Mr. Akiba Leisman reports

MAKO MINING PROVIDES Q2 2023 FINANCIAL RESULTS

Mako Mining Corp. has provided financial results for the three months ended June 30, 2023 (Q2 2023), which is the eighth full quarter of financial results since declaring commercial production on July 1, 2021, at its San Albino gold mine in northern Nicaragua. All dollar amounts referred to herein are expressed in United States dollars unless otherwise stated.

Q2 2023 highlights

Financial:

• $12.9-million in revenue;
• $4-million in adjusted EBITDA (earnings before interest, taxes, depreciation and amortization);
• $4.9-million in mine operating cash flow (OCF);
• $2.6-million net loss after $3.9-million of depreciation, depletion and amortization, and $1.5-million in exploration expenses;
• $995 cash costs ($995/ounce (oz) sold);
• $1,090 total cash costs ($1,090/oz sold);
• $1,322 all-in sustaining costs (AISC) ($1,322/oz sold);
• Three monthly repayment installments totalling $1.1-million were made on the Sailfish loan during Q2 2023 and $4-million of the Wexford loan principal was repaid as a result of the $6-million Silver loan.

Growth:

• $1.4-million in exploration and evaluation expenses ($500,000 in areas surrounding San Albino and approximately $1-million at Las Conchitas).
• Permits to begin extracting and processing material from Las Conchitas were received in June, with processing beginning in late July.

Subsequent to June 30, 2023:

• On July 7, 2023, and on Aug. 3, 2023, the company delivered 17,190 oz and 16,367 oz of silver to Sailfish in lieu of $400,000 and $400,000 cash, respectively.
• On Aug. 23, 2023, the Wexford loan was expanded by an additional $2-million to ensure the company has a sufficient amount of working capital during the ramp-up of Las Conchitas (see full details below, under loan agreement).

Akiba Leisman, chief executive officer, states that: "Q2 2023 was the eighth full quarter of financial results since declaring commercial production at San Albino. Mine operating cash flow and adjusted EBITDA of $4.9-million and $4-million, respectively, reflect that the company was processing approximately 35 per cent run of mine material (with the rest coming from lower-grade stockpiles), instead of the normal 50 per cent run of mine material prior to permits being received at Las Conchitas. Permits at Las Conchitas were subsequently received in June, with material from Las Conchitas beginning to be processed at the end of July. In this context, the company reported cash costs of $995/oz sold, total cash costs of $1,090/oz sold and AISC at $1,322/oz during the quarter. Q2 2023 is the last quarter the company will be reporting a depletion and depreciation expense ($3.9-million) solely on the basis of the San Albino mine plan. The net book value of our mineral property and plant are now just $3.2-million and $14.1-million, respectively, compared to a cost of $14.8-million and $38.7-million as of year-end 2022. The remaining net book value is a tiny fraction of its net realizable value, including the Las Conchitas resource, which will lead to materially lower depletion and depreciation expenses going forward. The maiden resource estimate at Las Conchitas will be released shortly."

Loan agreement

The company also announces that it has entered into a further amendment to the loan agreement dated Feb. 20, 2020 (as amended, the existing loan agreement), between the company, Wexford Capital LP and the lenders, pursuant to which, among other things, Wexford Catalyst Trading Ltd., Wexford Spectrum Trading Ltd. and Wexford Focused Trading Ltd. (together with Debello Trading Ltd., collectively, the lenders) have agreed to make an additional loan to the company in the principal amount of $2-million (U.S.) (the incremental loan), subject to the terms of the existing loan agreement.

The company proposes to use the proceeds from the incremental loan for, among other things, its continuing activities in Nicaragua and for general corporate purposes.

Funds managed by Wexford beneficially own an aggregate of 36,462,623 common shares of the company, representing approximately 55.4 per cent of the company's issued and outstanding common shares. Accordingly, the incremental loan constitutes a related-party transaction under Multilateral Instrument 61-101, as a result of the company entering into the loan amending agreement with the lenders and Wexford Capital LP, who are related parties of the company. Pursuant to sections 5.5(b) and 5.7(1)(f) of MI 61-101, the company is exempt from obtaining a formal valuation and minority approval of the company's shareholders for the incremental loan on the basis that the company's common shares trade on the TSX-V and the incremental loan is a loan transaction with a related party that meets the criteria as set out in MI 61-101.

For complete details, please refer to the financial statements, and the associated management's discussion and analysis, for the 12 months ended June 30, 2023, available on SEDAR or on the company's website.

About Mako Mining Corp.

Mako Mining is a publicly listed gold mining, development and exploration company. The company operates the high-grade San Albino gold mine in Nueva Segovia, Nicaragua, which ranks as one of the highest-grade open-pit gold mines globally. Mako's primary objective is to operate San Albino profitably and finance exploration of prospective targets on its district-scale land package.

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