Mr. Michael Davies reports

DENARIUS METALS ANNOUNCES THIRD QUARTER AND FIRST NINE MONTHS 2023 RESULTS

Denarius Metals Corp. has filed its unaudited interim condensed consolidated financial statements and accompanying management's discussion and analysis (MD&A) for the three and nine months ended Sept. 30, 2023. These documents can be found on the company's website and by reviewing its profile on SEDAR+. All financial figures contained herein are expressed in U.S. dollars unless otherwise noted.

Denarius Metals closed a private placement in October, 2023, of $20.6-million (Canadian) in aggregate principal amount of senior unsecured convertible debentures due 2028, with the principal use of funds focused on bringing its Zancudo project in Colombia into production in 2024. The 100-per-cent-owned Zancudo project will be the company's first mine going into operation and will provide an important source of internally generated cash flow to the company as it carries out its exploration and development activities at its projects in Spain. The company expects to start up a 500-tonne-per-day (tpd) mining operation next year with a local contract miner, initially targeting the existing mine workings and veins of the historic producing Independencia mine. A portion of the net proceeds of the debentures will also be used to acquire and install a 1,000 tpd processing plant, expected to be in operation by the fourth quarter of 2024, to produce a high-grade gold-silver concentrate.

In October, 2023, the company filed a technical report on SEDAR+ for the Zancudo project pursuant to National Instrument 43-101, Standards of Disclosure for Mineral Projects. The technical report supports the updated inferred mineral resource estimate (MRE) for the Zancudo project announced by the company on Sept. 5, 2023, with an effective date of July 31, 2023. The updated MRE comprises 4.1 million tonnes grading 6.5 grams per tonne (g/t) gold and 107 g/t silver totalling 860,000 ounces (oz) of gold and 14.1 million ounces of silver. At a gold equivalent grade of 8.1 g/t, the updated MRE represents a total of 1.06 million gold equivalent ounces.

The company also announced the results of a preliminary economic assessment (PEA) in October, 2023, which affirms the economic viability of the planned underground mining operation at the Zancudo project. The PEA, based on the updated MRE noted above and expected to be filed on SEDAR+ on or about Dec. 14, 2023, envisions a 10-year mine life over which the company expects to generate net revenue of approximately $1.0-billion from the sale of approximately 576,000 payable ounces of gold and 8.8 million payable ounces of silver at a life-of-mine (LOM) average all-in sustaining cost (AISC) of $1,059 per ounce of gold. The Zancudo deposit remains open for further expansion in all directions and the company expects to commence a 10,000-metre (m) drilling program in early 2024 once the construction of supporting infrastructure is completed.

At the Lomero project in southern Spain, the company filed an NI 43-101 technical report on SEDAR+ dated Nov. 2, 2023, to support the updated MRE announced by the company on Sept. 18, 2023, in which it converted approximately 73 per cent of the initial inferred MRE prepared in 2022 to the indicated mineral resources category. The updated MRE, with an effective date of July 31, 2023, was prepared following the completion of the company's phase 2 and phase 3 infill and validation drilling campaigns carried out from October, 2022, through July, 2023. The current geological model and the updated MRE for the Lomero-Poyatos deposit include the results obtained from a total of 146 holes representing 44,228 metres of drilling completed to date by the company, plus another 55 historical holes drilled by Cambridge Mineral Resources (CMR) in 2001 to 2007, representing 10,053 metres. The updated MRE for the Lomero project comprises:

• Indicated mineral resources totalling 7.73 million tonnes (t) at 0.66 per cent copper (Cu), 1.03 per cent zinc (Zn), 0.46 per cent lead (Pb), 25 g/t silver (Ag) and 2.27 g/t gold (Au) (1.91 per cent copper equivalent (CuEq)), containing an estimated 51,000 t Cu, 80,000 t Zn, 36,000 t Pb, 6.1 million oz Ag and 600,000 oz Au;
• Inferred mineral resources totalling 3.45 million t at 0.29 per cent Cu, 1.18 per cent Zn, 0.53 per cent Pb, 22 g/t Ag and 1.86 g/t Au (1.46 per cent CuEq), containing an estimated 10,000 t Cu, 41,000 t Zn, 18,000 t Pb, 2.5 million oz Ag and 200,000 oz Au.

At the Toral project in northern Spain, the 2023 drilling program agreed to between the company and Europa Metals Ltd., pursuant to the company's arrangement to acquire an initial 51-per-cent ownership interest in the project, was completed in August. The 2023 drilling campaign comprised approximately 6,200 m of validation and infill drilling in nine holes completed within the known indicated mineral resource area of the project. All holes completed were successful in intersecting mineralization adjacent to selected, previously reported high-grade intersections within the indicated resource block of the Toral project. The company is currently working on an updated MRE incorporating the 2023 drilling results and designing the 2024 drilling program with Europa. In addition, the formal application for a mining licence for the Toral project was completed and submitted in October, 2023, to the Junta of Castille and Leon, the local mining authority.

The company incurred total exploration and capital expenditures of approximately $3.8-million in the third quarter of 2023, up from $2.4-million in the third quarter last year, primarily as a result of its phase 1 construction activities at the Zancudo project. This brings the total exploration and capital expenditures for the first nine months of 2023 to $11.6-million, compared with $7.0-million in the first nine months of 2022. These expenditures, along with the company's general and administrative expenses, were financed by the $11.2-million net proceeds received from the rights offering and private placement, both of which were completed earlier this year, and by the $2.2-million received in cash from Aris Mining Corp. in February, 2023, on the termination of the Guia Antigua project licence.

At Sept. 30, 2023, the company had a cash balance of approximately $1.5-million that was bolstered in October, 2023, by the approximately $15.2-million of gross proceeds from the debenture financing, of which the company deposited $1.8-million into a trust account to finance the first 12 monthly interest payments on the debentures commencing November, 2023.

The company reported a net loss for the third quarter of 2023 of $1.0-million (two cents per share), compared with $700,000 (three cents per share) in the third quarter last year. This brings the net loss for the first nine of 2023 to $5.0-million (10 cents per share), including a $1.9-million non-cash loss related to the company's termination of the Guia Antigua project licence, compared with a net loss for the first nine months of 2022 of $2.3-million (11 cents per share).

About Denarius Metals Corp.

Denarius Metals is a Canadian junior company engaged in the acquisition, exploration, development and eventual operation of polymetallic mining projects in high-grade districts, with its principal focus on the Lomero project, a polymetallic deposit located on the Spanish side of the prolific copper rich Iberian pyrite belt, one of the largest districts of pyrite-rich massive sulphide deposits in the world. The company is also carrying out an exploration campaign on the Toral Zn-Pb-Ag project, located in the Leon province, northern Spain, pursuant to a definitive agreement signed in 2022 for an option and joint venture arrangement with Europa, pursuant to which Europa has granted Denarius Metals two options to acquire up to an 80-per-cent ownership interest in Europa Metals Iberia S.L. (EMI), a wholly owned Spanish subsidiary of Europa, which holds the Toral project. The company has commenced construction activities at its 100-per-cent-owned Zancudo project in Colombia, which includes the historic producing Independencia mine, providing an opportunity to develop near-term production and cash flow commencing in 2024 through local contract mining and long-term growth through continued exploration of the Zancudo deposit, which remains open in all directions.

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