TXG Torex Gold Resources Inc

Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX: TXG) has released an updated technical report (“Technical Report”) for its Morelos Complex, which includes an integrated life of mine plan and economics for the producing El Limón Guajes (“ELG”) Mine Complex (consisting of the ELG Open Pits and ELG Underground) and the development stage Media Luna Project (“ML Project”). Based on the results of the feasibility study included in the Technical Report, and with approval from the Board of Directors on development of the ML Project, the Company also announces 2022 capital expenditure guidance specific to the ML Project as well as an updated multi-year production outlook.

HIGHLIGHTS OF THE TECHNICAL REPORT

Key Economics – Base case metal prices

• Morelos Complex: Cumulative cash flow of $1,418M and after-tax NPV (5% discount rate) of $1,040M
• ML Project: After-tax NPV (5%) of $458M and after-tax IRR of 16.1%
• Long-term metal prices: $1,600/oz Au ($1,700/oz in 2022), $21/oz Ag, and $3.50/lb Cu

Key Economics – Spot case metal prices1

• Morelos Complex: Cumulative cash flow of $2,322M and after-tax NPV (5%) of $1,751M
• ML Project: After-tax NPV (5%) of $949M and after-tax IRR of 24.9%
• Spot metal prices: $1,950/oz Au, $25.50/oz Ag, and $4.70/lb Cu as of March 25, 2022

Morelos Complex Summary – Life of Mine

• Life of mine of 11.75 years commencing April 1, 2022 and ending Q4 2033
• Annualized gold equivalent (“AuEq”) sold of 374 koz2 including 280 koz of Au
  • Increased exposure to Cu and Ag with annual payable output of 34.8 Mlb Cu and 1,327 koz Ag
• Total cash cost3 of $809/oz AuEq sold and mine-site all-in sustaining cost3 of $954/oz AuEq sold
• Annualized revenue of $605M and mine-site EBITDA3 (excludes corporate items) of $298M

Morelos Complex Summary – Process plant operating at full capacity (through 2027)

• Annualized AuEq sold of 450 koz through 2027 when the process plant is operating at full capacity
• Total cash cost of $779/oz AuEq sold and mine-site all-in sustaining cost of $929/oz AuEq sold
• Annualized revenue of $733M and mine-site EBITDA of $378M

Capital Expenditures

• $848M to develop and bring the ML Project into commercial production
  • Includes $85M of underground development during pre-commercial period (Q4 2023 to Q4 2024)
• Total sustaining capital expenditures3 of $545M over life of mine

_____________________1 See also Table 10 for After-Tax Sensitivities to Key Factors for the Morelos Complex and Media Luna Project.2 Gold equivalent (AuEq) sold includes Au and AuEq values for Ag and Cu sold assuming long-term metal prices of $1,600/oz Au ($1,700/oz in 2022), $21/oz Ag, and $3.50/lb Cu. A summary of life of mine payable production values for Au, Ag and Cu can be found in Table 1 including tonnes processed and average processed grades. Expected recovery and payable factors for Au, Ag and Cu can be found in Table 2.3 These measures, as well as TCC margin, AISC margin, and sustaining and non-sustaining capital expenditures, are forward looking Non-GAAP Financial Performance Measures or Non-GAAP ratios (collectively, “Non-GAAP Measures”). Please see Table 13 for the equivalent historical non-GAAP measure. For the year ended December 31, 2021, the following historic Non-GAAP Measures were reported in the Company’s management’s discussion and analysis (“MD&A”) for the year ended December 31, 2021, dated February 23, 2022, which is available on the Company’s website (www.torexgold.com) and under the Company’s SEDAR profile (www.sedar.com): EBITDA - $461.6M; TCC - $674/oz Au; TCC margin $1,120/oz Au; AISC – $928/oz; AISC margin - $865/oz Au; sustaining capital costs - $85.3M; and non-sustaining costs - $152.4M. Please note that the AISC and AISC margin do not include corporate G&A and potential sustaining exploration costs, and mine site EBITDA does not include corporate G&A. Please also see the Cautionary Notes on Non-GAAP Measures below.

Total Mineral Reserves of 5,123 koz AuEq at an average grade of 3.90 g/t AuEq4

• Initial Mineral Reserves for Media Luna of 3,360 koz AuEq based on 23.0 Mt at 4.54 g/t AuEq

Initiatives underway to realize available upside and build-on on solid base case production/cash flow

• Exploration/Drilling: Significant potential to expand Mineral Reserves in the ELG Underground, within the broader Media Luna area, and across the entire land package, which is 75% unexplored
• Development of EPO deposit: Potential to be a nearby source of incremental feed over and above the levels anticipated from the ML Project
• ELG Underground: Potential to increase throughput with the investment in Portal #3 and utilizing bulk mining in specific zones

Jody Kuzenko, President & CEO of Torex, stated:

“Today we achieve a mission critical milestone in our growth journey with the release of the updated Technical Report for our Morelos Complex and approval from our Board of Directors to proceed with the development of the ML Project. With tremendous future exploration potential, advancing this project is fundamental to setting up our wholly owned flagship Morelos Complex for safe and reliable production, strong free cash flow post the construction period, and lasting economic prosperity for all of those who share stakes in Torex. With this investment, the foundation for the future growth plans of Torex will be firmly laid.

“We always knew that the Media Luna Project would be challenging. The deposit is situated 7 km away from our existing infrastructure, on the other side of a river, and hosts challenging metallurgy. True to the Torex brand, the economics shown in the Technical Report are grounded in operating costs, capital costs, and ramp-up time frames that are both realistic and achievable, accounting for the current inflationary environment, quotes from vendors, and assumptions on sustaining capital expenditures required to responsibly and sustainably operate a 7,500 tpd underground mine.

“Notwithstanding these challenges, it is clear the upside economics of developing the ML Project are compelling. We see significant opportunity to enhance the overall return of the ML Project by filling the mill post 2027 and extending the overall mine life beyond what is implied by reserves. The investment we are making in exploration and drilling in 2022, and going forward, reflects our determination to unlock the resource potential of our entire Morelos Property, and deliver on our goal of developing a multi-decade mining operation.

“Importantly, the ML Project opens up the opportunity for Torex to diversify into becoming a meaningful copper producer – an opportunity that could not have timed the market better. In fact, 20% of revenue of the Morelos Complex is forecast to be attributable to copper, with the percentage increasing as the ML Project ramps up.

“Given the ongoing success of our strategy to cash up ahead of the build, we expect to fund the development of the ML Project using our robust balance sheet, strong forecasted cash flow, and a prudent level of debt. With over $405M of available liquidity at year-end (including $255M in cash), annual projected cash flow from ELG Mine Complex of $190M through year-end 2024 (prior to capital expenditures on the ML Project), and a goal of maintaining a minimum liquidity position of $100M, we are evaluating debt financing in the order of $250M to $300M. Multiple debt financing options are being considered, including a gold prepay, high yield debt, and an expanded credit facility. This financing decision will be made in the months to come.

“There is no doubt that we are well positioned financially, socially, and technically to advance the development of the ML Project while continuing to invest in value accretive exploration – exploration that will both extend the life of mine and continue to further enhance the overall return of the Morelos Complex. The future is here and it’s clear – and in true Torex form, we will now turn our focus onto delivering.”

_____________________4 Gold equivalent (AuEq) Mineral Reserves account for underlying metal prices and metallurgical recoveries. Breakdown of Mineral Reserves by metal is outlined in Table 11 and a breakdown of Mineral Resources by metal is outlined in Table 12.

SUMMARY OF TECHNICAL REPORT FOR MORELOS COMPLEX

The Technical Report outlines the updated economics of the Morelos Complex in Guerrero, Mexico. The Technical Report includes an integrated mine plan for the ELG Mine Complex as well as the ML Project. Operational and economic estimates are based on a project period commencing April 1, 2022, unless otherwise noted. References to production and metal sold are based on payable levels unless otherwise stated. All values of economic inputs are nominally based, and all amounts expressed in U.S. dollars unless otherwise stated.

Table 1: Summary of Technical Report
Metrics as of April 1, 2022		Morelos	ELG	ML
		Complex	Standalone	Incremental
Total Processed
Life of Mine	years	11.75	3.5	8.25
Total ore processed	kt	39,778	15,931	23,847
Gold (Au) grade processed	g/t	2.89	2.91	2.88
Silver (Ag) grade processed	g/t	16.7	4.3	25.0
Copper (Cu) grade processed	%	0.56	0.12	0.85
Total Payable Sold
Gold (Au)	koz	3,294	1,330	1,964
Silver (Ag)	koz	15,587	661	14,926
Copper (Cu)	Mlbs	409	4	405
Gold equivalent (AuEq)	koz	4,392	1,347	3,045
Unit Operating Costs (including PTU)
ELG Open Pit	$/t mined	$2.81
ELG Underground	$/t ore mined	$98.19
ML Underground	$/t ore mined	$34.04
Processing	$/t ore milled	$34.54
Site support	$/t ore milled	$13.47
Transport/Treatment/Refining	$/t ore milled	$5.67
Total operating cost	$/t ore milled	$84.15
Total operating cost with royalties	$/t ore milled	$89.08
Operating Costs
Total cash costs - gold equivalent	$/oz AuEq	$809	$831
Mine-site all-in sustaining costs - gold equivalent	$/oz AuEq	$954	$1,023
Total cash costs - by-product	$/oz Au	$545	$820
Mine-site all-in sustaining costs - by-product	$/oz Au	$739	$1,015
Total Capital Expenditures
Non-sustaining	$M	$850	$2	$848
Sustaining	$M	$545	$184	$361
Reclamation and closure	$M	$93
Economics
Gross revenue	$M	$7,106	$2,234	$4,872
Mine-site EBITDA	$M	$3,503	$1,067	$2,436
Cumulative cash flow	$M	$1,418	$590	$828
After-tax NPV (5% discount rate)	$M	$1,040	$582	$458
After-tax IRR	%			16.1%
Project payback period	years			5.8
Base Case Commodity/Currency
Gold price	$/oz	$1,600	$1,600	$1,600
Silver price	$/oz	$21.00	$21.00	$21.00
Copper price	$/lb	$3.50	$3.50	$3.50
MXN/USD		20.00	20.00	20.00

Notes to Table 1

1. Total cash costs – gold equivalent, mine-site all-in sustaining costs – gold equivalent, total cash costs – by-product, mine-site all-in sustaining costs – by-product, non-sustaining and sustaining capital costs and mine-site EBITDA are Non-GAAP Measures. See footnote 3 above and Cautionary Note below on Non-GAAP Measures.
2. AuEq sold includes Au and AuEq values for Ag and Cu assuming long-term metal prices of $1,600/oz Au ($1,700/oz in 2022), $21/oz Ag, and $3.50/lb Cu.
3. Estimates are based on the project period commencing April 1, 2022. All amounts in U.S. dollars.

The updated mine plan and economics outlined for the Morelos Complex in the Technical Report are based on Proven & Probable Mineral Reserves for the ELG Mine Complex and the Media Luna Project. Differences between Mineral Reserves (tonnes and grade) compared to life of mine totals outlined in Table 1, reflect a project period commencing April 1, 2022 compared with Mineral Reserves which have an effective date of December 31, 2021 for the ELG Mine Complex and an effective date of October 31, 2021 for the ML Project. Details on the Company’s Mineral Reserves and Mineral Resources can be found in Table 11 and Table 12.

Metal SoldOver an estimated life of mine of 11.75 years, based on Mineral Reserves, the Morelos Complex is expected to deliver annualized payable sales of 280 koz of gold (“Au”), 1,327 koz of silver (“Ag”), and 34.8 Mlb of copper (“Cu”). On a AuEq basis2, annualized payable AuEq sold over the life of the Morelos Complex is forecast to average 374 koz. AuEq sold is calculated by applying the long-term metal prices of $1,600/oz Au ($1,700/oz in 2022), $21/oz Ag, and $3.50/lb Cu assumed within the base case economics set out in the Technical Report. Metal sales are after metallurgical recoveries and payable factors for Au, Ag, and Cu.

During the period in which the capacity of the processing plant is fully utilized (April 2022 through December 2027), annualized AuEq sold is forecast to average 450 koz. Based on current Mineral Reserves, annual sales are forecast to decline post 2027 when the ML Project becomes the sole source of feed for the processing plant. Initiatives to fill the mill beyond 2027 are currently underway (Figure 1).

Figure 1: Annualized AuEq sold of 374 koz estimated over the life of mine; Annual AuEq sold through 2027 is expected to average 450 koz when the capacity of the processing plant is to be fully utilizedFigure 1 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/9618ccf0-797d-4a6f-b1f4-7259c710f3fa

Notes to Figure 1:

1. AuEq sold includes Au and AuEq values for Ag and Cu assuming long-term metal prices of $1,600/oz Au ($1,700/oz in 2022), $21/oz Ag, and $3.50/lb Cu.
2. A summary of life of mine payable sold values for Au, Ag and Cu can be found in Table 1 including tonnes processed and average processed grades. Expected recovery and payable factors for Au, Ag and Cu can be found in Table 2.
3. 2022 payable AuEq sold includes Q1/22 versus the Technical Report which incorporates estimates over the project period commencing April 1, 2022.

Over the life of the Morelos Complex, approximately 75% of AuEq sold is attributable to Au, approximately 20% to Cu, and the remainder to Ag. The proportion of AuEq sold attributable to Cu is expected to increase materially commencing with start-up of the ML Project, with annual payable Cu of approximately 45 Mlb forecast between 2025 and 2033, representing close to 28% of AuEq sold over this period.

MiningOre for the Morelos Complex will be sourced from the ELG Open Pit operation, ELG Underground operation, and ML Project. Production during the near-term will be predominantly supported by ELG Open Pit while longer term production will be supported by the ML Project. Ongoing Reserve growth could extend the current production profile of the ELG Underground beyond 2027 (Figure 2).

Mining activities within the ELG Open Pit operations are expected to decline over the coming years with depletion of the Guajes and El Limón Sur pits in H1 2023 and the El Limón open pit in H2 2024.

Mining activities within the ELG Underground are forecast to run through Q3 2027 based on Mineral Reserves and assume an average daily mining rate of 1,370 tpd between 2022 and 2026. The mining method considered in the ELG Underground is cut-and-fill. Opportunities to transition to lower cost bulk mining are currently being studied, which could result in potentially higher output in the ELG Underground and lower unit costs. The Company also sees significant potential to continue to grow the Mineral Reserves of the ELG Underground, which increased 20% in 2021 following a 15% increase in 2020.

Figure 2: ML Project expected to be the sole source of ore post 2027 based on current Mineral ReservesFigure 2 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/27fc720f-9534-4bae-b5f6-111822bfde2d

Notes to Figure 2:

1. Ore mined in 2022 includes Q1/22 versus the Technical Report which incorporates estimates over the project period commencing April 1, 2022.

The ML Project is being developed with six primary mining zones each with designated infrastructure. At steady-state production, the underground mine is expected to deliver an average rate of 7,500 tpd of ore to the upgraded processing plant. The Technical Report assumes a credible ramp-up to steady-state production with first development ore in Q4 2023. Production stoping is expected to commence in Q2 2024 with the mine achieving commercial production in Q1 2025. The ML Project is expected to be operating at 7,500 tpd in Q1 2027, implying a 3-year ramp-up from first production ore or 3.5 years from first development ore (Figure 3).

Figure 3: Credible ramp-up period of 3 years assumed for the ML ProjectFigure 3 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/8ec08ebd-1faf-40cb-a575-23aaf01b3f7a

The predominant mining method at the ML Project will be longhole stoping. Mined stopes will be filled using paste backfill. The paste plant will be located on surface with access from the south side of the Balsas River. Ore will be conveyed through the 6.5-kilometre Guajes Tunnel, which optimizes the use of existing infrastructure by connecting the processing plant on the north side of the Balsas River to the ML Project on the south side.

ProcessingOre mined from the Morelos Complex (ELG Open Pit, ELG Underground and ML Project) as well as surface stockpiles will be processed through the existing facility located on the north side of the Balsas River. Upgrades to the existing processing plant are required to deal with higher levels of soluble iron and recover elevated levels of copper and silver contained within the ML deposit relative to those found within the ELG Mine Complex. Additions to the current processing plant include a Cu flotation circuit, an FeS flotation circuit, water treatment facility, regrind mill, and variable speed drives on the ball mill.

The current processing facility is expected to operate at 13,000 tpd through September 2024. The current plan is to complete the required tie-ins to the processing plant over a 4-week period in October 2024, with wet commissioning to commence in November 2024. The commissioning period for the flotation circuits is expected to be relatively straight forward, and steady-state throughput of 10,600 tpd is expected to be reached by year-end 2024. Depending on the mix of ore types and sources, a portion of feed will be blended, while other portions will be batched processed over the life of mine.

A separate stockpile of ore mined from the ML Project between Q4 2023 and Q4 2024 will be created to facilitate the wet commissioning of the upgraded processing plant (Figure 4).

Figure 4: Exploration and drilling key to ensuring full capacity utilization in the processing plant post 2027Figure 4 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/9de482bb-2128-48f4-a8ec-ec48410cbf00

Notes to Figure 4:

1. Ore processed in 2022 includes Q1/22 versus the Technical Report which incorporates estimates over the project period commencing April 1, 2022.

The Company sees significant potential to bolster the long-term production profile of the Morelos Complex by extending the life of the ELG Underground, potentially increasing mining rates in the ELG Underground, potentially developing the nearby EPO deposit, and identifying additional sources of incremental feed across the broader Morelos Property. Incremental sources of higher-grade feed would allow the Company to defer the processing of lower grade stockpiles until later in the mine life.

The upgraded processing plant is expected to result in commercially meaningful recoveries for Cu and improved recoveries for Ag, while maintaining Au recoveries at similar levels to those currently being achieved. Metallurgical recoveries over the life of the Morelos Complex are expected to average 89.8% Au, 80.5% Ag, and 86.4% Cu. The life of mine recoveries, including Media Luna, compare favourably to the current plant configuration recoveries of 89.0% Au, 30.0% Ag and 10.0% Cu.

Table 2: Upgraded processing plant expected to deliver significantly higher recoveries for Cu and Ag
Morelos Complex	Concentrate			Doré/Other			Total
	Au	Ag	Cu	Au	Ag	Cu	Au	Ag	Cu
	(koz)	(koz)	(Mlb)	(koz)	(koz)	(Mlb)	(koz)	(koz)	(Mlb)
Life of Mine
Recovered to	37.3%	72.6%	82.8%	52.5%	7.9%	3.5%	89.8%	80.5%	86.4%
Recovered metal	1,380	15,461	407.4	1,940	1,681	17.2	3,320	17,142	424.6
Payable factor	98.25%	90.00%	96.50%	99.96%	99.50%	96.50%	99.25%	90.93%	96.50%
Payable metal	1,354	13,915	392.3	1,940	1,673	16.6	3,294	15,587	408.9

Notes to Table 2:

1. Recoveries and payable factors are based on the project period commencing April 1, 2022.

Recovered production is subject to payable factors associated with metal contained in concentrate and to a lesser extent doré. Over the life of mine, total payable factors for metals contained in concentrate and doré/other are forecast to average 99.3% Au, 90.9% Ag, and 96.5% Cu (Table 2).

Tailings ManagementTailings from the current processing facility will continue to be deposited in the existing Filtered Tailings Storage Facility. Upon commissioning of the upgraded processing plant, the Company envisions depositing tailings into the depleted Guajes open pit. Over the life of the Morelos Complex, approximately 50% of tailings generated will be deposited into one of the tailings facilities with the remainder used underground as paste back-fill.

Key InfrastructureThe development of the ML Project requires significant investment in infrastructure to access the deposit as well as exploit the deposit, including development of the Guajes Tunnel, South Portal Upper, South Portal Lower and a surface paste plant.

The 6.5-kilometre Guajes Tunnel is a key schedule item as the tunnel will be the primary conduit for moving ore, material, supplies, and personnel between ML on the south side of the Balsas River and the processing plant on the north side. The $76M go forward investment in the Guajes Tunnel, although more capital intensive than concepts outlined in the 2018 Preliminary Economic Assessment (the “PEA”), was selected as the superior option given that it provides unfettered access to the entire south side of the Morelos Property, an area the Company believes offers significant resource upside.

The development of South Portal Upper and South Portal Lower will provide access for personnel, materials, and supplies from the south side of the property. These access points will also allow for the development of the upper, middle, and lower portions of the Media Luna deposit in advance of the Guajes Tunnel being completed. In addition, South Portal Lower will allow the Company to commence development of the Guajes Tunnel from the south side of the Balsas River, which will optimize the overall progress of tunnelling. The Company has budgeted advance rates of 6-6.5 metres/day (“m/d”) from north to south and 4.5-5 m/d from south to north. Development of the two southside portals is estimated at $40M over the project period.

The construction of an appropriate surface paste plant on the south side of the Balsas River is also an upgrade over the PEA conceptual design which envisioned cemented rock fill. Paste backfill is a more suitable option for mining the Media Luna deposit given the predominant mining method will be longhole stoping, average size of stopes, overall scale of the underground operation, and more attractive operating cost profile. Construction of the paste plant and associated tailings pipeline is estimated at $78M.

The increase in power requirements associated with the ML Project and upgraded processing facility will require upgrades to the main power line, substation, and switching centre. Overall power demand is expected to increase to a peak load of 60 MW in 2027 from 25 MW in 2022. Power upgrades are estimated at $19M.

Capital ExpendituresNon-sustaining capital expenditures3 over the life of the Morelos Complex are estimated at $850M, including $848M to bring the ML Project into commercial production. The upfront capital investment in the ML Project includes $85M of underground mine development during the pre-commercial mining period between Q4 2023 and Q4 2024 (Table 3).

The upfront capital required to develop the ML Project excludes $124M of direct project expenditures incurred prior to April 1, 2022, of which $37M is related to the Guajes Tunnel and $28M to the development of South Portal Upper and Lower. In addition to the ML Project, approximately $2M is estimated to complete Portal #3 within the ELG Underground.

Of the upfront capital expenditure to develop the ML Project, approximately 60% is related to direct project expenditures and the remainder is associated with indirect expenditures, including $62M related to freight and IMMEX. Of the direct project expenditures, the largest capital outlays are related to underground mine development ($173M), accessing the deposit via the Guajes Tunnel ($76M) as well as South Portal Upper and Lower ($40M), upgrades to the process plant ($98M), and tailings/paste plant ($78M). Of the indirect expenditures, the largest components are contingency ($100M) and EPCM costs ($82M).

Table 3: The ML Project is expected to cost $848M to develop
Metrics as of April 1, 2022	Total
	($M)
Non-Sustaining - Media Luna Project
Directs
Guajes Portal & Tunnel	$75.8
South Portals & Tunnels	$40.2
Underground Mine	$172.6
Process Plant	$98.3
Tailings and Paste Plant	$77.8
On-Site Infrastructure	$15.0
Off-Site Infrastructure	$25.9
Total Directs	$505.6
Indirects
Freight and IMMEX	$61.6
Contractor Indirects	$20.3
Mobilization, Spares, Vendor Support	$26.6
EPCM	$81.5
Owners Cost	$53.3
Contingency	$99.5
Total Indirects	$342.8
Total Non-Sustaining - Media Luna Project	$848.4
Total Non-Sustaining - ELG	$1.7
Total Non-Sustaining - Morelos Complex	$850.1

Notes to Table 3:

1. Non-sustaining capital expenditures is a Non-GAAP Measure. See footnote 3 above and the Cautionary Note below on Non-GAAP Measures.
2. Estimates are based on the project period commencing April 1, 2022. All amounts in U.S. dollars.

Sustaining capital expenditures over the life of the project are estimated at $545M, implying an average annual spend of $46M. Sustaining capital expenditures include $94M of capitalized stripping within the ELG Open Pit.

Table 4: Annual sustaining capital expenditures expected to average $46M over life of the Morelos Complex
Metrics as of April 1, 2022	Total		Total	Total
	($M)		($/t ore)	($/oz AuEq)
Total ore processed (kt)			39,778
Total payable gold equivalent sold (koz AuEq)				4,392
Sustaining
ELG Open Pit - Capitalized Stripping	$93.7		$2.4	$21
ELG Open Pit - Other	$24.8		$0.6	$6
ELG Underground	$33.8		$0.8	$8
Media Luna Underground	$266.0		$6.7	$61
Process Plant	$92.8		$2.3	$21
Support equipment leases	$34.0		$0.9	$8
Total Sustaining - Morelos Complex	$545.1		$13.7	$124

Notes to Table 4:

1. Sustaining capital expenditure is a Non-GAAP Measure. See footnote 3 above and Cautionary Note below on Non-GAAP Measures.
2. AuEq sold includes Au and AuEq values for Ag and Cu assuming long-term metal prices of $1,600/oz Au ($1,700/oz in 2022), $21/oz Ag, and $3.50/lb Cu.
3. A summary of life of mine payable sold values for Au, Ag and Cu can be found in Table 1 including tonnes processed and average processed grades. Expected recovery and payable factors for Au, Ag and Cu can be found in Table 2.
4. Estimates are based on the project period commencing April 1, 2022. All amounts in U.S. dollars.

Reclamation costs over the life of the project are estimated at $93M.

Operating CostsTotal cash costs (“TCC”)3 and mine-site all-in sustaining costs (“AISC”)3 are expected to average $809/oz AuEq sold and $954/oz AuEq sold over the life of mine. On a by-product basis (net of Cu and Ag credits), TCC and mine-site AISC are expected to average $545/oz Au sold and $739/oz Au sold, respectively.

Table 5: Attractive cost profile maintained with the development of the ML Project
Metrics as of April 1, 2022	LOM		AuEq	Au
	($M)		($/oz)	($/oz)
Metal Sold
Total payable gold equivalent sold (AuEq)			4,392
Total payable gold sold (Au)				3,294
Operating Costs
Operating expenses	$3,122		$711	$947
Treatment/Refining/Transport	$226		$51	$69
Royalties	$206		$47	$63
Total cash costs - before adjustments	$3,554		$809	$1,079
Silver revenue (by-product)	($1,432)		$0	($99)
Copper revenue (by-product)	($327)		$0	($435)
Total cash costs - after adjustments	$1,795		$809	$545
Capitalized open pit waste mining	$94		$21	$28
Sustaining capital expenditures	$451		$103	$138
Reclamation	$93		$21	$28
Mine-site all-in sustaining costs	$2,433		$954	$739

Note to Table 5:

1. Total cash costs and mine site all-in sustaining costs are Non-GAAP Measures. See footnote 3 above and Cautionary Note below on Non-GAAP Measures
2. AuEq sold includes Au and AuEq values for Ag and Cu assuming long-term metal prices of $1,600/oz Au ($1,700/oz in 2022), $21/oz Ag, and $3.50/lb Cu.
3. A summary of life of mine payable sold values for Au, Ag and Cu can be found in Table 1 including tonnes processed and average processed grades. Expected recovery and payable factors for Au, Ag and Cu can be found in Table 2.
4. Estimates are based on the project period commencing April 1, 2022. All amounts in U.S. dollars.

At base case metal prices, the Morelos Complex is expected to deliver a TCC margin3 of 50% over the project period and a mine-site AISC margin3 of 41%. Mine-site AISC and margins exclude corporate level costs.

Operating expenses include approximately $25/oz AuEq sold of profit sharing (“PTU”) over the life of the Morelos Complex. PTU has been allocated to mining costs, processing costs and site administration costs. PTU is mandated by the Government of Mexico and is based on taxable profits generated by the mine in Mexico. The breakdown of key unit costs, with and without PTU, is summarized in Table 9.

The Company sees opportunities to reduce unit costs by filling the mill, as fixed costs associated with processing and site general and administrative costs (“G&A”) would clearly benefit from higher capacity utilization in the processing plant post-2027.

EconomicsThe after-tax NPV (5% discount rate) of the Morelos Complex is estimated at $1,040M assuming long-term metal prices of $1,600/oz Au ($1,700/oz in 2022), $21/oz Ag, and $3.50/lb Cu. The after-tax NPV (5%) of the ML Project is estimated at $458M with a projected after-tax IRR of 16.1%.

At spot metal prices, the Morelos Complex has an estimated after-tax NPV (5%) of $1,751M. The after-tax NPV (5%) of the ML Project is estimated at $949M with an implied after-tax IRR of 24.9%. Spot case economics (as of March 25, 2022) assume metal prices of $1,950oz Au, $25.50/oz Ag, and $4.70/lb Cu.

The NPV and IRR estimates outlined in the March 2022 Technical Report are predicated on a project period commencing April 1, 2022 (Table 6).

Table 6: NPV of Morelos Complex $1,040M at base case prices; NPV rises to $1,751M at spot prices
Metrics as of April 1, 2022		Morelos		ELG		ML	Morelos		ELG		ML
		Complex		Standalone		Incremental	Complex		Standalone		Incremental
				Base Case Metal Prices					Spot Case Metal Prices
Economics
Gross revenue	$M	$7,106		$2,234		$4,872	$8,738		$2,626		$6,112
EBITDA	$M	$3,503		$1,067		$2,436	$4,969		$1,428		$3,541
After-tax NPV (0%)	$M	$1,418		$590		$828	$2,322		$823		$1,499
After-tax NPV (5%)	$M	$1,040		$582		$458	$1,751		$802		$949
After-tax NPV (10%)	$M	$778		$572		$206	$1,355		$781		$575
After-tax IRR	%					16.1%					24.9%
Project payback period	years					5.8					5.3
Long-Term Metal Prices
Gold price	$/oz	$1,600		$1,600		$1,600	$1,950		$1,950		$1,950
Silver price	$/oz	$21.00		$21.00		$21.00	$25.50		$25.50		$25.50
Copper price	$/lb	$3.50		$3.50		$3.50	$4.70		$4.70		$4.70

Notes to Table 6:

1. EBITDA is a Non-GAAP Measure. See footnote 3 above and the Cautionary Note below on Non-GAAP Measures.
2. Estimates are based on the project period commencing April 1, 2022. All amounts in U.S. dollars.

Owing to the intermingled nature of the ML Project with the existing ELG Mining Complex (ELG standalone case), the NPV and IRR had to be calculated with a view to fairly illustrating the value of the ML Project. The after-tax NPV of the ML Project was calculated as the difference between the NPV of the Morelos Complex and the NPV of the ELG standalone case using constant discount rates. The IRR and payback period for the ML Project were calculated using the differential between the after-tax cash flow of the Morelos Complex and the ELG standalone case. The calculation of NPV and IRR under all cases include reclamation/closure costs.

The ELG standalone case excludes a portion of underground Mineral Reserves, which would be processed after Q3 2025. This is because, without the development of the ML Project, it would not be economic to process the remaining Mineral Reserves, as the ELG Underground would not be able to support the overhead of operating the processing plant and site administration post depletion of open pit reserves and surface stockpiles.

Given the underlying exploration potential of the broader Morelos Property, including a number of well supported targets, Torex expects to build on the point in time economics set out in the Technical Report by extending Mineral Reserves within the existing deposits, potentially bringing new deposits such as the nearby EPO deposit into Reserves, and identifying new sources of incremental feed beyond the ML Project. The focus on drilling is not only to extend the current life of the Morelos Complex, but to bolster medium-term production by filling the mill beyond 2027; on the current reserve case, this is when the ML Project becomes the sole source of feed, and the processing plant will be under utilized.

The economics of the Morelos Complex and the ML Project are highly sensitive to changes in metal prices as well as estimated operating and capital costs (see Table 10 for a detailed sensitivity analysis).

ESG & PermittingAs the Morelos Complex evolves, Torex will continue to build on its reputation as an industry leader in ESG. The health and safety of the Company’s workforce and surrounding communities will be attended to in all aspects of the design and construction of the ML Project. The Company’s robust environmental and social management systems will extend from the ELG Mine Complex to the ML Project, with a commitment to meet or surpass environmental regulatory requirements while doing zero harm to the natural environment. The planned hybrid mining fleet (battery electric and diesel) at the ML Project will also contribute to the Company’s ongoing efforts to reduce its carbon footprint.

All required surface rights to land for ongoing operations at the ELG Mine Complex and for the direct development of the ML Project have been secured through long-term lease agreements. Relationships with local communities remain positive and productive on both the north and south sides of the Balsas River, through the implementation of 11 unique community development agreements (CODECOPs) that promote local community and economic development.

The ELG Mine Complex has all necessary permits allowing for operations. An environmental permit modification (“MIA Modification”) was granted in March 2021 to allow for early works outside of the existing permit boundary to access the Media Luna deposit on the south side of the Balsas River. In July 2021, the Company applied for a ‘MIA-Integral’ to allow for integrated operations at the ELG Mine Complex and the ML Project. There are no major technical or social risks that have been identified, and approval is expected in the first half of 2022. In addition, the Company will require authorization from utility authorities to increase the power draw for the ML Project, through a connection to the regional 230kV power line system for the higher electricity loads for the ML Project. An environmental permit modification is also planned for submission in the second half of 2022 for the future in-pit tailings storage facility.

The Company will continue to achieve compliance with voluntary ESG performance standards such as the World Gold Council Responsible Gold Mining Principles, the International Cyanide Management Code, and the Mexican federal environmental agency’s “Industria Limpia” (Clean Industry) certification. In addition, the future in-pit tailings storage facility is being designed in accordance with the new Global Industry Standard on Tailings Management.

FUNDING AND LIQUIDITYTorex plans to fund the development of the ML Project through internal cash flow as well as a prudent level of long-term debt. The Company has also taken initiatives to reduce price uncertainty during the development of the ML Project. At year-end, Torex had $256M of cash, no long-term debt and total liquidity of $406M, including $150M available on the Company’s undrawn credit facility.

Leveraging the base case economics outlined in the Technical Report, the Company expects to generate average annual cash flow of approximately $190M (approximately $290M at spot case metal prices) prior to capital expenditures on the ML Project between 2022 and 2024. The projected cash flow through 2026 includes annual corporate G&A of $20M and an assumed annual exploration/drilling scenario of $35M, expenditures which were not included in the asset level economics in the Technical Report.

Figure 5: Debt financing expected to support strategic priorities during build-out of the ML ProjectFigure 5 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/bcf87ba7-c962-4a38-b6eb-b7878237e503   

Notes to Figure 5:

1. Projected year-end cash balances based on cash flow profile outlined in March 2022 Technical Report using base case metal prices of $1,600/oz Au ($1,700/oz in 2022), $21/oz Ag and $3.50/lb Cu.
2. Cash flows adjusted to reflect an additional $20M annually of Corporate G&A and $35M annually of exploration/drilling through 2026.
3. Debt of $275MM assumed within funding scenario and includes debt servicing costs (interest rate of 7%), a four-year term, and a bullet repayment in 2026.

Based on the current projections, assumptions noted previously and a desire to maintain $100M of liquidity throughout the build, Torex plans to finance the remaining expenditures through long-term debt. The Company plans to be in a position to execute on a debt financing in H2 2022 assuming favourable market conditions and pricing. Debt options currently being investigated include a gold prepay, high yield debt, and/or expanded credit facility. Depending on the debt vehicle chosen, Torex anticipates debt financing in the range of $250M to $300M.

The Company recently executed monthly forward price contracts on future gold production to reduce downside price risk during the build-out of the ML Project. The hedges represent approximately 25% of forecast gold production between Q4 2022 and Q4 2023. Details of the forward contracts are as follows:

• Q4 2022: 30 koz in total at an average gold price of $1,910/oz
• FY 2023: 108 koz in total at an average gold price of $1,924/oz

Management will continue to monitor market conditions and may enter into additional contracts to minimize downside price risk during the build-out of the ML Project.

2022 CAPITAL EXPENDITURE GUIDANCE FOR ML

With Board approval granted for the development of the ML Project, the Company anticipates investing $220M to $270M in the development of the ML Project with an additional $20M of non-sustaining capital expenditures3 related to infill drilling at the ML Project and other expenditures. Annual production and cost guidance for 2022 remains unchanged from the levels outlined in January 2022 (Table 7).

Table 7: Torex expects to invest $220 to $270M towards the development of the ML Project in 2022
		2022 Guidance		2022 Guidance
		Updated		Original
Gold Production	koz	430 to 470		430 to 470
Total Cash Costs	$/oz	$695 to $735		$695 to $735
All-in Sustaining Costs	$/oz	$980 to $1,030		$980 to $1,030
Sustaining Capital Expenditures
Capitalized Waste	$M	$50 to $60		$50 to $60
ELG Sustaining	$M	$35 to $45		$35 to $45
Total Sustaining	$M	$85 to $105		$85 to $105
Non-Sustaining Capital Expenditures
ELG Non-Sustaining	$M	$15 to $20		$15 to $20
Media Luna Project	$M	$220 to $270		na
Media Luna Infill Drilling/Other	$M	$20		na
Non-Sustaining Capital Expenditures	$M	$255 to $310		Pending

Notes to Table 7:

1. Total cash costs, all-in sustaining costs, sustaining capital expenditures and non-sustaining capital expenditures are Non-GAAP Measures. See footnote 3 above and Cautionary Note below on Non-GAAP Measures.

3-YEAR OUTLOOK

Based on the results of the updated Technical Report, the Company has updated its 3-year production outlook to incorporate AuEq payable production2 from the ML Project commencing in 2024. The updated outlook forms the new base case for production from the Company’s Morelos Complex. Initiatives to further improve upon the mine plans are underway, including further potential optimizations at the ELG Mine Complex (Table 8).

Table 8: Multi-year outlook bolstered by production from the ML Project starting in 2024
Payable Production		Guidance	Multi-Year Outlook
		2022	2023	2024	2025
Updated Outlook (Morelos Complex)
Gold	koz	430 to 470	420 to 460	-	-
Gold equivalent	koz	-	-	385 to 425	415 to 455
Prior Outlook (ELG Complex standalone)
Gold	koz	430 to 470	400 to 450	300 to 350	-

Notes to Table 8:

1. Gold equivalent (AuEq) payable production includes Au and AuEq values for Ag and Cu assuming long-term metal prices of $1,600/oz Au, $21/oz Ag, and $3.50/lb Cu.
2. A summary of life of mine payable sold values for Au, Ag and Cu can be found in Table 1 including tonnes processed and average processed grades. Expected recovery and payable factors for Au, Ag and Cu can be found in Table 2.

The increase in the Company’s production outlook in 2023 reflects optimizations to the ELG Open Pit and ELG Underground since Torex’s inaugural outlook was released in September 2021. The forecast increase AuEq production in 2024 reflects the benefit of AuEq production from the ML Project versus the prior estimate which only assumed Au production from the ELG Mine Complex. Production in 2025 is expected to increase over 2024 given the benefit of higher proportion of feed as the ML Project continues to ramp-up.

TECHNICAL SESSION TO BE HELD ON APRIL 1, 2022A technical session (“Technical Session”) to discuss the results set out in the Technical Report will be held tomorrow morning (Friday, April 1, 2022). The live webcast is scheduled to start at 8:30 AM ET and will last approximately 3 hours. The Technical Session will be hosted by the management team of Torex.

In order to join the webcast, participants must register in advance through the registration link. Once registered, the live webcast can be accessed through the event portal link.

•   Registration link:		www.torexgoldtechnicalsession2022.com/register orhttps://webinars.vantagevenues.com/torexgold-technical-session-2022-reg/
•   Event portal link:		www.torexgoldtechnicalsession2022.com orhttps://webinars.vantagevenues.com/torexgold-technical-session-2022/

Following the Technical Session, a link of the webcast will be posted to the Company’s website (www.torexgold.com).

TECHNICAL REPORT AND QUALIFIED PERSONSThe Technical Report titled ELG Mine Complex Life of Mine Plan and Media Luna Feasibility Study with an effective date of March 16, 2022, and a filing date of March 31, 2022, prepared in accordance with NI 43-101 for the Morelos Complex, has been filed on SEDAR (www.sedar.com). Readers are encouraged to read the Technical Report in its entirety, including all qualifications, assumptions and exclusions that relate to the Mineral Resource, Mineral Reserves and feasibility study related to the integrated project. The Technical Report is intended to be read as a whole, and sections should not be read or relied upon out of context.

Disclosure of a scientific or technical nature in this press release in respect of the Morelos Mineral Reserve estimate and the Mineral Resource estimate has been approved by Johannes (Gertjan) Bekkers P.Eng. the Director of Mine Technical Services with Torex, and a "Qualified Person". Mr. Bekkers is a registered member of the Professional Engineers of Ontario, has worked the majority of his career in open pit and underground hard rock mining in Canada and overseas in progressively senior engineering roles with relevant experience in mine design and planning, mining economic viability assessments, and mining studies.

Disclosure of a scientific or technical nature in this press release in respect of the “Highlights of the Technical Report”, the “Summary of Technical Report for Morelos Complex”, including the Tables and Figures referred to therein, but excluding the section titled “Funding and Liquidity” other than paragraph 2 of “Funding and Liquidity” has been approved by Robert Davidson P.E., the Vice President of M3 Engineering & Technology Corp, and a "Qualified Person". Mr. Davidson is a Registered Professional Engineer in good standing in the State of Arizona, has practiced his profession for 16 years and he has been directly involved in the development of the infrastructure, capital cost, operating cost, and financial modelling for the ML Project.

All other disclosure of a scientific or technical nature in this press release including the “2022 Capital Expenditure Guidance for ML” and the “3-Year Outlook”, including the Tables referred to therein, has been reviewed and approved by David Stefanuto P.Eng. the Executive Vice President, Technical Services and Capital Projects, and a "Qualified Person". Mr. Stefanuto is a registered member of the Professional Engineers of Ontario, with more than 25 years of experience working in both surface and underground mining operations.

ABOUT TOREX GOLD RESOURCES INC.Torex is an intermediate gold producer based in Canada, engaged in the exploration, development, and operation of its 100% owned Morelos Property, an area of 29,000 hectares in the highly prospective Guerrero Gold Belt located 180 kilometres southwest of Mexico City. The Company’s principal asset is the Morelos Complex, which includes the El Limón Guajes (“ELG”) Mining Complex, Media Luna Project, processing plant and related infrastructure. Commercial production from the Morelos Complex commenced on April 1, 2016 and an updated Technical Report for the Morelos Complex was released in March 2022. Torex’s key strategic objectives are to extend and optimize production from the ELG Mining Complex, de-risk and advance Media Luna to commercial production, build on ESG excellence, and to grow through ongoing exploration across the entire Morelos Property.

FOR FURTHER INFORMATION, PLEASE CONTACT:

TOREX GOLD RESOURCES INC.
Jody Kuzenko		Dan Rollins
President and CEO		Vice President, Corporate Development & Investor Relations
Direct: (647) 725-9982		Direct: (647) 260-1503
jody.kuzenko@torexgold.com		dan.rollins@torexgold.com

CAUTIONARY NOTES

Non-GAAP Financial MeasuresThe Company has presented certain future non-GAAP financial measures (“Non-GAAP Measures”) in this presentation within the meaning of National Instrument 52-112 – Non-GAAP and Other Financial Measures. Total cash costs per ounce of gold (Au) or gold equivalent (AuEq) sold (“TCC”), total cash costs margin per ounce of gold or AuEq sold, mine-site all-in sustaining costs per ounce of gold or AuEq sold (“AISC”), mine site AISC margin, mine-site earnings before interest, taxes, depreciation and amortization (“mine-site EBITDA”), sustaining capital expenditures and non-sustaining capital expenditures included in this news release are Non-GAAP Measures. Non-GAAP Measures have no standard meaning under International Financial Reporting Standards (“IFRS”), the financial reporting framework used by the Company, and may not be comparable to other issuers. The Company believes that these measures, while not a substitute for measures of performance prepared in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance or financial position of the Company. Please see Table 13 for the equivalent historical non-GAAP measure. For a detailed reconciliation of each historical Non-GAAP Measure to its most directly comparable GAAP financial measure, please refer to the Company’s management’s discussion and analysis (“MD&A”) for the year ended December 31, 2021, dated February 23, 2022, which is available on the Company’s website (www.torexgold.com) and under the Company’s SEDAR profile (www.sedar.com). Please note that in this news release, the AISC, AISC margin, potential sustaining exploration costs and mine-site EBITDA do not include Torex corporate G&A.

Forward-looking StatementsThis press release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, without limitation, information with respect to proposed exploration, development, construction and production activities and their timing, the results set out in the Technical Report including the feasibility study of the ML Project, including, as applicable; mineral resource estimates, reserve estimates and potential mineralization; the estimates of capital and sustaining costs; assumed metal payable factors; projected revenues and cash flows; estimated net present values and anticipated internal rates of return; estimated payback period; future production, operating costs, total cash costs and mine-site sustaining costs and other expenses and other economic parameters; expected mine life or project life; expected mine, mill and metal production and metallurgical recoveries; the initiatives underway to realize available upside and build-on the solid base case production and cash flow; the Company’s future exploration potential; expectation that the ML Project will set up the Morelos Complex for safe and reliable production, free cash flow post the construction period, and lasting economic prosperity for all of those who share stakes in the Company; with the investment in the ML Project, the foundation for the future growth plans of the Company will be firmly laid; the economics set out in the Technical Report are grounded in operating costs, capital costs, and ramp-up time frames being both realistic and achievable; the expected further improvement in the ML Project’s economics due to the abundance of prospectivity on the south side of the Morelos Property; the opportunity for the Company to diversify into becoming a meaningful copper producer; the ongoing success of the Company’s strategy to cash up ahead of the build; the expected funding of the development of ML using the Company’s robust balance sheet, strong forecasted cash flow, and a prudent level of debt; liquidity at year-end including the undrawn revolving debt facility; projected cash flow from ELG through year-end 2024; goal of maintaining a minimum liquidity position; the evaluation debt financing and expected timing on a financing decision; expectation that the Company is well positioned financially, socially, and technically to advance the development of ML Project while continuing to invest in value accretive exploration that will both extend the life of mine and continue to further enhance the overall return of the Morelos Complex; the 2022 expenditure guidance, including anticipated non-sustaining capital expenditures; the updated 3 year production outlook; plans to further optimize the ELG Mine Complex; the expected increase in production in 2025; initiatives planned to fill the mill beyond 2027; opportunities to transition to lower cost long-hole stoping at ELG which could result in potentially higher throughput in the ELG Underground and lower unit costs; assumed ramp up period to commercial production for the ML Project; the planned upgrades and additions to the process plant to process the ore from ML; expected availability of stockpiles to wet commission the upgraded process plant; tailings management plans; belief that the southside of the Morelos Property offers significate resource upside; the expected access that the South Portals will provide in advance of the completion of the Guajes Tunnel; the increased power demands of the ML Project. potential to reduce unit costs by filling the mill; the estimated NPV and implied IRR; the expected incremental benefit of ML to ELG; the exploration potential of the broader Morelos Property; expectation to build-on the point in time economics by extending reserves within the existing deposits, potentially bringing new deposits such as EPO into reserves, and identifying new sources of incremental feed beyond ML; the focus on drilling to extend the current life of the Morelos Complex and to bolster medium term production by filling the mill beyond 2027, when the processing plant will be under utilized with ML the sole source of feed; intention to attend to the health and safety of the Company’s workforce and the surrounding communities in the design and construction of the ML Project; commitment to meet or surpass environmental regulatory requirements while doing zero harm to the natural environment; planned hybrid mining fleet; expected approval of the permit authorizing the operations for the ML Project; plans to continue to achieve compliance with ESG performance standards; plans to fund the development of ML through internal cash flow as well as a prudent level of long-term debt; expected cash flow generation prior to the capital expenditures on the ML Project, including expected corporate G&A and exploration/drilling expenditures; and desire to maintain $100M of liquidity. Generally, forward-looking information can be identified by the use of terminology such as “plans”, “expect”, “outlook”, “forecast” “estimate”, “near-term”, “long term”, “opportunity”, “potential”, “plan”, “envision”, “beyond”, “commitment” and “ongoing” or variations of such words, or statements that certain actions, events or results “can”, “may”, “would”, “will”, occur, or “will be” taken or achieved. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including, without limitation, forward-looking statements and assumptions pertaining to the following: risk associated with skarn deposits including grade variability; fluctuation in gold, copper and other metal prices; commodity price risk; currency exchange rate fluctuations; ability to realize the results of the feasibility study; uncertainty regarding the inclusion of inferred mineral resources in the mineral resource estimate and the ability to upgrade the mineral resources to a higher category, uncertainty regarding the ability to convert any part of the mineral resource into mineral reserves, uncertainty involving resource estimates and the ability to extract those resources economically, or at all; uncertainty involving drilling programs and the ability to expand and upgrade existing resource estimates; ability to obtain the timely supply of services, equipment and materials for the operation of the ELG Mine Complex and the design, development and construction of the ML Project; the regulatory process and actions; ability to finance the ML Project on reasonable terms, and those risk factors identified in the Technical Report and the Company’s annual information form and MD&A. Forward-looking information is based on the assumptions discussed in the Technical Report and such other reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances at the date such statements are made. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be as anticipated. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, whether as a result of new information or future events or otherwise, except as may be required by applicable securities laws.

Table 9: Summary of Unit Operating Costs
Metrics as of April 1, 2022		Q2/22 to Q4/24	2025+	Life of Mine
		(Total)	(Total)	(Total)
Physicals
Total ore mined - ELG Open Pit	kt	9,528	0	9,528
Total waste mined - ELG Open Pit	kt	71,121	0	71,121
Total mined - ELG Open Pit	kt	80,649	0	80,649
Total ore mined - ELG Underground	kt	1,404	1,145	2,549
Total ore mined - ML Underground	kt	806	22,210	23,017
Net stockpile drawdowns	kt	887	3,798	4,685
Total ore processed	kt	12,624	27,154	39,778
Operating Unit Costs (with PTU)
ELG Open Pit	$/t mined	$2.81	$0.00	$2.81
ELG Underground	$/t ore mined	$96.25	$100.56	$98.19
ML Underground	$/t ore mined	$44.77	$33.65	$34.04
Processing	$/t ore milled	$32.63	$35.43	$34.54
Site support	$/t ore milled	$11.49	$14.39	$13.47
Operating Unit Costs (without PTU)
ELG Open Pit	$/t mined	$2.67	$0.00	$2.67
ELG Underground	$/t ore mined	$95.10	$99.12	$96.90
ML Underground	$/t ore mined	$44.77	$33.00	$33.42
Processing	$/t ore milled	$31.65	$34.78	$33.79
Site support	$/t ore milled	$10.85	$13.98	$12.99
Total Operating Cost
ELG Open Pit	$M	$215.2	$10.9	$226.1
ELG Underground	$M	$133.7	$113.3	$247.0
ML Underground	$M	$36.8	$733.0	$769.8
Processing	$M	$399.6	$944.6	$1,344.2
Site support	$M	$137.0	$379.7	$516.7
Transport/Treatment/Refining	$M	$12.3	$213.4	$225.7
Employee profit sharing	$M	$56.7	$55.0	$111.7
Capitalized stripping	$M	($44.5)	($49.2)	($93.7)
Total operating cost	$M	$946.8	$2,400.7	$3,347.5
Total operating cost	$/t ore milled	$75.00	$88.41	$84.15

Notes to Table 9:

1. Operating unit costs (mining, processing, site administration, and total) are Non-GAAP Measures. See footnote 3 and Cautionary Note above on Non-GAAP Measures.
2. Estimates are based on the project period commencing April 1, 2022. All amounts in U.S. dollars.

Table 10: After-tax Sensitivities to Key Factors
		($400)	($200)	($100)	Base Case	$100	$200	$400
Gold Price - Long-term	$/oz	$1,200	$1,400	$1,500	$1,600	$1,700	$1,800	$2,000
Morelos Complex - NPV (5%)	$M	$378	$733	$890	$1,040	$1,186	$1,331	$1,617
ML Incremental - NPV (5%)	$M	$49	$277	$371	$458	$538	$616	$764
ML Incremental - IRR	%	6.4%	12.2%	14.3%	16.1%	17.7%	19.1%	21.8%
		($1.50)	($1.00)	($0.50)	Base Case	$0.50	$1.00	$1.50
Copper Price - Long-term	$/lb	$2.00	$2.50	$3.00	$3.50	$4.00	$4.50	$5.00
Morelos Complex - NPV (5%)	$M	$728	$839	$945	$1,040	$1,127	$1,210	$1,291
ML Incremental - NPV (5%)	$M	$149	$259	$364	$458	$544	$626	$705
ML Incremental - IRR	%	9.3%	11.9%	14.2%	16.1%	17.7%	19.3%	20.7%
		($6.00)	($4.00)	($2.00)	Base Case	$2.00	$4.00	$6.00
Silver Price - Long-term	$/oz	$15.00	$17.00	$19.00	$21.00	$23.00	$25.00	$27.00
Morelos Complex - NPV (5%)	$M	$998	$1,013	$1,027	$1,040	$1,054	$1,068	$1,081
ML Incremental - NPV (5%)	$M	$418	$432	$445	$458	$471	$484	$497
ML Incremental - IRR	%	15.3%	15.6%	15.8%	16.1%	16.3%	16.6%	16.8%
		(30%)	(20%)	(10%)	Base Case	10%	20%	30%
Media Luna Project Capex	$M	$594	$678	$763	$848	$933	$1,018	$1,102
Morelos Complex - NPV (5%)	$M	$1,211	$1,155	$1,099	$1,040	$981	$919	$856
ML Incremental - NPV (5%)	$M	$629	$573	$517	$458	$399	$337	$274
ML Incremental - IRR	%	24.4%	21.2%	18.4%	16.1%	14.0%	12.2%	10.5%
		(30%)	(20%)	(10%)	Base Case	10%	20%	30%
Sustaining Capex	$M	$316	$361	$406	$452	$497	$542	$587
Morelos Complex - NPV (5%)	$M	$1,121	$1,095	$1,068	$1,040	$1,013	$986	$958
ML Incremental - NPV (5%)	$M	$514	$496	$477	$458	$439	$420	$400
ML Incremental - IRR	%	17.3%	16.9%	16.5%	16.1%	15.7%	15.3%	14.9%
		(30%)	(20%)	(10%)	Base Case	10%	20%	30%
Opex	$M	$2,330	$2,663	$2,996	$3,329	$3,662	$3,995	$4,328
Morelos Complex - NPV (5%)	$M	$1,490	$1,342	$1,193	$1,040	$876	$700	$512
ML Incremental - NPV (5%)	$M	$719	$636	$550	$458	$353	$237	$110
ML Incremental - IRR	%	20.7%	19.3%	17.8%	16.1%	14.0%	11.5%	8.3%
		(2.0%)	(1.5%)	(1.0%)	Base Case	1.0%	1.5%	2.0%
Gold recovery	%	87.8%	88.3%	88.8%	89.8%	90.8%	91.3%	91.8%
NPV (5%)	$M	$985	$999	$1,013	$1,040	$1,068	$1,082	$1,095
ML Incremental NPV (5%)	$M	$428	$436	$444	$458	$473	$480	$487
ML Incremental IRR	%	15.5%	15.6%	15.8%	16.1%	16.4%	16.5%	16.7%

Notes to Table 10:

1. Estimates are based on the project period commencing April 1, 2022. All amounts in U.S. dollars.
2. Sustaining capital expenditures exclude $94M of capitalized stripping.

Table 11: Mineral Reserves for the Morelos Complex
	Tonnes	Au	Ag	Cu	Au	Ag	Cu	AuEq	AuEq
	(kt)	(g/t)	(g/t)	(%)	(koz)	(koz)	(Mlb)	(g/t)	(koz)
El Limón Guajes Open Pit (ELG OP)
Proven	4,900	3.95	4.6	0.14	623	719	15	4.00	630
Probable	5,471	2.35	4.5	0.12	414	784	15	2.39	421
Proven & Probable	10,371	3.11	4.5	0.13	1,037	1,503	30	3.15	1,051
El Limón Guajes Underground (ELG UG)
Proven	110	7.23	10.5	0.59	25	37	1	7.38	26
Probable	2,566	5.68	5.7	0.22	469	474	13	5.74	474
Proven & Probable	2,675	5.74	5.9	0.24	494	511	14	5.81	500
Media Luna Underground (ML UG)
Proven	-	-	-	-	-	-	-	-	-
Probable	23,017	2.81	25.6	0.88	2,077	18,944	444	4.54	3,360
Proven & Probable	23,017	2.81	25.6	0.88	2,077	18,944	444	4.54	3,360
Surface Stockpiles
Proven	4,808	1.35	3.1	0.07	209	484	7	1.38	213
Probable	-	-	-	-	-	-	-	-	-
Proven & Probable	4,808	1.35	3.1	0.07	209	484	7	1.38	213
Total Morelos Complex
Proven	9,817	2.72	3.9	0.11	858	1,240	23	2.75	869
Probable	31,054	2.96	20.2	0.69	2,959	20,202	472	4.26	4,254
Proven & Probable	40,871	2.90	16.3	0.55	3,817	21,442	495	3.90	5,123

  Notes to accompany summary Mineral Reserve table:

1. Mineral Reserves were developed in accordance with CIM (2014) guidelines.
2. Rounding may result in apparent summation differences between tonnes, grade, and contained metal content Surface Stockpile mineral reserves are estimated using production and survey data and apply the same AuEq formula as ELG Open Pits and ELG Underground.
3. AuEq of Total Reserves is established from combined contributions of the various deposits.
4. The qualified person for the mineral reserve estimate is Johannes (Gertjan) Bekkers, P. Eng., Director of Mine Technical Services.
5. The qualified person is not aware of mining, metallurgical, infrastructure, permitting, or other factors that materially affect the Mineral Reserve estimates.Notes to accompany the ELG Open Pit Mineral Reserves:
6. Mineral Reserves are founded on Measured and Indicated Mineral Resources, with an effective date of December 31, 2021, for ELG Open Pits (including El Limón, El Limón Sur and Guajes deposits).
7. ELG Open Pit Mineral Reserves are reported above a diluted cut-off grade of 1.1 g/t Au.
8. ELG Low Grade Mineral Reserves are reported above a diluted cut-off grade of 1.0 g/t Au.
9. It is planned that ELG Low Grade Mineral Reserves within the designed pits will be stockpiled during pit operation and processed during pit closure.
10. Mineral Reserves within the designed pits include assumed estimates for dilution and ore losses.
11. Cut-off grades and designed pits are considered appropriate for a metal price of $1,400/oz Au and metal recovery of 89% Au.
12. Mineral Reserves are reported using a gold price of US$1,400/oz, silver price of US$17/oz, and copper price of US$3.25/lb.
13. Average metallurgical recoveries of 89% for gold and 30% for silver and 10% for copper.
14. ELG AuEq = Au (g/t) + Ag (g/t) * (0.0041) + Cu (%) * (0.1789), accounting for metal prices and metallurgical recoveries.Notes to accompany the ELG Underground Mineral Reserves:
15. Mineral Reserves are founded on Measured and Indicated Mineral Resources, with an effective date of December 31, 2021, for ELG Underground (including Sub-Sill and ELD deposits).
16. Mineral Reserves were developed in accordance with CIM guidelines.
17. El Limón Underground mineral reserves are reported above an in-situ ore cut-off grade of 3.58 g/t Au and an in-situ incremental cut-off grade of 1.04 g/t Au
18. Cut-off grades and mining shapes are considered appropriate for a metal price of $1,400/oz Au and metal recovery of 89% Au.
19. Mineral Reserves within designed mine shapes assume mechanized cut and fill mining method and include estimates for dilution and mining losses.
20. Mineral Reserves are reported using a gold price of US$1,400/oz, silver price of US$17/oz, and copper price of US$3.25/lb
21. Average metallurgical recoveries of 89% for gold and 30% for silver and 10% for copper
22. ELG AuEq = Au (g/t) + Ag (g/t) * (0.0041) + Cu (%) * (0.1789), accounting for metal prices and metallurgical recoveries.Notes to accompany the ML Underground Mineral Reserves:
23. Mineral Reserves are based on Media Luna Indicated Mineral Resources with an effective date of October 31st, 2021.
24. Media Luna Underground Mineral Reserves are reported above a diluted ore cut-off grade of 2.2 g/t AuEq
25. Media Luna Underground cut-off grades and mining shapes are considered appropriate for a metal price of $1,400/oz Au, $17/oz Ag and $3.25/lb Cu and metal recoveries of 85% Au, 79% Ag, and 91% Cu.
26. Mineral Reserves within designed mine shapes assume long-hole open stoping, supplemented with mechanized cut-and-fill mining and includes estimates for dilution and mining losses.
27. Media Luna AuEq = Au (g/t) + Ag (g/t) * (0.011188) + Cu (%) * (1.694580), accounting for metal prices and metallurgical recoveries

Table 12: Mineral Resources for the Morelos Complex
	Tonnes	Au	Ag	Cu	Au	Ag	Cu	AuEq	AuEq
	(kt)	(g/t)	(g/t)	(%)	(koz)	(koz)	(Mlb)	(koz)	(g/t)
El Limón Guajes Open Pit (ELG OP)
Measured	5,727	3.89	5.0	0.13	716	919	17	3.93	724
Indicated	11,027	2.37	4.7	0.12	842	1,660	28	2.41	856
Measured & Indicated	16,754	2.89	4.8	0.12	1,557	2,579	45	2.93	1,580
Inferred	812	1.80	3.5	0.08	47	90	1	1.83	48
El Limón Guajes Underground (ELG UG)
Measured	584	7.24	10.0	0.52	136	187	7	7.37	138
Indicated	3,968	6.11	7.1	0.27	779	900	23	6.18	789
Measured & Indicated	4,551	6.25	7.4	0.30	915	1,088	30	6.34	927
Inferred	1,380	4.88	6.2	0.25	217	275	8	4.95	220
Media Luna Underground (ML UG)
Measured	-	-	-	-	-	-	-	-	-
Indicated	25,380	3.24	31.5	1.08	2,642	25,706	602	5.38	4,394
Measured & Indicated	25,380	3.24	31.5	1.08	2,642	25,706	602	5.38	4,394
Inferred	5,991	2.47	20.8	0.81	476	3,998	106	4.05	780
EPO
Measured	-	-	-	-	-	-	-	-	-
Indicated	-	-	-	-	-	-	-	-	-
Measured & Indicated	-	-	-	-	-	-	-	-	-
Inferred	8,019	1.52	34.6	1.27	391	8,908	225	3.97	1,024
Total Morelos Complex
Measured	6,311	4.20	5.5	0.17	852	1,106	24	4.25	862
Indicated	40,375	3.28	21.8	0.73	4,263	28,266	653	4.65	6,039
Measured & Indicated	46,685	3.41	19.6	0.66	5,114	29,373	677	4.60	6,901
Inferred	16,202	2.17	25.5	0.95	1,131	13,271	340	3.98	2,071

  Notes to accompany summary Mineral Resource table:

1. CIM (2014) definitions were followed for Mineral Resources.
2. Mineral Resources are depleted above a mining surface or to the as-mined solids as of December 31, 2021.
3. Mineral Resources are reported using a gold price of US$1,550/oz, silver price of US$20/oz, and copper price of US$3.50/lb.
4. AuEq of total Mineral Resources is established from combined contributions of the various deposits.
5. Mineral Resources are inclusive of Mineral Reserves.
6. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
7. Numbers may not add due to rounding.
8. The estimate was prepared by Mr. John Makin, MAIG, a consultant with SLR Consulting (Canada) Ltd. Mr. Makin is independent of the company and is a “Qualified Person” under NI 43-101.Notes to accompany the ELG Mineral Resources:
9. The effective date of the estimate is December 31, 2021.
10. Average metallurgical recoveries are 89% for gold, 30% for silver and 10% for copper.
11. ELG AuEq = Au (g/t) + (Ag (g/t) * 0.0043) + (Cu (%) * 0.1740). AuEq calculations consider both metal prices and metallurgical recoveries.Notes to accompany the ELG Open Pit Mineral Resources:
12. Mineral resources are reported above a cut-off grade of 0.9 g/t Au.
13. Mineral Resources are reported inside an optimized pit shell, underground mineral reserves at ELD within the El Limón shell have been excluded from the open pit Mineral Resources.Notes to accompany ELG Underground Mineral Resources:
14. Mineral Resources are reported above a cut-off grade of 2.6 g/t Au.
15. The assumed mining method is underground cut and fill.
16. Mineral Resources from ELD that are contained within the El Limón pit optimization and that are not underground Mineral Reserves have been excluded from the underground Mineral Resources.Notes to accompany ML Mineral Resources:
17. The effective date of the estimate is October 31, 2021.
18. Mineral Resources are reported above a 2.0 g/t AuEq cut-off grade.
19. Metallurgical recoveries at Media Luna (excluding EPO) average 85% for gold, 79% for silver, and 91% for copper. Metallurgical recoveries at EPO average 85% for gold, 75% for silver, and 89% for copper.
20. Media Luna (excluding EPO) AuEq = Au (g/t) + (Ag (g/t) * 0.011889) + (Cu (%) * 1.648326). EPO AuEq = Au (g/t) + Ag (g/t) * (0.011385) + Cu % * (1.621237). AuEq calculations consider both metal prices and metallurgical recoveries.
21. The assumed mining method is from underground methods, using a combination of long hole stoping and, cut and fill.

Table 13: Operating and Financial Results
				Three Months Ended							Year Ended
				Dec 31,			Sep 30,		Dec 31,		Dec 31,		Dec 31,
U.S. dollars, unless otherwise noted				2021			2021		2020		2021		2020
Operating Results
Lost time injury frequency (12-month rolling)		/million hoursworked		0.14			0.26		0.15		0.14		0.15
Total recordable injury frequency (12-month rolling)		/million hours worked		2.32			2.44		2.52		2.32		2.52
Gold produced		oz		109,411			111,229		130,649		468,203		430,484
Gold sold		oz		109,391			118,989		133,063		468,823		437,310
Total cash costs 2		$/oz		764			727		579		674		672
Total cash costs margin 2		$/oz		1,034			1,059		1,268		1,120		1,099
All-in sustaining costs 2		$/oz		1,079			900		886		928		924
All-in sustaining costs margin 2		$/oz		719			886		961		865		847
Average realized gold price 2		$/oz		1,798			1,786		1,847		1,794		1,771
Financial Results
Revenue		$M		202.0			216.7		251.6		855.8		789.2
Cost of sales		$M		135.1			142.6		143.0		529.3		532.0
Earnings from mine operations		$M		66.9			74.1		108.6		326.5		257.2
Impairment loss		$M		41.2			-		-		41.2		-
Net income		$M		(0.5	)		36.5		91.9		151.7		109.0
Per share - Basic		$/share		(0.01	)		0.43		1.07		1.77		1.27
Per share - Diluted		$/share		(0.01	)		0.41		1.05		1.71		1.25
Adjusted net earnings 2		$M		32.4			42.9		60.9		180.0		135.7
Per share - Basic 2		$/share		0.38			0.50		0.71		2.10		1.59
Per share - Diluted 2		$/share		0.38			0.50		0.71		2.09		1.58
EBITDA 2		$M		62.4			119.7		165.9		461.6		413.0
Adjusted EBITDA 2		$M		104.6			119.3		158.5		490.8		431.4
Cost of sales		$/oz		1,235			1,198		1,075		1,129		1,217
Cash from operating activities		$M		94.6			87.8		137.1		330.0		342.1
Cash from operating activities before changes in non-cash operating working capital		$M		87.4			100.2		140.8		365.2		328.8
Free cash flow 2		$M		37.3			29.4		86.9		97.9		192.0
Cash and cash equivalents and short-term investments		$M		255.7			221.6		206.2		255.7		206.2
Net cash 2		$M		252.4			217.8		161.6		252.4		161.6

Notes to Table 13:

1. This is an extract from the MD&A and should be read in conjunction with the MD&A and the Company’s audited consolidated financial statements and related notes for the year ended December 31, 2021.
2. Adjusted net earnings, total cash costs, total cash costs margin, all-in sustaining costs, all-in sustaining costs margin, average realized gold price, EBITDA, adjusted EBITDA, free cash flow and net cash are non-GAAP financial measures with no standard meaning under IFRS. Refer to “Non-GAAP Financial Performance Measures” for further information and a detailed reconciliation to the comparable IFRS measures in the Company’s MD&A for the year ended December 31, 2021, dated February 23, 2022, available on Torex Gold’s website (www.torexgold.com) and under the Company’s SEDAR profile (www.sedar.com).