Mr. Alberto Morales reports

ANDEAN PRECIOUS METALS FILES NI 43-101 TECHNICAL REPORT FOR GOLDEN QUEEN MINING'S SOLEDAD MOUNTAIN OPERATION

Andean Precious Metals Corp. has released updated mineral reserve and mineral resource estimates (MR&RE) for its wholly owned subsidiary, Golden Queen Mining LLC, which operates the Soledad Mountain mine and heap leach operation in Kern county, Southern California. (All amounts are in United States dollars unless otherwise stated.)

The MR&RE and feasibility study update technical report on the Soledad Mountain heap leach project, dated Jan. 12, 2024, were prepared by Kappes, Cassiday & Associates (KCA), Independent Mining Consultants Inc. (IMC), RESPEC Company LLC and George Klemmick (AIPG certified professional geologist, consulting geologist). The technical report was prepared in compliance with National Instrument 43-101 -- Standards for Disclosure for Mineral Projects (NI 43-101) and has been filed on SEDAR+.

"We are pleased that the mineral reserve and resource estimates for Soledad Mountain fully met our base case expectations," stated Alberto Morales, executive chairman and chief executive officer of Andean. "With an updated mineral reserve and resource in hand, our team is focused on enhancing and growing the recently acquired Soledad Mountain mine. We are now identifying near-term and sustainable opportunities to optimize mine operations and production to improve margins, cash flow and costs per ounce. We are also defining and prioritizing exploration targets to help realize the potential upside at Soledad Mountain and add to the operation's life of mine.

"We see many opportunities at Soledad Mountain and look forward to realizing the project's potential to be a growth catalyst in the U.S., one of the world's leading mining jurisdictions."

Soledad Mountain MR&RE highlights

• Gold (Au):
  • M&I resources of 41.8-million (M) tonnes grading 0.62 gram per tonne (g/t) Au for a total of 822,000 contained oz;
  • P&P reserves of 21.0 M tonnes grading 0.72 g/t Au for a total of 484,675 contained oz;
  • Inferred resources of 3.6 M tonnes grading 0.45 g/t for a total of 53,000 contained oz.
• Silver (Ag):
  • M&I resources of 41.8 M tonnes grading 8.37 g/t Ag for a total of 11.24 M contained oz;
  • P&P reserves of 21.0 M tonnes grading 10.15 g/t Ag for a total of 6.85 M contained oz;
  • Inferred resources of 3.6 M tonnes grading 6.27 g/t Ag for a total of 730,000 contained oz.

* Mineral resources are inclusive of reserves. See appendix for further tables and notes.

• Life of mine (LOM): five years from 2P mineral reserves;
• LOM average annual production: up to 65 Koz (thousand ounces) of gold and 466 Koz of silver;
• Total production: 373 Koz Au and 2.7 Moz Ag;
• Stripping ratio: 6.09:1 (waste tons: ore tons);
• Sustaining capital cost: $55.9-million;
• Project pretax and after-tax net present values of $116-million and $102-million, respectively, at a discount rate of 5 per cent with a gold price of $1,850/oz and a silver price of $24/oz;
• While stacking ore stops in 2029, work is expected to continue at site for approximately 35 to 40 years via the sale of waste rock for aggregate, construction and landscape material in the regional area.

Soledad Mountain MR&RE changes since 2022

Since 2022, the reported reserves and resources have dropped slightly due to depletion by mining and to a lesser extent due to a lower estimated recovery from the Silver Queen vein structure, which is one of the many mineralized vein zones on the property. The recovery change reflects production experience and new column leach tests. Production depletion was partially offset by higher metal price assumptions used in the estimation of mineral resources and reserves.

In terms of economics, an increase in mine sustaining capital was incorporated into the technical report to improve mining costs as compared to those in prior studies.

Mineral resource estimate methodology

The estimates of mineral resources are effective as of Sept. 30, 2023, and are presented in appendix -- Table 1 of this press release.

The gold and silver resources were modelled and estimated by:

• Evaluating the drill data statistically and spatially to determine natural gold and silver populations;
• Explicitly modelling low-, medium- and high-grade mineral-domain polygons for both gold and silver on sets of cross sections spaced at 50- and 100-foot intervals;
• Projecting the cross-sectional mineral domain polygons horizontally to the drill data within each cross-sectional window;
• Slicing the three-dimensionally projected mineral domain polygons along 20-foot-spaced horizontal planes and using them to guide refinement of the gold and silver mineral domain polygons on a set of 20-foot-spaced level plans;
• Coding a block model comprised of 20 by 20 by 20 ft blocks to the gold and silver mineral domains for each of the two deposit areas using the level plan mineral domain polygons;
• Analyzing the modeled mineralization geostatistically to aid in the establishment of estimation and classification parameters;
• Interpolating gold and silver grades into the block model by inverse-distance to the third power, using the coded gold and silver mineral domain percentages to constrain the grade estimations.

Mineral reserves estimate methodology

The estimates of mineral reserves are effective as of Sept. 30, 2023, and are presented in appendix -- Table 2 of this press release.

The following process and modifying factors were followed to calculate the mineral reserves:

• Selection of metal selling prices based on historical and projected prices;
• Review of all modifying factors including metal prices, costs, dilution, mining recovery, processing recovery, sustaining capital, royalties and mining methods;
• Dilution is built into the model and no additional dilution is required;
• Pit optimization using all modifying factors;
• Pit design following geotechnical recommendations;
• Mine production schedules for the life of the project, based on a combination of monthly, quarterly, semi-annual and annual periods;
• Cost model verification based on new mine schedule and inventory;
• Generation of post-tax cash flow.

Capital and operating cost estimates

The Soledad Mountain project has been in operation since early 2016 providing almost eight years of historical operating data for the site. Future mining and processing at the site have recently increased due to recent improvements in operation. The historical data and experience of the site personnel will provide the best estimate of future costs.

The heap leach pad has been expanded to its final size. The capital costs are summarized as shown in the attached table.

The capital costs are sustaining costs to rebuild and replace equipment and to replace the Merrill Crowe plant with a carbon adsorption circuit at closure.

The columns may not sum exactly due to rounding.

The operating costs are estimated to average $23.66 per ton, including mining, processing, G&A (general and administrative), and reclamation.

After-tax cash flow analysis

The Soledad Mountain project has pretax and after-tax net present values of $116-million and $102-million, respectively, at a discount rate of 5.0 per cent. The undiscounted, cumulative net cash flows for pretax and after-tax are approximately $145-million and $129-million, respectively. By comparison, at an 8.0-per-cent discount rate, the pretax and after-tax NPVs are $102-million and $89-million, respectively. Project cash flows are from Oct. 1, 2023, through to the end of 2030.

The contribution of gold, silver and aggregate to gross revenues is approximately 91.2 per cent, 8.6 per cent and 0.2 per cent respectively. The operating equivalent gold cash cost per ounce is $1,340/oz. The total cash costs per equivalent ounce including sustaining capital is $1,477/oz. Gold and silver prices used to model the cash flows were $1,850/oz and $24/oz, respectively.

The Soledad Mountain project is expected to generate positive cash flow in each year of production except 2026.

Qualified persons

These people served as the qualified persons for Golden Queen's Soledad Mountain operation as defined in NI 43-101 and have reviewed and approved this press release:

• Carl E. Defilippi, SME registered member, engineering manager, KCA, Reno, Nev.;
• Michael M. Gustin, AIPG certified professional geologist, RESPEC principal consultant;
• Joseph C. McNaughton, PE, partner, IMC, Tucson, Ariz.;
• George Klemmick, AIPG certified professional geologist, consulting geologist, Chugiak, Alaska.

Donald J. Birak, registered member, Society for Mining, Metallurgy and Exploration (SME) and fellow, Australasian Institute of Mining and Metallurgy (AusIMM), is the independent consulting geologist to the company, and a qualified person as defined by NI 43-101.

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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