Halcones Precious Metals Corp. announced that diamond drilling is planned to commence on its Carachapampa Project (the “Project”) in Chile on February 1, 2023. Initially, 2,000 meters of drilling is budgeted to evaluate two target areas, the Central Zone Target, and the Northwest Target, where field mapping and sampling has highlighted the presence of high-grade gold and silver mineralization in outcrop over extensive areas.

The prospect is located approximately 180 km northeast of the city of Copiapo, which is one of the main mining centers in Chile. Access to the area is excellent year round and contains well maintained hard surface and paved roads, including a section of one of the international crossings into Argentina. Altitude on the property varies from 3,500 to 4,000 masl and the area can be worked all year.

Further to the news release dated November 23, 2022, where the Company announced discovery of mineralized structures adjacent to the newly discovered volcanic dome by the Central zone, additional field work has upgraded the geological potential of the area. The key supporting attributes for the drilling are as follows: Numerous high grade gold and silver bearing structures extending across a wide area; Extensive vuggy silica alteration associated with the high grade mineralization, a key characteristic of these types of deposits; Presence of a newly discovered volcanic dome, which drives the mineralizing fluids that deposit precious metals; Large zones of high resistivity identified by IP surveys; A proven economic environment with past producers within 2 km of the targets and large, currently producing gold-silver mines in the area. Recent high grade epithermal developments in the area include Salares Norte (Gold Fields): 3.9M oz AuEq grading 4.8g/t Au & 53g/t Ag and La Coipa (Kinross): 1.5M oz AuEq 1.6 g/t Au & 39 g/t Ag; Drilling to the north of the Central Zone target intersected a wide zone of anomalous gold mineralization; In the Northwest target area, vuggy silica alteration has been mapped in limited exposures over approximately 600 meters.

Values in a number of outcrop chip samples include 0.54, g/t Au, 1.00 g/t Au, 2.5 g/t Au and 2.49 g/t Au as well as a sample with 548 g/t silver. Further assays from this area are expected before drilling commences there. The Central Zone Target extends for 500 – 600 meters on the flank of the newly discovered volcanic dome (Figures 2 and 3).

The area is extensively altered to “vuggy quartz” which is a key characteristic of high sulphidation deposits in this area. Although outcrop is sparce, sampling has identified gold in outcrop over an extensive area ranging in grade from 1.43 g/t gold to 18.5 g/t gold. Sampling is conducted in a manner that will allow reasonable averaging and statistical analysis of the data for resource estimation.

Standards, blanks and duplicate samples, are used to maintain quality control and to verify laboratory procedures. The Company has established a QA/QC sampling control protocol which it applies to all rock sampling, including chip channels from trenches, surface grab samples and diamond drilling. Following is a summary of these protocols: Drilling: Samples are collected using a standard 0.5 m to 1 m sample length in the main mineralized zones and a 1 m to 2 m length in the surrounding rocks or in other minor intervals of alteration and/or mineralization.

Shorter sample lengths were avoided whenever was possible; Core samples are split along the core axis using an electric rock saw, by the Company's trained technicians, prior to sampling the core is logged and a high-resolution photographic record is taken for the files; One standard sample is inserted for each 20 core samples and one coarse blank, one fine blank and one internal duplicate sample are included each 50 core samples for QA/QC control; In order to meet NI 43-101 security standards, the samples are placed in rice bags and sealed with numbered security tags on site and then shipped to the laboratory facilities by truck by Company personnel. The custody and transfer of samples is always the responsibility of Company personnel. Surface and trenches: Channel trench samples are collected using a standard 0.5 m to 1 m sample length in the main mineralized zones and a 1 m to 2 m length in the surrounding rocks or in other minor intervals of alteration and/or mineralization.

Shorter sample lengths are avoided whenever was possible; Field mapping samples are also collected using a standard 0.5 m to 1 m sample length in mineralized zones when possible, depending on the outcrop availability; One standard sample is inserted for each 20 core samples and one coarse blank, one fine blank and one internal duplicate sample are included each 50 samples for QA/QC control; In order to meet NI 43-101 security standards, the samples are placed in rice bags and sealed with numbered security tags on site and then shipped to the laboratory facilities by truck by Company personnel. The custody and transfer of samples is always the responsibility of Company personnel. Laboratory Analysis: All analyses of the samples were carried out by ALS Limited, an independent laboratory with all regulatory documents and certifications approved and up to date.

The sample prep facilities are based in Copiapo, 180 km SW from the project. The analysis package chosen, for Au, Ag, and a multi-elements, trace level method are as follows: Au-ICP21/Au-ICP22 – Fire Assay Fusion – ICP-AES Finish Sample Decomposition: Fire Assay Fusion (FA-FUSPG1 & FA-FUSPG2) Analytical Method: Inductively Couple Plasma – Atomic Emission Spectrometry A prepared sample is fused with a mixture of lead oxide, sodium carbonate, borax, silica and other reagents as required, inquarted with 6 mg of gold-free silver and then cupelled to yield a precious metal bead. The bead is digested in 0.5 mL dilute nitric acid in the microwave oven.

0.5 mL concentrated hydrochloric acid is then added and the bead is further digested in the microwave at a lower power setting. The digested solution is cooled, diluted to a total volume of 4 mL with de-mineralized water, and analyzed by inductively coupled plasma atomic emission spectrometry against matrix-matched standards. When gold samples exceed the 10g/t upper detection limit of Au-ICP/Au-ICP methods, samples are re-assayed using the following: Ag-GRA21, Ag-GRA22, Au-GRA21 and Au-GRA22 Precious Metals Gravimetric Analysis Methods Sample Decomposition: Fire Assay Fusion (FA-FUSAG1, FA-FUSAG2, FA-FUSGV1 and FA-FUSGV2) Analytical Method: Gravimetric A prepared sample is fused with a mixture of lead oxide, sodium carbonate, borax, silica and other reagents in order to produce a lead button.

The lead button containing the precious metals is cupelled to remove the lead. The remaining gold and silver bead is parted in dilute nitric acid, annealed and weighed as gold. Silver, if requested, is then determined by the difference in weights.