Mantaro Precious Metals Corp. Announces Termination Of Option Agreement On Golden Hill Property And Resignation Of Director

29 August 2023

MANTARO PRECIOUS METALS CORP. (TSXV: MNTR) (OTCQB: MSLVF) (FSE: 9TZ) ("Mantaro" or the "Company") has officially announced the receipt of a termination notice from Luis Fernando Kinn Cortez (the "Optionor") for the option agreement dated August 23, 2021 (the "Option Agreement") involving the Company, Mineral Golden Hill S.R.L. ("MGH"), and the Optionor. The Option Agreement had granted the Company the potential to acquire up to an 80% stake in the Golden Hill Property. As part of this termination, Mr. Kinn Cortez has also stepped down from his position as a director within the Company.

Darren Hazelwood, Chief Executive Officer of Mantaro, explained that due to the challenges posed by the current junior capital markets, raising the required capital to fulfill the cash payments outlined in the Golden Hill property option agreement became difficult. In light of this, the Company will now focus on securing funding for a drilling campaign on the Santas Gloria Silver Property in Peru. With drill permits already issued and drilling platforms prepared, the Company is poised to commence the campaign shortly after securing the necessary funds.

Even though the Golden Hill project has been relinquished, Mantaro still holds exploration concessions within the Bolivia Shield. In June 2023, the Company acquired full ownership of two highly promising licenses, specifically the East Trend and Media Sur properties, situated within the San Ramon Greenstone belt. These properties have minimal maintenance costs, and the Company intends to initiate an initial exploration program while also exploring potential partnerships.

Under the terms of the terminated Option Agreement, the Company will retain a 2% net smelter royalty on the Golden Hill Property, which can be repurchased by MGH through a one-time payment amounting to US $1,000,000.

Mantaro's upcoming exploration efforts will be channeled towards the high-grade Santas Gloria Silver Property, positioned within Peru's Miocene epithermal gold-silver belt. The Company's previous exploration activities yielded remarkable results, including notably high silver grades (>10,000 g/t Ag in underground channel samples) and unusually elevated gold grades (up to 56 g/t Au in surface channel samples). Subject to securing additional funding, the Company intends to initiate a 2500-diamond drill program utilizing the established 10 drilling pads at Santas Gloria. This program will initially target extending the high-grade gold-silver-base metal mineralized segments of the Tembledara, San Jorge, Paquita, and Maribel veins, as identified through channel sampling of surface veins and underground workings.