Luca Mining Corp. (“Luca” or the “Company”) (TSX-V: LUCA; OTCQX: LUCMF; Frankfurt: TSGA) is thrilled to announce two significant milestones. Firstly, the Tahuehueto Gold Project in Durango, Mexico, has achieved a major milestone with a production capacity of 500 tonnes per day (“tpd”), on time and budget. Secondly, Luca has successfully closed an oversubscribed non-brokered private placement (the “Private Placement”), for a total of CAD$24,896,551.42 (see the Company’s news release dated March 31, 2023).

Highlights

• Tahuehueto Gold Project achieves 500 tpd production milestone, on schedule and budget

• Funded to achieve commercial production of 1,000 tpd, scheduled for year-end 2023

Mike Struthers, CEO, commented, “We are delighted to have accomplished our goal of reaching 500 tpd at Tahuehueto. This achievement is a testament to the dedication and collaborative efforts of our site teams, contractors, management, and staff. But our focus on delivering Tahuehueto for all our stakeholders continues, as we push towards the ultimate goal of commercial production at 1,000 tpd by year-end.  This underpins our strategy of operating two profitable mines and laying a solid foundation for growth, ultimately leading to an exceptional performance in 2024.”

“In addition to this significant operational milestone, Luca is proud to announce the successful completion of its funding round, raising an impressive CAD$24.9 million. This accomplishment, particularly under current market conditions, is the result of tremendous efforts by our core team and key stakeholders.”

“These significant accomplishments underline the trust and confidence investors have placed in the Company, our new team, and our ambitions for growth. The strong support received from new and existing shareholders is a testament to the dedication of the Luca Mining team.”

Tahuehueto Achieves 500 TPD

The Company is very pleased to hit this critical first production goal of 500 tpd at Tahuehueto, as planned, by June 30th, 2023. With an installed capacity of 500 tpd the mine is expected to generate positive cash flow at current metal prices.

This is the first of two major milestones for Tahuehueto construction. Commercial production will be achieved when a capacity of 1,000 tpd is completed by end 2023.  Based on the pre-feasibility study updated in April, 2022 (NI43-101 Technical Report “Preliminary Feasibility Study – Tahuehueto Project”), at a capacity of 1,000 tpd the mine will have a net present value of USD $131.8m , an IRR of 65%, and will have an average all-in sustaining cost of USD $855/oz AuEq over the 10-year mine life.

Recent production (June 2023 to date) grades have averaged 2.47 g/t Au, 31.2 g/t Ag, 1.23% Pb, and 2.92% Zn.  Recoveries of all key metals were within 5% of plan, and the lead concentrate, to which the majority of gold and silver report, achieved an average content of 51.2 g/t Au and 648.5 g/t Ag.  The zinc concentrate achieved the plan, at an average content of 45.2 % Zn.

A key component of this milestone is the completion of the first stage (“Stage 1A”) of the tailings dam. Tailings deposition within this facility has now commenced, and construction of the remaining two stages will continue for the remainder of 2023.

Other key achievements include:

• Ongoing mining of access and operating development on various mine levels, to sustain planned production rates.
• Optimisation of the existing tailings filter press, and completion of foundations for a second.
• Completion of definitive power supply to process plant and related facilities, and all earthing systems.
• Upgrades to camp facilities.

Construction of certain ancillary systems for both the 500 tpd and 1,000 tpd stages continues. The overall construction effort will be maintained, towards the ultimate goal of 1,000 tpd by year-end 2023.  

Key elements for the 1,000 tpd project include:

• Installation of the second ball mill, and associated systems
• Further advances in tailings dam construction
• Installation of additional tailings filter presses
• Completion of certain material handling infrastructure in the underground mine.

News flow over the coming months will focus on progress towards achieving the 1,000 tpd goal.

Private Placement

Under the third and final tranche of the Private Placement, the Company sold 11,831,474 units of the Company (each, a “Unit”) at a price of CAD $0.35 per Unit for gross proceeds of CAD $4,141,016.25. On April 25, 2023, the Company closed the first tranche of the Private Placement for gross proceeds of CAD $18,344,222.97 and on June 2, 2023, the Company closed the second tranche of the Private Placement for gross proceeds of CAD $2,411,312.20 (see the Company’s news releases dated April 26 and June 5, 2023). The Private Placement was heavily oversubscribed, and the aggregate gross proceeds exceed the original announced amount of CAD $20,300,000 as well as the 20% oversubscription amount of CAD $4,060,000.

Each Unit under the third tranche consists of one common share of the Company (a “Share”) and one-half of one transferable share purchase warrant (each whole, a “Warrant”). Each Warrant entitles the holder thereof to acquire one additional Share (a “Warrant Share”) at a price of CAD $0.50 per Warrant Share until June 27, 2025 (the “Expiry Date”), subject to acceleration. If the closing price of the Shares on the TSX-V or such other stock exchange as Luca is listed on exceeds CAD $0.90 for 15 consecutive trading days, the Company will earn the right, by providing notice (the “Acceleration Notice”) to the warrant holders via a news release or written notice, to accelerate the Expiry Date of the Warrants to 4:00 P.M. (Vancouver time) on the 30th day from the date of the Acceleration Notice (the “Accelerated Expiry Date”). If the Company provides an Acceleration Notice, all Warrants that are not exercised by the Accelerated Expiry Date will expire.

All securities issued in connection under the third tranche are subject to a four month plus one day hold period under applicable Canadian securities laws. Aggregate finders’ fees of CAD $1,198,246 and 3,423,555 finders’ warrants (the “Finders’ Warrants”) were paid in connection with the Private Placement to various finders. The terms of the Finders’ Warrants are the same as the Warrants, except (i) the Finders’ Warrants are non-transferable and (ii) the Expiry Date of the Finders’ Warrants is two years from their respective dates of issue.

A related party to a director and an individual who is director and officer of the Company, acquired an aggregate of 980,759 Units under the third tranche for a total purchase price of CAD $343,266. Accordingly, the Private Placement is to that extent a “related party transaction” as defined under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions. The transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, as neither the fair market value of any securities issued to, or the consideration paid by such persons, will exceed 25 per cent of the Company’s market capitalization.

About Luca Mining Corp.

Luca Mining Corp. is a Canadian based mining company with two 100% owned Mexican gold, silver, and base metal mining projects.

Luca’s Tahuehueto Gold Mine Project is in north-western Durango State, Mexico where construction of an initial 500 tonnes per day (“tpd”) operation has been achieved. The second stage, the 1000 tpd project, is now commencing. The operation is generating gold, silver, lead, and zinc in concentrates.

Campo Morado is an operating polymetallic base and precious metals mine currently producing at an average of 2,300 tpd, generating zinc and copper concentrates with significant precious metals credits.

www.lucamining.com

On Behalf of the Board of Directors

(signed) “Mike Struthers”

Mike Struthers, CEO and Director

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Cautionary Note Regarding Production Decisions and Forward-Looking Statements

It should be noted that Luca declared commercial production at Campo Morado prior to completing a feasibility study of mineral reserves demonstrating economic and technical viability. Accordingly, readers should be cautioned that Luca’s production decision has been made without a comprehensive feasibility study of established reserves such that there is greater risk and uncertainty as to future economic results from the Campo Morado mine and a higher technical risk of failure than would be the case if a feasibility study were completed and relied upon to make a production decision. Luca has completed a preliminary economic assessment (“PEA”) mining study on the Campo Morado mine and a prefeasibility study at the Tahuehueto Mine that provides a conceptual life of mine plan and a preliminary economic analysis based on the previously identified mineral resources (see News Release dated November 8, 2017, April 4, 2018 and April 25, 2022).

Statements contained in this news release that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities laws. Forward Looking Information includes, but is not limited to, conditions or financial performance that are based on assumptions about future economic conditions and courses of action; the timing and costs of future activities on the Company’s properties, such as production rates and increases; success of exploration, development and bulk sample processing activities, and timing for processing at its own mineral processing facility on the Tahuehueto project site. In certain cases, Forward-Looking Information can be identified using words and phrases such as “plans,” “expects,” “scheduled,” “estimates,” “forecasts,” “intends,” “anticipates” or variations of such words and phrases. In preparing the Forward-Looking Information in this news release, the Company has applied several material assumptions, including, but not limited to, that the current exploration, development, environmental and other objectives concerning the Campo Morado Mine and the Tahuehueto Project can be achieved; the continuity of the price of gold and other metals, economic and political conditions, and operations. Forward-Looking Information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the Forward-Looking Information. There can be no assurance that Forward-Looking Information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on Forward-Looking Information. Except as required by law, the Company does not assume any obligation to release publicly any revisions to Forward-Looking Information contained in this news release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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For further information about Luca Mining Corp., please contact:

Glen Sandwell

Corporate Communications Manager

ir@lucamining.com

Tel: +1 (604) 684-8071

Luca Mining Corp. (the “Company” or “Luca”, formerly Altaley Mining Corporation) is pleased to provide the following update on metallurgical test work to improve precious metals recoveries at its Campo Morado Mine, located in the state of Guerrero, Mexico.

Highlights

• Pilot-scale testing of Jameson Cell technology at Campo Morado, operating at micro-fine grind levels, demonstrates the ability to significantly improve recoveries and concentrate grades across both copper and lead streams, together with moderate improvements in the zinc stream and potential reductions in operating costs.
• Historical testing demonstrated the ability of the Jameson Cell to achieve final concentrate grades of between 13% – 28% copper, at excellent unit recoveries of between 70-90%. For reference, current copper recovery is approximately 51%, with a concentrate grade of 13-16% Cu.  
• Luca’s recent Jameson pilot plant testing on feed to first lead cleaner on Test 17 returned a recovery of 70.74% lead resulting in a concentrate grade of 37.93% lead, which is a significant improvement from Luca past lead production. By comparison, average lead recoveries of 29% and concentrate grades of 22% Pb were achieved by Luca during all of 2021.

“Both the historical and 2022 pilot-scale Jameson Cell testing generated very encouraging results”, said Mike Struthers, CEO.  “As we continue to stabilise the overall operation, the next step with the Jameson Cells is to have all the testing reviewed by third party experts, then prepare a study to define how the cells would be added into the existing circuits, the costs and schedule for doing so, and an economic evaluation.  We expect to make significant progress towards this goal during the balance of 2023.”

Background

Jameson Cell Pneumatic Flotation pilot plant testing was first conducted at Campo Morado by former owner Nyrstar during 2014, investigating the potential to increase recoveries of copper and lead into a bulk copper-lead concentrate, zinc into a zinc concentrate, and to increase corresponding concentrate grades. Results were very positive but, as a result of depressed metal prices in 2015, Nyrstar placed the operation into care and maintenance thereafter the mine was subsequently acquired by Luca.

To expand on this testing, Luca contracted Glencore Technologies to provide a second Jameson Cell pilot plant. This operated for three months during 2022, testing increased recoveries in the zinc roughers and 1st stage lead cleaning, and subsequently successfully tested the ability to make a precious metals-rich pyrite concentrate from both historic and fresh tailings.

Both the 2014 Nyrstar and the 2022 Luca Jameson Cell pilot plant testing returned very encouraging results in all process streams tested, clearly demonstrating that the addition of Jameson Cell technology, processing at micro-fine grind levels, has the potential to significantly improve recoveries and concentrate grades of both copper and lead streams, and could provide moderate improvement to current satisfactory zinc recoveries, all of which have the potential to significantly increase revenues.

A major advantage of the Jameson Cell technology is that the cells are smaller than conventional flotation cells, and they have no moving parts so they can be easily maintained online, without shutdowns.  Further information on the principles of the Jameson Cell technology can be found here: Operating principles  (glencoretechnology.com)

Historic Jameson Cell Pilot Plant Testing, Nyrstar 2014

Copper/Lead Flotation Circuit – 2014

Former owner, Nyrstar undertook substantial metallurgical test work at Campo Morado during their tenure with the mine.  The 2014 Jameson Cell pilot plant testing on the copper-lead bulk circuit (as configured at the time) demonstrated the ability of the Jameson Cell to achieve final concentrate grades of between 13% – 28% Cu at excellent unit recoveries of between 70-90% (see Figure 1 below).

For comparison, the plant performance with conventional mechanical flotation cells (as configured in the plant at the time) for the six months ending June 30, 2014, immediately prior to Jameson Cell testing, averaged 13.94 % copper concentrate grade with average copper recoveries in the 70% range.

Recently, with the addition on Sub-A cleaning cells in the copper circuit, the mine is achieving 16% copper concentrate grades, and up to 55% recovery.

Zinc Flotation Circuit – 2014

Jameson Cell tests were also conducted on the zinc 1st cleaner feed stream in three different periods of time with the objective to evaluate the performance of the Jameson Cell to different ore types.

Figure 2 illustrates the results achieved, demonstrating the ability to moderately increase zinc recoveries and concentrate grades by adding extra cleaning capacity behind a Jameson Cell. A key benefit however, is the potential to reduce operating costs by reducing the cleaning stages.

The current plant configuration for the zinc circuit includes Sub-A cleaner cells, and the mine typically achieves 45-47% zinc concentrate grades, and 75-80% recoveries.

Luca Jameson Cell Pilot Plant Testing 2022

During 2022 the Company embarked on a metallurgical testing program to expand on the 2014 Nyrstar pilot plant testing at Campo Morado. Luca’s testing was designed to investigate the possibility of increasing zinc and lead recoveries and concentrate grades using Jameson Cells   at micro-fine grinding levels. The company also successfully tested the Jameson Cell’s ability to produce a precious metal rich pyrite concentrate from micro-fine regrinding of both historic 2010-2015 produced tailings stored in the Naranjo Bajo tailings storage facility, and fresh tailings from then current processing of the El Largo ore zone.

All process streams tested by Luca using the Jameson Cell pilot plant returned encouraging results demonstrating the ability to increase recoveries of lead and zinc, increase concentrate grades, as well as the ability to successfully produce a pyrite concentrate from both historic and fresh tailings containing significant enrichment of gold and silver.

Feed to 1st Lead Cleaner – 2022

Eighteen tests were conducted on the feed to the first lead cleaner using pre-determined pilot plant settings provided by Glencore, with the best results obtained on Test 17 returning a recovery of 70.74% lead resulting in a concentrate grade of 37.93% lead with the lowest mass pull of 16.5%. See Table 1 below which shows other significant testing results at higher mass pulls.

By comparison, average lead recoveries of 29% and concentrate grades of 22% Pb were achieved by Luca during all of 2021 processing with mechanical flotation at then normal grinding sizes above micro-fine levels. The company suspended lead concentrate production during 2022, switching to copper, to take advantage of increasing copper head grades and increased copper prices.

The pilot plant testing results obtained by Luca for the feed to the first lead cleaner clearly demonstrate that the addition of Jameson Cell technology into the processing plant could significantly increase lead recoveries and lead concentrate grades at micro-fine grind levels.

Feed to Primary Zinc Scavenger Flotation – 2022

Luca conducted 17 tests of the feed to the primary zinc scavenger flotation stream with the Jameson Cell pilot plant under different operating parameters supplied by Glencore. Historic zinc recoveries at Campo Morado have been reasonable, averaging for 2021 and 2022, approximately 70% zinc recovery and 46% zinc concentrate grade.

Luca’s Jameson Cell Pilot Plant testing of feed to primary zinc scavenger returned positive results in 10 of the 17 tests, showing increased concentrate grade produced by the Jameson Cell Pilot Plant acting as a primary zinc scavenger when compared to the concentrate concurrently produced by the same feed in industrial plant primary zinc scavenger as shown in the table below.

This data corroborates the Nyrstar 2014 testing which determined that the addition of Jameson Cell technology in the zinc recovery circuit with increased cleaning capacity would increase overall zinc recoveries.

About Luca Mining Corp.

Luca Mining Corp. is a Canadian based mining company with two 100% owned Mexican gold, silver, and base metal mining projects.

Luca’s Tahuehueto Gold Mine Project is in north-western Durango State, Mexico where construction of an initial 500 tonnes per day (“tpd”) operation is well advanced. The second stage, the 1000 tpd project, will follow immediately after commissioning the initial stage. The operation is generating gold, silver, lead, and zinc in concentrates.

Campo Morado is an operating polymetallic base and precious metals mine currently producing at an average of 2,400 tpd, generating zinc and copper concentrates with significant precious metals credits.

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Visit: www.Lucamining.com

On Behalf of the Board of Directors

(signed) “Mike Struthers”

Mike Struthers, CEO and Director

‍

Cautionary Note Regarding Production Decisions and Forward-Looking Statements

It should be noted that Luca declared commercial production at Campo Morado prior to completing a feasibility study of mineral reserves demonstrating economic and technical viability. Accordingly, readers should be cautioned that Luca’s production decision has been made without a comprehensive feasibility study of established reserves such that there is greater risk and uncertainty as to future economic results from the Campo Morado mine and a higher technical risk of failure than would be the case if a feasibility study were completed and relied upon to make a production decision. Luca has completed a preliminary economic assessment (“PEA”) mining study on the Campo Morado mine that provides a conceptual life of mine plan and a preliminary economic analysis based on the previously identified mineral resources (see News Release dated November 8, 2017, and April 4,2018).

Statements contained in this news release that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities laws. Forward Looking Information includes, but is not limited to, disclosure regarding the planned recommencement of mining operationsty6 at Campo Morado; and other possible events, conditions or financial performance that are based on assumptions about future economic conditions and courses of action; the timing and costs of future activities on the Company’s properties, such as production rates and increases; success of exploration, development and bulk sample processing activities, and timing for processing at its own mineral processing facility on the Tahuehueto project site. In certain cases, Forward-Looking Information can be identified using words and phrases such as “plans,” “expects,” “scheduled,” “estimates,” “forecasts,” “intends,” “anticipates” or variations of such words and phrases. In preparing the Forward-Looking Information in this news release, the Company has applied several material assumptions, including, but not limited to, that the current exploration, development, environmental and other objectives concerning the Campo Morado Mine and the Tahuehueto Project can be achieved; that recommencement of operations at Campo Morado will proceed as planned; the continuity of the price of gold and other metals, economic and political conditions, and operations. Forward-Looking Information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the Forward-Looking Information. There can be no assurance that Forward-Looking Information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on Forward-Looking Information. Except as required by law, the Company does not assume any obligation to release publicly any revisions to Forward-Looking Information contained in this news release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information about Luca Mining Corp., please contact:

Glen Sandwell

Corporate Communications Manager

ir@lucamining.com

Tel: +1 (604) 684-8071

Luca Mining Corp. (“Luca” or the “Company” (TSX-V: LUCA; OTCQX: LUCMF; Frankfurt: TSGA) is pleased to announce the addition of two new members to its Board of Directors.

The Company welcomes Dr. Neil O’Brien and Mr. Phil Brumit Sr. as Independent Directors.

The addition of these highly qualified and experienced independent directors strengthens the Company’s corporate governance and adds considerable business and industry experience to the Board.

David Rhodes, Chairman, commented: “On behalf of the Board we are delighted to welcome Neil and Phil, both highly experienced miners”.

“Luca is extremely pleased to have attracted such qualified and experienced directors as Neil O’Brien and Phil Brumit” said Mike Struthers, CEO, “I’ve known and worked with both Neil and Phil for a number of years, and I know their wide tier-one experience will add considerable depth to the Board on a number of fronts, not least in corporate governance, operations, exploration and new business development. I’m excited to work with them both again to help build Luca into a successful mining company.”

Dr. Neil O’Brien

Dr. O’Brien is a consulting economic geologist and former mining executive with three decades of industry service including Board of Director roles in public and private mineral exploration companies. Dr. O’Brien has international experience on five continents in all stages of mineral exploration and development of economic mineral resource projects, mining project evaluation and strategic corporate development activities. He retired in 2018 from Lundin Mining Corporation as Senior Vice President, Exploration & New Business Development. Dr. O’Brien also provides consulting services and is a non-executive director of other public companies.

Phil Brumit Sr.

Mr. Brumit is a mining executive with over 40 years of experience in property evaluation, engineering, project management, construction, start-up and operations within the industry. He recently served as Executive VP Projects & Operations at Josemaria Resources Inc. Prior to joining Josemaria, Mr. Brumit was President and Managing Director of Minera Candelaria, Chile, a subsidiary of Lundin Mining Corporation. His previous industry experience includes President of Freeport-McMoRan’s African Division and Senior Advisor, focused on the Tenke Fungurume Mine in the DRC; North American Manager of Operations for Newmont Corporation; and General Manager of Operations for PT Newmont Nusa Tenggara’s Batu Hijau mine in Indonesia.  

Directors Resignations

To accommodate the appointment of the above new directors, Luca has accepted the voluntary resignation of Independent Director Mark Bailey.  

Chairman David Rhodes stated, “On behalf of the board and Luca I want to thank Mark for his valuable contributions to the Company over the past 18 months and wish him well in his future endeavours.”

Luca’s Board of Directors now consists of eight members as follows: David Rhodes (Chair), Mike Struthers, Roberto Guzman Garcia, Rory Godinho, Ruben Alvidrez Ortega, Neil O’Brien, Phil Brumit, and Ralph Shearing.

Grant of Incentive Stock Options

The Company announces that pursuant to its Omnibus Equity Incentive Plan, it has granted incentive stock options entitling Directors, Officers, and Employees to purchase an aggregate 4,400,000 shares in the capital stock of the Company. The options will be exercisable at a price of $0.455 per share for a period of 5 years.  

Appointment of Marketing and Investor Relations Advisors

The Company has also appointed Brisco Capital Partners Corp, and TLG Growth Capital Corp., as marketing and investor relations consultants and advisors.  The agreements are on a renewable monthly basis, and include the award of 250,000 stock options each, at CAD$ 0.455 per share, for a period of 5 years from the date of issuance.  The options will vest 33% on issuance, and the balance in two equal tranches at 6 and 12 months from the grant date.

Extension of Private Placement

Due to continued strong demand, the Company has determined it will extend its previously announced private placement (the “Private Placement”) to June 30, 2023, in order to allow it to fill the oversubscription option of the Private Placement (see the Company’s news release dated March 31, 2023). The first tranche of the Private Placement closed on April 25, 2023, and the second tranche of the Private Placement closed on June 2, 2023 (see the Company’s news releases dated April 26, 2023, and June 5, 2023). Under this third and final tranche of the Private Placement, the Company may raise additional gross proceeds up to $3.6 million.

About Luca Mining Corp.

Luca Mining Corp. is a Canadian based mining company with two 100% owned Mexican gold, silver, and base metal mining projects.

Luca’s Tahuehueto Gold Mine Project is in north-western Durango State, Mexico where construction of an initial 500 tonnes per day (“tpd”) operation is well advanced. The second stage, the 1000 tpd project, will follow immediately after commissioning the initial stage. The operation is generating gold, silver, lead, and zinc in concentrates.

Campo Morado is an operating polymetallic base and precious metals mine currently producing at an average of 2,400 tpd, generating zinc and copper concentrates with significant precious metals credits.

Visit: www.Lucamining.com

On Behalf of the Board of Directors

(signed) “Mike Struthers”

Mike Struthers, CEO and Director

Cautionary Note Regarding Production Decisions and Forward-Looking Statements

It should be noted that Luca declared commercial production at Campo Morado prior to completing a feasibility study of mineral reserves demonstrating economic and technical viability. Accordingly, readers should be cautioned that Luca’s production decision has been made without a comprehensive feasibility study of established reserves such that there is greater risk and uncertainty as to future economic results from the Campo Morado mine and a higher technical risk of failure than would be the case if a feasibility study were completed and relied upon to make a production decision. Luca has completed a preliminary economic assessment (“PEA”) mining study on the Campo Morado mine that provides a conceptual life of mine plan and a preliminary economic analysis based on the previously identified mineral resources (see News Release dated November 8, 2017, and April 4,2018).

Statements contained in this news release that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities laws. Forward Looking Information includes, but is not limited to, disclosure regarding the planned recommencement of mining operationsty6 at Campo Morado; and other possible events, conditions or financial performance that are based on assumptions about future economic conditions and courses of action; the timing and costs of future activities on the Company’s properties, such as production rates and increases; success of exploration, development and bulk sample processing activities, and timing for processing at its own mineral processing facility on the Tahuehueto project site. In certain cases, Forward-Looking Information can be identified using words and phrases such as “plans,” “expects,” “scheduled,” “estimates,” “forecasts,” “intends,” “anticipates” or variations of such words and phrases. In preparing the Forward-Looking Information in this news release, the Company has applied several material assumptions, including, but not limited to, that the current exploration, development, environmental and other objectives concerning the Campo Morado Mine and the Tahuehueto Project can be achieved; that recommencement of operations at Campo Morado will proceed as planned; the continuity of the price of gold and other metals, economic and political conditions, and operations. Forward-Looking Information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the Forward-Looking Information. There can be no assurance that Forward-Looking Information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on Forward-Looking Information. Except as required by law, the Company does not assume any obligation to release publicly any revisions to Forward-Looking Information contained in this news release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information about Luca Mining Corp., please contact:

Glen Sandwell

Corporate Communications Manager

ir@lucamining.com

Tel: +1 (604) 684-8071

Luca Mining Corp. (“Luca” or the “Company”, formerly Altaley Mining Corporation.) (TSX-V: LUCA; OTCQX: LUCMF; Frankfurt: TSGA) is pleased to announce that it has closed the second tranche (the “Second Tranche”) of its previously announced non-brokered private placement (the “Private Placement”) for aggregate gross proceeds of $20,755,535.17 (see the Company’s news release dated March 31, 2023). Under the Second Tranche, the Company has sold 6,889,462 units of the Company (each, a “Unit”) at a price of CAD $0.35 per Unit for gross proceeds of CAD $2,411,312.20. On April 25, 2023, the Company closed the first tranche of the Private Placement for gross proceeds of CAD $18,344,222.97 (see the Company’s news release dated April 26, 2023). The aggregate gross proceeds are slightly higher than the original announced amount of $20,300,000 Each Unit consists of one common share of the Company (a “Share”) and one-half of one transferable share purchase warrant (each whole, a “Warrant”). Each Warrant entitles the holder thereof to acquire one additional Share (a “Warrant Share”) at a price of CAD $0.50 per Warrant Share until June 2, 2025 (the “Expiry Date”), subject to acceleration. If the closing price of the Shares on the TSX Venture Exchange or such other stock exchange as Luca is listed on exceeds CAD $0.90 for 15 consecutive trading days, the Company will earn the right, by providing notice (the “Acceleration Notice”) to the warrant holders via a news release or written notice, to accelerate the Expiry Date of the Warrants to 4:00 P.M. (Vancouver time) on the 30th day from the date of the Acceleration Notice (the “Accelerated Expiry Date”). If the Company provides an Acceleration Notice, all Warrants that are not exercised by the Accelerated Expiry Date will expire.

All securities issued in connection under the Second Tranche are subject to a four month plus one day hold period under applicable Canadian securities laws. Finder’s fees are to be paid in cash and securities (6% cash and 6% in warrants) in connection with the Private Placement to various finders. The Private Placement is subject to the receipt of final approval from the TSXV.

As previously disclosed, the net proceeds from the Second Tranche will be used by the Company to complete construction of its phase one 500 tonnes per day (“tpd”) project at the Tahuehueto Gold Mine; to make substantial progress towards completing its nameplate 1,000 tpd project; and for general working capital.

“We are very pleased to announce this closing of the Private Placement, building on our first tranche announced on April 26th. Securing this level of support from existing and new investors, at a very challenging time in the markets generally, is testament to the confidence investors have in our turnaround plans and the new team,” commented Mike Struthers, CEO. “I’m also very pleased to say we are on track to achieve our first key milestone of 500 tonnes per day at Tahuehueto by the end of the month, as previously announced.  I look forward to providing more updates in the near future”.

DEBT SETTLEMENTS

Concurrently with closing the Second Tranche, the Company is pleased to advise that it has also closed two debt settlements (the “Debt Settlements”) as part of its financing package (see the Company’s news release dated March 31, 2023). Pursuant to the initial debt settlement, Calu Opportunity Fund, LP (“Calu”) settled a loan in the amount of $3,714,729.11 in consideration of the issuance of 8,254,954 Shares at a price of $0.45 per Share. Pursuant to the second debt settlement, Calu settled an advance in the amount of $4,900,000 made as a standby guarantee under the proposed rights offering of the Company (which did not proceed) in consideration of the issuance of 14,000,000 units, having the identical terms as the Private Placement Units.

All securities issued in connection under the Debt Settlements are subject to a four month plus one day hold period under applicable Canadian securities laws. The Debt Settlements are subject to the receipt of final approval from the TSXV.

NEW CONTROL PERSON

As a consequence of the closing of the Second Tranche and the Debt Settlements, Calu has been issued, in aggregate, 34,483,525 Shares and 13,114,285 Warrants, representing 26.55% of the issued and outstanding Shares of the Company on a post-closing basis. Accordingly, Calu has become the “Control Person” (as that term is defined under British Columbia securities laws and the policies of the TSXV) of the Company. The creation of Calu as a Control Person was approved by the Company’s shareholders at the Company Annual General Meeting held on March 14, 2023 (see the Company’s news release of March 17, 2023).

“The completion of Luca Mining’s private placement and the impending completion of construction at the Tahuehueto  gold project marks a remarkable turning point for the company,” explained Enrique Peralta. “We, at Calu Opportunity Fund, are truly excited about the potential and long-term value that Luca Mining brings to the table. This significant progress solidifies our confidence in the company’s ability to deliver outstanding results and generate substantial returns for its shareholders.”

About Luca Mining Corp.

Luca Mining Corp. is a Canadian based mining company with two 100% owned Mexican gold, silver, and base metal mining projects.

Luca’s Tahuehueto Gold Mine Project is in north-western Durango State, Mexico, where construction of an initial 500 tonnes per day (“tpd”) operation is well advanced. The second stage, the 1000 tpd project, will follow immediately after commissioning the initial stage. The operation is generating gold, silver, lead, and zinc in concentrates.  

Campo Morado is an operating polymetallic base and precious metals mine currently producing at an average of 2,400 tpd, generating zinc and copper concentrates with significant precious metals credits.

Visit: www.lucamining.com

On Behalf of the Board of Directors

(signed) “Mike Struthers”

Mike Struthers,

CEO and Director

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CAUTIONARY NOTE REGARDING PRODUCTION DECISIONS AND FORWARD-LOOKING STATEMENTS

It should be noted that Luca (then Altaley Mining Corporation) declared commercial production at Campo Morado and elected to initiate construction to go into production at Tahuehueto prior to completing full feasibility studies demonstrating economic and technical viability. Accordingly, readers should be cautioned that Luca’s production decisions have been made without comprehensive feasibility studies of established reserves at Campo Morado and prefeasibility level reserves at Tahuehueto, such that there is greater risk and uncertainty as to future economic results from the Campo Morado mine and at Tahuehueto mine where reserves are established to the prefeasibility level of confidence and therefore a higher technical risk of failure than would be the case if full feasibility studies were completed and relied upon to make production decisions. Luca has completed a preliminary economic assessment (“PEA”) mining study on the Campo Morado mine and a prefeasibility study (‘PFS”) at Tahuehueto mine that provides a conceptual life of mine plan and a preliminary economic analysis based on the previously identified mineral resources (see News Release dated November 8, 2017, April 4, 2018, and April 25, 2022).  

Statements contained in this news release that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities laws. Forward-Looking Information includes but is not limited to conditions or financial performance that are based on assumptions about future economic conditions and courses of action; the timing and costs of future activities on the Company’s properties, such as production rates and increases; success of exploration, development and bulk sample processing activities, and timing for processing at its own mineral processing facility on the Tahuehueto project site. In certain cases, Forward-Looking Information can be identified using words and phrases such as “plans,” “expects,” “scheduled,” “estimates,” “forecasts,” “intends,” “anticipates” or variations of such words and phrases. In preparing the Forward-Looking Information in this news release, the Company has applied several material assumptions, including, but not limited to, that the current exploration, development, environmental and other objectives concerning the Campo Morado Mine and the Tahuehueto Project can be achieved: the continuity of the price of gold and other metals, economic and political conditions, and operations. Forward-Looking Information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the Forward-Looking Information. There can be no assurance that Forward-Looking Information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on Forward-Looking Information. Except as required by law, the Company does not assume any obligation to release publicly any revisions to Forward-Looking Information contained in this news release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.  

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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For further information about Luca Mining Corp., please contact:

Glen Sandwell

Corporate Communications Manager

ir@lucamining.com

Tel: +1 (604) 684-8071

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