Positive Results Reinforce Potential Porphyry and Skarn Mineralization at Blanco and Tinto Zones, Auquis Project - Seite 2

Figure 2. Rock sampling results in the vicinity of the Blanco skarn zone. Anomalous elements are typical of skarn mineralized zones, including zinc, lead, copper and silver shown. Samples greater than 1% zinc, 1% lead, 0.5% copper, and 50 g/t silver are individually labelled.

Next Step

Building upon the success of the soil sampling campaign, Latin Metals plans to undertake additional soil grids to expand the coverage and define the extent of these anomalies. This strategic step aims to enhance the understanding of the mineralized zones and expedite focused exploration efforts.

Closing of Recently Announced Loans

The Company also announces that it has closed the previously announced loans (the “Loans”) made available to the Company in the aggregate amount of $600,000 (see news release dated August 24, 2023). The Loans have a one-year term and bear interest at the rate of 10% per annum compounded annually, payable on the maturity date. In connection with the closing of the Loans, the Company issued an aggregate of 6,000,000 non-transferable bonus common share purchase warrants to the lenders, each of which warrants will entitle the holder to purchase one common share of the Company for a period of one year at an exercise price of $0.10 per share.

The funds available to the Company under the Loans will be used by the Company to pay outstanding liabilities and for general corporate and working capital purposes. All securities issued pursuant to the Loans are subject to a hold period in Canada ending on January 28, 2024, and the Loans are subject to the final approval of the TSX Venture Exchange.

The lenders that provided the Loans included two current directors and an executive officer of the Company (together, the directors and executive officer are the “Related Parties”). The Loans from the Related Parties constituted a related party transaction pursuant to Multilateral Instrument 61 101 - Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company relied on Sections 5.5(a) and 5.7(1)(a) of MI 61-101 for an exemption from the formal valuation and minority shareholder approval requirements, respectively, of MI 61-101, as, at the time the Loans were made available to the Company by the Related Parties, neither the fair market value of the subject matter of, nor the fair market value of the consideration for the Loans by the Related Parties exceeded 25% of the Company’s market capitalization.