Ms. Karen Winkler reports

GOLDEN MINERALS REPORTS SECOND QUARTER 2023 FINANCIAL RESULTS

Golden Minerals Company has released financial results and a business summary for the quarter ending June 30, 2023. All figures are in approximate U.S. dollars.

Second quarter business summary:

• The company announced in June that it intends to restart mining operations at its Velardena properties, pending obtaining sufficient financing, which is still in progress. Velardena is a silver-gold underground mine property located in Durango state, Mexico, that Golden last operated in late 2015.
• The Rodeo mine (Durango state, Mexico) reported second quarter 2023 payable production of 1,828 ounces (oz) gold and 7,742 oz silver in dore, with average realized sales prices of $1,976/oz gold and $24.34/oz silver. Metallurgical recovery for gold averaged 71.6 per cent for the quarter. Mining activities at Rodeo's pit concluded in June, and the company is now processing stockpiled mineralized material.
• In April, the company began selling three different concentrates containing various amounts of gold, silver, lead and zinc that were produced from material previously stockpiled during 2022 mine testing at the Velardena properties. During the second quarter 2023 the company sold 656 tonnes of gold-rich pyrite concentrate, 118 tonnes of silver-rich lead concentrate and 63 tonnes of zinc concentrate, generating a combined revenue of $1.2-million.
• The company began selling slag, a byproduct of the Rodeo mine's smelting process, during the second quarter 2023, and recorded slag sales of $200,000.
• In June, 2023, the company effected a one-for-25 reverse share split and separately closed a registered direct and concurrent private placement offering of the company's common stock plus warrants, resulting in gross proceeds to the company of $2.1-million.
• The company submitted a plan to regain compliance with the NYSE American shareholders' equity minimum balance of $6-million, and the plan has been accepted by the NYSE American for review.

Second quarter financial summary:

• Revenue was $5-million in the second quarter 2023 which included Rodeo's sale of metals, sales of Velardena concentrates and sales of Rodeo slag material. Revenue was $5.9-million in the second quarter 2022 which included Rodeo's sale of metals.
• Net operating margin (defined as revenue from the sale of metals less cost of metals sold) was $1.1-million in the second quarter 2023 which included nil from Rodeo's sale of metals (including slag sales) and $1.1-million from Velardena concentrate sales. Net operating margin was $1.3-million in the second quarter 2022 which related solely to the Rodeo mine's sale of metals.
• Cash and equivalents balance as of June 30, 2023, was $3.4-million, compared with $4-million on Dec. 31, 2022.
• Zero debt as of June 30, 2023, unchanged from Dec. 31, 2022.
• Net loss was $1.5-million or 21 cents per share in the second quarter 2023, compared with a net loss of $2.8-million or 42 cents per share in the second quarter 2022.

Cash inflows and expenditures

Cash expenditures during the six months ended June 30, 2023, totalled $5.6-million and included:

• $2.2-million in exploration expenditures;
• $600,000 in care and maintenance costs at the Velardena properties;
• $300,000 in exploration and evaluation activities, care and maintenance and property holding costs at the El Quevar project, net of reimbursements from Barrick Gold Corp. pursuant to the earn-in agreement between the company and Barrick;
• $2.5-million in general and administrative expenses.

The above expenditures were offset by cash inflows of $5-million from the following:

• $1.1-million of net operating margin from sales of Velardena concentrates;
• $200,000 of net operating margin from the Rodeo operation;
• $1.8-million, net of fees from the company's at-the-market program;
• $1.9-million, net of fees from the previously reported June, 2023, registered direct offering and concurrent private placement of the company's common stock.

Capital resources and 12-month financial outlook

At June 30, 2023, the company had current assets of $8.6-million, including cash and cash equivalents of approximately $3.4-million. On the same date, the company had accounts payable and other current liabilities of $5.4-million. At July 31, 2023, aggregate cash and cash equivalents totalled approximately $2.8-million. Because the company has ceased mining at the Rodeo mine, its only near-term opportunity to generate cash flow from mining to support continued operations is the Velardena mine. Without additional near-term capital, which the company is currently attempting to obtain, the company will be forced to liquidate its business, potentially before the fourth quarter of 2023.

Forecasted expenditures during the 12 months ending June 30, 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 $1.4-million; (ii) El Quevar spending (net of Barrick reimbursements) of $300,000; and (iii) administrative expense, including Mexican general and administrative costs of $5.1-million; and (iv) working capital needs of $800,000. The actual amount of cash expenditures that the company incurs during the 12-month period ending June 30, 2024, may vary significantly from the amounts specified above and will depend on a number of factors, including variations in anticipated administrative costs, costs at El Quevar, and costs for continued exploration, project assessment and advancement of other exploration properties.

In order to restart production at the Velardena mine, the company requires additional financing of approximately $2-million to $3-million. In addition, because the Velardena mine is not expected to generate cumulative positive net cash flow until 2024 at the earliest, the company also requires additional capital of approximately $1-million to $3-million in order to cover the company's general and administrative and other expenses for the 12 months ending June 30, 2024.

The company is evaluating numerous alternatives for this additional capital. Golden is engaged in several discussions for the sale of assets. The company has also held discussions with various financing parties with regard to equity and/or debt financing as well as streaming or royalty arrangements involving future production at Velardena. The company is also evaluating potential avenues to monetize some or all of its $2.9-million value-added tax receivable in Mexico.

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 June 30, 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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