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Torex Gold Reports
Q2 Results and Provides Strategic Update

Torex Gold Resources Inc. (TSX: TXG) reported Q2 2021 gold production of 118,050 ounces from its El Limón Guajes (“ELG”) mine in Mexico for the 3 months ended June 30, 2021. Gold sold during the quarter was 111,420 ounces at an average realized gold price of $1,815 per ounce. With 247,550 ounces of gold produced through the second quarter, the Company reiterates full year gold production guidance of 430,000 to 470,000 ounces.

Jody Kuzenko, President & CEO of Torex, stated: “Following the excellent performance through the first half of the year, we are well on track to deliver on full year production and cost guidance. The solid operational performance delivered by our team resulted in another strong financial quarter for Torex, with adjusted EBITDA of $122.1 million and adjusted net earnings of $47.4 million. The Company generated $82.4 million in operating cash flow and $21.9 million in free cash flow, even after accounting for the payment of $30 million related to government mandated profit-sharing (“PTU”) accrued during 2020. As a result, cash increased to $196.0 million from $172.0 million the prior quarter. Current total liquidity of over $345 million is expected to improve further in 2021 as the second half of the year is typically a seasonally stronger period for cash flow than the first half.

“A key priority for the Company is to deliver a smooth transition between ELG and Media Luna, in part by extending the life of the ELG open pit operations beyond late-2023. After evaluating various scenarios and options, the Board has approved a pushback of the El Limón open pit, which is anticipated to add approximately 150,000 ounces of gold production and extend open pit mining to mid-2024. As a result of this decision, we have increased sustaining capital expenditure guidance for the second half of 2021 by $15 million, allocated to capitalized waste associated with the pushback. Taking into account the incremental investment, and spend year-to-date, we expect all-in sustaining costs to be at the upper end of the guidance range.

“We are continuing to work on de-risking and advancing Media Luna towards first production in early 2024. As a result, we made the following decisions:

• To prepare the Media Luna Feasibility Study on the basis of conventional development and mining methods, given the outcome of various risk assessments, extensive comparative financial analyses, and the results to date of the Muckahi test program at El Limón Deep (“ELD”).

• To begin development of a second portal south of the Balsas River. This portal will enable the development of the lower part of the Media Luna deposit while providing risk mitigation for the advancement of the Guajes Tunnel from the north side of the river, which is currently underway.

• To continue with the Media Luna infill drill program through the second half of 2021.

“We believe that these decisions will help mitigate risk to the business while allowing more time for the development and testing of the monorail-based technology. The Company continues to have confidence in the potential of the technology, and management will consider including a PEA level study to utilize monorail-based equipment to develop the smaller EPO deposit near Media Luna as part of the overall Technical Report to be released in Q1 2022.

“Overall, we are focused on executing on our strategy. With robust cash flow generation from ELG, a strong balance sheet, and some key strategic decisions behind us, we are well positioned to deliver on our operational guidance for 2021 as well as our long-term plan to deliver shareholder value. Over the coming weeks, we expect to release a multi-year production outlook for ELG, a project update on Media Luna, and exploration results from the 2021 drill programs.” For the full report Click Here.

About Torex Gold Resources Inc.

Torex Gold Resources is a Canadian-based intermediate gold producer, engaged in the exploration, development, and operation of its 100% owned Morelos Gold Property, an area of 29,000 hectares in the highly prospective Guerrero Gold Belt located 180 kilometers southwest of Mexico City. The Company’s principal assets are the El Limón Guajes mining complex (“ELG” or the “ELG Mine Complex”) comprising the El Limón, Guajes and El Limón Sur open pits, the El Limón Guajes underground mine including zones referred to as Sub-Sill and El Limón Deep (“ELD”), and the processing plant and related infrastructure, which commenced commercial production as of April 1, 2016, and the Media Luna deposit, which is an advanced stage development project, and for which the Company issued an updated preliminary economic assessment in September 2018. The property remains 75% unexplored.

For further information on Torex Gold Resources, contact Judy Kuzenko, President and CEO, (647) 725-9982 or Dan Rollins, VP, Corporate Development & Investor Relations at (647) 260-1503 or visit the website at www.torexgold.com.

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