Denarius Metals Announces Conversion of 73% of Resources to the Indicated Category in Its Updated Mineral Resource Estimate for Its Lomero Project in Spain

Toronto, September 18, 2023 - Denarius Metals Corp. (TSXV: DSLV) (OTCQX: DNRSF) ("Denarius Metals" or the "Company") announced today that it has completed an updated Mineral Resource estimate ("MRE") for its 100%-owned Lomero Project in Spain prepared by SRK Consulting (U.S.), Inc. ("SRK") in accordance with the Canadian Institute of Mining Metallurgy and Petroleum ("CIM") Definition Standards incorporated by reference in National Instrument 43-101 ("NI 43-101") with an effective date of July 31, 2023.

Highlights of the updated MRE include:

• Indicated Mineral Resources comprise 7.73 Mt at 0.66% Cu, 1.03% Zn, 0.46% Pb, 25 g/t Ag and 2.27 g/t Au (1.91% CuEq) containing an estimated 51 kt Cu, 80 kt Zn, 36 kt Pb, 6.1 Moz Ag and 0.6 Moz Au.

• Inferred Mineral Resources comprise 3.45 Mt at 0.29% Cu, 1.18% Zn, 0.53% Pb, 22 g/t Ag and 1.86 g/t Au (1.46% CuEq) containing an estimated 10 kt Cu, 41 kt Zn, 18 kt Pb, 2.5 Moz Ag and 0.2 Moz Au.

• The updated MRE effective as of July 31, 2023 has been prepared following the completion of the Company's Phase 2 and Phase 3 infill and validation drilling campaigns carried out from October 2022 through July 2023. The current geological model and updated MRE for the Lomero-Poyatos deposit include the results obtained from a total of 146 holes representing 44,228 meters of drilling completed to date by the Company plus another 55 historical holes drilled by CMR representing 10,053 meters.

• The most significant change in the updated MRE compared to the initial MRE prepared effective July 19, 2022 (after completion of the Phase 1 drilling campaign) has been an increase in the confidence in the geological model to include Indicated Mineral Resources. The Phase 2 and Phase 3 drilling campaigns have successfully converted approximately 73% of the initial inferred MRE to the Indicated Mineral Resources category. There have also been gains in both tonnage and grades for all metals reported since the initial MRE.

Serafino Iacono, Executive Chairman and CEO of Denarius, commented, "Our Phase 2 and Phase 3 drilling campaigns have successfully increased our confidence in the geological model for our Lomero Project, including an upgrade of resources and an increase in tonnages and grades, as demonstrated by the updated MRE reported today. Drilling to date has focused on the historical Lomero-Poyatos deposit where we have identified mineralization over a strike of over 1 km and with a vertical extension of 400 meters. The updated MRE provides us with a solid foundation to commence the next stage of work on a preliminary economic assessment ("PEA") for the project. In addition, we continue to have significant exploration upside at our Lomero Project. Later this year, we expect to commence a 6,000 meters greenfield exploration drill program targeting the Las Merinas and Alianza areas located to the south and to the north of the shear zone that hosts the Lomero-Poyatos deposit with the objective of increasing the tonnage in the next MRE update. Earlier this year we reported that we have been granted an investigation permit for Palomarejo, a 151-hectare area which is adjacent to and on strike with the Lomero-Poyatos deposit. We expect to start our drilling campaign in this area as part of our 2024 exploration program. With our Zancudo Project in Colombia advancing toward the commencement of production in 2024, a successful drilling campaign in 2023 as recently reported at the Toral Project in Northern Spain and this latest announcement regarding the updated MRE at our Lomero Project, we are very pleased to see solid momentum in the catalysts for each of our three core projects to create value for our shareholders."

The updated Mineral Resource for the Lomero Project with an effective date of July 31, 2023 is shown in Table 1 below. The Mineral Resources have been reported based on Copper Equivalent ("CuEq") with the key assumptions included in the table. In order to meet "reasonable prospects for eventual economic extraction" requirement, the Lomero deposit has been deemed amenable to both open pit and underground mining (for the remaining material which has displayed continuity above the defined cut-off grades), with the cut-off grades of 0.4% CuEq for open pit resources and 0.6% CuEq for underground resources established using benchmarked costs taken from similar deposits within the Iberian Pyrite Belt and metallurgical recoveries based on the outcomes of the initial metallurgical test work completed by the Company between 2022 and 2023.

Table 1: SRK CIM Compliant Mineral Resource Statement effective July 31, 2023 for the Lomero Project, Spain, reported based on Copper Equivalent CuEq ⁽²⁾

(1) Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. All figures have been rounded to reflect the relative accuracy of the estimates. Gold, silver, copper, lead and zinc assays were capped where appropriate. It is assumed based on regional benchmarking that all the elements included in the CuEq calculation have a reasonable potential to be recovered and sold.

(2) The CuEq calculation has been defined using the following formula:

CuEq =((Au*21.38)+(Ag*0.42)+(Cu*69.45)+(Pb*12.68)+(Zn*25.46)/99.21)/ Cu Recovery

(3) Mineral resources are reported using an assumed CuEq cut-off grade based on metal price assumptions*, variable metallurgical recovery assumptions**, mining costs, processing costs, general and administrative (G&A) costs and variable NSR factors***. Mining, processing and G&A costs total US$31/t for Open Pit Mining and US$45/t for Underground Mining which includes assumptions for prices, recoveries and payabilities. The CuEq cut-off grade 0.4% CuEq (OP) and 0.6% CuEq (UG) is calculated by dividing the costs by the Cu Factor and recoveries.

(*) Metal price assumptions considered for the calculation of Metal Equivalent grades are: Gold (US$/oz 1,900.00), Silver (US$/oz 24.0), Copper (US$/lb 4.50), Lead (US$/lb 1.15) and Zinc (US$/lb 1.50)

(**) Cut-off grade calculations assume variable metallurgical recoveries as a function of grade and relative metal distribution. Average metallurgical recoveries are: Gold (35%), Silver (55%), Copper (70%), Lead (50%) and Zinc (77%).

(***) Cut-off grade calculations and metal equivalencies assume variable CuEq factors as a function of smelting, transportation costs and royalties (3%).

(3) Open pit (OP) mineral resources are constrained within NPV optimized pits which SRK based on assumed mining costs defined.

(4) Underground (UG) mineral resources represent all material below the proposed limiting pit shell which have been confirmed visually to form contiguous units with a minimum width of 2.5 x 2.5 x 1.25m

(5) MS = Massive Sulphides; SMS = Semi-Massive Sulphides.

(6) The mineral resources were estimated by Benjamin Parsons, BSc , MSc Geology, MAusIMM (CP) #222568 of SRK, a Qualified Person.

Refer to Attachment 1 for an image outlining the final classification of the updated MRE between the Indicated and Inferred categories.

Qualified Persons Review

Ben Parsons, Principal Consultant (Resource Geology) with SRK prepared the updated MRE for Lomero according to CIM Definition Standards and will be supported by a NI 43-101 independent report which will be published and filed on the Company's website and SEDAR profile within 45 days. Mr. Parsons is a Qualified Person as defined by NI 43-101. The NI 43-101 independent report will include detailed information on the key assumptions, parameters and methods used to estimate the mineral resources.

About Denarius Metals

Denarius Metals is a Canadian junior company engaged in the acquisition, exploration, development and eventual operation of polymetallic mining projects in high-grade districts, with its principal focus on the Lomero Project in Spain. The Company signed a definitive option agreement with Europa Metals Ltd. in November 2022 pursuant to which Europa has granted Denarius Metals two options to acquire up to an 80% ownership interest in the Toral Zn-Pb-Ag Project, Leon Province, Northern Spain. The Company's 100%-owned Zancudo Project in Colombia provides an opportunity to develop near-term production and cash flow through local contract miners and long-term growth through exploration.

Additional information on Denarius can be found on its website at www.denariusmetals.com and by reviewing its profile on SEDAR at www.sedarplus.ca.

Cautionary Statement on Forward-Looking Information

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

This news release contains "forward-looking information", which may include, but is not limited to, statements with respect to the updated MRE, the timing to commence mining operations at the Zancudo project, the preparation of a PEA for the Lomero Project, future exploration activities at the Lomero Project and other business plans or strategies. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Denarius Metals to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements are described under the caption "Risk Factors" in the Company's Annual Information Form dated April 21, 2023 which is available for view on SEDAR at www.sedarplus.ca. Forward-looking statements contained herein are made as of the date of this press release and Denarius Metals disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.

Cautionary Statement on Mineral Resources

Mineral resources are not mineral reserves and do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, socio-political, marketing, or other relevant issues. In particular, the quantity and grade of reported inferred mineral resources are uncertain in nature and there is insufficient exploration to define these inferred mineral resources as an indicated or measured mineral resource in all cases. It is uncertain in all cases whether further exploration will result in upgrading the inferred mineral resources to an indicated or measured mineral resource category.

For Further Information, Contact:

Michael Davies
Chief Financial Officer
(416) 360-4653
investors@denariusmetals.com

Attachment 1 - Final Classification used in the Lomero Project Mineral Resource Estimate effective July 31, 2023

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/9396/180921_513cf15de4d49b26_001full.jpg

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/180921