Filo Mining Mobilizes for 2020/21 Field Program Targeting Expansion and Definition of the 1.2 to 1.6 Billion Tonne Exploration Target

VANCOUVER, Oct. 23, 2020 - Filo Mining Corp. (TSXV: FIL) (Nasdaq First North Growth Market: FIL) ("Filo Mining", or the "Company") is pleased to announce that it is mobilizing crews and equipment to the Filo del Sol project site, and is on track to resume drilling operations in early November. Planning for the program includes a detailed COVID-19 protocol which involves a comprehensive testing and quarantine plan for all personnel prior to travelling to site. The protocol has been approved by the San Juan provincial health authority and meets or exceeds all current government requirements. View PDF

Commenting on the upcoming program, President and CEO Jamie Beck stated, "Hole FSDH032, released earlier this year, intercepted 1,009m at 0.95% copper equivalent and confirmed the enormous potential for resource expansion at Filo del Sol. Surface mapping, historic shallow drilling, and our recent 3D geophysical survey suggests this mineralization continues almost 2km to the north. We are excited about testing this area to the north, alongside additional high-grade targets identified by newly interpreted geophysical anomalies. What really sets Filo apart is the optionality that exists at the deposit – our current focus on exploring the sulphide mineralization is backstopped by a PFS on the oxide reserves with strong economics, enhanced further by today's metals prices."

The upcoming drill program will follow up on last season's outstanding results, which confirmed that the ultimate size of the mineralized system is far larger than what has been defined to date, and that the system is characterized by the presence of significant zones of high-grade copper, gold and silver mineralization within the overall mineralized envelope. The drilling, surface geological mapping and geophysical surveys completed last year have provided both the knowledge and the encouragement to allow us to continue to effectively test both these concepts.

HIGH-GRADE TARGETS

The Filo del Sol deposit includes several high-grade zones including the distinct breccia-hosted zone of copper-gold mineralization intersected by FSDH038 last season (73 m at 2.04% CuEq (1.19% Cu, 1.06 g/t Au)). This style of mineralization has a distinctive geophysical signature characterized by high chargeability and low resistivity, and there is a clear anomaly roughly centred on FSDH038 with dimensions of about 500 metres north-south by 500 metres east-west. Holes FSDH032 and FSDH034 lie on the northern and southern boundaries of this feature.

Drill holes planned to test the core of this feature will also tighten the drill spacing in order to collect the data necessary to enable us to add this area to the mineral resource estimate.

RESOURCE EXPANSION POTENTIAL

The overall size of the system was clearly demonstrated by two of last season's drill holes, FSDH032 and FSDH034, both of which ended in mineralization after intersecting long intervals of copper-gold mineralization (see Filo News Release dated April 20, 2020):

• FSDH032: 1,009 m at 0.95% CuEq (0.57% Cu, 0.39g/t Au, 11.1g/t Ag)
• FSDH034: 1,034 m at 0.68% CuEq (0.42% Cu, 0.32g/t Au, 3.4g/t Ag)

In June 2020, the Company developed an exploration target using predicted volumes based on approximate east-west extents of the resource, depths below surface drilled by the deeper diamond drill holes and the north-south extent drilled by these holes (see Filo News Release dated June 25, 2020). This led to an estimated target size of 1.2 to 1.6 billion tonnes with estimated grades ranging between 0.7% and 1.0% CuEq. The potential quantity and grade of this exploration target is conceptual in nature, and there has been insufficient exploration to define a mineral resource in this area. It is uncertain if further exploration will result in the target being delineated as a mineral resource.

The intersection in FSDH032 is completely open to the north, and several lines of evidence, as summarized below, suggest that there is a high potential for this mineralization to continue for at least another 1,700 metres, to a mineralized intersection in hole VRC093. Drilling success in this area would dramatically increase the size of the previously announced exploration target.

• Surface geological mapping and sampling indicate that the same alteration which overlies the Filo del Sol deposit (including FSDH032) extends and strengthens to the north and that FSDH032, although on the northern edge of the known mineralization, is actually located in the centre of the mineralized system.
• A series of shallow reverse circulation (RC) holes in this gap area intersected scattered mineralization within a zone of intense silica alteration, which is consistent with the upper parts of the system and is similar to the alteration which occurs above the main deposit.
• The 3D induced polarization (IP) survey completed during the past season shows a continuation of the geophysical signature (low chargeability, low resistivity) which defines the deposit area. Of note are two distinct anomalies with the same signature as the FSDH038 breccia that lie 700 metres and 1,700 metres north of FSDH038, within the alteration zone, and are important drill targets.

Stepping out to the north of FSDH032 into this area is a priority for the upcoming drill program.

The program will start with two diamond drills with plans to add two more towards the end of the year. We anticipate the completion of approximately 8,000 metres of drilling, subject to being able to operate safely and effectively in accordance with our COVID-19 protocols.

Jamie Beck

President and CEO

Qualified Persons and Technical Notes

The scientific and technical disclosure for the Filo del Sol Project included in this news release have been reviewed and approved by Bob Carmichael, B.A.Sc., P.Eng. who is the Qualified Person as defined by NI 43-101. Mr. Carmichael is Vice President, Exploration for the Company and has reviewed and approved the technical information contained in this news release. Samples were cut at Filo Mining's Batidero camp near the project site by Company personnel. Diamond drill core was sampled in 2 metre intervals (except where shortened by geological contacts) using a rock saw for sulphide mineralization. Oxide mineralization was cut with a core splitter in order to prevent dissolution of water-soluble copper minerals during the wet sawing process. Core diameter is a mix of PQ, HQ and NQ depending on the depth of the drill hole. Samples were bagged and tagged at camp, and packaged for shipment by truck to Copiapo, Chile. Samples were delivered to the ALS preparation laboratory in Copiapo where they were crushed and a 500g split was pulverized to 85% passing 200 mesh. The prepared samples were sent to the ALS assay laboratory in Santiago, Chile for copper, gold and silver assays, with a second split sent to the ALS laboratory in Lima, Peru for multi-element ICP and sequential copper analyses. ALS is an accredited laboratory which is independent of the Company. Gold assays were by fire assay fusion with AAS finish on a 30g sample. Copper and silver were assayed by atomic absorption following a 4 acid digestion. Samples were also analyzed for a suite of 36 elements with ICP-ES and a sequential copper leach analysis was completed on each sample with copper greater than 500ppm (0.05%). Copper and gold standards as well as blanks and duplicates (field, preparation and analysis) were randomly inserted into the sampling sequence for Quality Control. On average, 9% of the submitted samples are Quality Control samples. No data quality problems were indicated by the QA/QC program.

Mineralized zones within the Filo del Sol deposit are typically flat-lying, or bulk porphyry-style zones and drilled widths are interpreted to be very close to true widths.

Copper Equivalent (CuEq) for drill intersections is calculated based on US$ 2.80/lb Cu, US$ 1,400/oz Au and US$ 16/oz Ag, with 80% metallurgical recoveries assumed for all metals. The formula is: CuEq % = Cu % + (0.7292 * Au g/t) + (0.0083 * Ag g/t).

ABOUT FILO MINING

Filo Mining is a Canadian exploration and development company focused on advancing its 100% owned Filo del Sol copper-gold-silver deposit located in Chile's Region III and adjacent San Juan Province, Argentina. Filo Mining is listed on the TSX Venture Exchange ("TSXV") and Nasdaq First North Growth Market under the trading symbol "FIL". Filo Mining is a member of the Lundin Group of Companies.

ADDITIONAL INFORMATION

The Company's certified advisor on Nasdaq First North Growth Market is Pareto Securities AB, +46 8 402 50 00, certifiedadviser.se@paretosec.com.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.

The information contained in each Filo Mining news release was accurate at the time of dissemination but may be superseded by subsequent news release(s).

The information in this release is subject to the disclosure requirements of Filo Mining under the EU Market Abuse Regulation. This information was submitted for publication, through the agency of the contact person set out below, on October 23, 2020 at 00:01.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements made and information contained herein in the news release constitutes "forward-looking information" and "forward-looking statements" within the meaning of applicable securities legislation (collectively, "forward-looking information"). The forward-looking information contained in this news release is based on information available to the Company as of the date of this news release. Except as required under applicable securities legislation, the Company does not intend, and does not assume any obligation, to update this forward-looking information. Generally, this forward-looking information can frequently, but not always, be identified by use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "projects", "budgets", "assumes", "strategy", "goals", "objectives", "potential", "possible", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events, conditions or results "will", "may", "could", "would", "should", "might" or "will be taken", "will occur" or "will be achieved" or the negative connotations thereof. All statements other than statements of historical fact may be forward-looking statements.

The Company believes that the expectations reflected in the forward-looking information included in this news release are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon. Information contained in this news release is as of the date of this press release. In particular, this press release contains forward-looking information pertaining to assumptions made in the interpretation of drill results, geology, grade and continuity of mineral deposits; expectations regarding access and demand for equipment, skilled labour and services needed for exploration and development of mineral properties; and that activities will not be adversely disrupted or impeded by exploration, development, operating, regulatory, political, community, economic, environmental and/or healthy and safety risks. In addition, this news release may contain forward-looking statements or information pertaining to: potential exploration upside at the Filo del Sol Project, including the extent and significance of the porphyry copper-gold system underlying the current Mineral Resource and the prospectivity of exploration targets; exploration and development plans and expenditures; the success of future exploration activities; potential for resource expansion; ability to build shareholder value; expectations with regard to adding to its Mineral Reserves or Resources through exploration; expectations with respect to the conversion of inferred resources to an indicated resources classification; ability to execute planned work programs; government regulation of mining activities; environmental risks; unanticipated reclamation expenses; title disputes or claims; limitations on insurance coverage; and other risks and uncertainties.

Statements relating to "mineral resources" are deemed to be forward-looking information, as they involve the implied assessment, based on certain estimates and assumptions that the mineral resources described can be profitably produced in the future.

The forward-looking statements contained in this news release are made as at the date of this news release and Filo does not undertake any obligations to publicly update and/or revise any of the included forward-looking statements, whether as a result of additional information, future events and/or otherwise, except as may be required by applicable securities laws. Forward-looking information is provided for the purpose of providing information about management's current expectations and plans and allowing investors and others to get a better understanding of the Company's operating environment. Forward-looking information is based on certain assumptions that the Company believes are reasonable, including that the current price of and demand for commodities will be sustained or will improve, the supply of commodities will remain stable, that the general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed on reasonable terms and that the Company will not experience any material labour dispute, accident, or failure of plant or equipment. These factors are not, and should not be construed as being, exhaustive. Although the Company has attempted to identify important factors that would cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. All the forward-looking information contained in this document is qualified by these cautionary statements. Readers are cautioned not to place undue reliance on forward-looking information due to the inherent uncertainty thereof.

SOURCE Filo Mining Corp.