Mr. Eric Caba reports

BEAR CREEK MINING ANNOUNCES Q2 2023 MERCEDES PRODUCTION RESULTS

Bear Creek Mining Corp. produced 9,199 ounces of gold and 39,841 ounces of silver from the Mercedes mine during the three months ended June 30, 2023.

Eric Caba, president and chief executive officer of Bear Creek, states: "As previously reported, delays in development work experienced during the first quarter of 2023 impacted Mercedes's operations during Q2 2023. This primarily manifested itself in lower grades available to process as we continued to catch up on development in the mine. During Q2 we started making dramatic changes to the operations by implementing more productive mining methods. These changes have already had a significant impact on mining costs. Going forward, we expect this reduction to be up to 20 per cent and continue through the remainder of 2023. The increase in development metres by 30 per cent in Q2 2023 compared to the previous quarter, the greatly improved Mercedes cost structure and substantial contributions in tonnage planned from the higher average grade San Martin deposit, all as described below, set us up very well going into the remainder of the year. We continue to have every confidence in Mercedes's ability to deliver on its promise of increased production and greater cash flow."

Production and development results for the quarter ended June 30, 2023, are as noted herein.

During Q2 2023, the company revised the mining methods employed at the Marianas and San Martin deposits, from cut and fill mining at both deposits to room and pillar mining at San Martin and sublevel caving and sublevel stoping at Marianas. The use of long-hole open stoping was also increased in the remaining operating areas. These methodologies better align with the structural and geologic characteristics of these deposits, are less costly, and, in the case of room and pillar mining, less dilutive.

The factors impeding development in Q1 2023 were substantially improved in Q2 2023, leading to a 30-per-cent increase in development advances quarter-over-quarter. Additionally, in general, the use of more bulk mining methodologies increases the efficiency of the development work as more tonnes of ore become available per metre of development, which effectively leverages the same development to greater effect and contributes to lower operating and all-in sustaining costs.

Tonnes mined from the San Martin deposit are expected to double from 400 to 800 tonnes per day during Q3 2023 as the available working faces increase. The San Martin deposit contains 289,000 tonnes in measured and indicated resources at an average grade of 6.6 grams per tonne gold and is projected to account for roughly 50 per cent of Mercedes's gold production in the second half of the year.

The Marianas deposit will be a strong contributor to 2023 production and a key component of the company's longer-term plans for Mercedes. Marianas is located on the prolific Mercedes structural trend, which has contributed over 3.5 million tonnes of ore and over 580,000 ounces of gold to the mine's historical production since 2011. As underground delineation drilling continues to better define this deposit and surface exploration drilling begins to step out both along strike and below the existing Marianas workings, the company's understanding of this deposit and its potential continues to evolve. The discovery of a number of new veins, the pinching out of others and the intersection of zones of intense structural complexity, including hydrothermal breccias that contain gold mineralization at significantly higher grades than the current reserve grade, indicate that much is yet to be learned and discovered along the Mercedes structural trend. The Marianas deposit remains open both along strike and to depth, and the structural trend continues, virtually unexplored, for an additional four kilometres within the Mercedes property.

Funds from the company's recently announced private placement financing will, in part, be directed at advancing exploration at the Marianas and San Martin deposits and testing their potential extensions.

Bear Creek expects to announce its financial and operating results for Q2 2023 on or about Aug. 22, 2023.

National Instrument 43-101 disclosure

Scientific and technical information in this news release is based on work programs and initiatives conducted under the supervision of, and/or has been reviewed and approved by, Andrew Swarthout, AIPG certified professional geologist, a director of the company who is a qualified person as defined in NI 43-101. Measured and indicated resources at the San Martin deposit as provided in this release are taken from the technical report entitled "NI 43-101 Technical Report, Mercedes Gold-Silver Mine, Sonora State, Mexico" dated July 4, 2022, with an effective date of Dec. 31, 2021, which is available on SEDAR under the profile of Bear Creek Mining and which provides complete information regarding the assumptions used in the preparation of Mercedes mineral resources and mineral reserves.

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