Mercedes mine is currently owned and operated by Bear Creek Mining Corporation, who purchased the mine from Equinox in April 2022.  Under the terms of the royalty, Bear Creek pays to Sandbox a 2% NSR, payable on a quarterly basis from the minerals (which includes all precious and base metals) produced from the property.

The Mercedes district has been the focus of mining activities dating back to the late 19th century. Commercial production commenced at the Mercedes Mine in 2011 and the mine has produced over 800,000 ounces of gold. Mercedes’ mill has a current capacity of 2,000 tonnes per day, with gold recoveries averaging approximately 95% over the past five years. Proven and Probable Reserves as of December 31, 2021 totaled 2.2 million tonnes grading 3.75 grams per tonne gold and 29.0 grams per tonne silver, containing 267,000 ounces of gold and 2.069 million ounces of silver (based on a 2.1 grams per tonne gold cut-off grade, except Diluvio which is based on a 2.0 grams per tonne gold cut-off grade). Measured and Indicated Resources (exclusive of Mineral Reserves) as of December 31, 2021 totaled 2.6 million tonnes with an average grade of 3.81 grams per tonne gold and 37.47 grams per tonne silver, containing 312,000 ounces of gold and 3.073 million ounces of silver (based on a 2.1 grams per tonne gold cut-off). Mercedes has a strong track record of reserve replacement and Bear Creek intends on expanding its exploration program. Information sourced from NI 43-101 technical report on Mercedes gold-silver mine with an effective date of December 31, 2021 and dated July 4, 2022.  This report is available under Bear Creek Mining’s profile on SEDAR.com.

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