Mr. Jim Mellon reports

CONDOR GOLD PROVIDES AN UPDATE ON THE SALE OF ASSETS

On Nov. 22, 2022, Condor Gold PLC announced that following a robust and economically attractive bankable feasibility study, also known as a feasibility study, on the La India open pit, it appointed H&P Advisory Ltd. (Hannam and Partners) to seek a buyer for the assets of the company. The last update on the sale of the company's assets was via an RNS (regulatory news service) on July 31, 2023, and in the interim accounts on Sept. 7, 2023. The current status is that the company remains in receipt of five non-binding offers, with three site visits having been completed. Although none of the non-binding offers have progressed to firm proposals to date, the company is in advanced discussions with two gold producers. There are currently eight companies under non-disclosure agreements (NDAs).

One million pounds sterling raised via the exercise of warrants

The company also announces that Galloway Ltd., a company wholly owned by Burnbrae Group Ltd., which is, in turn, wholly owned by Jim Mellon, Condor's chairman, has sent the company a signed notice for the exercise of warrants, which will result in the issue of 6,666,667 new ordinary shares at an issue price of 0.15 pound sterling per new ordinary share, for a total consideration of one million pounds sterling, which has now been received.

Application has been made for the new ordinary shares to be admitted to trading on the Alternative Investment Market (AIM). Admission of the new ordinary shares is expected to take place on Dec. 15, 2023. The company has prior approval for the shares to be listed on the Toronto Stock Exchange.

The company is in discussions with other shareholders who have expressed interest in investing alongside the chairman and largest shareholder on the same terms, notably, via a small placement of new ordinary shares at 0.15 pound sterling per new ordinary share. An update will be provided shortly.

Director/PDMR shareholding

Galloway will hold 49,769,148 ordinary shares, representing 25.63 per cent of the company's issued ordinary shares postexercise of the warrants. Galloway is wholly owned by Burnbrae Group, which is, in turn, wholly owned by Mr. Mellon. Denham Eke, a non-executive director, is also a director of the Burnbrae Group and Galloway.

Total voting rights

Following the issue of the 6,666,667 new ordinary shares to Galloway, Condor's total issued share capital will comprise 194,194,158 new ordinary shares, each with voting rights. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, securities of the company under the Financial Conduct Authority's disclosure and transparency rules.

Mr. Mellon commented: "I continue to be impressed with the asset sale process. We are very aware of the value of our assets and will maximize value for all shareholders. My investment of a further one million pounds sterling is designed to ensure sufficient financial runway during the sales process until a desired price is achieved."

Mark Child, chief executive officer of Condor Gold, commented: "Wholly owned, fully permitted, construction-ready gold mines with potential production of 150,000 oz gold per annum, in major gold districts, with the land and a new SAG mill package purchased and a construction period of only 18 months are rare. To date, there are eight companies under NDAs, five non-binding offers received and three site visits completed. Companies under NDAs have access to a virtual data room, which includes all drill data, technical studies to feasibility study level, details of permits to construct and operate a mine, and financial models. Although none of the non-binding offers have progressed to firm proposals to date, the company is in advanced discussions with two gold producers. The sales process is taking longer than anticipated, but the board is anticipating that further progress will be made in the new year. Investors will be updated in due course."

Cautionary statement

Investors should note that, while the board is encouraged by the process to date, there can be no guarantee that the company will complete the sale of its assets.

About Condor Gold PLC

Condor Gold was admitted to the AIM in May, 2006, and dual listed on the TSX in January, 2018. The company is a gold exploration and development company with a focus on Nicaragua.

The company's principal asset is La India project, Nicaragua, which comprises of a large, highly prospective land package of 588 square kilometres, comprising 12 contiguous and adjacent concessions. The company has filed a feasibility study (FS) technical report dated Oct. 25, 2022, and entitled, "Condor Gold Technical Report on the La India Gold Project, Nicaragua, 2022," which is available on the company's SEDAR+ profile and was prepared in accordance with the requirements of National Instrument 43-101. The 2022 FS indicated that La India project hosts a high-grade mineral resource estimate (MRE) of 9,672,000 tonnes (t) at 3.5 grams per tonne (g/t) gold for 1,088,000 ounces (oz) gold in the indicated mineral resource category and 8,642,000 t at 4.3 g/t gold for 1.19 million oz gold in the inferred mineral resource category. The open-pit MRE is 8,693,000 t at 3.2 g/t gold for 893,000 oz gold in the indicated mineral resource category and 3,026,000 t at 3.0 g/t gold for 291,000 oz gold in the inferred mineral resource category. Total underground MRE is 979,000 t at 6.2 g/t gold for 94,000 oz gold in the indicated mineral resource category and 5,615,000 t at 5.0 g/t gold for 98,000 oz gold in the inferred mineral resource category.

The 2022 FS replaces the previously reported preliminary economic assessment (PEA) as presented in the technical report filed on SEDAR+ in October, 2021, as the current technical report for the La India project.

The 2021 PEA considered the expanded project inclusive of the exploitation of the mineral resources associated to the La India, Mestiza, America and Central Breccia deposits. The strategic study covers two scenarios: scenario A, in which the mining is undertaken from four open pits, termed La India, America, Mestiza and Central Breccia Zone (CBZ), targeting plant feed rate of 1,225,000 tonnes per annum (tpa); and scenario B, where the mining is extended to include three underground operations at La India, America and Mestiza, in which the processing rate is increased to 1.4 million tpa. The 2021 PEA scenario B presented a posttax, postupfront capital expenditure net present value (NPV) of $418-million (U.S.), with an internal rate of return (IRR) of 54 per cent and a 12-month payback period, assuming a gold price of $1,700 (U.S.) per oz, with average annual production of 150,000 oz gold per annum for the initial nine years of gold production. The open-pit mine schedules were optimized from designed pits, bringing higher-grade gold forward, resulting in average annual production of 157,000 oz gold in the first two years from open-pit material and underground mining financed out of cash flow. The 2021 PEA scenario A presented a posttax, postupfront capital expenditure NPV of $302-million (U.S.), with an IRR of 58 per cent and a 12-month payback period, assuming a gold price of $1,700 (U.S.) per oz, with average annual production of approximately 120,000 oz gold per annum for the initial six years of gold production. The mineral resource estimate and associated preliminary economic assessment contained in the 2021 PEA are considered a historical estimate within the meaning of NI 43-101; a qualified person has not done sufficient work to classify such historical estimate as current, and the company is not treating the historical mineral resource estimate and associated studies as current, and the reader is cautioned not to rely upon these data as such. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The company believes that the historical mineral resource estimate and preliminary economic assessment are relevant to the continuing development of the La India project.

In August, 2018, the company announced that the Ministry of the Environment in Nicaragua had granted the environmental permit (EP) for the development, construction and operation of a processing plant with capacity to process up to 2,800 tonnes per day at its wholly owned La India gold project. The EP is considered the master permit for mining operations in Nicaragua. Condor has purchased a new SAG (semi-autogenous grinding) mill, which has mainly arrived in Nicaragua. Site clearance and preparation are at an advanced stage.

Environmental permits were granted in April and May, 2020, for the Mestiza and America open pits, respectively, both located close to La India. The Mestiza open pit hosts 92,000 t at a grade of 12.1 g/t gold (36,000 oz contained gold) in the indicated mineral resource category and 341,000 t at a grade of 7.7 g/t gold (85,000 oz contained gold) in the inferred mineral resource category. The America open pit hosts 114,000 t at a grade of 8.1 g/t gold (30,000 oz) in the indicated mineral resource category and 677,000 t at a grade of 3.1 g/t gold (67,000 oz) in the inferred mineral resource category. Following the permitting of the Mestiza and America open pits, together with the La India open pit, Condor has 1.12 million oz gold of open-pit mineral resources permitted for extraction.

Disclaimer

Neither the contents of the company's website nor the contents of any website accessible from hyperlinks on the company's website (or any other website) is incorporated into, or forms part of, this news release.

TSX matters

The company is relying on the exemption provided for pursuant to Section 602.1 of the TSX company manual from the requirements of the manual and the TSX relating to the issue of new shares ordinary, including the requirements of Section 613 of the manual, as the company is an eligible interlisted issuer as defined in the manual.

Qualified persons

The technical and scientific information in this news release has been reviewed, verified and approved by Andrew Cheatle, PGeo, a director of Condor Gold, and Gerald D. Crawford, PE, the chief technical officer of Condor Gold, each of whom is a qualified person as defined by NI 43-101.

We seek Safe Harbor.