Ms. Jody Kuzenko reports

TOREX GOLD PROVIDES Q4 2024 UPDATE ON MEDIA LUNA PROJECT

Torex Gold Resources Inc. has provided a fourth quarter 2024 update on the development of its Media Luna project. Unless otherwise stated, progress and milestones referenced in this press release are as of Dec. 31, 2024. (All amounts are expressed in U.S. dollars unless otherwise stated.)

Jody Kuzenko, president and chief executive officer of Torex, stated:

"The Media Luna project is now in its final months, sitting at 94 per cent complete as of the end of 2024. We are well on track to complete the project and produce first copper concentrate by the end of Q1 2025, with engineering concluded, procurement substantially complete, underground development tracking well ahead of schedule and surface construction advancing per plan.

"The tie-ins at the processing plant are on track to commence towards the end of February, with all major deliveries required to support the tie-in period now on site. In Q4, teams were able to take advantage of a planned maintenance period at the process plant and conducted initial synchronization and testing of the variable frequency drives for the ball mill, which we expect will streamline and derisk the installation process and support efficient commissioning in March.

"Average monthly underground lateral development rates remained ahead of budget at 1,300 metres per month. Definition drilling is also well ahead of plan, with drilling for 2024 stopes completed ahead of schedule, most of the stopes planned to be mined in 2025 drilled off and drilling for 2026 under way. Our target is to have a minimum of one year of stope inventory on hand going forward. With an excellent head start on both definition drilling and underground development, which will further accelerate in 2025, we now expect to achieve the designed mining rate of 7,500 tonnes per day by mid-2026, six months ahead of the schedule set out in the technical report.

"In terms of project capital, Q1 2025 is expected to be the last quarter of material investment in Media Luna, and, with commercial production expected in early Q2 2025, we are well positioned to pivot back to positive free cash flow generation by midyear. The robust free cash flow anticipated from Morelos places Torex in a solid position to quickly repay the modest level of debt taken on to fund Media Luna, begin returning capital to shareholders, and support increased investment in our plans for continued growth at Morelos and beyond."

Capital expenditures

During fourth quarter 2024, approximately $100-million was spent on Media Luna, bringing the total annual spend to $449-million, within the updated guidance range of $430-million to $450-million. Expenditures in first quarter 2025 are expected to be lower than the quarterly spend in 2024 as the project winds down, first copper concentrate production begins and commercial production is declared shortly thereafter.

As a result of the previously announced rescheduling of the processing plant tie-ins to February (originally November, 2024), the precommercial period has been extended by approximately three months. As per full-year guidance, the company is expected to invest approximately $60-million of non-sustaining capital expenditures in 2025 at Media Luna primarily during the precommercial period. Of this amount, approximately half is related to underground development, which would have otherwise been categorized as sustaining in nature under the original November, 2024, tie-in schedule. This expenditure includes accelerated underground development with a view to achieving steady-state mining rates six months ahead of the schedule set out in the technical report. The rest of the forecast non-sustaining expenditures at Media Luna in 2025 primarily relate to finalization of surface construction activities, including the plant tie-in and paste plant construction.

Project completion

As at year-end, overall development of Media Luna was 94 per cent complete, up from 87 per cent at the start of the quarter. Engineering was concluded in third quarter 2024, with teams continuing to support in the field as necessary to address any installation issues. Procurement is substantially complete at 99 per cent, and underground and surface development/construction are advancing, with completion levels at 90 per cent and 85 per cent, respectively. The largest outstanding item in the category of surface construction is the paste plant, which is on schedule for construction completion and commissioning in early second quarter.

Progress on the project was halted by the eight-day temporary suspension of activities at Morelos in early December; as a result, the start of the four-week tie-in of the copper and iron sulphide flotation circuits, as well as the modifications to the processing plant, has shifted from early to late February. First concentrate production is expected at the end of first quarter, and the declaration of commercial production shortly thereafter.

Procurement

With procurement for the project 99 per cent complete as of the end of fourth quarter 2024, only minor deliveries remain outstanding, including automated valves, instrumentation and some underground pipe for the paste plant distribution system. All major deliveries to support the start-up of Media Luna operations are now on site.

Notable orders completed during Q4 included the remaining electrical houses for the processing plant, the backup generator for the 230-kilovolt switchyard, slurry pumps and carbon steel pipe.

Underground development and construction

Steady progress continued underground at Media Luna, with 90 per cent of project construction and development achieved as at year-end. Definition drilling for the stopes planned to be taken in the 2024 mine plan was completed well ahead of schedule, most of the drilling in the 2025 mine plan is now complete and definition drilling for the 2026 mine plan has commenced. The company is targeting to have one year of stope inventory on hand going forward.

Underground development rates continue to track ahead of plan, with monthly lateral development rates averaging 1,300 metres since July relative to the original budget of 1,200 metres, excluding the impact of the temporary suspension of activities at Morelos in December. With the significant progress made to date on both definition drilling and underground development, the company now expects mining rates at Media Luna to achieve the designed rate of 7,500 tonnes per day by mid-2026, six months ahead of the schedule set out in the technical report.

Construction and commissioning of rock breaker No. 1 are now complete. Installation of the fire suppression system for the Guajes conveyor commenced, as did installation of the 15-kilovolt electrical cables along the length of the tunnel. Teams also completed the installation of the first vertical pipe for the tailings line and have commenced work on the backup second line, all with a view to derisking paste plant commissioning.

Surface construction

Surface construction is now 85 per cent complete, up from 70 per cent at the start of the quarter. On the north side of the Balsas River, the switchgear and transformers for all three e-houses required for the flotation circuit were energized during the quarter. Importantly, initial synchronization and testing of the variable frequency drives for the ball mill were completed during December, with a view to derisking commissioning in February. At the flotation circuit, flotation cell gear reducers were installed, agitator shafts were aligned and compressors for dart valves are now in operation to allow for water testing of the primary flotation cells. Concrete has been poured on the truck scale at the copper loadout area, and construction of the Cu storage facility is progressing well with the roof system, tripper and transfer conveyors in place. Vertical grinding mills have been constructed and are ready for final vendor inspection.

Installation of power infrastructure is now substantially complete, with the low-voltage 115-kilovolt system fully energized and operational, and the transmission line between the 230-kilovolt switchyard and substation completed in the quarter. At the switchyard, crews continued to pull cable in the duct banks and trenches, and installed battery banks. Additionally, the transformer for the underground control room has been energized.

On the south side of the Balsas River, construction of the paste plant is advancing well. The elevated floor slab at the filter level has been poured allowing for preparation for the assembly of the main filter presses, and assembly and welding continue on the exterior tanks. Electrical panels are being mounted in the e-house. Steel erection sits at 66 per cent complete, with 1,336 tonnes out of 2,020 tonnes installed.

Operational readiness

In parallel with development and construction activities, the surface and underground operational readiness plan continues to progress. The operational readiness team continues to develop and advance standard operating and maintenance procedures for the new assets, and is tracking to plan at over 77 per cent complete. Central to the operational readiness plan is the work force transition, with a view to ensuring the labour and staff personnel required to operate Media Luna and the modified process plant is in place and trained as appropriate. At the end of 2024, 83 per cent of the total planned work force at Media Luna was in place, which involved the recruitment of 136 people and the transfer of 197 employees over the course of the year. The work ahead is to finalize the work force transition through local, regional and national recruitment and continued transfer of employees from the open-pit operations to the Media Luna underground mine.

Negotiations with the various haulage companies for Cu concentrate transport to port distribution facilities are complete, and contracts executed. The company is also in the final stages of executing contracts for the sale of Cu concentrate to a mix of traders and smelters. Metal payables are in line with those which were incorporated into the most recent technical report dated effective March 16, 2022, and filed on March 31, 2022.

Project execution plan

Based on progress made to date and a detailed review of both the surface and underground schedules completed late in the quarter, modest updates have been made to the overall project schedule after incorporating the impact of the temporary suspension of activities at Morelos in early December.

More detail on the Media Luna project, including the feasibility study results, can be found in the technical report.

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 El Limon Guajes mine complex, the Media Luna project, the EPO 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: deliver Media Luna to full production and build EPO; optimize Morelos production and costs; increase reserves and resources; reach disciplined growth and allocate capital; retain and attract best industry talent; and be an industry leader in responsible mining.

Qualified person

The technical and scientific information in this press release has been reviewed and approved by Dave Stefanuto, PEng, executive vice-president, technical services and capital projects, of the company, and a qualified person under National Instrument 43-101.

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