Mr. Andrew Gottwald reports

PASINEX ANNOUNCES THIRD QUARTER 2023 FINANCIAL RESULTS

Pasinex Resources Ltd. has provided financial results for third quarter of 2023.

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 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.

Highlights -- third quarter ended Sept. 30, 2023:

• For the three and nine months ended Sept. 30, 2023, Pasinex recorded a net loss of approximately $300,000 and a net income of approximately $400,000, respectively, compared with a net loss of approximately $600,000 for the three months ended Sept. 30, 2022, and a net income of approximately $2.1-million for the nine months ended Sept. 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-million and $4-million in the three and nine months ended Sept. 30, 2023, respectively, from $1.9-million and $7.9-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 nine months ended Sept. 30, 2023, were 51 per cent and 55 per cent, respectively, compared with 64 per cent and 73 per cent for the same periods in 2022.
• Horzum AS mined 1,748 tonnes and 6,513 tonnes of zinc product during the three and nine months ended Sept. 30, 2023, respectively, at the Pinargozu mine, compared with 3,001 tonnes and 10,805 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. Third-quarter production was lower primarily due to a lack of access to available ore.
• Sales volumes were 1,989 tonnes and 7,979 tonnes of high-grade zinc sulphide product in the three and nine months ended Sept. 30, 2023, respectively, compared with 3,998 tonnes and 9,569 tonnes of high-grade zinc sulphide product for the same periods in 2022. Sales in 2022 also included 493 tonnes of oxide product, 943 tonnes of low-grade zinc sulphide product and 54 tonnes of lead product.
• Sales prices per tonne on a United States-dollar basis decreased by 34.2 per cent for zinc sulphide product for the nine months ended Sept. 30, 2023, when compared with prices in the same period in 2022. The average sales price for the nine months ended Sept. 30, 2023, was $780 (U.S.) per tonne for zinc sulphide product versus $1,185 (U.S.) per tonne for zinc sulphide product in the same period in 2022. Sales prices were lower not only because of lower worldwide zinc prices but also because the average grade of product sold was lower in 2023 versus 2022.
• The average grade of the high-grade zinc sulphide product sold was 48.6 per cent zinc per tonne for the nine months ended Sept. 30, 2023, compared with 50.5 per cent zinc per tonne for the same period in 2022.
• The cost per tonne mined increased to $634 per tonne and $531 per tonne mined for the three and nine months ended Sept. 30, 2023, respectively, compared with $481 per tonne and $392 per tonne mined in the same periods in 2022. The cash cost per pound of zinc product mined increased to 45 U.S. cents per pound and 38 U.S. cents in the three and nine months ended Sept. 30, 2023, respectively, from 39 U.S. cents per pound and 30 U.S. cents for the same periods in 2022.

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 (QP) 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 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.