Peruvian Metals Corp. (Peruvian Metals or the Company) provided an update on the mineral processing at its 80% owned Aguila Norte Processing Plant (Aguila Norte or the Plant) located in Northern Peru and progress at its 50% owned Palta Dorada Au-Ag-Cu property (Palta Dorada) that it shares with Rio Silver Inc. During the months of January and February 2023, the Plant completed five mineral campaigns processing a total of 4442 metric tonnes (mt). This year's two-month production level is comparable to the first two months of 2022 (4698 mt).

The Plant continues to produce high quality concentrates and is achieving excellent recoveries by producing 939 mt of zinc concentrate and 271 mt of lead-silver concentrate in the first two months of 2023 resulting in an impressive 3.6 to 1 mineral to concentrate ratio. The Company announced that it has started stockpiling gold-silver-copper rich material taken from Palta Dorada's main workings. Three random grab samples were recently taken from the stockpiles and assayed.

The average grade of the samples was 7.55 grams Au/mt, 6.07 ounces Ag/mt and 0.70% Cu. Two samples were also taken from the sulphide bearing quartz vein in the main adit where the material is currently being extracted. Assay results over a 1 metre width averaged 14.07 grams Au/mt, 9.01 ounces Ag/mt and 2.01% Cu.

In addition, two samples were taken from the oxide zone above the main workings and averaged 12.5 grams Au/mt, 7.89 ounces Ag/mt and 0.20% Cu. The Company is continuing to open the workings to access the sulphide Cu-Au-Ag material for the collection of a bulk sample. The material will be processed at the Company's Aguila Norte Plant.

The Company plans to ship the sulphide material to the Plant once it is determined that sufficient mineral has been accumulated to create a high-quality concentrate. The Company expects to process this material during the second quarter of 2023. Any accumulated oxide gold material extracted will be sold to third party mills designed to treat the oxide material.