Mr. Jamie Beck reports

FILO DISCOVERS NEW HIGH-GRADE ZONE AT BONITA; REPORTS 212M AT 1.15% CUEQ WITHIN 1,368M AT 0.56% CUEQ

Filo Corp. has released assay results from holes FSDH088, FSDH090 and FSDH091 from the Filo del Sol project in San Juan, Argentina. Highlights and detailed results are shown along with accompanying figures:

• Drill hole FSDH091 intersected 1,368.0 metres at 0.56 per cent copper equivalent from 168.0 m, including:
  • 837.2 m at 0.70 per cent CuEq from 672.8 m;
  • 212.0 m at 1.15 per cent CuEq from 872.0 m;
  • Collared between holes FSDH060 and FSDH087, this hole continues to confirm continuity of mineralization between Aurora and Bonita, and discovers a new high-grade zone;
• Drill hole FSDH090 intersected 1,518.5 m at 0.48 per cent CuEq from 100.0 m, including:
  • 22.0 m at 490.8 grams per tonne silver from 108.0 m;
  • 657.0 m at 0.56 per cent CuEq from 665.0 m;
  • Collared 730 m south of FSDH091 between Aurora and Bonita;
• Drill hole FSDH088 intersected 992.0 m at 0.63 per cent CuEq from 66.0 m, including:
  • 582.0 m at 0.73 per cent CuEq from 436.0 m;
  • Collared in the Filo sector, south of Aurora and 2.5 kilometres south of FSDH091.

Commenting on the release, Jamie Beck, president and chief executive officer, stated: "Hole 91 intersected a new high-grade zone near Bonita, and it is the first instance of consistent grades greater than 1 per cent CuEq outside of Aurora. At over one km to the north of the Aurora zone, this opens up an entirely new area to explore for high grade. Given that the closest holes to 91 are hole 60, 330 m to the north, and 87, 550 m to the south, we have a tremendous amount of room to grow this zone as we continue to explore. Hole 88, drilled 2.5 km to the south of hole 91, on the other side of the Aurora zone, provides a reminder of how big this deposit is."

FSDH088 was collared on Section 8400N and drilled to the west at minus 67 degrees. The hole penetrated the current oxide resource to a depth of 394 m. The main mineralized breccia was intersected to a depth of 754 m, where there is a sharp contact to a mineralized porphyry unit, which continues to the end of the hole. The hole was ended shallower than planned as it deviated unexpectedly to the south, coming close to FSDH080.

FSDH090 was collared on Section 10100N, 230 m south of FSDH087, and drilled to the west at minus 72 degrees. The hole intersected a number of high-grade sulphide veins over the upper several hundred metres, similar to those seen in FSDH087. These include a 22-metre intersection at 490.8 g/t silver, which may correlate with a 16-metre interval of 4.73 per cent CuEq (including 50 g/t silver) 300 m away in FSDH087. Recent and continuing drilling is showing that these high-grade veins are a consistent feature of the area north and east of Aurora, and they may prove to be an important part of the deposit.

FSDH091 was collared on Section 10800N and drilled to the west at an angle of minus 70 degrees. Again, a series of high-grade veins was intersected down to about 650 m, where mineralization transitions to primarily disseminated, with grades becoming more consistent and uniform. The hole intersected a very high-grade section beginning at 872 m, averaging 1.15 per cent CuEq over 212 m. Copper mineralization in this interval contains an unusually high proportion of bornite, along with enargite, chalcocite and chalcopyrite, and is primarily disseminated and in veinlets. This is the first instance of consistent grades greater than 1 per cent CuEq over more than 200 m discovered outside of the Aurora zone and opens up an entirely new area to explore for high-grade mineralization. For reference, the closest holes to this intersection are FSDH060, which is 330 m to the north, and FSDH087, which is 550 m to the south.

Outlook

Drilling is continuing with nine rigs active on the project, including FSDH086, which is complete to 1,414 m, FSDH089, which is complete to 677 m, and FSDH093, which is currently at a depth of 1,568 m. Assay results for completed holes will be released as they are received, analyzed and confirmed by the company.

With the weather currently moderating as the company moves into spring, exploration focus over the next few months will be the areas adjacent to the Aurora zone: drilling below Tamberias to the southwest and drilling to the east and west of the Aurora-Bonita link, following up the high-grade intersection in FSDH091, along with testing a new eastern trend identified by its geophysics and hole FSDH085. Drill targeting not only will continue its search for the edges of the system but also could add significant mineralization around the known deposit. This work ensures Filo del Sol remains on track to expand into one of the largest copper discoveries in recent times.

About Filo del Sol

Filo del Sol is a high-sulphidation epithermal copper-gold-silver deposit associated with one or more large porphyry copper-gold systems. Overlapping mineralizing events combined with weathering effects, including supergene enrichment, have created several different styles of mineralization, including structurally controlled and breccia-hosted gold, manto-style high-grade silver (plus or minus copper), and high-grade supergene enriched copper within a broader envelope of disseminated, stockwork and breccia-hosted sulphide copper and gold mineralization. This complex geological history has created a heterogeneous orebody, which is characterized by zones of very high-grade copper plus or minus gold plus or minus silver mineralization within a large envelope of more homogeneous, lower-grade mineralization.

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'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 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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