Mr. Mark Child reports

CONDOR GOLD PLC ANNOUNCES ADDITIONAL METALLURGICAL TEST RESULTS ON LA INDIA AND SATELLITE DEPOSITS

Condor Gold PLC has received the final results of metallurgical tests on La India, Mestiza and America deposits from SGS Laboratories, Lakefield, Ont.

Highlights

Condor Gold has been actively pursuing the addition of the open-pit portions of the America and Mestiza deposits (the satellite pits) to the existing planned and permitted production from the La India pit and has submitted environmental and social impact assessments applying for the environmental permit to develop and extract gold from the satellite pits (see news release dated Nov. 22, 2019).

During August of 2019, Condor assembled six new master composites from La India, America and Mestiza deposits for grindability and leaching tests. Additionally, four variability composites from La India were selected to refine the understanding of the power consumption and abrasion characteristics of the La India ores. This work was conducted by SGS Mineral Services (SGS) in Lakefield, Ont.

In summary, the results were:

• The new SGS results corroborate the initial findings on the abrasion, ball mill and SAG (semi-autogenous grinding) mill work indices as presented in the 2014 prefeasibility study (PFS) that was conducted by Inspectorate (subsequently acquired by Bureau Veritas). The SGS results, while slightly different than the 2014 PFS values, are within the same statistical range.
• Gold extraction from the La India samples confirm the results of the PFS study, demonstrating that the estimated average gold recovery of 91 per cent from the PFS remain valid for the La India deposit.
• Gold extraction from the America and Mestiza samples are similarly comparable with the original metallurgical results, and clearly show that the satellite pits will be amenable to treatment through the proposed CIL or CIP flowsheet.
• The abrasion/SAG mill/bond ball mill work indices suggest that the open-pit ores from America and Mestiza, while still hard, are not as hard or as abrasive as the La India ores.

Mark Child, chairman and chief executive of Condor Gold, commented: "The additional metallurgical tests include grinding and abrasion studies for the America and Mestiza satellite pits that were not included in the metallurgical tests, which formed part of the PFS on La India open pit. The studies are essential as we finalize the size of the processing plant ahead of a construction decision. Both satellite pit ores are less abrasive than the La India ore, which could be reflected in lower costs for wear materials when processing these ores.

"The most recent iteration of metallurgical studies represents the latest of Condor's efforts to expand the district-wide potential of our concession package, while further derisking the project. The consistent amenability of the district ores to the planned CIP processing plant lends further evidence that the project can achieve higher throughput for a longer period of time than has been considered in our previous studies."

Discussion -- grinding studies

The 2019 studies were conducted both as verification of the 2014 La India studies and to expand the understanding of the grinding characteristics of the satellite deposits at America and Mestiza. A table on the company's website provides a summary of the grinding and abrasion studies, along with a comparison to the 2014 PFS results.

Note that the original study was conducted by Inspectorate Laboratories in Vancouver, which has been acquired by Bureau Veritas.

Examination of the La India composites between 2014 and 2019 reveal results that are remarkably similar when considering a difference of five years and the use of two different laboratories. In both cases, the ore is shown to be very hard, with a bond ball mill work index (BWi) of 20 to 25 kilowatt-hours per tonne, and abrasion indices of 1.04 to 1.13. These values are considered to be very high relative to most projects. The abrasion index is an indication of wear material consumption, which is expected to be high for the La India project. It is noted that the process operating costs presented in the 2014 PFS considered these high abrasion values and corresponding high consumption of process wear materials.

The La India deposit SAG mill indices range from 33.8 to 51.2 for the La India deposit (higher numbers indicate more favourable characteristics in this index). These test results serve to validate the underlying milling assumptions for the La India deposit that were presented in the 2014 PFS.

Grinding and abrasion studies were not conducted on the America and Mestiza satellite deposits in 2014; however, the currently reported results indicate that both the America and Mestiza ores are less abrasive than the La India ore, which could be reflected in lower costs for wear materials when processing these ores.

Discussion -- leaching studies

Gold leaching tests were conducted on each of the 2019 test composites using the optimal process conditions that were established during the 2014 PFS metallurgical program. Another table on the company's website provides a summary of the leach test results that were obtained during the 2019 and 2014 test programs.

As with the grinding and abrasion studies, the 2019 leaching test results are not materially different than those presented in the 2014 PFS. Both indicate that 90-per-cent or better gold recovery is supportable for the La India deposit. Silver remains a relatively minor contributor to the value of the project, at approximately 1 per cent of the dollar value of total sales.

About Condor Gold PLC

Condor Gold was admitted to Alternative Investment Market in May, 2006, and dual listed on the Toronto Stock Exchange in January, 2018. The company is a gold exploration and development company with a focus on Nicaragua.

In August, 2018, the company announced that the Ministry of the Environment in Nicaragua had granted the company the environmental permit (EP) for the development, construction and operation of a processing plant with capacity to process up to 2,800 tonnes per day at its wholly owned La India gold project. The EP is considered to be the master permit for mining operations in Nicaragua.

Qualified persons

The technical review of the SGS metallurgical results has been conducted by Eric Olin, a principal consultant with SRK Consulting (U.S.) Inc., who is a registered member of SME and a qualified person as defined by National Instrument 43-101. Mr. Olin has over 40 years experience in extractive metallurgy including extensive experience with CIP (carbon in pulp) and CIL (carbon in leach) gold extraction plants. Mr. Olin is a full-time employee of SRK Consulting (U.S.) Inc., an independent consultancy, and has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration. Mr. Olin consents to the inclusion in the announcement of the matters based on their information in the form and context in which they appear and confirms that this information is accurate and not false or misleading.

The technical and scientific information in this press release has been reviewed, verified and approved by Gerald D. Crawford, PE, who is a qualified person as defined by NI 43-101.

Technical information

Certain disclosure contained in this news release of a scientific or technical nature has been summarized or extracted from the technical report entitled "Technical Report on the La India Gold Project, Nicaragua, December, 2014," dated Nov. 13, 2017, with an effective date of Dec. 21, 2014, prepared in accordance with National Instrument 43-101. The technical report was prepared by or under the supervision of Tim Lucks, principal consultant (geology and project management), Gabor Bacsfalusi, principal consultant (mining), Benjamin Parsons, principal consultant (resource geology), each of SRK Consulting (U.K.) Ltd., and Neil Lincoln of Lycopodium Minerals Canada Ltd., each of whom is an independent qualified person as defined by NI 43-101.

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