Mr. Guy Goulet reports

CERRO DE PASCO RESOURCES REPORTS Q1 2023 RESULTS

Cerro de Pasco Resources Inc. has released its selected first quarter 2023 financial and operating results. All currency is in United States dollars, unless otherwise stated. The company's financial statements and management's discussion and analysis.

Selected Q1 2023 financial and operating results

• Metal production in Q1 2023 was 12.1 million pounds of zinc, 685,000 pounds of lead and 47,800 ounces of silver. These production figures represent a 40 per cent increase in Zn, 118 per cent increase in Pb and 89 per cent in Ag respectively over Q1 2022 production.
• Revenue for Q1 2023 was $12.3-million on payable production of 10.3 million pounds of zinc, 600,000 pounds of lead and 400,000 ounces of silver.
• Q1 2023 C1 cash cost of $1.62, and AISC (all-in sustaining cost) $1.96 per pound of zinc produced remain in line with the company's projections; AISC was influenced by Pipe project capital expenditures including, exploration, new pumping and power infrastructure, project studies, and development in preparation for the Pipe production.
• Q1 2023 average mill production was 2,000 tonnes per day. This was a 92-per-cent improvement over throughput achieved in Q1 2022.
• Average mine development of 766 metres per month for Q1 2023. A 197-per-cent increase over Q1 2022. This included a total of 208 metres completed for the Magistral-Pipe tunnel project.
• Completed 2,500 m of diamond drilling in Q1 2023. Drilling was focused in Puajanca for a total of 2,200 metres intercepting and 300 m in Magistral-North area. In addition, in Q1 2023 the mine completed 5,650 m of underground infill drilling.
• Puajanca drilling resulted in a total of 60 m of high-grade mineralization intercepted with the average of intercepts being five m in width, 3 per cent Zn, 1.3 per cent Pb and 49 grams per tonne Ag.
• Positive mine operating cash flow of over $3.2-million.
• Over 23 per cent of the net loss for Q1 2023 comprises either non-cash or one-time items; net loss for Q1 2023 totalled $5.78-million or (two cents) per share.
• As of March 31, 2023, the company had cash, cash equivalents and restricted cash of $6.04-million.

Jorge Lozano, Cerro de Pasco's chief operating officer, commented: "During the first quarter of 2023, CDPR had strong operating performance by exceeding production over budget and when compared to Q1 2022. In addition, this marks the third straight quarter where Santander meets or exceeds guidance The performance of our Santander mine confirms the company's strategic goal of stabilizing the operation and creating a track record at Santander. In addition, we achieved significant project milestones by completing our PEA study and advancing project infrastructure as planned and the processing plant demonstrating the ability to consistently achieve 2,500 tons per day of mineral processing.

"Moreover, the challenging environment with market price volatility and inflationary pressures experienced in 2022 persisted throughout the first quarter and is expected to continue during the current year. We are nonetheless executing our planned strategies to increase operational efficiencies and aggressively reduce cost in order to meet market challenges throughout the course of the year. Last, we continue to hold advanced negotiations to secure financing and we remain optimistic in securing the resources for the Pipe project. We are confident in reaffirming our 2023 outlook."

Q1 2023 business development highlights

• On Jan. 18, 2023, the company announced that it has been granted by INGEMMET three additional mining concessions adjacent to its Santander mine. The new concessions cover an additional 2,094.103 hectares.
• On Feb. 21, 2023, the company announced the results of preliminary economic assessment (PEA) for its brownfield Pipe project.
• On Feb. 22, 2023, the company announced the extension of the surface right contract between Cerro de Pasco and the community of Quiulacocha for the first phase of the Quiulacocha tailings project.
• On March 7, 2023, the company announced that the Quiulacocha tailings reprocessing project is included in the 2023 Ministry of Economy and Finance (MEF) specialized projects list for the promotion of investment.
• On March 21, 2023, the company announced that signed a memorandum of understanding Volcan Compania Minera S.A.A., setting out shared objectives and a framework for collaboration with regard to first phase of development and exploration of Cerro de Pasco's Quiulacocha tailings project. In addition, the company announced that Glencore International AG will provide Cerro de Pasco a $2-million term loan to cover the costs associated with the first phase of the QT project. Funds will be disbursed in accordance with a schedule of milestones. The first disbursement will occur upon obtainment of easement.

Private placement financings completed in Q1 2023

• On March 22, 2023, the company concluded a private placement by issuing 8,895,000 units at a price of 10 Canadian cents per unit for proceeds of $889,500 (Canadian). Each unit consists of one common share and one common share purchase warrant for a total of 8,895,000 common shares and 8,895,000 warrants. Each warrant will entitle the holder to acquire one additional common share of the company at an exercise price of 25 Canadian cents until March 22, 2025.
• On March 24, 2023, the company concluded a private placement by issuing 7.16 million units at a price of 10 Canadian cents per unit for proceeds of $716,000 (Canadian). Each unit consists of one common share and one warrant for a total of 7.16 million common shares and 7.16 million warrants. Each warrant will entitle the holder to acquire one additional common share of the company at an exercise price of 25 Canadian cents until March 24, 2025.
• On March 31, 2023, the company concluded a private placement by issuing 9.19 million units at a price of 10 Canadian cents per unit for gross proceeds of $919,000 (Canadian). Each unit consists of one common share and one warrant for a total of 9.19 million common shares and 9.19 million warrants. Each warrant will entitle the holder to acquire one additional common share of the company at an exercise price of 25 Canadian cents until March 31, 2025.

Annual meeting

The company will host its annual meeting of shareholders (the AGM) on Thursday, June 8, 2023, at 10:30 a.m. ET. During the AGM, the chief executive officer (or the management) will provide an overview of the company's activities.

Hybrid format

The AGM will be held in persont 1, Place Ville Marie, 40th floor, Montreal, Que., H3B 4M4, and via webcast on-line at 10:30 a.m. ET, on Thursday, June 8, 2023.

The company is conducting a hybrid meeting that will allow registered shareholders and duly appointed proxyholders to participate both on-line and in person. The company is providing the virtual format to provide shareholders with an equal opportunity to attend and participate in the AGM.

For details explaining how to attend, communicate and vote virtually at the AGM please see the company's management information circular dated May 5, 2023, filed under the company's profile on SEDAR or on the company's website. Shareholders who have questions about voting their shares or attending the AGM may contact by phone 1-579-476-7000

Technical information

Jorge Lozano, MMSAQP, and chief operating officer for Cerro de Pasco, has reviewed and approved the scientific and technical information contained in this news release. Mr. Lozano is a qualified person for the purposes of reporting in compliance with National Instrument 43-101.

About Cerro de Pasco Resources Inc.

Cerro de Pasco Resources is a mining and resource management company with unparalleled knowledge of the mineral endowment in the city of Cerro de Pasco and its surroundings. Initially, the corporation will unlock the useful life of the mine and extend the concession areas in its Santander mining operation, applying the highest safety, environmental, social and governance standards. The key focus of growth for the corporation is on the development of the El Metalurgista mining concession, one of the world's largest surface mineralized resources, applying the latest techniques and innovative solutions to process tailings, extract metals, and convert the remaining waste into green hydrogen and derivatives.

We seek Safe Harbor.