ATLY:CC - Altaley Mining Files Tahuehueto PFS Technical Report with Significantly Improved Project Economics

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Altaley MiningCorporation ( TSXV:ATLY ) ( OTCQX:ATLYF ) ( FSE:TSGA ) ("Altaley" or the "Company") is pleased toannounce that it has filed an updated technical report, including aPreliminary Feasibility Study (“PFS”), for its Tahuehueto Projectin Durango, Mexico. (the “Project”) on the System for ElectronicDocument Analysis and Retrieval (“SEDAR”) at www.sedar.com in accordance withNational Instrument 43-101 – Standards of Disclosure for MineralProjects (“NI 43-101") and in accordance with CanadianInstitute Mining’s (“CIM”) Best Practice Guidelines for theEstimation of Mineral Resources and Mineral Reserves.

The Company made apreliminary disclosure of the PFS economics in a new release datedMarch 7, 2022, which results contained errors related to net smelterreturn calculations that under-estimated the PFS economics. With thefiling of the PFS report, Altaley now updates the March 7, 2022disclosure with a significant increase of approximately 30% to theoverall economics of the project.

• 2022Prefeasibility Study improves 2017 PFS increasing throughput to 1,000tonnes per day returning a post-tax NPV of NPV of $161.3 million, at adiscount rate of 5%, ($141.8 Million and $131. 8 million at discountrate of 8% and 10% respectively).
• IRR of 65%with a 2-year payback period (5% discountrate).
• Total Life of Mine Capital Cost estimateof US $56.9 million with project construction over 95% complete andinitial pre-production targeted during April2022.
• Life of Mine All in Sustaining costs(AISC) estimated at US $844 per gold equivalent ounce at$1,647.52/ounce Au, $21.64/ounce Ag, $0.92/pound Pb, $1.14/pound Znand $3.60/pound Cu)
• Proven & ProbableReserves of 3.58 million tonnes grading 2.55g/t gold, 50.06 g/tsilver, 1.92% zinc, 1.11% lead, 0.26%copper.
• 10.9-year Life of Mine (LOM) utilizingmostly low-cost bulk underground Sub-level Open Stoping mining methodwith average annual production of 25,987 oz of gold, 453,952 oz ofsilver, 827 tonnes of copper, 3,155 tonnes of lead and 6,123 k-lbs ofzinc.
• Significant opportunities exist toexpand the Projects Mineral Resources and Reserves base with near mineand regional exploration. Altaley plans to aggressively pursueexploration as soon as free cash flows allow or alternative funding issecured.

The technical report, entitled “NI43-101Technical Report Preliminary Feasibility Study, Altaley MiningCorporation, Tahuehueto Project, Durango, Mexico” and dated with anEffective date of February 23, 2022 and report date of April 21, 2022,was authored by Mr. Scott E. Wilson, CPG, President of ResourceDevelopment Associates Inc., an independent consulting geologistspecializing in Mineral Reserve and Resource calculation reporting,mining project analysis and due diligence evaluations. He is acting asthe Qualified Person, as defined in NI 43-101, for the overalltechnical report, and the Mineral Resource and Mineral ReserveStatement. Mr. Wilson has over 32 years' experience in the miningindustry and is a Registered Member (#4025107RM) of Society forMining, Metallurgy and Exploration, Inc. Mr. Wilson and ResourceDevelopment Associates Inc. are independent of the Company under NI43-101.

“Asour Tahuehueto Gold Mine Project construction nears completion we arehappy to disclose final results of the project’s updatedpre-feasibility study which continues to show robust economics .”said Ralph Shearing, CEO & President. “ The disclosure andfiling on SEDAR of the updated PFS and reserve and resourceestimation, along with our anticipated May startup of pre-productionoperations at Tahuehueto, are the culmination of many years of hardwork by the Altaley team and as our Tahuehueto mine ramps up to fullproduction during Q2-Q3 2022, increased cash flow will allow Altaleyto recommence exploration drilling and unlock the ultimate potentialof our Tahuehueto district scale project .”

Pre-Feasibility StudyOverview

TheProject configuration evaluated in the PFS is a conventional,owner-operated underground mine, that will utilize contractor miningin a combination sub-level long hole open stope and cut and fillmining methods. Mill feed will be processed in a 1,000 tonnes per daycomminution circuit consisting of primary and secondary crushing, wetgrinding to an initial two-circuit flotation/concentration plantproducing precious metal rich lead and zinc concentrates; andsubsequently, in second year of operation a third circuit added toproduce copper concentrates.

The PFS was prepared by independent third-partyconsultants, Resource Development Associates Inc. (“ RDA ”)and integrated updated geological interpretations based on expandedknowledge of the mineral deposit, geological modeling, an optimizedmine plan and production schedule, additional metallurgical work, amill currently under construction and updated cost estimates, all ofwhich de-risk the Project.

The PFS provides information on the optimizedProject with higher throughput rates, updated resource estimate, andcapital and operating cost estimates as compared to the projectevaluated in the National Instrument 43-101 – Standards ofDisclosure for Mineral Projects (“NI43-101”) January 2017Technical Report (the “2017 Report”). The final version of the NI43-101 technical report containing the PFS has been filed on SEDAR. Asa result of the changes to the Project as evaluated in the PFS,including differences in mineral resource estimation methodology andchanges to the economic parameters applied to the geologic block model(metal selling prices, recovery, CAPEX, and OPEX), all of whichresulted in a change in mineral resources, the Project as evaluated inthe 2017 Report is no longer considered current and the 2017 Reportshould therefore not be relied upon by investors.

The engineering designto estimate capital costs used in the PFS are within a 20% accuracyhowever, the Company in 2021 elected to proceed with construction ofthe project which, as of the date of this press release, 95% ofrequired construction capital has been invested in the project,advancing construction past 95% completion with most capitalexpenditures completed and therefore capital equipment andconstruction costs are known with substantially increasedaccuracy.

TheCompany cautions that the PFS is preliminary in nature and is based ontechnical and economic assumptions which could be further refined andevaluated in a full feasibility study. The PFS is based on an updatedProject reserve and resource estimate effective as of February 23,2022. As the Company has elected to bring the Tahuehueto MiningProject into production without the project’s mineral reservessupported by a full feasibility study, the Company cautions that thiscould result in a higher risk of economic or technical failure of theoperation that if a full feasibility study had been prepareddemonstrating economic and technical viability. There are noassurances that the Tahuehueto Mining Project will be found to beeconomic.

Thefollowing is a summary of the material aspects and assumptions of thePFS. Investors are urged to review the complete NI 43-101 report filedon SEDAR for complete details of the PFS.

Project Location

The Tahuehueto Project is located in the northwest portion ofthe state of Durango, Mexico, approximately 250 km northwest of thecapital city of Durango. The Project is located about 25 km north ofthe Topia polymetallic-silver mine, 48 km northwest of the La Cienegagold, silver, base metal mine, 85 km southwest of the Guanacevi silverdistrict, 280 km southeast of the Palmarejo silver and gold mine, and150 km northwest of the San Dimas mining district, most notable forthe Tayoltita silver and gold mine.

Summary of Results of the 1,000 Tonnes Per Day PFS

Table 1

Table 2

* 5% discount considered reasonable dueto advanced state of Tahuehueto construction where 95% ofrequired capital has been invested in the project, advancingconstruction past 95% completion with most capital expenditurescompleted and therefore capital costs are known with substantiallyincreased accuracy.

**IRR is calculated with approximately $34million of pre-Jan 2022 expenses on the project. $19 million ofpre-2015 costs of exploration, acquisition and carryingcosts have been treated as sunk costs .

Sensitivity Analysis

Table 3 below shows the after-tax sensitivity ofNPV, IRR to varying gold prices (US Currency)

Table 3

Table 4 below shows theafter-tax sensitivity of NPV, IRR to various gold mill recoveries. (USCurrency)

Table 4

Capital Costs

Key capital expenditures for initial and sustaining capitalrequirements are identified in the following Table 5. (All figures inUS$ Millions)

Table 5

* From Feb 28, 2022 topositive cash flow date

** From reaching positivecash-flow date to January 2023

*** From Jan 2023 toend of mine life

**** Life of mine capital costs and Pre-Jan 2022 capitalizedcosts

All-inSustaining Costs

Table 6 highlights the all-in sustaining costs and the all-incost over the life of the Project.

Table 6

Rounding of some figures may lead to minor discrepancies intotals.

1. Includes streaming, penalties, and shippingcosts.
2. Includes all minedevelopment capital expenditures after the first 12 months ofproduction.
3. Includesinitial capital expenditures for the first 12 months ofproduction.
4. All-InSustaining Costs and All-In-Costs are non-GAAP measures. See referenceto “Non-GAAP” below.

Annual Metal Production

Project Mineral Reserves

Table 7 below presents the Mineral Reserve estimatefor the Project as of February 23, 2022. These Proven and ProbableMineral Reserves formed the basis of the economic evaluation of theProject and are based on a metal selling prices of $1647.5 USD/Au oz,$21.64 USD/Ag oz, $0.92 USD/Pb lb, $1.14 USD/Zn lb, and $3.6 USD/lbCu. The economic assumptions and parameters used for the calculationof reserves are the same as those used for the PFS financial model.

TahuehuetoProject Mineral Reserve Estimate

Table 7

Mineral Reserves are estimated using metalprice forecasts of $0.92/lb for lead, $1.14/lb for zinc, $3.60/lb forcopper, $1,647.50/oz for gold and $21.64/oz for silver. Totals may notadd due to rounding. The foregoing mineral reserves are based uponand are included within the current mineral resource estimate for theProject.

Project Mineral Resources

The mineral resource estimates set forth in the PFS(“2022 MRE”) have been prepared by Resource Development AssociatesInc. (“RDA”).

Tahuehueto Project Mineral resource Estimate

Table 8

Mineralresources are not mineral reserves and do not have demonstratedeconomic viability. Mineral resource estimates include inferredmineral resources which are considered too speculative geologically tohave economic considerations applied that would enable them to beclassified as mineral reserves. There is no certainty that inferredmineral resources will be converted to measured or indicatedmineral

resources. Gold equivalency was estimated using metalselling prices of US$1,650/Oz Au, US$21.02/Oz Ag, US$0.91/Lb Pb,US$1.15/Lb Zn and US$3.70/Lb Cu.

Resources were estimated using assay results from37 reverse circulation drill holes, 215 diamond core drill holes and2,714 channel samples. Mineralization was identified in 9,599 assays.Assays were composited to nominal 1.5-meter lengths totalling 2,213composites which were used to estimate mineralization into the veinsystem at Tahuehueto. A block model was constructed around theTahuehueto vein system. Mineralization was estimated using InverseDistance Cubed (ID3) interpolation parameters. The selective miningunit for the project is 1.5-meters. Therefore, mineralization wasestimated into blocks no smaller than 1.5-meters to determinemineralization that has the reasonable prospects for eventual economicextraction

Gradeand Tonnage Sensitivity to Cut-off Grades

Mineral resources at Tahuehueto are sensitiveto the selection of reporting cut-off grade. To illustrate thissensitivity, the block model quantities and grade estimates within themineral deposit are presented in table 9 at linear increases incut-off grades for measured, indicated, and inferred mineralization.The same results are presented graphically in Figure 1. Mineralizationis constrained to material that meets the reasonable prospects test.The numbers presented in Table 9 should not be misconstrued with amineral resource statement. The figures are only presented to show thesensitivity of block model estimates to the selection of a cut-offgrade. Mineral resources are not mineral reserves and do not havedemonstrated economic viability.

Table 9

Mineralresources that are not mineral reserves do not have demonstratedeconomic viability. Mineral resource estimates do not account formineability, selectivity, mining loss and dilution. These mineralresource estimates include inferred mineral resources that arenormally considered too speculative geologically to have economicconsiderations applied to them that would enable them to becategorized as mineral reserves. There is also no certainty that theseinferred mineral resources will be converted to measured and indicatedcategories through further drilling, or into mineral reserves onceeconomic considerations are applied.

Detailed Report

A NI 43-101 compliant technical report thatsummarizes the results of the PFS has been filed on SEDAR atwww.sedar.com and is available on the Company’s websitewww.altaleymining.com.

Mr. Scott E. Wilson, CPG, President of Resource DevelopmentAssociates Inc., is an independent consulting geologist specializingin Mineral Reserve and Resource calculation reporting, mining projectanalysis and due diligence evaluations. He is acting as the QualifiedPerson, as defined in NI 43-101, for the overall technical report, andthe Mineral Resource and Mineral Reserve Statement. Mr. Wilson hasover 32 years’ experience in the mining industry and is a RegisteredMember (#4025107RM) of Society for Mining, Metallurgy and Exploration,Inc. Mr. Wilson and Resource Development Associates Inc. areindependent of the Company under NI 43-101.

Mr. Wilson has reviewed and approved the technical informationsummarized in this news release.

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 is targeting initial pre-production in May 2022 and ramping upto full production capacity during Q2-Q3 2022.

Campo Morado isan operating 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 and elected to initiateconstruction to go into production at Tahuehueto prior to completingfull feasibility studies demonstrating economic and technicalviability. Accordingly, readers should be cautioned that Altaley’sproduction decisions have been made without comprehensive feasibilitystudies of established reserves at Campo Morado and prefeasibilitylevel reserves at Tahuehueto, such that there is greater risk anduncertainty as to future economic results from the Campo Morado mineand at Tahuehueto mine where reserves are established to theprefeasibility level of confidence and therefore a higher technicalrisk of failure than would be the case if full feasibility studieswere completed and relied upon to make production decisions. Altaleyhas completed a preliminary economic assessment (“PEA”) miningstudy on the Campo Morado mine and a prefeasibility study (‘PFS”)at Tahuehueto mine that provides a conceptual life of mine plan and apreliminary economic analysis based on the previously identifiedmineral resources (see News Release dated November 8, 2017, April 4,2018, and April 25, 2022).

Statements contained in this newsrelease that are not historical facts are "forward-lookinginformation" or "forward-looking statements"(collectively, "Forward-Looking Information") within themeaning of applicable Canadian securities laws. Forward-LookingInformation includes but is not limited to conditions or financialperformance that are based on assumptions about future economicconditions and courses of action; the timing and costs of futureactivities on the Company's properties, such as production ratesand increases; success of exploration, development and bulk sampleprocessing activities, and timing for processing at its own mineralprocessing facility 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: the continuity of the price ofgold and other metals, economic and political conditions, andoperations. Forward-Looking Information involves known and unknownrisks, uncertainties and other factors which may cause the actualresults, performance, or achievements of the Company to be materiallydifferent from any future results, performance or achievementsexpressed or implied by the Forward-Looking Information. There can beno assurance that Forward-Looking Information will prove to beaccurate, as actual results and future events could differ materiallyfrom those anticipated in such statements. Accordingly, readers shouldnot place undue reliance on Forward-Looking Information. Except asrequired by law, the Company does not assume any obligation to releasepublicly any revisions to Forward-Looking Information contained inthis news release to reflect events or circumstances after the datehereof or to reflect the occurrence of unanticipated events.

Contact Details

Altaley MiningCorporation

Glen Sandwell

+1 604-684-8071

ir@altaleymining.com

CompanyWebsite

https://www.altaleymining.com/

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