Fox Complex: Extending Mine Life; A New Mine at the Stock Property; Exploration Has Driven the Prospect of Earlier Cash Flow

Core Insights - McEwen Mining Inc. is advancing the Fox Complex, with production planned to start in the second half of 2025, focusing on the Stock Property which connects three gold zones: West, Main, and East [11][12] - Recent exploration has led to a 29% increase in estimated gold resources in the East Zone, contributing to a total of 1,905,000 ounces of Measured and Indicated resources at an average grade of 4.20 g/t Au [11][16] - The Stock Property is expected to provide increased gold production at a lower cost per ounce compared to the Froome Mine due to lower transportation costs, higher mill throughput, and fewer royalties [13] Group 1: Production and Development - Pre-construction activities have begun at the Stock portal, with underground development expected to start in Q3 [1][2] - Mining will commence in the East Zone, which has recently increased resources, allowing for early production and cash flow [2][9] - The Stock Ramp will facilitate access to multiple mineralization sources from the East, Main, and West Zones [2][11] Group 2: Resource Estimates - The updated resource estimate for the East Zone as of May 20, 2024, includes 75,000 gold ounces Indicated and 50,000 gold ounces Inferred [8][25] - The overall Stock resource now contains 281,000 gold ounces of Indicated mineralization at a grade of 3.12 g/t Au and 181,000 gold ounces of Inferred mineralization at a grade of 2.87 g/t Au, marking a nearly 7% increase from the previous estimate [25][26] - The Fox Complex's total resources include 1,905,000 ounces of Measured and Indicated gold and 549,000 ounces of Inferred gold [11][16] Group 3: Drilling Campaigns - The 2024 infill drilling campaign at the East Zone yielded positive results, demonstrating strong continuity between drillhole intercepts [6][7] - Significant drill intercepts include 6.1 g/t Au over 7.8 m and 5.9 g/t Au over 13.5 m, which are well above the East Zone's current average Indicated resource grade [26][27] - The drilling results have been incorporated into the updated resource estimates, enhancing the overall understanding of the mineralization at Stock [8][27]