Condor Gold Announces Its Audited Results for the Year Ended 31 December 2022 and Annual General Meeting of Shareholders

GODALMING, UK / ACCESSWIRE / March 28, 2023 / Condor Gold (AIM:CNR)(TSX:COG) is pleased to announce its audited results for the year ended 31 December 2022 and provides notification that the Annual General Meeting of shareholders of the Company will be held at 3:00 p.m. on 11 May 2023 at 7/8 Innovation Place, Godalming, Surrey, GU7 1JX, United Kingdom.

The Company has published the formal notice of meeting (the "Notice") on its website (www.condorgold.com) together with the related voting proxy form for use by shareholders. A copy of the Notice, together with the proxy voting form, the Annual Report for the year ended 31 December 2022 will be posted to all shareholders who have elected to receive them in hard copy.

HIGHLIGHTS FOR THE YEAR ENDED 31 DECEMBER 2022

• In Q1 2022 the Company released good drill results for Mestiza open pit:
• 6.3 m true width at 6.84 g/t gold from 31.45 m (drill hole LIDC568), approximately 50 m below surface outcrop (which occurs on a rise).
• 4.1 m true width at 15.23 g/t gold from 47.80 m (drill hole LIDC514) approximately 40 m below surface.
• 3.6 m true width at 29.1 g/t gold from 105.70 m (drill hole LIDC471) approximately 85 m below surface.
• In La India open pit new drill results included: 34.1 m true width at 2.56 g/t gold and 28.7 m true width at 2.62 g/t gold.
• Updated Mineral Resource Estimate at La India Project of 9,672 kt at 3.5g/t gold for 1,088,000 oz gold in the indicated mineral resource category and 8,642 kt at 4.3 g/t gold for 1,190,000 oz gold in the inferred mineral resource category.
• The La India Project's total open pit Mineral Resource Estimate is 8,693 kt at 3.2 g/t gold for 893,000 oz gold in the indicated mineral resource category and 3,026 kt at 3.0 g/t gold for 291,000 oz gold in the inferred mineral resource category. The Project's total underground Mineral Resource Estimate is 979 kt at 6.2 g/t gold for 194,000 oz gold in the indicated mineral resource category and 5,615 kt at 5.0 g/t gold for 898,000 oz gold in the inferred mineral resource category.
• The Cacao Mineral Resource has increased 69% to 1,164 kt at 2.5g/t gold for 101,000 oz gold in the inferred mineral resource category. The deposit remains ‘open' along strike and at depth.
• Feasibility Study confirmatory metallurgical test work demonstrated that gold recovery is independent of grade and a fixed gold recovery of 91% assuming a 75 micron grind size has been used in the project economics. At a finer grind size of 53 microns an average gold extraction of 94.7% was achieved, indicating a potential upside gold recovery of about 93%.
• In October 2022, a Feasibility Study demonstrated a robust and economically viable base case for the La India open pit only:
• Probable Mineral Reserve of 7.3Mt at 2.56g/t gold for 602,000 oz gold
• Production averages 81,545 oz gold per annum for the first 6 years of an 8.4 year mine life
• An Internal Rate of Return ("IRR") of 23% and a post tax, post upfront capital cost NPV of US$86.9 million using a discount rate of 5% and price of US$1,600 oz gold (Mineral Reserve Case).
• An IRR of 43% and a post tax, post upfront capital cost NPV of US$205.2 million using a discount rate of 5% and price of US$2,000 oz gold.
• Low initial capital requirement of US$105.5 million (including contingency and EPCM contract)
• Low average Life of Mine All-in Sustaining cash costs US$1,039 per oz gold
• Land acquisition continued at the La India open pit and associated mine site infrastructure. To date, 99.6% of the core areas have been purchased.
• Site clearance of 14 hectares has been completed for the processing plant location, including areas for offices, warehouses, a stockpile, and a buffer zone.
• On 12 October 2022, Jim Mellon assumed the Chairmanship of Condor Gold
• £6,650,000 of gross proceeds raised by way of private placements, the issue of convertible loan notes, and an open offer during 2022.

POST PERIOD HIGHLIGHTS

• On 13 March 2023 - the sales process is now entering the end of its first phase with various parties having conducted site visits and others ongoing. Three formal expressions of interest including 2 non-binding offers (subject to further due diligence) have been received by the Company and further offers are expected as 9 companies are under a Non-Disclosure Agreement (NDA).

Cautionary Statement: Investors should note that, whilst the Board is encouraged by the process to date, there can be no guarantee that the Company will complete the sale of its assets.

CONDOR GOLD PLC

CHAIRMAN'S STATEMENT and CEO's REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

Chairman's introductory comments

Dear Shareholder,

Condor is at an important point in its history. It is very close to mining, with substantial proven reserves, and a carefully costed mining plan. It is now the time for a larger company to take on the reins of our key assets and our CEO, Mark Child, has been working hard to find the right partner. The gold price is rising and the omens for further rises are good. The Company enjoys strong shareholder support and I am confident that our outcomes are positive.

Jim Mellon
Chairman

CEO'S Report

Dear Shareholder,

I am pleased to present Condor Gold Plc's ("Condor", the "Company" or the "Group", www.condorgold.com or, if you are viewing from Canada, ca.condorgold.com) annual report for the 12-month financial year to 31 December 2022. The fully permitted La India Open Pit and associated mine site infrastructure has been materially de-risked. with the completion of all technical studies required for a Feasibility Study Technical Report ("2022 FS") utilising the new SAG Mill package acquired by Condor in March 2021. Details of the 2022 FS were announced on 12 September 2022 and filed on SEDAR (https://www.sedar.com) and made available on the Company's websites under "Technical Reports" on 26 October 2022. During the year Condor produced a much more robust Mineral Resource Estimate for the La India Project, details of which are included in the 2022 FS.

The Company's strategy has been to develop the fully permitted La India Project in two stages using the new SAG Mill that has already been purchased. The delivery of a Feasibility Study on La India open pit with an average of 81,524 oz gold per annum for the initial six years for a relatively low total upfront capital cost of US$106 million is a landmark and further de-risks the Project. At US$1,600 oz gold, the La India open pit Mineral Reserve produces total revenues of US$888 million, the total operating costs of mining, process and G&A are US$480 million, leading to an operating profit of US$408 million or a 46% operating margin. After government and other royalties, but before sustaining capital, the operating profit is US$355 million, which in Condor's opinion is ample to repay any project debt on the relatively low upfront capex. At US$2,000 oz gold after paying royalties, but before sustaining capital the operating profit is US$563 million. In reality, two permitted high grade feeder pits will be added during the early years of production thus increasing production ounces of gold. Early production is targeted at 100,000 oz gold p.a.

The plan would be to materially expand production with a stage two expansion by converting existing Mineral Resources into Mineral Reserves and an associated integrated mine plan. On 25 October 2021, the Company announced the results of a Preliminary Economic Assessment and filed on SEDAR a technical report entitled "Condor Gold Technical Report on the La Indian Gold Project, Nicaragua, 2021" detailing average annual production of 150,000 oz of gold over the initial nine years of production from open pit and underground Mineral Resources and provides an indication of a production target. Outside the main La India open pit Mineral Reserve, there are additional open pit Mineral Resources on four deposits (America, Mestiza, Central Breccia and Cacao) which represent an aggregate 206 Kt at 9.9 g/t gold for 66,000 oz in the indicated Mineral Resource category and 2.1Mt at 3.3 g/t gold for 223,000 oz gold in the inferred Mineral Resource category. In addition, there is an aggregate underground Mineral Resource (La India, America, Mestiza, Central Breccia San Lucas, Cristalito-Tatescame, and Cacao) of 979Kt a 6.2 g/t for 194,000 oz gold in the indicated Mineral Resource category and 5.6Mt at 5.0 g/t gold for 898,000 oz gold in the inferred Mineral Resource category.

The Company informed the Ministry of the Environment and Natural Resources ("MARENA") that it had commenced construction (consisting of site clearance of 14ha, importing the SAG Mill and completing the FS studies) and fulfilled the initial conditions of an Environmental Permit (the "EP") granted for the development, construction, and operation of an open pit mine, a 2,800 tpd or 1.0 Mt per annum CIP processing plant and associated infrastructure at the La India Project, Nicaragua.

During 2022, Condor produced a much more robust and conversative Mineral Resource Estimate ("MRE") of the entire La India Project, which comprises six separate deposits all of which have potential to be expanded. The focus has been on strengthening the confidence of the geological model for the 2022 FS on La India Open Pit. The update on La India Open Pit includes assay results from infill drilling, a new lithological, structural and weathering model, a new depletion model for historic and artisanal mining and an increase in the cut-off grade to 0.65 g/t gold from 0.50 g/t gold. The updated Mineral Resource includes the latest operating costs and bulk density measurements. I am pleased the drilling on the Cacao deposit increased the MRE in the inferred mineral resource category by 69% to 101,000 oz gold at 2.5 g/t gold, the interpretation is that drilling has clipped the top of a fully preserved epithermal vein system with a strike length of at least 1km with the potential to host over 1 million oz gold.

The MRE update was prepared by SRK Consulting (UK) Limited ("SRK") and uses the terminology, definitions and guidelines given in the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Standards on Mineral Resources and Mineral Reserves (May 2014).

The updated Mineral Resource Estimate is 9,672 kt at 3.5g/t gold for 1,088,000 oz gold in the indicated mineral resource category and 8,642 kt at 4.3g/t gold for 1,190,000 oz gold in the inferred mineral resource category. The 2022 FS was conducted on La India Open Pit which has a Mineral Resource Estimate of 8,487 kt at 3.0g/t gold in for 827,000 oz gold in the indicated mineral resource category and 893 Kt at 2.4 g/t gold for 69,000 oz gold in the inferred mineral resource category. The La India Open Pit Mineral resource is inclusive of a Probable Mineral Reserve of 7.3Mt at 2.56g/t gold for 602,000 oz gold.

Outside the main La India open pit Mineral Reserve (the subject of the 2022 FS), there is a historical estimate, outlined in the 2021 Preliminary Economic Assessment, of additional open pit Mineral Resources on four deposits (America, Mestiza, Central breccia and Cacao) which represent an aggregate 206 Kt at 9.9 g/t gold for 66,000 oz in the indicated Mineral Resource category and 2.1Mt at 3.3 g/t gold for 223,000 oz gold in the inferred Mineral Resource category. In addition, there is an aggregate underground Mineral Resource (La India, America, Mestiza, Central Breccia San Lucas, Cristalito-Tatescame, and Cacao) of 979Kt at 6.2 g/t for 194,000 oz gold in the indicated mineral resource category and 5.6Mt at 5.0 g/t gold for 898,000 oz gold in the inferred mineral resource category.

In March 2022, the Company announced drill results from infill drilling on Mestiza open pit of 6.3 m true width at 6.84 g/t gold from 31.45 m and 3.6 m true width at 29.1 g/t gold are both reassuring of the high-grade nature of the deposit and continuity of grade. The wide zones of mineralisation within the La India open pit, near surface of 34.1 m true width at 2.56 g/t gold amalgamated from 2.80 m drill depth are confirmatory in nature.

During 2022, the Company has been focused on de-risking La India Project by completing several technical and engineering studies for the 2022 FS, some of which are a condition of the EP. In addition to a much more robust and conservative MRE for the entire La India Project, the following key technical studies were completed:

• The Tailings Storage Facility ("TSF") and two water retention ponds have been fully designed and engineered with drawings one step short of "issued for construction", which is beyond an FS level detail of design. Tierra Group Inc, of Denver, Colorado completed site visits and the engineering studies. The study included 23 geotechnical drill holes and 55 geotechnical test pits have been completed.
• The engineering of stormwater attenuation structure at La Simona has been completed and designed to FS level.
• Completion of the site wide water balance ("SWWB"), including the design of a surface water management plan by SRK. SRK's work includes the area of the permitted La India, America and Mestiza open pits. The ultimate objective of the exercise is to produce engineering plans for the installation of the physical components of a management system, including the piping, pumping and structural requirements that will satisfy Nicaraguan authorities and at the same time meet the design standards for a feasibility study. The SWWB will include consideration of the pit dewatering contributions (i.e. subsurface hydrology). SRK's remit includes an emphasis on training and capacity building for the local Condor team to ensure full ownership and facilitate implementation and sustainability of the SWWB.
• Hydrogeology / pit water management - Condor successfully intercepted the deepest level of the 1950s-era underground mine workings, providing confidence that the said workings are suitable to tap into, in order to draw down ground water levels and support depressurization of the pit slopes. A test borehole close to the historical mineshaft was drilled in November 2021 and additional boreholes were drilled to the south and are locations for the long-term pumping station.
• The processing plant designs to FS level have been completed by Hanlon Engineering (owned by GR Engineering Services in Australia) using the new SAG Mill packaged purchased by Condor in February 2021. The processing plant designed has been laid out with the ability to double capacity from 2,800tpd.
• Site preparation and clearance of 14 hectares around the location of the processing plant has been completed.
• Pit Geotechnical - approximately 2,800 m of geotechnical drilling was completed by December 2021. Pit angles to FS level have been completed. This involved oriented core drilling, followed by televiewer logging.
• Mine and waste dump schedules for a number of mining scenarios have been completed to a level that can be submitted to MARENA. The FS level mine and waste dump schedules have been completed.
• The power studies completed to FS level. Several meetings have been held with the Ministry of Energy and Mines. National grid electricity pylons are located 700 meters from the processing plant, and the Government is building a new electricity sub-station 12km from the processing plant. Designs for supplying grid power via the new sub-station are underway.
• The compensation plan under the local law is to replace every tree removed with 10 new trees. Condor has a tree nursery which currently has approximately 8,000 trees.

Highlights: Feasibility Study La India Open Pit only

The 2022 FS demonstrates a robust and economically viable base case for the La India open pit:

• Probable Mineral Reserve of 7.3Mt at 2.56g/t gold for 602,000 oz gold
• Production averages 81,545 oz gold per annum for the first six years of an 8.4 year mine life
• An Internal Rate of Return ("IRR") of 23% and a post tax, post upfront capital cost NPV of US$86.9 million using a discount rate of 5% and price of US$1,600 oz gold (Mineral Reserve Case).
• An Internal Rate of Return ("IRR") of 43% and a post tax, post upfront capital cost NPV of US$205.2 million using a discount rate of 5% and price of US$2,000 oz gold.
• Low initial capital requirement of US$105.5 million (including contingency and EPCM contract)

Low average Life of Mine All-in Sustaining cash costs US$1,039 per oz gold

The Company's strategy of a two-stage approach to production is supported by technical study released in October 2021, Condor Gold announced the key findings of a technical report on the La India Gold Project prepared by SRK. This technical report (the "Technical Report") presented the results of a strategic mining study to Preliminary Economic Assessment ("PEA") standards. The strategic study covers two scenarios: Scenario A, in which the mining is undertaken from four open pits, termed La India, America, Mestiza and Central Breccia Zone ("CBZ"), which targets a plant feed rate of 1.225 million tonnes per annum ("Mtpa"); and Scenario B, where the mining is extended to include three underground operations at La India, America and Mestiza, in which the processing rate is increased to 1.4 Mtpa. The 2021 Technical Report was issued in October 2021 and filed on SEDAR and the Company's websites for public disclosure to NI 43-101 standards.

Highlights 1.225 Mtpa PEA La India Open Pit + Feeder Pits:

• IRR of 58% and a post-tax Net Present Value ("NPV") of US$302 million, at a discount rate of 5% and gold price of US$1,700/oz.
• Average annual production of ~120,000 oz of gold over the initial 6 years of production.
• 862,000 oz of gold produced over 9-year Life of Mine.
• Initial capital requirement of US$153 million (including contingency).
• Payback period 12 months.
• All-in Sustaining Costs ("AISC") of US$813 per oz gold.
• Robust Base Case presents an IRR of 48% and a post-tax NPV of US$236 million at a discount rate of 5% and gold price of US$1,550/oz.

Highlights: 1.4Mtpa PEA Open Pit + Underground Operations

• IRR of 54% and a post-tax NPV of US$418 million, after deducting upfront capex, at a discount rate of 5% and gold price of US$1,700/oz.
• Average annual production of ~150,000 oz of gold over the initial 9 years of production.
• 1,469,000 oz of gold produced over 12-year Life Of Mine.
• Initial capital requirement of US$160 million (including contingency), where the underground development is funded through cash flow.
• Payback period 12 months.
• All-in Sustaining Costs of US$958 per oz gold over Life Of Mine.

The Company remains convinced that the La India Project is a major gold district with the potential for significant future discoveries. Condor's geologists have identified two major north-northwest-striking mineralised basement feeder zones traversing the Project, the "La India Corridor", which hosts 90% of Condor's gold mineral resource and the "Andrea Los Limones Corridor". Numerous geophysics, soil geochemistry and surface rock chips indicate the possibility for further mineralisation along strike. The updated MRE 2022 for the Cacao deposit increased the MRE in the inferred mineral resource category by 69% to 101,000 oz gold at 2.5 g/t gold, the interpretation is that drilling has clipped the top of a fully preserved epithermal vein system with a strike length of at least 1km with the potential to host over 1 million oz gold.

The Company continues to enhance its social engagement and activities in the community, thereby maintaining its social licence to operate. Condor has strengthened its community team and stepped-up social activities and engagement programmes. The main local focus is the drinking water programme, implemented in April 2017. A total of 740 families are currently benefiting from the program and currently receive five-gallon water dispensers each week. In May 2021, the Company installed a water purification plant at a cost of approximately US$200,000 to double the amount of drinking water provided to the local communities.

In January 2018 Condor initiated ‘Involvement Programmes', which now extend to six groups in the local village to benefit communities which may be affected by the mine. Taking the Elderly Group as an example, a committee of six people has been formed. The Company allocates monthly support to the Elderly Group, which decides how this money is spent to benefit the elderly in the Community. Projects include a garden for medicinal herbs which are made into products which are used by group members and sold to others in the community.

Condor continues to have very constructive meetings with key Ministries that granted the EP for the La India, La Mestiza and America open pits. The Company has been operating in Nicaragua since 2006 and, as a responsible gold exploration and development company, continues to add value to the local communities and environment by generating sustainable socio-economic and environmental benefits. The new mine would potentially create approximately 1,000 jobs during the construction period, with priority to be given to suitable skilled members of the local community. The upfront capital cost of approximately US$105 million as detailed in the 2022 FS will have a significant positive impact on the economy. The Government and local communities will benefit significantly from future royalties and taxes.

In June 2022 the Company announced it had raised £3.25 million by way of a private placement of new ordinary shares. (See RNS for details). On 21 December 2022 the Company announced a fundraise of £3.3M. See RNS for details).

Turning to the financial results for the year 2022, the Group's loss for the year was £2,537,459 (2021: £2,330,003). The Company raised a total of £5,574,674 million after expenses during the financial period (2021: £11,459,817). The net cash balance of the Group at 31 December 2022 was £2,444,093 (2021: £2,072,046).

On 22 November 2022, the Company announced a strategy update and informed the market that it had appointed an advisor to sell its assets.The Board reviewed the Company's options, including going through a financing and construction phase as a single asset, single jurisdiction company with no existing gold production, and concluded that it is in the best interests of the Company and all stakeholders to sell the assets of the Company to a gold producer with mine building expertise, thus ensuring a new mine at La India, a significant investment in the local area, and a regeneration of the local communities.

The focus for 2023 is to execute on a successful sale of the assets while maintaining a social license to operate at the fully permitted La India Project.

M L Child
CEO

Date: 27 March 2023

CONDOR GOLD PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022

CONDOR GOLD PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022