Orosur Mining Inc Announces Colombia Update

· LOI signed as first step in Orosur reassuming 100% ownership of Anzá Project

· Targeting completion of transaction by end of April 2024

· Planning for reassuming ownership, operatorship and recommencement of drilling is underway

LONDON, UK / ACCESSWIRE / March 25, 2024 / Orosur Mining Inc. ("Orosur" or the "Company") (TSXV:OMI)(AIM:OMI), is pleased to announce an update on the status of the Company's flagship Anzá Project ("Project") in Colombia.

The Project is the subject of an Exploration Agreement with Venture Option ("Exploration Agreement") with Colombian company Minera Monte Águila ("MMA"). MMA is itself a 50/50 joint venture between Newmont Corporation ("Newmont") and Agnico Eagle Mines Limited ("Agnico") and is the Colombian vehicle by which these two companies jointly exercise their rights and obligations with respect to the Exploration Agreement over the Project. MMA is the current operator of the Project.

The Exploration Agreement came into effect in September 2018, with the first phase lasting four years and being successfully completed in September 2022, such that MMA earned a 51% interest in the Project. The Company and MMA then began the process of moving toward Phase 2 of the Exploration Agreement, which included a US$2 million option payment being made to Orosur in early March 2023.

Subsequent to this, as announced on May 4, 2023, the Company was informed that MMA was reviewing its alternatives in respect of the Project and may not proceed to Phase 2 of the Exploration Agreement.

The Company is pleased to announce that on March 22, 2023 it entered into a non-binding letter of intent with MMA, that provides for a transaction pursuant to which Orosur would repurchase, directly or indirectly, MMA's interest in the Project, resulting in Orosur having a 100% ownership of the Project ("Transaction"). The proposed consideration set out in the letter of intent is a net smelter return royalty of 1.5% and cash payments of up to US$15 million payable upon meeting certain agreed production thresholds.

Subject to several conditions, including but not limited to, the negotiation of definitive documentation and the completion of due diligence, the Company expects that the Transaction can be completed as early as the end of April 2024.

Further details of the Transaction remain commercially confidential and will be disclosed if and when the Transaction is completed.

Preparations

Concurrently with negotiation of the Transaction, the Company has begun the process of preparing to reassume ownership and operatorship of the Project. This involves, among other things, the recruitment of staff, liaising with the local community, discussions with relevant contractors and suppliers and the obtaining of various permits required for field operations.