Mr. Andrew Gottwald reports

PASINEX ANNOUNCES SECOND 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 Canadian Institute of Mining, Metallurgy and Petroleum Standing Committee on Reserve Definitions and adopted by the 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 an 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 three and six months ended June 30, 2023, Pasinex recorded net income of approximately $1.1-million and $900,000, respectively, compared with a net loss of approximately $890,000 for the three months ended June 30, 2022, and net income of approximately $2.7-million for the six months ended June 30, 2022. The primary reason for the decrease in the net income in 2023 versus 2022 was that dividend income was considerably higher in 2022 than in 2023. Also, higher general and administration costs and higher exploration costs contributed to the decrease in 2023.
• The operating income in Horzum AS decreased to $1.6-million and $3.6-million in the three and six months ended June 30, 2023, respectively, from $4.8-million and $8.1-million for the same periods in 2022. The decreases were due to lower revenue as sales prices and the number of tonnes sold declined in 2023 compared with 2022, and costs were higher due to inflationary pressures. Gross margin for the three and six months ended June 30, 2023, was 53 per cent and 56 per cent, respectively, compared with 82 per cent and 78 per cent for the same periods in 2022.
• Horzum AS mined 1,954 tonnes and 4,765 tonnes of zinc product during the three and six months ended June 30, 2023, at the Pinargozu mine, compared with 3,264 tonnes and 7,804 tonnes of zinc product for the same periods 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 Turkey in the first quarter of 2023. Second quarter production in 2023 was negatively impacted by the ingress of rainwater that rendered some of the deeper areas below the 541-metre level inaccessible.
• Sales volumes were 2,993 tonnes and 5,990 tonnes of high-grade zinc sulphide product in the three and six months ended June 30, 2023, compared with 3,041 tonnes and 5,571 tonnes of high-grade zinc sulphide product for the same periods in 2022. Sales in 2022 also included 493 tonnes of oxide product and 55 tonnes of lead product.
• Sales prices per tonne on a U.S.-dollar basis decreased by 47.9 per cent for the zinc sulphide product for the six months ended June 30, 2023, when compared with prices in the same period in 2022. The average U.S.-dollar sales prices for the six months ended June 30, 2023, were $704 (U.S.) per tonne for the zinc sulphide product versus $1,353 (U.S.) per tonne for the zinc sulphide product in the same period in 2022. Sales prices were lower due to lower worldwide sales prices and a lower average grade of product sold.
• The average grade of the high-grade zinc sulphide product sold was 47.8 per cent zinc per tonne for the six months ended June 30, 2023, compared with 50.9 per cent zinc per tonne for the same period in 2022.
• The Canadian-dollar cost per tonne mined increased to $493 per tonne mined for the six months ended June 30, 2023, compared with $358 per tonne mined in the same period in 2022. The U.S.-dollar cash cost per pound of zinc product mined increased to 36 U.S. cents per pound in the six months ended June 30, 2023, from 27 U.S. cents per pound for the same period in 2022.
• During the quarter ended June 30, 2023, at an ordinary general assembly meeting, Horzum AS declared and approved a dividend, a legal reserve distribution and approved advance dividend distributions totalling approximately 81.0 million Turkish lire (approximately $5.5-million using the exchange rate on the date the dividend, distribution and the advanced dividend distributions were declared and approved). Pasinex Arama will be entitled to receive up to approximately 57.0 million Turkish lire (approximately $3.9-million using the exchange rate on the date the dividend, the legal reserves distribution and the advanced dividend distributions were declared).

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. 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 is a Toronto-based mining company that owns 50 per cent of Horzum Maden Arama ve Isletme Anonim Sirketi through its 100-per-cent-owned subsidiary Pasinex Arama ve Madencilik Anonim Sirketi. 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.

We seek Safe Harbor.