Hemlo produces 143,458 oz Au in 2025

Mr. Jason Kosec reports HEMLO MINING CORP. ANNOUNCES STRONG 2025 GOLD PRODUCTION OF 143,458 OUNCES (INCLUDING 20,192 OUNCES IN DECEMBER) AND PROVIDES OPERATIONAL UPDATE Hemlo Mining Corp. has provided an update on its 2025 gold production as well as 2026 operations program at the Hemlo gold mine, located near Marathon, Ont., Canada. Highlights Strong 2025 production performance -- The Hemlo mine produced 143,458 ounces of gold in 2025, including 20,192 ounces in December, reflecting strong year-end execution and operational momentum. Owner-operator transition (hybrid model) -- The company is transitioning to an owner-operator mining model using a disciplined hybrid approach. Manroc Developments Inc. will continue with Alimak mining and provide support in select areas during the transition, ensuring operational continuity while enhancing cost control, work force stability and long-term value creation. The strategy prioritizes training and employment from surrounding communities. Operational optimization and infrastructure leverage -- A structured action plan is under way to maximize existing infrastructure and drive a progressive production ramp-up through 2026 to 2028, including: Material handling improvements to increase haulage efficiency and reduce unit costs; Ventilation upgrades to support higher mining rates and deeper development; Enhanced ground support standards to improve safety, mining flexibility and reduce costs; Optimized mine sequencing to improve dilution, grade control, production stability and material handling; Mine and mill recovery initiatives to increase overall gold recovery. 2026 guidance -- The company expects to release 2026 production and cost guidance in Q3. Jason Kosec, president and chief executive officer of Hemlo Mining, stated: "Two thousand twenty-six will be a pivotal year for Hemlo as we execute a disciplined plan to unlock the mine's full potential. Our foremost priority is health, safety and environmental performance, alongside strong team integration across the operation. Through a hybrid transition to an owner-operator model -- with Manroc continuing Alimak Mining -- we are strengthening operational control and cost performance. Targeted initiatives in material handling, ventilation, ground support, mine sequencing, and mine and mill recovery are designed to increase throughput and margins, fully leveraging our existing 7,100-tonne-per-day hoisting capacity and our 10,000-tonne-per-day milling capacity. Focused investments in 2026 position Hemlo for a production ramp-up over the next two years and sustainable long-term growth." 2025 gold production Full year 2025 gold production at the Hemlo mine totalled 143,458 payable ounces (including 140,448 tonnes grading 4.71 grams per tonne gold for 20,192 payable ounces gold in the month of December), representing the highest production from the Hemlo camp in the past four years. Full year 2025 production at Hemlo met previously stated production guidance (refer to Barrick news release dated Feb. 12, 2025, available on Barrick Mining Corp.'s SEDAR+ profile). The strong production in 2025 was delivered despite being a transitional year for the operation, as the mine operated through a sale process and the transfer of ownership to Hemlo Mining on Nov. 26, 2025. The company intends to release 2026 production and cost guidance in Q3. 2026 operational program Since acquiring the Hemlo mine, the company's main objectives consist of optimizing the potential of the sizeable underground and surface infrastructure. Within the next two years, the company plans to increase the underground mining rate to maximize the hoisting capacity which currently operates at approximately 60-per-cent capacity. The Hemlo mine team has developed an action plan to drive performance and establish operational excellence in support of the company's vision for value creation and growth, including: Health, safety and environment: In the near term, and following the announcement on Jan. 15, of a new vice-president of sustainability, the company plans to perform an independent assessment of its health, safety and environmental management systems, with an added focus on risk management and workplace culture across the operation, at all levels. Permitting work continues to support future tailings management plans and a closure plan update. A broader focus for 2026 will see the continued implementation of the Mining Association of Canada's Towards Sustainable Mining (TSM) standard, a globally recognized sustainability program that supports mining companies in managing key environmental and social risks. The transition to an owner-operator model is a key factor underpinning the company's production ramp-up strategy, enhanced operational control and reduction of operational costs. Prior to using a contractor mining work force, Hemlo was staffed primarily by local residents, with only a small number of (strategic) staff employed on a fly-in, fly-out basis. At the moment, approximately 70 per cent of contractor staff are sourced from local communities (Manitouwadge, Marathon, White River, and the communities of Biigtigong Nishnaabeg and Netmizaaggamig Nishnaabeg). Hemlo's continuing investment in training and apprenticeship programs is a priority for the company to develop the next generation of miners, ensuring a skilled work force long into the future. Returning to an owner-operator hybrid model with the company's long-term partnership with Manroc is expected to deliver annual operating cost savings, facilitate communication and planning, improve productivity, and increase operational flexibility, while supporting local employment and work force expansion to anchor a strong performance-driven operating culture at Hemlo. The mine will continue to rely on specialized contractors for select activities; however, the majority of core mining operations will be performed internally by the company. To lead this transition, the company has built a strong team with Eric Tremblay as chief operating officer; Raphael Dutaut as vice-president, exploration; Mike Tsafaras as vice-president, engineering and projects; Garett Macdonald as vice-president, operations and general manager; Perry Blanchard as vice-president, sustainability; and Dennis Bigras as deputy general manager. Working closely with the solid team already in place, the company is executing a phased transition, restoring direct control over mining activities, work force deployment and development sequencing, with initial recruitment already under way and supported by a strong interest from the local and regional work force. To support the production growth strategy, underground mining opportunities have been identified for execution in 2026, including: Changes of mining method in select zones, from underhand to overhand, maximizing unconsolidated waste-rock backfilling for optimized materials handling, while introducing flexibility in mine sequencing; Increasing lateral development advances by focusing on tunnelling with the jumbo and using automation technology between shifts; Stopes in addition to previous plans, of both high margin and lower-grade bulk tonnage type, located in B-Zone in proximity to the underground crusher and hoist, to increase material handling infrastructure utilization and capacity; Development of new ventilation systems to access deep ore at the C-Zone and allow for increased equipment and personnel in work areas; Rehabilitation of development drifts within past-producing areas to reaccess and restart production of parallel zones left behind due to lower gold prices at the time of mining. An investment of over $30-million (U.S.) for 21 new pieces of mobile equipment to be delivered throughout 2026, including scooptrams, haul trucks, development jumbos, bolters and production service equipment. These additions are expected to support a meaningful increase in mine productivity, accelerate development advancement rates and reduce bottlenecks across the mining cycle. As the life of mine plan is continually refined, the company expects that more equipment will be introduced in 2027, as part of a continuing program to expand and modernize the mine fleet. Metallurgical recovery for gold at Hemlo has been very high, and in 2025 averaged 94 per cent. To accommodate the planned mining rate increase, a plan to upgrade the process plant infrastructure is under way, consisting of: Redesign of the SAG mill liners and replacement of the on-stream analyzer to provide faster and more accurate information to mill operators; Process optimization focusing on liberation, carbon management, leach efficiency and incorporating best practices. Planned increases to production in 2026 to 2027 and beyond is being pursued in parallel to a continuing 130,000-metre exploration drilling program (see company's press release dated Jan. 29, 2026), technical studies and mine planning optimization, supporting the higher annual output but also targeting an extension of mine life to maximize near-term cash flow and net present value. The company has launched a focused action plan to ramp up production through 2026 to 2028 while strengthening long-term value at Hemlo. Disciplined investments in exploration, mine planning, the owner-operator transition, underground development and fleet expansion are under way in early 2026, positioning the operation for improved cost performance and stronger margins as our production will increase from 2026 to the beginning of 2028. An updated mineral resource and mineral reserves estimate prepared in accordance with National Instrument 43-101 -- Standards of Disclosure for Mineral Projects (NI 43-101) is planned for the second half of 2027. Qualified person The scientific and technical information contained in this news release has been reviewed and approved by Mike Tsafaras, PEng, the company's vice-president, engineering and projects. Mr. Tsafaras is a qualified person as defined in NI 43-101. Scientific and technical information Scientific and technical information in this press release is derived from the company's technical report titled "NI 43-101 Technical Report Hemlo Mine, Ontario, Canada" with an effective date of Dec. 31, 2024, and a signature date of Oct. 27, 2025, and the company's news release dated Jan. 26, 2026, copies of which have been filed on the company's SEDAR+ profile. About Hemlo Mining Corp. Hemlo Mining (previously Carcetti Capital Corp.) recently closed the acquisition of the Hemlo gold mine from Barrick Mining for aggregate consideration of up to $1.1-billion (U.S.). The Hemlo gold mine is located 35 kilometres east of the town of Marathon, Ont., and has produced approximately 25 million ounces of gold from both underground and open pit operations since production began in 1985. The company is looking to establish itself as a leading Canadian mid-tier growth-focused gold producer, with an immediate focus on maximizing the value of the Hemlo gold mine's existing infrastructure through a fit-for-purpose operating approach, while unlocking new opportunities through an aggressive brownfields exploration. We seek Safe Harbor.