Mundoro Capital Inc. announced commencement of the 2023 drill program at the Vale-Mundoro Option Projects located in the southwest portion of the Timok Magmatic Complex (Timok) in Serbia. The drill program is part of the 2023 Work Program and Budget which is solely funded by Vale and for which Mundoro is operator. The drill program has planned 8,000 meters to test five target areas with nine drill holes.

The five main target areas for drill testing during the 2023 drill program are: (i) Tilva Rosh, (ii) Markov Kamen, (iii) Bacevica North, (iv) Orlovo, and (v) Prekostenski. These five areas have been selected out of several target areas ranked as prospective for porphyry copper-molybdenum-gold deposits within the Vale-Mundoro option Projects. Regional Setting.

The Timok region in eastern Serbia is known as a mining district with more than 100 years of mining comprising approximately 4 billion tons in porphyry systems over 5 known mines. The Timok Magmatic Complex is host to the largest copper-gold porphyry deposits in the western portion of the Tethyan Belt such as Cukaru-Peki, a high sulphidation epithermal copper-gold and porphyry copper deposit, Bor underground mine which is a copper-gold porphyry (Bor Mining Complex), Veliki Krivelj and Majdanpek open-pit mines which are both copper-gold porphyries and the recently re-opened Cerovo porphyry copper-gold open-pit mine. Highlights of the Targets.

In the Tilva Rosh and Markov Kamen target areas, the current drill program is a follow up drilling campaign utilizing vectors to a potential porphyry system identified from interpretation of previous drill results and geophysical surveys. At the Bacevica North target, a strong and near surface Induced Polarization (IP) anomaly is confirmed and will be further tested as a result of recently received encouraging drilling results from the 2022 drill campaign. At the Orlovo target, the drilling campaign is designed to test continuation to the NNW and NE of the porphyry copper-gold system with quartz veining within the potassic alteration as vectors to a potential porphyry system identified from interpretation of previous drill results and geophysical surveys followed by the surface geochemistry copper-gold molybdenum anomalies.

At Pekostenski target, a follow up drilling campaign will test the western extension of copper-gold bearing diorite as well as the potential for an alkali porphyry system. Discussion of Target Areas: The five target areas are within zoned hydrothermal alteration which can be traced at surface for 20 km along strike and contains gold epithermal and copper-gold porphyry style mineralization. The north-south striking alteration corridor correlates with a regional scale strong magnetic anomaly interpreted as a magnetite destructive zone of advanced argillic alteration that comprises a broad lithocap at the north targets area as well as argillic and phylic alteration at the south targets.

Tilva Rosh - exploration mapping and drilling to date confirmed advanced argillic alteration within a broad lithocap with epithermal gold mineralization and copper-gold-molybdenum geochemical anomalies at surface extending over an area of 3.6 km x 1.2 km in size. Alteration was identified down dip of alteration to the west in the drill core from the prior drilling campaign in Q4-2019. High-temperature advanced argillic alteration identified at the bottom of one of the nearest drill holes indicates a potential hydrothermal fluid up-flow zone.

Three drill holes were designed to test the northern portion of Tilva Rosh, targeting: (i) the west and north extension from recently completed drill holes in the 2022 drill campaign which intersected quartz and quartz-magnetite banded veins suggestive of the base of the lithocap, and (ii) mineralized porphyry beneath the lithocap supported by both recent geophysics interpretation of IP, a magentotelluric (MT) survey and magnetics survey, and (iii) potassic alteration identified in a prior drill hole in this target area. Markov Kamen - located directly south of Tilva Rosh, Markov Kamen is a large area of silicification covering 3.2 km x 500 m, hosts a significant hydrothermal breccia with anomalous gold grades, and is open to the west and at depth. High-grade copper and gold grades received from sampling old workings contain hypogene chalcocite at the southern edge of the target area.

Based on geophysics, the target to be drill tested is interpreted as a root of an advanced argillic alteration zone. Two drill holes are planned to test the southern portion of Markov Kamen, targeting (i) a deeper root of a MT anomaly as the continuation of surface hydrothermal alteration and (ii) a surface IP anomaly indicating potential for shallower porphyry beneath a copper-in-soil anomaly as follow up drilling from drill holes in the 2019 drill campaign.