Mr. Rob McEwen reports

MCEWEN MINING: Q3 2023 RESULTS

McEwen Mining Inc. has released its results for the third quarter (Q3) and nine months ended Sept. 30, 2023.

Operational and financial highlights:

• Consolidated GEO (gold equivalent ounce) production in Q3 improved by 8 per cent compared with both Q2 2023 and Q3 2022. McEwen Mining produced 38,500 GEOs in Q3 and 104,400 GEOs for the nine months ended Sept. 30. The company reiterates its consolidated production guidance is at the lower end of the company's range of 150,000 to 170,000 GEOs for the year (see attached table).
• McEwen Mining continues to meet safety standards at its 100-per-cent-owned operations. During Q3, the company had no lost-time incidents at its Fox complex, Gold Bar mine and El Gallo operations.
• In Q3, the Fox mine complex performed well, producing 11,200 ounces (oz) gold, and it remains on track to meet guidance of 42,000 to 48,000 oz gold for the year. Cash costs and AISC (all-in sustaining costs) per GEO sold for the Fox complex were $1,078 and $1,288, respectively. McEwen Mining expects annual cash costs per GEO sold to be 10 per cent above of its 2023 guidance.
• In Q3, the Gold Bar mine produced 9,500 oz of gold, an increase of 20 per cent compared with Q2 2023. Production continues to increase quarterly, though delays from extreme weather and labour constraints during 2023 have impacted the company's annual outlook. McEwen Mining now expects production from Gold Bar to be between 36,500 and 40,000 oz gold. Cash costs and AISC per GEO sold for the Gold Bar mine were $1,529 and $2,160, respectively. AISC was affected by a $4.5-million sustaining capital investment in a heap leach pad expansion, which was substantially completed during the quarter. Additional mining crews and the completion of McEwen Mining's heap leach expansion are expected to result in increased production in Q4 2023, allowing Gold Bar to quickly realize recoveries on material stockpiled during the last quarter. While this should reduce costs per ounce in the fourth quarter, McEwen Mining still expects the average costs for the year to be 10 per cent to 15 per cent higher than its 2023 guidance.
• In Q3, the San Jose mine produced 17,800 GEOs, an increase of 3 per cent compared with Q2 2023 due to a modest improvement in processed tonnes. McEwen Mining's joint venture partner and mine operator, Hochschild Mining, reiterates production guidance of 66,000 to 74,000 GEOs for the year. Cash costs and AISC per GEO sold for San Jose were $1,445 and $1,953, respectively. McEwen Mining expects costs to remain approximately 15 per cent above 2023 guidance due to additional capital development costs associated with the operator's revised mine plan.
• McEwen Mining continues to advance its exploration program at Los Azules aiming to deliver all information required for the feasibility study. During Q3, the company completed planning and preparation work for the 2023-2024 drilling campaign, which has a target of 157,000 feet (48,000 metres) and includes additional exploration, infill, geotech, hydrological and hydrogeological drilling. Fourteen out of a total of 18 to 20 planned drill rigs are currently operating and McEwen Mining has drilled 19,600 feet (6,000 metres) to date. The company invested $18.5-million in its Los Azules copper project during Q3 primarily to build a winter camp, to further improve its road access and to construct a logistics facility in San Juan.
• Subsequent to the quarter-end, McEwen Copper closed financings with Stellantis and Nuton, a Rio Tinto venture, raising 42 billion Argentinian pesos and $10.0-million, respectively, at a price of $26 per share, implying a market value of $800.0-million for McEwen Copper. As part of these private placements, McEwen Mining received $6.0-million from the sale of 232,000 McEwen Copper common shares. McEwen Copper's share ownership structure is now: McEwen Mining, 47.7 per cent; Stellantis, 19.4 per cent; Nuton, 14.5 per cent; Rob McEwen, 12.9 per cent; and 5.5 per cent, other shareholders. The implied market value represents a value accretion of $207-million for McEwen Mining (from $175-million to $382-million of implied ownership value), representing a value of $7.48 per fully diluted McEwen Mining share.
• Consolidated cash and cash equivalents were $49.1-million (of which $47.5-million is to be used toward advancing the Los Azules copper project) and consolidated working capital was $72.3-million as of Sept. 30, 2023. McEwen Mining also reported investments of $40.8-million, consisting of liquid securities held in Argentina to mitigate inflation and devaluation risks.
• In Q3, McEwen Mining reported a gross profit of $3.8-million and cash gross profit of $11.9-million from its 100-per-cent-owned precious metal operations, compared with a gross profit of $1.5-million and cash gross profit of $5.8-million in Q3 2022. Higher revenues driven by a 34-per-cent increase in GEOs sold and a 10-per-cent increase in realized gold prices led to improvements in gross profit and cash gross profit. Including McEwen Mining's 49-per-cent ownership of the San Jose mine, the company reported a total cash gross profit of $22.3-million, compared with a total cash gross profit of $13.8-million in Q3 2022.
• In Q3, McEwen Mining reported a net loss of $18.5-million, or 39 cents per share, compared with a net loss of $10.5-million, or 21 cents per share in Q3 2022. Compared with McEwen Mining's gross profit, the company's net loss was the result of higher year-over-year exploration and advanced project expenditures, including an $18.5-million investment in exploration activities at its Los Azules copper project.
• In Q3, McEwen Mining reported an adjusted net loss of $4.2-million, compared with an adjusted net income of $6.4-million in Q3 2022. Adjusted net loss excludes the expenses of McEwen Copper and McEwen Mining's interest in the San Jose mine, a metric that the company believes best represents the results of its 100-per-cent-owned precious metal operations. Compared with McEwen Mining's cash gross profit of $11.9-million, the adjusted net loss includes $6.6-million in exploration and advanced project expenditures at the company's Fox complex, Gold Bar mine and Fenix project operations, $8.5-million in non-cash depreciation, and $3.7-million in general and administrative expenses.
• Revenues of $38.4-million were reported from the sale of 20,620 GEOs from McEwen Mining's 100-per-cent-owned operations at an average realized price of $1,920 per GEO. Including the company's 49-per-cent ownership of San Jose mine, Q3 revenue would have increased by $31.6-million. This compares with Q3 2022 revenues of $26.0-million from the sale of 15,400 GEOs from the company's 100-per-cent-owned operations at a realized price of $1,742 per GEO. Including McEwen Mining's 49-per-cent ownership of San Jose mine, Q3 2022 revenue would have increased by $32.0-million.
• It is important to note that because of the recent McEwen Copper financing, McEwen Mining's ownership in McEwen Copper is below 50 per cent and McEwen Mining expects to no longer consolidate the financials of McEwen Copper. From Q4 2023 onward, McEwen Mining expects to begin to account for McEwen Copper as an equity investment. The company expects to conclude soon on the accounting impacts of its recent financing. The resulting impact on its financials on a go-forward basis, should McEwen Copper be deconsolidated, will be noticeable. Specifically, the carrying value of McEwen Mining's investment in McEwen Copper ownership may increase significantly in line with the recent financings, and McEwen Mining expects that its cash and liquid assets and expenses will decline markedly.

Webcast

A webcast will be held on Thursday, Nov. 9, 2023, at 11 a.m. EST, where management will discuss McEwen Mining's financial results and project developments and follow with a question-and-answer session. Questions for the call can be e-mailed in advance to info@mcewenmining.com or can be asked directly by participants over the phone during the webcast.

Q3 results conference call -- Thursday, Nov. 9, 2023, at 11 a.m. EST

Calling in

Participant toll-free dial-in number:  888-210-3454

Participant toll dial-in number:  646-960-0130

Conference ID No.:  3232920

Webcast registration is available on-line.

An archived replay of the webcast will be available approximately two hours following the conclusion of the live event. Access the replay on the company's media page.

The attached table provides production and cost results for Q3 and the nine-month period in 2023 with comparative results for Q3 and the nine-month period in 2022, and McEwen Mining's forecast and guidance for 2023. McEwen Mining's forecast for 2023 reflects production to Sept. 30 and management's current estimates for Q4 2023.

Technical information

The technical content of this news release related to financial results, mining and development projects has been reviewed and approved by William (Bill) Shaver, PEng, chief operating officer of McEwen Mining and a qualified person as defined by SEC S-K 1300 and the Canadian Securities Administrators National Instrument 43-101, Standards of Disclosure for Mineral Projects.

Reliability of information regarding San Jose

Minera Santa Cruz S.A. (MSC), the owner of the San Jose mine, is responsible for, and has supplied to the company, all reported results from the San Jose mine. McEwen Mining's joint venture partner, a subsidiary of Hochschild Mining, and its affiliates other than MSC do not accept responsibility for the use of project data or the adequacy or accuracy of this news release.

About McEwen Mining Inc.

McEwen Mining is a gold and silver producer with operations in Nevada, Canada, Mexico and Argentina. In addition, it owns approximately 47.7 per cent of McEwen Copper, which owns the large, advanced-stage Los Azules copper project in Argentina. The company's goal is to improve the productivity and life of its assets with the objective of increasing its share price and providing a yield. Mr. McEwen, who is the chairman and chief owner, has personally provided the company with $220-million and takes an annual salary of $1.

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