Filo Mining Reports Updated Mineral Resource Estimate for the Filo del Sol Project

Commenting on today’s news release, Adam Lundin, President and CEO of Filo Mining remarked, “The 2017/18 drill program at Filo del Sol proved very successful, and as a result the Company confirms increased tonnage and contained metal in the Indicated Resource category. The resource conversion from Inferred to Indicated for all metals is significant, is in line with expectations and again illustrates just how exciting the Filo del Sol project is. Supported with this updated estimate, I am confident that the Company will meet the targeted release of aprefeasibility study in Q1 2019.”

Highlights (see Table 1 for resource details):

• Significant Increase in Indicated resource tonnes and contained metals:
  • Total indicated resource tonnes increased by 14% to 425.1 million tonnes;
  • Total indicated contained gold in all zones increased by 12% to 4.4 million ounces
  • Total indicated contained copper in all zones increased by 12% to 3.1 billion pounds
  • Total indicated contained silver in all zones increased by 34% to 147 million ounces
• The resource is comprised of four distinct mineral zones based on metallurgy and mineralogy. The first three zones are amenable to leach processing and are listed below in order of increasing depth below surface:
  • The gold oxide zone (AuOx) contains 679 thousand ounces of gold Indicated plus 226 thousand ounces of gold Inferred at a 0.20 g/t Au cutoff.
  • The copper-gold oxide (CuAuOx) zone contains 2.2 billion pounds of copper and 2.4 million ounces of gold Indicated plus 0.5 billion pounds of copper and 735 thousand ounces of gold Inferred at a 0.15% CuEq cutoff.
  • The silver zone (Ag) contains 114 million ounces of silver Indicated plus 22 million ounces of silver Inferred at a 20 g/t Ag cutoff.
  • These three zones are underlain by a copper-gold sulphide zone (Sulphide), which has not been tested metallurgically yet but based on the mineralogical characteristics is likely to be able to be processed by flotation to produce a concentrate.
  • It is important to note that there are significant zones of higher grade material within the broader resource envelope shown in Table 1 – these can be seen at the higher cut-off grades shown in Tables 2-5.
• Favourable topography for open pit mining methods.
• High proportion of resource in the Indicated category. Seventy-one percent of the total updated resource is now Indicated. The proportion of the resource classified as indicated varies between zones and cutoff grades. At the base-case cutoff grades, 71% of the AuOx zone, 78% of the CuAuOx zone and 82% of the Ag zone are classified as indicated.
• Exploration Upside. The resource remains open for expansion in several directions and at depth. To date only 3 kilometres of the approximately 7 kilometre long strike length of the Filo alteration zone has been drill tested. All holes drilled into the deposit, including the deepest holes at 500 metres long, end in mineralization and the potential for porphyry copper-gold mineralization at depth and lateral to the deposit is considered excellent.

The resource estimate presented in Table 1 represents the total Indicated and Inferred Mineral Resource, divided between the four mineral zones. Each of these zones was reported at a different cutoff grade, based on expectations of the most important metal or metals in each zone. Base-case cutoff grades are shown in Table 1 and each zone is reported at a range of cutoff grades in Tables 2-5 below. These four discreet mineralized zones have been aggregated to derive the total mineral resource.

This new resource estimate updates and replaces the resource estimate released on August 21, 2017 and is based on a total of 44,600 metres of drilling in 188 holes including an additional 6,390 metres of reverse circulation drilling in 33 new holes and 2,533 metres of diamond drilling in 12 new holes from the drill program completed in March 2018.

This resource update will form the basis for a Pre-Feasibility Study (“PFS”) which is currently underway. Details of the methodology used to develop the resource will be included in the National Instrument 43-101 Technical Report describing the results of the PFS which is expected to be completed in Q1 2019. The PFS will continue on from the PEA in studying a leach-only operation, and so will evaluate only the AuOx, CuAuOx and Ag zones.

The Mineral Resource estimate as of the effective date of June 11, 2018 is shown in the tables below:

Table 1: Total Resource