Mr. Jamie Beck reports

FILO REPORTS 1,406M AT 1.13% CUEQ, INCLUDING 56M AT 5.79% CUEQ; GEOTECH HOLE ENCOUNTERS UNEXPECTED MINERALIZATION

Filo Corp. has released assay results from hole FSDH084 testing the Aurora zone along with a summary of the recent geotechnical drilling program at the Filo del Sol project in San Juan, Argentina. Highlights and detailed results are shown below:

• Drill hole FSDH084 infills a 160-metre gap between holes FSDH055C and FSDH057 with 1,406 m at 1.13 per cent copper equivalent from 170 m, including:
  • 46 m at 310 grams per tonne silver from 394 m in the Silver zone;
  • 642 m at 1.70 per cent CuEq from 616 m;
  • 56 m at 5.79 per cent CuEq from 772 m.
• Assays received from the geotechnical program returned several mineralized intersections and confirm the presence of strong hydrothermal alteration extending as far as two kilometres to the east of the Aurora zone. In particular:
  • Hole FSGT006 intersected 12 m at 5.21 g/t Au from 36 m over 600 m to the east of the Aurora zone. This intersection coincides with a large zone of high conductivity indicated by the recently completed MT geophysical survey, which is parallel to the Filo-to-Bonita anomaly and extends for at least two km.
  • The presence of either a parallel mineralized zone or a much bigger system than has been recognized to date opens up a large area of prospective ground to the east for additional exploration.

Commenting on the release, Jamie Beck, president and chief executive officer, stated: "Hole 84 is the second-best hole ever drilled at Filo del Sol from a grade-thickness perspective. The results from hole 84 confirm continuity of high-grade mineralization within the Aurora zone and serve as a reminder of the overall size and grade of this remarkable deposit. The unexpected mineralization and alteration encountered in the geotechnical holes, combined with the recent geophysical survey results, is starting to suggest that the Filo del Sol system may be even bigger than we think."

FSDH084 was collared on Section 9300N, approximately halfway between hole FSDH055C on Section 9200N and holes FSDH057 and FSDH069A on Section 9400N, and confirms continuity of the zone, including the high-grade Breccia 41 zone, in this area. The hole reached a final depth of 1,576 m and ended in mineralized breccia dominated by granite fragments. The geology in this hole matches the nearby holes and the geological interpretation very well, and provides additional evidence of the regular grade distribution and predictability of mineralization within the Aurora zone.

Geotechnical drilling was carried out in support of the company's studies of a potential underground adit to provide platforms to more efficiently drill out the Aurora zone and Breccia 41. Five holes, totalling 1,597 m of drilling, were completed, and all holes were sampled to characterize the geochemistry of potential waste rock. This drilling encountered significant mineralization in the form of a 12-metre intersection returning 5.21 g/t gold, including 4.0 m at 10.25 g/t gold, at a shallow depth in hole FSGT006. This hole is 600 m to the east of the nearest hole into the Filo del Sol deposit, and although copper values are uniformly low, it indicates that peripheral alteration and mineralization extend to this area.

The concept of a new zone of mineralization parallel to the Filo del Sol deposit, or an extensive easterly extension to it, is also supported by the 2023 geophysical surveys and by other holes from the geotechnical program. These holes intersected significant intervals of elevated zinc and silver 1.6 kilometres east of the nearest Filo del Sol deposit holes. These metals are commonly elevated in the peripheral zones of porphyry deposits and often form a useful indicator of nearby copper and gold mineralization. At Filo del Sol, they are also elevated within the high-sulphidation (HS) system, and their presence this far away from the Filo-Aurora trend is highly encouraging.

Holes FSGT006 and FSGT007 lie within, or adjacent to, a conductive zone modelled from induced polarization and magnetotelluric data collected during recent geophysical surveys. This zone trends parallel to the main Filo conductivity anomaly and is stronger at shallower depths. The other geotechnical holes are to the east of the surveyed area.

Taken together, the drilling and geophysical data suggest the presence of either a parallel mineralized zone or a much bigger system than has been recognized to date, and open up a large area of prospective ground to the east for additional exploration. No determination has been made on the potential adit at the time, and the unexpected mineralization encountered from the geotechnical drilling will lead to re-evaluation.

Outlook

Drilling is continuing with nine rigs active on the project, focusing on Aurora infill and the Aurora-Bonita gap. The drilling productivity this Austral winter has been remarkably better compared with last winter, due to milder weather conditions and improvements in operational protocols. FSDH087 (Aurora-Bonita gap) is complete with assays pending, and reached a final depth of 1,472 m. Assay results for completed holes will be released as they are received, analyzed and confirmed by the company.

Qualified person 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'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.

(1) Copper equivalent (CuEq) for drill intersections is calculated based on $3 (U.S.) per pound copper, $1,500 (U.S.) per ounce gold and $18 (U.S.) per ounce silver, with 80-per-cent metallurgical recoveries assumed for all metals.

About Filo Corp.

Filo 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 III, 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 is a member of the Lundin group of companies.

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