166 Million Ounces Of Silver Declared In Calico Project Maiden Resource Estimate, Substantial Resource Growth Opportunities Confirmed

• Optimized pit-constrained resource uses conservative cut-off grade of 50 g/t silver
  • The base-case cut-off grade (“COG”) was determined using the following assumptions:
    • Silver price of US$23 per troy ounce (“oz”)
    • Processing costs of US$29 per short ton (“st”).
    • Mining costs of US$2.50/st
    • Silver recovery of 80%
  • Silver price was determined by averaging the price from the last 24 months up to December 31, 2021, based on data from the World Bank. Processing cost was based on published estimates for similar deposit types, cross-checked against historical processing costs determined by ASARCO in their 1980 historical feasibility study for Waterloo, and adjusted for inflation to 2022 prices. Increased silver prices, optimised processing parameters and/or improved silver recoveries will all impact the COG and the resultant MRE.
• Resource estimates comprise oxide mineralization only
  • The MRE is entirely contained within an extensive, near-surface oxidized silver mineralized zone that shows excellent continuity at both Waterloo and Langtry.
  • The depth of the oxide/sulphide boundary below the current depth extent of the resource is poorly constrained, presenting opportunities to define additional oxide resource at depth. See Growth Opportunities section below.
• High continuity of shallow mineralization amenable to bulk mining methods
  • The near-surface resource is calculated to a maximum depth below surface of ~125 m (415 ft) at Waterloo and 146 m (480 ft) at Langtry. Using conservative open pit optimization to determine reasonable prospects for economic extraction, the calculated waste to mineralized zone ratio for Waterloo is 2.2:1.
  • Drilling demonstrates that mineralization is continuous and extensive: at Waterloo it extends along a strike length of 1,860 m (6,100 ft), and 1,250 m (4,100 ft) at Langtry.
• Significant resource growth opportunities identified
  • Untested silver host stratigraphy identified below ~125 m (415 ft) within current resource extents and along strike at both Waterloo and Langtry.
  • Expansion of high-grade silver mineralization.
  • Gold and barite both have potential to make meaningful contribution.
• Clear path to resource advancement identified
  • 2022 drill program designed to increase resource confidence and expand metal inventory.
  • Metallurgical testing program defined. Results are expected in Q3 of 2022.

Refer to the Appendix for images of the Waterloo and Langtry mineral resource estimate block models.

“I am very pleased with the outcome of our MRE,” Apollo Vice President Exploration and Resource Development, Cathy Fitzgerald, commented. “Through this process we have confirmed the silver mineralization at Calico and firmly established that it is continuous over extensive strike lengths at both the Waterloo and Langtry deposits. Our teams’ focus now turns to drill testing the important resource growth opportunities that this work has confirmed and to upgrading the confidence in the current silver MRE. The upcoming, fully permitted drill program, together with the metallurgical work program we are commencing, will put us in an excellent position to update the MRE and commence initial engineering studies later this year.”

GROWTH OPPORTUNITES

• Several opportunities exist at Calico to expand silver mineralization within and near the current MRE footprint:
  • Historical drilling is shallow (average drill hole depth at Waterloo was 73 m (240 ft) and at Langtry was 128 m (420 ft)). A number of holes terminated prior to intersecting the footwall contact and/or ended in mineralization. The opportunity exists to test for additional silver mineralization at depth within the mineralized Barstow formation.
  • There are indications that footwall Pickhandle formation volcaniclastic rocks may also host disseminated silver mineralization. These remain poorly tested.
  • At Langtry, extensive Quaternary cover is present, and many areas remain untested.
  • Across the Project, several areas within or near the current MRE envelope have not been drill tested and have high potential to host silver mineralization.
  • High-grade silver feeder zones require further drill testing and may add additional +100 g/t silver mineralization.
• Opportunity exists to expand the mineral inventory by defining the extent of gold and barite mineralization:
  
  • The extent of gold mineralization remains poorly constrained. Drilling on the Waterloo property by previous operator Pan American Minerals Inc., identified a gold mineralized horizon 2 km northwest of the historical gold producing Burcham mine. This drilling intersected 25 m (true thickness) of 0.59 g/t at 132.60 m below surface, including 1.52 m of 5.52 g/t Au. This horizon is 60 m wide and 110 m in length (down-dip) and open in all directions. There is potential for meaningful gold mineralization along the entire 2.2 km long contact for which most historic drill holes did not test (see news release from January 11, 2022).
  • Extent of barite mineralization remains poorly constrained. Historic assay techniques both at Waterloo and Langtry tended to under report barium because it was not consistently analyzed using appropriate methods. Analysis of historical pulps and duplicates along with new drilling material using ideal methods will be critical in defining the barite mineralization so that it may potentially be included in a MRE update.

RESOURCE ESTIMATION METHODOLOGY

The MRE was prepared in accordance with the requirements of the Canadian Institute of Mining Metallurgy and Petroleum’s (“CIM”) National Instrument 43-101 (“NI 43-101”) adopted May 2014. Mineral Resources are not Mineral Reserves as they do not have demonstrated economic viability. The quantity and grade of reported Inferred MRE are uncertain in nature as there has been insufficient exploration to define these Inferred Resources as Indicated or Measured.

The MRE considered drilling information up to and including the most recently completed programs in 2012 and geological information from Apollo’s 2021 activities. Drilling information included exploration drilling records for a total of 438 drill holes; 255 holes, 18,626 m (61,108) at Waterloo and 183 holes, 23,465 m (76,986 ft) at Langtry. Nominal drill hole spacing is 40 x 45 m (140 x 150 ft) at Waterloo and 50 x 60 m (160 x 200 ft at Langtry. Average drill hole depths at Waterloo were 73 m (240 ft) and at Langtry 128 m (420 ft). Most holes are vertically oriented reverse circulation holes, with six holes being diamond drill holes.

The resource estimate only considered silver. Previously, barite has been included in historic resource statements however the assay technique used tended to under report barium concentration, rendering some of the barium data unreliable. Gold was evaluated but not enough data was available from drilling for it to be included in the MRE. Both represent growth opportunities as previously discussed.

The 3D resource block models were oriented along regional strike of mineralization controlling range front fault (Calico fault) and bedding, at approximately 045 degrees. Silver grades were estimated using ordinary kriging into a standard 20 ft x 20 ft x 20 ft block model using 15 ft drill hole composites and a bulk density of 2.44 kg/m³ (13.13 ft³/st). The block models are constrained to the west by the Calico range front fault and to the east by the contact between the mineralized Barstow formation sedimentary rocks and the Pickhandle formation rhyolitic rocks. Both structures are mineralization controlling features. A grade capping evaluation was performed, and silver grades were capped at 400 g/t Ag for the Waterloo resource estimate only. The near-surface resource is calculated to a maximum depth of ~125 m (415 ft) at Waterloo and 146 m (480 ft) at Langtry, both comprise only oxide mineralization. The calculated waste to ore ratio for Waterloo is 2.2:1 and for Langtry is 6:1.

Verification of exploration data used for MRE was performed by the independent Qualified Person. The MRE was internally audited and peer reviewed by Stantec prior to being released to Apollo and being declared final. Additionally, Apollo completed an internal review of the MRE as supplied by Stantec. A full description of the data and project verification process will be detailed in the technical report for the MRE, which will be prepared in accordance with NI 43-101 Standards of Disclosure for Mineral Projects and filed within 45 days of this news release on Apollo’s website and on SEDAR at www.sedar.com.

Reasonable Prospects for Economic Extraction and COG Sensitivities

Reasonable prospects for eventual economic extraction were assessed by calculating a base-case COG for silver at 50 g/t. This was achieved by estimating a surface mining operating cost of US$2.50/st, processing operating cost of US$29.00/st and silver price of US$23.00/oz. Block revenue estimates for silver grade blocks greater than 50 g/t, less surface mining costs, were used to generate an optimized Lerchs-Grossman economic pit shell at constant slope of 45 degrees and constrained to within the property claim boundaries.

The processing cost chosen for the MRE was based on published estimates for similar deposit types and cross checked against historical processing costs determined by ASARCO in their 1980 historical feasibility study for Waterloo, adjusted for inflation to 2022 prices. The silver price was determined by averaging the price from the last 24 months up to end-December 2021, based on data from the World Bank.

Variations in processing costs, silver price and silver recovery may impact COG and the resultant MRE. A sensitivity analysis was undertaken to examine the impacts of changing these variables on the MRE at Calico (see Table 2).