Mr. Jamie Beck reports

FILO ANNOUNCES 2024 EXPLORATION PLANS

Filo Corp. has provided an update on its exploration strategy for 2024 at the Filo del Sol project in San Juan, Argentina.

2023 highlights

Drilling continued at Filo del Sol year-round, with improved hole completion rates, consistent drill productivity and an outstanding safety record. With over 34,000 metres drilled through the end of November, its 2023 program is on track to exceed its plan.

The focus this year was drilling within the Aurora zone and connecting the gap that previously existed between Aurora and Bonita. In addition to producing some of its best ever drill intersections, drilling at Aurora refined its geological interpretation and improved its understanding of the deposit, leading to the development of a 3-D deposit model. Stepout holes highlighted that there is no gap between Aurora and Bonita and it is all part of one continuously mineralized trend, which is open at both ends. The opportunity for substantial growth of the deposit and the potential for new discoveries were highlighted by the results of geophysical surveys completed during the year and the discovery of new styles of mineralization in several drill holes.

Exploration plans for 2024

Next year's campaign will be the largest ever at Filo. Drilling will continue with nine diamond drill rigs on site throughout the year and 40,000 metres planned. Findings from the 2023 program have been used to guide its plans for 2024, with the focus shifting back to stepout holes and exploration growth.

Commenting on the plan for 2024, Jamie Beck, president and chief executive officer, stated: "Drilling within Aurora in 2023 was critical to improving our geological understanding at Filo. The focus in 2024, however, will shift back towards exploration growth as we step out from known zones of mineralization and test compelling new exploration targets. With 11 target zones distributed across an area of eight kilometres north-south and three kilometres east-west, we plan on testing the potential for Filo to be significantly larger than we currently know."

Two key objectives will be pursued in 2024

Stepout drilling around Aurora: Drilling between Tamberias and Bonita has outlined a five-kilometre-north-south, 0.8-kilometre-east-west and 1.5-kilometre-deep mineralized zone. Drilling in 2024 will step out from Aurora to more broadly test the potential for continuous mineralization throughout this six-cubic-kilometre volume. Defining this zone with more confidence has significant implications for value as it contemplates shapes for potential future extraction. Accordingly, drilling will focus north from Aurora into Refugio and Bonita, as well as exploring Tamberias and Filo to the east and west, and at depth.

Exploration: exploration work targeting new discoveries (including, but not limited to):

• North of Bonita: geophysics conductivity anomaly suggests mineralization extends farther north;
• Maranceles: a series of outcropping veins, potentially linked to Bonita;
• Refugio: following up on FSDH042 (48 metres at 1.01 grams per tonne gold -- see news release dated April 12, 2021), which sits at the western edge of its drill pattern;
• Cerro Vicuna: an untested porphyry target;
• Eastern trend: encouraged by FSDH085 (879 m at 0.47 per cent copper equivalent (0.32 per cent copper, 0.13 g/t gold and 6.0 g/t silver) -- see the news release dated July 11, 2023), which was a 700-metre eastern stepout east of Bonita; structural mapping completed in 2023, along with geophysics, suggests that there may be a parallel trend to the east of Filo that has yet to be explored;
• Flamenco and Gemelos: follow-up on initial work completed in 2023.

Core scanning and integration of artificial intelligence into its core logging and geological interpretation workflows with GeologicAI are being implemented at the project this season to improve workflow and enhance its geologic tool set. Additionally, geophysics work will continue in 2024, with plans for a seismic survey to help it define the structural framework and deposit geometry at depth. Metallurgical testwork, along with environmental and social baseline studies, will continue to progress commensurate with its exploration program.

Its goal is to ensure Filo remains on track to grow into one of the largest and most important copper discoveries in recent decades.

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.

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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