Mr. Jamie Beck reports

FILO DRILLS 955M AT 0.50% CUEQ IN 400M STEP-OUT NORTH OF BONITA, INCREASING THE DEPOSIT LENGTH TO AT LEAST 5.5KM

Filo Corp. has released assay results from eight holes from the Filo del Sol project. Highlights and detailed results are shown below.

• Drill hole FSDH103 intersected 1,260.0 metres at 0.86 per cent copper equivalent from 296.0 m in the Aurora zone, including:
  • 34.0 m at 5.19 per cent CuEq from 302.0 m;
  • 514.0 m at 1.04 per cent CuEq from 534.0 m.
• Drill hole FSDH108 intersected 955.2 m at 0.50 per cent CuEq from 216.8 m, including:
  • 624.0 m at 0.63 per cent CuEq from 382.0 m;
  • Extends Bonita zone 400 m to the north;
  • Increases Filo deposit length to at least 5.5 kilometres.

Commenting on the release, Jamie Beck, president and chief executive officer, stated: "With these initial results from our widely spaced summer exploration holes, we continue to see Filo grow as we search for the limits of the deposit. The holes in this release span a continuously mineralized distance of 4.8 km from hole 102 in the southern Tamberias zone through to hole 108, which remarkably has extended the Bonita zone another 400 m to the north. Hole 108 is one of the most significant holes drilled this year as it extends the entire Filo mineralized trend further north and intersected mineralization much shallower than previous Bonita holes to the south. The Filo trend is now established at a minimum of 5.5 km of continuous mineralization along its northeasterly trending axis, and recent holes on Section 8800N have established a minimum east-west width of 1.2 km in that part of the deposit.

"Despite these amazing distances, the deposit still remains open in several directions. In particular, Bonita remains open in all directions, and we have several other holes under way, which will help us better define this area of the deposit and investigate the link between it and Aurora to the south. Our drilling productivity continues to improve, with a total of 14,582 m drilled in the first quarter of 2024. With nine holes under way and two completed, pending assay results, we are well on our way to a record drill year."

FSDH0101 was collared on Section 10700N, 90 m south and 360 m west of FSDH091, and drilled to the west at minus 68 degrees.

The hole intersected rhyolite country rock to a depth of 421 m, where it entered the granite and continued in it to the end of the hole at 1,379.5 m. The hole appears to have been drilled just to the west of the main Filo trend and did not encounter the magmatic-hydrothermal breccia unit. One narrow porphyry interval was intersected from 1,325.3 m to 1,363.5 m.

Mineralization was relatively low down to 540 m, with the exception of a few sulphide veins from one to 10 m thick, and then increased from 540 m to 550 m and continued to the end of the hole with copper sulphides both disseminated and in veinlets.

FSDH102 was collared on Section 7000N, drilled to the east at minus 69 degrees, and was targeted below strong shallow oxide copper mineralization in the Tamberias zone. The hole is located 500 m to the west of FSDH029, which intersected 800 m at 0.45 per cent CuEq (0.24 per cent copper, 0.26 gram per tonne gold and 1.8 g/t silver).

The hole intersected a mix of different porphyry phases and breccias, including mafic units not seen farther north, to its end at 1,214.0 m. A shallow leached zone was intersected to a depth of 250 m, where a higher-grade incipient supergene enrichment zone was encountered to 349.6 m. Grades average 0.15 to 0.20 per cent CuEq from 478 m to the end of the hole, cut by several mineralized sulphide veins up to two m in length.

FSDH103 was collared on Section 8600N, drilling across the Aurora zone from the west toward the east at an angle of minus 69 degrees.

The hole intersected a strongly leached zone to a depth of 296 m, where it entered a strong supergene enrichment zone, which continued to 357 m and was highlighted by an eight-metre section at 10.06 per cent Cu. This intersection is just below the prefeasibility study resource pit shell, offering the opportunity for an expansion to the oxide resource. The hole continued in rhyolite country rock to the main breccia contact at 494 m, stayed in breccia to 1,545 m when it entered a porphyry and continued in the porphyry to the end of the hole at 1,623 m. Mineralization within the porphyry was in the 0.1-per-cent-copper-equivalent range.

FSDH104 was collared on Section 10800N and drilled to the west at an angle of minus 69 degrees. This hole is located 277 m southwest of FSDH085 and 800 m east of FSDH091, and has extended the Bonita zone mineralization.

As with hole FSDH085, this hole was collared in a mineralized hydrothermal breccia with gypsum cement and containing specularite, pyrite, sphalerite, galena, chalcopyrite and bornite typical of an intermediate-sulphidation assemblage. Both holes intersected the western part of the breccia only, and it is open to the east, to the north, to the south and at depth. A 66-metre interval of the breccia in FSDH104 returned 0.48 per cent CuEq (0.17 per cent Cu, 0.15 g/t Au and 22.4 g/t Ag), and it remains as a secondary exploration target in the Bonita area.

This breccia is developed in rhyolite country rock, which continues to a contact with granite country rock at 466 m, displaying the same relationship as in hole FSDH085. The granite continues to about 1,200 m, where the hole encountered a breccia to the end at 1,446.8 m. The entire hole is cut by sporadic sulphide veins and silicified ledges up to six m in length and carrying moderate values of Cu, Au and Ag.

The deeper magmatic-hydrothermal breccia is tentatively correlated with similar breccia intersections in holes FSDH085 and FSDH091, suggesting a very large body, which represents a high-potential exploration target. Similar to those holes, the best mineralization here is developed in a wide band spanning the breccia contact and appears to be relatively flat-lying. Taken together, these holes and others in the Bonita zone are starting to outline a very large porphyry/breccia system, which appears to be continuous to the south toward the Aurora zone and remains open in all directions. This mineralized breccia extends far to the east of the Filo trend, and its southern extension would lie to the east of the main trend.

FSDH105 was collared on Section 10300N and drilled to the west at an angle of minus 70 degrees. This hole is located 780 m southwest of FSDH104 and 300 m east of FSDH087.

The hole intersected an unusual width of microdiorite to a depth of 630 m and possibly drilled down a microdiorite dike rather than intersecting a large body of this lithology, as it is not seen anywhere near this width elsewhere in the deposit area. The hole then transitioned to granite until its end at 1,449.0 m. The absence of the magmatic-hydrothermal breccia in this hole suggests it was drilled just to the east of the main Aurora trend.

FSDH106 was collared on Section 8800N, 200 m east of FSDH047, and drilled toward the east at an angle of minus 71 degrees to investigate the eastern part of the Aurora zone. After a thin leached zone, the hole averaged 0.24 per cent CuEq over 164 m from 26 m, with grades diminishing below this to an average of 0.1 per cent CuEq for the rest of the hole. The hole intersected rhyolite country rock with strong quartz veining and primarily phyllic alteration throughout its length.

This hole was targeted to test the eastern extent of the Aurora zone and establishes a minimum width of 1.2 km for this area of the deposit, with FSDH100 the westernmost hole on this section. The deposit is still open to the west, beyond FSDH100. Additional drilling is required to the east of FSDH106 to fully test the magnetotelluric conductivity geophysical anomaly, which defines a possible eastern structural trend parallel to the main Filo trend. This eastern trend would be consistent with a southern extension to the intersections in hole FSDH085 and FSDH104 described above and remains a compelling exploration target.

FSDH108 was collared on Section 11400N and drilled toward the east at minus 72 degrees. The hole started in rhyolite, intersecting the granite contact at 224 m, much shallower than holes to the south. Mineralization also started shallower, with the top of the main mineralized zone intersected at 216.8 m. The granite continues to the end of the hole at 1,183.5 m with a few small magmatic-hydrothermal breccia intervals, from six to 23 m wide, encountered toward the end.

This is one of the most significant holes drilled this year as it extends the Bonita zone and the entire Filo mineralized trend by 400 m to the north. Measured from the southernmost mineralized intersection in the Tamberias zone, the Filo trend is established at a minimum of 5.5 km of continuous mineralization. Drill hole FSDH114, collared on the same platform as FSDH108, was recently completed with assays pending. This hole was drilled toward the west to test the western extension of this important discovery.

FSDH111 was also collared on Section 11400N, 760 m east of FSDH108, and drilled toward the northwest at minus 70 degrees. This exploration hole was targeted to test some quartz-pyrite-enargite veins exposed at surface and was not intended to test the continuation of Filo's northeasterly trending axis of mineralization, which is interpreted to lie significantly west of this hole.

The hole intersected rhyolite down to the granite contact at about 400 m, continuing in granite to the end of the hole at 852.7 m. Other than sporadic copper-rich sulphide veins less than two m in length, mineralization was generally low, although increasing toward the bottom of the hole, with the last 472 m averaging 0.1 per cent CuEq (0.06 per cent Cu, 0.03 g/t Au and 1.6 g/t Ag).

Outlook

Drilling is continuing with nine rigs active on the project. Drill holes FSDH109 (1,227.4 m) and FSDH114 (1,572.7 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, FSDH107, FSDH110, FSDH112, FSDH113 and FSDH115 through FSDH118 are under way. The company's goal remains on track to make 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 QA/QC 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 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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