Mr. Mark Child reports

CONDOR RECEIVES PERMIT FOR HIGH-GRADE MESTIZA OPEN PIT, INCREASING TOTAL PERMITTED OPEN PIT MINERAL RESOURCES TO OVER 1 MILLION OZ GOLD

Condor Gold PLC has been granted an environmental permit for the development and exploitation of gold from the high-grade Mestiza open pit. The Mestiza open pit hosts 92,000 tonnes (kt) at a grade of 12.1 grams per tonne gold (36,000 ounces contained gold) in the indicated mineral resource category and 341 kt at a grade of 7.7 g/t gold (85,000 ounces contained gold) in the inferred mineral resource category. The Mestiza open pit complements the already permitted La India open pit, which hosts 8,377 kt at a grade of 3.1 g/t gold (837,000 ounces contained gold) in the indicated mineral resource category and 883 kt at grade of 2.4 g/t gold (68,000 ounces contained gold) in the inferred mineral resource category. La India open pit has a robust, economically viable prefeasibility study (PFS) with mineral reserves of 6.9 million tonnes (mt) at 3.0 g/t for 675,000 ounces gold. Following the permitting of the Mestiza open pit Condor has just over one million ounces of gold in open-pit mineral resources permitted for extraction inclusive of a mineral reserve of 6.9 mt at 3.0 g/t gold for 675,000 ounces gold.

Highlights:

• One million ounces of gold in open-pit mineral resources, including mineral reserves permitted for production;
• The permitted La India open pit, which hosts 8,377 kt at a grade of 3.1 g/t gold (837,000 ounces contained gold) in the indicated mineral resource category and 883 kt at grade of 2.4 g/t gold (68,000 ounces contained gold) in the inferred mineral resource category;
• The permitted Mestiza open pit hosts 92 kt at a grade of 12.1 g/t gold (36,000 ounces contained gold) in the indicated mineral resource category and 341 kt at a grade of 7.7 g/t gold (85,000 ounces contained gold) in the inferred mineral resource category;
• Mestiza open pit permitted to deliver robust diluted tonnage of 600 kt at 5.76 g/t gold for 111,100 ounces gold;
• The permitted high-grade Mestiza open pit adds flexibility to the mine schedule, potentially improving project economics and extending the life of mine.

Mark Child, chairman and chief executive officer, commented: "It is a significant development, after a 15-month process, that Condor has been granted the key environmental permit to develop and exploit gold from the high-grade Mestiza open pit. When added to the high-grade La India open pit, Condor has just over one-million-ounce-gold open-pit mineral resources, including mineral reserves permitted for extraction. Condor also has the permit to construct and develop a processing plant with capacity of up to 2,800 tpd at La India project. The permitted high-grade Mestiza open pit adds flexibility to the mine schedule, potentially improving project economics and extending the life of mine."

Background

La India project, Nicaragua, contains a mineral resource of 9,850 kt at 3.6 g/t gold for 1.14 million ounces of gold in the indicated category and 8,479 kt at 4.3 g/t gold for 1,179,000 ounces of gold in the inferred category (see news release dated Jan. 28, 2019). Condor's focus has been on developing the open-pit mineral resources, which are inclusive of a mineral reserve of 6.9 mt at 3.0 g/t gold for 675,000 ounces of gold, into production.

Condor has been granted an environmental permit to construct and operate a processing plant with capacity of up to 2,800 tonnes per day (tpd) and develop the associated mine site infrastructure for a new mine at its La India project. The main permit is for development and extraction of ore from La India open pit, subject to certain conditions. Production from La India open pit is estimated to be between 80,000 to 100,000 ounces of gold per annum. On Jan. 22, 2020, Condor received a letter from the Ministry of Environment and Natural Resources (MARENA) detailing an extension, as provided for under the terms of the permit, to complete the conditions of the main permit by July 27, 2021 (see news release dated Jan. 28, 2020).

On Nov. 21, 2019, Condor submitted environmental and social impact assessments (ESIAs) to MARENA for the environmental permits for the development and extraction of contained gold from the America and Mestiza open pits. Each ESIA is over 600 pages in length, including the appendices, and summarizes 18 mining, environmental and social technical studies (see news release dated Nov. 22, 2019).

Significance of permitting the Mestiza open pit

The Mestiza open pit has double the gold grade of La India open pit. The Mestiza open pit is likely to be mined earlier to reduce the payback period on the plant and equipment and improve the internal rate of return. La India open pit has lower quartile industry all-in sustaining cash cost of $690 (U.S.) per ounce gold in the PFS, which used a gold price of $1,250 per ounce (see news release dated Nov. 14, 2014). A second permitted open pit adds flexibility to the mine schedule.

The diluted and modified mining model for the permitted Mestiza open pit, undertaken by SRK Consulting (U.K.) Ltd., reported a total diluted tonnage of 600 kt at 5.76 g/t gold for 111,100 ounces of gold within the $1,500-(U.S.)-per-ounce optimized pit shell used in the 2019 mineral resource estimate update. A cut-off grade of 0.75 g/t gold was used (see news release dated March 4, 2020).

The Mestiza open pit is located within easy trucking distance and less than four kilometres from the location of the permitted processing plant.

The permit granted by MARENA for the Mestiza open pit is for an initial eight-year period from the date notification is received by MARENA that production is due to commence and can be renewed for further periods. There are a number of conditions associated with the permit, ranging from the appointment of an environmental manager to adherence to environmental management programs as detailed in the ESIA. For example, priority is to be given to hiring local employees and a reforestation program will be instigated that plants 10 new trees for every tree cut down. Exploitation is required to commence within 18 months of the grant of the permit although this can be extended for a further two 18-month periods.

The diluted and modified mining model for the permitted La India open pit, undertaken internally by Condor, reports a total diluted tonnage of 7,284 kt at 2.80 g/t gold for 656,000 ounces of gold, excluding low-grade material. The total permitted mill feed for La India and Mestiza open pits is 7,884 kt at 3.03 g/t gold for 767,100 ounces of gold. Assuming a 92-per-cent metallurgical recovery, gold production is estimated to be 706,000 ounces of gold.

It should be noted that the company is running a number of mining studies ahead of a construction decision, which are part of continuing work being done by Condor to optimize the project; such studies are yet to be finalized and so do not replace the 2019 MRE or 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, both of which remain current.

Looking forward, it is anticipated that the America open pit will be permitted in the near future. Condor intends to complete the continuing mining dilution studies and pit optimization studies, which are under way, and incorporate the results of those studies in a mine production schedule. Ahead of production, Condor will complete infill drilling on the Mestiza open pit to convert the majority of mineralized material to the indicated mineral resource category.

About Condor Gold PLC

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 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. Condor Gold published a PFS on the La India project in December, 2014, as summarized in the technical report.

Qualified persons

The mineral resource estimate has been completed by Ben Parsons, a principal consultant (resource geology) with SRK Consulting (U.S.) Inc., who is a member of the Australian Institute of Mining and Metallurgy, MAusIMM (CP). Mr. Parsons has about 18 years experience in the exploration, definition and mining of precious and base metal mineral resources. Mr. Parsons 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, and to the type of activity that he is undertaking to qualify as a qualified person as defined under National Instrument 43-101 -- Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators and as required by the June, 2009, edition of the Alternative Investment Market Note for Mining and Oil and Gas Companies. Mr. Parsons consents to the inclusion in the announcement of the matters based on their information in the form and context in which it appears and confirms that this information is accurate and not false or misleading.

The mining dilution studies reported for the Mestiza and America deposits have been performed under the supervision of Dr. Tim Lucks, principal consultant (geology and project management), of SRK Consulting (U.K.) Ltd., who is a member of the Australian Institute of Mining and Metallurgy, MAusIMM (CP). Dr. Lucks is an independent qualified person as such term is defined in National Instrument 43-101. Dr. Lucks consents to the inclusion in the announcement of material that relates to the America and Mestiza dilution studies, in the form and context in which it appears 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 and is the chief technical officer of Condor Gold.

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 NI 43-101. The technical report was prepared by or under the supervision of Dr. Lucks, principal consultant (geology and project management), Gabor Bacsfalusi, principal consultant (mining), Mr. 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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