Project Pipeline And Exploration For Projects In Mexico And Panama

VANCOUVER - Orla Mining Ltd. reported its exploration activities from 2020 and a preview of its exploration plans for 2021. Concurrent with the development of the Camino Rojo Oxide Project, Orla will continue to advance its project pipeline and exploration in both Mexico and Panama. The Company is seeking to expand its reserve and resource base and make new discoveries through a systematic and efficient approach to exploration. "Orla has large and highly prospective land packages, in two nations, that already host oxide and sulphide gold deposits. Both land packages are under-explored around the existing discoveries providing an outstanding opportunity for additional discoveries in the coming years," stated Jason Simpson, President and Chief Executive Officer.

Completion of a directional drilling program that commenced in the fourth quarter of 2020. The program consists of close-spaced, 25-meter drilling of the sulphide zone, over the down plunge extension of the Camino Rojo deposit.

Objective: The new information collected will support development scenario planning for the large sulphide resource which hosts 7.3 million ounces of gold in measured and indicated resource categories (256 million tonnes at 0.88 g/t)2. The drilling will provide additional information about the continuity and geometry of the higher-grade mineralization and provide new material for geotechnical and metallurgical studies. Completion of a 2,500-meter core drilling program on Fresnillo's property and integration of Orla's geological and resource models with Fresnillo's drill data. Objective: Enable material on the Fresnillo concession to be included in the measured and indicated mineral resource categories and to be considered in an updated mineral reserve estimate.

Completion of a 7,500-meter rotary ("RAB") Covered Bedrock Interface ("CBI") survey. Objective: The 2021 regional program will seek to define drill targets for the discovery of satellite deposits near the Camino Rojo deposit. A large part of the property has a thin cover of alluvial soil and calcrete or caliche layers (calcium carbonate concretions). The resulting geochemical samples from the survey in combination with geophysical IP surveys planned in 2021 and existing geological information will allow for the definition of new priority drill targets. The discovery of the Caballito mineralized zone and follow-up drilling executed by Orla led to the definition of significant copper and gold sulphide mineralization with open pit potential. The Caballito-style mineralization differs from the Pava and Quemita oxide deposits as it consists of copper-gold (low arsenic) sulphide mineralization that will not be amenable to heap leaching and will require a different processing method. The Cerro Quema property shows some potential for additional oxide mineralization, and the upside resides within the sulphides in an area that is largely under-explored.

In the fourth quarter of 2020, drilling commenced along the Caballito trend to define additional copper-gold sulphide mineralization like the previously discovered Caballito mineralized zone.

Results: In the first two of 15 planned holes completed, multiple intervals of alteration were noted. This included narrow intervals of weakly to moderately advanced argillic alteration and patchy quartz-alunite intervals and mineralization mostly disseminated pyrite and local pyrite-enargite and trace of copper sulphide. Anomalous assays (1.5m at > 0.500 ppm Au, or 1.5m at > 1,000 ppm Cu) included gold and copper with values up to 0.538 ppm Au and 2,400 ppm Cu over 1.5 meters from 344.3 meters in hole CQDH-20-184.

Completion of a 15-hole, 3,760-meter drill program that began in the fourth quarter of 2020 and will extend into the first half of 2021. Objective: Testing priority targets primarily defined with geophysical IP anomalies along the Caballito trend, outside the Caballito deposit, and near the Quemita deposit. The aim of the drill program is to assess the copper-gold upside potential to the current mineralization. Completion of a geophysical IP survey totaling 50-kilometers will be performed on the southeast extension of the Caballito deposit and the La Prieta target area located farther to the south. Objective: The new geophysical information obtained will be combined with a global review of the Cerro Quema data to define new drill targets for the discovery of Caballito-style satellite deposits. At La Prieta, porphyry-style mineralization is outcropping, and historical reconnaissance geophysical IP lines indicate a large chargeability anomaly over this area. Follow-up IP survey will further define the extent of this target and will assist with the definition of drill holes.

Orla is developing the Camino Rojo Oxide Gold Project, an advanced gold and silver open-pit and heap leach project, located in Zacatecas State, Central Mexico. The project is 100% owned by Orla and covers over 160,000 hectares. The technical report for the 2019 Feasibility Study entitled "Feasibility Study, NI 43-101 Technical Report on the Camino Rojo Gold Project — Municipality of Mazapil, Zacatecas, Mexico". An updated independent technical report for the updated Feasibility Study on the Camino Rojo Oxide Gold Project prepared in accordance with the requirements of National Instrument ("NI") 43-101 will be available, "Orla Mining Increases Gold Mineral Reserves by 54% With Updated Feasibility Study at the Camino Rojo Oxide Gold Project". Orla also owns 100% of the Cerro Quema Project located in Panama which includes a near-term gold production scenario and various exploration targets.