The deposit was segregated into multiple estimation domains based on geologic models for each of the mineralized veins and the Salinas and Mita host lithologies, including sinter units. The mineral resource was estimated using ordinary kriging interpolation for the continuous vein domains and the Salinas and Mita host units. Mine planning and scheduling were engineered to feed 4.0 Mt per year of mill feed to the process plant at an average strip ratio of 2.7 and an average LOM cost of $2.53/t mined.

A total of 53.9 Mt of mill feed averaging 1.6 g/t gold and 7.3 g/t silver (1.7 g/t Au Eq.), will be processed over the LOM from the pit area. Mill feed will be trucked to a primary crusher located to the east of the pit. Waste totalling 145.4 Mt will be placed in a waste storage facility.

Open-pit mining dilution has been estimated with a dilution skin of 0.5 meters resulting in 6.7% dilution at a grade of 0.2 g/t gold and 2.3 g/t silver. A pit stability study was undertaken to determine the pit slope design parameters, including inter-ramp angles ranging from 42° to 56° and 10-meter benches. The Feasibility Study outlines an average production profile of 197,000 ounces of gold over the 14-year mine life with a peak production profile of 347,000 ounces of gold per year.

Mining will occur over a 10-year period with an additional 4 years of production from stockpiled ore. Mill feed grade averages 2.0 g/t gold over the first 10 years. The Feasibility Study contemplates a 25-month capital development and construction timeline that includes a 5-month commissioning period.

Total initial capital cost during this period is estimated at $572 million with LOM capital estimated at $750 million including closure costs. The Feasibility Study provides a blueprint for development and will provide a basis for project financing. The CAPEX and OPEX are established from first principles to reflect a self-perform construction strategy.

Contingency has been applied to the estimate on an area and discipline basis, variances ranged from -5% to +35% depending on the area and level of quotation and then applying a Monte Carlo simulation analysis. The development of the Project is expected to provide substantial economic benefits to Guatemala, both locally and at a national level. Cerro Blanco will be one of the largest foreign direct investments in the county since the Covid-19 pandemic (the "Pandemic") and will be a meaningful contributor to gross domestic product.

Some of the direct benefits are listed below: It is estimated that during production the mine will contribute about $160 million annually and approximately $1.8 billion over the LOM to the Guatemalan economy through direct employee wages, consumables, taxes, and royalties. In taxes and royalties alone, the Project is anticipated to generate payments to the Government of approximately $300 million over the LOM. During construction, direct employment including employees of the Company and contractors is estimated to peak at approximately 1,100 persons.

During operations, direct employment including employees of the Company and contractors is estimated to range between 400 and 500 persons. The Project will generate an additional several thousand indirect jobs to support the mine operations. It is expected that the Project will improve local and regional infrastructure through the development of a new access road and bridge.

In addition to the continuation of existing community investment programs and small business development, economic diversification activities to attract and grow other industries near the Project will be advanced in parallel. The Company intends to continue with an ambitious work plan to advance Cerro Blanco to production, key activities in 2022 include: Commencing detailed engineering and design activities. Initiating construction of the bridge and powerline.

Further advancement of project readiness and training initiatives in preparation of Early Works. Advancement of project financing activities. Receipt of the Project permit amendment.

The next phase for the Cerro Blanco Project is Detailed Engineering and an Early Works program. The Early Works program will prepare key infrastructure and facilities to support the commencement of the Project development phase which is set for early 2023. The technical team will focus on advancing engineering in order to prepare procurement and other activities to support an efficient project start-up and mitigate risks of increasing lead times and variable international logistics.

Early Works are planned to start in the fourth quarter of 2022.