ATLY:CC - Altaley Mining Closes Non-Brokered Private Placement and Reports on Q1 2022 Financials

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Altaley MiningCorporation (TSXV: ATLY) (OTCQX: ATLYF) (FSE: TSGA) (the" Company " or " Altaley ") is pleased toannounce that it has closed the final tranche (the “ FinalTranche ”) of its non-brokered private placement previouslyannounced on March 17, 2022 and has released its Q1 2022 financialresults.

PrivatePlacement

TheCompany has closed a Final Tranche and issued 2,169,418 units (each, a" Unit ") at a price of $0.35 per Unit for gross proceedsof $759,296.30. In total, the Company issued 14,285,714 Units at aprice of $0.35 per Unit for aggregate gross proceeds of $5,000,000.Each Unit consists of one common share (a " CommonShare ") and one-half of one common share purchase warrant(each whole such warrant, a " Warrant "). Each Warrantwill entitle the holder to purchase one additional Common Share of theCompany at a price of $0.55 per Common Share within 24 months from therelevant closing date (the " Closing Date "), subject toan acceleration clause. If, at any time between the Closing Date andthe expiry date, the closing price of the Company's common shareson the TSX Venture Exchange (the ” Exchange ”) exceeds $0.75for 15 consecutive trading days, then the Company will earn the right,by providing notice to the warrant holder via news release or writtennotice, to accelerate the expiry date of the warrants to 4 p.m.(Vancouver time) on that date which is 30 days from the date of theacceleration notice. See April 21, 2022, news release regarding firsttranche closing. All securities issued under the Private Placement aresubject to a hold period expiring four months and one day after theClosing Date. Total issued and outstanding Common Shares of theCompany after completion of the Private Placement is277,894,422.

Inaccordance with applicable securities laws and the policies of theExchange, the Company will issue 42,000 Units of the Company as afinder’s fee to certain finders in connection with the FinalTranche.

Aportion of the Final Tranche closing was purchased by an affiliate ofa director of the Company. Accordingly, this participation in thePrivate Placement is considered a related-party transaction as suchterm is defined under Multilateral Instrument 61-101 (Protection ofMinority Security Holders in Special Transactions). The Company isrelying on exemptions from the formal valuation and minorityshareholder approval requirements provided under MI 61-101 (sections5.5(b) and 5.7(1)(b) of MI 61-101) on the basis that the Company islisted on the Exchange (and has no shares listed on the Toronto StockExchange or certain other named exchanges) and the fair market valueof the securities distributed to the related party under the PrivatePlacement was less than $2,500,000. The Private Placement was approvedby the board of directors of the Company, which includes at least oneindependent director who is not an employee of the Company, whichconsidered the best interests of the Company in completing the PrivatePlacement. The Company did not file a material change report more than21 days before the expected closing of the insider transactions as thedetails of the Private Placement and the participation therein byrelated parties of the Company were not settled until shortly prior toclosing and the Company wished to close on an expedited basis forsound business reasons and in a time frame consistent with usualmarket practices for transactions of this nature.

The net proceeds fromthe Units will be used by the Company for working capital purposesrelated to the ramp-up of mining and milling operations at theTahuehueto Mine and for general working capital purposes.

The private placementfinancing is subject to final Exchange approval

Q1 2022Financials

Duringthe three months ended March 31, 2022, Campo Morado produced 9,657tonnes of zinc concentrate grading an average of 46% zinc, 1.58 g/tgold, 609 g/t silver and sold approximately 9,781 tonnes of zincconcentrate generating Q1-2022 revenue from zinc concentrate ofUS$12.34 million. Additionally, produced 2,379 tonnes of leadconcentrate grading an average of 19% lead, 2.37% copper, 4.66 g/tgold, 647 g/t silver and sold 2,626 tonnes generating Q1-2022 revenuefrom lead concentrate of US$1.84 million.

Approximately 176,610 tonnes of mineralizedmaterial were mined with average grades of 3.59% zinc, 0.91% lead, 103g/t silver, 0.83 g/t gold achieving recoveries of 70.1% in zinc, 27.7%in lead, 9.8% in gold, and 27.6% in silver.

An estimated 176,610tonnes of mineralized material were processed through the processingplant at a C1 cash cost per lb of US$1.26.

Ralph Shearing states, "Q1 2022 was adifficult quarter at Campo Morado where mechanical issues resulting inexcessive mill downtime combined with lower recoveries, lower millfeed head grade mineralized material plus increased off taker chargesall combined to substantially reduce operating profit and increasecosts during the quarter. The mechanical issues have been resolved andthe mine plan is producing increased grade mill feed with recoveriesof zinc back on track. In addition, the mine started copperconcentrate production during mid-May which we are expecting will addan additional revenue source to the project. We anticipate a muchimproved second quarter.”

Thefollowing table and subsequent discussion provide a summary of theoperating performance of the Company for the three months ended March31, 2022, and 2021.

Campo MoradoMine

Production and concentratesales in Q1-2022 were negatively affected compared to all quarters of2021 as a result of the following;

• lost production days largely related tomechanical issues with the SAG mill reduction gear box and scheduledmaintenance, where a combined 11 days of operation were lost duringthe quarter,
• maintenance costs for both plants increased as aresult of the above mechanical issue.

• average head gradesand recoveries were lower by the following amounts:

  • Gold Head Gradefrom 1.07 g/T 2021 to 0.82 g/t 2022

  • Silver Head Gradefrom 124.7 g/t 2021 to 102.2 g/t 2022

  • Au recoveriesfrom 13% in Zn con and 8% in Pb con to 10% and 6%respectively

  • Ag recoveries from 35% in Zn con and 9% inPb con to 30% and 7% respectively

  • Pb recoveries from 29%to 25%
• approximately 75% increase in offtakecharges in Q1 2022 vs Q1-2021 (9% increase Q1-2022 vs Q4-2021) largelyrelated to rollback, treatment, and escalator charges.

The graphics below illustrate changes incosts, treatment charges, and credits between Q1-2021 andQ1-2022.

About Altaley MiningCorporation

Altaley Mining Corporation is a Canadian basedmining company with two 100% owned Mexican gold, silver, and basemetal mining projects.

Altaley's Tahuehueto mining projectis in north-western Durango State, Mexico where construction has beenadvanced to near completion on its 1,000 tonne per day processingfacility and related mine infrastructure to initiate production ofgold, silver, lead, and zinc in concentrates at Tahuehueto. TheCompany began initial pre-production in May 2022 and will be rampingup to full production capacity late 2022.

Campo Morado is anoperating polymetallic base metal mine with mining and millingequipment currently producing at an average of 2,200 tonnes per dayand is currently estimated to be Mexico’s 6th largest zincproducer.

Visit: www.altaleymining.com

On Behalf of theBoard of Directors

(signed) “Ralph Shearing”Ralph Shearing,P. Geol,

CEO, President and Director

Cautionary NoteRegarding Production Decisions and Forward-LookingStatements

Neither TSX Venture Exchange nor its RegulationServices Provider (as that term is defined in the policies of the TSXVenture Exchange) accepts responsibility for the adequacy or accuracyof this release.

It should be noted that Altaley declaredcommercial production at Campo Morado prior to completing afeasibility study of mineral reserves demonstrating economic andtechnical viability. Accordingly, readers should be cautioned thatAltaley’s production decision has been made without a comprehensivefeasibility study of established reserves such that there is greaterrisk and uncertainty as to future economic results from the CampoMorado mine and a higher technical risk of failure than would be thecase if a feasibility study were completed and relied upon to make aproduction decision. Altaley has completed a preliminary economicassessment (“PEA”) mining study on the Campo Morado mine thatprovides a conceptual life of mine plan and a preliminary economicanalysis based on the previously identified mineral resources (seeNews Release dated November 8, 2017, and April 4, 2018). ).Furthermore, It should be noted that Altaley intends to commencepre-production and ramp up to full commercial production at Tahuehuetoprior to completing a feasibility study of mineral reservesdemonstrating economic and technical viability. Accordingly, readersshould be cautioned that Altaley’s pre-production and productiondecisions will be made without a comprehensive feasibility study ofestablished reserves such that there is greater risk and uncertaintyas to future economic results from the Tahuehueto mine and a highertechnical risk of failure than would be the case if a feasibilitystudy were completed and relied upon to make such productiondecisions. Altaley has completed a positive pre-feasibility study (the“Pre-Feasibility Study”) and updated mineral reserves/resourcesestimates at its flagship Tahuehueto Mine that provides a conceptuallife of mine plan and a preliminary economic analysis based on a 1,000tonne per day operation (see News Release dated March 7, 2022)

Statements contained in this news release that are nothistorical facts are "forward-looking information" or"forward-looking statements" (collectively,"Forward-Looking Information") within the meaning ofapplicable Canadian securities laws. Forward-Looking Informationincludes but is not limited to conditions or financial performancethat are based on assumptions about future economic conditions andcourses of action; the timing and costs of future activities on theCompany's properties, such as production rates and increases;success of exploration, development and bulk sample processingactivities, and timing for processing at its own mineral processingfacility on the Tahuehueto project site. In certain cases,Forward-Looking Information can be identified using words and phrasessuch as "plans," "expects," "scheduled,""estimates," "forecasts," "intends,""anticipates" or variations of such words and phrases. Inpreparing the Forward-Looking Information in this news release, theCompany has applied several material assumptions, including, but notlimited to, that the current exploration, development, environmentaland other objectives concerning the Campo Morado Mine and theTahuehueto Project can be achieved; that commencement ofpre-production mining and milling operations at Tahuehueto willproceed as planned; the continuity of the price of gold and othermetals, economic and political conditions, and operations.Forward-Looking Information involves known and unknown risks,uncertainties and other factors which may cause the actual results,performance, or achievements of the Company to be materially differentfrom any future results, performance or achievements expressed orimplied by the Forward-Looking Information. There can be no assurancethat Forward-Looking Information will prove to be accurate, as actualresults and future events could differ materially from thoseanticipated in such statements. Accordingly, readers should not placeundue reliance on Forward-Looking Information. Except as required bylaw, the Company does not assume any obligation to release publiclyany revisions to Forward-Looking Information contained in this newsrelease to reflect events or circumstances after the date hereof or toreflect the occurrence of unanticipated events.

ContactDetails

Glen Sandwell

+1 604-684-8071

ir@altaleymining.com

CompanyWebsite

https://www.altaleymining.com/

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