ATLY:CC - Altaley Mining Provides Tahuehueto Pre-Production Update

(NewsDirect)

Altaley MiningCorporation (the “ Company ” or “ Altaley ”) ispleased to provide the following update on its pre-production effortsduring mill commissioning at its Tahuehueto Gold Mine Project.

Tahuehueto is currentlyoperating one ball mill in a commissioning phase, as part of theinitial 500tpd project, producing precious metals-rich, commercialgrade lead and zinc concentrates. All the associated productionsystems are operating satisfactorily, and pre-production will continueto generate revenue whilst the remaining definitive operations systemsare completed.

Sept. 2022 to Dec. 2022 – Lead and Zinc ConcentrateProduction

During September and October 2022 approximately 11,259 tonnesof mill feed was provided by a temporary crushing system, whilst thedefinitive crusher circuit was being completed. During this periodthroughput was constrained by the non-ideal feed sizing from thesetemporary systems to the mill, but this was resolved in late Octoberwith the commissioning of the definitive crushing system. The currentinstalled comminution capacity is 350 tpd, and since crushercommissioning the mill has processed approximately 18,341 tonnes ofore at an average of 297 tonnes per day over 62 operating days. Thenameplate 500 tpd installed comminution capacity will be achieved bythe installation of closed-circuit cyclones, and this is expected tobe completed before end Q1, 2023, subject to a successful outcome fromthe forthcoming rights offering.

Recoveries

Excellent precious metal recoveries have been achieved sinceSept 1, averaging 89.95% gold and 83.23% s ilver, with apeak daily recovery of gold at 97.52% and silver 92.33% . Overthe same period, average base metal recoveries of 76.68% leadreporting to the lead concentrate and 54.31% zinc reporting to zincconcentrate were also achieved.

Recoveries andconcentrate grades continue to improve, and in December exceededexpectations, partly as a result of the mining of fresh and high-gradeores from underground. December 2022 recoveries and grades for leadconcentrates were 84.23% (grade 29.22% Pb), gold 81.32% (grade 55.74g/t Au) and silver 73.94% (grade 693.20 g/t Ag) respectively.Similarly for zinc concentrates; zinc 65.28% (grade 51.30% Zn), gold10.62% (grade 5.96 g/t), silver 10.85% (grade 77.91 g/t Ag).

Mike Struthers, CEO commented: “We have been verypleased with the progressive improvements in the pre-production plantperformance at Tahuehueto, thanks largely to the team on site andhelped by the mining of higher-grade ores from the Creston vein. Earlypre-production was largely from stockpiled material, and some of thiswas partially oxidized which impacted on the plant performance.However, the fresh ores are performing well, in line with expectationsfrom metallurgical testwork. This gives us confidence in future plantperformance. Some initial challenges with zinc suppression in the leadcircuit were resolved, so we are now producing zinc concentrates withgrades above the minimum commercial specification. The precious metalsgrades in our lead concentrates are also especially pleasing with, forexample, an average of 55.74 g/t Au and 693.2 g/t Ag in December.

I look forward toproviding further updates as we finalize Tahuehuetoconstruction.”

Debt Settlement

The Company has also entered into a debt settlementagreement with an arms’ length mining contractor (the“Creditor”) to settle CDN$1,176,297 which is owing to the Creditoras a result of underground mine development work. The Company and theCreditor have agreed that the issuance to the Creditor of 735,186common shares of the Company at a deemed price of CDN$1.60 per commonshare will extinguish and settle the debt. The completion of the debtsettlement and issuance of the common shares is subject to TSXVapproval. All shares issued in connection with the debt settlementwill be subject to a hold period of four months and one day from thedate of issuance.

The Company ispleased to have this vote of confidence, with the settlement beingmade at a significant premium to the market, from such a reputablemining contractor.

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 Gold Mine Projectis in north-western Durango State, Mexico where construction of aninitial 500 tonnes per day (“tpd”) operation is well advanced. Thesecond stage, the 1000 tpd expansion project, will follow. Theoperation is generating gold, silver, lead, and zinc in concentrates.

Campo Morado is an operating polymetallic base and preciousmetals mine currently producing at an average of 2,400 tpd and iscurrently estimated to be Mexico’s 6th largest zinc producer and isprogressively increasing its copper revenues.

Visit:www.altaleymining.com

On Behalf of the Board ofDirectors

(signed) “Mike Struthers”

MikeStruthers

CEO 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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