Bluestone Resources Inc. provided a corporate update on the Cerro Blanco gold project. Since the start of the year Bluestone has released the results of a robust Feasibility Study, advanced engineering and procurement activities, and initiated construction of key offsite infrastructure. During the quarter, environmental, forestry, and construction permits for the new bridge were received from the Guatemalan authorities.

Construction of the bridge is underway with earthworks and pile installation nearing completion. The new bridge will be a significant improvement to the existing bridge and will ensure long-term access to the urban centre for communities within the surrounding area. Completion of the construction of the bridge is anticipated in the Fall of 2022.

Right of way negotiations for the transmission line continue and are progressing according to schedule. The environmental permit amendment application was submitted to national authorities late last year. The amendment application is a comprehensive document that covers all aspects of the project in detail, building on the historical data and the previously approved 2007 EIA, to incorporate the new surface mining method.

The company has been monitoring progress with the relevant authorities and currently anticipates receiving the approval of the environmental permit amendment by the end of the year, followed by a construction licence and forestry permits. Procurement activities have progressed, and firm pricing was received for major equipment such as the mining fleet, grinding mills, and filter presses. Pricing received to date has been in line with the capital estimates in the Feasibility Study.

With the work achieved to date, the Company is positioned to initiate detailed engineering. Bluestone has progressed project finance discussions with streamers, commercial banks, and private equity groups. Based on the initial indications that have been received, the availability of funding will be contingent on the approval of the environmental permit amendment.

As a result, the Company will wait to receive the permit amendment before committing capital to long lead items, detailed engineering, and further training programs for the construction phase. Waiting for the approval of the environmental permit amendment will impact previously communicated timelines. The Company will continue the development of the bridge and certain transmission line ROWs, to be shovel-ready when the permit amendment is approved.

Progress to date from an increase in site development activities has resulted in a rise in anti-mining activity, which is not uncommon in Central America. This anti-mining opposition is primarily based from outside of the region of the project but directed at influencing local communities surrounding the project. The Company does not believe that these anti-mining and anti-development groups represent the underlying local stakeholder sentiment toward the project.

Bluestone will continue to advance its community engagement and socialization efforts to safeguard social acceptance for the development of Cerro Blanco. The Company is committed to demonstrating responsible mining practices and formalizing social acceptance to continue advancing the project. The development of Cerro Blanco is expected to provide substantial economic benefits to Guatemala, both locally and at a national level.

Cerro Blanco will be one of the foreign direct investments in the country since the Covid-19 pandemic and will be a meaningful contributor to gross domestic product. It is estimated that during production the mine will contribute about $160 million annually and approximately $1.8 billion over the life of mine ("LOM") to the Guatemalan economy through direct employee wages, local purchasing, taxes, and royalties. In taxes and royalties alone, the project is anticipated to generate payments to the Government of approximately $300 million over the LOM.

During construction, direct employment including employees of the Company and contractors is estimated to peak at approximately 1,100 persons. During operations, direct employment including employees of the Company and contractors is estimated to range between 400 and 500 persons. In addition to direct employment, the project will generate several thousand indirect jobs to support the mine operations.

The project will improve local and regional infrastructure through the development of a new access road and bridge.