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Guajes

A key pillar of the Torex strategy moving forward includes a fresh focus on exploration and we are pleased with the results from the 2021 drill program at the ELG Underground. Infill drilling guajes under the first phase of the 2021 program reinforces our positive outlook on the ability to extend the mine life of the ELG Underground beyond current reserves and complement future production from Media Luna, which remains on track to begin in Q1 2024.

The 2021 ELG Underground drill program is divided into two phases. The first phase, for which final assays are still being received, was focused on upgrading Inferred mineral resources to the Measured and Indicated categories with a view to extending the mine life of the ELG Underground. The second phase, which commenced this summer, is focused on step-out drilling to grow the overall resource base. 830 tonnes per day originally anticipated from the Sub-Sill deposit. Based on the drill results seen to date, we believe we are well positioned to unlock further value from the ELG Underground. Key highlights from the 2021 ELG underground drill program are outlined in Table 1. Interval lengths for holes dipping between -45 to -90º have been selected to represent a minimum mining height of 3.

Interval lengths for holes dipping between 0 and -45º have been selected to represent a minimum horizontal length of 3. To date, the Company has drilled and received assay results for 69 drill holes associated with the 2021 program representing approximately 14,200 m of drilling. Infill drilling at Sub-Sill has ramped up through the back half of the year. Assay results received to date have been positive and increase our confidence in extending reserves within ELD. Step-out drilling completed to date has been focused on a previously identified area of mineralization below the El Limón Sur open pit, approximately 300 m southwest of Sub-Sill. Further study is required to understand the geology and underlying potential of this area. Exploration drilling at the ELG Underground is expected to remain a key focus for Torex as the Company looks to test the lateral and vertical extents of both Sub-Sill and ELD.

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