Soma working toward full production at El Limon by Q1

Executive Summary

• Soma Gold Corp. provided an operational update on its El Limon mill, which is currently in a ramp-up phase and has begun producing gold from the Merril Crowe circuit (40kg precipitate).
• The company announced the appointment of Julian Storz as Vice-President, Business Development, to lead inorganic growth and M&A efforts.
• A labor strike at the El Bagre mill and Cordero mine continues; negotiations are ongoing with the Colombian Ministry of Labor, with a potential binding arbitration deadline approaching on November 7.

Key Details

• El Limon Mill Operations:
  • The mill is operating and in the planned ramp-up stage.
  • Ball mill No. 1 is operational; bull gear replacement for mill No. 2 is underway.
  • First gold production from the Merril Crowe circuit occurred last week, yielding 40 kilograms of precipitate.
  • Additional automation is being installed to resolve operational disruptions related to the thickener tank.
  • The company expects the mill to run at full capacity (200 tonnes per day) by December 2025, with full production at 200 tpd anticipated by Q1 2026.
  • Production at Limon is estimated to contribute 500 to 1,000 ounces of gold per month.
  • Future potential: Once ore-sorting equipment testing is complete, management may install it at El Limon to increase production to 400–425 tpd.
• Labor Strike at El Bagre:
  • Unionized employees at El Bagre mill and Cordero mine are on strike.
  • Negotiations are assisted by the Colombian Ministry of Labor.
  • Key disagreement remains the union's demand for co-administration rights.
  • Under Colombian law, if the strike lasts 60 days, it proceeds to binding arbitration.
  • November 7 marks the 60th day since the strike began; workers are required to return to work ~10 days after this date if arbitration is triggered.
  • The company believes it has made a generous offer exceeding recent contract terms negotiated by the same union with other regional mining companies.
• Management Appointment:
  • Julian Storz appointed as Vice-President, Business Development, based in Toronto.
  • Storz brings over a decade of experience in corporate finance, banking, M&A, and capital markets, previously serving as Director, Investment Banking – Mining and Metals at an independent investment bank.
  • Role involves pursuing accretive inorganic growth, M&A, and strategic initiatives to create jurisdictional diversity.
• Strategic Context:
  • El Limon was the first asset acquired in Colombia; upgraded from 50 tpd to 225 tpd in 2018-19.
  • El Bagre mill has a capacity of 450 tpd.
  • Combined milling capacity of the two mills is 675 tpd.
  • Ore sources have been developed via the Aurora mine, Escondida mine purchase, and formalization of small miners, allowing Limon to restart.

Notable Quotes

• Julian Storz, VP, Business Development: "I am excited to join Soma at this pivotal stage... Soma has built a robust platform with meaningful organic growth opportunities that position the company to scale production and pursue additional value-accretive initiatives."
• Geoff Hampson, CEO: "We are very thankful for the assistance and guidance provided by the Colombian Ministry of Labor... We believe we have made a generous offer that exceeds the contract terms recently negotiated by the same union with other mining companies in the region. If the strike continues beyond the Nov. 7 milestone, the company will abide by the terms of the arbitration process."
• Geoff Hampson, CEO: "I am pleased to see the El Limon mill producing again... While throughput is limited during the ramp-up, we expect to reach nameplate capacity of 200 tpd by year-end."