Ms. Karen Winkler reports

GOLDEN MINERALS REPORTS FIRST QUARTER 2023 RESULTS

Golden Minerals Company has released financial results and a business summary for the quarter ending March 31, 2023. All figures are in approximate U.S. dollars.

Business summary:

• First quarter 2023 payable production from the Rodeo mine was 2,081 ounces (oz) gold and 11,535 oz silver in dore, with average realized sales prices of $1,891/oz gold and $22.60/oz silver. Metallurgical recovery for gold averaged 72.6 per cent for the quarter.
• In early April, 2023, the company reported that notably improved market terms offered for the gold-rich pyrite concentrate coming from its Velardena properties have enabled the company to evaluate reopening Velardena at potentially a very minimal capital cost, without needing to construct the bio-oxidation facility previously contemplated.
• In March, 2023, the company reported a maiden mineral resource estimate for its Yoquivo gold-silver project (Chihuahua state, Mexico). It estimates an inferred resource of 937,000 tonnes at 570 grams per tonne silver equivalent (equivalent ounces calculated using prices of $1,840/oz Au and $24/oz Ag) on five veins that had enough drill density to support mineral resources.
• In February, 2023, the company reported the Santa Maria gold-silver properties have been returned to the company after Fabled Silver Gold Corp. failed to make a payment due per the terms of a 2020 option agreement that would have sold Golden's interest in Santa Maria to Fabled.

Financial summary:

• Revenue of $4.2-million related to the sale of metals from the company's Rodeo mine in the first quarter 2023 versus $7.5-million in the first quarter 2022.
• Net operating margin (defined as revenue from the sale of metals less cost of metals sold) of $200,000 related to Rodeo mine operations in the first quarter 2023 versus $3.2-million in the first quarter 2022.
• Cash and equivalents balance of $2-million as of March 31, 2023, compared with $4-million on Dec. 31, 2022.
• Zero debt as of March 31, 2023, unchanged from Dec. 31, 2022.
• Net loss of $3.3-million or two cents per share in the first quarter 2023 compared with a net loss of $300,000 or nil per share in the first quarter 2022.

Cash inflows and expenditures

Cash expenditures during the first quarter 2023 totalled $3-million and included:

• $1.3-million in exploration expenditures (includes $600,000 for tailings facility expansion at plant 2);
• $200,000 in care and maintenance costs at the Velardena properties;
• $200,000 in exploration and evaluation activities, care and maintenance, and property holding costs at the El Quevar project, net of reimbursements from Barrick;
• $1.3-million in general and administrative expenses.

The above expenditures were offset by cash inflows of $1-million from the following:

• $200,000 of net operating margin from the Rodeo operation (defined as revenue from the sale of metals less the cost of metals sold);
• $700,000, net of fees from the at-the-market program;
• $100,000 related to other items.

Capital resources and 12-month financial outlook

The company's forecasted expenditures during the 12 months ending March 31, 2024, excluding Rodeo and Velardena cost of metals sold, which is included in the forecast of net operating margin discussed below, total approximately $7.6-million. These forecasted expenditures include: (i) exploration expenses of $2.1-million; (ii) Velardena care and maintenance costs of $300,000; (iii) El Quevar spending (net of Barrick reimbursements) of $300,000; and (iv) general and administrative expenses, including G&A in Mexico, of $4.9-million. The actual amount of cash expenditures incurred during the 12-month period ending March 31, 2024, may vary significantly from the amounts specified above and will depend on a number of factors, including variations in the anticipated administrative costs, care and maintenance costs at the Velardena properties or at El Quevar, and costs for continued exploration, project assessment and advancement of the company's other exploration properties.

The company does not currently have sufficient resources to meet its expected cash needs during the 12 months ended March 31, 2024. At March 31, 2023, cash resources were approximately $2-million. The forecasted net operating margin from the Rodeo property during the 12-month period is expected to be between nil and $500,000. The forecasted net operating margin from the Velardena properties during the 12-month period is expected to be between $5-million and $5.5-million. Net operating margin is defined as revenue from the sale of metals less the cost of metals sold. The estimate for Rodeo assumes gold prices per ounce during the period of between $1,950 and $1,990 and silver prices per ounce of $25. The margin estimate for Velardena assumes gold prices average $1,900 per ounce and silver prices average $22.50 per ounce. The actual amount received in net operating margin from both Rodeo and Velardena during the period may vary significantly from the amounts specified above due to, among other things: (i) unanticipated variations in grade; (ii) unexpected challenges associated with the company's proposed mining plans; (iii) decreases in commodity prices below those used in calculating the estimates shown above; (iv) variations in expected recoveries; (v) increases in operating costs above those used in calculating the estimates shown above; or (vi) interruptions in mining. Moreover, because the restart of production at Velardena is still being evaluated, there is a risk that the company's board of directors may decide not to restart production at this time. In that event, the company will require further additional capital than the estimates described below.

There is no assurance that the company will be successful in collecting the anticipated cash receipts described above. Specifically, the anticipated net operating margin from the Velardena properties is not based on the results of a full feasibility study. While the company believes its internal estimates are realistic, the lack of a full feasibility study may increase the uncertainty associated with the estimates. In addition, the company expects to collect approximately $1.5-million in VAT (value-added tax) accounts receivable from the Mexican government; however, it is possible that those amounts may be delayed. At April 30, 2023, aggregate cash and cash equivalents totalled approximately $2-million. In order to cover forecasted expenditures, the company needs to raise additional cash in the near term, whether through the sale of non-core assets or equity financing, including the use of its ATM program. In the absence of sufficient asset sales, equity financing or other external financing, the company's cash balance is expected to be depleted near the end of the second quarter of 2023.

Quarterly report on Form 10-Q

The company's consolidated financial statements and management's discussion and analysis, as well as other important disclosures, may be found in the company's quarterly report on Form 10-Q for the quarter ended March 31, 2023. This Form 10-Q is available on the company's website. It has also been filed with the U.S. Securities and Exchange Commission on EDGAR and with the Canadian securities regulatory authorities on SEDAR.

About Golden Minerals Company

Golden Minerals is a gold and silver producer based in Golden, Colo. The company is primarily focused on producing gold and silver from its Rodeo mine, advancing its Velardena and Yoquivo properties in Mexico, and, through partner-financed exploration, its El Quevar silver property in Argentina, as well as acquiring and advancing selected mining properties in Mexico, Nevada and Argentina.

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