Ms. Jody Kuzenko reports

TOREX GOLD PROVIDES 2025 OPERATIONAL GUIDANCE AND UPDATED FIVE-YEAR PRODUCTION OUTLOOK

Torex Gold Resources Inc. has provided its 2025 operational guidance, as well as an updated five-year production outlook for the Morelos complex. Full-year guidance assumes a four-week shutdown of the processing plant during the first quarter to carry out upgrades and tie-ins required to complete the Media Luna project.

(All dollar amounts are expressed in U.S. dollars unless otherwise stated.)

Jody Kuzenko, President and CEO of Torex, stated:

"Two thousand twenty-five will be a pivotal year for Torex with the conclusion of the Media Luna project only a few months away, marking the start of our next chapter at Morelos. For the first time, we will have simultaneous production from both the north and south sides of the Balsas River, and we will also become a meaningful copper (Cu) producer, with the metal representing approximately 20 per cent of the guided 2025 production. The lower guided production compared to 2024 reflects four weeks of downtime at the processing plant while we complete the tie-ins for Media Luna. Production is expected to increase in 2026, holding at 450,000 to 500,000 gold equivalent ounces (oz AuEq) through 2030 on the reserve case, with considerable exploration upside remaining.

"All-in sustaining costs are expected to be higher in 2025 on account of the lower production and fewer economies of scale, which we expect to gain as mining at Media Luna ramps up and cost-efficiencies are attained. All-in sustaining costs guidance of $1,400 to $1,600 per oz AuEq sold also reflects the impact of higher forecast metal prices on royalties and profit-sharing with 2025 guidance assuming a gold (Au) price of $2,500 per ounce (oz) versus 2024 guidance of $1,900 per oz. All-in sustaining costs are expected to improve throughout the year with fourth quarter costs anticipated to be towards the lower end of the guided range. Costs are expected to improve further in 2026 and 2027 as Media Luna ramps up, production increases and efficiencies are gained.

"On the drilling and exploration front, we are planning to invest $45-million, representing 50 per cent more than was spent in 2024, with a focus on expanding resources, replacing reserves and drill testing several high-priority targets. On project development, we plan to invest $30- to $35-million this year in EPO, which remains on track for first production in late 2026. This investment includes driving an exploration decline, which will allow us to more efficiently upgrade and convert resources at this newest mining front.

"Capital expenditures are expected to materially decline year over year with the completion of Media Luna in the first quarter. With our usual seasonality of cash flow, after accounting for outflows related to tax, royalty and profit-sharing payments during the first half of the year, we expect to return to positive free cash flow midyear. Free cash flow from the business will be used for growth, to further strengthen the balance sheet and enhance return of capital, with the previously announced share buyback program likely to be complemented by a sustainable dividend that can grow over time.

"With first production from Media Luna in the coming months, strong free cash flow generation and development starting at EPO, we are looking forward to the exciting year ahead as we build on the operational track record we have established, continue to generate strong returns for our shareholders and solidify our production profile for decades to come."

Starting in 2025, Torex will primarily report payable production, sales and all-in sustaining costs on a gold equivalent basis, which reflects the projected increase in Cu and silver (Ag) production with the start-up of Media Luna. Production and sales by individual metal will continue to be reported, as will byproduct all-in sustaining costs for 2025. AuEq values will be based on average market prices for Au, Ag and Cu.

2025 production guidance

Payable production in 2025 is guided at 400,000 to 450,000 oz AuEq compared to 460,000 to 480,000 oz AuEq guided in 2024. The lower production year-over-year reflects four weeks of scheduled downtime in the processing plant during the first quarter to complete upgrades and tie-ins related to the Media Luna project.

Approximately 75 per cent of AuEq payable production guidance in 2025 is expected to come from Au, 20 per cent from Cu and the remainder from Ag. AuEq production is guided on forecast metal prices of $2,500 per oz Au, $28 per oz Ag and $4.30 per lb Cu.

Prior to the four-week shutdown, the processing plant will continue to treat ore from ELG open pit and ELG underground while ore from Media Luna is stockpiled. Following the shutdown, the primary sources of feed for the processing plant will come from Media Luna and ELG underground, with stockpiles processed as required.

Given plans to maintain an aggressive pace of underground development and delineation drilling throughout 2025, the company is targeting to exit the year at a mining rate of 6,500 tonnes per day (tpd) at Media Luna and achieve the designed mining rate of 7,500 tpd by mid-2026, approximately six months ahead of the schedule outlined in the March, 2022, technical report. Mining rates at ELG underground are expected to average more than 2,800 tpd during 2025, given the plan to leverage long-hole open stoping within steeper zones of the underground mine. While the cut-and-fill method is expected to remain the primary mining method at ELG, the company will continue to look at opportunities to further leverage long-hole open stoping where applicable.

AuEq payable production is expected to be the lowest during the first quarter given the four-week shutdown of the processing plant and lower processed grades with depletion of main El Limon open pit in late 2024. Production during the remaining quarters is expected to be relatively consistent. AuEq sales are expected to be more back-end weighted given a majority of revenue starting in the second quarter will come from precious metal rich Cu concentrate, for which there is a longer lag time between production and sales relative to dore.

2025 all-in sustaining cost guidance

All-in sustaining costs are guided at $1,400 to $1,600 per oz AuEq sold during 2025. The higher costs relative to 2024 include the impact of lower guided production, higher unit costs during the initial ramp-up of Media Luna and higher metal prices than realized in 2024.

• Lower production year over year: The lower annual production due to the four-week shutdown of the processing plant is forecast to impact all-in sustaining costs by $70 per oz AuEq relative to 2024.
• Higher metal prices year over year: 2025 guidance is based on an Au price of $2,500 per oz, which is expected to impact all-in sustaining costs by $65 per oz AuEq, including higher royalties and impact on AuEq production related to the stronger gold price relative to copper. Guidance also includes the impact of the recent increase in the government-based royalty on Au and Ag to 1.0 per cent from 0.5 per cent. Note that the Mexican mining royalty has also increased to 8.5 per cent from 7.5 per cent but does not impact all-in sustaining costs as it is accounted for as an income tax.
• Economies of scale during Media Luna ramp-up: Lower economies of scale from Media Luna during the ramp-up period are projected to temporarily impact all-in sustaining costs by approximately $50 per oz AuEq, with costs expected to improve as underground mining rates at Media Luna reach the designed 7,500 tpd by mid-2026.

The wider guided range relative to previous years reflects the first year of production from Media Luna, as well as the potential for continued strength in underlying metal prices, which can also have an impact on AuEq production and therefore all-in sustaining costs, depending on the price performance of Cu and Ag relative to Au. Corporate G&A (general and administrative) (normalized for marked-to-market adjustments for stock-based compensation) and reclamation and remediation costs are expected to be similar to the levels incurred in 2024.

All-in sustaining costs are expected to be the highest during the first half of the year, before declining sequentially through the third and fourth quarters as production increases and economies of scale are gained as Media Luna ramps up. As such, quarterly all-in sustaining costs are expected to be above the upper end of the range during the first half of the year before declining toward the lower end of the range by year-end. Further cost improvements are expected in 2026 and 2027 as annual production increases to over 450,000 oz AuEq, Media Luna reaches steady state and efficiencies are gained.

2025 capital expenditure guidance

Total capital expenditures in 2025 are guided at $175-million to $195-million, significantly lower than the $495-million to $530-million guided in 2024. The lower spend year over year reflects the completion of the Media Luna project in the first quarter.

Sustaining capital expenditures are guided at $85-million to $95-million in 2025, compared with $55-million to $65-million in 2024. The increase relative to 2024 reflects spend associated with Media Luna. Sustaining capital expenditures also include $20-million in equipment leases, mostly related to Media Luna, as well as approximately $14-million allocated to drilling.

Total non-sustaining capital expenditures are guided at $90-million to $100-million in 2025, significantly lower than the $440-million to $465-million guided in 2024, given the completion of Media Luna. Approximately $30-million to $35-million of expenditures are earmarked for EPO, for which underground development off the Guajes tunnel is expected to commence midyear. As part of the EPO program, a $5-million exploration drift off South Portal Upper will be driven to the north. This drift will allow for more efficient and cost-effective drilling from underground, provide access to the upper portion of the deposit and potentially provide access to the northern extension of EPO. The remainder of non-sustaining capital expenditures are related to the completion of Media Luna (primarily during the precommercial period), as well as approximately $5-million allocated to drilling.

2025 drilling and exploration plans

Torex plans to invest approximately $45-million in drilling and exploration in 2025. In total, 124,500 metres (m) of drilling is planned during the year, with the goal of increasing reserves and resources to maintain annual production of at least 450,000 oz AuEq beyond 2030. Of the planned drilling metres, approximately 30 per cent is planned at targets for which no mineral resource has yet been established including Media Luna West, Media Luna East, Todos Santos, El Naranjo and Atzcala.

While the primary focus of the 2025 program is on increasing resources and growing reserves from existing deposits, a greater portion of the overall budget will be focused on testing high-priority targets within the Media Luna cluster, as well as the broader Morelos property:

• Media Luna cluster: $26-million is earmarked for drilling at the Media Luna cluster (66,500 m):
  • EPO (27,000 m) will remain the key focus in 2025 as the company looks to expand mineral resources to the north and upgrade mineral resources with the aim of bringing into mineral reserves.
  • Media Luna (14,500 m) will see an increased focus in 2025, with stepout drilling targeting to expand mineral resources and infill drilling targeting to replace mined reserves.
  • Drilling at Media Luna West (10,000 m) will continue with the goal of establishing an initial inferred resource by year-end. An inaugural program at Media Luna East (10,000 m) will commence in the second half of the year following the successful negotiation of a land access agreement with the local Ejido.
  • The inaugural drill program at Todos Santos (5,000 m) will carry over to 2025 following a slower start than anticipated in 2024.
• ELG underground: Approximately $12-million of expenditures are anticipated at ELG underground (48,000 m) in 2025, with the focus remaining on expanding resources and growing reserves.
• Morelos district: Approximately $7 million is allocated to conduct near-mine and regional exploration and drilling (10,000 m). The main areas of focus of the 2025 regional program will be drill testing a cluster of mineralization at El Naranjo (5,000 m), as well as testing several targets in the Atzcala corridor (5,000 m). Target definition work will also continue across the broader Morelos property.

Five-year production outlook (2025 to 2029)

The company's multiyear outlook has been updated for the lower guided AuEq production in 2025, reflecting the previously announced deferral of the four-week processing plant shutdown to early 2025 from late 2024. In addition, annual guidance for 2026 has been upwardly revised from 425,000 to 475,000 oz AuEq to 450,000 to 500,000 oz AuEq, reflecting the expectation that Media Luna will achieve the designed mining rate of 7,500 tpd six months ahead of schedule. The multiyear outlook now also includes the inaugural AuEq production estimate for 2029.

With the ramp-up of Media Luna and start-up of EPO expected in late 2026, Torex is well positioned to maintain annual AuEq payable production of at least 450,000 oz through 2030 based on current mineral reserves. The current outlook is consistent with the disclosure provided with the release of the internal prefeasibility study results on the EPO deposit in September, 2024.

A breakdown of the company's mineral reserves and resources as at Dec. 31, 2023, can be found in the news release dated March 26, 2024, titled, "Torex Gold Reports Year-End 2023 Reserves & Resources." A breakdown of the inaugural mineral reserve estimate for EPO can be found in the news release dated Sept. 4, 2024, titled, "Torex Gold Integrates EPO Deposit into Morelos Mine Plan." Both news releases can be found on the company's website.

Cash flow seasonality

Cash flow seasonality will be more pronounced during 2025 given anticipation of lower production during the first quarter and working capital builds related to selling precious metal rich Cu concentrate, given the need to build adequate levels of inventory prior to initial revenue recognition.

Similar to prior years, cash flow during the first quarter will be impacted by the payment of the 7.5-per-cent Mexican mining royalty (accrued throughout the year and paid out the following March) and corporate income tax true-up at year-end, which, given profitability in 2024, is expected to be higher than previous years. Taxes paid will be reflected in net cash generated from operating activities before changes in non-cash working capital. During the second quarter, net cash generated from operating activities will be impacted by the employee profit-sharing payment (PTU), which is accrued throughout the year and paid out in full in May of the following year.

Sensitivities of key performance metrics to commodity prices and currency

Table 5 provides a high-level sensitivity on key metrics (AuEq production, all-in sustaining costs and cash flow) to changes in metal price assumptions (Au and Cu), as well as movements in the Mexican peso (MXN) relative to the U.S. dollar (USD).

The midpoint of cost guidance for 2025 assumes an average Mexican-peso-to-U.S.-dollar rate of 20:1 for the full year. The company currently has hedges (a mix of collars and forwards) in place to cover off $144-million of Mexican-peso-related operating costs in 2025, with $100-million hedged through zero-cost collars (average floor of 19.7 and cap of 21.6), with the remaining hedges placed as forward contracts at an average rate of 21.0. Realized gains/losses will be included in the calculation of all-in sustaining costs.

In addition, given the transitional and ramp-up nature of 2025, the company recently took advantage of attractive pricing to purchase put options covering 155,000 oz of Au production in 2025 with a strike price of $2,500 per oz. The puts provide downside price protection while providing full exposure to upward movements in the price of Au.

About Torex Gold Resources Inc.

Torex is an intermediate gold producer based in Canada, engaged in the exploration, development and operation of its 100-per-cent-owned Morelos property, an area of 29,000 hectares in the highly prospective Guerrero gold belt, located 180 kilometres southwest of Mexico City. The company's principal asset is the Morelos complex, which includes the El Limon Guajes (ELG) mine complex, the Media Luna project, a processing plant and related infrastructure. Commercial production from the Morelos complex commenced on April 1, 2016, and an updated technical report for the Morelos complex was released in March, 2022. Torex's key strategic objectives are: integrate and optimize the Morelos property; deliver Media Luna to full production; grow reserves and resources; disciplined growth and capital allocation; retain and attract best industry talent; and build on ESG (environmental, social and governance) excellence.

Qualified person

The technical and scientific information in this news release, with respect to the company's mine production and payable metal production, including without limitation, the 2025 production guidance and the five-year production outlook, has been reviewed and approved by Richard Jundis, P Eng, principal mining engineer, technical services and capital projects, of the company, and a qualified person under National Instrument 43-101.

Cautionary notes

Non-GAAP (generally accepted accounting principles) financial performance measures

All-in sustaining costs per ounce of gold equivalent sold (AISC), sustaining capital expenditures and non-sustaining capital expenditures are financial performance measures with no standard meaning under GAAP and might not be comparable with similar financial measures disclosed by other issuers. The most directly comparable financial measure that is disclosed in the primary financial statements of the company to which AISC relates is production costs and royalties. The most directly comparable financial measure that is disclosed in the primary financial statements of the company to which sustaining capital expenditures and non-sustaining capital expenditures relates is additions to property, plant and equipment. Please refer to the non-GAAP financial measures section in the company's management's discussion and analysis (MD&A) for the quarter ended Sept. 30, 2024, dated Nov. 5, 2024, available on SEDAR+, for further information with respect to AISC, sustaining capital expenditures and non-sustaining capital expenditures, and a detailed reconciliation of these non-GAAP financial performance measures with the most directly comparable measure under IFRS (international financial reporting standards). The MD&A information is incorporated by reference into this news release.

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