Orosur Mining Inc. - Full Year 2021 Results

Toronto, August 30, 2021. Orosur Mining Inc. ("Orosur" or "the Company") (TSX: OMI) (AIM: OMI) announces its audited results for the fiscal year ended May 31, 2021. All dollar figures are stated in US$ unless otherwise noted. The audited financial statements of the Company for the year ended May 31, 2021; the related management's discussion and analysis ("MD&A"); the annual information form ("AIF") and the Forms 52-109F1 have all been filed and are available for review on the SEDAR website at www.sedar.com. The financial statements, the MD&A and the AIF are also available on the Company's website at www.orosur.ca.

 HIGHLIGHTS

Colombia

●     On 30^th September 2020, Newmont Corporation, entered into a joint venture with Agnico Eagle Mines Limited ("Agnico") whereby the two companies  jointly assumed and will advance Newmont's prior rights and obligations with respect to the Anzá Project in Colombia on a 50:50 basis, with Agnico as operator of the joint venture. Agnico's and Newmont's JV vehicle has been renamed Minera Monte Águila.

●     Following receipt of exploration funds from Minera Monte Águila, Minera Anzá began the process of re-establishing its field camp at the Anzá project in readiness for commencement of field operations. A substantial team of geoscientists and support staff were recruited to manage the work.

●     Drilling operations commenced on the 15^th of November 2020 and a total of some 10,000m have been drilled to date.

●     Four announcements have been made related to assay results from the ongoing drilling campaign - on 25^th January 2021; 22^nd February 2021; 4^th May 2021; and, 6^th July 2021.  Key intersections include:

MAP-072           4.1m @ 6.52g/t Au, 29.73g/t Ag and 0.28% Zn from 108m.

                          5.90m @ 4.55g/t Au, 2.74g/t Ag and 0.30% Zn from 171.1m, and

                          70.50m @ 3.53g/t Au, 9.33g/t Ag and 1.62% Zn from 184.80m

MAP-073           21.60m @ 6.02g/t Au, 6.02g/t Ag and 3.23 %Zn from 271.75m

MAP-074           5.20m @ 1.17g/t Au 4.97g/t Ag and 3.02% Zn from 195.40m

MAP-075           19.85m @ 0.90g/t Au 2.17 g/t Ag and 6.46% Zn from 226.15m

MAP-076           12.25m @ 5.39g/t Au, 1.65 g/t Ag and 0.18 % Zn from 228.65m

MAP-079           23.75m @17.40g/t Au, 1.89g/t Ag, 0.19% Zn

MAP- 082          29.45m @2.50g/t Au, 1.95g/t Ag, 1.08% Zn

MAP- 089          59.55m @9.61g/t Au, 6.23g/t Ag, 3.75% Zn

MAP- 091          61.75m @ 2.05g/t Au, 3.3g/t Ag, 0.82% Zn

●     A number of samples remain at the laboratory of ALS in Peru, which has experienced substantial delays in turnaround times due to Covid related staff shortages. These issues are slowly being resolved and it is anticipated that assay delays will be reduced going forwards

●     Apart from drilling at the APTA prospect, work commenced on regional mapping and sampling across the wider lease holding.  A large program of BLEG sampling was commenced, which once analyzed should provide vectors to more targeted programs in following quarters. Initial results have been promising, with two new prospect areas identified and named for future reference, Pupino and Pepas.

●     The Company has commenced work on converting the last of its secure license applications to granted status so that they can be accessed for exploration work later in the year.

Uruguay

●     In Uruguay, the Company has focused its activities on the implementation of the Creditors Agreement, which was approved by the Court in September 2019, and on the sale of the assets of its Uruguayan subsidiary Loryser. As part of that Agreement, Orosur issued in December 2019,10,000,000 Orosur common shares to a trust for the benefit of Loryser's creditors as contemplated in the court-approved Creditors Agreement.

●     At the same time, and in line with Company´s expectations, during Q3 2020, Loryser signed a Settlement Agreement with DINAMA (Uruguay environmental agency) in order to recover the $1,326,000 from an environmental guarantee it had executed previously. Pursuant to the Settlement Agreement, Loryser is continuing with the reclamation of the tailings dam and Dinama will pay in instalments upon completion of a nine-phased closure plan. The agreement has been in effect all year after getting final approval from the Audit Tribunal, who oversees all Governmental accounts. The reclamation is progressing well. To date, four payments totalling $957,000 have been received from DINAMA.

●     Good progress is being made on the sale of Loryser's other assets including plant and equipment. The proceeds from all of these sales and the sales of the shares by the Trust will be used to pay liabilities in Uruguay in connection with the aforementioned Creditors Agreement.

Financial and Corporate

●     The consolidated financial statements have been prepared on a going concern basis under the historical cost method except for certain financial assets and liabilities which are accounted for as Assets and Liabilities held for sale (at the lower of book value or fair value) and Profit and Loss from discontinuing operations. This accounting treatment has been applied to the activities in Uruguay and Chile.

●     On May 31, 2021, the Company had a cash balance of $6,958,000 (May 31, 2020: $782,000). As at the date of this announcement the Company had a cash balance of $6,270,000 which includes the proceeds from the private placement and from the exercise of stock options, both detailed below.

●     On July 17, 2020 Brad George was appointed Chief Executive Officer and Thomas Masney was appointed as a non-executive director, replacing Ignacio Salazar and HD Lee respectively.

●     On August 14, 2020 8,370,000 warrants expired unexercised.

●     On October 30, 2020, 2,876,670 stock options were exercised by a number of employees and former employees resulting in proceeds of CDN$455,000 for the Company.

●     On December 7, 2020, the Company completed a private placement financing consisting of the sale of 23,529,412 units (the "Units") at 17 pence per Unit for aggregate gross proceeds of £4 million ($5,372,000). Each Unit consisted of one (1) common share in the capital stock of the Company ("Common Share") and one-half (1/2) of one Common Share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the holder thereof to acquire an additional Common Share at a price of 25.5 pence for a period of 12 months from the date of issuance.

●     On December 10, 2020, the Company granted an aggregate of 5,600,000 stock options of which 4,300,000 were granted to certain directors and officers of the Company, at an exercise price of CAD$0.325 with an expiration date of December 10, 2030. These options vested 50% immediately and the 50% on December 10, 2021.

●     On January 12, 2021, the Company appointed Nicholas (Nick) von Schirnding to the Company's Board as an Independent Non-Executive Director. The Company also appointed Louis Castro, then Non-Executive Chairman

of the Company, to the role of Executive Chairman.

Outlook and Strategy

During the period, the Company continued its focus on developing the potential at Anza and continuing the orderly closure of its historical operations in Uruguay in accordance with the court agreed settlement process. Work on both facets of the corporate strategy is progressing well and the capital raising in November 2020 has provided sufficient balance sheet strength to continue progress.

The Company has also been examining new business opportunities in South America and, on July 7^th, 2021, it announced that it had entered into a non-binding Letter of Intent in order to establish a joint venture on a tin project in Rhondonia state in Brazil.

The Company will continue to build its project portfolio with other high quality assets, subject to current travel restrictions caused by Covid.

Brad George, CEO of Orosur said:

"Operationally and financially it has been a good year, albeit a somewhat challenging one in light of the Covid-19 pandemic that has impacted every facet of our business. Uruguay continues to be wound down in an orderly fashion as per our plans and is near the end; Colombia has been a major success story with tremendous results from our drilling and sampling programs, all undertaken while the pandemic raged around us; and our balance sheet was brought back to life with a well-supported capital raising.  With work accelerating at Anza and with potential new projects coming on line, this coming year looks to be even better"