Mr. Andrew Gottwald reports

PASINEX ANNOUNCES 2022 FINANCIAL RESULTS

Pasinex Resources Ltd. has provided a company update.

Cautionary note

The company has not completed a current technical report that includes a mineral resource estimate as defined by the mineral resources and reserves definitions and guidelines prepared by the CIM (Canadian Institute of Mining, Metallurgy and Petroleum) standing committee on reserve definitions and adopted by CIM council, and procedures for classifying the reported mineral resources were undertaken within the context of the Canadian Securities Administrators National Instrument 43-101. The company has no intention of completing a NI 43-101-compliant technical report. The joint venture has not followed accepted quality assurance and quality control procedures with respect to its current drilling program and has not used an independent third party laboratory for its assay analysis. The joint venture uses field hand-held X-ray fluorescence analyzers (XRF) for zinc assays and grade control in exploration and mining. In addition, assays are completed by an independent third party laboratory for all of the joint venture's sales.

• For the year ended Dec. 31, 2022, Pasinex recorded a net income of approximately $2.04-million, compared with a net loss of approximately $130,000 for 2021. The primary reason for the increase in the net income was the increase in equity gain 2022, which was partially offset by higher general and administration costs, and exploration costs incurred in Nevada in 2022.
• The operating income in Horzum AS increased to $12.9-million in 2022 from $3.7-million in 2021. This substantial increase was due to higher revenue generated from higher sales prices. The increased sales prices were the result of higher worldwide zinc prices in 2022, along with selling a greater proportion of high-grade zinc sulphide product in 2022 compared with 2021. The higher sales prices also resulted in the gross margin for the year ended Dec. 31, 2022, increasing to 72 per cent versus 50 per cent in 2021.
• Horzum AS declared a dividend to be paid to its shareholders, of which Pasinex Arama was entitled to 42.2 million Turkish lire. Pasinex Arama has received all of this amount. Total cash received from Horzum AS during 2022 was approximately $4.5-million.
• It was announced on July 1, 2022, that Horzum AS and Pasinex Arama had filed legal actions against the mining ministry in Turkey, T.C. Maden ve Petrol Iserl Genel Mudurlugu (MAPEG), following its decision not to extend the principal mining operational licence of Horzum AS beyond April 15, 2023, and the Akkaya operational exploration licence of Pasinex Arama. The joint venture and Pasinex Arama jointly conducted negotiations with MAPEG subsequent to that announcement and, on Nov. 30, 2022, it was reported that the extension of the principal mining operational licence of Horzum AS and the Akkaya operational exploration licence of Pasinex Arama had both been received. Both licences have been extended to November, 2032, in Adana province in Turkey. In particular, the receipt of the principal mining operational licence of Horzum AS allows the joint venture to continue generating positive cash flows.
• Horzum AS had another zero-fatality year at the Pinargozu mine, with a total of 194,504 fatality-free hours having been worked at the Pinargozu mine in 2022. Horzum AS did report four serious injuries and 12 lost-time injuries during the year.
• Horzum AS mined 13,766 tonnes of zinc product during 2022, at the Pinargozu mine, compared with 10,608 tonnes of zinc product in 2021. Mine production increased in 2022 due to an increase in available ore product resulting from the development of the fourth adit in 2021. Production for 2022 fell short of the amount forecasted, as Horzum AS experienced water issues at the beginning of the year and was not able to increase its monthly production level in the later months of the year.
• Sales volumes increased in 2022 to 13,067 tonnes of zinc and lead product, compared with 8,620 tonnes in 2021, primarily as the result of having higher available tonnes to sell as production increased during the year. This included 11,577 tonnes (2,871 tonnes in 2021) of high-grade zinc sulphide product.
• Average sales prices per tonne on a United States-dollar basis improved by approximately 80 per cent and 4 per cent, for zinc oxide product and high-grade zinc sulphide product, respectively, between 2022 and 2021. The average U.S. sales price for the year ended Dec. 31, 2022, was $865 (U.S.) (2021 -- $480 (U.S.)) per tonne for zinc oxide product and $1,121 (U.S.) (2021 -- $1,078 (U.S.)) per tonne for high-grade zinc sulphide product.
• The average grade of the high-grade zinc sulphide product sold was 50.1 per cent zinc per tonne for the year ended Dec. 31, 2022, compared with 48.6 per cent zinc per tonne in the same period in 2021. The average grade of the zinc oxide product sold increased to 37.8 per cent zinc per tonne for the year ended Dec. 31, 2022, compared with 31.3 per cent zinc per tonne in the same period in 2021.
• The Canadian cost per tonne mined dropped slightly in 2022, to $380 per tonne mined, compared with $383 per tonne mined in 2021. The cost per tonne metric in 2022 compared with 2021 was helped by increased mined tonnes in 2022. This decrease was partially offset by higher costs being incurred in 2022, including increased royalties payable as a result of higher sales values per tonne.
• The U.S. cash cost per pound of zinc product mined dropped to 28 U.S. cents per pound in 2022 from 36 U.S. cents per pound in 2021, as the average grade of zinc product mined increased in 2022 compared with 2021, which resulted in more pounds of zinc being produced.
• The joint venture completed 9,345 metres of underground and surface diamond core drilling in 2022 compared with a forecast of 10,000 metres, and completed 1,743 metres of exploration and adit development during 2022 versus a forecast of 1,200 metres.
• The company earned a 51-per-cent interest in the company's Gunman project during the year after having completed a portion of a multiphased exploration program in Nevada.
• Subsequent to Dec. 31, 2022, Pasinex Arama received approximately 17.5 million Turkish lire ($1.2-million using the exchange rates on the dates of the various transfers from Horzum AS), in advanced dividends. Of this amount approximately 15.5 million Turkish lire ($1.1-million using the exchange rates on the dates the various transfers) was transferred from Pasinex Arama to Pasinex Canada.

Refer to the 2022 management's discussion and analysis (MD&A) and audited financial statements found on SEDAR for more information.

Qualified person

Jonathan Challis, a fellow of the Institute of Materials, Minerals and Mining and a chartered engineer, is the qualified person as defined by National Instrument 43-101 for all information in this news release other than the information relating to the Gunman project. He has inspected the original paid sales invoices issued by the joint venture for the shipment of zinc sulphide product specified in this news release, and has approved the scientific and technical disclosure herein. Mr. Challis is a director of the company and chair of the joint venture.

About Pasinex Resources Ltd.

Pasinex Resources is a Toronto-based mining company that owns 50 per cent of Horzum Maden Arama ve Isletme Anonim Sirketi (Horzum AS, or joint venture) through its 100-per-cent-owned subsidiary, Pasinex Arama ve Madencilik Anonim Sirketi (Pasinex Arama). Horzum AS holds 100 per cent of the producing Pinargozu high-grade zinc mine. Horzum AS sells directly to zinc smelters and/or refiners through commodity brokers from its mine site in Turkey. The company also holds a 51-per-cent interest, with an option to increase to an 80-per-cent interest of a high-grade zinc exploration project, the Gunman project, located in Nevada. Pasinex has a strong technical management team with many years of mineral exploration and mining project development experience. Pasinex's mission is to explore and extract high-grade ore to drive growth and wealth for all of its stakeholders, including shareholders, employees and the communities of its operations, meeting all requirements in safety, health and the environment.