Filo Mining Corp. announced drilling continued to be the operational focus of the Company during the three months ended June 30, 2022 (Second quarter 2022), with holes delivering strong results, testing continuity and expansion of the bonanza-grade Breccia 41 structure, and the broader high-grade Aurora Zone. In addition, an exploration hole, FSDH060, drilled approximately 2km northeast of Breccia 41, discovered a new porphyry copper-gold centre, now named the Bonita Zone.

Highlights include: FSDH055C, which is the best hole ever drilled at Filo del Sol from a grade-thickness perspective, returned 1,338m at 1.33% copper equivalent (CuEq) from 150m, including 126m at 5.02% CuEq from 728m in Breccia 41, within which 24m intersected at 13.30% CuEq from 728m. This interval is 40m north of the high-grade section in FSDH041; FDSDH057 successfully extended the bonanza-grade mineralization of Breccia 41 by 175m, with the final 11.1m returning 17.6% CuEq from 776m, ending the hole in the higher grade copper values ever discovered at Filo del Sol; FSDH058, collared 460m south of FSDH041 and drilled into the Aurora Zone, returned 1,252m at 0.91% CuEq from a depth of 100m to the end of the hole, including 310m at 1.40% CuEq and 6m at 398.3 g/t Ag in the silver zone, demonstrating the continuity of strong mineralization within this high-grade feature of the Filo del Sol deposit; and FSDH060, collared 2km north of FSDH041, discovered the Bonita Zone, which is currently interpreted as a new porphyry centre along the overall Filo trend, confirming that the Filo del Sol Project hosts a multikilometer, northeast-trending alignment of overlapping porphyry-centered hydrothermal systems. The Company's 2021/2022 drill and field program is continuing through the South American winter season for the first time in the project's history. The Company's six diamond rigs have been consolidated in the area around Breccia 41, and the broader Aurora Zone, to de-risk its first its first winter operations in terms of required road clearing, transportation and logistics support.

As of the date of this News Release, additional holes have been completed with assays pending, which include: FSDH061, located 228m northeast of FSDH057, completed to a depth of 1,093m; FSDH063, located 150m west of FSDH025, to investigate the southwestern extension of the Aurora Zone, completed to a depth of 1,141m; and FSDH066, located 1.3km northeast of FSDH060, to investigate the area under the Maranceles veins, a series of quartz-enargite veins which outcrop in this area, completed to a depth of 458m. Assay results for these holes will be released as they are received, analyzed and confirmed by the Company. The first winter campaign has been challenging, as the 2022 winter season at the Filo del Sol Project has been characterized by significant snowfall and extreme winds, which have hampered drilling activities.

The Company is prioritizing personnel safety and maintaining road access while reducing site activities during the winter storms. Holes underway, which target the Aurora Zone and Breccia 41, will seek to improve the Company's understanding of the geometry, extent and geological context of these high-grade sections within the Filo del Sol deposit. The Company has also continued preliminary metallurgical testwork on the sulphide mineralization, as well as environmental and social baseline programs in support of future project permitting. Looking ahead to the South American spring, the Company has plans to ramp up its rig count as the weather moderates, in order to expedite drilling and definition of the deposit.

While drilling will continue to focus on infilling and testing extension of the Aurora Zone and Breccia 41, the Company also plans to drill test the newly discovered Bonita Zone. Such testing may prove transformational for the project, as it may increase the ultimate size of the deposit and provide opportunities to discover additional high-grade Aurora Zone or bonanza-grade Breccia 41 styled zones.