Mr. Alberto Morales reports

ANDEAN PRECIOUS METALS REPORTS Q1 2023 RESULTS

Andean Precious Metals Corp. has released its operating and financial results for the three months ended March 31, 2023. All amounts are expressed in U.S. dollars unless otherwise noted.

First quarter 2023 highlights

Three months ended March 31, 2023, versus three months ended March 31, 2022:

• The company achieved zero lost-time injuries (LTI) and achieved a significant safety milestone of 1,158,000 operating hours with no LTI;
• Produced 1.0 million silver equivalent ounces compared with 1.2 million silver equivalent ounces;
• Revenue decreased by 23 per cent to $23.0-million due to an 18-per-cent decline in production volume and a 6-per-cent reduction in the average realized price of silver per ounce;
• Cost of sales of $21.2-million increased by 3 per cent from $20.6-million;
• Income from mine operations was $400,000 compared with $6.4-million;
• Net income was $200,000 compared with net income of $2.3-million in the prior year;
• Earnings before interest, taxes, depreciation and amortization and adjusted earnings before interest, taxes, depreciation and amortization of $1.5-million and $1.4-million, respectively, compared with $8.1-million and $6.6-million, respectively, in Q1 2022;
• All-in sustaining costs (AISC) per silver ounce sold of $24.27 compared with full-year 2023 guidance of $19.50 to $20.30 per ounce; planned production increases anticipated for the second half of 2023 are expected to decrease average AISC during 2023;
• The company continues to expect silver equivalent production for 2023 to be between 4.8 million and 5.2 million ounces at a total average AISC of $19.50 to $20.30 per ounce;
• Debt-free balance sheet with cash and cash equivalents of $75.8-million and marketable securities of $6.1-million;
• Net cash flow used in operating activities for Q1 2023 was $4.3-million, primarily due to the working capital movements arising from timing of some vendor payments;
• During Q1 2023, pursuant to its normal course issuer bid, the company repurchased and cancelled 627,100 shares totalling $400,000;
• The company continues to advance the silver recovery project at its fines disposal facility;
• The company recently received the responsible minerals initiative certification and the environmental management system Standard ISO 14001:2015 certification; the company is committed to working to achieve high environmental, social and corporate governance (ESG) standards, and is implementing several community programs, while continuing to develop a broader framework and policies; the company will continue to develop a broader ESG program, including reporting aligned with definitions from the World Economic Forum, and identifying its contributions to the United Nations Sustainable Development Goals over the rest of fiscal 2023.

"The market volatility and inflationary pressures experienced in 2022 persisted throughout the first quarter and is expected to continue during the current year. We are nonetheless reaffirming our 2023 guidance based on the progress we are making at site and our planned strategies to increase operational efficiencies. Our industry consultants continue to review our operations for the purpose of further optimizing production and improving recoveries throughout the course of the year," stated Alberto Morales, executive chairman and chief executive officer of Andean Precious.

Mr. Morales continued: "Moreover, our top priority is to extend the mine life at San Bartolome by both pursuing contract opportunities with new third party feed material providers and bringing the tailings material into production. After some delays, the tailings review is advancing, and, subject to completion of the final feasibility studies and board approval, we could be targeting to begin production of the fines deposit facility material in the first half of 2024. Simultaneous with improving the performance of our flagship asset in Bolivia, our focus is growth. We continue to evaluate potential acquisition targets in the wider Americas, and have narrowed potential targets to a short list, diversifying our geographic and production risk as we look to achieve our vision of becoming a multijurisdictional mid-tier producer."

Fiscal 2023 guidance

An attached table sets out Andean Precious's first quarter results against its full-year 2023 guidance.

Recent developments

In April, 2023, the company entered silver collar contracts with an average put strike price of $23 per ounce and an average call strike price of $30 per ounce, for 200,000 ounces per month beginning August, 2023, through to December, 2023.

This news release should be read together with Andean Precious's management's discussion and analysis and condensed interim consolidated financial statements for the three months ended March 31, 2023, and 2022, which are available on Andean Precious's website or under Andean Precious's profile on SEDAR.

Q1 2023 webcast

Management will host a webcast tomorrow morning to discuss the company's Q1 2023 financial and operating results. A question-and-answer session will follow management's prepared remarks. Details of the webcast are as follows.

Date and time:  Thursday, May 25, 2023, at 9 a.m. ET

Registration:  Please preregister for the webcast.

Registration is open now and will be available up and until the date and time of the webcast.

Webcast access:  Upon registration, participants will receive an automatic e-mail from Zoom with a link to view the webcast.

To listen the live webcast of the earnings call, please connect at least 15 minutes prior to the start time to ensure adequate time for any software download that may be required to join the webcast.

Replay:  A replay of the webcast will be available within approximately 48 hours after the live event at the company's website.

Qualified person statement

The scientific and technical content disclosed in this press release was reviewed and approved by Donald J. Birak, independent consulting geologist to the company, a qualified person as defined by National Instrument 43-101 (Standards of Disclosure for Mineral Projects), registered member, Society for Mining, Metallurgy and Exploration (SME), fellow, Australasian Institute of Mining and Metallurgy (AusIMM).

About Andean Precious Metals Corp.

Andean Precious is a growth-focused precious metal producer that owns and operates the San Bartolome project located in the department of Potosi, Bolivia. San Bartolome has been operating continuously since 2008, producing an average of five million ounces of silver equivalent per year. The company is seeking accretive growth opportunities in Bolivia and the wider Americas. Andean Precious is committed to fostering safe, sustainable and responsible operations.

We seek Safe Harbor.