Endomines reports encouraging high-grade intersections from the Pampalo mine and commences further underground drilling targeting deep extensions of the deposit

Endomines AB, stock exchange release 2^nd May 2022 at 15:00 CEST

Endomines is pleased to report drill results from near-mine underground exploration drilling carried out at the end of 2021 at the Pampalo Gold Mine in Finland. The company further reports that, an underground drilling campaign targeting the deep extensions of the Pampalo deposit has commenced.

The drilling program consisted of six (6) horizontal underground diamond drill holes for a total of 1 609 m. The drill holes were drilled to test underground exploration targets north and east of the Pampalo main mineralization, approximately 700 m below the surface. The aim of the drilling program was to find new mineable gold mineralizations in proximity to the existing mine infrastructure.

Highlighted drill results include:

• T-1616 intersected 6.0 meters at 4.1 g/t gold, including 1.0 meters at 21.6 g/t gold and 2.7 meters at 7.1 g/t gold, including 0.7 meters at 17.3 g/t gold
• T-1617 intersected 6.0 meters at 1.3 g/t gold, including 0.4 meters at 5.5 g/t gold and 2.8 meters at 2.1 g/t gold
• T-1621 intersected 5.8 meters at 2.6 g/t gold, including 0.9 meters at 7.2 g/t gold

The overall results reported here clearly proves that the area near the mine is highly prospective for gold mineralization and the likeli hood of new discoveries is very high. Endomines will continue the near-mine exploration efforts in order to assess the full potential of the Pampalo mine area.

The most interesting new drill intersections from infill drilling are presented in the figure below and complete drill results area presented in Table 1.

The underground exploration drilling program had two main targets; the D-zone in the north and the deep extensions of the Pampalo East deposit. The D-zone is an under-explored area located immediately north of the Pampalo main orebody. The area is controlled by a large fold structure, where north-south trending lithological units (Pampalo) are turning towards west, providing favorable structures for gold mineralizations. The Pampalo East area is located immediately east of the Pampalo main ore body and it consists of several low-grade ore bodies that have been targets for mining in the Pampalo open pit.

One of the most encouraging intersections in the drilling came from drill hole T-1617. The intersection 6.0 m at 1.3 g/t gold, including 0.4 m at 5.5 g/t gold is located approximately 70 meters north of the current mining area in so-called D-zone which is known to host gold mineralizations near the surface. More exploration drill holes are required to outline the size and grade of this mineralized lens.

The best intersections of the program were received when drilling through potential extensions to the Pampalo main ore body. The intersection in drill hole T-1616 returned 6.0 m at 4.1 g/t gold, including 1.0 m at 21.6 g/t gold and 2.7 m at 7.1 g/t gold, including 0.7 m at 17.3 g/t gold from the N-lens. Drill hole T-1621 returned an intersection of 5.8 m at 2.6 g/t gold, including 1.0 m at 21.6 g/t gold from the S-lens. The S-lens between the 755 and 655 mine levels was not mined in 2017 due to the narrow nature of the ore body in this area. The company will now re-evaluate mining this area and  is planning to drill more holes into it.

Geological information from these new drill holes will be utilized in 3D structural modeling of the area and defining new exploration targets for further drill testing.

A new drilling program targeting the deep extensions of the Pampalo deposit was commenced on 6th of April 2022. The program includes 4 000 meters of drilling and it covers the next 60 vertical meters down along the deposit. The purpose of the program is to increase reserves for mining. The program is estimated be completed in June 2022.

Table 1 - Diamond core drilling results 2021 from Pampalo underground mine at Karelian Gold Line, Finland

Note: Coordinates are in local Mine Grid. A lower cut-off of 0.5 g/tonne Au has been used for all intervals.

Background

The Pampalo Gold Mine is located 45 kilometers northeast of the municipality of Ilomantsi in Eastern Finland. The Pampalo mine has been in production between 1996 and 1999 by Outokumpu Mining Oy and by Endomines between 2011 and 2018. The mine has produced 180 000 ounces (5 600 kg) of gold at an average grade of 3.6 g/t.

Pampalo is an orogenic gold deposit located within the Archean Ilomantsi greenstone belt. The deposit is characterized by a series of sub-vertical, flattened, parallel pipes, plunging to the northeast and parallel to the local foliation and fold axis, implying a strong structural control of the mineralization. The mineralization is hosted by an intermediate pyroclastic unit, metamorphosed to greenschist – lower-amphibolite facies.

Drilling technical

All underground drilling has been carried out by Comadev Oy, using NQ2 tubes, resulting in core of 50.5mm in diameter. Drill hole locations, start azimuths and -dips have been surveyed by using mine survey equipment. Downhole survey of bearing and dip deviations have been done by using Reflex Gyro survey tool. All core has been oriented with Reflex ACT equipment.

Assay and QA/QC procedures

The drill cores have been logged by Endomines own personnel. The preparation and assaying of the underground drillings core samples have been carried out at Endomines laboratory in Pampalo, Finland or at the CRS Minlab Oy in Kempele, Finland. The sample procedure used at the laboratory was MPC's PAL1000 PULVERISE AND LEACH machine with AAS finishing. The used sample size was 500 g of crushed core.

Normal QA/QC (Quality Assurance/Quality Control) procedures have been adhered to on all the samples, with standards, blanks and duplicates routinely submitted as part of the sampling program. The quality of sample preparation, security integrity and chemical assays was equal to, or exceeded, current industrial standards and the requirements of the JORC-code.

Competent Person

This statement has been controlled by Eurogeologist Jani Rautio MSc (Geol) acting as a Qualified Person in compliance with the Fennoscandian Association for Metals and Mining Professionals, FAMMP, –standards. Jani Rautio is a full-time employee of Endomines.

For further information, please contact:

Kari Vyhtinen, CEO, kari.vyhtinen@endomines.com, +358 40 585 0050

Jani Rautio, Head Geologist, jani.rautio@endomines.com, +358 50 593 0812

The information was submitted for publication, through the agency of the contact persons set out above, at 15:00 CEST on 2 May 2022.

About Endomines

Endomines is a mining and exploration company with its primary focus on gold. The Company explores for gold along the Karelian Gold Line in Eastern Finland and develops mining operations in Idaho, USA. Endomines aims to improve its long-term growth prospects by increasing its exploration activities and through acquisitions. Endomines aims to acquire deposits that are situated in stable jurisdictions and can be brought to production rapidly with limited investments.

The shares trade on Nasdaq Stockholm (ENDO) and Nasdaq Helsinki (ENDOM).

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