Mr. Jason Simpson reports

ORLA MINING DISCOVERS NEW STYLE OF SULPHIDE MINERALIZATION AT CAMINO ROJO EXTENDING 0.5KM BEYOND CURRENT RESOURCES

Orla Mining Ltd. has provided an update on its exploration activities on the extension of the Camino Rojo deposit in the second half of 2023. These recent exploration results emphasize that the Camino Rojo deposit remains open and has substantial upside potential.

Camino Rojo extension (Mexico) Summary

Historical and recent exploration drilling targeted lower stratigraphy, beneath the existing resources. In 2023, a drill section was completed 450 metres down-plunge from the current mineral resources and revealed significant intersections of high-grade polymetallic (Au-Ag-Zn) semi-massive to massive replacement-style mineralization (Figure 1). Recent drilling shows that the Camino Rojo mineral system extends beyond the current mineral resource envelope, presenting a considerable opportunity for resource expansion.

2023 Program: The 2023 Camino Rojo extension drill program involved extending selected infill drillholes beyond the currently defined mineral resources and completing a down-plunge drill section to explore the distal extension into lower stratigraphy; 2,607 metres of drilling across four drill holes. Drill results reported in this press release have returned mineralized intercepts up to 450 metres down plunge of the existing open pit mineral resource boundaries.

Initial Metallurgy: The initial carbon-in-leach (CIL) bottle roll testing within the Camino Rojo extension on material from CRSX-22-07 and CRSX-22-08C resulted in impressive gold recoveries between 81-96 per cent. Flotation testing on the CRSX-22-07 material produced a gold concentrate with 85-88 per cent gold recovery and a zinc concentrate with zinc grades of 52 per cent and over 85 per cent zinc recovery, for the polymetallic replacement-style mineralization.

2024 Program: The company plans to complete a 30,000-metre drill program in 2024 with two objectives: 1) to infill the down-plunge geometry, continuity, and endowment potential of mineralization along the projection of the Dike Zone, and 2) to step out broadly and further assess the extensive upside potential of this open mineralized system.

"The recent drilling results have added a new dimension to our near-mine exploration program, unveiling an exciting new mineralization style in previously disregarded host rocks. With promising initial metallurgical results and substantial upside extension potential, we are committed to driving Orla's 2024 exploration efforts towards expansion drilling as we look to unlock the full potential of the growing Camino Rojo deposit."

- Sylvain Guerard, Orla's Senior Vice President, Exploration

New polymetallic sulphide replacement style mineralization

Orla Mining has confirmed and encountered sulphide mineralization extending beyond the established open pit mineral resource boundaries at Camino Rojo (Table 1). This drilling and mineralization is building on an updated geological model and the success of the previously reported CRSX22-15C hole drilled 200 metres down-plunge from the existing resources (see Table 2 and the company's June 22, 2023 news release).

The impressive intercepts, both historical and recent, justified the execution of a new drill section in 2023, targeting 450 metres down-plunge from the existing resources, along the dike zone structure (Figures 2-4). This significant step-out drilling initiative consisted of drilling 2,400 metres, targeting the area around the positive historical intercept in hole CR12-366D (15.7 g/t Au, 29.0 g/t Ag, 0.73 per cent Zn, 0.10 per cent Pb, 0.08 per cent Cu (19.6 g/t AuEq) over 4.5 metres. This new drill section confirmed the presence of significant polymetallic semi-massive to massive sulphide mineralization (Figure 4). Significant results from this drill section are shown in Table 1.

Positive Initial Metallurgical Results

Orla completed an initial metallurgical testing program in 2023, using drill core material from holes CRSX22-07 and CRSX22-08C (see Table 2) which intersected polymetallic replacement-style mineralization during the 2022 program. The metallurgical results on material from CRSX-22-07 and CRSX-22-08C were positive with high gold recovery reported in both CIL bottle roll tests between 81-96 per cent and rougher flotation on the CRSX-22-07 material produced a gold concentrate with 85-88 per cent gold recovery. Open-circuit zinc cleaner tests on material from CRSX-22-07 produced a zinc concentrate with zinc grades of 52 per cent and over 85 per cent zinc recovery. These results suggest this new style of mineralization may be amenable to both standard cyanide processing and flotation. Orla plans to further explore these promising results through additional metallurgical test work in 2024.

Background

Historical context: Wide-spaced drill intersections of polymetallic (Au-Ag-Zn) replacement-style mineralization were encountered in historical holes beneath the Caracol formation, but the relationship between these intersections and the Camino Rojo sulphides deposit was uncertain, partly due to the lack of a comprehensive geological model for the deeper part of the mineralized system.

2022 program: Part of the 2022 infill program targeted deeper parts of the mineral resource hosted within the upper Indidura formation. This drilling intersecting polymetallic (Au-Ag-Zn) mineralization, similar to the wide-spaced historical intercepts, up to 50 metres below the contact between Caracol and Indidura formations. These results provided confidence that the mineralized system likely continued lower.

2024 Drill Program

The 2024 Camino Rojo extension drill program commenced on January 9 th with six drill rigs currently operational. This program (Figure 5) is comprised of 15,000 metres dedicated to the dike extension target, focusing on the 500-metre spanning between the current mineral resource and the CRSX23-22 series of drill holes. An additional 15,000 metres are allocated to testing open mineralized trends and historical high-grade intersections, aiming to assess the broader potential of the growing Camino Rojo Deposit.

Full drill results are available in the Appendix to this news release and are available at www.orlamining.com.

All metres reported above are down-hole intervals, with true width estimates ranging from 72-88 per cent of the reported interval. See Table 1 in the Appendix to this news release for estimated true widths of individual composites. A standard sampling length of 1.5m is used with a minimum of 0.5m when required based on geologic contacts. All drill core is HQ diameter. The reported composites were not subject to "capping," however a preliminary analysis suggests that only 1 out of 972 samples from the reported holes exceeded the potential capping level of 27.0 g/t Au. This sample assayed 28.6 g/t Au. Orla believes that applying a top cut would have a negligible effect on overall grades. Composites for the sulphide drilling were calculated using 1 g/t Au cut-off grade and maximum 6 metres consecutive waste.

Qualified Persons Statement

The scientific and technical information in this news release has been reviewed and approved by Mr. Sylvain Guerard, P Geo., SVP Exploration of the company, who is the Qualified Person as defined under the definitions of National Instrument 43-101 ("NI 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 QA/QC results with responsible personnel; and reviewed supporting documentation, including drill hole location and orientation and significant assay interval calculations.

Quality Assurance / Quality Control - 2023 Drill Program

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 multi-elements, including silver, copper, lead and zinc using a four-acid digestion with ICP-AES finish (ME-ICP61) method at ALS Laboratories in Canada. If samples were returned with gold values in excess of 10 ppm gold, 100ppm silver or base metal values in excess of 1 per cent by ICP analysis, samples are re-run with gold (Au-GRA21) by fire assay and gravimetric finish or silver and 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.

The initial metallurgical testing on the Camino Rojo extension was completed by Blue Coast Research Ltd. ("Blue Coast"). Blue Coast is independent of the company and employs an internal quality assurance-quality control program consistent with NI 43-101 and industry best practice.

For additional information on the company's previously reported drill results, see the company's press release dated January 31, 2023 (Orla Mining Continues to Intersect Wide, Higher-Grade Sulphide Zones and Expose Deeper Potential at Camino Rojo, Mexico ). Historical drill results at Camino Rojo were completed by Goldcorp. Inc. ("Goldcorp"), a prior owner of the project. The company's independent qualified person, Independent Mining Consultants, Inc. was of the opinion that the drilling and sampling procedures for Camino Rojo drill samples by Goldcorp (and prior to its acquisition by Goldcorp, Canplats Resources Corporation) were reasonable and adequate for the purposes of the Camino Rojo Report, and that the Goldcorp QA/QC program met or exceeded industry standards. See the Camino Rojo Report (as defined below) for additional information.

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. The technical report for the 2021 Feasibility Study on the Camino Rojo oxide gold project entitled "Unconstrained Feasibility Study NI 43-101 Technical Report on the Camino Rojo Gold Project - Municipality of Mazapil, Zacatecas, Mexico" dated January 11, 2021 (the "Camino Rojo Report"), is available on SEDAR and EDGAR under the company's profile at www.sedar.com and www.sec.gov, respectively. 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 gold heap leach operation. The technical report for the Pre-Feasibility Study on the Cerro Quema oxide gold project entitled "

Project Pre-Feasibility Updated NI 43-101 Technical Report on the Cerro Quema Project, Province of Los Santos, Panama" dated January 18, 2022, is available on SEDAR and EDGAR under the company's profile at www.sedar.com and www.sec.gov, respectively. 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. The technical report for the 2022 Feasibility Study entitled "South Railroad Project, Form 43-101F1 Technical Report Feasibility Study, Elko County, Nevada" dated March 23, 2022, is available on SEDAR and EDGAR under the company's profile at www.sedar.com and www.sec.gov, respectively. The technical reports are available on Orla's website at www.orlamining.com.

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