Mr. Warren Rehn reports

GOLDEN MINERALS ANNOUNCES RESTART OF SILVER AND GOLD MINING OPERATIONS AT VELARDENA AND PROVIDES UPDATE ON CAPITAL RESOURCES

Golden Minerals Company plans to restart silver-gold mining operations at its Velardena properties located in Durango state, Mexico, subject to the receipt of sufficient capital.

Warren M. Rehn, Golden's president and chief executive officer, stated: "I am very pleased to announce that Golden Minerals' board of directors has approved plans to restart mining operations at Velardena. The decision to begin operations again at Velardena was primarily based on vastly improved sales terms now available to us for the gold-rich pyrite concentrate that is produced from flotation processing of Velardena mineralized material, which permit us to restart operations without the significant expense of the previously planned bio-oxidation facility. Since the start of 2023, we successfully processed 3,000 tons of material mined in our test mining activities in 2022 and we sold approximately 600 tons of these concentrates under the improved terms with net receipts of approximately $1.5-million or about $500 per ton of mined material. These recent sales augur well for the potential success of our restart plans. We anticipate that we can start mining operations with minimal initial capital of approximately $500,000. Our internally developed mine plan projects the production of approximately 400,000 silver equivalent ounces (1) during 2023, with the potential to ramp up to approximately 1.6 million silver equivalent ounces per year thereafter. We have contracted for completion of an independent technical report, which we expect will support our internal projections. We intend to begin preparations to start mining immediately."

The company's internal mine plan calls for underground resue mining, starting with four active stopes initially with processing at Velardena's plant I flotation facility at an initial throughput rate of approximately 80 tonnes per day (tpd). As underground development progresses, the number of stopes is anticipated to steadily increase over a period of months until 15 to 18 stopes are ultimately in continuous production. The mill is expected to reach a steady-state processing rate of approximately 325 tpd by the end of the year. All required permits are already in place, and because plant I has recently been in use and processing previously mined Velardena sulphide material, after start-up as development costs continue to exceed net revenue, the maximum cash outflows of about $2.3-million, inclusive of the initial $500,000, are predicted to be paid back within the first nine months of operations.

The company, through engagement with an independent engineering firm, intends in the third quarter of 2023 to update the March, 2022, technical report summary for Velardena that was previously completed (including plans for the previously contemplated but no longer required bio-oxidation facility) in accordance with Securities and Exchange Commission SK-1300 guidelines.

(1) Silver equivalent production estimate calculated based on $1,900 per ounce gold and $22.50 per ounce silver with 64-per-cent payable gold recovery and 81-per-cent payable silver recovery and does not include lead and zinc, which will also be produced.

Current company-developed forecasts for mining a portion of the published resource over an approximate seven-year life-of-mine (LOM) estimate processing 700,000 to 800,000 tonnes of material at plant I, with LOM payable gold production of 60,000 to 70,000 ounces and LOM payable silver production of 5.5 million to 6.5 million ounces. Operating costs are estimated at $225 to $275 per tonne.

Capital resources and financial outlook

The company does not currently have sufficient resources to initiate the restart of mining operations at Velardena or to otherwise meet its expected cash needs during the 12 months ending May 31, 2024. At May 31, 2023, the company's total cash resources were approximately $2.4-million and it has accrued accounts payable of approximately $1.7-million. The mining operations at Rodeo have ceased, and although the company continues to process ore from the Rodeo stockpile, it does not expect to generate a significant amount of positive operating margin from Rodeo going forward. The company needs to raise additional cash in the very near term, whether through the sale of non-core assets or equity financing, including the use of its ATM (at-the-market) program. In the absence of sufficient asset sales, equity financing or other external financing the company's cash balance is expected to be depleted early in the third quarter of 2023. If financing or asset sales are not available to the company, it could be forced to liquidate its business. The company's board of directors is considering various financing alternatives, sales of assets and other available strategic alternatives to avoid that result.

If the company is successful in raising sufficient capital to restart mining operations at Velardena during July, 2023, and if it is successful in executing the mine plan described above, the forecasted net operating margin from the Velardena properties during the 12-month period ended May 31, 2024, is expected to be between $1.7-million and $2.0-million. This 12-month period includes one-time costs related to restarting operations. As the mine reaches planned capacity to feed the processing plant approximately 325 tonnes per day, the second half of 2024 is forecast to be more favourable, generating a positive operating margin higher than what is expected during the first 11 months of operations. Net operating margin is defined as revenue from the sale of metals less the cost of metals sold. The company's internal estimate for the net operating margin at 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) challenges associated with the company's proposed mining plans, including difficulties in controlling grade dilution, (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.

There is no assurance that the company will be successful in achieving the positive operating margins at Velardena 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 to the estimates described above, the company expects to collect approximately $1.5-million in VAT accounts receivable from the Mexican government; however, the timing for receipt of these payments is uncertain.

Update on Unifin dispute

As previously disclosed, the company is party to a lawsuit in Mexico brought by Unifin Financiera SAB de CV. Unifin is alleging that a representative of the company's subsidiary, Minera William SA de CV, signed certain documents in July, 2011, purporting to bind Minera William as a guarantor of payment obligations owed by a third party to Unifin in connection with that third party's acquisition of certain drilling equipment. At the time the documentation was allegedly signed, Minera William was a subsidiary of ECU Silver Mining prior to the company's acquisition of ECU in September, 2011. A preliminary hearing on the lawsuit was held on June 2, 2023, and the trial hearing has been scheduled for June 30, 2023. Unifin is seeking recovery for as much as $12.5-million (U.S.). Because the Velardena mine and processing plants are held by Minera William, any adverse outcome of the action may have a material impact on the company's ability to restart production at Velardena.

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.

We seek Safe Harbor.