Orosur Mining Inc. announced an update on the progress of exploration activities at its El Pantano gold and silver project (Project or El Pantano) in Argentina. The Project is an early-stage gold/silver exploration project in Santa Cruz province, southern Argentina. The Project comprises approximately 600km2 of contiguous licences in the prolific Deseado Massif region, roughly 45km from Anglo Gold'sCerro Vanguardia mining camp.

The Project is subject to an Exploration & Joint Venture (JV) agreement (Agreement) with private Argentinean company DESEADO DORADO S.A.S and its shareholders (Deseado), the details of which were announced on February 15th 2022. At the time the JV commenced, the Project was an almost untouched grass roots gold/silver exploration project. Some historical sampling and geophysics had been done in the southeast of the Project, but 80% of the Project area had never been explored and no drilling has ever been undertaken anywhere within the Project area.

The Company entered the JV on the basis of regional geological data that indicated the potential for a major, previously unknown district-scale low-sulphidation epithermal system. In addition to the highly prospective geology, the Project also offered a large contiguous land package, zero entry cost, and a low-cost pathway to 100% ownership. Post signing the Agreement, the Company immediately began the process of geological mapping and geochemical sampling across the licence package.

This process is now largely complete, and data collected have supported the Company's initial view of the Project's prospectivity. It is now planned to move to the next phase of direct targeting. Environmental permits have been submitted which would allow for drilling by the year end.

The Deseado Massif plays host to a number of world class gold and silver deposits, the largest of which is the giant Cerro Negro deposit being exploited by Newmont Mining. The Deseado Massif is a geological province in Southern Argentina, covering roughly 60,000km2 and consisting largely of felsic volcanics related to widespread mid to late Jurassic volcanism. Mineralisation in the region is related to the Jurassic break up of Gondwana and opening of the Atlantic Ocean.

There are a variety of mineralisation styles, but the most significant are of the rift related, low-sulphidation style. Extension associated with this volcanism created regional scale SE-NW striking rifts that acted as conduits for metal bearing fluids that were the source of most significant mineral deposits. These rifts can be tens of km long and several km wide and in cross section can be presented as flower structures as the rifts widen out toward the surface and the binding pressure of surrounding rocks decreases.

Importantly this same reduction of pressure allows the metal bearing fluids to boil, and it is this boiling that is the primary mechanism for gold deposition. Above this boiling zone, the fluids continue upward, but may be now devoid of gold, being reflected as barren quartz veins, hot spring systems and other forms of pervasive surface silicification. As a result, gold surface geochemistry is often not an effective indicator of underlying potential.

Attention must instead be focused on geochemical sampling of more mobile pathfinder elements (such as arsenic (As), mercury (Hg) and base metals) and mapping of silica textures that give guidance as to the vertical level within the epithermal system. The Company is optimistic that it has identified a major, hitherto unknown low-sulphidation epithermal system, potentially similar in scale to that which produced the giant precious metal deposits at Cerro Negro, Cerro Vanguardia and others. The objective of the next phase of work will be to focus down to areas within this rift system that may be the most attractive structural conduits for fluid flow and mineral deposition.

Work programs may include more detailed geochemistry, electrical geophysics (resistivity and IP) and reconnaissance drilling. Data will be assessed further, and options developed over the winter recess. In the meantime, the Company has completed and submitted all the necessary environmental studies that are required as part of the Santa Cruz Province drilling permit process.

Consideration of these reports and drilling approval is expected to take several months and it is thus anticipated the Company will have drilling permits later in the year. Field work at El Pantano has now wound down for the winter and technical teams will shift focus to the Company's Anzá gold project in Colombia. As has been announced, the Company is in the process of reassuming 100% ownership of the Anzá project from its joint venture partners.

While this complex commercial process continues, Orosur geologists are currently in Colombia carrying out the necessary planning and permitting required to allow commencement of drilling activities as soon as possible after completion of the transaction.