Mr. Alberto Morales reports

ANDEAN PRECIOUS METALS PROVIDES UPDATE FOLLOWING FIRE AT GOLDEN QUEEN'S SECONDARY CRUSHER CIRCUIT

Andean Precious Metals Corp. has provided an update on the previously reported fire at its Golden Queen operation in California.

The fire, which was reported on Dec. 13, 2023, at approximately 9 p.m. PT, occurred within the secondary crusher circuit perimeter and more specifically in the screen deck area. The fire was mostly contained and under control within the following hour. Crisis management procedures were activated. Everyone was evacuated from the fire area to a safe location and first responders promptly contacted.

"The company extends its thanks to the first responders who contained the fire and helped to protect our employees and contractors," said Alberto Morales, executive chairman and chief executive officer of Andean.

Mr. Morales continued: "There were no injuries, thanks to well-executed emergency protocols. We commend our team for their quick response the night of the fire as well as their ongoing efforts to ensure business continuity. While we expect lower production in the first quarter, Golden Queen's full-year production is not anticipated to be materially affected by the fire. Our 2024 guidance will be outlined at the end of March, when we announce our 2023 financial and operating results."

Golden Queen's operations continue

The secondary crusher circuit will be out of service for approximately two months, while mining operations continue. The ore stockpiled will be subsequently processed to fully utilize the crushing circuit's capacity, thereby mitigating anticipated lower production during the first quarter of 2024. In the interim, the leaching pad and Merrill Crowe plant are operating at reduced processing recovery levels due to ore placement on the leach pad that is temporarily halted. To mitigate production losses, the company has installed a portable crusher that should support 60 per cent of normal operating set point.

Cost estimate

The company has received approval from the insurance broker to proceed with the repairs. The preliminary cost estimate in the range of $3-million (U.S.) to $3.4-million (U.S.) includes costs to repair the crusher circuit as well as expenses associated with rental equipment required until normal operations are resumed.

About Andean Precious Metals Corp.

Andean is a growing precious metals producer focused on expanding into top-tier jurisdictions in the Americas. The company owns and operates the San Bartolome processing facility in Potosi, Bolivia, and the Soledad Mountain mine in Kern county, California, and is well financed to act on future growth opportunities. Andean's leadership team is committed to: creating value; fostering safe, sustainable and responsible operations; and achieving its ambition to be a multiasset, mid-tier precious metals producer.

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