Denarius Metals Corp. provided an update on its activities to start up production at its 100%-owned Zancudo Project in Colombia and its recently acquired 50%- owned Aguablanca Project in Spain. Zancudo Project: Permitting: The Zancudo Project encompasses three adjoining mining concession contracts and one exploration license covering an area of approximately 1,054 hectares.

For concession 5521, which includes the historic producing Independencia Mine, the Mining Technical Work Plan (Programa de Trabajo y Obras, PTO) was approved in December 2023 by the Secretary of Mines of Antioquia. This permit allows the Company to start mining activities within this area at the Zancudo Project once the Environmental Impact Study (EIS) is approved by Corantioquia, the local environmental authority. The EIS was submitted to Corantioquia in November 2023 and the Company expects to receive approval by April 2024.

Integration of the other two concessions and the exploration license through a Plan of Exploration and Exploitation (Plan Único de Exploración y Explotación, PUEE) was also approved in December 2023 by the Secretary of Mines of Antioquia. The EIS noted above will also apply to the area covered by the PUEE. Mining: The nearly 1 km main ramp in the Independencia Mine has been rehabilitated by the local mine contractor to enable initial underground conventional mining rates of 200 tonnes per day (tpd).

Railway tracks are currently being laid in the mine by the local mine contractor to transport material out of the mine to the crushing plant. The portal to the Independencia Mine has also been connected to the national electric power grid. Processing: The Company ordered a 1,000 tpd processing flotation plant in October 2023 that will produce high-grade gold-silver concentrates that will be delivered to a port in Colombia and sold to an international customer under a long-term offtake contract.

The plant is being manufactured by Jining Jidda Railway Equipment Co. Ltd, China. Delivery of all equipment from the Qingdao Port, Shandong, China, is expected to take place in several shipments from March through May 2024.

After installation and commissioning, the new plant is scheduled to be operating in December 2024. Refurbishing and improvement of the existing crushing plant, set up to process 500 tpd, is nearing completion and will be operational by the time the EIS is received. The construction of a new 3.7 km access road to provide an alternative route to avoid traffic through the town of Titiribí is advancing on schedule.

The new access road connects the mine and processing facilities directly to the main highway that leads to Medellin and also to the port facilities. Next Steps: Earthworks for the processing plant construction are expected to begin in March and to be completed in June. The design and engineering of the onsite tailings storage facility (TSF) is on track.

TSF construction will take place over the summer. Evaluation and design of a secondary ramp to expand access to the mineralization and improve efficiency in the mine is in process. Development is expected to be carried out over the summer and to be completed prior to the startup of the new processing plant.

A 10,000 meters drilling campaign split between in-fill drilling, aimed at converting some of the current Inferred Resource to an Indicated Resource category, and step-out drilling, aimed at improving the known mineralization in the northern area of the deposit, is scheduled to start in mid- March. Start of production, initially targeted at 200 tpd and then increasing to 500 tpd by the end of 2024, is expected one month after the EIS is approved. Mining operations will initially focus on the existing mine workings and veins of the Independencia mine.

The Company intends to crush the ore from this initial production onsite and then, subject to finalizing satisfactory arrangements, have it processed at a third-party plant to generate some early-stage cash flow while the processing plant construction is in process. The Company is in the final stages of formalizing the long-term offtake contract for the sale of the gold-silver concentrates. Aguablanca Project: Permitting: The Underground Mining Plan for the Aguablanca mine was approved in August 2023 by the state mining authority.

The EIS for the underground mining project, approved in 2017 by the Secretary of State for the Environment, remains in force. To start the dewatering of the existing open pit to gain access to the underground mine workings, the only permit still pending is the Water Use Concession to be granted by the Guadalquivir Hydrographic Confederation, the regulatory district authority responsible for water resource management. Approval of this permit is expected in March.

Next Steps: Within the next month, the Company expects to commence the detailed assessment of the condition of the existing 5,000 tpd processing facility to determine the extent of the refurbishment program required to process nickel-copper ore from the Aguablanca underground mine. As the processing facility has been maintained in good condition, maintenance activities to resume operation of the plant are expected to last no longer than six months. Once dewatering is completed, the underground assessment of ventilation, ramp access and power in the mine will commence.

Resource Development Associates, engaged by the Company to prepare a preliminary feasibility study (PFS) for a 2,500 tpd operation based on material mined from the Aguablanca underground mine, expects to have the results of the PFS available by the of March 2024. The Company currently expects that the restart of production from the Aguablanca mine will occur within a year following the commencement of the dewatering program.