Tesoro’s El Zorro Project Advances Amid Uncertainties on Resource Extensions

Drilling Momentum at El Zorro

Tesoro Gold Limited has delivered encouraging results from its extensive diamond drilling campaign at the El Zorro Gold Project in Chile. The company is executing three concurrent drilling programs, focused on infill, extensional, and new discovery targets, that together span approximately 38,000 meters. These efforts aim to upgrade the Mineral Resource Estimate (MRE), support pre-feasibility study (PFS) workstreams, and explore district-scale opportunities.

The initial batch of assay results from the first eleven holes, encompassing both infill and extensional drilling at the Ternera Deposit, reveal wide intervals of high-grade gold mineralization. Notably, infill drilling returned intercepts such as 43.08 meters at 1.98 grams per tonne (g/t) gold, including a higher-grade segment of nearly 6 meters at 7.86 g/t. Extensional drilling also intersected shallow mineralization, with one hole delivering 10.06 meters at 1.70 g/t gold, including a 2.21-meter section grading 7.20 g/t.

Strategic Focus on Resource Growth and De-risking

The infill program, comprising roughly 20,000 meters, is designed to enhance confidence in grade continuity and geometry within the proposed open pit area at Ternera. These results will underpin the next MRE update and form a critical foundation for the PFS mine design. Meanwhile, the extensional drilling, targeting about 6,000 meters, seeks to expand the deposit by testing northern and southern shallow extensions and depth extensions along structural trends.

Complementing these near-deposit efforts, Tesoro has initiated a 12,000-meter district-scale drilling program targeting high-priority prospects such as La Brea, Calderillas, Kitsune, and Toro Blanco. Drilling at La Brea has commenced with five holes planned, and assay results are anticipated within 4 to 6 weeks. This aggressive exploration strategy reflects Tesoro’s belief in the geological potential of the El Zorro district to host multiple gold deposits beyond Ternera.

Fully Funded and Advancing Toward Production

Following a recent capital raising, Tesoro is fully funded to pursue this expansive drilling campaign through to the end of the first quarter of 2026. Managing Director Zeff Reeves emphasized that the combined drilling and development workstreams are well advanced, with the infill program rapidly progressing to support the PFS. The company’s strategic approach aims to both de-risk the project and unlock additional value through resource growth and new discoveries.

El Zorro’s location in Chile’s Coastal Cordillera, a region known for world-class copper and gold mines, provides infrastructure advantages and access to an experienced mining workforce. Tesoro’s 95% owned Chilean subsidiary controls 95.4% of the project, positioning the company well to advance toward production.

While some assay results remain pending and true widths of mineralization are yet to be fully determined, the initial findings confirm the continuity of wide, high-grade gold zones. These results will be integrated into updated resource models and feasibility studies, setting the stage for further project milestones.