Mr. Jason Simpson reports

ORLA MINING REPORTS THIRD QUARTER 2023 RESULTS

Orla Mining Ltd. has released its results for the third quarter ended Sept. 30, 2023.

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

Third quarter 2023 highlights:

• Gold production was 32,425 ounces and gold sold was 31,061 ounces (prereleased, Oct. 16, 2023). Year-to-date gold production is 87,393 ounces. The company increased full-year gold production guidance to a range of 110,000 to 120,000 ounces from its initial guidance range of 100,000 to 110,000 ounces.
• All-in sustaining costs (AISC) (1) were $743 per ounce of gold sold during the third quarter 2023. Year-to-date AISC is $712 per ounce of gold. The company remains on track to meet the revised full-year AISC guidance for the full year 2023 of $700 to $800 per ounce of gold sold.
• Adjusted earnings (1) for the third quarter were $6.6-million or two cents per share.
• Net income for the third quarter was $5.4-million or two cents per share.
• Cash flow from operating activities before changes in non-cash working capital during the third quarter was $21.8-million.
• Exploration and project expenditure was $15.8-million during the quarter, of which $4.6-million was capitalized and $11.2-million was expensed. The company advanced exploration activities across the portfolio, including intersection of polymetallic semi-massive to massive sulphide 450 metres downplunge of the Camino Rojo sulphide mineral resource.
• The company amended its $150-million credit facility into a fully revolving facility at a lower cost of capital, with the ability to upsize to $200-million.
• As at Sept. 30, 2023, Orla's cash balance was $132.8-million and net debt was $3.4-million. Subsequent to the quarter-end, the company repaid $25-million toward its revolving credit facility, reducing the balance outstanding under the facility to $88.4-million.
• The company renewed its union and collective bargaining agreement (CBA) at Camino Rojo with 100-per-cent employee approval. The initial agreement was obtained in August and was formally ratified in early October. The agreement is valid for two years.
• The company continues to monitor recent events in Panama. The impact of these events on the Cerro Quema project remains uncertain and rapidly changing. The company will make an informed assessment of its strategy once additional information is available.

"The quarter was marked by continued operational outperformance at Camino Rojo and balance sheet strengthening. We have improved our annual production guidance range and we are on track to being in a net cash position shortly," said Jason Simpson, president and chief executive officer of Orla. "We are also pleased to have renewed the collective bargaining agreement with our employees at Camino Rojo. Our employees are critical in our collective success and we value this important partnership."

(1) Cash cost, AISC, adjusted earnings and net debt are non-GAAP (generally accepted accounting principles) measures.

Financial and operations summary

The Camino Rojo oxide gold mine achieved quarterly gold production of 32,425 ounces of gold in the third quarter of 2023 at an average ore stacking rate of 19,205 tonnes per day. The average mining rate during the third quarter was 31,820 tonnes per day with a strip ratio of 0.59. The average grade of ore processed during the third quarter was 0.85 gram per tonne (g/t) gold, in line with the company's plan. Gold sold during the third quarter 2023 totalled 31,061 ounces. Subsequent to the quarter-end, October, 2023, gold production totalled 11,759 ounces, a monthly record for the company.

Tonnes of waste mined remained lower than planned during the quarter as the company awaited receipt of permits from the Secretariat of Environment and Natural Resources (known as Semarnat) for access to certain areas of the pit. The company does not expect the delay in obtaining the permits to have any impact on its 2023 production guidance. However, Orla expects waste tonnes to remain below average for the remainder of 2023, resulting in lower mining costs for the year.

Third quarter cash costs and AISC totalled $527 and $743 per ounce of gold sold, respectively. The key contributors to the lower AISC are: (i) lower waste tonnes mined; (ii) lower blasting costs; and (iii) lower maintenance costs.

At Camino Rojo, metallurgical laboratory column tests have indicated that reducing the size of the crushed ore from 28 millimetres (mm) to 23 mm increased the overall recovery of gold and silver. Changes to the crushing circuit were implemented in early August and the initial indication are that gold and silver recoveries are increasing above plan. The company will continue to monitor the results of the continued optimization on the heap leach performance, which has a 90-day leach cycle.

The company revised its full-year AISC guidance in August, 2023, reducing the range to $700 to $800 per ounce of gold sold from its original guidance of $750 to $850 per ounce. The reduced cost guidance was mainly driven by lower waste tonnes mined during the first half of 2023, which is expected to continue for the remainder of the year due to limited access to certain areas of the pit as the company await permits from the Semarnat, as noted above. The company maintains the AISC guidance of $700 to $800 per ounce of gold sold.

On Oct. 16, 2023, the company increased its full-year gold production guidance range to 110,000 to 120,000 ounces from its initial guidance of 100,000 to 110,000 ounces. Sustaining capital during the third quarter of 2023 totalled $2.5-million. This covered items such as the construction of a dome over the ore stockpile for dust control, the construction of water wells and IT (information technology) network infrastructure, as well as drilling and evaluation work at the layback area.

Exploration and projects update

In the third quarter, exploration was focused on drilling at Camino Rojo in Mexico and South Railroad in Nevada, U.S.

Camino Rojo exploration update (Mexico)

Orla's 2023 Camino Rojo exploration budget is $22-million. Approximately 80 per cent of the planned 34,000 metres of infill drilling on the sulphide has been completed and is intended to advance the understanding of the deposit. The regional exploration drill program is testing priority regional targets in an effort to make new satellite discoveries. Approximately 85 per cent of the planned 15,000-metre regional drilling program has been completed to date.

High-grade gold and zinc intersections continue to support potential for Camino Rojo sulphide extensions

Additional drilling targeting polymetallic (gold-silver-zinc (Au-Ag-Zn)) semi-massive to massive sulphide mineralization below the Caracol-formation-hosted sulphide was completed in the third quarter of 2023. These intercepts indicate that mineralization remains open at depth along and adjacent to interpreted feeder-like structures for the currently defined Camino Rojo deposit. Approximately 20 per cent of the 2023 sulphide drill holes were extended, beyond the boundaries of the current open-pit resource estimate, to test the downplunge continuity of gold mineralization along the steep northwest-dipping dike structural zone.

As reported in Q2 2023, drill hole CRSX23-15C intersected significant polymetallic sulphide replacement mineralization beneath the Caracol-formation-hosted sulphide along and adjacent to the dike structural zone. This intersection, supported by a new geological model, suggests the extension of the currently defined sulphide mineralization. Based on this model and success of hole 15C, a drill section was designed to follow up on historical drill results 250 m downplunge of hole 15C, 450 m from the limit of the current resources. Visual results from the stepout drill section indicate a similar style of semi-massive to massive sulphide mineralization as was intercepted in hole 15C. Based on visual results, sulphide mineralization remains open at depth. Assay results are pending.

Following positive results from the 2023 sulphide extension drill program, near-mine exploration efforts in 2024 are anticipated to shift from infill drilling of the Caracol-hosted sulphide to focus on assessing the downdip and downplunge extension of the CR deposit while continuing to advance economic evaluation of the Caracol-hosted mineralization.

Drill results at the Camino Rojo sulphide continue to support potential for underground development

Drilling into the Camino Rojo sulphide continues to intercept wide zones (more than 15 m downhole drill intersections) of higher-grade gold mineralization (more 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 sulphide.

The 2023 infill drilling is expected to be completed in the fourth quarter 2023. Drill results from the 2023 drill program will inform a future update to a potential underground resource estimate, mining methods and production decisions.

See the company's news release dated June 22, 2023, and full drill results are available on the company's website.

Near-mine layback drilling seeking to confirm mineralization with targeted mineral resource addition

The company completed drilling in the oxide pit layback to confirm and delineate mineralization on the Fresnillo PLC property, located immediately north of and adjacent to the Camino Rojo oxide mine open pit. Results from the layback program were as expected and will be included in the 2023 year-end mineral resource and mineral reserve estimate update expected to be published in the first quarter of 2024.

South Railroad exploration update (Nevada, U.S.)

The first full year of exploration at South Railroad, following Orla's acquisition of the project in August, 2022, is progressing with drilling continuing through the third quarter. The exploration objectives at South Railroad are to upgrade and grow resources at satellite deposits and drill test multiple targets for new discovery. Drilling in the third quarter focused on infill drilling to support upgrading resources at the North Bullion deposit, as well as testing the pit extension potential of the Dark Star and Pinion deposits. Infill and extension drilling is expected to be completed in the fourth quarter of 2023. Multiple exploration targets will also be drill tested across the South Railroad project during the fourth quarter.

Panama update

In November, 2023, the National Assembly of Panama passed Bill 1110, which included a moratorium on granting, renewing or extending concessions for the exploration, extraction or exploitation of metal mining in Panama. The legislation was passed in response to public opposition to certain mining activities in the country. The impact of these developments on the company's Cerro Quema project remains uncertain and rapidly changing. The company expects that various factors, including potential court challenges and the May, 2024, Panamanian general election, may impact its strategy in Panama. The company will continue to monitor these developments and make an informed assessment of its strategy once additional information is available.

Orla believes that the Cerro Quema project could be an important social and economic contributor to the host community of Panama. The company is committed to sustainable mining, which includes sharing the benefits created by the mining operations and being responsible environmental stewards of the local environments where it operates.

2023 guidance update

The company is advancing the construction of the third phase of the heap leach pad at Camino Rojo in the fourth quarter. This construction is ahead of schedule and is expected to increase sustaining capital in 2023 by $4-million. The company maintains its 2023 full-year AISC guidance of $700 to 800 per ounce gold sold.

Financial statements

Orla's unaudited financial statements and management's discussion and analysis for the quarter ended Sept. 30, 2023, are available on the company's website and under the company's profiles on SEDAR+ and EDGAR.

Qualified persons

The scientific and technical information in this news release was reviewed and approved by J. Andrew Cormier, PEng, chief operating officer of the company, and Sylvain Guerard, PGeo, senior vice-president, exploration, of the company, who are the qualified persons as defined under National Instrument 43-101, Standards of Disclosure for Mineral Projects.

Third quarter 2023 conference call

Orla will host a conference call on Tuesday, Nov. 14, 2023, at 10 a.m. Eastern Time, to provide a corporate update following the release of its financial and operating results for the third quarter 2023.

Dial-in numbers/webcast

Conference ID No.:  5844017

Toll-free:  1-888-550-5302

Toll:  1-646-960-0685

Webcast:  A webcast will be available on the company's website.

About Orla Mining Ltd.

Orla's corporate strategy is to acquire, develop and operate mineral properties where the company's expertise can substantially increase stakeholder value. The company has three material gold projects: (1) Camino Rojo, located in Zacatecas state, Mexico; (2) South Railroad, located in Nevada, U.S.; and (3) Cerro Quema, located in Los Santos province, Panama. Orla is operating the Camino Rojo oxide gold mine, a gold and silver open-pit and heap leach mine. The property is 100 per cent owned by Orla and covers over 160,000 hectares, which contain a large oxide and sulphide mineral resource. Orla also owns 100 per cent of the South Railroad project, a feasibility-stage, open-pit, heap leach gold project located on the Carlin trend in Nevada. Orla also owns 100 per cent of Cerro Quema, located in Panama, which includes a prefeasibility-stage, open-pit, heap leach gold project, a copper-gold sulphide resource and various exploration targets. The technical reports for the company's material projects are available on Orla's website and on SEDAR+ and EDGAR.

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