Update For The Week Ending Sunday November 27, 2022

The week was characterized by the completion of three (3) holes (S012, S013 and S014) and a few drill moves. We managed to maintain a kilometer of core production (1,003m). Drilling was campaigned at four locations, now all at South Zone - S012, S013, S014, S015, S016 and S017.

As the 2021-2022 drilling program moves into its final phase, we are in the process of mobilizing a drill rig (Major Drilling’s) that is capable of drilling very shallow dipping to flat holes, to the south-west side of the Gradeshell where we do not have good access for angled holes.  We are targeting the expansion of the shallow seated mineralized zone on the hanging wall in this newly identified area.  Drilling will commence by mid-December with a view to being well established for continuation in the early New Year.

Above: With our small core staining facility operating in production mode, current and past/historical drill core is being stained to normalize rock classification and alteration classification toward a geological model: here cut core from hole S015 at 68.8m downhole shows stained potassic feldspar in a zone of Potassic Alteration – the rock being an intrusive Quartz Monzonite by composition.

The South Zone drill program will continue through to the Christmas break shutdown.

Some 1,026 samples (including duplicates and standards) were shipped from Ranchito to the assay lab during the week, including samples from drill holes N043, S011, S012, S013 and S014.

Geological modeling of the North Zone is now migrating to the ratification stage with the involvement and increasing oversight of external and independent consultants.  Some re-logging of historical and early drill holes is being directed so as to ensure a fit-for-purpose model of North Zone is prepared on schedule.

Above: Core staining facility, located at the north-end of the core storage facility – external and internal (fumehood).

Above: Hydrothermal Breccia intersected in hole S018 at 55m down-hole – an assemblage of chalcopyrite – pyrite – molybdenite along with tourmaline observed.

Below: Pervasive Potassic Alteration in Hole S018 at 65 downhole at 65m down-hole. Veinlets of chalcopyrite – quartz – pyrite related to fine biotite and chlorite.

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These historical resource estimate models are based upon historical resource estimates prepared by John Thornton in 2011. While, in the opinion of Dane A. Bridge, author of the revised NI 43-101 standard technical report, Geology, Mineralization and Exploration of the Santo Tomas Cu-(Mo-Au-Ag) Porphyry Deposit, Sinaloa, Mexico dated April 21, 2020 (the “Report”), reliable estimation practices were used, in order to upgrade or verify the historical estimations, resampling and assay of historical drill samples, twinning of historical drill holes, and a new program of regularly spaced drilling is required. No qualified person has undertaken sufficient work to classify the current mineral resources or mineral reserves upon which these models are based and the Company is not treating the estimates as current estimates of the mineral resources. The Company gives no assurance that either these models or the historical resource estimates upon which they are based are accurate, and does not undertake any obligation to update the models or to release publicly any update or revisions of the resource estimates except as required by applicable securities law. The reader is cautioned not to rely upon these models or the historical resource estimates upon which they are based.

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