Acquisition Of Golden Queen Mining Company

TORONTO - Andean Precious Metals Corp. reported through its subsidiary Soledad Holdings, Inc., that it has signed and closed a transaction to acquire a 100% interest in Golden Queen Mining Company, LLC from Auvergne Umbrella LLC. Golden Queen operates the Soledad Mountain mine and heap leach operation located in Kern County, Southern California. Since its commercial start-up in mid-2016, Soledad Mountain has produced more than 340,000 ounces of gold and approximately 3.5 million ounces of silver.

"Andean's acquisition of Golden Queen represents an important step towards achieving our vision of becoming a multi-jurisdictional mid-tier producer in the Americas," said Alberto Morales, Executive Chairman and CEO. "After an extensive review of available acquisition targets and thorough due diligence, Golden Queen stood out as a strong foundational asset that sets us up to diversify and increase annual production and move into a tier one mining jurisdiction. Furthermore, the structure of the transaction and its payment terms allow us to maintain our strong cash liquidity position and pursue other opportunities for future growth. With recent mine infrastructure investments now complete, our focus is on developing a new mine plan to ensure Soledad Mountain is well positioned to benefit from an improved production and cost profile. Potential catalysts, including mine optimization, ore control, operational improvements, an updated NI 43-101 mineral reserve and resource estimate, and exploration opportunities, are expected to unlock further value for our shareholders."