Golden Minerals Receives Final Environmental Permits for Rodeo Gold Project; Company on Track for January 2021 Gold Production - Seite 2

Golden has begun hiring key mine and plant supervisory personnel. The Company anticipates only minor hiring needs given it has a plant operating workforce in place at Velardeña currently working under the terms of Golden’s oxide plant lease with Hecla Mining Co. (this lease will terminate on November 30, 2020). In December 2020, employees will transition to Rodeo-related activities, preparing the plant to receive Rodeo’s mined material. Golden has engaged a regional contractor to perform mine excavation work, while Golden will provide overall mine management and engineering work, including in-pit technicians who will determine whether material is suitable for processing. The Company will shortly engage a second contractor to haul mined material to the oxide plant. Golden’s assay lab located in Velardeña will be used for the project’s assaying requirements.

The Company currently believes the oxide plant will be ready to begin milling and processing operations in January 2021. Following a two to three-month start-up period, the Company anticipates daily throughput in the oxide plant of roughly 450 tpd, slightly lower than the 480 tpd in the PEA due to the added regrind circuit. Mine life at 450 tpd is estimated to be approximately 2.5 years or 10 quarters, one quarter longer than outlined in the PEA.

The doré produced is, according to the PEA, expected to be comprised of approximately 25% gold and 65-70% silver, and to be of a readily marketable and saleable quality.

Mining Projections

The April 2020 PEA incorporated pricing assumptions of $1,622/oz gold and $14.38/oz silver. It estimated an after-tax net present value of US$22.5 million (using an 8% discount rate) and an All-In Sustaining Cost (“AISC”) per gold ounce, net of by-product credits, of US$843. The Company has updated its internal preliminary projections to apply to the PEA assumptions of current metals prices of $1,887/oz gold and $23.73/oz silver (London Fix PM prices on September 30, 2020, as reported by Kitco) and the results of the recently completed drilling program, metallurgical testing and proposed contract mining and hauling contracts. These current projections were outlined in the Company’s Form 10-Q for the period ending September 30, 2020 and may be summarized as follows. The Company notes these projections are preliminary in nature and actual results may vary significantly due to a number of factors, as detailed in the Cautionary Statements section of this press release.