Tarachi Gold Corp. announced the signing of new land lease, water rights and tailings purchase agreements with the local Magistral Ejido community (the "Ejido") and provide an update on the Company's Magistral Gold Tailings project in Durango, Mexico. On March 20, 2022, the Magistral Ejido Assembly, made up of the local families and community members with official status as members of Ejido Magistral, voted in favour of the terms for new land lease, water rights and tailings material agreements.

These agreements had been negotiated between the Company and the Ejido Magistral Council members over the past several months. The Land Lease Agreement is for a 30-year term, granting Tarachi and its Mexican subsidiary's use of 63.9 hectares of land for mining, processing, and tailings disposal purposes. The Company will pay annual fees to the Ejido and has agreed to make an advanced payment on signing for the first two years of leasing fees.

Annual fees will increase at a rate equal to the Mexican National Inflation Index starting in March of 2024. A 30-year agreement for the supply of water and lease of water related infrastructure within the 643-hectare territory of the Ejido Magistral was also signed. The Company will pay to the Ejido an amount of $5,000 MXN (approximately $250 USD) per month to maintain the right to retrieve water from within the Ejido's territory and use of the Ejido's water related infrastructure.

The Company plans to obtain process water for the Magistral mill from the old underground mine workings located adjacent to the Mining Area (Figure 1) or from existing and potentially new wells close to the project area. The Company and the Ejido have also amended their existing exclusive agreement to purchase, mine and process certain tailings materials belonging to the Ejido. The amendment will result in an increase of US$0.25 per tonne in the purchase fee paid by the Company for Ejido tailings material when gold prices are above $1475/oz, compared to the previous agreement terms. Approximately 70% of the tonnes included in the Magistral Mineral Resource Estimate are subject to the new agreement terms. In addition, the Company has agreed to increase the monthly advanced tailings purchases, currently being purchased at a rate of 2,500 tonnes per month, according to the following schedule: Increasing to 4,000 tonnes per month for the month of February 2022; Increasing to 5,000 tonnes per month for the month of June 2022; and, Increasing to 7,500 tonnes per month for the month of September 2022.