Operational Update: Tesoro Gold Mine

This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

25 November 2024

Nativo Resources Plc

("Nativo" or the "Company")

Operational Update: Tesoro Gold Mine

Production forecast and sales agreement

Nativo Resources plc (LON:NTVO), which has interests in precious metals mining and production in Peru, provides the following update on the Tesoro Gold Mine ("Tesoro") in southern Peru, which is held by the Company's 50%-owned Peruvian joint venture, Boku Resources SAC ("Boku").

Boku has entered into a sales agreement with a local gold ore processing plant in the Arequipa region, approximately 70km from the mine site, for the purchase of vein material recovered from the Bonanza mine at Tesoro. Under the terms of the agreement, vein material will be assayed and processed, and the measured gold recovered will be priced at the international market spot price less between 20-30%. The processor is targeting recovery rates of around 90% Au.

Since operations began in September 2024, Boku has been crushing and sorting the accumulated stockpile of vein material generated from 46 vertical metres and 64 lateral metres of mine preparation, which amounts to approximately 30 tonnes. This vein material is expected to be collected by the processing plant in December 2024, at the same time as the first production material is transported. The grade will then be assessed by the processing plant laboratory. Based on its own sampling, Boku expects grades of 8-10 g/t Au.

The underground mine continues to be prepared, and simultaneous production will be initiated in December 2024 from blocks one and two. Boku is targeting initial production rates of between 3-5 tonnes per day ("tpd") building to 28 tpd by June 2025 with the incorporation of more development faces and a second shaft.

Stephen Birrell, Chief Executive Officer of Nativo, commented:

"We are excited to have established a commercial arrangement with a local gold ore processing plant to sell Bonanza vein material. The mine is developing in line with expectations. Net income from vein material sales will initially be applied to expanding the mine and production at Tesoro through subsequent shafts and developing our own processing capabilities to retain more value from the mined material."

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About Nativo Resources plc

Following the partial divestment of its assets in Argentina, Nativo entered into a 50:50 joint venture in Peru in July 2024 with an experienced local partner for precious metals (gold/silver) mining and processing of gold ore (own and third party production) and the cleaning of known tailings deposits containing Measured and Indicated resources of gold and silver. Through the JV, known as Boku Resources, Nativo has secured an opportunity to scale operations in Peru, owning 50% of the production and resources.

Initially, Boku is establishing formalised artisanal and small mining operations on its 100% held Tesoro Gold concession, southern Peru, targeting early cash flow generation by Q4 2024. The Company plans to establish its own gold ore processing plant and, longer-term, to pursue its low capex strategies to appraise and exploit tailings deposits to recover gold, and develop the Ana Lucia Polymetallic concession.

Qualified Persons Statement

The scientific and technical information contained within this announcement has been reviewed and approved by Dr Alberto Rios Carranza, a geologist with over 27 years' experience, who holds a doctorate cum laude awarded by the Polytechnical University of Madrid, Spain and who has published or co-authored over 17 scientific papers on the mineralisation across Peru. Alberto is a member of the Geological Society of Peru, the Colombian Society of Geology and the Institute of Mining Engineers of Peru. He is a Qualified Person as defined by the AIM Guidance Note on Mining and Oil & Gas Companies dated June 2009.

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