Media Luna

The Media Luna deposit, hosted in a magnetic anomaly south of the Balsas River, was discovered in March of 2012 and has current inferred resources of 7.4 million gold equivalent ounces at a grade of 4.48 g/t. This resource is contained in less than 30% of the area of the targeted magnetic anomalies. The conceptual design contained in a positive Preliminary Economic Assessment (PEA) announced in September of 2018 envisions an underground operation with expected production of 3,9 million ounces of gold equivalent over the LOM at an average AISC of US$619/oz Au Eq and an initial CAPEX of US$496 million. The updated Media Luna PEA delivers a healthy after-tax IRR of 27%, and an NPV (5%) of $582M.

Additional metallurgical test work is underway with the intention of demonstrating that metal recoveries can be increased. Infill drilling is ongoing for this project, with the objective of upgrading 1.85M of the 7.4M Inferred Au Eq. ounces (25%), to the Indicated confidence category. We look forward to the completion of this infill drilling and the advancement to the next levels of technical studies.

1) Metal Prices used $1,200/oz Au, $17.00/oz Ag, $3.00/lb Cu, USD:MXN 1:18
2) A preliminary economic assessment should not be considered a prefeasibility study or feasibility study, as the economics and technical viability of the Media Luna Project have not been demonstrated at this time. The Media Luna PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. It cannot be assumed that all or any part of the inferred resources will ever be upgraded to a higher category. Furthermore, there is no certainty that the conclusions or results as reported in the Media Luna PEA will be realized. Mineral resources that are not mineral reserves do not do not have demonstrated economic viability.

Media Luna Deposit Inferred Mineral Resource Estimate at a 2.0 g/t Au Eq. Cut-off Grade.

Deposit

Resource
Category

Tonnes
(Mt)

Gold Eq.
Grade
g/t

Contained Gold Eq.
(Moz)

Gold
Grade
(g/t)

Contained Gold
(Moz)

Silver
Grade
g/t

Contained Silver
(Moz)

Copper
Grade
%

Contained Copper
(Mlb)

Media Luna

Inferred

51.5

4.48

7.42

2.40

3.98

26.59

44.02

0.99

1,128.50

Notes to accompany mineral resource tables

  1. The qualified person for the estimate is Mark Hertel, RM SME, an Amec Foster Wheeler employee. The estimate has an effective date of June 23, 2015.
  2. Au Equivalent (AuEq) = Au (g/t) + Cu % *(79.37/47.26) + Ag (g/t) * (0.74/47.26)
  3. Mineral Resources are reported using a 2 g/t Au Eq. grade
  4. Mineral Resources are reported as undiluted; grades are contained grades
  5. Mineral Resources are reported using a long-term gold price of US$1470/oz, silver price of US$23.00/oz, and copper price of US$3.60/lb. The metal prices used for the Mineral Resources estimates are based on Amec Foster Wheeler`s internal guidelines which are based on long-term consensus prices. The assumed mining method is underground, costs per tonne of mineralized material, including mining, milling, and general and administrative used were US$50 per tonne to US$60 per tonne. Metallurgical recoveries average 88% for gold and 70% for silver and 92% for copper.
  6. Inferred blocks are located within 110 m of two drill holes, which approximates a 100 m x 100 m drill hole grid spacing
  7. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
  8. Rounding as required by reporting guidelines may result in apparent summation differences between tonnes, grade, and contained metal content.
  9. For additional information, see the Technical Report

Additional technical information is contained in the technical report entitled "Morelos Property, NI 43-101 Technical Report, ELG Mine Complex Life of Mine Plan and Media Luna Preliminary Economic Assessment, Guerrero State, Mexico" dated effective March 31, 2018, and filed on September 4, 2018 (the "Technical Report"). The technical information contained in this presentation is based upon the information contained in the Technical Report which is available on SEDAR as www.sedar.com and the Company's website at www.torexgold.com and as updated in the Company's continuous disclosure documents also available on www.sedar.com and www.torexgold.com.

A preliminary economic assessment should not be considered a prefeasibility study or feasibility study, as the economics and technical viability of the Media Luna Project have not been demonstrated at this time. The Media Luna PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. It cannot be assumed that all or any part of the inferred mineral resources will ever be upgraded to a higher category. Furthermore, there is no certainty that the conclusions or results as reported in the Media Luna PEA will be realized. Mineral resources that are not mineral reserves do not do not have demonstrated economic viability.