Equus Mining : Cerro Bayo Exploration Update

20 January 2022

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STANDOUT INTERSECTION BOLSTERS

TAITAO POTENTIAL

4.14m @ 11.0 g/t Au, 520.0 g/t Ag (17.9 g/t Au equivalent)

Equus Mining Limited ('Equus' or 'Company') (ASX: EQE) is pleased to announce standout gold and silver drill results from a newly defined high grade zone peripheral to the Taitao Pit. Importantly, this zone was previously interpreted as being part of a localised stockwork zone within the December 2020 Taitao Inferred Mineral Resource. This zone now forms a large potential exploration target extending from the margins of the existing Taitao Mineral Resource towards the Pegaso II and III Targets at the Cerro Bayo Project, Chile (Figure 1).

HIGHLIGHTS

TAITAO DRILL RESULTS

• CBD082:
• • 4.14m @ 11.0 g/t Au, 520.0 g/t Ag (17.9 g/t Au eq1) from 92.01m Including 2.64m @ 16.3 g/t Au, 736.1 g/t Ag (26.1 g/t Au eq1) from 92.01m
  • 0.42m @ 18.65 g/t Au and 19.0 g/t Ag (18.9 g/t Au eq1) from 105.73m
  • 0.59m @ 3.66 g/t Au and 182.0 g/t Ag (6.1 g/t Au eq1) from 134.92m
• CBD080:
• • 0.89m @ 1.8 g/t Au and 800.4 g/t Ag (12.4 g/t Au eq1) from 45.31m
  • 1.61m @ 6.1 g/t Au and 9.8 g/t Ag (6.23 g/t Au eq 1) from 153.3m
• CBD081:
• • 0.73m @ 3.64 g/t Au and 1500.0 g/t Ag (23.64 g/t Au eq1) from 56.1m
  • 2.44m @ 6.13 g/t Au and 44.5 g/t Ag (6.73 g/t Au eq1) from 135.91m Including 0.76m @ 13.45 g/t Au, 74.0 g/t Ag (14.44 g/t Au eq1) from 136.72m

Damien Koerber, Chief Operating Officer, Equus Mining Commented:

"These exceptional results report to a newly interpreted high-grade extension peripheral to the JORC Inferred resource at Taitao of 302koz gold equivalent and within 500m from our operational 0.5Mta flotation plant, which is a testament to the Company´s belief in the compelling potential for additional high grade gold-silver resources at the Cerro Bayo Project.

"Equus´s exploration team is systematically unlocking what we view as exciting potential targeting large scale host structures and understanding of controls on higher grade mineralization. The Company is looking to aggressively drill test this compelling pipeline of new targets, which are largely untested by historic exploration to date."

1 Gold Equivalent (AuEq) is based on the formula AuEq g/t = Au g/t + (Ag g/t / 75).

The AuEq formula assumes a gold and silver price of US$1,800/oz and US$24/oz respectively and similar recoveries for gold and silver Gold and silver recovery assumptions are based on historical performance of the Cerro Bayo processing plant

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TAITAO HIGH GRADE DRILL RESULTS

Partial results (approximately 25%) have been received from the 1st of 3 holes (CBD080- CBD082) completed to date on the central eastern margin of the Taitao Pit.

The intercept in hole CBD082 represents an interpreted new, high grade vein-breccia (Photo 1) hosted within a large scale, low angle easterly dipping fault, the surface expression of which broadly corresponds to the Taitao Pit (Figure 2). This fault is interpreted to extend down dip at depth towards the sub vertical dipping Pegaso II and III structures and presents a series of highly prospective additional targets below the current level of drilling.

Figure 1 - Plan view showing location of Taitao-PegasoII-Pegaso V targets, location of cross section A -A´(Figure 2) and

historic underground mine workings and summary resources of the Delia, Dagny, Fabiola and Coyita Mines

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Figure 2 - A-A´Section view showing summary Equus and historic drill results, interpreted mineralization and exploration targets along and at intersections of low and high angle splays for the Condor- Taitao -PegasoII-Pegaso III zones (west to east). All individual gold and silver results are provided in Appendix 1.

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Photo 1. CBD082 drill core displaying the high grade epithermal vein-breccia interval which returned 4.14m @ 11.0 g/t Au,

520.0 g/t Ag (17.9 g/t Au eq2) from 92.01m -96.15m including 2.64m @ 16.3 g/t Au, 736.1 g/t Ag (26.1 g/t Au eq 2) from 92.01- 94.65m

2 Gold Equivalent (AuEq) is based on the formula AuEq g/t = Au g/t + (Ag g/t / 75).

The AuEq formula assumes a gold and silver price of US$1,800/oz and US$24/oz respectively and similar recoveries for gold and silver Gold and silver recovery assumptions are based on historical performance of the Cerro Bayo processing plant

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PEGASO II-V TARGET DRILL RESULTS

Assay results have been received for holes CBD058-CBD078 completed over the Pegaso II-V targets (refer to Figures 1 and 2) for which the principal high-grade results include:

Pegaso II

• CBD061: 0.81m @ 3.81 g/t Au and 267 g/t Ag (7.37 g/t Au eq3) from 89.91m.
• CBD062: 0.92m @ 3.83 g/t Au and 257 g/t Ag (7.26 g/t Au eq3) from 87.62m
• CBD063: 1.31m @ 3.51 g/t Au, 106.1 g/t Ag (4.92 g/t Au eq3) from 187.39m
• CBD068: 0.75m @ 3.48 g/t Au, 257.0 g/t Ag (6.91 g/t Au eq3) from 153.05m
• CBD070: 0.71m @ 1.1 g/t Au, 568 g/t Ag (8.66 g/t Au eq3) from 102.65m 0.89m @ 1.1 g/t Au and 291 g/t Ag (4.98 g/t Au eq3) from 145.0m 2.62m @ 1.8 g/t Au and 229 g/t Ag (4.89 g/t Au eq3) from 166.81m

Pegaso V

• CBD064: 0.22m @ 12.55 g/t Au and 1790 g/t Ag (36.4 g/t Au eq3) from 27.14m

The Pegaso II target is one of eight brownfields targets (Pegaso II to IX) defined to date that extend along a series of major northwest trending faults, four of which (Pegaso II-V) extend along trend from 4 principal historic mines (Delia, Branca, Fabiola and Coyita). Collectively these mines comprise remaining resources/past production of approximately 560,000 oz Au eq4 (See Figure 1).

In Pegaso II, drilling to date has confirmed the extension of high-grade mineralisation in the upper levels of four principal subparallel veins along a significant portion of the 1km long trend between the Delia NW Mine and the Taitao Pit.

These results build on results from previously reported5 holes drilled including:

• CBD052: 1.66m @ 2.88 g/t Au and 152.25 g/t Ag (4.91 g/t Au eq3) from 189.02m
• CBD056: 2.77m @ 1.09 g/t Au, 263.34 g/t Ag (4.6 g/t Au eq3) from 55.95m

Results returned for 2 of 3 holes completed along the Pegaso III structure intersected wide intervals of brecciation and stockwork veining interpreted to be high level and returned results up to 0.2m @ 1.78 g/t Au and 172 g/t Ag (4.1 g/t Au eq6) from 29.36m in CBD058.

Modelling of gold and silver grades of veins, vein geometries and rock types more favorable to host wider veining intersected in drilling indicate increasing potential for wider veining and increasing grades of veining at depth.

Final assays remain pending for holes CBD076-CBD082 drilled on the Pegaso II, V, Taitao and Andaluz Targets.

3 Gold Equivalent (AuEq) is based on the formula AuEq g/t = Au g/t + (Ag g/t / 75).

The AuEq formula assumes a gold and silver price of US$1,800/oz and US$24/oz respectively and similar recoveries for gold and silver Gold and silver recovery assumptions are based on historical performance of the Cerro Bayo processing plant

1. Based on Mandalay Resources Corporation, Cerro Bayo Mine NI 43-101 Technical Reports dated May 14, 2010. & March 21, 2017 Report #2699
2. ASX Announcement 5th Aug 2021 - Further High Grade Gold Silver Results at Pegaso