Mr. Alberto Morales reports

ANDEAN PRECIOUS METALS FILES NI 43-101 TECHNICAL REPORT FOR SAN BARTOLOME

Andean Precious Metals Corp. today filed the preliminary feasibility study technical report for San Bartolome mine Bolivia dated Feb. 6, 2024.

The technical report was prepared by SRK Consulting (U.S.) Inc. in compliance with National Instrument 43-101 -- Standards for Disclosure for Mineral Projects (NI 43-101) and has been filed on SEDAR+.

Andean previously released the results of the mineral resource and mineral reserve statement (see news release dated Dec. 27, 2023), showing an extension of 4.6 years for the San Bartolome operation based on a new proven and probable (2P) mineral reserve estimate.

"The technical report filed today further underscores the tremendous strides we have made to replenish our reserves and resources and extend the operating life of San Bartolome," stated Alberto Morales, Andean's executive chairman and chief executive officer. "Pursuing opportunities that drive cash flow and profitability is our key priority in Bolivia. Topping our list of growth initiatives remains securing more feedstock through new long-term third party contracts and from the Bolivian government. In parallel, our team is evaluating potential drill programs at Tollojchi, Altavista and Paca, and regional M&A opportunities."

Key highlights of the technical report

• The operating life at San Bartolome is extended by 4.6 years based on new 2P mineral reserve estimate.
• The technical report considers only a portion of the company's third party long-term contracts where sufficient data were available, and excludes feedstock purchased from small independent third party miners in Bolivia with whom the company does not have long-term contracts.
• As of the end of the first nine months ending Sept. 30, 2023, third party material represented more than 60 per cent of tonnes processed at San Bartolome and nearly 70 per cent of ounces produced.
• Economic grade fines disposal facility (FDF) tailings are expected to fully replace pallaco deposits from the flanks of the Cerro Ricco commencing in Q2 2024 and represent approximately 11 per cent of San Bartolome's 2024 silver production.
• San Bartolome has been in operation since 2008 and requires $6.7-million (U.S.) to enable the hydraulic mining of the FDF tailings, which is anticipated to commence in the first half of 2024.
• The company's existing processing plant in Bolivia can run both high-grade silver contracted material and FDF tailings.
• Future opportunities identified in the technical report:
  • San Bartolome plant is one of the only operations that actively acquires and processes oxide mineral not suitable for typical flotation plants in Bolivia.
  • Tollojchi, Altavista and Paca deposits remain open with potential to increase mineral resources.
  • Current tests of oxygen injection are targeting better FDF tailings recoveries.

Annual mine plan summary

The attached table includes contracted material from Tollojchi, Altavista and Paca deposits, and FDF tailings and excludes uncontracted material from independent third party contractors. (For additional information, please refer to the technical report on file at the SEDAR+ website.)

Capital and operating costs

Life of mine capital cost summary

Andean estimated the capital costs for the San Bartolome project. The estimate is based on historic costs incurred at the site, existing contracts with service providers and engineering to prepare for the planned FDF expansion. Andean provided SRK with the details supporting their capital estimates. The attached table summarizes the capital cost estimate.

Operating costs

Operating costs were developed by Andean and are based on the production schedule and stated reserves. Cost estimation is based on requirements of equipment, operating labour, supervision, administrative labour, mine, process consumables, maintenance et cetera. The attached table summarizes the operating costs of the San Bartolome project.

Qualified persons

The technical report was prepared under the supervision of Patrick Daniels, BSc, mining, SME-RM (SRK principal consultant, mining engineer); Matthew Fuller, PGeo, LEG (Tierra Group, geoscientist); Donald J. Birak, MSc, RM-SME (Birak Consulting, independent consulting geologist); Giovanny Ortiz, BSc, geology, FAusIMM, fellow (SEG), (SRK principal consultant, resource geologist); Fernando Rodrigues, BS, mining, MBA, MMSAQP (SRK practice leader and principal consultant, mining engineer); Eric Olin, MSc, MBA, RM-SME (SRK principal process metallurgist); Mark Allan Willow, MSc, CEM, SME-RM (SRK practice leader/principal environmental scientist), in accordance with the disclosure and reporting requirements set forth in NI 43-101. All those mentioned are qualified persons under NI 43-101 and have no affiliation with Andean or its subsidiaries except that of independent consultant/client relationships.

The scientific and technical information contained in this news release has been reviewed and approved by Mr. Daniels, BSc, mining, SME-RM (SRK principal consultant, mining engineer), and Mr. Birak, MSc, RM-SME (Birak Consulting, independent consulting geologist).

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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