PAN MINE

Pan is Fiore’s flagship Nevada asset providing the foundation and cash flow for growth in the US

The Pan Mine is a Carlin-style, open-pit, heap-leach mine in east-central Nevada, approximately 28 km southeast of the town of Eureka, on the prolific Battle-Mountain – Eureka gold trend.

Pan ramped up smoothly after restarting operations in September 2017. Gold production has increased each year and is expected to increase again in 2020 resulting from the installation of a primary crushing circuit. Following a successful drilling program in 2018, Pan completed a second program in the first half of 2020 of approximately 70,000 feet, with a resource updated expected in the second half of 2020. Pan has provided an excellent foundation to fund on-going drill and study costs at Gold Rock.

Gold Production

Fiore’s predecessor company GRP Minerals purchased the mine out of bankruptcy in 2016 for approximately US$5 million, and immediately began a program to correct the operational issues that had impacted the mine under the previous owners. These corrective measures included:

• A 15,400-metre program of infill drilling to better define the geology, and increase confidence in the mineral resources and reserves
• Commissioning SRK to carry out a new Feasibility Study and Resource and Reserve Estimate based on the new drilling, as well as information gained during previous mining operations at Pan.
• Rehabilitation of the existing leach pad to correct the previous low-permeability issues that had existed under the previous operator
• Opening the North Pit and instituting a blending strategy with rocky and clay-rich ore to ensure that permeability problems do not re-occur
• Improved grade control sampling procedures
• Commissioning of the onsite grade control assay laboratory
• Assigning a geologist to oversee grade control and provide geological controls on mining
• Improved operating procedures on the leach pad and at the ADR plant

In June 2020, we updated the Pan Resources and Reserves. The updated reserve and resource estimates continue to support our strategy of replacing ounces at the Pan Mine by methodically and prudently investing internal cash flow to extend the mine life. At Fiore Gold’s inception, the Pan Mine Proven and Probable mineral reserves and Measured and Indicated resources (effective February 10 and March 16, 2017 respectively) were 318,000 ounces and 430,000 ounces, respectively. Despite approximately three years of mining depletion, the updated 2020 Proven and Probable reserves and Measured and Indicated resources are 290,500 ounces (91% of original reserve) and 427,400 ounces (99% of original resource), respectively. The reserve and resource replacement has been achieved while spending approximately $1.5 million on exploration annually over the past three years. Importantly, we have achieved these results without diluting shareholders through additional equity raises or taking on corporate debt since the formation of the Company in 2017. We believe this disciplined approach distinguishes us from many of our peers.

Table 1. Pan Mine Reserve Statement (effective June 30, 2020)

Pan Mine Reserves. Source: Fiore Gold press release of December 8, 2020, effective June 30, 2020. Reserves stated in the table above are contained within an engineered pit design following the US$1,575/oz Au sales price Lerchs-Grossmann pit. Date of topography is June 30, 2020; In the table above and subsequent text, the abbreviation “st” denotes US short tons; Mineral Reserves are stated in terms of delivered tons and grade before process recovery. The exception is leach pad inventory, which is stated in terms of recoverable Au ounces; Allowances for external dilution are applied.Costs used include an ore mining cost of US$2.09/st, a waste mining cost of $1.97/st, an ore processing and G&A cost of US$3.13/st; Reserves for Argillic (soft) ore are based upon a minimum 0.003 oz/st Au internal cut off grade (“CoG”) and a Au Recovery of 80%; Reserves for Silicic (hard) ore are based upon a minimum 0.004 oz/st Au Internal CoG and a Au Recovery of 60%;. Mineral Reserves stated above are contained within and are not additional to the Mineral Resource. Numbers in the table have been converted to metric units and may not sum due to rounding.

Table 2. Pan Mine Resource Statement (inclusive Reserves, effective June 30, 2020)

Pan Mine Resources. Source: Fiore Gold press release of December 8, 2020, effective June 30, 2020. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that any part of the Mineral Resource will be converted into a Mineral Reserve. Pit-constrained resource based on an assumed gold price of US$1,700/oz, Silicic (hard) ore recoveries of 60% for Au and an Argillic (soft) ore recovery of 80% for Au, an ore mining cost of US$2.09/st, a waste mining cost of $1.97/st, an ore processing and G&A cost of US$3.13/st, and pit slopes between 45-50 degrees; Resources are reported using an internal gold cut off grade of 0.003 oz/st Au for blocks flagged as Argillic altered or as unaltered and a cutoff of 0.004 oz/st Au for blocks flagged as Silicic altered; Numbers in the table have been converted to metric units and may not sum due to rounding