Halcones Precious Metals Corp. provided results from recently completed colluvial and mineralogical studies from the Carachapampa project in Chile. The colluvial study analyzed sediments sampled on a grid over the Northwest zone area.

The mineralogical study analyzed thin sections from recent drilling from the Carachapampa projects. Carachapampa is located in the prolific Maricunga belt approximately 180 km northeast of the mining center - the city of Copiapo, Chile - with year-round road access. In mid-May 2023, the Halcones technical team commissioned a colluvial study to follow-up on the drilling results from earlier in 2023 at the Northwest zone.

The study comprised 50 samples over a 100m x 100m grid pattern. The samples were analyzed at ALS Laboratory in Copiapo, Chile. For reference, typical regional background levels of As+Sb+Pb are in the range of 40-45 ppm.

Following completion of the drill program, Halcones commissioned GABGEO laboratory to analyze 8 thin sections from drill cores from the early 2023 drill campaign. The goal of the mineralogical study was to gain a better understanding of the relationship between the observed alteration and the mineral assemblage of the new discoveries with the aim of using this data to improve drill hole targeting in future exploration campaigns. Particular interest was paid to the observed alteration and intensity of silicification in relation to mineralization.

With this information, the Halcones technical teams is able to project and better understand the spatial relationship of drill holes in relation to the conceptual deposit model. Also, increased understanding of the alteration and mineral assemblage will help Halcones better relate these results to the conceptual geologic model Halcones' geologists have utilized for drill targeting thus far. Carachapampa is covered with a thin veneer of younger volcanics and sediments which limits the use of traditional prospecting methods.

The results confirm advanced argillic alteration in the volcanic breccia with disseminated pyrite and gold in the upper part of the system. The confirmed presence of alunite and other alteration minerals are characteristic of a high sulfidation epithermal (“HSE”) system. The presence of hypogenous covellite surrounding the disseminated pyrite is one of the most important results as it explains the presence of copper in a high temperature hydrothermal environment.

The presence of covellite implies a deposition environment in the key temperature range for high sulphidation gold deposit emplacement. Alunite, which is an important alteration mineral is confirmed as one of the dominant alteration minerals in a portion of hole CAR23-012. It is the dominant alteration mineral associated with disseminated mineralization at the nearby Salares Norte deposit and other HSE deposits.

Hole CAR23-008 returned 1.09 g/t Au and 17.35 g/t Ag over 11 m from 81 m down hole at the Central Target, including 1.53g/t Au and 27.82 g/t Ag over 6m. Hole CAR23-012 returned 2.75 g/t Au and 20.94 g/t Ag over 10 m from 79 m down hole at the Northwest Target. This is part of a broader mineralized interval of 1.3 g/t Au and 11.73 g/t Ag over 24 m from 73 m downhole.

Drill Core Sampling Protocol Sampling is conducted in a manner that will allow reasonable averaging and statistical analysis of the data for mineral 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 0.5m to 1m sample length in the main mineralized zones and a 1m to 2m 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 in 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 Trench Sampling Protocol: Channel trench samples are collected using a standard 0.5m to 1m sample length in the main mineralized zones and a 1m to 2m length in the surrounding rocks or in other minor intervals of alteration and/or mineralization. Shorter sample lengths are avoided whenever possible.

Field mapping samples are also collected using a standard 0.5m to 1m 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 in 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.