Mr. Sylvain Guerard reports

ORLA MINING PROVIDES UPDATE ON SUCCESSFUL DRILLING PROGRAM IN MEXICO

Orla Mining Ltd. has provided an update on its exploration activities at Camino Rojo in the first half of 2023.

2023 exploration highlights -- Camino Rojo (Mexico)

Camino Rojo sulphides

Infill drilling to reduce drill spacing to 25 metres to 30 metres in the sulphides domain has continued to return high-grade gold intercepts (greater than two grams per tonne) over wide widths (greater than 30 m).

Camino Rojo deep extension

A new style of polymetallic (gold-silver-zinc) semi-massive-to-massive sulphide mineralization has been confirmed in drill holes testing below the Caracol-formation-hosted sulphides. These deeper intercepts indicate mineralization remains open at depth along and adjacent to interpreted feeder-like structures for the currently defined Camino Rojo deposit.

Regional exploration

Follow-up drilling at the Guanamero target area, located approximately seven kilometres northeast of the Camino Rojo mine along the mine structural trend, returned encouraging and narrow high-grade gold results, with occurrences of visible gold in two of the seven holes completed.

"The 2023 Camino Rojo sulphides infill and deep extension drill programs continue to generate excellent gold intersections, including massive sulphide replacement-style mineralization below the current resource. These results are exciting, as they enhance future development opportunity scenarios and provide resource growth potential at depth. We have also encountered high-grade gold assays with visible gold, highlighting the prospectivity on our underexplored regional land package. We are advancing a full exploration pipeline in 2023 in an effort to upgrade and expand reserves and resources, and make new discoveries," commented Sylvain Guerard, Orla's senior vice-president, exploration.

2023 exploration -- Camino Rojo (Mexico)

Orla's 2023 Camino Rojo exploration program consists of three projects with a total budget of $22-million. Approximately 40 per cent of the planned 34,000 metres of drilling on the sulphides has been completed and is intended to advance the understanding of the deposit. The layback oxide extension intends to confirm and delineate mineralization located in the oxide pit layback and allow for an update of mineral resource and reserve estimates planned in late 2023. The layback program, consisting of approximately 3,000 metres in 24 drill holes, was completed in late May, and assay results are pending. The regional exploration drill program is testing priority regional targets in an effort to make new satellite discoveries. Approximately 30 per cent of the planned 20,000 metres regional drilling program has been completed to date.

Near-mine exploration results -- Camino Rojo sulphides

Drill results at Camino Rojo sulphides continue to support potential for underground development.

Drilling continues to intercept wide zones (greater than 15 m down-hole drill intersections) of higher-grade gold mineralization (greater than two g/t Au) and, in conjunction with metallurgical results from the 2021 drilling (see news release dated May 9, 2022), supports the potential for underground development and a stand-alone processing option for the Camino Rojo sulphides. The 2023 program is building on Orla's previous drill programs, infilling the higher-grade portions of the deposit with 50-metre spacings of south-oriented drill holes. Drill spacing at the end of this phase of drilling, including historical north-oriented drill holes, will be 25 metres to 30 metres. Infill drilling of the sulphide deposit will be used to update the geological model and the resource estimate for the Camino Rojo sulphides. To date, approximately 14,000 metres of the approximately 34,000-metre drill program have been drilled. Assay results from 11 of the planned 57 holes completed in 2023 have returned 17 significant mineralized drill intercepts with a grade-by-thickness factor greater than 50 g/t gold by metre, including five intercepts with a grade-by-thickness factor greater than 100 g/t gold by metre.

The current open-pit mineral resource estimate for the sulphides at Camino Rojo is 74,000 ounces of measured resources (3,358,000 tonnes at 0.69 g/t gold) and 7,221,000 ounces of indicated resources (255,445,000 tonnes at 0.88 g/t gold), with an effective date of June 7, 2019. The resource estimate will be updated following completion of the 2023 drill program. The updated resource will then support studies for a potential underground development scenario.

Near-mine exploration results -- Camino Rojo sulphides deep extension

The new style of mineralization, including high-grade gold and zinc intersections, continues to support the potential for an extension of Camino Rojo sulphides.

Approximately 20 per cent of the 2023 sulphide drill program is planned to be extended, beyond the boundaries of the current open-pit resource estimate, to test the down-plunge continuity of gold mineralization along the steeply northwest-dipping dike structural zone. Results from the first of these extended drill holes, CRSX23-15C, have returned high-grade gold and polymetallic intercepts, such as:

• 15.4 g/t Au and 4.4 per cent Zn over 1.5 m;
• 3.52 g/t Au, 26.2 g/t silver and 3.6 per cent Zn over 8.5 m, including 6.57 g/t Au, 33.7 g/t Ag and 5.7 per cent Zn over 1.7 m as well as 6.86 g/t Au, 38.7 g/t Ag and 1.2 per cent Zn over 1.6 m;
• 4.54 g/t Au over 3.3 m, including 8.0 g/t Au and 12.5 per cent Zn over 1.2 m.

Individual assays and composite values for deep extension intercepts in hole CRSX23-15C are provided in an attached table. High-grade polymetallic intercepts below the currently defined Camino Rojo resource are associated with massive sulphide replacement-style mineralization of carbonate horizons interpreted to be in close proximity to interpreted feeder-like structures. Additional drilling in the deep extension target area through the remainder of 2023 will seek to continue defining the extent and grade of this style of mineralization down plunge of the Camino Rojo deposit.

In addition to extending drill holes as part of the sulphides drill program, the company plans to drill approximately 2,300 metres in four additional directional drill holes in the second half of the year. This additional drilling section will follow up on a historical intercept of 4.04 g/t Au over 46.5 m, including 27 m at 6.26 g/t Au (and including 7.5 m at 15.8 g/t Au, 36.5 g/t Ag and 5.7 per cent Zn) in hole CR12-366D, approximately 250 metres down plunge of the most-recent deep intercept in hole CRSX23-15C. Mineralization intersected in hole CRSX23-15C and in historical intercepts consists mostly of semi-massive-to-massive sulphide replacement-style mineralization within the Indidura and Cuesta del Cura formations. This new style of sulphide replacement mineralization below the current boundaries of the open-pit resource estimate may represent an opportunity to expand an underground sulphide resource at Camino Rojo.

The 2023 Camino Rojo sulphides drill program will continue into the second half of the year, providing crucial information to support evaluation of the potential for underground development and a stand-alone processing option for the Camino Rojo sulphides, as well as continuing to provide critical information to evaluate the potential extension of the Camino Rojo deposit at depth.

Near-mine exploration results -- layback program

The company began drilling in the oxide pit layback in late April to confirm and delineate mineralization on the Fresnillo PLC property, located immediately north of, and adjacent to, the Camino Rojo oxide mine open pit. While historical drilling indicates that mineralization continues across the property boundary onto the Fresnillo layback area, no ounces from this area are currently included in the Camino Rojo mineral resource and mineral reserve estimate. The layback program, consisting of approximately 3,000 metres in 24 drill holes, was completed in late May. Results of the layback program will be included in an update of mineral resource and mineral reserve estimates, planned for late 2023. Assay results are pending.

Regional exploration program results

Orla's first diamond drill core hole outside of the Camino Rojo deposit returned 0.54 g/t Au over 7.10 m and 1.35 g/t Au over 2.35 m (previously reported, see news release dated Jan. 31, 2023) at the Guanamero target. Follow-up drilling in 2023 has been positive, with two of the seven drill holes completed returning visible gold and associated significant results, such as 61.2 g/t Au over 1.3 m and 0.69 g/t Au over 10.5 m, including 4.02 g/t Au over 1.5 m.

Results from this most-recent drilling at Guanamero suggest gold mineralization extends and plunges moderately to the southwest, similar to the plunge of mineralization at the Camino Rojo deposit. Additional follow-up drilling to test the southwest plunge of mineralization at Guanamero is planned for 2023, along with drilling at other regional targets.

Qualified person statement

The scientific and technical information in this news release has been reviewed and approved by Sylvain Guerard, PGeo, senior vice-president of exploration, who is the qualified person as defined under National Instrument 43-101.

To verify the information related to the 2022 and 2023 drilling programs at the Camino Rojo property, Mr. Guerard has visited the property in the past year; discussed logging, sampling and sample shipping processes with responsible site staff; discussed and reviewed assay and quality assurance/quality control results with responsible personnel; and reviewed supporting documentation, including drill hole location and orientation as well as significant assay interval calculations.

Quality assurance/quality control -- 2022 and 2023 drill programs

All gold results at Camino Rojo were obtained by ALS Minerals (Au-AA23), using fire assay fusion and an atomic absorption spectroscopy finish. All samples are also analyzed for multielements, including silver, copper, lead and zinc, using a four-acid digestion with ICP-AES finish (ME-ICP61) at ALS Laboratories in Canada. If samples were returned with gold values in excess of 10 parts per million or base metal values in excess of 1 per cent by ICP analysis, samples were rerun with gold (Au-GRA21) by fire assay and gravimetric finish, or base metal by (OG62) four-acid overlimit methods. Drill program design, quality assurance/quality control and interpretation of results were performed by qualified persons employing a quality assurance/quality control program consistent with NI 43-101 and industry best practices. Standards were inserted at a frequency of one in every 50 samples, and blanks were inserted at a frequency of one in every 50 samples for quality assurance/quality control purposes by the company as well as the lab. ALS Laboratories is independent of Orla. There are no known drilling, sampling, recovery or other factors that could materially affect the accuracy or reliability of the drilling data at Camino Rojo.

About Orla Mining Ltd.

Orla is operating the Camino Rojo oxide gold mine, a gold and silver open-pit and heap-leach mine located in Zacatecas state, Mexico. The property is 100 per cent owned by Orla and covers over 160,000 hectares. Orla also owns 100 per cent of Cerro Quema, located in Panama, which includes a gold production scenario and various exploration targets. Cerro Quema is a proposed open-pit mine and heap-leach gold operation. Orla also owns 100 per cent of the South Railroad project, a feasibility-stage, open-pit, heap-leach project located on the Carlin trend in Nevada.

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