SOMA REPORTS POSITIVE ORE SORTING RESULTS

On October 28, 2025, Soma Gold announced positive results from a preliminary ore sorting study on a bulk sample from its Cordero Mine in Colombia. The test, conducted on Run of Mine (ROM) material, achieved a 70% mass reduction while increasing the gold grade by 275%, from 7.45 g/t to 20.44 g/t, with a 90% gold recovery. The company stated that the next step is to install a pilot plant to process material at a commercial level. Management believes this technology could "effectively double throughput and ounces produced" across its mills without adding plant capacity.

The ore sorting results are materially positive as they present a credible, high-impact technological solution to some of Soma's most significant operational challenges: grade variability and rising costs.

In Q2 2025 (ending June 30), the company reported alarmingly high cash costs of US$1,671 per ounce, which management attributed to processing lower-grade ore. This news directly addresses that problem. By potentially upgrading feed grade by 275% (from ~7.5 g/t to over 20 g/t) before it even enters the mill, the company could dramatically lower its unit costs and increase margins.

Furthermore, the potential to double throughput without major mill expansions is transformative. The company's growth plan has been focused on restarting the El Limon mill and securing enough feed for two mills. Ore sorting would allow them to process significantly more material through their existing infrastructure, accelerating production growth far beyond current expectations. This technology could be a game-changer for the company's economics if successfully implemented at a commercial scale.

However, a critical eye is required. These are preliminary results from a single bulk sample test. The VP of Operations explicitly stated, "this is the first step," and the "next step is to install a pilot plant." There is no guarantee that these results will be replicated consistently at a larger scale or across different ore types within the deposit. Implementation will require capital expenditure and time, and the path from a successful test to full-scale operation is fraught with execution risk.

This positive news does not resolve the most immediate risk facing the company: the ongoing labor negotiations. A strike was announced on September 10, 2025, and the corporate update on October 27, 2025, indicated that negotiations were still in progress with the assistance of the Colombian Ministry of Labor. While the ore sorter de-risks the long-term operational plan, it has no impact on near-term production if the mines are not operating due to a strike.

In summary, the news is highly positive and significantly enhances the long-term investment thesis by providing a clear path to higher production and lower costs. It validates a key use of proceeds from the recent financing. However, the preliminary nature of the study and the unresolved, immediate risk of the labor situation temper the excitement.

Soma Gold Corp. is a gold mining company focused on production and exploration in Colombia. Its primary assets are two adjacent mining properties in Antioquia, which include the Cordero-Venus underground gold mine, the El Bagre Mill (currently operating), and the recently restarted El Limon Mill. The company's strategy is to grow production organically by increasing resources, restarting and expanding mill capacity, and implementing new technologies like ore sorting.