Reserves & Resources

(as of September 30, 2023)
485
koz Au
2P Reserves (21 Mt grading 0.72 g/t Au)
822
koz Au
M+I Resources Including 2P (41.8 Mt grading 0.62 g/t Au)
53
koz Au
Inferred Resources (3.6 Mt grading 0.45 g/t Au)
5
Years
Mine Life (estimated)
*Mineral resources are inclusive of mineral reserves. Mineral reserve & resource estimate also contains resources of 11.2 Moz Ag inclusive of 2P reserves of 6.85 Moz Ag. For more information, please see updated NI 43-101 Technical Report supporting the Mineral Reserve and Resource Estimate, which was filed on January 31, 2024.

About GOLDEN QUEEN®

In November 2023, Andean acquired a 100% interest in Golden Queen Mining LLC, expanding the Company’s footprint and providing a platform for growth into the USA.

GOLDEN QUEEN® is situated in in Kern County, Southern California on ~1,100 hectares. It is fully permitted operates 24 hours per day, 7 days a week and employs ~250 people.

GOLDEN QUEEN® conducts ongoing gold and silver mining, mineral processing, and exploration activities at the Soledad Mountain operation in Kern County, California. GOLDEN QUEEN®’s mining operations include open-pit mining, ore crushing, heap leach recovery, resource development, geological evaluation, and ongoing exploration drilling programs, as well as water management, and metallurgical operations designed to support ongoing gold and silver production.

GOLDEN QUEEN® utilizes conventional open pit mining methods (blasting and hauling), a 12,000 tpd cyanide heap leach and a Merrill-Crowe processing facility to recover gold and silver from crushed, agglomerated ore. The mine processes an average of approximately 4.0 million short tons of ore per year.

GOLDEN QUEEN® is connected to the South California Edison electrical grid. Water production wells and a water treatment plant on site provide ample potable and process water.

Since its commercial start-up in mid-2016, Soledad Mountain has produced more than 340,000 ounces of gold and ~3.5 million ounces of silver.

About GOLDEN QUEEN<sup>®</sup>

GOLDEN QUEEN® Heap Leach & Processing Facilities

GOLDEN QUEEN® processing operations utilize heap leach and Merrill-Crowe recovery systems to process gold and silver mineralized material extracted from the Soledad Mountain mine.

Flow Sheet: Heap Leach Pad and Merrill-Crowe Processing

Ore from the open pit mine feeds the primary jaw crusher at a nominal rate of 12,329 tons per day or 4.5 million tons per annum.

Primary crushed ore from the jaw crusher is ground down to -5½ inch and stored at the coarse ore stockpile that feeds two pans and one belt feeder. Once in the secondary cone crusher, the ore is further reduced to -1¼ inch in the secondary cone crusher.

Material from the secondary crusher is stored in a 400-ton fine ore bin which in turn feeds the tertiary high pressure grinding rolls (HPGR) that crushes to a 75% passing at ¼ inch

Feed from the HPGR is agglomerated and conveyed via an overland conveyor to a series of grasshoppers and a stacker that loads the agglomerated ore onto the heap leach pad using30-foot lifts.

From there the ore is irrigated and leached with a nominal 3,000 gpm, dilute cyanide solution. The precious metal-bearing leach solution is then pumped to a Merrill Crowe (MC) gold and silver recovery plant. Precipitated metal from the MC plant is refined, poured into doré bars containing 10:1 gold-to-silver and shipped to a refinery. The barren solution from the MC plant is recycled back to the heap for reuse.

GOLDEN QUEEN<sup>®</sup> Heap Leach & Processing Facilities

GOLDEN QUEEN® Exploration Program

GOLDEN QUEEN® conducts ongoing mineral exploration and resource expansion activities. Current exploration programs include core drilling, geological modeling, resource evaluation, metallurgical testing, and analysis of near-pit and near-surface mineralization targets.

The mine produces gold and silver from multiple, northwest-trending, northeast- and southwest- dipping epithermal veins, vein breccias and vein splays hosted in silicified, Miocene-aged felsic volcanic rocks. It is one of the newest gold mines in the state of California.

The epithermal mineral system at Soledad Mountain is deemed favorable for new discoveries that may yield expansion of the project’s mineral resources and mineral reserves.

Of immediate interest is the potential to upgrade the project’s inferred mineral resources followed by testing extensions of the main mineralized structures outside of the limits of the project’s mineral reserves and resources. These and the potential for discovery of new mineralized structures, to the east and west of the main deposit, will be examined and prioritized by Andean going forward. Andean intends to begin a new exploration program shortly to unlock these potential inferred resources.

Recent GOLDEN QUEEN® exploration drilling programs have included testing of the Silver Queen SE Extension, Alphason, and Hilltop target areas through ongoing core drilling and geological assessment activities.

1
Sheeted Vein Zone: New resource estimate defined from drilling in 2022. Mineralization similar in character to other zones at Soledad.
2
Alphason Target: A high-priority target with potential to add to mineral resources and reserves. 2022 drilling encountered encouraging near-pit and near-surface mineralization within the permitted boundary. Approximately 5,000 feet of strike mapped at surface.
3
Silver Queen SE Extension: 5 DD holes completed along the vein system. Open-ended potential along strike and at depth.

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