Mr. Jason Kosec reports

HEMLO MINING CORP. REPORTS UNDERGROUND ELECTRICAL SUBSTATION OUTAGE; MINE-WIDE OPERATIONS CONTINUE

An underground electrical substation servicing a portion of underground mining operations at Hemlo Mining Corp.'s Hemlo gold mine experienced a temporary electrical outage on Sept. 4, 2026. The affected substation supplies power to a portion of the Alimak production area on the 9765 level of the mine, where the company was advancing continuing production and ramp-up activities. There were no injuries associated with the outage and all personnel underground at the time were safely brought to surface. Mining and processing in all other areas of the mine, including the processing plant, are unaffected and continue to operate normally.

In the days following the outage, the company completed a comprehensive assessment of the affected infrastructure and potential operational impact. Technical and operating teams are actively advancing repair and expedited replacement plans for the substation. A temporary electrical bypass system has been established, which has restored power to the affected area at reduced capacity. The bypass system allows certain mining activities to continue while development and exploration activities remain limited until full power is restored. As part of the company's critical spare parts audit, a replacement substation had previously been ordered, with delivery expected in December, 2026, at an estimated cost of approximately $250,000 (U.S.). In the interim, the company is pursuing several additional measures, including expedited equipment procurement, backup power options and the potential relocation of electrical infrastructure from other areas of the mine, with the objective of accelerating the restoration of full power to the affected area.

The outage and resulting reduction in available power may result in the deferral of mining from certain planned stopes until full power is restored. The affected area remains accessible and production continues across the remainder of the mine without interruption. To mitigate potential production impacts, the company is evaluating alternative mine sequencing and accelerating development and mining activities in other areas of the operation.

Jason Kosec, president, chief executive officer and director of Hemlo Mining, commented: "Over the past week, our site teams have responded quickly and professionally to assess the impact of the outage, which is limited to a single area of the mine. Our first priority was the safety of our workforce, and I am pleased to report that there were no injuries associated with the outage and that all safety protocols were followed. The work of our team has allowed us to establish a temporary electrical configuration that supports certain activities in the affected Alimak area while we continue to advance several solutions aimed at restoring full production capability. We are also evaluating opportunities to resequence work into other areas of the mine to maintain planned production, development and exploration activities. With more than 300 kilometres of existing mine development and multiple active mining areas, the Hemlo mine has significant operational flexibility, allowing processing operations to continue without interruption while mitigation efforts advance."

About Hemlo Mining Corp.

Hemlo Mining is a Canadian gold producer focused on operating and enhancing the Hemlo gold camp in Northwestern Ontario. The company's flagship asset, the Hemlo gold mine, has produced approximately 25 million ounces of gold since 1985 from both underground and open-pit operations. The company's fit-for-purpose strategy is centred on maximizing the value of the mine through improved operating efficiency, production growth and mine life extension. Hemlo Mining is led by an experienced team with a record of value creation in the global mining sector.

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