Mr. Andrew Gottwald reports

PASINEX ANNOUNCES FIRST QUARTER 2023 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 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 analysers (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.

Highlights:

• For the three months ended March 31, 2023, Pasinex recorded a net loss of approximately $200,000, compared with a net income of approximately $3.6-million for the same period in 2022. The primary reason for the decrease in the net income in 2023 versus 2022 was the inclusion of the dividend in 2022. Also, higher general and administration costs, higher exploration costs, and the inclusion of a loss on net monetary position all contributed to the decrease in 2023.
• The operating income in Horzum AS decreased to $2.1-million in 2023 from $3.3-million in 2022. This decrease was due to lower revenue as sales prices declined in 2023 compared with 2022. Gross margin for the three months ended March 31, 2023, was 58 per cent, compared with 72 per cent for the same period in 2022.
• Horzum AS mined 2,811 tonnes of zinc product during the first three months of 2023, at the Pinargozu mine, compared with 4,540 tonnes of zinc product for the same period in 2022. Mine production was negatively impacted by a temporary halt in activity at the Pinargozu mine to ensure the safety and well-being of the joint venture's employees, after the tragic earthquakes in Turkiye in the first quarter of 2023.
• Sales volumes were 2,997 tonnes of high-grade zinc sulphide product in the three months ended March 31, 2023, compared with 2,530 tonnes of high-grade zinc sulphide product and 434 tonnes of oxide product for the same period in 2022.
• Sales prices per tonne on a United States-dollar basis decreased by approximately 32 per cent for zinc sulphide product for the three months ended March 31, 2023, when compared with prices in the same period in 2022. The average United States-dollar sales price for the three months ended March 31, 2023, was $892 (U.S.) per tonne for zinc sulphide product versus $1,318 (U.S.) per tonne for zinc sulphide product in the same period in 2022.
• The average grade of the high-grade zinc sulphide product sold was 49.6 per cent zinc per tonne for the three months ended March 31, 2023, which was slightly less than the 52.6 per cent zinc per tonne for the same period in 2022.
• The Canadian-dollar cost per tonne mined increased in the first three months of 2023 to $491 per tonne mined, compared with $319 per tonne mined in the same period in 2022. The United States-dollar cash cost per pound of zinc product mined increased to 34 U.S. cents per pound in the first quarter of 2023 from 26 U.S. cents per pound for the same period in 2022.
• Subsequent to March 31, Pasinex Arama transferred three million Turkish liras (approximately $200,000 using the exchange rate on the date of the transfer) to Pasinex Canada.
• Also, subsequent to the quarter ended March 31, 2023, at an Ordinary General Assembly Meeting, Horzum AS declared a dividend and approved advance dividend distributions totalling approximately 70 million Turkish liras (approximately $4.8-million using the exchange rate on the date the dividend and the advanced dividend distributions were declared). Pasinex Arama is entitled to 49 million Turkish liras (approximately $3.3-million using the exchange rate on the date the dividend and the advanced dividend distributions were declared) of this amount. After deducting amounts already received by Pasinex Arama, approximately 26.6 million Turkish liras (approximately $1.8-million using the exchange rate on the date the dividend and the advanced dividend distributions were declared) remains to be collected.

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 NI 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) through its 100-per-cent-owned subsidiary, Pasinex Arama ve Madencilik Anonim Sirketi (Pasinex Arama).

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