Mr. Sam Ash reports

BUNKER HILL RECOMMENCES CONSTRUCTION ACTIVITIES, REMAINS ON SCHEDULE AND BUDGET FOR MINE RESTART IN Q4 2024

Concurrent with finalizing the engineering of the processing plant, Bunker Hill Mining Corp. has now restarted construction work on site, and is on schedule and budget to restart mining operations by the end of 2024.

Sam Ash, chief executive officer, stated: "I am delighted to report that we have now restarted physical construction work on site, and that our postfinancing project review affirms that we remain on track to start production in Q4 2024 in accordance with the existing budget. This aligns with our strategy of delivering a low-capex restart to set a solid foundation to unlock significant value creation via subsequent optimization and exploration."

Russell portal upgrade started -- the next step on underground infrastructure development

The Russell portal, constructed in the 1980s and located at the Wardner site, provides primary access to and egress from the initial mining areas at level 4 of the underground. Following a competitive tender, this is being expanded by GMS Mine Repair and Maintenance Inc. of Maryland, United States, from 10-foot-by-10-foot dimensions to 16-foot-by-16-foot dimensions to enable the most efficient haulage and vehicle passage during operations and is expected to be completed by early September, 2023.

This will be followed in phases, over six months, by (i) refurbishment of the existing underground ramp between the 6 and 8 levels; (ii) geotechnical stabilization of the ramp as it cuts through the Cate fault between levels 5 and 6; (iii) installation of final ventilation support; (iv) establishment of key underground facilities such as the maintenance shop; (v) connecting the underground mine to the power grid; and (vi) definition drilling of initial mining areas.

Purchase of additional larger mill completed -- offers opportunity to increase production rate and further improve mine economics

The company has now completed the intended purchase of the additional mill capable of increasing production throughput capacity, as originally announced in the company's news release of Sept. 20, 2022. The purchase and its subsequent move to the Bunker Hill site will enable the process plant engineering team to repurpose it as part of an upgraded comminution circuit.

Increased extra capacity provides the mine planners with an immediate upside opportunity to improve upon the economics of the existing 1,800-tonne-per-day restart plan and is being investigated as part of a continuing business plan optimization process.

Process plant engineering advances on track -- allows conveyor system fabrication to start

In accordance with the postfinancing project schedule, Barr Engineering continues to advance final detailed engineering for the processing plant and expects this to be 100 per cent complete in Q3 2023. The advanced status of this work has allowed the company to issue a $3.5-million purchase order for the fabrication of the conveyor system to Rapat Corp. of Minnesota, and for procurement packages to be prepared for thickeners, inching drive and third zinc cleaner cell replacement.

Although prefeasibility study-level test work validated 100 years of processing performance, sufficient to provide a solid basis for business planning/financing, further metallurgical test work is being conducted over next three to six months to optimize these initial recoveries and concentrate quality calculations, concurrent with additional studies designed to highlight additional processing plant optimization opportunities.

Phased power upgrade investment offers low-cost, green power over life of mine

Work has started now to complete the power distribution upgrades at Wardner to provide new primary metered delivery to the underground mine at a maximum of 1.85 megawatts, and remove the need for diesel power in the underground environment. This will be followed by the completion of a feeder between the Bunker Hill and Big Creek substations to allow for shifting of load between those key facilities.

To ensure adequate support to the processing operations at the main Kellogg site, the next phase will see the upgrade of the distribution system through the installation of new primary metered delivery capable of an initial maximum of five MW by August, 2024, an additional 1.2 MW by August, 2025, and a further two MW by August, 2027. These upgrades will then be further enhanced with investments in load management and the construction of a larger transformer at the Bunker Hill site to ensure a dedicated feeder position to serve the mine.

In this way, Avista Utilities and Bunker Hill are working together to deliver low-cost, hydroelectric/green grid power for as low as 4.7 cents per kilowatt-hour, thereby setting the conditions for the replacement of all diesel-powered equipment with modern electrical machinery at some time in the future.

Qualified person

Scott E. Wilson, CPG, president of RDA and a consultant to the company, is an independent qualified person as defined by Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects, and is acting as the qualified person for the company. He has reviewed and approved the technical information summarized in this news release.

About Bunker Hill Mining Corp.

Under new Idaho-based leadership, Bunker Hill Mining intends to sustainably restart and develop the Bunker Hill mine as the first step in consolidating and then optimizing a number of mining assets into a high-value portfolio of operations, centred initially in North America.

We seek Safe Harbor.