Mr. Brad George reports

OROSUR MINING INC ANNOUNCES COLOMBIA UPDATE

Orosur Mining Inc. has provided an update on the status of the company's flagship Anza project in Colombia.

The project is the subject of an exploration agreement with venture option with Colombian company Minera Monte Aguila (MMA). MMA is itself a 50/50 joint venture between Newmont Corp. and Agnico Eagle Mines Ltd. and is the Colombian vehicle by which these two companies jointly exercise their rights and obligations with respect to the exploration agreement over the project. MMA is the current operator of the project.

The exploration agreement came into effect in September, 2018, with the first phase lasting four years and being successfully completed in September, 2022, such that MMA earned a 51-per-cent interest in the project. The company and MMA then began the process of moving toward phase 2 of the exploration agreement, which included a $2-million (U.S.) option payment being made to Orosur in early March, 2023.

Subsequent to this, as announced on May 4, 2023, the company was informed that MMA was reviewing its alternatives in respect of the project and may not proceed to phase 2 of the exploration agreement.

The company is pleased to announce that on March 22, 2023, it entered into a non-binding letter of intent with MMA, that provides for a transaction pursuant to which Orosur would repurchase, directly or indirectly, MMA's interest in the project, resulting in Orosur having 100-per-cent ownership of the project. The proposed consideration set out in the letter of intent is a net smelter return royalty of 1.5 per cent and cash payments of up to $15-million (U.S.) payable upon meeting certain agreed production thresholds.

Subject to several conditions, including but not limited to, the negotiation of definitive documentation and the completion of due diligence, the company expects that the transaction can be completed as early as the end of April, 2024.

Further details of the transaction remain commercially confidential and will be disclosed if and when the transaction is completed.

Preparations

Concurrently with negotiation of the transaction, the company has begun the process of preparing to reassume ownership and operatorship of the project. This involves, among other things, the recruitment of staff, liaising with the local community, discussions with relevant contractors and suppliers, and the obtaining of various permits required for field operations.

Should the transaction be completed, the company hopes to be able to recommence drilling operations as quickly as possible after reassuming operatorship.

Orosur chief executive officer Brad George commented:

"After such a long period in abeyance, we are excited at the prospect of reassuming ownership and control of Anza at this time of buoyant gold prices and heightened market interest in precious metals. Most importantly, the structure of the transaction whereby all consideration is deferred and contingent upon production allows us to immediately direct our resources into the ground."

About the Anza project

Anza is a gold exploration project, comprising three exploration licences, four exploration licence applications and a small exploitation permit, totalling in aggregate 207.5 square kilometres in the prolific Mid-Cauca belt of Colombia.

Orosur's interest in the Anza project is currently held via its subsidiary, Minera Anza SA.

The project is located 50 km west of Medellin and is easily accessible by all-weather roads and boasts excellent infrastructure, including water, power, communications and a large exploration camp.

The Anza project is subject to an exploration agreement with venture option dated Sept. 7, 2018, as announced on Sept. 10, 2018, between Orosur's 100-per-cent subsidiary Minera Anza and Minera Monte Aguila, a 50/50 joint venture between Newmont and Agnico Eagle Mines.

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