Filo Mining Reports 425m at 1.55% CuEq, including 4m at 5,045 g/t Silver at Filo del Sol; Extends the deposit another 750m to the North

VANCOUVER, Aug. 4, 2021 - Filo Mining Corp. (TSXV: FIL) (Nasdaq First North Growth Market: FIL) (OTCQX: FLMMF) ("Filo Mining", or the "Company") is pleased to announce additional drill results from the Filo del Sol project in San Juan province, Argentina. Highlights are listed below, along with accompanying figures: View PDF Version.

• Drillhole FSDH049 returned 425.3m at 1.55% CuEq (0.42% Cu; 0.44g/t Au; 91.5g/t Ag); included within the long intercept, was the highest-grade silver intersection on the project to date, with 4m at 5,045.0 g/t Ag from a depth of 236m contained within a broader silver interval of 56m at 629.1 g/t Ag from a depth of 228m.
• Drillhole FSDH051 has extended the mineralized zone by 750m to the north, bringing the total north-south extent of continuous mineralization to 4,500m. This is the most northerly hole completed into the deposit to date, returning 344.0m at 0.50% CuEq (0.26% Cu; 0.21g/t Au; 9.4g/t Ag) from 246m.
• FSDH051 includes a 36m intersection of elevated silver (50.5 g/t Ag) which lies along the projection of the main Filo silver zone and may represent its extension. If additional drilling is able to establish continuity, this would increase the length of the silver zone by 1km to a minimum north-south extent of 3km.
• Drillhole FSDH049 is within the current mineral resource, while FSDH051 is 1,700m north of the northern resource boundary.
• Both of these holes were collared prior to drilling the high-grade zone intersected in hole FSDH041 (see News Release dated May 13, 2021) and were not intended to follow up on that intersection.

Commenting on the Company's latest field campaign, Lukas Lundin stated, "Filo del Sol is growing into one of the largest copper-gold-silver discoveries ever. Congratulations to the Filo team for the hard work and perseverance."

Jamie Beck, President and CEO, commented "With Hole 51, we extended the deposit 750m to the north, outlining a 4.5km north-south strike of continuous mineralization. Hole 49 is an excellent reminder of the precious metals-rich nature of the deposit. Starting with 30m of oxide gold from surface, Hole 49 then returned a substantial copper-gold-silver intercept which included the highest-grade silver intercept on the project to date. We remain on track to resume drilling later this month as we prepare for continuous, year-round field operations."

Hole FSDH049 was collared on Section 8700N and drilled at an angle of -80 degrees towards the east. The hole was drilled to a final depth of 515.3m where it was stopped as a result of drilling difficulties.

The hole was collared in strongly oxidized and leached rhyolite volcaniclastics with the oxide zone continuing to a depth of 300m. The hole encountered variously brecciated rhyolite, with primary textures obscured by intense alteration and strong stockwork veining, to a final depth of 515.3m. Alteration is typical of the upper parts of the Filo system, primarily a mixture of quartz-alunite, residual silica and strong silicification. A gold oxide zone from surface to 30m depth correlates well with surrounding holes. Copper and gold mineralization starts at a depth of 90m, increasing throughout the silver zone from 228m to 284m and remaining strong to the end of the hole. Silver is highest within the silver zone but continues at moderate levels below this to a depth of at least 492m. The hole ended in mineralization, with the last 20m averaging 0.81% CuEq (0.44% Cu; 0.47g/t Au; 2.5g/t Ag).

Hole FSDH051 was collared on section 10700N (2,000m north of FSDH049) and drilled at an angle of -70 degrees towards the west to a final depth of 765.1m and was still underway when the drill program ended. The hole was progressing well and is available for deepening during the next drill phase.

The hole intersected rhyolites with quartz-alunite and phyllic alteration to a depth of 640m where it entered granite which typically forms the deepest host rock unit at Filo. Mineralization starts at a depth of 246m and continues strongly to 590m, below this depth it weakens and is more sporadic but does continue to the end of the hole with the final 20m averaging 0.17% CuEq (0.12% Cu; 0.07g/t Au; 0.7g/t Ag). A zone of elevated silver mineralization is present from 280m to 316m which lies along the projection of the main Filo silver zone and may represent its extension. If additional drilling is able to establish continuity, this would increase the length of the silver zone by 1km to a minimum north-south extent of 3km.

Outlook

A total of 11,280m was completed in fifteen holes during the 2020/2021 field season. Drilling has now stopped for a short break while the Company prepares the drills and camp facilities for continuous, year-round field operations. Assay results for thirteen of the fifteen holes drilled this season have now been released. The final two holes, FSDH052 and FSDH053, were stopped well short of target depths at 152m and 150m respectively, within the leached cap, and full assays for these holes will be released once they have been resumed and completed during the next drill phase.

Drilling is on track to resume in mid-August and is planned to continue without interruption as we transition to year-round operations. The Company plans to complete a resource update prior to the end of the year, which will incorporate data from the deep holes drilled since 2019, as well as several more to be completed in the late summer and fall.

On behalf of Filo Mining,

Jamie Beck
President and CEO

Filo del Sol Base Map Satellite Image, August 4, 2021

Filo del Sol Long Section, August 4, 2021

About Filo del Sol

Filo del Sol is a high-sulphidation epithermal copper-gold-silver deposit associated with one or more large porphyry copper-gold systems. Overlapping mineralizing events combined with weathering effects, including supergene enrichment, have created several different styles of mineralization, including structurally-controlled and breccia-hosted gold, manto-style high-grade silver (+/- copper) and high-grade supergene enriched copper within a broader envelope of disseminated, stockwork and breccia-hosted sulphide copper and gold mineralization. This complex geological history has created a heterogeneous orebody which is characterized by zones of very high-grade copper +/- gold +/- silver mineralization within a large envelope of more homogeneous, lower-grade mineralization.

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. Samples were cut at Filo Mining's operations base near the town of Guañizuil, Argentina 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 and packaged for shipment by truck to the ALS preparation laboratory in Mendoza, Argentina where they were crushed and a 500g split was pulverized to 85% passing 200 mesh. The prepared samples were sent to the ALS assay laboratories in either Lima, Peru or Santiago, Chile for copper, gold and silver assays, and 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 in holes FSDH049 and FSDH051 are interpreted to be approximately true widths.

Copper Equivalent (CuEq) for drill intersections is calculated based on US$ 3.00/lb Cu, US$ 1,500/oz Au and US$ 18/oz Ag, with 80% metallurgical recoveries assumed for all metals. The formula is: CuEq % = Cu % + (0.7292 * Au g/t) + (0.0088 * 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. The Company's shares are listed on the TSXV and Nasdaq First North Growth Market under the trading symbol "FIL", and on the OTCQX under the symbol "FLMMF". 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 August 4, 2021 at 00:01 EDT.

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, geochemistry 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 ability of the Company's COVID-19 operating protocol to continue to meet government-mandated health and safety guidelines enabling it to conduct its field programs as planned; 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; plans or ability to recommence a field and drill program in August 2021; timing or anticipated results of an update to the mineral resource estimate for Filo del Sol; 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.