Mr. Dan Barnholden reports

LUCA REPORTS Q2 2026 PRODUCTION RESULTS

Luca Mining Corp. has released the its production results for the three months ended June 30, 2026.

As at June 30, 2026, Luca had a cash balance of approximately $24.7-million, compared with $36.4-million as at March 31, 2026. The decrease in cash during the quarter primarily reflected continued investment in the company's assets, including underground development and record exploration activity. Revenue during the quarter was also negatively impacted by lower gold and silver prices, including negative provisional pricing adjustments related to concentrate shipments made in prior periods. The timing of lump-sum tax payments during the quarter and share repurchases made under the company's normal course issuer bid (NCIB) also contributed to the reduction in the quarter-end cash balance.

Revenue in the second quarter included negative provisional pricing adjustments related to concentrate shipments made in prior periods. Concentrate sales are initially recorded using provisional metal prices and are subsequently adjusted to reflect final settlement prices, which are determined using market prices during the applicable quotational period, typically one to four months after shipment. The decline in gold and silver prices during the second quarter resulted in downward adjustments to the value of certain previously recognized sales.

At Campo Morado, previously announced efforts to build a stockpile resulted in a quarter-over-quarter increase in mined tonnes while milled tonnes decreased. This temporarily reduced metal production and cash generation relative to the level of mining activity during the quarter. The stockpile was established to provide greater flexibility in managing mill feed as the company advances optimization initiatives aimed at improving metallurgical recoveries in the near term, ahead of the anticipated recovery improvements from the Campo Morado expansion.

The company continues to maintain a solid balance sheet while investing in underground development, exploration and operational initiatives across its two mines. As previously disclosed in the company's Q1 (first quarter) 2026 financial results, debt has been reduced to approximately $1.4-million, with the remaining balance expected to be fully repaid in July, 2026.

Exploration update

During the second quarter of 2026, the company completed approximately 12,400 metres of drilling, a Luca quarterly record, taking the year to date drilled metres to approximately 22,000. Exploration activities were primarily focused on near-mine and resource expansion targets, achieving the objectives of extending mine life and improving production flexibility at the company's operating assets.

Chief executive officer commentary

"Two thousand twenty-six continues on strong footing, with solid production from both mines, particularly Tahuehueto, where investments in the processing plant and underground development, combined with the transition to new mining contractor, La Cantera, are contributing to improved operating performance," stated Dan Barnholden, CEO. "We remain focused on operational improvements at both mines, with particular emphasis on Campo Morado, where we are advancing mill feed optimization initiatives, supported by an established stockpile, towards improved metallurgical recoveries in the near term, while progressing the design of the Campo Morado expansion, which is expected to deliver further improvements in recoveries.

"Our cash balance at quarter-end reflects a period of significant investment across the business. With $24.7-million of cash at quarter-end and all remaining debt scheduled to be repaid in July, Luca is well positioned to continue funding its operational optimization plans and investment in exploration and growth."

Non-GAAP (generally accepted accounting principles) financial measures

Management believes that the reported non-GAAP financial measures will enable certain investors to better evaluate the company's performance, liquidity and ability to generate cash flow. These measures do not have any standardized definition under IFRS (international financial reporting standards) and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate these measures differently.

About Luca Mining Corp.

Luca Mining is a Canadian mining company with two wholly owned mines located in the prolific Sierra Madre mineralized belt in Mexico. These mines produce gold, copper, zinc, silver and lead, and generate strong cash flow. Both mines have considerable development and resource upside, as well as significant exploration potential.

The company's Campo Morado mine hosts VMS-style (volcanogenic massive sulphide), polymetallic mineralization within a large land package comprising 121 square kilometres. It is an underground operation, producing zinc, copper, gold, silver and lead. The mine is located in Guerrero state.

The Tahuehueto mine is a large property of over 100 square kilometres in Durango state. The project hosts epithermal gold and silver vein-style mineralization. Tahuehueto is a newly constructed underground mining operation producing primarily gold and silver. Luca has successfully commissioned its mill and is now in commercial production at Tahuehueto.

Qualified person

The technical information contained in this news release has been reviewed and approved by Paul D. Gray, PGeo, vice-president of exploration at Luca Mining. Mr. Gray is a qualified person for the company as defined by National Instrument 43-101.

We seek Safe Harbor.