Orla Mining Reports Fourth Quarter and Year End 2023 Results

Record Annual Production Driving Continued Cash Flow Generation

VANCOUVER, BC, March 19, 2024  /CNW/ – Orla Mining Ltd. (TSX: OLA) (NYSE: ORLA) (“Orla” or the “Company”) today announces the results for the fourth quarter and year ended December 31, 2023.

(All amounts expressed in U.S. dollars unless otherwise stated)

Fourth Quarter 2023 Highlights

• Fourth quarter gold production was a record 34,484 ounces and gold sold was 31,300 ounces (pre-released). Full year 2023 gold production was a record 121,877 ounces, exceeding the Company’s increased full year gold production guidance range of 110,000 to 120,000 ounces (initial production guidance range was 100,000 to 110,000 ounces).

• All-in sustaining costs (“AISC”)¹ was $802 per ounce of gold sold during the fourth quarter 2023. Full year 2023 AISC was $736 per ounce of gold sold, within the Company’s revised full year 2023 AISC guidance of $700 to $800 per ounce of gold sold (initial AISC guidance range was $750 to $850 per ounce of gold sold).

• Adjusted earnings¹ for the fourth quarter were $15.7 million or $0.05 per share.

• Net loss for the fourth quarter was $58.4 million or ($0.19) per share. This includes a non-cash impairment charge of $72.4 million on the Cerro Quema Project.

• During the quarter, the Panamanian Ministry of Commerce and Industry (“MICI”) rejected the requests for extension for the three mining concessions comprising Cerro Quema and declared the concessions cancelled. This cancellation followed Panama’s passing of Executive Decree No. 23/2023 in October 2023 and Law 407 in November 2023. The Company is exploring all legal remedies available in response to these cancellations and intends to file a Notice of Intent to Arbitrate under the Panama-Canada Free Trade Agreement (the “FTA”).

• Cash flow from operating activities before changes in non-cash working capital during the fourth quarter was $24.7 million.

• Exploration and project expenditure was $12.6 million during the quarter, of which $3.3 million was capitalized and $9.3 million was expensed.

• As at December 31, 2023, Orla’s cash balance was $96.6 million and net cash¹ was $8.3 million. During the quarter, the Company repaid $25 million towards its revolving credit facility, reducing the balance outstanding under the facility to $88.4 million. The Company also paid the final installment of $22.8 million to Fresnillo plc (“Fresnillo”) as part of the layback agreement.

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“The fourth quarter bookended a second consecutive year of operational outperformance at the Camino Rojo Oxide Mine. We are disappointed in the current investment climate in Panama, particularly as it relates to our Cerro Quema Project, but we remain steadfast in our overall near-term strategy; we started 2024 in a net cash position and we are continuing to invest in our growth opportunities in Nevada and Mexico.

– Jason Simpson, President and Chief Executive Officer of Orla

Financial and Operations Update

Fourth Quarter 2023 Financial and Operations Summary

The Camino Rojo Oxide Gold Mine achieved a record quarterly gold production of 34,484 ounces of gold in the fourth quarter of 2023 at an average ore stacking rate of 18,998 tonnes per day. The average mining rate during the fourth quarter was 28,955 tonnes per day with a strip ratio of 0.43. The average grade of ore processed during the fourth quarter was 0.73 g/t gold, in line with plan. Gold sold during the fourth quarter 2023 totaled 31,300 ounces. Tonnes of waste mined remained lower than planned during the quarter as the Company awaited receipt of permits from the Secretariat of Environment and Natural Resources (known as…