Soma Gold receives first shipment from Diamantina mine

Executive Summary

• Soma Gold Corp. has received the first shipment of material from the formalized Diamantina small mine at its El Limon mill in Colombia, marking the completion of the formalization process for the first of 24 targeted small mines.
• The company reported 2025 gold equivalent (AuEq) production of 18,670 ounces, which was below expectations due to a two-month work stoppage caused by a strike and subsequent restart difficulties.
• Operational updates include the arrival of ore-sorting equipment at the El Bagre mill (expected to increase throughput to 700-750 t/d by mid-2026) and the Nechi mine permit application being 95% complete, with submission expected in April 2026.

Key Details

• Diamantina Mine Formalization:
  • First small mine completed formalization under Colombian law after five years of effort.
  • Formalization contract allows Soma to purchase mineralized rock in exchange for a percentage of gold contained in each shipment.
  • Permitted production capacity: up to 40 metric tonnes per day, with target rate expected by midyear.
  • Currently processing 1,700 metric tonnes of stockpiled material from Diamantina at the El Limon mill.
• Production Metrics:
  • 2025 AuEq production totalled 18,670 ounces.
  • Production missed expectations due to a two-month strike-related work stoppage and hiring difficulties.
  • Mechanical issues identified during restart have been addressed; normal operations have resumed.
• Mill Operations & Capacity:
  • El Limon mill restarted in Q3 2025 to increase total milling capacity.
  • El Bagre mill is installing ore-sorting equipment (arrived in Colombia); installation and testing expected by mid-2026.
  • Full commercialization of ore-sorting technology expected in the second half of 2026.
  • Expected throughput increase at El Bagre mill from 450 t/d to 700-750 t/d once ore-sorting is operational.
• Nechi Mine Status:
  • Final permit submission is ~95% complete.
  • PTO (mining permit) application expected to be submitted in April 2026.
  • Permit approval anticipated before end of 2026.
  • Once constructed, Nechi is expected to provide 250 t/d of feed to El Bagre mill.
  • Incremental production expected: ~25,000 gold equivalent ounces per year.
• Strategic Context:
  • Diamantina is the first of 24 small mines in various stages of formalization.
  • 23 other mines are in the process; several expected to start supplying El Limon later this year.
  • Other small mines are expected to initiate formalization with the company.
  • CEO notes delays are due to strike effects and labor shortages.

Administrative Details

• Equity Incentive Plan Grants:
  • Board approved grants of 1,118,334 stock options, 159,910 RSUs, and 76,756 DSUs to directors, officers, and employees.
  • Stock Options: Exercisable at $2.06/share; expire 5 years from grant date. Vesting: 25% immediately, 25% at 6 months, 25% at 12 months, 25% at 18 months.
  • RSUs: Vest in three equal annual instalments.
  • DSUs: Granted to certain directors; vest per plan terms.
  • Related party transaction exemptions applied under MI 61-101 as fair market value of grants to related parties does not exceed 25% of market capitalization.

Notable Quotes

• Geoff Hampson, CEO: "We are pleased that, after many years of effort, we have completed the formalization process for the first small mine on our property. We expect this will be a catalyst to begin formalizing additional small miners and to expedite the completion of the process for those already in the pipeline."
• Geoff Hampson, CEO: "We are several months behind schedule in increasing production from both the company's small mines and from formalized small miners. These delays have been caused by the lingering effects of last year's strike, which halted all work, as well as the difficulty in hiring qualified workers in the region."