• Cash Balance of $31.2 Million
• Net Income of $4.0 Million, or $0.05 EPS
• Revenue of $45.4 Million

Gold Resource Corporation (NYSE American: GORO) (the “Company”) sold a total of 8,381 ounces of gold and 265,407 ounces of silver in Q 1 2022 for a gold equivalent total of 11,729 ounces. Additionally, the Company sold 4,359 tonnes of zinc, 408 tonnes of copper, and 1,639 tonnes of lead.

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Dry Stack Tailings Filtration Plant (Photo: Business Wire)

Allen Palmiere, President and CEO, said, “Our operations delivered excellent results during the first quarter 2022. Quarter over quarter processing costs per tonne held steady despite a hyper inflationary environment. Likewise, we reinvested $7.1 million into exploration and infrastructure improvements at the Don David Gold Mine during the quarter. Another $1.1 million was invested to progress the feasibility study and permitting initiatives at the Back Forty Project in Michigan. Our investments in both Mexico and Michigan are focused on favorably impacting our environment, social and governance programs while creating operational efficiencies and longevity.”

Q1 2022 HIGHLIGHTS

Additional highlights for the first quarter ended March 31, 2022, are summarized below:

Strategic

• For the eighth consecutive year, the Don David Gold Mine earned the prestigious Empresa Socialmente Responsable (“ESR”) award from the Mexican Center for Philanthropy (CEMEFI). Awards are given to organizations who demonstrate a commitment to supporting social and environmental protection programs within their local communities.
• During the quarter, the Company purchased and processed a thousand tonnes of tailings material from a nearby community in an effort to ensure the proper environmental treatment and storage of the material.
• Patrick Frenette was hired as Vice President, Technical Services and Steve Donohue was seconded as Vice President, Environmental and Regulatory Affairs (Michigan) to further derisk the successful delivery of the optimized feasibility study and permit applications for the Back Forty Project.
• $0.9 million was distributed in shareholder dividends this quarter, totaling $120.3 million since 2010.

Operational

• Two lost time incidents occurred during the quarter. Both incidents were thoroughly investigated, and the appropriate actions taken.

Financial

• Working capital was $32.4 million at March 31, 2022, $3.1 million higher than at December 31, 2021. The increase is primarily due to an increase in accounts receivables as a result of higher base metal prices and timing of shipments in March.
• Total cash cost for the quarter was $ (121) per gold equivalent (“AuEq”) ounce (after co-product credits) and Total all-in sustaining cost for the quarter was $499 per AuEq ounce (after co-product credits). Both non-GAAP measures were favorably impacted by co-product credits for base metals.¹

Trending Highlights

2022 Capital and Exploration Investment Summary

The Company’s investment in Mexico continued in Q1 2022 totaling $7.1 million. Our investment in Mexico is focused on favorably impacting our environment, social and governance programs while creating operational efficiencies and longevity. Year-to-date at the Back Forty Project, $1.1 million has been invested in feasibility and permitting initiatives.

Gold Regrind Project: Regrinding of the zinc tailings is expected to increase gold recovery by 6% to 10%. The reground material will be leached to produce doré bars. Completion and commissioning are expected in Q2 2022. As of March 31, 2022, a total of $1.6 million has been invested in this project, $1.1 million in 2021. Another $0.2 million is expected to be spent before completion.

Dry Stack Tailings Project: Construction of the water filtration plant and dry stack tailings facilities was completed in 2021. During Q1 2022, work continued to optimize the operations of the filtration plant. Through March 2022, 15,499 tons of tailings were processed through the plant. The dry stack facilities will conserve and recirculate water, eliminate risks related to traditional tailings facilities, accelerate reclamation of certain areas of the open pit mine, and extend the life of the operations. The dry-stacked tailings will accelerate reclamation of certain areas of the open pit mine, extend the life of the operations, and reduce water consumption as approximately 80% of the process water will be available for reuse. As of March 31, 2022, a total of $14.8 million has been invested in this project, $14.0 million through 2021.

Underground and Exploration Development: Mine development during the quarter included ramps and accesses to different areas of the deposit and exploration development drifts. A total of 1,094 meters of development, at a cost of $2.4 million, was completed during the quarter. Underground mine development was $1.6 million and exploration development was $0.8 million (included in Infill Drilling and Exploration Development in the table above). We plan to invest a total of $8.5 million to $9.5 million in underground development and an additional $4.0 million to $4.5 million in exploration development in 2022.

Back Forty Feasibility and Permitting: Work on the optimized feasibility study progressed during Q1 2022. Current initiatives are focused on mine planning and process plant design. Environmental considerations are a key factor in the overall site layout and infrastructure decisions being made. The feasibility study is expected to be released the second half of 2022 followed by permit applications being submitted with state agencies in Michigan.

Q1 2022 Conference Call

The Company will host a conference call tomorrow, Tuesday, May 10, 2022 at 11:00 a.m. Eastern Time.

The conference call will be recorded and posted to the Company’s website later in the day following the conclusion of the call. Following prepared remarks, Allen Palmiere, President and Chief Executive Officer, Alberto Reyes, Chief Operating Officer and Kim Perry, Chief Financial Officer will host a live question and answer (Q&A) session. There are two ways to join the conference call.

To join the conference via webcast, please click on the following link:

https://app.webinar.net/DG5l9rQ3r7X

To join the call via telephone, please use the following dial-in details:

Participant Toll Free: (888) 440-2094

International: (438) 803-0544

Conference ID: 2818458

Please connect to the conference call at least 10 minutes prior to the start time using one of the connection options listed above.

About GRC:

Gold Resource Corporation is a gold and silver producer, developer, and explorer with its operations centered on the Don David Gold Mine in Oaxaca, Mexico. Under the direction of an experienced board and senior leadership team, the company’s focus is to unlock the significant upside potential of its existing infrastructure and large land position surrounding the mine in Oaxaca, Mexico and to develop the Back Forty Project in Michigan, USA. For more information, please visit GRC’s website, located at www.goldresourcecorp.com and read the company’s Form 10-K for an understanding of the risk factors associated with its business.

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