Mr. Jason Kosec reports

HEMLO MINING CORP. BUYS BACK ROYALTY INTEREST OVER PAST-PRODUCING DAVID BELL PROPERTY

Hemlo Mining Corp. has purchased a 1.5-per-cent net smelter return royalty at its Hemlo gold mine complex, located near Marathon, Ont., Canada.

Highlights

• The acquisition and termination of the royalty consolidates the company's interest over the Hemlo land package, improving economic leverage to potential exploration success and future production growth.
• The company views the consolidation of royalty interests within its land package as an accretive strategy to support exploration investment and long-term shareholder value.
• The purchased royalty covers 17 mineral claims associated with the past-producing David Bell mine, located approximately one kilometre east of the company's current operations.
• The company has identified multiple exploration targets at the David Bell property, which will be tested through the company's 2026 exploration drilling program.
• The David Bell mine produced approximately 4.2 million ounces of gold from 1985 to 2013, during a period when gold prices averaged approximately $600 (U.S.) per ounce.

Jason Kosec, president and chief executive officer of Hemlo Mining, stated:

"Our 2026 exploration program is designed to unlock new mineralization across the broader Hemlo land package, including in the vicinity of the past-producing David Bell mine. By targeting areas proximal to existing infrastructure, we aim to efficiently convert exploration success into extended mine life, enhanced production profiles and improved long-term economics.

"In parallel, we will continue to consolidate royalty interests within our land package where valuations are compelling. This disciplined and accretive approach directly supports exploration investment and strengthens long-term shareholder value.

"Importantly, our lead director, Dr. Robert Quartermain, brings firsthand knowledge of the district, having spent three years drilling and working underground at the David Bell mine from 1982 to 1984. His direct experience during Hemlo's formative discovery period provides valuable geological insight that meaningfully enhances the technical rigor and strategic focus of our 2026 program."

About the David Bell mine

The David Bell mine operated for nearly 30 years, from its opening in 1985 until the cessation of production in 2013 and was formally closed in 2014.

Located on the eastern part of the Hemlo land package, the David Bell deposit represents a classic Hemlo-style gold system, with gold mineralization hosted primarily within strongly altered volcano-sedimentary and fragmental rocks. Mineralization is characterized by intense potassium feldspar alteration, silicification and sulphidation, with gold closely associated with pyrite and accessory arsenopyrite and molybdenite. Gold was emplaced early in the deformation history and subsequently transposed and folded into high-strain corridors, resulting in complex but laterally continuous mineralized lenses. While host rocks and mineralization styles differ, both the B-Zone hangingwall and footwall mineralized zones extend through the David Bell property, with historical stopes demonstrating continuity of these mineralized corridors.

The company is actively compiling and reinterpreting historical data related to mineralization at the David Bell property and multiple high-priority targets are planned to be tested through exploration drilling in 2026.

Qualified person

The scientific and technical information contained in this news release, including geological interpretation and exploration target disclosure, has been reviewed and approved by Raphael Dutaut, PhD (PGeo), the company's vice-president, exploration. Mr. Dutaut is a qualified person as defined in National Instrument 43-101 -- Standards of Disclosure for Mineral Projects.

Scientific and technical information

Scientific and technical information in this news release regarding the geological description of the David Bell mineralization is derived from the company's technical report titled "NI 43-101 Technical Report Hemlo Mine, Ontario, Canada" with an effective date of Dec. 31, 2024, and a signature date of Oct. 27, 2025, and the company's news release dated Jan. 26, 2026, copies of which have been filed on the company's SEDAR+ profile.

Historical production information for the David Bell mine is derived from previously filed technical reports and public disclosure by former operators. Historical gold price information is based on publicly available market data and is provided for contextual purposes only.

About Hemlo Mining Corp.

Hemlo Mining (previously Carcetti Capital Corp.) recently closed the acquisition of the Hemlo gold mine from Barrick Mining Corp. for aggregate consideration of up to $1.1-billion (U.S.). The Hemlo gold mine is located 35 kilometres east of the town of Marathon, Ont., and has produced approximately 25 million ounces of gold from both underground and open pit operations since production began in 1985. The company is looking to establish itself as a leading Canadian mid-tier growth-focused gold producer, with an immediate focus on maximizing the value of the Hemlo gold mine's existing infrastructure through a fit-for-purpose operating approach, while unlocking new opportunities through an aggressive brownfields exploration.

We seek Safe Harbor.