Golden Minerals Announces Restart of Silver and Gold Mining Operations at Velardeña and Provides Update on Capital Resources - Seite 2

The Company, through engagement with an independent engineering firm, intends in the third quarter of 2023 to update the March 2022 Technical Report Summary for Velardeña that was previously completed (including plans for the previously contemplated but no longer required bio-oxidation facility) in accordance with SEC SK-1300 guidelines. That report is available here, for reference: Velardeña Technical Report Summary, Mar. 2022. It summarizes the underlying model from which the Company’s current internally-developed forecasts have been developed.

¹ Silver equivalent production estimate calculated based on $1,900 per ounce gold and $22.50 per ounce silver with 64% payable gold recovery and 81% payable silver recovery and does not include lead and zinc, which will also be produced.

Current Company-developed forecasts for mining a portion of the published resource over an approximate seven-year life of mine (“LOM”) estimate processing 700,000 - 800,000 tonnes of material at Plant I, with LOM payable gold production of 60,000 - 70,000 ounces and LOM payable silver production of 5.5 million - 6.5 million ounces. Operating costs are estimated at $225 - $275 per tonne.

Capital Resources and Financial Outlook

The Company does not currently have sufficient resources to initiate the restart of mining operations at Velardeña or to otherwise meet its expected cash needs during the twelve months ending May 31, 2024. At May 31, 2023, our total cash resources were approximately $2.4 million and we have accrued accounts payable of approximately $1.7 million. The mining operations at Rodeo have ceased, and although we continue to process ore from the Rodeo stockpile, we do not expect to generate a significant amount of positive operating margin from Rodeo going forward. The Company needs to raise additional cash in the very near term, whether through the sale of non-core assets or equity financing, including the use of its ATM program. In the absence of sufficient asset sales, equity financing or other external funding the Company’s cash balance is expected to be depleted early in the third quarter of 2023. If financing or asset sales are not available to us, we could be forced to liquidate our business. The Company’s board of directors is considering various financing alternatives, sales of assets and other available strategic alternatives to avoid that result.