Denarius Metals Corp. announced that it has completed a maiden Mineral Resource estimate for its 100%-owned Zancudo Project in Colombia prepared by SRK Consulting (U.S.) Inc. in accordance with the Canadian Institute of Mining Metallurgy and Petroleum Definition Standards incorporated by reference in National Instrument 43-with an effective date of December 31, 2022. The Company also announced that it has rationalized its assets in Colombia through a mutual agreement with Aris Mining Corporation to terminate the Guia Antigua license within Aris Mining's Segovia mining title.

Highlights of the maiden MRE include: Total Inferred Resources of 2.8 million tonnes grading 6.5 g/t gold and 112 g/t silver totaling 576,000 ounces of gold and 10.0 million ounces of silver. At a gold equivalent grade of 8.0 g/t, the Inferred Resources total 718,000 gold equivalent ounces based on a 4 g/t cut-off grade over a 1.0 m minimum mining width. Mineralization at the Zancudo Project occurs in stacked mantos and steeply dipping veins that have been exploited over a strike length of 3,500 m. The average vein width is 0.35 m with a maximum width of 3.0 m. The known vertical extent of mineralization is 400 m. A total of 40,100 m of diamond drilling in 149 holes has been carried out at the Zancudo Project, including 33 underground holes drilled in the Independencia Mine.

The principal veins that have been drilled by Gran Colombia Gold and IAMGOLD from 2011 through 2021 are the steeply east dipping Santa Catalina Vein over 2,700 m strike length, the high angle Porvenir Vein System and the low angle Manto Antiguo, Manto Inferior and La Miel Vein. Gold and silver mineralization is associated with intermediate sulfidation epithermal mineralization, structurally controlled, and hosted within schists of the Arquia Complex, sedimentary rocks of the Amagá Formation, and the Late Miocene andesite porphyry intrusions. The mantos and veins have early stage, base metal sulphides (pyrite, sphalerite, galena, arsenopyrite) infilled by quartz or quartz-carbonate gangue, with banded textures that are typical of epithermal veins.

This initial MRE confirms the historically significant high gold-silver grade potential of this project, as it remains open for further expansion in all directions. Mineralization still exists outside the estimated block, but further exploration will be needed to improve the geological confidence to a sufficient level to define Mineral Resources. Mineral resources are not ore reserves and do not have demonstrated economic viability.

All figures rounded to re?ect the relative accuracy of the estimates. Gold and silver assays were capped where appropriate. Given historical production, it is the Company's opinion that all the elements included in the metal equivalents calculation have a reasonable potential to be recovered and sold.

The Mineral Resources are reported at an in-situ cut-off grade of 4.0 g/t AuEq over a 1.0 m mining width, which has been derived using a gold price of $1,800/oz and silver price of $24.0/oz, and suitable benchmarked technical and economic parameters for underground mining (mining = $105.0, processing = $42.0, G&A and selling costs = $21.0, Royalties = 3.2%). Gold (or Au) Equivalent is calculated with the formula AuEq = (Au Au Recovery (75%) AuPrice + Ag Ag Recovery (80%) AgPrice)) /(Au Recovery (75%) Au Price) It assumed that the Zancudo Project will produce a doré product based on assumed conventional gold and silver processing recoveries of 75% Au, and 80% Ag from initial preliminary metallurgical sampling and benchmarked projects within the region. The Mineral Resource estimation process was completed by SRK using the initial geological models provided by Zancudo geological staff and refined by SRK.

The Company provided SRK with an exploration database with logging indicating the main geological features and units. In addition to the database, SRK has worked with the preliminary geological interpretations, which SRK has made minor alterations accordingly to incorporate additional intersections. The resource estimation methodology involved the following procedures: Database compilation and verification; Construction of wireframe models for the fault networks and centerlines of mining development per vein; Definition of resource domains; Data conditioning (compositing and capping) for statistical analysis, geostatistical analysis; Variography; Block modeling and grade interpolation; Resource classification and validation; Assessment of “reasonable prospects for economic extraction” and selection of appropriate reporting cut-off grades (CoG); and Preparation of the Mineral Resource estimate.

SRK has completed the geological modelling and Mineral Resource estimate using Seequent Leapfrog. The procedure involved construction of wireframe models for the fault networks, key geological/mineralization domains, data conditioning (compositing and capping) for statistical analysis, geostatistical analysis, variography analysis, block modeling and grade interpolation followed by validation. Grade was estimated using inverse distance weighted (power 2) estimates for gold and silver.

Grade estimation has been based on parent block dimensions of 20 m x 20 m x 20 m, for the 2022 model. The block size reflects potential size variations for any underground smallest mining units, but the blocks have been subcelled to reflect the relatively narrow nature of the mineralization with a minimum block size of 0.3215 m. Classification has been limited to estimates within 125 m of the closest single hole, located in either vein or manto domains, and by more than two drillholes. In conjunction with the RTO Transaction in February 2021, Denarius Metals had acquired a license giving the Company the right for exploration, mining and processing operations and the commercialization of mineral products from the Guia Antigua Project, a 386-hectare area located northeast of Medellin within the Segovia mining title owned by Aris Mining in the Department of Antioquia, Colombia.

In 2021 and 2022, the Company carried out an exploration campaign at the Guia Antigua Project, including approximately 6,700 m of drilling in 37 holes. Although the Guia Antigua Project continues to look promising, the Company concluded its potential would be enhanced if it is developed in conjunction with the neighboring mines in Aris Mining's Segovia mining title. Based on this conclusion, the Company and Aris Mining agreed to terminate the license agreement effective February 22, 2023.

Aris Mining has reimbursed the Company for exploration expenditures incurred by the Company in the amount of COP 10,692,000,000 (equivalent to approximately $2.2 million) in cash.