Mr. Jamie Beck reports

FILO MINING EXPANDS BONITA OVER 200M EAST WITH 1,365M AT 0.42% CUEQ; REPORTS 1,363M AT 0.77% CUEQ IN AURORA

Filo Mining Corp. has released assay results from holes testing four different zones at the Filo del Sol project in San Juan, Argentina. Highlights and detailed results are shown herein.

• Drill hole FSDH075 in the Bonita zone intersected 1,365 metres at 0.42 per cent copper equivalent from 197.1 metres, including:
  • 291.7 m at 0.66 per cent CuEq from 910.4 m;
  • Collared 222 m east of the Bonita discovery hole, FSDH060.
• Drill hole FSDH076 in the Aurora zone intersected 1,363 m at 0.77 per cent CuEq from 180 m, including:
  • 354.9 m at 1.01 per cent CuEq from 496 m;
  • Collared 2.2 kilometres southwest of FSDH075.
• A magnetotelluric geophysical survey was recently completed and supports the interpretation of a geological connection between Aurora and Bonita. Modelling of the survey data shows a zone of elevated conductivity trending north-northeast along the length of the Filo del Sol and Aurora zones and continuing strongly as far as holes FSDH060 and FSDH075 at Bonita. Combined with the geology seen in these two holes, this provides strong evidence that the system is continuous along at least 3.5 km and that Bonita is the northern part of the system, rather than a separate zone.

Commenting on the results, Jamie Beck, president and chief executive officer, stated: "Hole 75 has successfully extended the Bonita zone to the east and at depth, leaving it open to expansion in all directions. Our recently completed MT geophysical survey strongly indicates continuity between Aurora and Bonita across the undrilled gap of 1.3 km between FSDH083 in the south and FSDH075 in the north. We are currently setting drills up to test this gap, which offers the potential to almost double the size of the deposit if the grade is there. We also have hole FSDH085 under way, 750 m to the east of FSDH075, targeted on geophysics and surface geology, which, if successful, will continue to expand Bonita. The initial holes at the Gemelos and Flamenco targets were encouraging, and we will follow up on these areas once the winter season concludes."

FSDH075 was collared 222 m east of hole FSDH060 on Section 11000N and drilled toward the west parallel to it.

The geology logged in these two holes has many similarities to that at Aurora, suggesting that Bonita is part of the same system, rather than a discrete porphyry centre. The host rocks consist of fragmental and coherent rhyolite intruded by granite at depth, as at Aurora. These units are cut by a body of magmatic-hydrothermal breccia intruded by porphyry dikes and a phreatic breccia with vuggy residual quartz clasts near the top of FSDH075. Alteration includes quartz-clay in the rhyolite and sericitic alteration with high-sulphidation mineralization in the granite. Potassic alteration is encountered toward the bottom of FSDH075 near the porphyry dikes.

The interval starting at 197.1 m is associated with a phreatic breccia with quartz-alunite alteration, similar to the upper levels of high-grade sections of the Aurora zone, and drilling deeper on this structure is a high priority. The interval starting at 910.4 m is adjacent to and within the magmatic-hydrothermal breccia similar to the main mineralized unit at Aurora. Additional drill testing of this breccia to determine its size and tenor is also a high priority.

FSDH076 was collared from the same platform as FSDH070A on Section 9000N and drilled to the west at minus 70 degrees. It is separated by 90 m from the end of FSDH070A and continued an additional 204.5 m deeper. Geology correlated very well with holes FSDH070A, FSDH046 and FSDH032A -- all of which are on the same section. The magmatic-hydrothermal breccia extended from 386 m to 811 m, where the hole transitioned into well-mineralized porphyry cut by a dense stockwork of A-type veins accompanied by a sharp change from high-sulphidation to porphyry-style mineralization.

The lower (western) contact of the porphyry was intersected at 1,198 m, and the hole passed back into the breccia, continuing in porphyry mineralization characterized by chalcopyrite plus or minus bornite rather than the high-sulphidation assemblage of enargite plus chalcocite plus or minus covellite plus bornite. The hole continued in mineralized breccia to its end at 1,543 m.

FSDH079 is the first hole drilled into the Gemelos target and was collared 2.6 km northeast of FSDH075. Although copper and gold grades were low throughout the hole, the volcanosedimentary sequence intersected is weakly to strongly altered and pyritized, defining the classic pattern of a high-sulphidation epithermal system. The advanced argillic alteration with associated high-sulphidation mineralization is interpreted to be linked to an associated porphyry system elsewhere in the Gemelos alteration zone. This zone is roughly equivalent in size to the Filo del Sol alteration zone and remains a high-potential target, which warrants additional work.

FSDH081 is the second hole drilled into the Flamenco target. For reference, this hole is located 8.2 km southwest of FSDH079, highlighting the size of the exploration area at Filo. It was collared 723 m southwest of FSDH077, the first Flamenco hole which was reported in the company's news release dated March 16, 2023. This hole expanded the area of moderate-grade mineralization intersected in hole FSDH077 and continued to support Flamenco as a high-quality exploration target, which requires significant additional work.

Outlook

Drilling is continuing with nine rigs active on the project and, with winter imminent, will focus on the Aurora-Bonita gap and Aurora infill drilling.

Holes that have been completed with assays pending include:

• FSDH072 -- Aurora (1,787 m);
• FSDH080 -- Aurora (1,348 m);
• FSDH082A -- Gemelos (839.5 m);
• FSDH083 -- Aurora North extension (1,550 m);
• FSDH085 -- Bonita East (1,199 m).

Assay results for completed holes will be released as they are received, analyzed and confirmed by the company. Four rigs are currently moving onto new holes, including three in the Aurora-Bonita gap, and the ninth rig is completing the last of a series of geotechnical holes to examine a potential future underground exploration adit.

Qualified persons and technical notes

The scientific and technical disclosure for the Filo del Sol project included in this news release has been reviewed and approved by Bob Carmichael, BASc, PEng, who is the qualified person as defined by National Instrument 43-101. Mr. Carmichael is vice-president, exploration, for the company. Samples were cut at Filo Mining's operations base near the town of Guanizuil, Argentina, by company personnel. Diamond drill core was sampled in two-metre intervals (except where shortened by geological contacts) using a rock saw for sulphide mineralization. Oxide mineralization was cut with a core splitter to prevent dissolution of water-soluble copper minerals during the wet sawing process. Core diameter is a mix of PQ, HQ and NQ depending on the depth of the drill hole. Reverse circulation samples were collected at the drill site by company personnel with splitting carried out at the company's field camp near the drill sites. Individual samples represent final splits from two-metre intervals down the hole. Samples were bagged, tagged and packaged for shipment by truck to the ALS preparation laboratory in Mendoza, Argentina, where they were crushed and a 500-gram split was pulverized to 85 per cent passing 200 mesh. The prepared samples were sent to the ALS assay laboratories in either Lima, Peru, or Santiago, Chile, for copper, gold and silver assays and multielement ICP and sequential copper analyses. ALS is an accredited laboratory which is independent of the company. Gold assays were by fire assay fusion with AAS finish on a 30-gram sample. Copper and silver were assayed by atomic absorption following a four-acid digestion. Samples were also analyzed for a suite of 36 elements with ICP-ES, and a sequential copper leach analysis was completed on each sample with copper greater than 500 parts per million (0.05 per cent). Copper and gold standards, as well as blanks and duplicates (field, preparation and analysis), were randomly inserted into the sampling sequence for quality control. On average, 9 per cent of the submitted samples are quality control samples. No data quality problems were indicated by the quality assurance/quality control program.

Mineralized zones within the Filo del Sol deposit are typically flat-lying or bulk porphyry-style zones, and drilled widths are interpreted to be very close to true widths.

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 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.

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