Tarachi Gold Corp. announced Following the completion of Magistral's PEA outlining a potential project scenario with potentially attractive economics and the closing of a recent financing (press release dated March 11, 2022), Tarachi is well positioned to continue with Magistral's development in 2022 with the goal of producing gold at Magistral in Second Quarter of 2023. Sample material composites from the Company's 2021 tailings drilling program are being prepared for shipment to SGS's laboratory in Lakefield, Ontario, where they will undergo final test work in support of the design and engineering of the SART (sulphidation, acidification, recycling and thickening) circuit that is planned for installation at Magistral.

The SART circuit will be installed to manage the presence of cyanide-soluble copper in the tailings material by pulling the copper out of the pregnant leach solution stream and generating a high-grade copper concentrate by-product. Additional test work is being conducted for cyanide destruction and thickening at Base Metallurgical Laboratories Ltd. ("BaseMet") in Kamloops, B.C. The test work is estimated to take ten weeks to complete with a final report expected in early June 2022. The remainder of June and July are scheduled for final project design and detailed engineering.

Ausenco Engineering Canada Inc. ("Ausenco") has been engaged to oversee the final metallurgical test work. Environmental, social, and hydrogeological baseline studies were completed in 2021 and early 2022 with final report writing and translation to English currently underway. The results of these studies will support Tarachi's applications to update and amend the existing operating permits for the Magistral mill and tailings storage facility later this year.

Tarachi has signed a proposal by Ausenco to provide Engineering, Procurement, and Construction Management services for certain components of Magistral's development over the next 12 months. The Ausenco EPCM services will cover the SART circuit and associated equipment, integration of the SART circuit into the existing processing facility as well as the refurbishment of the existing processing facility in preparation for feeding tailings material. The EPCM services will cover up to dry and wet commissioning of the processing facility.

Tarachi and Ausenco plan to formalize a contract for the EPCM services in the coming weeks. The Company's existing team and contractors in Mexico will be responsible for the modification and improvements planned for the tailings storage facility ("TSF"), build out of the refinery and gold room, on-site laboratory, site preparation, water and power supply, and other on-site infrastructure.