TXG.TO · 2024-03-26 12:00:00

Torex Gold Reports Year-End 2023 Reserves & Resources Drilling significantly expands mineral resources at ELG Underground and EPO

Resource Estimates

Torex Gold Reports Year-End 2023 Reserves &

Resources

Drilling significantly expands mineral resources at ELG

Underground and EPO

(All amounts expressed in U.S. dollars unless otherwise stated)

Toronto, Ontario--(Newsfile Corp. - March 26, 2024) - Torex Gold Resources Inc. (the "Company" or

"Torex") (TSX: TXG) is pleased to report year-end 2023 mineral reserves and resources for the Morelos

Complex, which includes the producing El Limón Guajes ("ELG") Mine Complex (consisting of the ELG

Open Pits and ELG Underground), advanced development phase Media Luna deposit, pre-development

phase EPO deposit, and surface stockpiles.

Table 1: Year-over-year comparison of mineral reserves & mineral resources for the Morelos Complex

December 31, 2023

December 31, 2022

Variance

Tonnes

AuEq

Tonnes

AuEq

Tonnes

AuEq

(kt)

(gpt)

(koz)

(kt)

(gpt)

(koz)

(kt)

(gpt)

(koz)

Proven & Probable Reserves

Media Luna Underground

23,569

4.43

3,360

23,017

4.54

3,360

(2%)

ELG Underground

3,504

5.81

654

2,563

6.17

508

37%

(6%)

29%

ELG Open Pit

5,553

3.16

565

8,403

3.27

885

(34%)

(3%)

(36%)

Surface Stockpiles

4,972

1.20

192

4,655

1.30

195

(8%)

(1%)

Total Morelos Complex

37,598

3.95

4,771

38,638

3.98

4,947

(3%)

(1%)

(4%)

Measured & Indicated Resources

Media Luna Underground

27,451

5.23

4,618

27,390

5.30

4,669

(1%)

ELG Underground

8,176

5.48

1,441

5,016

6.26

1,009

63%

(12%)

43%

EPO Underground

6,979

5.14

1,153

4,050

5.16

671

72%

(0%)

72%

ELG Open Pit

6,110

3.13

615

11,304

3.08

1,119

(46%)

(45%)

Total Morelos Complex

48,717

5.00

7,828

47,760

4.86

7,468

Inferred Resources

Media Luna Underground

7,330

4.25

1,001

7,322

4.27

1,006

(1%)

(0%)

ELG Underground

2,396

5.28

407

1,480

6.05

288

62%

(13%)

41%

EPO Underground

4,960

4.52

721

5,634

4.04

732

(12%)

12%

(1%)

ELG Open Pit

399

2.08

1,385

1.95

(71%)

(69%)

Total Morelos Complex

15,085

4.45

2,156

15,821

4.15

2,112

(5%)

Notes to Table:

Gold equivalent (AuEq) mineral reserves and resources take into account respective metal prices and metallurgical recoveries for gold,

silver, and copper (see Table 3 and Table 5).

Mineral resources are reported inclusive of mineral reserves.

The reader is cautioned not to misconstrue this tabulation as a mineral reserve or a mineral resource statement. Tonnes, grades, and

contained metal are shown for comparison purposes only.

Year-end mineral reserves and resources as well as year-over-year variance subject to rounding.

Gold equivalent ("AuEq") mineral reserves and mineral resources take into account respective metal

prices and metallurgical recoveries for gold ("Au"), silver ("Ag"), and copper ("Cu") by deposit. Metal

prices used to estimate mineral reserves and mineral resources have increased by $100/oz for Au,

$2.00/oz for Ag and $0.25/lb for Cu relative to year-end 2022, reflecting continued strength in underlying

metal prices. These prices are in line with the mid-point of metal prices used by precious metal peers.

Jody Kuzenko, President & CEO of Torex, stated:

"A key strategic focus for Torex is to grow reserves and resources and our 2023 drilling program was

very successful in this regard. The results delivered in 2023 continue to bolster confidence that we will

achieve our goal to maintain annual AuEq production of more than 450,000 ounces ("oz") beyond 2027

and extend the overall life of our Morelos assets well beyond 2033.

"At ELG Underground, Proven and Probable reserves increased to 654 koz AuEq, which now sees us

with a reserve life out to late 2028. Measured and Indicated resources expanded by 432 koz AuEq (570

koz AuEq prior to mined depletion), while Inferred resources increased by 119 koz AuEq. Resource

growth was a direct result of successful drilling as well as the assumption of a lower cut-off grade,

reflecting higher metal price assumptions and lower costs due to steady increases in underground

mining rates.

"At EPO, infill drilling was successful in upgrading Inferred resources, while step-out drilling expanded

the overall mineralized footprint. Indicated resources increased by 481 koz AuEq to 1,153 koz at year

end, surpassing even our aggressive target of one million AuEq ounces. The updated resource will form

the basis of an internal prefeasibility study to be completed in the second half of 2024.

"Our strategy to grow reserves and resources has been supported with meaningful investment, with an

average of $31 million invested annually for each of the last 3 years, reflecting the strategic pivot towards

drilling made in 2020. Since releasing the March 2022 Technical Report, we have increased our

Measured and Indicated resource

base by 1,979 koz AuEq (prior to mined depletion) over the last two

years and strengthened the production profile by increasing our Proven and Probable reserves by 719

koz AuEq (prior to processed depletion) over the same period. The ongoing success demonstrates the

significant mineral endowment at Morelos and the potential to generate significant shareholder value

from Morelos far into the future."

Detailed breakdowns of mineral reserve and mineral resource estimates can be found in Table 7 and

Table 8 of this press release. The detailed breakdowns include tonnes, grade, and contained metal

estimates by metal as well as notes accompanying the applicable mineral reserve and resource

estimates.

Measured and Indicated resources are reported inclusive of Proven and Probable reserves. For more

information on the changes in Measured and Indicated mineral resources and Proven and Probable

mineral reserves for the year ended December 31, 2022, see news release titled "Torex Gold Reports

Year-End 2022 Reserves & Resources" dated March 28, 2023 filed on SEDAR+ at

www.sedarplus.ca

and the Company's website at

www.torexgold.com

PROVEN & PROBABLE MINERAL RESERVES

Total Proven and Probable reserves are estimated at 4,771 koz AuEq at an average grade of 3.95 gpt,

representing a 4% decrease relative to year-end 2022 reserves of 4,947 koz AuEq at 3.98 gpt. Prior to

depletion (processed), reserves increased 350 koz AuEq (+7%). Of the Proven and Probable reserves

at year-end 2023, 71% of the AuEq estimate is attributable to Au, 24% to Cu, and 5% to Ag.

Table 2: Year-over-year change in Proven & Probable mineral reserves

December 31, 2023

Variance (2023 / 2022)

Tonnes

AuEq

Tonnes

AuEq

(kt)

(koz)

(Mlb)

(koz)

(kt)

(koz)

(Mlb)

(koz)

Proven & Probable Reserves

Media Luna

Underground

23,569

2,050

18,877

448

3,360

552

(27)

(67)

ELG Underground

3,504

594

867

654

941

114

269

146

ELG Open Pit

5,553

552

851

565

(2,850)

(311)

(344)

(5)

(320)

Surface Stockpiles

4,972

187

443

192

317

(1)

(27)

(3)

Total Morelos

Complex

37,598

3,384

21,038

502

4,771

(1,040)

(225)

(168)

(176)

Change - Net (%)

(3%)

(6%)

(1%)

(4%)

Change in Reserves Prior to Depletion

Ore Processed

(4,810)

(509)

(572)

(15)

(526)

Reserves - Added /

Lost

3,770

284

404

350

Change - Prior to Depletion (%)

10%

Notes to Table:

AuEq mineral reserves take into account respective metal prices and metallurgical recoveries for Au, Ag, and Cu (see Table 3).

Ore processed (depletion) in 2023 on a AuEq basis assumes respective based on prices and recoveries used at year-end 2022.

Year-end mineral reserves and year-over-year variance (2023 versus 2022) subject to rounding.

During 2023, 67% of the 526 koz AuEq depleted (processed) was replaced, driven by drilling success

(gain of 148 koz), block model updates (gain of 105 koz), lower cut-off grade in ELG Underground (gain

of 86 koz), and other changes (gain of 11 koz).

The decline in ELG Open Pits primarily reflects depletion (389 koz AuEq) partially offset by optimizations

carried out to the block model during 2023.

At ELG Underground, Proven and Probable reserves increased 146 koz AuEq net of depletion of 134

koz AuEq (280 koz prior to depletion), with 129 koz added through drilling, 86 koz added via a lower cut-

off grade (reflecting higher metal prices and lower unit costs), and 65 koz added through block model

optimizations.

At Media Luna, Proven and Probable reserves primarily reflect changes to Measured and Indicated

resources delivered during 2022 as these results were not available to be incorporated into the year-end

2022 update. Modestly higher tonnes at modestly lower Au, Ag, and Cu grades reflect the conversion of

Probable reserves to the Proven category (following resources upgraded to the Measured category

during 2022), refinements to the block model carried out during 2023, and the benefit of additional

Probable reserves (reflecting resources upgraded to the Indicated category during 2022). The impact of

these changes on a AuEq basis was offset by the higher relative contribution of Cu and Ag on AuEq

reserves given higher metal prices used for Cu (+8%) and Ag (+12%) relative to the higher price used

for Au (+7%).

Metal prices used in the estimation of mineral reserves have increased relative to year-end 2022. Higher

metallurgical recoveries for ELG Underground reflect the increased proportion of reserves to be

processed through the upgraded processing plant starting in late 2024 relative to the proportion

anticipated at year-end 2022, including improved Cu and Ag recoveries due to the installation of copper

and iron sulfide flotation circuits as part of the Media Luna Project.

Table 3: Metal price and metallurgical recovery assumptions used in the estimation of mineral reserves

Mineral Reserves

December 31, 2023

December 31, 2022

Variance

Metal Prices

($/oz)

($/lb)

($/oz)

($/lb)

($/oz)

($/lb)

Media Luna Underground

$1,500

$19.00

$3.50

$1,400

$17.00

$3.25

$100

$2.00

$0.25

ELG Underground

$1,500

$19.00

$3.50

$1,400

$17.00

$3.25

$100

$2.00

$0.25

ELG Open Pit

$1,500

$19.00

$3.50

$1,400

$17.00

$3.25

$100

$2.00

$0.25

Surface Stockpiles

$1,500

$19.00

$3.50

$1,400

$17.00

$3.25

$100

$2.00

$0.25

Metallurgical Recoveries

(%)

Media Luna Underground

90%

86%

93%

85%

79%

91%

ELG Underground

90%

86%

93%

90%

62%

63%

24%

30%

ELG Open Pit

89%

30%

15%

89%

30%

23%

(8%)

Surface Stockpiles

89%

30%

15%

89%

30%

23%

(8%)

The impact of updated AuEq formulas on AuEq values (incorporating higher metal prices and updated

metallurgical recoveries) on Proven and Probable reserves is negligible when comparing year-end Au,

Ag, and Cu reserves assuming the AuEq formulas used at year-end 2022.

MEASURED & INDICATED MINERAL RESOURCES

Measured and Indicated mineral resources are estimated at 7,828 koz AuEq at an average grade of

5.00 gpt, representing a 5% increase relative to the 7,468 koz AuEq at 4.86 gpt at year-end 2022. Prior

to depletion, resources increased 901 koz AuEq (+12%). Of the Measured and Indicated resource at

year-end 2023, 67% of the AuEq estimate is attributable to Au, 27% to Cu, and 6% to Ag.

Table 4: Year-over-year change in Measured & Indicated mineral resources

December 31, 2023

Variance (2023 / 2022)

Tonnes

AuEq

Tonnes

AuEq

(kt)

(koz)

(Mlb)

(koz)

(kt)

(koz)

(Mlb)

(koz)

Measured & Indicated Resources

Media Luna

Underground

27,451

2,774

26,791

640

4,618

(22)

(376)

(5)

(51)

ELG Underground

8,176

1,285

2,002

1,441

3,160

369

698

432

EPO Underground

6,979

597

6,728

195

1,153

2,930

289

2,200

481

ELG Open Pit

6,110

602

929

615

(5,194)

(487)

(721)

(14)

(503)

Total Morelos

Complex

48,717

5,258

36,449

913

7,828

957

149

1,800

360

Change - Net (%)

Change in Resources Prior to Depletion

Ore Mined

(depletion)

(5,127)

(521)

(707)

(14)

(542)

Resources - Added /

Lost

6,084

670

2,507

901

Change - Prior to Depletion (%)

13%

12%

Notes to Table:

AuEq mineral resources take into account respective metal prices and metallurgical recoveries for Au, Ag, and Cu (see Table 5).

Measured & Indicated resources are inclusive of mineral reserves.

Ore mined (depletion) in 2023 on a AuEq basis assumes respective based on prices and recoveries used at year-end 2022.

Year-end mineral resources and year-over-year variance (2023 versus 2022) subject to rounding.

Overall, 542 koz AuEq depleted (mined) during 2023 was more than offset by drilling success (gain of

782 koz) and a lower cut-off grade in ELG Underground (gain of 208 koz), partially offset by block model

updates (decline of 56 koz) and other changes (decline of 33 koz).

At ELG Underground, Measured and Indicated resources increased 432 koz AuEq net of depletion of

138 koz (increase of 570 koz prior to depletion), with 301 koz added through drilling, 208 koz added via

a lower cut-off grade (reflecting higher metal prices and lower unit costs), and 62 koz added through

block model optimizations.

Measured and Indicated resources specific to Media Luna declined 51 koz AuEq, reflecting refined

geological interpretation related to dykes encountered during underground development.

Infill drilling at EPO was successful in further expanding the mineral endowment with infill drilling

increasing Indicated resources to 1,153 koz AuEq at a grade of 5.14 gpt compared to 671 koz AuEq at

5.16 gpt at year-end 2022. The updated resource, which surpassed the Company's target of one million

AuEq ounces, will form the basis of an internal prefeasibility study to be completed in the second half of

2024.

The increase in Au, Ag, and Cu prices used to estimate mineral resources mirrors the increase in metal

prices used to estimate mineral reserves year-over-year. Metallurgical recoveries used to estimate

mineral resources broadly reflect the assumptions used to estimate mineral reserves. Refined

metallurgical recoveries for EPO reflect the results of metallurgical studies completed as part of the

ongoing internal prefeasibility study.

Table 5: Metal price and metallurgical recovery assumptions used in the estimation of mineral resources

Mineral Resources

December 31, 2023

December 31, 2022

Variance

Metal Prices

($/oz)

($/lb)

($/oz)

($/lb)

($/oz)

($/lb)

Media Luna Underground

$1,650

$22.00

$3.75

$1,550

$20.00

$3.50

$100

$2.00

$0.25

ELG Underground

$1,650

$22.00

$3.75

$1,550

$20.00

$3.50

$100

$2.00

$0.25

EPO Underground

$1,650

$22.00

$3.75

$1,550

$20.00

$3.50

$100

$2.00

$0.25

ELG Open Pit

$1,650

$22.00

$3.75

$1,550

$20.00

$3.50

$100

$2.00

$0.25

Metallurgical Recoveries

(%)

Media Luna Underground

90%

86%

93%

85%

79%

91%

ELG Underground

90%

86%

93%

90%

86%

93%

EPO Underground

87%

85%

92%

85%

75%

89%

10%

ELG Open Pit

89%

30%

15%

89%

30%

23%

(8%)

The impact of updated AuEq formulas on AuEq values (incorporating higher metal prices and updated

metallurgical recoveries) on Measured and Indicated resources is minimal when comparing year-end

Au, Ag, and Cu resources assuming the AuEq formulas used at year-end 2022.

INFERRED MINERAL RESOURCES

Total Inferred resources are estimated at 2,156 koz AuEq at an average grade of 4.45 gpt, representing

a 2% increase relative to the 2,112 koz AuEq at 4.15 gpt at year-end 2022. Of the Inferred mineral

resource at year-end 2023, 60% of the AuEq estimate is attributable to Au, 33% to Cu, and 7% Ag.

Table 6: Year-over-year change in Inferred mineral resources

December 31, 2023

Variance (2023 / 2022)

Tonnes

AuEq

Tonnes

AuEq

(kt)

(koz)

(Mlb)

(koz)

(kt)

(koz)

(Mlb)

(koz)

Inferred Resources

Media Luna

Underground

7,330

598

5,408

142

1,001

(1)

(14)

(0)

(5)

ELG Underground

2,396

355

620

407

916

135

119

EPO Underground

4,960

318

5,908

136

721

(674)

(5)

240

(10)

ELG Open Pit

399

(986)

(59)

(81)

(1)

(60)

Total Morelos

Complex

15,085

1,297

11,955

297

2,156

(736)

280

(2)

Change - Net (%)

(5%)

(1%)

Notes to Table:

AuEq mineral resources take into account respective metal prices and metallurgical recoveries for Au, Ag, and Cu (see Table 5).

Year-end mineral resources and year-over-year variance (2023 versus 2022) subject to rounding.

At ELG Underground, drilling was successful in expanding Inferred resources by 119 koz AuEq after

taking into account the significant proportion of Inferred resources upgraded to the Measured and

Indicated categories during the year.

At EPO, step-out drilling helped offset a majority of Inferred resources upgraded to the Indicated

category through infill drilling in 2023.

The impact of updated AuEq formulas on AuEq values (incorporating higher metal prices and updated

metallurgical recoveries) on Inferred resources is minimal and estimated at 12 koz AuEq when

comparing year-end Au, Ag, and Cu resources assuming the AuEq formulas used at year-end 2022. The

impact was most noticeable at EPO given higher metallurgical recoveries for Ag and Cu relative to Au.

QUALITY ASSURANCE/QUALITY CONTROL

Torex maintains an industry-standard analytical quality assurance/quality control (QA/QC) and data

verification program to monitor laboratory performance and to ensure high quality assay results. Results

from this program confirm reliability of the assay results. All sampling is conducted by Torex Gold with

analytical work for exploration programs at El Limón Guajes performed by SGS de Mexico S.A. de C.V.

("SGS") in Durango, and by SGS in Nuevo Balsas, Mexico (each lab is independent of the Company).

Gold analyses comprise fire assays with atomic absorption or gravimetric finish. External check assays

for QA/QC purposes are performed by ALS Chemex de Mexico S.A. de C.V. (independent of the

Company). The analytical QA/QC program at El Limón Guajes is currently overseen by Carlo Nasi, Chief

Mine Geologist for Minera Media Luna, S.A. de C.V.

Torex has a sampling and analytical QA/QC program in place that has been approved by Bureau Veritas

("BV") and is overseen by Fernando Viera, Geologist, Modeling and Resource Estimation for Minera

Media Luna, S.A. de C.V. The program includes 5% each of Certified Reference Materials and Blanks;

blind duplicates are not included, but Torex evaluates the results of internal BV laboratory duplicates.

Torex uses an independent laboratory to check selected assay samples and reference materials and

has retained a consultant to audit the QA/QC data for every drill campaign at Media Luna Cluster (Media

Luna

and EPO).

QUALIFIED PERSONS

Carolina Milla, P.Eng., is the qualified person under NI 43-101 and she has reviewed and approved the

scientific and technical information pertaining to mineral resources in this news release. Ms. Milla is a

member of the Association of Professional Engineers and Geoscientists of Alberta (Member ID

#168350), has experience relevant to the style of mineralization under consideration, is a qualified

person under NI 43-101, and is an employee of Torex. Ms. Milla has verified the data disclosed,

including sampling, analytical, and test data underlying the drill results; verification included visually

reviewing the drill holes in three dimensions, comparing the assay results to the original assay

certificates, reviewing the drilling database, and reviewing core photography consistent with standard

practice.

The scientific and technical data contained in this news release pertaining to mineral reserves have

been reviewed and approved by Johannes (Gertjan) Bekkers P.Eng., the Vice-President, Mines

Technical Services for Torex Gold, who is a qualified person as defined by NI 43-101. Mr. Bekkers is a

registered member of the Professional Engineers of Ontario, has worked the majority of his career in

open pit and underground hard rock mining in Canada and overseas in progressively senior engineering

roles with relevant experience in mine design and planning, mining economic viability assessments, and

mining studies.

Additional information on the Morelos Complex including, but not limited to, sampling and analyses,

analytical labs, and methods used for data verification is available in the Company's most recent annual

information form ("AIF") dated March 30, 2023 and the technical report entitled "Morelos Property, NI 43-

101 Technical Report, ELG Mine Complex Life of Mine Plan and Media Luna Feasibility Study, Guerrero

State, Mexico", dated effective March 16, 2022 filed on March 31, 2022 (the "Technical Report") on

SEDAR+ at

www.sedarplus.ca

and the Company's website at

www.torexgold.com

ABOUT TOREX GOLD RESOURCES INC.

Torex is an intermediate gold producer based in Canada, engaged in the exploration, development, and

operation of its 100% owned Morelos Property, an area of 29,000 hectares in the highly prospective

Guerrero Gold Belt located 180 kilometres southwest of Mexico City. The Company's principal asset is

the Morelos Complex, which includes the El Limón Guajes ("ELG") Mine Complex, the Media Luna

Project, a processing plant, and related infrastructure. Commercial production from the Morelos

Complex commenced on April 1, 2016, and an updated Technical Report for the Morelos Complex was

released in March 2022. Torex's key strategic objectives are to integrate and optimize its Morelos

Property, deliver Media Luna to full production, grow reserves and resources, retain and attract best

industry talent, and build on ESG excellence.

FOR FURTHER INFORMATION, PLEASE CONTACT:

TOREX GOLD RESOURCES INC.

Jody Kuzenko

President and CEO

Direct: (647) 725-9982

[email protected]

Dan Rollins

Senior Vice President, Corporate Development & Investor Relations

Direct: (647) 260-1503

[email protected]

CAUTIONARY NOTES ON FORWARD-LOOKING STATEMENTS

This press release contains "forward-looking statements" and "forward-looking information" within the

meaning of applicable Canadian securities legislation. Forward-looking information also includes, but is

not limited to, statements about: a key strategic focus for Torex is to grow reserves and resources; the

results delivered in 2023 continue to bolster confidence that the company will achieve its goal to maintain

annual AuEq production of more than 450,000 ounces beyond 2027 and extend the overall life of the

Morelos Property well beyond 2033; at ELG Underground, Proven and Probable reserves increased to

654 koz AuEq, which now sees the Company with a reserve life out to late 2028; the updated EPO

resource will form the basis of an internal prefeasibility study to be completed in the second half of 2024;

the ongoing success demonstrates the significant mineral endowment at Morelos and the potential to

generate significant shareholder value from that asset far into the future; and the Company's key

strategic objectives are to integrate and optimize its Morelos Property, deliver Media Luna to full

production, grow reserves and resources, retain and attract best industry talent and build on ESG

excellence. Generally, forward-looking information can be identified by the use of forward-looking

terminology such as "strategy", "focus", "potential" or variations of such words and phrases or

statements that certain actions, events or results "will", or "is expected to" occur. Forward-looking

information is subject to known and unknown risks, uncertainties and other factors that may cause the

actual results, level of activity, performance or achievements of the Company to be materially different

from those expressed or implied by such forward-looking information, including, without limitation, risks

and uncertainties associated with: the ability to add mineral resources, the ability to upgrade mineral

resources categories of mineral resources with greater confidence levels or to mineral reserves; risks

associated with mineral reserve and mineral resource estimation; and those risk factors identified in the

Technical Report and the Company's annual information form and management's discussion and

analysis or other unknown but potentially significant impacts. Forward-looking information is based on

the assumptions discussed in the Technical Report and such other reasonable assumptions, estimates,

analysis and opinions of management made in light of its experience and perception of trends, current

conditions and expected developments, and other factors that management believes are relevant and

reasonable in the circumstances at the date such statements are made. Although the Company has

attempted to identify important factors that could cause actual results to differ materially from those

contained in the forward-looking information, there may be other factors that cause results not to be as

anticipated. There can be no assurance that such information will prove to be accurate, as actual results

and future events could differ materially from those anticipated in such information. Accordingly, readers

should not place undue reliance on forward-looking information. The Company does not undertake to

update any forward-looking information, whether as a result of new information or future events or

otherwise, except as may be required by applicable securities laws.

Table 7: Mineral Reserve Estimate — Morelos Complex (December 31, 2023)

Tonnes

AuEq

(kt)

(gpt)

(%)

(koz)

(Mlb)

(gpt)

(koz)

Media Luna Underground

Proven

2,001

4.28

33.1

1.09

276

2,129

6.48

417

Probable

21,568

2.56

24.2

0.84

1,775

16,749

401

4.24

2,943

Proven & Probable

23,569

2.71

24.9

0.86

2,050

18,877

448

4.43

3,360

ELG Underground

Proven

1,497

5.77

8.0

0.30

277

385

6.28

302

Probable

2,007

4.91

7.5

0.29

317

482

5.46

352

Proven & Probable

3,504

5.28

7.7

0.30

594

867

5.81

654

ELG Open Pit

Proven

1,813

4.30

5.4

0.16

251

313

4.36

254

Probable

3,741

2.51

4.5

0.20

302

538

2.58

310

Proven & Probable

5,553

3.09

4.8

0.18

552

851

3.16

565

Surface Stockpiles

Proven

4,972

1.17

2.8

0.07

187

443

1.20

192

Probable

Proven & Probable

4,972

1.17

2.8

0.07

187

443

1.20

192

Total Morelos Complex

Proven

10,283

3.00

9.9

0.32

991

3,269

3.52

1,165

Probable

27,316

2.73

20.2

0.71

2,393

17,769

430

4.11

3,606

Proven & Probable

37,598

2.80

17.4

0.61

3,384

21,038

502

3.95

4,771

Notes to accompany the mineral reserve table:

Mineral reserves were developed in accordance with CIM (2014) guidelines.

Rounding may result in apparent summation differences between tonnes, grade, and contained metal content. Surface stockpile mineral

reserves are estimated using production and survey data and apply the same gold equivalent ("AuEq") formula as ELG Open Pits.

AuEq of total reserves is established from combined contributions of the various deposits.

The qualified person for the mineral reserve estimate is Johannes (Gertjan) Bekkers, P. Eng., VP of Mines Technical Services.

The qualified person is not aware of mining, metallurgical, infrastructure, permitting, or other factors that materially affect the mineral reserve

estimates.

Notes to accompany the Media Luna Underground mineral reserves:

Mineral reserves are based on Media Luna Measured & Indicated mineral resources with an effective date of December 31, 2023.

Media Luna Underground mineral reserves are reported above an in-situ ore cut-off grade of 2.4 g/t AuEq.

Media Luna Underground cut-off grades and mining shapes are considered appropriate for a metal price of $1,500/oz gold ("Au"), $19/oz

silver ("Ag") and $3.50/lb copper ("Cu") and metal recoveries of 90% Au, 86% Ag, and 93% Cu.

Mineral reserves within designed mine shapes assume long-hole open stoping, supplemented with mechanized cut-and-fill mining and

includes estimates for dilution and mining losses.

Media Luna Underground AuEq = Au (g/t) + Ag (g/t) * (0.0121) + Cu (%) * (1.6533), accounting for metal prices and metallurgical recoveries.

Notes to accompany the ELG Underground mineral reserves:

Mineral reserves are founded on Measured and Indicated mineral resources, with an effective date of December 31, 2023, for ELG

Underground (including Sub-Sill, El Limón Deep and El Limón Sur Trend deposits).

ELG Underground mineral reserves are reported above an in-situ ore cut-off grade of 2.8 g/t AuEq and an in-situ incremental cut-off grade

of 1.6 g/t AuEq.

Cut-off grades and mining shapes are considered appropriate for a metal price of $1,500/oz gold ("Au"), $19/oz silver ("Ag") and $3.50/lb

copper ("Cu") and metal recoveries of 90% Au, 86% Ag, and 93% Cu, accounting for the planned copper concentrator.

Mineral reserves within designed mine shapes assume mechanized cut and fill mining method and include estimates for dilution and mining

losses.

Mineral reserves are reported using an Au price of US$1,500/oz, Ag price of US$19/oz, and Cu price of US$3.50/lb.

ELG Underground AuEq = Au (g/t) + Ag (g/t) * (0.0121) + Cu (%) * (1.6533), accounting for metal prices and metallurgical recoveries.

Notes to accompany the ELG Open Pit mineral reserves and Surface Stockpiles:

Mineral reserves are founded on Measured and Indicated mineral resources, with an effective date of December 31, 2023, for El Limón and

El Limón Sur deposits.

ELG Open Pit mineral reserves are reported above an in-situ cut-off grade of 1.2 g/t Au.

ELG Low Grade mineral reserves are reported above an in-situ cut-off grade of 0.88 g/t Au.

It is planned that ELG Low Grade mineral reserves within the designed pits will be stockpiled during pit operation and processed during pit

closure.

Mineral reserves within the designed pits include assumed estimates for dilution and ore losses.

Cut-off grades and designed pits are considered appropriate for a metal price of $1,500/oz Au and metal recovery of 89% Au.

Mineral reserves are reported using an Au price of US$1,500/oz, Ag price of US$19/oz, and Cu price of US$3.50/lb.

Average metallurgical recoveries of 89% for Au, 30% for Ag, and 15% for Cu.

ELG Open Pit (including surface stockpiles) AuEq = Au (g/t) + Ag (g/t) * (0.0043) + Cu (%) * (0.2697), accounting for metal prices and

metallurgical recoveries.

Table 8: Mineral Resource Estimate — Morelos Complex (December 31, 2023)

Tonnes

AuEq

(kt)

(gpt)

(%)

(koz)

(Mlb)

(gpt)

(koz)

Media Luna Underground

Measured

1,835

5.26

41.7

1.37

310

2,463

8.00

472

Indicated

25,616

2.99

29.5

1.04

2,463

24,328

585

5.03

4,146

Measured & Indicated

27,451

3.14

30.4

1.06

2,774

26,791

640

5.23

4,618

Inferred

7,330

2.54

23.0

0.88

598

5,408

142

4.25

1,001

ELG Underground

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