Mr. Jamie Beck reports

FILO DRILLS 1,077M AT 0.89% CUEQ; EXTENDING THE AURORA ZONE 200M TO THE NORTHWEST

Filo Corp. has released assay results from holes FSDH097, FSDH098 and FSDH100 from the Filo del Sol project in San Juan, Argentina. Highlights and detailed results are shown herein:

• Drill hole FSDH097 intersected 1,077.0 metres at 0.89 per cent copper equivalent from 368.0 m, including:
  • 149.0 m at 128.0 grams per tonne silver from 372.0 m;
  • 237.0 m at 1.20 per cent CuEq from 707.0 m;
• Drill hole FSDH098 intersected 953.8 m at 0.42 per cent CuEq from 410.0 m;
• Drill hole FSDH100 intersected 631.3 m at 0.68 per cent CuEq from 256.0 m, including:
  • 20.0 m at 95.8 g/t Ag from 340.0 m.

Commenting on the release, Jamie Beck, president and chief executive officer, stated: "These three holes span a distance of 1.6 kilometres and expand the deposit to the west along that entire distance. Hole 100 is a perfect example of our successful Aurora zone exploration stepout drilling. It adds over 500 m in depth beyond our current resource pit shell and extends the western margin of the deposit by 250 m. Operationally, we have seen the pace of our drilling accelerate with summer conditions and continuous improvement from our contractors. January was the most productive month in the project's history with 5,400 metres drilled. We have made good progress in testing several exploration targets and completing large-scale stepouts this austral summer and anticipate excellent progress throughout the remainder of the year."

FSDH097 was collared on Section 9500N, 212 m west of FSDH061, and drilled to the west at minus 70 degrees. This hole has extended the Aurora zone by over 200 m to the west of FSDH061 and over 150 m north of FSDH072, and it remains open to the west and north, as well as to the east of FSDH061.

The hole intersected rhyolite country rock to a depth of 196 m, where it entered the main mineralized breccia. The breccia was cut by a narrow porphyry interval from 618 m to 636 m, representing the updip extent of larger porphyry bodies intersected at depth. The rock was strongly oxidized and leached down to the start of the main mineralized interval at 368 m. An unusually broad silver zone was intersected from 372 m to 521 m, including a much higher-grade central portion with eight m at 725.2 g/t Ag between 466 m and 474 m.

Mineralization was quite homogeneous throughout the breccia, with a higher-grade section at 1.20 per cent CuEq between 707 m and 944 m corresponding to increased sulphide content and breccia intensity. Grade within the breccia diminished toward the lower contact with the granite country rock at about 1,201 m, and the hole ended in mineralization with the last 20 m to the end at 1,445 m returning 0.38 per cent CuEq (0.34 per cent Cu, 0.05 g/t gold and 0.6 g/t Ag).

FSDH098 was collared on Section 11300N, 520 m west of FSDH087, and drilled to the west at minus 70 degrees. This hole is to the west of the main Filo trend between Bonita and Aurora with the closest hole to it over 400 m away. It extends the deposit about 500 m west of FSDH087 and fills a 750-metre gap between FSDH043 to the south and FSDH101 to the north.

The core is strongly leached down to 420 m, where an increase in copper grade corresponds to the bottom of the leached zone. The silver zone was intersected over 20 m between 370 m and 390 m, and, although the grade was low at 36 g/t Ag, this interval is over 800 m north of the intersection in FSDH097 and demonstrates the persistence of this zone.

The hole intersected rhyolite down to a depth of 768 m, where it entered granite, continuing in this lithology to its end at 1,363.8 m. Mineralization is consistent throughout the hole, continuing to the end with the last 18 m averaging 0.38 per cent CuEq (0.34 per cent Cu, 0.06 g/t Au and 0.7 g/t Ag).

FSDH100 was collared on Section 8800N, 200 m west of FSDH064, testing the western extent of the Filo/Aurora trend in this area. It extends the western margin of the deposit by about 250 m and is within the resource pit shell to a depth of 350 m.

The hole appears to have intersected the main breccia unit from surface although intense weathering and leaching make identification of lithology challenging over the upper 100 m of the hole. The silver zone was intersected over 20 m between 340 m and 360 m, correlating well with intersections of this zone in several holes to the east. Strong leaching continues to a depth of about 420 m, with hypogene sulphide mineralization from here to the end of the hole. Grades are moderate and homogeneous throughout the hypogene section. The hole ended in mineralization at a depth of 887.3 m due to a problem with the drill, with the last 20 m averaging 0.43 per cent CuEq (0.29 per cent Cu, 0.18 g/t Au and 1.1 g/t Ag).

Outlook

Drilling is continuing with nine rigs active on the project. Drill holes FSDH101 (1,380 m), FSDH102 (1,214 m), FSDH104 (1,447 m), FSDH105 (1,449 m), FSDH106 (1,103 m), FSDH108 (1,184 m) and FSDH111 (853 m) are complete with assays pending. Assay results for completed holes will be released as they are received, analyzed and confirmed by the company. Drill holes FSDH099, FSDH103, FSDH107, FSDH109, FSDH110 and FSDH112 through FSDH115 are under way. Its goal remains on track to expand Filo into one of the largest and most important 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 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 at Estancia Guanizuil near the town of Rodeo, 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. 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 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 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 is a member of the Lundin group of companies.

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