Operational Update: Tesoro Gold Mine

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Nativo Resources plc (LON:NTVO), which has interests in precious metals mining and production in Peru, provides the following update on the Tesoro Gold Mine ("Tesoro") in southern Peru, which is held by the Company's 50%-owned Peruvian joint venture, Boku Resources SAC ("Boku").

Boku has entered into a sales agreement with a local gold ore processing plant in the Arequipa region, approximately 70km from the mine site, for the purchase of vein material recovered from the Bonanza mine at Tesoro. Under the terms of the agreement, vein material will be assayed and processed, and the measured gold recovered will be priced at the international market spot price less between 20-30%. The processor is targeting recovery rates of around 90% Au.

Since operations began in September 2024, Boku has been crushing and sorting the accumulated stockpile of vein material generated from 46 vertical metres and 64 lateral metres of mine preparation, which amounts to approximately 30 tonnes. This vein material is expected to be collected by the processing plant in December 2024, at the same time as the first production material is transported. The grade will then be assessed by the processing plant laboratory. Based on its own sampling, Boku expects grades of 8-10 g/t Au.

The underground mine continues to be prepared, and simultaneous production will be initiated in December 2024 from blocks one and two. Boku is targeting initial production rates of between 3-5 tonnes per day ("tpd") building to 28 tpd by June 2025 with the incorporation of more development faces and a second shaft.

Stephen Birrell, Chief Executive Officer of Nativo, commented:

"We are excited to have established a commercial arrangement with a local gold ore processing plant to sell Bonanza vein material. The mine is developing in line with expectations. Net income from vein material sales will initially be applied to expanding the mine and production at Tesoro through subsequent shafts and developing our own processing capabilities to retain more value from the mined material."

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