LUCA MINING CORP. - LUCMF STOCK NEWS

Luca Mining Corp. (TSXV: LUCA) (OTCQX: LUCMF) has successfully implemented the first two stages of the Campo Morado Improvement Project (CMIP) and commenced Stage 3. The project, partnered with Ausenco México, aims to increase metallurgical performance, mill throughput, and operating cash flow. Key achievements include:

• 53% improvement in copper recovery compared to the same period in 2023
• 68.5% copper recovery to bulk concentrate year-to-date
• Estimated 10% increase in revenue per milled tonne

Stage 3 will focus on producing three high-quality, saleable concentrates of copper, lead, and zinc through modest plant modifications. The company expects to test the copper-lead separation process by year-end, with full project completion by Q2 2025.

Luca Mining Corp. (TSXV: LUCA) (OTCQX: LUCMF) has outlined planned work programs for Q4 2024 and beyond, following its $11.3 million equity financing. The company focuses on optimizing its two producing mines in Mexico:

1. Campo Morado Zinc/Gold/Copper Mine: Luca aims to increase mining rates to over 2,000 ore tonnes per day by Q4 2024, improve metallurgical recoveries, and initiate a significant drill program.

2. Tahuehueto Gold Mine: Construction is completed, with commercial production expected in Q4. A major drill campaign is also planned.

Luca will begin repaying its debt to Trafigura in October 2024, with the final payment scheduled for July 2026. The company is focused on rapid deleveraging and expects these programs to lead to a near-term valuation re-rating and highlight significant upside potential.

Luca Mining Corp. (TSX-V: LUCA; OTCQX: LUCMF) has successfully closed two private placements, raising a total of C$11,306,775. The company completed a brokered LIFE Offering of 19,000,000 units at C$0.45 per unit, generating C$8,550,000, and a concurrent non-brokered private placement of 6,126,167 units at the same price, raising an additional C$2,756,775.

Each unit consists of one common share and half a warrant, with each full warrant exercisable at C$0.60 until March 26, 2026. The proceeds will fund the Campo Morado Improvement Program, exploration drilling at Campo Morado and Tahuehueto, commissioning of the Tahuehueto mill, and general corporate purposes. Two company officers participated in the non-brokered placement, acquiring 1,030,000 units.

Luca Mining Corp. (TSXV: LUCA) (OTCQX: LUCMF) reported record financial results for Q2 2024. Net quarterly revenue reached US$18.2 million, up 49% year-over-year. Net earnings increased 217% to US$4.7 million, with EPS rising 130% to US$0.03. The company achieved positive cash flow from operations of US$739,000 and positive EBITDA of US$6.1 million.

Production totaled 13,947 troy oz of gold equivalent. All-in Sustaining Costs (AISC) were US$1,766 per AuEq oz. Tahuehueto construction was completed, with full production expected by Q4 2024. The Campo Morado Improvement Project continues to progress, focusing on increasing mill throughput and sustaining plant performance.

Luca Mining Corp. (TSXV: LUCA) (OTCQX: LUCMF) has clarified an Early Warning Report issued by Trafigura Beheer B.V. regarding a debt restructuring agreement. The agreement, announced in December 2023, involved converting a US$5.8 million loan into a non-interest-bearing three-year convertible debenture. The debenture, held by Trafigura's subsidiary Urion Holdings, was recently finalized after meeting certain conditions.

If fully converted, Urion would acquire approximately 22,540,457 Luca shares, representing about 11.65% of the company. Combined with existing holdings, Trafigura would indirectly own 12.48% of Luca's outstanding shares. The conversion price is based on a US$ to CAD$ rate of 1.30602 as of August 22, 2024. Luca currently benefits from the non-interest-bearing loan facility, as the debenture has not been converted.

Luca Mining Corp. (TSX-V: LUCA) (OTCQX: LUCMF) has granted 4,508,833 stock options and 800,000 Restricted Share Units (RSUs) to officers and directors. The options are exercisable at $0.55 with a five-year expiry and staged vesting. RSUs will vest on August 15, 2025. Additionally, Luca has amended its agreement with Empress Royalty Corp., revising the payment schedule for silver ounce deliveries, which recommenced on July 1, 2024. The company has also completed construction of its Tahuehueto gold and silver mine, with commercial production expected to be announced within the next quarter.

Luca Mining Corp. (TSXV: LUCA) (OTCQX: LUCMF) has engaged Cominvi, S.A. de C.V. to conduct core mining operations at its Campo Morado copper-zinc-gold mine in Guerrero, Mexico. This partnership aims to increase production and provide cost-effective access to newer mining equipment. Luca plans to boost mill throughput from 1,400-1,600 tonnes per day (tpd) to 2,000 tpd by year-end, with a target of 2,400 tpd in 2025. The collaboration with Cominvi, a respected mining contractor in Latin America, is expected to enhance operational flexibility and help Campo Morado meet and exceed daily production targets without significant capital expenditures.

Luca Mining Corp. (TSXV: LUCA) (OTCQX: LUCMF) has announced a major exploration program for its Campo Morado and Tahuehueto projects in Mexico. The company plans to drill approximately 5,000 meters at each site during Q3 and Q4 of 2024, totaling 10,000 meters. Campo Morado, a large VMS polymetallic system, has over 30 untested targets within its 121 square kilometer area. Tahuehueto, a new gold mine nearing commercial production, has significant exploration potential with less than 10% of its 75 square kilometer concession explored.

The exploration aims to test high-potential targets, explore copper and gold potential at Campo Morado, and extend mineralization at Tahuehueto. CEO Dan Barnholden stated that successful exploration could be "game-changing" for Luca, potentially elevating the company's production to 200,000 oz Au Eq.

Luca Mining Corp. (TSXV: LUCA) (OTCQX: LUCMF) has completed construction of its 100% owned Tahuehueto gold mine in Durango State, Mexico. The mine features a 1,000 tonne per day processing capacity and is expected to reach commercial production by September 2024. Currently processing 450 tpd, the company aims to increase to 800 tpd for commercial run-rate levels.

Tahuehueto is part of a prolific mining region, with only 10% of its 121 square kilometer property explored. The company has installed a third filter press for dry stack tailings, enabling increased production and reduced environmental impact. Luca Mining is targeting annual production of 50,000 oz Au Eq* and plans to commence resource drilling from underground in the coming weeks to potentially increase the mine's resources.