Mr. Fernando Ganoza reports

ATICO REPORTS CONSOLIDATED FINANCIAL RESULTS FOR FIRST QUARTER OF 2023

Atico Mining Corp. has released its financial results for the three months ended March 31, 2023, posting a net loss of $500,000. Production for the period at Atico's El Roble mine totalled 2.3 million pounds (Mlb) of copper and 2,553 ounces (oz) of gold in concentrate at a cash cost of $2.20 per payable pound of copper.

All amounts are expressed in United States dollars, unless otherwise stated.

Fernando E. Ganoza, chief executive officer and director, commented: "Lower grade and throughput than planned for this period impacted our financials for the quarter. The mechanical failures experienced during the fourth quarter of last year, which carried through to this quarter, have been resolved and we have now moved back into higher-grade zones. These should be reflected in the El Roble production results for the second quarter as we anticipate we will be able to make up for the slow start of the year throughout the remaining quarters," said Mr. Ganoza, CEO. "In parallel, we will focus on the ongoing drill program at El Roble mine vicinity aimed at replacing ore and extending the life of mine."

First quarter financial highlights:

• Net loss for the quarter amounted to $500,000, compared with income of $3.9-million for the comparative quarter. The decrease was primarily due to lower sales, and a higher cost per pound of copper, impacting income from mining operations.
• Sales for the quarter decreased 38 per cent to $12.8-million when compared with $20.6-million in Q1 2022. Copper (Cu) and gold (Au) accounted for 84 per cent and 16 per cent of the 6,475 (Q1 2022 -- 9,568) dry metric tonnes (DMT) sold during Q1 2023. Sales during the quarter were impacted by lower quantities sold and at a lower copper price compared with Q1 2022.
• The average realized price per metal was $4.15 per pound of copper and $2,139 per ounce of gold.
• Ending working capital was $15-million and the company had $15.7-million in long-term loans payable.
• Cash costs were $127.33 per tonne of processed ore and $2.20 per pound of payable copper produced, which were an increase of 2 per cent and 71 per cent over Q1 2022, respectively.
• Cash margin was $1.95 (Q1 2022 -- $3.36) per pound of payable copper produced, which was a decrease of 42 per cent over Q1 2022, due to lower copper price and higher cash costs per pound.
• All-in sustaining cash cost per payable pound of copper produced was $3.34.

First quarter operational review

In Q1 2023, the company produced 2.3 Mlb of copper, 2,553 oz of gold and 8,335 oz of silver. The decrease in copper production is mainly due to the decrease in grade.

Cash costs were $127.33 per tonne of processed ore and $2.20 per pound of payable copper produced, which were an increase of 2 per cent and a decrease of 71 per cent over Q1 2022, respectively. The increase in cash cost per pound of payable copper produced compared with the comparative period is due to lower copper grade partially offset by higher gold (byproduct) credits.

The financial statements and MD&A (management's discussion and analysis) are available on SEDAR and have also been posted on the company's website.

El Roble mine

The El Roble mine is a high-grade, underground copper and gold mine with nominal processing plant capacity of 1,000 tonnes per day, located in the department of Choco in Colombia. Its commercial product is a copper-gold concentrate.

Since obtaining control of the mine on Nov. 22, 2013, Atico has upgraded the operation from a historical nominal capacity of 400 tonnes per day.

El Roble has proven and probable reserves of 1.00 million tonnes (Mt) grading 3.02 per cent copper and 1.76 grams per tonne (g/t) gold, at a cut-off grade of 1.3 per cent copper equivalent (CuEq) with an effective date of Sept. 30, 2020. Mineralization is open at depth and along strike, and the company plans to further test the limits of the deposit. On the larger land package, the company has identified a prospective stratigraphic contact between volcanic rocks, and black and grey pelagic sediments and cherts that has been traced by Atico geologists for 10 kilometres. This contact has been determined to be an important control on VMS (volcanogenic massive sulphide) mineralization, on which Atico has identified numerous target areas prospective for VMS-type mineralization occurrence, which is the focus of the current surface drill program at El Roble.

La Plata overview

Atico's wholly owned La Plata project is a gold-rich volcanogenic massive sulphide deposit that was the subject of small-scale mining from 1975 to 1981 by Outokumpu Finland. The project benefits from a modern drill and exploration database which was completed by Cambior Inc. from 1996 to 1999, Cornerstone Capital from 2006 to 2009 and Toachi from 2016 to 2019.

Toachi Mining completed a PEA (preliminary economic assessment) estimating an inferred resource of 1.85 million tonnes grading 4.10 grams gold per tonne, 50 grams silver per tonne, 3.30 per cent copper, 4.60 per cent zinc and 0.60 per cent lead per tonne.

The La Plata project consists of two concessions covering a total area of 2,235 hectares along its four-kilometre length, which contains known mineralization in two VMS lenses and nine priority exploration targets.

Qualified person

Thomas Kelly (SME registered member, 1696580), adviser to the company and a qualified person under National Instrument 43-101 standards, is responsible for ensuring that the technical information contained in this news release is an accurate summary of the original reports, and data provided to or developed by Atico.

About Atico Mining Corporation

Atico is a growth-oriented company, focused on exploring, developing, and mining copper and gold projects in Latin America. The company generates significant cash flow through the operation of the El Roble mine and is developing its high-grade La Plata VMS project in Ecuador. The company is also pursuing additional acquisition of advanced-stage opportunities.

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