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Altaley Mining Reports Second Quarter Financials

Financials

Altaley Mining Corporation

1000 – 1111 Melville Street

Vancouver, BC, V6E 3V6,

Canada

TSX.V: ATLY

Page 1 of 4

* Please refer to section “7 – Non GAAP measures” of the MD&A

Altaley Mining Reports Second Quarter Financials

Vancouver, British Columbia, August 30, 2021

Altaley Mining Corporation (“Altaley” or the “Company” (TSX-V: ATLY; OTC Pink: ATLYF; Frankfurt: TSGA)

announces strong financial and operating results for the three months ended June 30, 2021 (Q2 - 2021).

The Company’s Financial Statements and Management Discussion & Analysis (“MD&A”) are available

on the Company’s website at www.altaleymining.com and www.sedar.com. All financial information

contained in this news release is unaudited and reported in CDN$, unless otherwise stated.

Q2 - 2021 Financial and Operational Highlights

• Mine operating profit of $9.1 million and total income of $7 .6 million during the quarter and

mine operating profit of $14.2 million and total income of $11.4 million year to date

• Gross revenues of $24.5 million during the quarter generated from 11,854 tonnes of zinc

concentrate sold with an average of 46% zinc and 639 g/t silver. The Company also sold 2,668

tonnes of lead concentrate with an average of 22% lead, 723 g/t silver and 5.7 g/t gold . During

the quarter the Company produced 11,812 tonnes of zinc concentrate grading an average of 46%

zinc, 2.13 g/t gold, 656 g/t silver. The Company also produced 2,648 of lead concentrate grading

an average of 22% lead, 6.27 g/t gold, 751 g/t silver

• Total C1 cash cost per pound of zinc US$0.48 and all -in sustaining costs* (“AISC”) of US$0.77

during the quarter

• Cash flow from operations before changes in non -cash working capital of $6.5 million and $11.6

year to date

• The Company processed 164,047 tonnes of mineralized material, averaging 1,803 tonnes per

day, grading 4.5% zinc, 0.34% copper, 129 g/t silver and 1.16 g/t gold

• Mineralized material mined during the period was 182,455 tonnes grading 4.20% zinc, 1.09% lead,

125 g/t silver and 1.12 g/t gold

“Steady production rates during the quarter, plus implementation of operational efficiencies combined

with higher metal prices has resulted in another strong quarter with positive results from the

operations at Campo Morado ” stated Ralph Shearing , C EO. “As a result of higher revenues and

improved cost per tonne, the Company has achieved another quarter with solid mine operating profits

and positive cash flows from the Campo Morado Mine”.

Altaley Mining Corporation

1000 – 1111 Melville Street

Vancouver, BC, V6E 3V6,

Canada

TSX.V: ATLY

Page 2 of 4

* Please refer to section “7 – Non GAAP measures” of the MD&A

About Altaley Mining Corporation

Altaley Mining Corporation is a Canadian based mining company with two 100% owned Mexican gold,

silver, and base metal mining projects.

Altaley's Tahuehueto Gold Mine project is in north-western Durango State, Mexico where construction

has been advanced to an estimated 70% of completion. With the recently announced US $25 million

funding package, Altaley has the funding available to finish construction of its 1,000 tonne per day

processing facility and related mine infrastructure to initiate production of gold, silver, lead, and zinc in

concentrates at Tahuehueto. The Company is targeting initial pre -production by the end of 2021 and

ramping up to full production capacity during Q1 2022.

2021 2020 2021 2020

Operational

Ore Processed 164,047 70,490 338,429 158,876

Zn concentrate produced (ton) 11,812 3,899 22,825 10,279

Average realized zinc price per tonne (US$) 2,762$ 1,921$ 2,736$ 1,919$

Zn grade 46% 45% 46% 45%

Zn recovery 74% 69% 74% 70%

Pb concentrate produced (ton) 2,648 923 4,555 2,269

Average realized lead price per tonne (US$) 1,995$ 1,679$ 1,999$ 1,707$

Pb grade 22% 20% 23.21 21%

Pb recovery 31% 30% 29% 31%

Cost Ana lysis*

C1 Cash Cost (US$/lb) 0.48$ 1.26$ 0.60$ 0.95$

All-in Sustaining Cost (US$/lb) 0.77$ 2.17$ 0.83$ 1.44$

Financial

Gross revenues 24,489$ 6,608$ 45,705$ 14,335$

Mine operating profit 9,056$ (756)$ 14,245$ (693)$

Income (Loss) for the period 7,568$ (4,551)$ 11,371$ (6,321)$

Cash 8,908$ 662$ 8,908$ 662$

Working capital deficiency (38,470)$ (58,912)$ (38,470)$ (58,912)$

Shareholders

Basic earnings (loss) per share $ 0.03 $ (0.03) $ 0.05 $ (0.04)

Diluted earnings (loss) per share $ 0.03 $ (0.03) $ 0.04 $ (0.04)

Three months ended June 30, Six months ended June 30,

Altaley Mining Corporation

1000 – 1111 Melville Street

Vancouver, BC, V6E 3V6,

Canada

TSX.V: ATLY

Page 3 of 4

* Please refer to section “7 – Non GAAP measures” of the MD&A

Campo Morado is an operating polymetallic base metal mine with mining and milling equipment

currently producing at an average rate of approximately 2,000 tonnes per day , Campo Morado is

currently estimated to be Mexico’s 6th largest zinc producer.

Visit: www.altaleymining.com

On Behalf of the Board of Directors

(signed) “Ralph Shearing”

Ralph Shearing, P. Geol, CEO, President and Di rector

CAUTIONARY NOTE REGARDING PRODUCTION DECISIONS AND FORWARD-LOOKING STATEMENTS

It should be noted that Telson declared commercial production at Campo Morado prior to completing a feasibility study

of mineral reserves demonstrating economic and techni cal viability. Accordingly, readers should be cautioned that

Telson’s production decision has been made without a comprehensive feasibility study of established reserves such that

there is greater risk and uncertainty as to future economic results from the Campo Morado mine and a higher technical

risk of failure than would be the case if a feasibility study were completed and relied upon to make a production

decision. Telson has completed a preliminary economic assessment (“PEA”) mining study on the Campo M orado mine

that provides a conceptual life of mine plan and a preliminary economic analysis based on the previously identified

mineral resources (see News Release dated November 8, 2017, and April 4,2018).

Statements contained in this news release that are not historical facts are “forward- looking information” or “forward -

looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities

laws. Forward Looking Information includes, but is not limited to, disclosure regarding the planned recommencement

of mining operations at Campo Morado; and other possible events, conditions or financial performance that are based

on assumptions about future economic conditions and courses of action; the timing and costs of future activities on the

Company’s properties, such as production rates and increases; success of exploration, development and bulk sample

processing activities, and timing for processing at its own mineral processing facility on the Tahuehueto project site. In

certain cases, Forward- Looking Information can be identified using words and phrases such as “plans,” “expects,”

“scheduled,” “estimates,” “forecasts,” “intends,” “anticipates” or variations of such words and phrases. In preparing the

Forward-Looking Information in this news release, the Company has applied several material assumptions, including,

but not limited to, that the current exploration, development, environmental and other objectives concern ing the

Campo Morado Mine and the Tahuehueto Project can be achieved; that recommencement of operations at Campo

Morado will proceed as planned; the continuity of the price of gold and other metals, economic and political conditions,

and operations. Forward-Looking Information involves known and unknown risks, uncertainties and other factors which

may cause the actual results, performance, or achievements of the Company to be materially different from any future

results, performance or achievements expresse d or implied by the Forward- Looking Information. There can be no

assurance that Forward-Looking Information will prove to be accurate, as actual results and future events could differ

materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on Forward-

Looking Information. Except as required by law, the Company does not assume any obligation to release publicly any

revisions to Forward -Looking Information contained in this news release to reflect events or ci rcumstances after the

date hereof or to reflect the occurrence of unanticipated events.

Neither 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.

Altaley Mining Corporation

1000 – 1111 Melville Street

Vancouver, BC, V6E 3V6,

Canada

TSX.V: ATLY

Page 4 of 4

* Please refer to section “7 – Non GAAP measures” of the MD&A

For further information about Altaley Mining Corporation, please contact:

Glen Sandwell

Corporate Communications Manager

[email protected]

Tel: +1 (604) 684-8071