Mr. Rob McEwen reports

MCEWEN MINING: 2023 YEAR END AND Q4 RESULTS

McEwen Mining Inc. has released its fourth quarter and full-year 2023 financial and operational results. (Dollar amounts are in U.S. dollars unless otherwise stated.) Net income for the year was $54.7-million or $1.15 per share versus a 2022 net loss of $81.1-million or $1.71 per share. Gold production at the Fox complex and Gold Bar mine came in just above the low end of guidance and at San Jose came in just below guidance. However, cash costs and all-in sustaining cost per ounce remain 12 to 18 per cent higher than guided and need more attention.

Growth plans for 2024

"Our biggest single asset with the greatest near-term potential to increase our share value is our 48-per-cent-owned subsidiary McEwen Copper [Inc.]. Its second- and third-largest shareholders are global giants Rio Tinto and Stellantis, the world's second-largest mining company and the world's fourth-largest automaker, owning 14.5 per cent and 19.4 per cent of McEwen Copper, respectively. McEwen Copper is driving hard, with 22 drills operating on site, to complete the necessary work to deliver a bankable feasibility study in [first quarter] 2025.

"Compared to conventional copper mines, Los Azules is designed with a much lighter impact on the environment, initially emitting one-third of the [carbon dioxide equivalent] emissions and progressing to net-zero carbon by 2038, utilizing one-quarter the water, powered by 100 per cent renewable electricity and producing sustainable copper cathode.

"At our Canadian and Mexican mines, we are advancing two important development projects. At the Fox complex, the construction of the underground ramp access to the Stock orebodies will start in Q1. The Stock West deposit will become the primary source of production following the completion of mining at the Froome deposit in 2026. At the Fenix project, construction is expected to start in [second half].

"Both of these projects are designed to extend the mine lives by over nine years," said Rob McEwen, chairman and chief owner.

Individual mine performance and growth

Fox complex, Timmins, Canada

Fox performed well in 2023, achieving its annual production guidance. Mill throughput achieved a record average of 1,300 tonnes per day in Q4, the highest since its acquisition in 2017. As a result, mill throughput in Q4 was 36 per cent higher than in Q4 2022. This is an important achievement by its team in Canada as it aims to continue to increase mining productivity and mill throughput capacity during 2024 in preparation for production from its Stock West project. While it works to develop its ramp access to Stock West in 2024, with completion expected by the end of 2025, it also intends to conduct exploration activities at Stock East and Stock Main. It sees operational improvements and cost savings at Stock as compared with Froome due to the close proximity of the Stock mill (expected savings of $7 per tonne), softer material enabling higher mill throughput, and deposits which are not encumbered by a meaningful royalty or a stream (Froome's 2023 stream cost estimated at $108 per ounce produced). Exploration activities are also under way with its Grey Fox project, where it sees significant long-term growth potential. In 2023, cash costs of $1,157 per gold equivalent ounce sold were higher than its annual guidance of $1,020 per GEO sold due to moving to contractor crushing in early 2023; however, AISC of $1,351 per GEO sold came in below guidance of $1,465 per GEO sold, as a result of reduced sustaining capital expenditure requirements enabled by the productivity improvements achieved by contractor crushing.

Gold Bar, Nevada, United States

Despite weather conditions in early 2023 that led to flooding and a slowdown of production at Gold Bar, the team ramped up gold production significantly through Q4, as planned, and achieved its annual production guidance. Cash costs of $1,565 per GEO sold and AISC of $1,891 per GEO sold were 12 per cent and 13 per cent higher than annual guidance of $1,400 and $1,680 per GEO sold, respectively, but improved compared with 2022 as a result of mine contractor and crushing crew productivity, as well as the expansion of its heap leach pad, which was completed on time and on budget. Its Q4 unit costs were significantly below annual guidance at cash costs of $1,253 and AISC of $1,467, and it expects similar trends during first half 2024.

San Jose, Santa Cruz, Argentina

San Jose had a difficult start to 2023 as seen in its first quarter results. The team at San Jose was quick to respond by implementing operational changes that resulted in consistent quarterly improvements to production and unit costs. This was achieved through mining and processing more tonnes containing higher average gold and silver grades compared with Q1. As a result, San Jose achieved annual production of 65,800 GEOs in 2023, slightly under the production guidance range of 66,000 to 74,000 GEOs. Annual cash costs of $1,413 per GEO sold and AISC of $1,840 per GEO sold remained 12 per cent and 18 per cent higher than guidance of $1,250 and $1,550 per GEO sold, respectively, as a result of lower-than-expected metal grades. By Q4, cash costs of $1,228 per GEO sold and AISC of $1,573 per GEO sold were achieved, which were in line with annual guidance. With the investment in improving the mine plan in mid-2023 and recent exploration results indicating better-than-expected grades on portions of 2024 production targets, it expects operations to continue to improve. Early 2024 production and financial results have exceeded expectations to date.

Advances in Q4 2023:

• McEwen Copper: Financings with Stellantis and Nuton (Rio Tinto) were closed in Q4, raising 42 billion Argentine pesos and $10.0-million, respectively, at a value of $26 per share, implying a market value of $800-million for McEwen Copper. Concurrently with these transactions, McEwen Mining sold 232,000 common shares of McEwen Copper in return for $6.0-million. After the closing of these transactions, Stellantis and Nuton own 19.4 per cent and 14.5 per cent, respectively, of McEwen Copper, while the company's ownership decreased to 47.7 per cent.
• Safety at all of its operations was excellent with no lost-time incidents.
• Gold Bar: During Q4, it achieved new daily, monthly and quarterly production records as a result of the improvements in mining productivity, the addition of crushing crews and the completion of the heap leach pad expansion.
• Fox complex: It achieved the highest average daily mill throughput on record since acquisition in 2017, reaching 1,300 tonnes per day during Q4, and is currently reviewing improvements in 2024 to mining productivity and processing flow sheets to continue to increase throughput levels.
• In December, the company completed a private placement offering of 1,903,000 flow-through common shares for gross proceeds of $16.1-million ($22.0-million (Canadian)) to be used exclusively to support exploration and development work at the Fox complex, which includes the development of the Stock ramp.
• It continues to invest heavily in exploration, and the results have been most encouraging, particularly at Los Azules, where the resource base increased by 27 per cent, and at the Fox complex, where the results allow it to see the potential for significant increase in mine life at Stock and Grey Fox.

Financial results

McEwen Mining ceased being the majority owner of McEwen Copper after the October, 2023, financing (moving from 51.9-per-cent to 47.7-per-cent ownership); therefore, for the fourth quarter and moving forward, the company's financial statements no longer consolidate McEwen Copper on a 100-per-cent basis, and instead account for McEwen Copper as an equity investment. As a result of the deconsolidation of McEwen Copper, it recognized a gain of $224-million and an investment value of $384-million based on the value per share achieved in its October financing.

Notice to reader: Under U.S. generally accepted accounting principles, McEwen Mining consolidates 100 per cent of the accounts of its fully owned and majority-owned subsidiaries in its reported financial results. Entities over which it exerts significant influence but does not control (such as Minera Santa Cruz SA, the operator of the San Jose mine, and McEwen Copper, the owner of the Los Azules copper project) are presented as equity investments on its balance sheet.

Net income for full-year 2023 was $54.7-million, or $1.15 per share, compared with net loss of $81.1-million, or $1.71 per share, for full-year 2022. Its net income for full-year 2023 improved primarily as a result of the $224.0-million accounting gain recognized on the deconsolidation of McEwen Copper. Net income for Q4 was $137.9-million, or $2.88 per share, compared with a net loss of $37.4-million, or 79 cents per share, for Q4 2022.

Liquidity and capital resources

It reported consolidated cash and cash equivalents of $23.0-million and consolidated working capital of $22.7-million as at Dec. 31, 2023, compared with the respective numbers at Dec. 31, 2022, of $39.8-million and negative $2.5-million. The reported consolidated cash balance at Dec. 31, 2023, does not include cash balances held by McEwen Copper given the deconsolidation recognized in Q4 2023 while its cash and cash equivalents balance of $39.8-million included $38.1-million attributable to McEwen Copper.

During 2023, it decreased its total debt by $25-million or 38 per cent to $40-million and entered into the third amended and restated credit agreement, effective May 23, 2023.

The company also holds a portfolio of royalties, including a 1.25-per-cent net smelter royalty at both its Los Azules and Elder Creek properties, together with other royalties on properties in Nevada, in Yukon, Canada, and in Santa Cruz, Argentina.

Exploration

Exploration results from the Stock deposits at the Fox complex were published in a separate press release on Feb. 28. Highlights include a 31-per-cent increase in gold resources compared with 2022. Drilling in the Stock East deposit area returned high-grade intersections up to 121.5 grams per tonne (3.91 ounces per ton) in an orientation that suggests that earlier drilling may have missed other possible high-grade occurrences.

Gold Bar exploration activities are currently focused on discovering near-mine resources. Additional drilling targets have been identified at its Pick and Cabin pits to expand upon results from its 2023 drilling.

McEwen Copper

New metallurgical and exploration results from Los Azules were published in news releases dated Feb. 22 and Feb. 26. Metallurgical highlights include a 76-per-cent expected average copper recovery (3.2 per cent higher compared with the 2023 National Instrument 43-101 preliminary economic assessment) during the 27-year life of mine and 8.3-per-cent-lower acid consumption, resulting in a potential increase in the project after-tax net present value (8 per cent) of $262-million. Exploration highlights included 446 metres of 0.76 per cent, including 76 m of 0.92 per cent (hole AZ23228MET). Its 2023-2024 drilling season began in October, 2023. During Q4, it completed over 74,000 feet (22,627 metres) of drilling out of a full season target of 203,000 feet (62,000 metres). A full complement of 22 drill rigs is operating on site to reach this target.

Confirmatory metallurgical testing and a large drilling campaign to upgrade resources, as well as geotechnical, hydrological and geohydrological works, are well under way to support the delivery of the feasibility study by early 2025.

It owns a 47.7-per-cent interest in McEwen Copper, which holds a 100-per-cent interest in Los Azules copper project in San Juan, Argentina, and the Elder Creek exploration project in Nevada, United States. The last financings completed by McEwen Copper with Stellantis and Nuton (Rio Tinto) gave the company a market value of $800-million. This translates to $384-million for McEwen Mining shareholders' 47.7-per-cent ownership.

Management conference call

Management will discuss its Q4 financial results and project developments, and follow with a question-and-answer session. Questions can be asked directly by participants over the phone during the webcast.

Conference call:  Friday, March 1, 2024, at 10 a.m. EST

Toll-free (U.S. and Canada):  888-210-3454

Toll-free dial-in numbers are available for other countries.

Toll dial-in:  646-960-0130

Conference ID No.:  3232920

Register for the event.

An archived replay of the webcast will be available approximately two hours following the conclusion of the live event.

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

The company accounts for its investment in Minera Santa Cruz, the owner of the San Jose mine, using the equity method. The company relies on the management of MSC to provide accurate financial information prepared in accordance with generally accepted accounting principles. While the company is not aware of any errors or possible misstatements of the financial information provided by MSC, MSC is responsible for and has supplied to the company all reported results from the San Jose mine, and such results are unaudited as of the date of this release. McEwen Mining's joint venture partner, a subsidiary of Hochschild Mining PLC, and its affiliates other than MSC do not accept responsibility for the use of project data or the adequacy or accuracy of this 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. Rob McEwen, chairman and chief owner, has a personal investment in the group of $220-million (U.S.) and takes an annual salary of $1 (U.S.).

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