1.8 million (December 31, 2023 – $2.1 million), while the Company had $6.0

million (December 31, 2023 – $6.0 million) in long-term loans payable.

• Cash costs (1) were $160.10 per tonne of processed ore and $2.57 per pound of payable copper produced, which were

an increase of 26% and 17% over Q1-2023, respectively.

• Cash margin was $1.40 per pound of payable copper produced, which was a decrease of 28% over Q1-2023 due to the

increase in cash cost per pound and the decrease in realized copper price.

• All-in sustaining cash cost (1) per payable pound of copper produced was $3.41 (Q1-2023 – $3.34).

First Quarter Summary of Financial Results

2024

2023

Change

Revenue $ 17,818,115 $ 12,783,240 39%

Cost of sales (15,016,252) (10,702,409) 40%

Income from mining operations 2,801,863 2,080,831 35%

As a % of revenue 16% 16%

General and administrative expenses (1,331,172) (1,466,716) (9%)

Income from operations 1,292,845 573,062 126%

As a % of revenue 7% 4%

Income (loss) before income taxes (257,271) 197,191 (230%)

Net loss (365,933) (499,670) (27%)

As a % of revenue (2%) (4%)

Operating cash flow before changes in non-cash operating

working capital items (1) $ 5,847,701 $ 2,039,380 187%

First Quarter Operational Review

In Q1-2024, the Company produced 3.3 million lbs of copper, 2,185 oz of gold, and 8,174 oz of silver. When compared to the

same period in 2023, production increased by 45% for copper and decreased 14% for gold, which was due to average copper

head-grades increasing by 34% and gold head-grades decreasing by 25%. Tonnes of processed ore also increased by 7%

compared to Q1-2023.

First Quarter Consolidated Operational Details

2024

2023

Change

Production (Contained metals)(3)

Copper (000s lbs) 3,349 2,310 45%

Gold (oz) 2,185 2,553 (14%)

Silver (oz) 8,174 8,335 (2%)

Mine

Tonnes of material mined 64,873 60,568 7%

Mill

Tonnes processed 65,787 62,793 5%

Tonnes processed per day 811 747 8%

Copper grade (%) 2.52 1.87 34%

Gold grade (g/t) 1.67 2.23 (25%)

Silver grade (g/t) 8.49 11.20 (24%)

Recoveries

Copper (%) 91.8 89.2 3%

Gold (%) 61.7 57.0 8%

Silver (%) 46.3 37.5 23%

Concentrates

Copper Concentrates (DMT) 8,274 5,815 42%

Copper (%) 18.4 18.0 2%

Gold (g/t) 8.2 13.7 (40%)

Silver (g/t) 30.7 44.8 (31%)

Payable copper produced (000s lbs) 3,148 2,169 45%

Cash cost per pound of payable copper ($/lbs)(1)(2) 2.57 2.20 17%

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’s reserves estimate, with an effective date of March 12, 2024, includes Proven and Probable mineral reserves of 828

thousand tonnes averaging 2.49% Cu, 2.20 g/t Au and a life of mine until Q1-2027. A full NI 43-101 technical report will be

available on SEDAR on or before June 14, 2024. For more information on the reserves estimate refer to the Company’s press

release dated April 30, 2024 which can be found on SEDAR and on the Company’s website.

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

The 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. In total, there is drill core and

logs from more than 28,300 metres of drilling.

Historic resources based on drilling by Cambior and Cornerstone were estimated at 913,977 tonnes grading 8.01 grams gold

per tonne, 88.3 grams silver per tonne, 5.01% copper, 6.71% zinc and 0.78% lead per tonne in the inferred category. More

recently, 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 of two concessions covering a total area of 2,235 hectares along its 9-kilometer length, which

contains known mineralization in two VMS lenses and nine priority exploration targets.

The Company is currently working on completing a Feasibility Study and obtaining the necessary permits and the

environmental license to begin construction of the La Plata project.

In January 2024, the Company announced that the Government of Ecuador authorized the extension period for the La Plata

mining concession until 2049.

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 | OTC: 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.

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; 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, 2023 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 year ended December 31, 2023, as filed on

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

(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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