Vancouver, BC — June 15, 2023 — Luca Mining Corp.

Luca Mining Corporation (the “Company” or “Luca”, formerly Altaley Mining Corporation) is pleased to provide the following update on metallurgical test work to improve precious metals recoveries at its Campo Morado Mine, located in the state of Guerrero, Mexico.

Highlights

• Pilot-scale testing of Jameson Cell technology at Campo Morado, operating at micro-fine grind levels, demonstrates the ability to significantly improve recoveries and concentrate grades across both copper and lead streams, together with moderate improvements in the zinc stream and potential reductions in operating costs.
• Historical testing demonstrated the ability of the Jameson Cell to achieve final concentrate grades of between 13% – 28% copper, at excellent unit recoveries of between 70-90%. For reference, current copper recovery is approximately 51%, with a concentrate grade of 13-16% Cu.
• Luca’s recent Jameson pilot plant testing on feed to first lead cleaner on Test 17 returned a recovery of 70.74% lead resulting in a concentrate grade of 37.93% lead, which is a significant improvement from Luca past lead production. By comparison, average lead recoveries of 29% and concentrate grades of 22% Pb were achieved by Luca during all of 2021.

“Both the historical and 2022 pilot-scale Jameson Cell testing generated very encouraging results”, said Mike Struthers, CEO. “As we continue to stabilise the overall operation, the next step with the Jameson Cells is to have all the testing reviewed by third party experts, then prepare a study to define how the cells would be added into the existing circuits, the costs and schedule for doing so, and an economic evaluation. We expect to make significant progress towards this goal during the balance of 2023.”

Background

Jameson Cell Pneumatic Flotation pilot plant testing was first conducted at Campo Morado by former owner Nyrstar during 2014, investigating the potential to increase recoveries of copper and lead into a bulk copper-lead concentrate, zinc into a zinc concentrate, and to increase corresponding concentrate grades. Results were very positive but, as a result of depressed metal prices in 2015, Nyrstar placed the operation into care and maintenance thereafter the mine was subsequently acquired by Luca.

To expand on this testing, Luca contracted Glencore Technologies to provide a second Jameson Cell pilot plant. This operated for three months during 2022, testing increased recoveries in the zinc roughers and 1st stage lead cleaning, and subsequently successfully tested the ability to make a precious metals-rich pyrite concentrate from both historic and fresh tailings.

Both the 2014 Nyrstar and the 2022 Luca Jameson Cell pilot plant testing returned very encouraging results in all process streams tested, clearly demonstrating that the addition of Jameson Cell technology, processing at micro-fine grind levels, has the potential to significantly improve recoveries and concentrate grades of both copper and lead streams, and could provide moderate improvement to current satisfactory zinc recoveries, all of which have the potential to significantly increase revenues.

A major advantage of the Jameson Cell technology is that the cells are smaller than conventional flotation cells, and they have no moving parts so they can be easily maintained online, without shutdowns. Further information on the principles of the Jameson Cell technology can be found here: Operating principles (glencoretechnology.com)

Historic Jameson Cell Pilot Plant Testing, Nyrstar 2014

Copper/Lead Flotation Circuit – 2014

Former owner, Nyrstar undertook substantial metallurgical test work at Campo Morado during their tenure with the mine. The 2014 Jameson Cell pilot plant testing on the copper-lead bulk circuit (as configured at the time) demonstrated the ability of the Jameson Cell to achieve final concentrate grades of between 13% – 28% Cu at excellent unit recoveries of between 70-90% (see Figure 1 below).

For comparison, the plant performance with conventional mechanical flotation cells (as configured in the plant at the time) for the six months ending June 30, 2014, immediately prior to Jameson Cell testing, averaged 13.94 % copper concentrate grade with average copper recoveries in the 70% range.

Recently, with the addition on Sub-A cleaning cells in the copper circuit, the mine is achieving 16% copper concentrate grades, and up to 55% recovery.

Zinc Flotation Circuit – 2014

Jameson Cell tests were also conducted on the zinc 1st cleaner feed stream in three different periods of time with the objective to evaluate the performance of the Jameson Cell to different ore types.

Figure 2 illustrates the results achieved, demonstrating the ability to moderately increase zinc recoveries and concentrate grades by adding extra cleaning capacity behind a Jameson Cell. A key benefit however, is the potential to reduce operating costs by reducing the cleaning stages.

The current plant configuration for the zinc circuit includes Sub-A cleaner cells, and the mine typically achieves 45-47% zinc concentrate grades, and 75-80% recoveries.

Luca Jameson Cell Pilot Plant Testing 2022

During 2022 the Company embarked on a metallurgical testing program to expand on the 2014 Nyrstar pilot plant testing at Campo Morado. Luca’s testing was designed to investigate the possibility of increasing zinc and lead recoveries and concentrate grades using Jameson Cells at micro-fine grinding levels. The company also successfully tested the Jameson Cell’s ability to produce a precious metal rich pyrite concentrate from micro-fine regrinding of both historic 2010-2015 produced tailings stored in the Naranjo Bajo tailings storage facility, and fresh tailings from then current processing of the El Largo ore zone.

All process streams tested by Luca using the Jameson Cell pilot plant returned encouraging results demonstrating the ability to increase recoveries of lead and zinc, increase concentrate grades, as well as the ability to successfully produce a pyrite concentrate from both historic and fresh tailings containing significant enrichment of gold and silver.

Feed to 1st Lead Cleaner – 2022

Eighteen tests were conducted on the feed to the first lead cleaner using pre-determined pilot plant settings provided by Glencore, with the best results obtained on Test 17 returning a recovery of 70.74% lead resulting in a concentrate grade of 37.93% lead with the lowest mass pull of 16.5%. See Table 1 below which shows other significant testing results at higher mass pulls.

By comparison, average lead recoveries of 29% and concentrate grades of 22% Pb were achieved by Luca during all of 2021 processing with mechanical flotation at then normal grinding sizes above micro-fine levels. The company suspended lead concentrate production during 2022, switching to copper, to take advantage of increasing copper head grades and increased copper prices.

The pilot plant testing results obtained by Luca for the feed to the first lead cleaner clearly demonstrate that the addition of Jameson Cell technology into the processing plant could significantly increase lead recoveries and lead concentrate grades at micro-fine grind levels.

Feed to Primary Zinc Scavenger Flotation – 2022

Luca conducted 17 tests of the feed to the primary zinc scavenger flotation stream with the Jameson Cell pilot plant under different operating parameters supplied by Glencore. Historic zinc recoveries at Campo Morado have been reasonable, averaging for 2021 and 2022, approximately 70% zinc recovery and 46% zinc concentrate grade.

Luca’s Jameson Cell Pilot Plant testing of feed to primary zinc scavenger returned positive results in 10 of the 17 tests, showing increased concentrate grade produced by the Jameson Cell Pilot Plant acting as a primary zinc scavenger when compared to the concentrate concurrently produced by the same feed in industrial plant primary zinc scavenger as shown in the table below.

Featured Image @ FreePik

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6) This document contains forward-looking information and forward-looking statements, within the meaning of applicable Canadian securities legislation, (collectively, “forward-looking statements”), which reflect management’s expectations regarding Luca Mining Corp.’s future growth, future business plans and opportunities, expected activities, and other statements about future events, results or performance. Wherever possible, words such as “predicts”, “projects”, “targets”, “plans”, “expects”, “does not expect”, “budget”, “scheduled”, “estimates”, “forecasts”, “anticipate” or “does not anticipate”, “believe”, “intend” and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative or grammatical variation thereof or other variations thereof, or comparable terminology have been used to identify forward-looking statements. These forward-looking statements include, among other things, statements relating to: (a) revenue generating potential with respect to Luca Mining Corp.’s industry; (b) market opportunity; (c) Luca Mining Corp.’s business plans and strategies; (d) services that Luca Mining Corp. intends to offer; (e) Luca Mining Corp.’s milestone projections and targets; (f) Luca Mining Corp.’s expectations regarding receipt of approval for regulatory applications; (g) Luca Mining Corp.’s intentions to expand into other jurisdictions including the timeline expectations relating to those expansion plans; and (h) Luca Mining Corp.’s expectations with regarding its ability to deliver shareholder value. Forward-looking statements are not a guarantee of future performance and are based upon a number of estimates and assumptions of management in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, as of the date of this document including, without limitation, assumptions about: (a) the ability to raise any necessary additional capital on reasonable terms to execute Luca Mining Corp.’s business plan; (b) that general business and economic conditions will not change in a material adverse manner; (c) Luca Mining Corp.’s ability to procure equipment and operating supplies in sufficient quantities and on a timely basis; (d) the accuracy of budgeted costs and expenditures; (e) Luca Mining Corp.’s ability to attract and retain skilled personnel; (f) political and regulatory stability; (g) the receipt of governmental, regulatory and third-party approvals, licenses and permits on favorable terms; (h) changes in applicable legislation; (i) stability in financial and capital markets; and (j) expectations regarding the level of disruption to as a result of CV-19. Such forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of Luca Mining Corp. to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking statements. Such risks include, without limitation: (a) Luca Mining Corp.’s operations could be adversely affected by possible future government legislation, policies and controls or by changes in applicable laws and regulations; (b) public health crises such as CV-19 may adversely impact Luca Mining Corp.’s business; (c) the volatility of global capital markets; (d) political instability and changes to the regulations governing Luca Mining Corp.’s business operations (e) Luca Mining Corp. may be unable to implement its growth strategy; and (f) increased competition.

Except as required by law, Luca Mining Corp. undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future event or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. Neither does Luca Mining Corp. nor any of its representatives make any representation or warranty, express or implied, as to the accuracy, sufficiency or completeness of the information in this document. Neither Luca Mining Corp. nor any of its representatives shall have any liability whatsoever, under contract, tort, trust or otherwise, to you or any person resulting from the use of the information in this document by you or any of your representatives or for omissions from the information in this document.

7) Any graphs, tables or other information demonstrating the historical performance or current or historical attributes of Luca Mining Corp. or any other entity contained in this document are intended only to illustrate historical performance or current or historical attributes of Luca Mining Corp. or such entities and are not necessarily indicative of future performance of Luca Mining Corp. or such entities.

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