Mr. Jason Kosec reports

HEMLO MINING CORP. REPORTS THIRD QUARTER 2026 OPERATING RESULTS

Hemlo Mining Corp. has released operating results for the third quarter ended Sept. 30, 2026. The company plans to release its Q3 2026 financial results after market close on Monday, Nov. 9, 2026, followed by a conference call and webcast hosted by senior management on Tuesday, Nov. 10, 2026, at 11 a.m. Eastern Time.

(All amounts are expressed in U.S. dollars unless otherwise stated and are unaudited.)

Jason Kosec, president, chief executive officer and director of Hemlo Mining, commented: "Q3 demonstrated the resilience of the operation and the dedication of our work force. Despite operational challenges during the quarter, we delivered stable gold production with an improved grade profile compared to Q2 while continuing to advance key operational initiatives. We also saw positive trends across several important operating metrics, including a 35-per-cent increase in production drilling and a 13-per-cent increase in paste filling compared to Q2, supporting consistent production and development rates throughout the quarter. In addition, we expanded our work force, continued building out the underground fleet and advanced bulk-mining test work, helping to strengthen the foundation for future production growth and greater operating flexibility. With 17 of 21 planned equipment units now delivered and several growth initiatives advancing as planned, we believe the mine is increasingly well positioned to deliver improved operating performance and continue building momentum into 2027."

The Hemlo gold mine continued its strong safety and environmental performance in Q3, recording no reportable environmental incidents and no lost-time injuries.

Gold production for Q3 totalled 29,617 ounces from 342,000 tonnes processed at an average grade of 3.00 grams per tonne gold. Attributable gold production for Q3 totalled 25,652 ounces and attributable gold sold totalled 29,830 ounces. Mine production averaged 3,718 tonnes per day during the quarter. Average gold recovery in the process plant for Q3 was 95.0 per cent. Production benefited from access to higher-grade stopes within the Interlake zone, resulting in a higher average processed grade and increased gold production compared with the second quarter of 2026.

As previously disclosed, production ramp-up efforts during Q3 were impacted by the outage of an underground electrical substation servicing a portion of the Alimak production area. The outage reduced available power in the affected area, constraining mining rates and delaying the company's planned production ramp-up. To mitigate the impact, the mine plan was temporarily resequenced and production activities were shifted to other areas of the mine. The company also reorganized electrical power distribution, which reduced the operational impact of the outage, although mining, development and exploration activities continued at lower rates than originally planned. Subsequent to quarter-end, the company relocated and commissioned a similar substation from another area of the mine. A replacement substation remains on track for delivery in December, 2026. Despite the impact of the substation outage, the company continued to make progress on several key operating metrics during the quarter. Production drilling increased by 35 per cent compared with Q2 while paste filling increased by 13 per cent, supporting stable production and development rates across the mine. The improvements reflect continuing investments in personnel, equipment and operational optimization initiatives designed to support future production growth and increased operating flexibility.

As part of the company's strategy to support future production growth, several operational and growth initiatives continued to advance during Q3. Among these initiatives, the company initiated test mining beneath the historical open pit using a local contractor to evaluate the potential application of bulk-mining methods and support studies focused on increasing production and maximizing value at the mine. Building on this work, production drilling on the first test stope is expected to commence imminently as part of the company's assessment of bulk-mining opportunities.

While competition for skilled labour remains an industry-wide headwind, Hemlo continues to make progress building its work force through targeted recruiting, training and employee development initiatives. During Q3, Hemlo expanded recruiting and training efforts and now employs 555 full-time workers alongside 373 contractors, approximately 75 per cent of whom are from surrounding communities.

As part of the company's continuing investment in the mine, seven new pieces of mobile mine equipment valued at approximately $8.5-million were delivered during Q3. This included two MacLean bolters, one MacLean scissor lift, one MacLean boom truck, one Sandvik 45-tonne truck, one Sandvik two-boom drill jumbo and one Sandvik 11-cubic-yard scooptram. Since acquiring the mine in November, 2025, 17 of 21 planned new units have arrived on site. These additions are expected to support higher development rates, increase operational flexibility, improve equipment availability and provide additional capacity as the mine continues progressing toward higher production levels.

The financial information presented above is preliminary in nature and subject to completion of the company's quarter-end financial reporting process. Final unaudited financial results may differ from these amounts and will be reported in the company's unaudited interim condensed consolidated financial statements for the three and nine months ended Sept. 30, 2026. Complete financial results for the third quarter of 2026 will be reported and filed on Hemlo Mining's profile on SEDAR+ on Monday, Nov. 9, 2026.

Conference call and webcast

Hemlo Mining will host a conference call and webcast on Tuesday, Nov. 10, 2026, at 11 a.m. Eastern Time to discuss third quarter 2026 results. Details for the conference call and webcast are included below.

Dial-in numbers/webcast

Conference/meeting ID:  287749816

North America toll-free:  1-833-461-5787

International toll:  1-585-542-9983

Canada local:  1-365-657-4084

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.

Qualified person

The scientific and technical information contained in this news release has been reviewed and approved by Mike Tsafaras, PEng, the company's vice-president, engineering and projects. Mr. Tsafaras is a qualified person as defined in National Instrument 43-101, Standards of Disclosure for Mineral Projects.

We seek Safe Harbor.