Recent Highlights

Q2 2023 HIGHLIGHTS

• On June 14, 2023 the Company closed a non-brokered private placement, whereby the Company sold 6,161,138 common shares at a price of $21.10 per common share for gross proceeds of $130.0 million, less share issuance costs of $0.8 million (net proceeds of $129.2 million);
• Continued exploration success, highlighted by:
  • The release of assays from multiple holes drilled into the Aurora, Filo and Bonita Zones across large intervals with consistently strong mineralization. Several of the holes reported are entirely outside the Company’s existing resource pit shell and serve to expand the size of the mineralized zones and improve the geological interpretation of the deposit;
  • A magnetotelluric geophysical survey was completed and supports the interpretation of a geological connection between Aurora and Bonita. Modelling of the survey data shows a zone of elevated conductivity trending north-northeast along the length of the Filo del Sol and Aurora Zones and continuing strongly as far as holes FSDH060 and FSDH075 at the Bonita Zone. Combined with the geology seen in recent holes, this provides strong evidence that the system is continuous along at least 3.5km and that the Bonita Zone is the northern part of the system, rather than a separate zone;
  • Drilling results continue to demonstrate growth of the Aurora Zone towards the Bonita Zone. Multiple holes are currently drilling which will provide critical information on the potential continuity of mineralization between these two zones;
  • Results from the first two holes drilled into the Gemelos target. Despite low grades of gold and copper encountered, results indicate a high-sulphidation epithermal system. The Gemelos alteration zone is roughly equivalent in size to the Filo del Sol alteration zone and remains a high potential target warranting additional exploration;
  • Results from the second hole drilled into the Flamenco target, an area over 3 kilometers to the south of the Aurora Zone. The hole was collared 723m southwest of FSDH077, the first Flamenco hole which was reported in the Company’s news release dated March 16, 2023. This hole expanded the area of moderate grade mineralization intersected in hole FSDH077 and continued to support Flamenco as a high-quality exploration target which requires significant additional exploration; and
  • The Aurora Zone, the Bonita Zone, and the high-grade Breccia 41 area remain open to expansion in several directions and drilling to further define them is ongoing;
• On June 19, 2023 Filo’s inaugural Sustainability Summary Report was published and is available on our website. The report outlines Filo’s Sustainability Framework and commitments to guide the company moving forward, discloses Filo’s baseline data and provides transparency to our stakeholders. The report also highlights the positive work and activities the Company has already undertaken on our sustainability journey.

Q2 2023 DRILLING AND ASSAY RESULTS

Drilling and assay results disclosed by the Company during and subsequent to the first two quarters of 2023 are summarized in the following table:

(1) Copper Equivalent is calculated based on US$ 3.00/lb Cu, US$ 1,500/oz Au and US$ 18/oz Ag, with 80% metallurgical recoveries assumed for all metals. The formula is: CuEq % = Cu % + (0.7292 * Au g/t) + (0.0088 * Ag g/t)

As of the date of this MD&A, additional holes have been completed with assays pending, which include:

• FSDH084
• FSDH087

Assay results for completed holes will be released as they are received, analyzed, and confirmed by the Company.