Minera Alamos Inc. provide an update on the continuing progress at the Company's Santana gold mine. The development of the Nicho Main Zone ("NMZ") is now underway with haulage and access roads largely completed along with the removal of limited vegetation and surface cover. Following the initiation of mining activities and as the pit working areas opens up, the much larger scale of the NMZ compared to the current starter pit at Nicho Norte will help drive project mining rates to planned levels for the overall commercial operation.

First mineralized material from the NMZ should be stacked on the Santana leach pad as operations move into the second half of the year and will help drive gold production rates higher. The Company has agreed to basic terms for a modest US$3 million unsecured working capital facility with Ocean Partners USA Inc. and definitive documentation is in the process of being finalized. The facility will bolster the Company's existing working capital and provide added financial flexibility to assist with short-term demands related to the expansion of site mining activities to incorporate production from both the Nicho Norte and NMZ open pits (cover lags between mining and the receipt of proceeds from ultimate gold recovery).

Company management have an existing relationship with OP and anticipate that the new facility will serve as a starting point that can grow in scale as the Santana project operations expand. Gold mined and stacked on the leach pad to date totals approximately 18,000 oz with roughly 7,000 oz of gold recovered in concentrate. Operations in May have been seasonally impacted from the severe and ongoing drought that has affected Sonora for much of the last two years.

Typical rainfall in the region from January to June is in the range of 120-150 mm. However, in 2021 this totalled 45 mm and in the current year less than 2 mm has accumulated to date forcing the Company to locate additional local sources of water to support operations. The upcoming rainy season (late June-September) is expected to recharge water reservoirs and allow for an acceleration of the recovery of gold stacked on the leach pads in Q3.

Following receipt of its explosives storage permit, the Company has now fully transitioned all production drilling and blasting activities "in-house". The added flexibility this has provided has been significant in terms of explosive purchase options as well as better utilization of existing mine contractor personnel for drilling and blasting operations. Overall, the changes implemented to date have allowed for a greater than 80% reduction in overall blasting costs while allowing the Company increased efficiency in scheduling the sequences between blasting and mining operations.

Efforts continue to further optimize blasting activities. The implementation of these improvements were critical prior to decisions related to the initiation of mining activities at the Nicho Main Zone. The Company's on-site lab should be complete and operational in the coming weeks in anticipation of first blasting at the NMZ.

The faster sample assay turnaround provided by these facilities is also a critical pre-requisite to maintaining effective mine and plant production controls as site mining activities continue to increase.