SOMA ANNOUNCES AN AGREEMENT TO END THE STRIKE

On November 5, 2025, Soma Gold announced it has reached an agreement with the Sintramienergetica Nacional union to end the 57-day strike at its El Bagre mining operation in Colombia. The resolution was achieved through mediation by the Colombian Vice Ministry of Labor. The company plans to restart operations as soon as possible. CEO Geoff Hampson stated that the company will analyze the financial impact of the strike and provide updated guidance for the remainder of 2025, but confirmed that guidance for 2026 will remain unchanged.

The resolution of the 57-day strike is materially positive as it removes a major operational overhang and significant uncertainty that has plagued the company since the strike began on September 10, 2025. The halt in production at the main El Bagre complex effectively shut down the company's primary revenue stream. Resuming operations is critical for restoring cash flow and getting the company's growth plans back on track.

From a critical perspective, several points temper the good news: - Financial Damage: A 57-day shutdown represents a significant loss of production and revenue for Q3 and Q4 2025. The company explicitly states guidance for 2025 will be updated, which will undoubtedly be a material downward revision. The full financial impact is yet to be quantified. - Unknown Costs: The press release provides no details on the terms of the new labor agreement. It is highly probable that the company had to make concessions, leading to higher labor costs going forward. This could negatively impact operating margins and cash costs per ounce, which stood at US$1,438/oz for H1 2025. - Return to Status Quo: This news does not represent a fundamental improvement in the business but rather a return to the pre-strike operational state. The key positive is the confirmation that 2026 guidance is unchanged, suggesting management believes the long-term, two-mill production growth plan remains intact.

In the context of recent news, the strike was a major setback to an otherwise positive series of developments, including the August 2025 financing and debt-for-equity swap that strengthened the balance sheet, the restart of the El Limon mill, the acquisition of the high-grade Escondida mine, and promising ore-sorting test results. Ending the strike allows management to refocus on these growth initiatives. The market's positive reaction will likely be weighed against the upcoming negative revision to 2025 guidance.

Soma Gold Corp. is a gold mining company focused on production and exploration in Antioquia, Colombia. Its flagship asset is the El Bagre Gold Complex, which includes the producing Cordero mine and the El Bagre mill. The company's strategy is focused on organic growth through a two-mill approach. This involves operating the El Bagre mill and restarting its second facility, the El Limon mill. Growth is expected to be fueled by expanding resources at its existing mines, acquiring and developing nearby high-grade satellite deposits like La Escondida, formalizing agreements with local small-scale miners, and aggressive exploration on its extensive land package along the prospective Otu fault. The company is also testing ore sorting technology to potentially increase throughput and grade without major capital expenditure on mill expansion.