Orla Mining Ltd. provided an update on its exploration activities at the South Railroad Project in the second half of 2023. This news release presents the first of two updates from the 2023 infill and extension drilling, totaling seven drillholes and representing 2,508 metres. Drilling at South Railroad in 2023 totalled 14,695 metres and additional results from other exploration targets will be shared in a subsequent update.

Highlights: Potential expansion of resources at Pinion and Dark Star deposits through new oxide intersections in step-out drilling: Pinion: 0.72 g/t Au over 112.7 metres (oxide), and Dark Star: 3.53 g/t Au over 36.6 metres (oxide). Successful infilling and metallurgical drilling with confirmation of modeled grade, continuity of mineralization, via infill drill program. Intersection includes 2.20 g/t Au over 163.1 metres (oxide) and 2.50 g/t Au over 88.1 metres (oxide).

2023 Pinion and Dark Star Exploration Highlights: In 2023, Orla extended oxide-hosted gold mineralization at the Pinion and Dark Star deposits, with highly positive drill intersections outside of the projected open pits. Meanwhile, infill drill results met expectations, confirming robust oxide mineralization within projected pits, while supplying material for new metallurgical column test work to further optimize the planned development project. Pinion SE Extension Drilling: At the Pinion deposit, a review of available geological data suggested gold mineralization may be continuous in the southeastern part of the deposit over the Pinion SE target area, where faulting had been previously interpreted as limiting or displacing extension of the mineralization.

To test the continuity of gold mineralization, three drill holes totaling 822 metres were completed. All three drillholes intercepted significant oxide-hosted gold mineralization, including 0.72 g/t Au over 112.7 metres (oxide) confirming the continuity of gold mineralization to the southeast without fault displacement interference. These results, combined with historical drill intersections, indicate geological continuity and suggests gold mineralization extends to at least 350 metres outside of the projected open pit.

Exploration drilling at the Dark Star deposit consisted of 1,112 metres in two drillholes. Results from these two exploration drill holes identified the potential to extend oxide mineralization beyond the currently defined mineral resources and explained a seismic anomaly identified below the Dark Star deposit. Drillhole DR23-01 targeted the potential extension of high-grade mineralization east of the currently designed open pit limit, returning wider and higher-grade oxide hosted gold mineralization than nearby drill holes and average resources grade, including 3.53 g/t Au over 36.6 metres (oxide), 5.23 g/t Au over 19.8 metres approximately 50 metres outside of the projected open pit limit.

The exceptional results from this extension drilling suggests the potential to define additional oxide mineralization, possibly associated with a previously unknown feeder structure for the Dark Star deposit. Additional drilling is planned for 2024 to follow-up on these highly encouraging results, testing the feeder structure model and defining the potential to grow resources and expand the projected open pit. Drillhole DC23-01 was drilled in the northern part of the Dark Star deposit to test the potential extension of mineralization and was extended to investigate an anisotropic, antiformal seismic anomaly approximately 400 metres below the Dark Star deposit.

Assay results from the upper part of the hole returned low grade Au (1.66 g/t Au over 12.5 metres (Sulphide) from 256.5 metres) approximately 30 metres outside the currently defined open pit at Dark Star. Drilling also intercepted unmineralized Tonka Formation conglomerate at depth, explaining and validating the seismic target. Dark Star Infill and Metallurgical Drilling: One reverse circulation and one core drillhole were completed within the northern pit at the Dark Star deposit to support ongoing project development work.

The reverse circulation hole, DR23-02, was drilled to confirm continuity of high-grade Au in oxide mineralization at the base of the designed open pit. Highly positive assay results, 2.20 g/t Au over163.1 metres (oxide), incl. 3.97 g/t Au over 30.5 metres, confirmed the modeled grade, limits of gold mineralization, and continuity of high-grade mineralization at the base of the designed open pit.

The core drillhole, DSC23-02, was drilled to provide material for run-of-mine column test work. The strong assay results, 2.50 g/t Au over 88.1 metres (oxide), incl. 5.69 g/t Au over 30.5 metres1, from hole DSC23-02 are consistent with historical drill data and the mineral resource estimate block model.

The run-of-mine column test work is expected to be undertaken in 2024. 2024 Pinion and Dark Star Planned Exploration: Orla is committed to growing the Pinion and Dark Star deposits through exploration in 2024. As part of the broader South Railroad exploration program totaling approximately 14,000 metres, Orla plans to drill 4,400 metres across 16 holes, with a focus on exploration near the Pinion and Dark Star deposits.

Near-deposit exploration in 2024 will seek to define the extension of oxide mineralization beyond the currently defined open pit extents, building on the drill success from 2023, and supporting resources expansion efforts. The 2024 exploration program at South Railroad is planned to commence in the spring of 2024 and is expected to continue through October 2024. South Railroad Project Resources & Reserves and Pinion & Dark Star Geological Setting: The South Railroad Project covers a strike length of over 25 kilometres along the southern part of the prolific Carlin Gold Trend, Nevada.

Gold mineralization at South Railroad occurs mainly as disseminated Carlin-type ore-stage pyrite in stratiform breccia and stratigraphic horizons within a complex fault network. The property hosts multiple zones of oxide, transition and sulphide mineralization, throughout the entire land package, with current oxide measured and indicated mineral resources of 1.8 Moz (75.3 Mt at 0.74 g/t Au) inclusive of proven & probable mineral reserves of 1.6Moz (65.2 Mt at 0.77 g/t Au) at the Pinion and Dark Star deposits.