Mr. Jamie Beck reports

FILO REPORTS Q3 2023 RESULTS

Filo Corp. has released its results for the three and nine months ended Sept. 30, 2023.

Jamie Beck, president and chief executive officer, commented: "We have successfully continued our nine-rig drilling campaign through the South American winter season with limited impact on drilling productivity. The winter campaign yielded some of the best results of the year, materially increasing the area of known mineralization and identifying additional high-grade zones. Multiple holes support the idea of a continuous mineralization between the Aurora and Bonita zones. We enter the spring with optimism that our exploration efforts will continue to grow the size, and demonstrate the strategic nature, of the deposit."

Q3 2023 highlights

• Continued exploration success, highlighted by:
  • Assay results announced for hole FSDH091 resulted in the first intersection of a high-grade zone near the Bonita zone, and the first instance of consistent grades greater than 1 per cent CuEq (copper equivalent) outside of the Aurora zone. FSDH091 included a high-grade section averaging 1.15 per cent CuEq over 212 m. At over one kilometre north of the Aurora zone, the results from this hole open up an entirely new area to explore for high-grade mineralization.
  • Hole FSDH090, collared 730 metres to the south of FSDH091, intersected 1,518.5 m at 0.48 per cent CuEq and intersected a number of high-grade sulphide veins over the upper several hundred metres, similar to those seen in FSDH087. This includes a 22 m intersection of 490.8 grams per tonne silver which may correlate with a 16 m interval of 4.73 per cent CuEq (including 50g/t silver) 300 m away in FSDH087.
  • Assay results announced for FSDH088, collared in the Filo sector, included 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. Hole FSDH088, which is south of Aurora and 2.5 km south of FSDH091, demonstrates the considerable size of the deposit.
  • Assay results announced for hole FSDH084 resulted in the second-best hole from a grade-thickness perspective ever drilled at the Filo del Sol project. The results of hole FSDH084 confirm the continuity of high-grade mineralization within the Aurora zone, including the high-grade Breccia 41 zone.
  • The assay results of FSDH091, FSDH090 and FSDH087 support the idea of continuous mineralization across the 1.3 km distance between the Aurora and Bonita zones. Additional holes in this area are under way, which will provide critical information on the continuity of mineralization from Tamberias in the south to Bonita in the north (a distance of over five kilometres).
  • Assay results announced from the company's geotechnical drilling program, 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:
    • Results from hole FSGT006 returned several mineralized intersections, including 12 m at 5.21 g/t Au at shallow depth. 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.
    • Five holes were drilled in total for a cumulative 1,597 m. Consistent with the results of the company's 2023 geophysical surveys, the geotechnical drilling results confirm the presence of strong hydrothermal alteration extending as far as two km to the east of the Aurora zone, which opens up a large area of prospective ground for additional exploration.

Q3 2023 drilling and assay results

Drilling and assay results disclosed by the company during and subsequent to the first three quarters of 2023 are summarized in Appendix 1 to this news release.

Outlook

Drilling continues to be the company's 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.

Data collected from the current campaign are being 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 is continuing 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 in accordance with the company's health and safety protocols.

For the three and nine months ended Sept. 30, 2023, Filo incurred net losses of $23.4-million and $83.0-million, respectively (2022 -- $20.0-million and $48.0-million) including operating losses of $39.7-million and $118.4-million (2022 -- $26.2-million and $66.9-million) and net gains of $13.7-million and $31.0-million from the use of marketable securities (2022 -- $4.0-million and $16.6-million). Exploration and project investigation costs are generally the most significant expenses for the company and for the three and nine months ended Sept. 30, 2023, they accounted for approximately 92 per cent and 90 per cent of the operating losses, respectively (2022 -- 76 per cent and 85 per cent). The company expenses its exploration costs through the consolidated statement of comprehensive loss, except for mineral property option payments and mineral property acquisition costs, which are capitalized.

Liquidity and capital resources

As at Sept. 30, 2023, the company had cash and cash equivalents of $134.2-million and net working capital of $119.6-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 increase in the company's cash and cash equivalents and net working capital is due the non-brokered private placement completed in June, 2023, which resulted in net proceeds of $129.1-million, plus the net $1.1-million BHP top-up and $4.6-million in gross proceeds received by the company in relation to the exercise of stock options during the nine months ended Sept. 30, 2023. These cash inflows were offset by funds used in operations and for general corporate purposes, plus amounts used in the acquisition of mineral properties ($1.0-million) and equipment and facilities for the Filo del Sol project ($3.9-million).

The company will continue to deploy the majority of its treasury to finance continuing advancement of the Filo del Sol project, and to a lesser extent, for working capital and general corporate purposes.

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/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/minus gold plus/minus silver mineralization within a large envelope of more homogeneous, lower-grade mineralization.

Technical information

Copper equivalent is calculated based on $3.00 (U.S.)/pound Cu, $1,500 (U.S.)/ounce Au and $18 (U.S.)/oz Ag, with 80-per-cent metallurgical recoveries assumed for all metals. The formula is: CuEq per cent equals Cu per cent plus (0.7292 multiplied by Au g/t) plus (0.0088 multiplied by Ag g/t).

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.

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 in order 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. RC 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 and 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 g 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 QA/QC (quality assurance/quality control) program.

Details on assay procedures and the drill intersections provided in Appendix 1 can be found in the company's news releases dated January 10, 2023, February 2, 2023, March 16, 2023, April 13, 2023, April 13, 2023, May 30, 2023, July 4, 2023, July 11, 2023, August 21, 2023, September 5, 2023 and October 25, 2023.

Qualified persons

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

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.

As of the date of this news release, additional holes have been completed with assays pending, which include:

• FSDH086;
• FSDH089.

Assay results for these holes will be released as they are received, analyzed and confirmed by the company.

We seek Safe Harbor.