Mr. Eric Caba reports

BEAR CREEK MINING ANNOUNCES Q2 2025 MERCEDES PRODUCTION RESULTS AND DRAWDOWN OF FUNDS

Bear Creek Mining Corp. had production of 7,973 ounces of gold and 33,932 ounces of silver from the Mercedes mine during the three months ended June 30, 2025 (second quarter 2025).

Production and development results for the quarter ended June 30, 2025, are as follows.

                             Q2 2025   Q1 2025

Ore mined (tonnes)            91,941   102,886
Ore processed (tonnes)        89,488   105,611
Gold grade processed (g/t)      2.88      2.56  
Gold recovery (%)                 96%       95%  
Gold ounces produced           7,973     8,262 
Silver ounces produced        33,932    36,466 
Development (metres)           1,828     2,469 

Q2 2025 production at the Mercedes mine reflects continued underperformance during the quarter by a mining contractor engaged in late 2024 primarily to provide specialized equipment, personnel and mining services at the narrow-vein Marianas deposit. After repeated attempts to resolve the contractor's underperformance, the company took decisive action and terminated the mining service agreement in May, 2025. The company is currently implementing a comprehensive recovery plan for Mercedes's 2025 production and is finalizing the transition of mining activities at the Marianas deposit to a replacement contractor to support enhanced efficiency and continuity. The Marianas deposit is expected to contribute the majority of Mercedes's production in 2025.

As in the first quarter of the year, delayed production from Marianas was partially offset by accelerating pillar removal at San Martin, which deposit has been fully mined. While gold grades and gold recovery improved quarter over quarter, the slow pace of mine development activity at Marianas, in combination with protractions in work on a new ventilation shaft resulting from poor rock conditions, led to a shortage of available production faces and negatively impacted development metres and both mined and processed tonnage.

The strategic review announced by the company on March 4, 2025, remains actively continuing as of the date of this release. As previously stated, numerous options may be considered under the strategic review including recapitalization, a sale of all or some of the company's assets, a merger, joint venture, business combination, or any combination thereof. There are no assurances or guarantees that the strategic review will result in a transaction or, if a transaction is undertaken, the terms or timing of such a transaction.

Drawdown of funds

Pursuant to the secured promissory note issued to a wholly owned subsidiary of Sandstorm Gold Ltd. on May 8, 2025, funds in the amount of $2.4-million (U.S.) were drawn down by the company on July 14, 2025. The principal amount of the 2025 Sandstorm note is a maximum of $6.5-million (U.S.), of which the company may draw down up to $600,000 (U.S.) per month. An aggregate total of funds drawn to date is $3.6-million (U.S.), and the remaining amount of up to $2.9-million (U.S.) may be drawn down subject to prior approval by Sandstorm in its sole discretion. The draw will be used for general working capital purposes.

The 2025 Sandstorm note bears an interest rate of 7 per cent per annum and will mature on Sept. 22, 2028, with interest payments payable from June, 2025, to November, 2025, deferred until Dec. 31, 2025. For more information regarding the 2025 Sandstorm note and previous draws, please see the company's news releases dated March 4, May 8 and May 22, 2025.

National Instrument 43-101 disclosure

Unless otherwise indicated, scientific and technical information in this news release is based on work programs and initiatives conducted by or under the supervision of, and/or has been reviewed and approved by, Donald McIver, fellow SEG and fellow AusIMM, vice-president, exploration and geology, of Bear Creek, who is a qualified person as defined in National Instrument 43-101 (Standards of Disclosure for Mineral Projects).

We seek Safe Harbor.