Mr. Jamie Beck reports

FILO MINING REPORTS Q1 2023 RESULTS

Filo Mining Corp. has released its results for the three months ended March 31, 2023.

Jamie Beck, president and chief executive officer, commented: "With our continued success at expanding and defining our resource potential, we have commenced 2023 with our most aggressive drilling campaign to date. There are nine rigs currently available at the project, and we have exceeded expectations so far in 2023 on metres drilled. Our winterization efforts are now under way as the summer drilling season comes to a close, with the expectation of continuing the program with only minor interruptions for rig maintenance and remobilization. Our [first quarter] 2023 drilling results were composed of a mix of both large and small stepouts to the north and south of our current interpretation of the Aurora zone, and we will focus more exclusively on the Aurora and Bonita zones as winter conditions arrive on site. Our exploration results demonstrate the potential of the project as one of the most significant copper-gold-silver discoveries of its generation."

Q1 2023 highlights:

• Continued exploration success, highlighted by:
  • Multiple holes drilled into the Aurora zone across large intervals with consistently strong mineralization; several of the holes reported are entirely outside of the company's existing resource pit shell and serve to improve the geological interpretation of the deposit;
  • Drilled the most northerly hole in the Aurora zone, extending it 160 metres northeast, leaving it wide open toward the Bonita zone, which sits a further 1.5 kilometres to the northeast;
  • Hole 68A setting a new record at Filo del Sol for the longest interval to date at almost 1.8 kilometres in length;
  • Established a new mineralized zone at the Flamenco exploration target with the first hole drilled in an area that sits over three kilometres to the south of the Aurora zone;
• The Aurora zone, the Bonita zone and the high-grade Breccia 41 area remain open to expansion in several directions and drilling to further define them is continuing;
• On March 20, 2023, the company announced that it had been added to the ETFMG Prime Junior Silver Miners ETF (SILJ) pursuant to the SILJ's quarterly rebalancing, effective market close on March 17, 2023;
• On March 13, 2023, the company announced the appointment of Joyce Ngo and Peter J. O'Callaghan to its board of directors; concurrently, Alessandro Bitelli retired and stepped off the board of directors; the changes resulted in the company's board of directors having a total of nine members.

Q1 2023 drilling and assay results

During and subsequent to the end of the first quarter of 2023, the company announced the following results from the continuing drill program:

• FSDH070A, an infill hole in the Aurora zone, intersected 1,056.5 metres at 0.86 per cent copper equivalent from a depth of 282 m, including 670.4 m at 0.97 per cent CuEq from 369.7 m. The hole ended in strong mineralization at a depth of 1,338.5 m due to rig capacity.
• FSDH071, an infill hole in the Aurora zone, intersected 1,028.0 m at 1.16 per cent CuEq from a depth of 292 m, including 172.0 m at 2.14 per cent CuEq from 408.0 m and 237.5 m at 1.49 per cent CuEq from 776.0 m. The hole ended in mineralization at a depth of 1,320 m due to rig capacity. The entire hole is outside of the resource pit shell.
• FSDH068A intersected 1,776.0 m at 0.70 per cent CuEq from a depth of 18.0 m, including 1,120.0 m at 0.92 per cent CuEq from 394.0 m and 724.2 m at 1.08 per cent CuEq from 574.0 m. The hole is entirely outside of the resource pit shell.
• FSDH069A intersected 1,296.5 m at 1.00 per cent CuEq from a depth of 138.0 m, including 31 m at 127.0 grams per tonne silver from 404.0 m in the Silver zone, 598.0 m at 1.51 per cent CuEq from 498.0 m and 94.0 m at 3.01 per cent CuEq from 792.0 m. The hole ended in strong mineralization at a depth of 1,434.5 m due to rig capacity. The hole is entirely outside of the resource pit shell.
• FSDH074 intersected 1,022.0 m at 0.66 per cent CuEq from a depth of 278.0 m, including 516.0 m at 0.79 per cent CuEq from 644.0 m and 252.0 m at 0.85 per cent CuEq from 840.0 m. The hole was collared on Section 9200N, 200 m east of FSDH068A and 400 m east of FSDH041. The hole was stopped in porphyry mineralization at 1,509.0 m. The hole is entirely outside of the resource pit shell.
• FSDH077 intersected 2.0 m at 10.35 g/t gold from a depth of 192.0 m plus 516.2 m at 0.20 per cent CuEq from 404.0 m. The hole was collared on Section 6000N and is the first hole in the new Flamenco target. The hole was stopped at 920.2 m.
• FSDH073 intersected 983.9 m at 0.89 per cent CuEq from a depth of 404.5 m, including 614.0 m at 1.06 per cent CuEq from 600.0 m and 272.0 m at 1.33 per cent CuEq from 756.0 m.

Outlook

Drilling continues to be the primary focus with nine drill rigs at site. Drilling will remain a mix of both large and small stepouts to the north and south of the Aurora zone, as well as resource definition drilling within it. The company continues to maintain a strong focus on improving drill productivity through a variety of initiatives, and is planning to continue drilling and field operations throughout the South American winter.

Data collected from the current campaign will be used to develop a comprehensive geological model, which will guide further exploration and form the basis of an eventual update to the mineral resource estimate. The company will continue preliminary metallurgical testwork on the sulphide mineralization, as well as environmental and social baseline programs in support of future project permitting.

The company's plans and timelines are subject to equipment and staff availability, along with being able to operate safely and effectively throughout the winter and in accordance with the company's health and safety protocols.

          SELECTED FINANCIAL INFORMATION
             (in thousands of dollars)
  
                           March 31,    Dec. 31,  
                               2023        2022     

Cash and cash equivalents   $58,711     $74,915   
Working capital              35,809      60,296   
Mineral properties           10,222       9,737    
Total assets                 70,865      85,964   

The financial information in this table 
was selected from the financial statements, 
which are available on SEDAR and the 
company's website.

                        FINANCIAL RESULTS
      (in thousands of dollars, except per-share amounts)    

                                                Three months ended  
                                                       March 31,           
                                                    2023      2022     

Exploration and project investigation            $34,309   $14,869   
General and administration (G&A), 
excluding share-based compensation expense (1)     2,280       955      
Share-based compensation expense (1)               3,218     1,350    
Net loss                                          29,914    14,400   
Basic and diluted loss per share                    0.24      0.12     

(1) Share-based compensation is a non-cash cost which reflects 
the amortization of the estimated fair value of share options 
over their vesting period. The fair value of share options is 
calculated using the Black-Scholes pricing model, which relies
heavily on the company's share price and historical share 
price volatility. Due to the material increase in the company's 
share price and volatility since 2021, the calculated fair 
value of the company's share options has increased considerably, 
resulting in a higher share option value and resultant 
share-based compensation expense being recognized.     
The financial information in this table was selected from the 
company's condensed interim consolidated financial statements 
for the three months ended March 31, 2023, which are available 
on SEDAR and on the company's website.

During the three months ended March 31, 2023, the company incurred a net loss of $29.9-million. The net loss is driven primarily by $34.3-million in exploration and project investigation expense and $4.9-million in general and administrative expense. These expenses were partially offset by a gain of $8.4-million resulting from the use of marketable securities for the purposes of facilitating intragroup funding transfers. For the three months ended March 31, 2022, the company reported a net loss of $14.4-million consisting mainly of $14.9-million in exploration and project investigation expense and $2.1-million in G&A expense. These expenses were partially offset by a funding gain of $2.0-million.

Liquidity and capital resources

As at March 31, 2023, the company had cash and cash equivalents of $58.7-million and net working capital of $35.8-million, compared with cash and cash equivalents of $74.9-million and net working capital of $60.3-million as at Dec. 31, 2022. The decrease in the company's cash and cash equivalents and net working capital is due primarily to funds used in operations and for general corporate purposes, plus amounts used in the acquisition of equipment and facilities for the Filo del Sol project, offset by a net $1.1-million BHP top-up and $1.4-million in gross proceeds received by the company in relation to the exercise of stock options during the three months ended March 31, 2023. The company plans to deploy its treasury to finance continuing exploration and advancement of the Filo del Sol project and for working capital and general corporate purposes.

About Filo Mining Corp.

Filo Mining is a Canadian exploration and development company focused on advancing its 100-per-cent-owned Filo del Sol copper-gold-silver deposit located in San Juan province, Argentina, and adjacent Region 3, Chile. The company's shares are listed on the Toronto Stock Exchange and the Nasdaq First North Growth Market under the trading symbol FIL and on the OTCQX under the symbol FLMMF. Filo Mining is a member of the Lundin group of companies.

Qualified persons

The scientific and technical disclosure for the Filo del Sol project included in this news release has been reviewed and approved by Bob Carmichael, PEng, and Jamie Beck, PEng. Mr. Carmichael is Filo Mining's vice-president of exploration and a qualified person under National Instrument 43-101 (Standards of Disclosure for Mineral Projects). Mr. Beck is Filo Mining's president and chief executive officer, and is also a qualified person under NI 43-101.

Additional information

The company's condensed interim consolidated financial statements for the three months ended March 31, 2023, and related management's discussion and analysis are available on the company's website or under its profile on SEDAR.

The company's certified adviser on the Nasdaq First North Growth Market is Aktieinvest FK AB.

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