Hycroft Mine Continues Ramp Up and Construction Activities Towards Achieving Feasibility Study Production Levels

DENVER, CO - Hycroft Mining Holding Corporation reported it has focused on operating nine start-up pads to demonstrate the viability of its proprietary heap leach oxidation process on a large scale while it prepares the workforce, facilities and equipment to ramp up to full-scale operations. Steve Jones, Interim President & Chief Executive Officer, said, “During the second quarter of 2019, we restarted open pit mining operations on a limited basis to demonstrate the viability of the newly developed oxidation heap leach process at the Hycroft Mine. During the third quarter of 2019, we produced and sold gold and silver, which we have continued to do on an approximate weekly basis since restarting. Each quarter since restarting, we have generally increased tons mined, crushed, and placed on the leach pads, most notably in the second quarter of 2020 following the arrival and commissioning of mobile mining equipment rentals.

During the first quarter of 2020, ore tons crushed averaged approximately 338,000 tons per month and increased to approximately 459,000 tons per month in the second quarter of 2020, an increase of 36%. During the second half of 2020, we will continue our focus on improving crusher operations, planned maintenance, operator training, and automation enhancements.

During the first half of 2020, we were unable to achieve many of our internal targets, including with respect to leach pad processing activities, which resulted in the write-off of recoverable gold ounces. Our operating plans for the second half of 2020 contemplate our estimates of ore tonnage (and related solution flows) that we believe can be successfully processed to further demonstrate the success of the two-stage oxidation and leach process. The gold and silver grades of ore mined in the first half of 2020 were as planned and decreased from the comparable period of 2019 in which existing higher grade stockpile ore was mined prior to commencement of drilling and blasting activities. During the second quarter of 2020, we commenced in- pit contractor drilling and blasting activities to provide fresh ore feed for the crusher, run-of-mine hauling and waste removal in support of the full year plan. Gold and silver ounces produced, and related ounces sold, were lower than feasibility study levels due to our inability to properly execute our processing plans and delays in getting the pads under leach. Average realized gold prices per ounce increased during the first half of 2020 and resulted in revenue of $7.6 million and $18.8 million during the three and six months ended June 30, 2020.”

The Company expects second half of 2020 crushing and production levels to be consistent with or above first half of 2020 levels, and that 2021 and beyond will see material increases in mining, crushing and production with the continuation to ramp up infrastructure, including the large new leach pad currently under construction on the north side of the property.

During the second quarter of 2020, commencement of a leach pad expansion project on the north side of the Hycroft Mine property to provide the leach pad space required for future operations. The initial stage of the leach pad project is being constructed in two phases by a contractor, with the first phase consisting of approximately 4.0 million square feet of pad space and infrastructure for ponds, pipes and electricity, and the second phase consisting of approximately 4.6 million square feet, which we expect to construct in 2021. With respect to the first phase, it is expected the earthworks and leach pad construction to be completed in the fourth quarter of 2020 and infrastructure completed and initially commissioned shortly thereafter.