Argentinian Mines S.A. cleans up its financial situation, restarts explorations in Gualcamayo and advances with the Deep Carbonates Project

Argentinian Mines S.A. (hereinafter "MASA"), a subsidiary of Eris LLC, owner of the Gualcamayo mining deposit, located in the north of the San Juan province, reports that it has recently finalized its financial statements for the fiscal year 2023. The report shows significant advances in the financial cleanup of the company as evidenced by its liquidity and solvency ratios, which have improved substantially compared to previous years thanks to the injection of funds made by the current owners. As a result, for the first time in several years, the company closed its balance with positive Net Equity. Additionally, the enhancement of its main mining project (Deep Carbonates or DCP, in its English acronym), resource certification, and the resumption of exploratory drilling activities are highlighted in parallel.

Argentinian Mines was acquired last September by Eris LLC and, since then, has begun an intensive process to regularize its economic, productive, and financial situation. After suspending the mine closure plan presented in June of last year, progress has been made in the cancellation of tax debts and the regularization of commitments with its suppliers.

The balance sheet, audited by Price, Waterhouse & Co. SRL, one of the four largest and most prestigious consulting firms in the world, shows significant advances in financial matters, mainly due to the capitalization of existing debts from previous years, the capital investment made by the new shareholders, which amounts to around USD 30 million, coupled with the revaluation of its assets, fundamentally of the Deep Carbonates Project, based on the new owners' decision to advance in its exploration and subsequent development.

During the fiscal year 2023, Gualcamayo achieved a production of 40,544.58 ounces of gold and 12,978.51 ounces of silver. It is important to highlight that these production levels also allowed the generation of resources for the Provincial State, contributed by the mine located in Jáchal, among which are: $582,088,526.90 in royalties and $289,080,911.20 contributed to the Infrastructure Trust Fund.

Regarding the contribution of resources to the National State, notable payments include export rights of $1,659,219,911.37, import rights of $1,789,053,215.86, the tax on debits and credits of $300,302,812.63 and the PAIS tax of $32,606,706.91.

Currently, with the available data from the DCP, both geological, metallurgical, and economic, a total of 1.56 million ounces of gold (15.55 million tons with a grade of 3.09 g/t Au) have been converted into reserves (probable and proven), which would allow for the design of a production plan to be developed over 15 to 17 years, at an average rate of 100 to 105 thousand ounces of gold per year. The investment plan entails a disbursement of approximately USD 320 million. Currently, exploratory drilling is being restarted to expand the mineral resource that is open in several directions and in depth, while advancing and detailing technical prefeasibility work.

It is planned that by the end of this month, surface drilling will resume and soon continue developing underground ramp(s) to proceed with drilling in DCP. All underground mine facilities at Gualcamayo serve and will serve as access to this project, therefore, they are maintained in good condition.

An important milestone was the declaration of reserves of the DCP Project that arise from a report in accordance with the NI 43-101 standard, conducted by an external QP (Qualified Professional) during December 2023.

A plan for investments is also being developed to increase the recovery of ounces existing in the current leaching pile. Preliminary reports indicate a remaining inventory of about 1 (one) million ounces of gold in the pile, and more detailed studies, under NI 43-101 standard, have determined that approximately 20-25% would be recoverable through the implementation of a secondary recovery scheme that would involve reshaping of slopes and modifications to existing irrigation models. Today, the productive activity of the deposit is focused on work in the piles, following the temporary cessation and care and maintenance of mining activities both in surface and underground deposits.

This balance summarizes the financial year of MASA for all of 2023, but the results mentioned above are fundamentally the consequence of actions taken following the change of ownership of the company, which occurred last September. The decision, the new business approach, and the investment provided by Eris LLC enabled the cleanup of the company and progress on the development of the Deep Carbonates Project and several other exploratory prospects that exist in the mining property of Argentinian Mines S.A.

Argentinian Mines thanks the support of its current and past employees, their effort and dedication. That of its contractors, for their support and companionship. To the provincial authorities, who have allowed the suspension and withdrawal of the scheduled closure, supporting new work and providing new perspectives to different projects. To the community and municipal authorities, with whom the commitment to continue working for sustainable development for many more years is upheld.