Mr. Luquman Shaheen reports

PANORO MINERALS INTERCEPTS NEW HIGH-GRADE SKARN, COTABAMBAS PROJECT, PERU

Panoro Minerals Ltd. has released the results of four exploratory drill holes which intercept a new high-grade skarn-type mineralization located less than one kilometre to the west of the North pit limit, at the company's Cotabambas copper-gold-silver project in southern Peru. The new target is named the North West pit (NW pit) target.

The highlights are:

• Drill hole CB-225A is an exploratory hole intersecting 27.9 metres of primary sulphide copper mineralization averaging 1.50 per cent Cu, 5.79 grams per tonne Ag and 0.01 g/t Au (1.56 per cent copper equivalent), including an interval of 12.1 m grading 2.07 per cent Cu, 7.2 g/t Ag and 0.02 g/t Au (2.15 per cent CuEq), and a second interval of 9.3 m averaging 1.68 per cent Cu, 6.17 g/t Ag and 0.02 g/t Au (1.75 per cent CuEq). The mineralogy is composed of a semi-massive magnetite containing semi-massive and patch of chalcopyrite and minor pyrite, interlayering with massive andradite garnets, epidote, pyroxenes and intervals of marmolized limestone.
• Drill hole CB-227 is an exploratory hole intersecting 71.4 m of hypogene copper mineralization grading 0.47 per cent Cu, 2.46 g/t Ag and 0.02 g/t Au (0.51 per cent CuEq), including an interval of 37 m averaging 0.75 per cent Cu, 3.61 g/t Ag and 0.03 g/t Au (0.80 per cent CuEq) and 14.9 m grading 1.26 per cent Cu, 5.49 g/t Ag and 0.03 g/t Ag (1.33 per cent CuEq). The skarn mineralization appears the same as intersected by the hole CB-225A, confirming the lateral and vertical continuity of the skarn bodies identified at surface.
• The NW pit target is located approximately 500 m to the west of the PEA North pit limit. In the 2017 exploration campaign the mapping and sampling identified five skarn bodies at surface over an area of 1,200 m by 800 m. The 2023 drilling campaign has identified the continuity at depths to over 350 m below the surface.

Luquman Shaheen, president and chief executive officer, commented: "Drill holes 225A and 227 have identified the growing potential of the mineralization at the Cotabambas project. The recently completed drill program has opened up a number of growth opportunities for the resource, including to the south of the South pit, the gap area between the North and South pits, to the north of the North pit, and now also to the northwest of the North pit. These targets, in addition to the targets at Chaupec and Jean Louis areas, continue to demonstrate the unfolding resource potential along the entire extent of Panoro's mineral concessions covering an area of 120 square kilometres. We are targeting an update to the already significant resource at the Cotabambas project for completion this month and look forward to quantifying the results of the 2022/2023 drilling program with the new resource estimate. Moreover, the current results reinforce management's confidence in additional exploration upside."

Previous work in the NW pit area

The exploration work dates from Cordillera de Las Minas time (2003), where four drill holes (1,135 m) explored a quartz-monzonite stock outcropping 300 to 500 m in the South area. In 2012 Panoro drilled one additional hole in a different direction. No significant results were obtained.

In 2017 Panoro started the exploration in the NW pit target, identifying small outcroppings of quartz-monzonite porphyry dikes located 300 m to the east of the North area. This target was named the Petra-David target, where a swarm of porphyry dikes intrude the diorite host rock showing copper oxide mineralization near surface and along a corridor of 750 m length by 150 m width in northeast direction. In Petra 863 m was drilled and in David 372 m, distributed in very shallow drill holes; results were announced previously in press releases of Oct. 11 and Dec. 11, 2017. The most significant results in the copper oxide blanket are listed below.

• Petra -- hole CB-171: 11 m at 0.44 per cent Cu, 0.12 Au g/t, 2.8 Ag g/t (0.56 per cent CuEq);
• Petra -- hole CB-172: 78 m at 0.32 per cent Cu, 0.08 Au g/t, 2.2 Ag g/t (0.40 per cent CuEq);
• Petra -- hole CB-173: 61 m at 0.38 per cent Cu, 0.10 Au g/t, 4.9 Ag g/t (0.51 per cent CuEq);
• David -- hole CB-175: 88 m at 0.20 per cent Cu, 0.07 Au g/t, 1.8 Ag g/t (0.27 per cent CuEq).

In 2018 Panoro expanded the exploration to the west, identifying five bodies with copper oxide and sulphide mineralization, covered by topsoil and vegetation. The bodies strike 20 to 40 degrees northeast, dip 50 to 45 degrees to the southeast and cover an overall area of 1.2 km by 0.80 km at surface. The area was named the Guaclle North target, now the NW pit target, which is located 500 m to the west side of the PEA North pit limit.

The attached table shows approximate dimensions, number of rock samples, average width and grades supporting the continuity of each skarn body at surface. The results were presented in the press release of July 2, 2019.

The mineralization follows the stratification of big blocks of limestones, overthrusted by the diorite from east to west which host the 750 m corridor of Petra-David target.

The skarn is composed of andradite-type garnet, massive magnetite bodies and layers, epidote, pyroxenes, intruded by small windows of early- and intermedium-stage porphyry dikes. The copper oxide mineralization is composed by malachite, brochantite, minor tenorite and the hypogene copper mineralization by chalcopyrite, chalcocite and minor bornite. Detailed mapping was completed over 90 hectares at 1:1,000 scale and 348 rock samples were collected.

2023 drilling campaign and results

For a first step, the drill holes CB-223, 225A, 226 and 227 were directed to explore at depth the continuity of the bodies 1 and 2, located in the foot wall of the diorite hosting the Petra-David target. The highlighted intersection results are listed in the attached table.

Drill hole CB-223 is an exploratory drill hole executed to review the north extreme of the body 1 at depth. The hole intersected a 235 m package of skarn prograde and retrograde containing interlayering of garnets, pyroxene, epidote and massive magnetite. Inside the package were recognized until three flows of hypogene sulphides with widths varying from 10.7 m to 14.2 m, averaging from 0.14 per cent Cu to 0.28 per cent Cu, 1.71 to 2.16 g/t Ag and 0.01 to 0.04 g/t Ag (0.18 to 0.33 per cent CuEq). This body is open for more exploration in various directions.

Drill hole CB-225A is an exploratory drill hole located 450 m to the south of drill hole CB-223, directed to review the skarn continuity below the bodies 1 and 2. The hole intersected near surface the garnet and pyroxene skarn of body 1 from 25.7 m to 104.2 m including some anomalies from 0.12 per cent Cu to 0.42 per cent Cu and 0.5 g/t Ag to 12.20 g/t Ag.

Body 2 was intersected also, from 158.2 m to 186.1 m (27.9 m), containing copper hypogene sulphide averaging 1.50 per cent Cu, 5.79 g/t Ag, 0.01 g/t Au and (1.56 per cent CuEq.), including one interval of 12.1 m grading 2.07 per cent Cu, 7.2 g/t Ag and 0.02 g/t Au (2.15 per cent CuEq), and a second interval of 9.3 m averaging 1.68 per cent Cu, 6.17 g/t Ag and 0.02 g/t Au (1.75 per cent CuEq). The main composition is a semi-massive magnetite containing semi-massive and patch of chalcopyrite and minor pyrite, interlayering with massive andradite garnets and minor epidote, pyroxenes and intervals of marmolized limestone. Various intervals of primary sulphide with higher copper and silver grades into the mineralized zone were intercepted, such as:

• 1.10 m of 10 per cent Cu, 36.10 g/t Ag;
• 1.5 m of 5.49 per cent Cu, 21.10 g/t Ag;
• One m of 5.3 per cent Cu, 26.2 g/t Ag;
• One m of 3.24 per cent Cu, 12.40 g/t Ag;
• 0.20 m of 12.47 per cent Cu, 9.4 g/t Ag;
• 0.30 m of 8.65 per cent Cu, 24 g/t Ag, including;
• Au values from 0.01 g/t to 0.06 g/t, lead from 30 to 462 parts per million and zinc from 153 to greater than 10,000 ppm.

At 186.10 m the skarn mineralization is in contact with 190 m of a late-stage porphyry of quartz monzonite composition with prograde and retrograde alteration.

Drill hole CB-226 is an exploratory drill hole targeted to explore the mineral continuity below the hole CB-225A. The marbleized limestone was intersected just below the diorite, from 27.45 m to 183.5 m, containing a package of 47.8 m with a mix of garnet, pyroxene and epidote skarn alterations that may correspond to body 1. At depth 214 m of the early-stage quartz monzonite porphyry stock was intersected intruded by 48 m of middle-stage quartz monzonite porphyry dikes containing a low to moderate potassic alteration (orthoclase-secondary biotite-magnetite) overprinted by SCC alteration, with some intervals of quartz veinlets containing magnetite, chalcopyrite, pyrite and chlorite, reporting values from 0.10 to 0.81 per cent Cu, 0.01 to 0.08 g/t Au and 0.5 to 5.9 g/t Ag. This middle-stage porphyry was not intersected by the hole CB-225A and its emplacement could have displaced body 2.

Drill hole CB-227 is other exploratory drill hole targeted to review the body 2 continuity at 100 m to the south of the hole CB-225A. CB-227 intersected 71.4 m of hypogene copper mineralization averaging 0.47 per cent Cu, 2.46 g/t Ag, 0.02 g/t Au (0.51 per cent CuEq), including an interval of 37 m grading 0.75 per cent Cu, 3.61 g/t Ag, 0.03 g/t Au (0.81 per cent CuEq) and another interval of 15 m averaging 1.26 per cent Cu, 5.49 g/t Ag, 0.03 g/t Ag (1.33 per cent CuEq). The mineralization and skarn alterations are the same as the intersected by drill hole CB-225A, with the massive magnetite hosting semi-massive chalcopyrite and minor pyrite. Into the mineralized zone were recognized various intervals of primary sulfide with higher copper and silver grades, such as:

• 1.50 m of 2.85 per cent Cu, 8.9 g/t Ag;
• 0.5 m of 10.76 per cent Cu, 32.3 g/t Ag;
• 0.75 m of 3 per cent Cu, 8.9 g/t Ag;
• 0.45 m of 2.25 per cent Cu, 4.10 g/t Ag, including;
• Au values from 0.01 to 0.14 g/t.

Geologic potential in the NW pit target

The surface mapping and rock sampling done in 2017 permit to configure the continuity of the massive magnetite skarn on the body 2 over 650 m length in northeast direction and dipping to the east below the diorite in the located in the hangingwall. The drill hole CB-225A intersected the same body 2 at 500 m below the outcropping and the CB-227 at 700 m below the outcropping. The geologic potential is estimated to be between 40 million and 50 million tonnes averaging 0.50 per cent CuEq to 1.50 per cent CuEq.

The limestone package hosting the skarn bodies still open for additional drilling exploration in different directions. To the east is open below the diorite hosting the Petra-David targets; to the south in the intersection of Petra target with the east-west fault controlling the mineralization in the North pit; to the west with the other three skarn bodies and the Tamburo skarn target; and to the north is open to the Cateo-Puente skarn target located at one km.

The NW pit represents a new high-grade target with high opportunity to be incorporated in the middle future, in the mine plan initiated in the North and South pits.

About Panoro Minerals Ltd.

Panoro is a uniquely positioned Peru-focused copper development company. The company is advancing its flagship Cotabambas copper-gold-silver project located in the strategically important area of southern Peru.

The company's objective is to complete a prefeasibility study in 2023 with work programs commencing in Q1 2022.

At the Cotabambas project, the company will first focus on delineating resource growth potential and optimizing metallurgical recoveries. These objectives are expected to further enhance the project economics as part of the prefeasibility studies during 2022 and 2023. Exploration and stepout drilling from 2017, 2018 and 2019 have already identified the potential for both oxide and sulphide resource growth.

Luis Vela, a qualified person under National Instrument 43-101, has reviewed and approved the scientific and technical information in this press release.

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