APM:CC - Andean Precious Metals Reports Fourth Quarter and Full Year 2024 Operating and Financial Results

ACHIEVED RECORD REVENUES OF $254 MILLION AND RECORD ADJUSTED EBITDA OF $62.9 MILLION

(All amounts in U.S. dollars unless otherwise indicated)

Toronto, Ontario--(Newsfile Corp. - March 18, 2025) - Andean Precious Metals Corp. (TSX: APM) (OTCQX: ANPMF) ("Andean" or the "Company") is pleased to report its operating highlights and financial results for the year ended December 31, 2024. This news release should be read together with Andean's management discussion and analysis ("MD&A") and the annual consolidated financial statements for the three and twelve months ended December 31, 2024 (the "Financial Statements"), which are available under the Company's profile on SEDAR+ (www.sedarplus.ca).

Alberto Morales, Executive Chairman and CEO, stated: “2024 was a transformative year for Andean Precious Metals. It marked our first full year with Golden Queen in our operating portfolio, and despite operating at close to the lower end of our production range, we achieved record revenues and record adjusted EBITDA, demonstrating the strength of the commodity markets and our operational efficiencies.”

Mr. Morales continued: "We also proudly uplisted to the TSX from the TSX Venture Exchange, which was an important milestone that enhances our market visibility and aligns with our long-term growth strategy. In addition, we renewed our Normal Course Issuer Bid program, reinforcing our confidence in Andean's future growth and our commitment to delivering value to shareholders.

"We kicked off an exploration program at Golden Queen which tested near-mine exploration targets, delivering promising results that could extend the open pit boundaries beyond the current design. Alongside this, we continue to make good progress on key scheduled investments to enhance operational stability and efficiency at Golden Queen. As we closed out 2024, we ended the year with a stronger balance sheet, reflecting solid free cash flow generation since acquiring Golden Queen in 2023 and positioning Andean for its next phase of growth.

"For 2025, we remain committed to value creation at our operating sites, while also pursuing both, organic and inorganic growth initiatives. Our guidance for 2025 is showing a conservative growth forecast in production with a mid-point projection of 110,000 gold equivalent ounces, as compared to 106,287 gold equivalent ounces for 2024. We expect to generate significant operating cash flow and EBITDA in 2025, and to use some of these proceeds in the outlay of CAPEX, which we estimate to be around $30 million. Overall, we expect 2025 to be a solid year for the Company.

"Finally, I am very pleased with the integration of Yohann Bouchard, our new President, to the Company. Yohann brings with him significant operational and strategic experience reinforcing our commitments toward improving our technical and operational excellence."

2024 Highlights:

Consolidated Results:

• Consolidated 2024 production of 106,287 gold equivalent ounces.

• Record consolidated revenue of $254.0 million from sales at an average realized gold price of $2,332/oz and an average realized silver price of $28.84/oz.

• The Company strengthened its financial position in 2024, ending the period with $81.6 million in liquid assets compared to $70.1 million in liquid assets in 2023.

• The Company generated record free cash flow of $34.5 million¹.

• Gross operating income of $68.6 million, mainly due to strong average realized gold and silver prices and lower operating costs at San Bartolome.

• Net income and net income per share of $19.2 million and $0.12 (diluted basis), and Adjusted EBITDA and Adjusted EBITDA per share of $62.9 million and $0.41 (diluted basis), respectively.

Golden Queen Results:

• Golden Queen produced 54,275 gold equivalent ounces in 2024.

• Golden Queen operating cash costs ("OCC") of $1,501/oz and all-in sustaining costs ("AISC")¹ of $2,015/oz for 2024.

San Bartolome Results:

• San Bartolome produced 4.5 million silver equivalent ounces in 2024.

• Achieved a strong cash gross operating margin ("CGOM") of $9.15 per ounce of silver equivalent sold and a gross margin ratio ("GMR")² of 38.14% for 2024.

• Achieved an average recovery rate in 2024 of 82% when compared to an average recovery rate of 78% for 2023.
  

2025 Production and Cost Guidance:

• The Company expects consolidated production to be between 103K-117K gold equivalent ounces in 2025.

• At Golden Queen, OCC and AISC to be between $1,500 - $1,800/oz and $1,950-$2,150 /oz respectively.

• At San Bartolome, CGOM and GMR to be between $6.50-$8.40/oz and 29%-36%/oz respectively.

• The Company expects the total capital expenditures for 2025 to be between $28 - $32 million.

Corporate Updates:

• Effective January 9, 2025, the Company's shares began trading on the TSX under the ticker symbol APM.

• On January 12, 2024, the Company announced it entered an automatic share purchase plan in conjunction with its normal course issuer bid and renewed the program on January 2, 2025.

• Health and Safety Performance: During the fourth quarter of 2024, no lost time injuries ("LTI") have been reported at Golden Queen or San Bartolome. As of December 31, 2024, San Bartolome reached 118 days without LTI and Golden Queen reached 561 days without LTI.

Summary of Financial and Operating Results

¹Average realized gold price, average realized silver price, free cash flow, OCC, AISC, CGOM, and GMR are measures of financial performance with no prescribed definition under IFRS. Refer to the "Non-GAAP Financial Measures, Ratios and Supplementary Financial Measures" section of this news release for further detail, including a reconciliation of these metrics to the financial statements.

2025 Production and Cost Guidance

Production Guidance

The Company's 2025 annual gold and silver production guidance for Golden Queen and San Bartolome:

²For 2025 guidance commodity price assumptions the Company is using $2,500 per ounce of gold and $27.78.

Cost Guidance

The Company's 2025 annual cost guidance for Golden Queen and San Bartolome:

CAPEX Guidance

The Company's 2025 capital expenditures guidance:

At San Bartolome, sustaining capital expenditures are expected to be $5.6 million to $6.2 million largely due to tailings expansions and processing upgrade projects.

At Golden Queen, sustaining capital expenditures are expected to be $12.7 million to $14.0 million largely due to stacking system and process plant equipment replacement, overhauls of existing equipment, and upgrades to crushing equipment. Growth capital expenditures at Golden Queen are expected to be $9.3 million to $11.0 million, largely due to initial capital outlays for a new phase of the heap leach pad, purchase of new haul trucks, and spending on a new production water well for future mine production.

Q4 and FY 2024 Conference Call and Webcast

• Wednesday, March 19, at 9:00 AM ET

• Participants may listen to the webcast by registering via the following link https://www.gowebcasting.com/13970.

• Participants may also listen to the conference call by calling North American toll free 1-833-821-0164, or 1-647-846-2305 outside the U.S. or Canada.

• An archived reply of the webcast will be available for 90 days at: https://www.gowebcasting.com/13970 or the Company website at www.andeanpm.com.

About Andean Precious Metals

Andean is a growing precious metals producer focused on expanding into top-tier jurisdictions in the Americas. The Company owns and operates the San Bartolomé processing facility in Potosí, Bolivia and the Soledad Mountain mine in Kern County, California, and is well-funded to act on future growth opportunities. Andean's leadership team is committed to creating value; fostering safe, sustainable and responsible operations; and achieving our ambition to be a multi-asset, mid-tier precious metals producer.

Qualified Person Statement

The scientific and technical content disclosed in this news release was reviewed and approved by Donald J. Birak, Independent Consulting Geologist to the Company, a Qualified Person as defined by National Instrument 43-101 - Standards for Disclosure for Mineral Projects, Registered Member, Society for Mining, Metallurgy and Exploration (SME), Fellow, Australasian Institute of Mining and Metallurgy (AusIMM).

For more information, please contact:

Caution Regarding Forward-Looking Statements

Certain statements and information in this release constitute "forward-looking statements" within the meaning of applicable U.S. securities laws and "forward-looking information" within the meaning of applicable Canadian securities laws, which we refer to collectively as "forward-looking statements". Forward-looking statements are statements and information regarding possible events, conditions or results of operations that are based upon assumptions about future economic conditions and courses of action. All statements and information other than statements of historical fact may be forward-looking statements. In some cases, forward-looking statements can be identified by the use of words such as "seek", "expect", "anticipate", "budget", "plan", "estimate", "continue", "forecast", "intend", "believe", "predict", "potential", "target", "may", "could", "would", "might", "will" and similar words or phrases (including negative variations) suggesting future outcomes or statements regarding an outlook.

Forward-looking statements in this release include, but are not limited to, statements and information regarding the Company's production, cost outlook and capital expenditure expectations for 2025 and the Company's expectations regarding its CAPEX and equipment overhaul program. Such forward-looking statements are based on a number of material factors and assumptions, including, but not limited to: the Company's ability to carry on exploration and development activities; the Company's ability to secure and to meet obligations under property and option agreements and other material agreements; the timely receipt of required approvals and permits; that there is no material adverse change affecting the Company or its properties; that contracted parties provide goods or services in a timely manner; that no unusual geological or technical problems occur; that plant and equipment function as anticipated and that there is no material adverse change in the price of silver, costs associated with production or recovery. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements, or industry results, to differ materially from those anticipated in such forward-looking statements. The Company believes the expectations reflected in such forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct, and you are cautioned not to place undue reliance on forward-looking statements contained herein.

Some of the risks and other factors which could cause actual results to differ materially from those expressed in the forward-looking statements contained in this release include, but are not limited to: risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits and conclusions of economic evaluations; results of initial feasibility, pre-feasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; risks relating to possible variations in reserves, resources, grade, planned mining dilution and ore loss, or recovery rates and changes in project parameters as plans continue to be refined; mining and development risks, including risks related to accidents, equipment breakdowns, labour disputes (including work stoppages and strikes) or other unanticipated difficulties with or interruptions in exploration and development; the potential for delays in exploration or development activities or the completion of feasibility studies; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; risks related to commodity price and foreign exchange rate fluctuations; the uncertainty of profitability based upon the cyclical nature of the industry in which the Company operates; risks related to failure to obtain adequate financing on a timely basis and on acceptable terms or delays in obtaining governmental or local community approvals or in the completion of development or construction activities; risks related to environmental regulation and liability; political and regulatory risks associated with mining and exploration; risks related to the uncertain global economic environment; and other factors contained in the section entitled "Risk Factors" in the Company's MD&A for the three and twelve months ended December 31, 2024.

Although the Company has attempted to identify important factors that could cause actual results or events to differ materially from those described in the forward-looking statements, you are cautioned that this list is not exhaustive and there may be other factors that the Company has not identified. Furthermore, the Company undertakes no obligation to update or revise any forward-looking statements included in this release if these beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law.

NON-GAAP FINANCIAL MEASURES, RATIOS, AND SUPPLEMENTARY FINANCIAL MEASURES

This news release includes "specified financial measures" within the meaning of National Instrument 52-112 - Non-GAAP and Other Financial Measures Disclosure ("NI 52-112"), specifically the non-GAAP financial measures, non-GAAP ratios and supplementary financial measures described below. Management believes that the use of these measures assists analysts, investors and other stakeholders of the Company in understanding the costs associated with producing silver and gold, understanding the economics of silver and gold mining, assessing operating performance, the Company's ability to generate free cash flow from current operations, and for planning and forecasting of future periods.

The specified financial measures used in this news release do not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other issuers, even as compared to other issuers who may be applying the World Gold Council ("WGC") guidelines. Accordingly, these measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

Operating Cash Costs

OCC includes total production cash costs incurred at the Company's mining operations, which form the basis of the Company's cash costs, less by-product revenue.

The following table provides a reconciliation of the OCC per ounce sold on a by-product basis to the Financial Statements:

Cash Gross Operating Margin

CGOM per silver equivalent ounce sold is calculated by subtracting the average cash cost of sale (cost of sales, allocated corporate administrative costs and business unit general and administration cost) per equivalent ounce sold from the average selling price per equivalent ounce. It is a measure of financial performance with no prescribed definition under IFRS and may not be comparable to similar financial measures disclosed by other issuers.

The following table provides a reconciliation of the CGOM per ounce to the Financial Statements and the most directly comparable IFRS measure:

Free Cash Flow

The Company has included free cash flow as a non-GAAP financial measure in this news release. The Company considers net cash provided from operating activities, less capital expenditures on property, plant and equipment, to be a measure that allows the Company and investors to evaluate the ability of the Company to generate cash flow. Accordingly, free cash flow is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

The following table provides a reconciliation of free cash flow to the Financial Statements:

Average Realized Gold and Silver Prices Per Ounce

The Company has included average realized prices as a supplementary non-GAAP financial measure in this news release. The Company quantifies average realized price per ounce as revenue per the Statement of Income (loss), bifurcated by gold or silver revenue and divided by ounces of gold or silver sold, respectively. Management uses this measure to monitor sales of silver and gold ounces against the average market silver and gold prices.

The following table provides a reconciliation of average realized prices to the most directly comparable IFRS measure:

Consolidated Statements of Financial Position
(all amounts in US dollar, except share amounts)

Consolidated Statements of Income
(all amounts in US dollar, except share amounts)

Consolidated Statements of Cash Flows
(in thousands of US dollars)

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