(All amounts are in U.S. dollars unless otherwise stated)

Toronto, Ontario--(Newsfile Corp. - January 31, 2024) - Andean Precious Metals Corp. (TSXV: APM) (OTCQX: ANPMF) ("Andean" or the "Company") is pleased to announce updated mineral reserve and mineral resource estimates ("MR&RE") for its wholly owned subsidiary, Golden Queen Mining LLC, which operates the Soledad Mountain mine and heap leach operation in Kern County, Southern California.

The MR&RE and Feasibility Study Update Technical Report on the Soledad Mountain Heap Leach Project, dated January 12, 2024 (the "Technical Report"), were prepared by Kappes, Cassiday & Associates ("KCA"), Independent Mining Consultants Inc. ("IMC"), RESPEC Company LLC ("RESPEC") and George Klemmick (AIPG Certified Professional Geologist, Consulting Geologist). The Technical Report was prepared in compliance with National Instrument 43-101 - Standards for Disclosure for Mineral Projects ("NI 43-101") and has been filed on SEDAR+.

"We are pleased that the mineral reserve and resource estimates for Soledad Mountain fully met our base case expectations," stated Alberto Morales, Executive Chairman and Chief Executive Officer of Andean. "With an updated mineral reserve and resource in hand, our team is focused on enhancing and growing the recently acquired Soledad Mountain mine. We are now identifying near-term and sustainable opportunities to optimize mine operations and production to improve margins, cash flow and costs per ounce. We are also defining and prioritizing exploration targets to help realize the potential upside at Soledad Mountain and add to the operation's life of mine."

"We see many opportunities at Soledad Mountain and look forward to realizing the project's potential to be a growth catalyst in the US, one of the world's leading mining jurisdictions."

Soledad Mountain MR&RE Highlights

• Gold ("Au")

- M&I resources of 41.8 M tonnes grading 0.62 grams per tonne ("g/t") Au for a total of 822,000 contained oz
- P&P reserves of 21.0 M tonnes grading 0.72 g/t Au for a total of 484,675 contained oz
- Inferred resources of 3.6 M tonnes grading 0.45 g/t for a total of 53,000 contained oz

Silver ("Ag")

- M&I resources of 41.8 M tonnes grading 8.37 g/t Ag for a total of 11.24 M contained oz
- P&P reserves of 21.0 M tonnes grading 10.15 g/t Ag for a total of 6.85 M contained oz
- Inferred resources of 3.6 M tonnes grading 6.27 g/t Ag for a total of 0.73 M contained oz

* Mineral resources are inclusive of reserves. See Appendix for further tables and notes.

• Life of mine (LOM): Five years from 2P mineral reserves.
  
• LOM average annual production: Up to 65 koz of gold and 466 Koz of silver.
  
• Total production: 373 Koz Au and 2.7 Moz Ag.
  
• Stripping ratio: 6.09:1 (waste tons: ore tons).
  
• Sustaining capital cost: $55.9 million.
  
• Project pre-tax and after-tax net present values of $116 million and $102 million, respectively, at a discount rate of 5% with a gold price of $1,850/oz and a silver price of $24/oz.
  
• While stacking ore stops in 2029, work is expected to continue at site for approximately 35-40 years via the sale of waste rock for aggregate, construction and landscape material in the regional area.

Soledad Mountain MR&RE Changes Since 2022

Since 2022, the reported reserves and resources have dropped slightly due to depletion by mining and to a lesser extent due to a lower estimated recovery from the Silver Queen vein structure, which is one of the many mineralized vein zones on the property. The recovery change reflects production experience and new column leach tests. Production depletion was partially offset by higher metal price assumptions used in the estimation of mineral resources and reserves.

In terms of economics, an increase in mine sustaining capital was incorporated into the Technical Report to improve mining costs as compared to those in prior studies.

Mineral Resource Estimate Methodology

The estimates of mineral resources are effective as of September 30, 2023 and are presented in Appendix - Table 1 of this press release.

The gold and silver resources were modeled and estimated by:

• evaluating the drill data statistically and spatially to determine natural gold and silver populations;
  
• explicitly modeling low-, medium-, and high-grade mineral-domain polygons for both gold and silver on sets of cross sections spaced at 50- and 100-ft intervals;
  
• projecting the cross-sectional mineral domain polygons horizontally to the drill data within each cross-sectional window;
  
• slicing the three-dimensionally projected mineral domain polygons along 20 foot-spaced horizontal planes and using them to guide refinement of the gold and silver mineral domain polygons on a set of 20 foot-spaced level plans;
  
• coding a block model comprised of 20 x 20 x 20 ft blocks to the gold and silver mineral domains for each of the two deposit areas using the level plan mineral domain polygons;
  
• analyzing the modeled mineralization geostatistically to aid in the establishment of estimation and classification parameters; and
  
• interpolating gold and silver grades into the block model by inverse-distance to the third power, using the coded gold and silver mineral domain percentages to constrain the grade estimations.

Mineral Reserves Estimate Methodology

The estimates of mineral reserves are effective as of September 30, 2023, and are presented in Appendix - Table 2 of this press release.

The following process and modifying factors were followed to calculate the mineral reserves:

• Selection of metal selling prices based on historical and projected prices.
  
• Review of all modifying factors including metal prices, costs, dilution, mining recovery, processing recovery, sustaining capital, royalties, and mining methods.
  
• Dilution is built into the model and no additional dilution is required.
  
• Pit optimization using all modifying factors.
  
• Pit design following geotechnical recommendations.
  
• Mine production schedules for the life of the project, based on a combination of monthly, quarterly, semi-annual and annual periods.
  
• Cost model verification based on new mine schedule and inventory.
  
• Generation of post-tax cash flow.

Capital and Operating Cost Estimates

The Soledad Mountain project has been in operation since early 2016 providing almost eight years of historical operating data for the site. Future mining and processing at the site have recently increased due to recent improvements in operation. The historical data and experience of the site personnel will provide the best estimate of future costs.

The heap leach pad has been expanded to its final size. The capital costs are summarized as:

Total Sustaining Capital

The capital costs are sustaining costs to rebuild and replace equipment and to replace the Merrill Crowe plant with a carbon adsorption circuit at closure.

Operating Cost Summary

The columns may not sum exactly due to rounding.

The operating costs are estimated to average $23.66 per ton, including mining, processing, G&A and reclamation.

After-tax Cash Flow Analysis

The Soledad Mountain project has pre-tax and after-tax net present values of $116 million and $102 million, respectively, at a discount rate of 5.0%. The undiscounted, cumulative net cash flows for pre-tax and after-tax are approximately $145 million and $129 million, respectively. By comparison, at an 8.0% discount rate, the pre-tax and after-tax NPVs are $102 million and $89 million, respectively. Project cash flows are from October 1, 2023 through to the end of 2030.

The contribution of gold, silver and aggregate to gross revenues is approximately 91.2%, 8.6% and 0.2% respectively. The operating equivalent gold cash cost per ounce is $1,340/oz. The total cash costs per equivalent ounce including sustaining capital is $1,477/oz. Gold and silver prices used to model the cash flows were $1,850/oz and $24/oz, respectively.

The Soledad Mountain project is expected to generate positive cash flow in each year of production except 2026.

Qualified Persons

The following people served as the Qualified Persons for Golden Queen's Soledad Mountain operation as defined in NI 43-101 and have reviewed and approved this press release:

• Carl E. Defilippi, SME Registered Member, Engineering Manager, KCA, Reno NV
  .
• Michael M. Gustin, AIPG Certified Professional Geologist, RESPEC Principal Consultant.
  
• Joseph C. McNaughton, PE, Partner, IMC, Tucson AZ.
  
• George Klemmick, AIPG Certified Professional Geologist, Consulting Geologist, Chugiak, AK.

Donald J. Birak, Registered Member, Society for Mining, Metallurgy and Exploration (SME) and Fellow, Australasian Institute of Mining and Metallurgy (AusIMM), is the Independent Consulting Geologist to the Company, and a Qualified Person as defined by NI 43-101.

About Andean Precious Metals

Andean is a growing precious metals producer focused on expanding into top-tier jurisdictions in the Americas. The Company owns and operates the San Bartolomé processing facility in Potosí, Bolivia and the Soledad Mountain mine in Kern County, California, and is well-funded to act on future growth opportunities. Andean's leadership team is committed to creating value; fostering safe, sustainable and responsible operations; and achieving our ambition to be a multi-asset, mid-tier precious metals producer.

For more information, please contact:

Trish Moran
VP Investor Relations
tmoran@andeanpm.com
T: +1 416 564 4290

Neither the TSX Venture Exchange, Inc. nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Caution Regarding Forward-Looking Statements

Certain statements and information in this release constitute "forward-looking statements" within the meaning of applicable U.S. securities laws and "forward-looking information" within the meaning of applicable Canadian securities laws, which we refer to collectively as "forward-looking statements". Forward-looking statements are statements and information regarding possible events, conditions or results of operations that are based upon assumptions about future economic conditions and courses of action. All statements and information other than statements of historical fact may be forward-looking statements. In some cases, forward-looking statements can be identified by the use of words such as "seek", "expect", "anticipate", "budget", "plan", "estimate", "continue", "forecast", "intend", "believe", "predict", "potential", "target", "may", "could", "would", "might", "will" and similar words or phrases (including negative variations) suggesting future outcomes or statements regarding an outlook.

Forward-looking statements in this release include, but are not limited to, statements and information regarding the project's cash flows from October 1, 2023 through to the end of 2030, the expected timing of stacking ore termination and the length of time that work is expected to continue at site via the sale of waste rock for aggregate, construction and landscape material in the regional area. Such forward-looking statements are based on a number of material factors and assumptions, including, but not limited to: the Company's ability to carry on exploration and development activities; the Company's ability to secure and to meet obligations under property and option agreements and other material agreements; the timely receipt of required approvals and permits; that there is no material adverse change affecting the Company or its properties; that contracted parties provide goods or services in a timely manner; that no unusual geological or technical problems occur; that plant and equipment function as anticipated and that there is no material adverse change in the price of silver, costs associated with production or recovery. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements, or industry results, to differ materially from those anticipated in such forward-looking statements. The Company believes the expectations reflected in such forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct, and you are cautioned not to place undue reliance on forward-looking statements contained herein.

Some of the risks and other factors which could cause actual results to differ materially from those expressed in the forward-looking statements contained in this release include, but are not limited to: risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits and conclusions of economic evaluations; results of initial feasibility, pre-feasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; risks relating to possible variations in reserves, resources, grade, planned mining dilution and ore loss, or recovery rates and changes in project parameters as plans continue to be refined; mining and development risks, including risks related to accidents, equipment breakdowns, labour disputes (including work stoppages and strikes) or other unanticipated difficulties with or interruptions in exploration and development; the potential for delays in exploration or development activities or the completion of feasibility studies; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; risks related to commodity price and foreign exchange rate fluctuations; the uncertainty of profitability based upon the cyclical nature of the industry in which the Company operates; risks related to failure to obtain adequate financing on a timely basis and on acceptable terms or delays in obtaining governmental or local community approvals or in the completion of development or construction activities; risks related to environmental regulation and liability; political and regulatory risks associated with mining and exploration; risks related to the uncertain global economic environment; and other factors contained in the section entitled "Risk Factors" in the Company's Management Discussion and Analysis dated November 29, 2023.

Although the Company has attempted to identify important factors that could cause actual results or events to differ materially from those described in the forward-looking statements, you are cautioned that this list is not exhaustive and there may be other factors that the Company has not identified. Furthermore, the Company undertakes no obligation to update or revise any forward-looking statements included in this release if these beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law.

APPENDIX

Table 1: Updated Mineral Resources - Soledad Mountain as of September 30, 2023

Notes to Table 1

1. Mineral resources are inclusive of mineral reserves.
   
2. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
   
3. Mineral resources are reported by applying cutoffs of 0.008 oz AuEq/ton (0.274 g/t) at the Silver Queen zone and 0.005 oz AuEq/ton (0.171 g/t) at all other areas to all model blocks lying within optimized resource pits, in consideration of potential open-pit mining and heap-leach processing.
   
4. Gold equivalent grades were calculated as follows: oz AuEq/ton = oz Au/ton + (oz Ag/ton / AuEq Factor). The AuEq Factor is derived from metal prices ($2,000/oz Au and $23/oz Ag) and recoveries of 55% for Au and 40% for Ag for model blocks lying within the Silver Queen zone (AuEq Factor = 120), and 85% for Au and 40% for Ag in all other areas (AuEq Factor = 185).
   
5. The effective date of the mineral resources is September 30, 2023.
   
6. Tonnage and grade estimations are presented in both U.S. and metric units. Grades are reported in troy ounces per short ton (U.S.) and in grams per metric tonne.
   
7. The Qualified Person for estimation of mineral resources is Michael Gustin of RESPEC.
   
8. Rounding may result in apparent discrepancies between tons, grade, and contained metal content.

Table 2: Updated Mineral Reserves - Soledad Mountain as of September 30, 2023

Notes to Table 2

1. Mineral reserves were tabulated based on a $1,850/oz gold price and $23/oz silver price within a pit designed.

2. Mineral reserves are based on the economic input parameters provided in Tables 15.1-2,
   15.1-3 & 15.1-4 of the Technical Report, which is available under the Company's profile on SEDAR+.

3. The mineral reserves cutoff grade is based on a net smelter return of $8.44/ore ton ($9.30/ore tonne).

4. Includes 389 ktons (353 ktonnes) from a low-grade stockpile, grading 0.48 g/t (0.014 opt) gold grade applied to probable reserves, not verified by QP, but is not material to the mineral reserves.

5. Based on end of September 2023 topography.

6. Imperial: ktons means 1000 short tons; where, 1 short ton = 2000 lbs.

7. Metric: ktonnes means 1000 metric tonnes; where, 1 metric tonne = 2204.6 lbs.

8. Gold and silver are all reported as contained grades and contained metal where:

"opt" is troy ounce per short ton and "g/t" is grams per metric tonne
"g/t" is grams per metric tonne
"oz" is 1 troy ounce.

9. The columns may not sum exactly due to rounding.

The Qualified Person for the mineral reserve estimate is Joseph McNaughton, Senior Mining Engineer, P.Eng. and a partner of Independent Mining Consultants, Inc. The mineral reserve estimate was prepared in compliance with the disclosure and reporting requirements set forth in the NI 43-101. In accordance with the CIM classification system, only Measured and Indicated resource categories were converted to reserves (through inclusion within the open-pit mining limits). In this Mineral Reserve Statement, Inferred Mineral Resources are reported as waste.

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