Tinka Resources Limited provided an update on the Company's exploration and development activities at its 100%-owned Ayawilca project (Ayawilca or the Project) in central Peru. Key Highlights for 2023: 11,000 metre in-fill drill program has enhanced confidence in the Zinc and Silver mineral resources: Hole A23-216: 98 metres at 8.8% zinc including 36 metres at 19.0% zinc. Hole A23-217: 71.9 metres at 5.5% zinc & 8 g/t silver including 45.8 metres at 6.4% zinc & 10 g/t silver and 4.85 metres at 15.2% zinc & 23 g/t silver. Hole A23-213: 30.4 metres at 6.0% zinc including 1.2 metres at 37.2% zinc, and 30.5 metres at 5.1% zinc. A23-212: 145.2 metres at 10.9% zinc including 29.3 metres at 20.2% zinc, 10.6 metres at 14.9% zinc, 9.8 metres at 15.1% zinc and 25.8 metres at 13.1% zinc. A22-208: 4.6 metres at 32.4% zinc, 9.9 metres at 9.7% zinc and 71.2 metres at 8.8% zinc including 37.7 metres at 12.8% zinc. A23-220 (Silver Zone): 29.5 metres at 182 g/t silver, 2.4% zinc & 0.8% lead including 7.1 metres at 604 g/t silver, 2.7% zinc & 1.6% lead.

This successful drill program has resulted in the decision by the Company to update the mineral resource estimate and Preliminary Economic Assessment (PEA) for the Project which is expected to be completed by March 2024. Improved metallurgy recovery of the Tin Zone supported by testwork, with ongoing work to improve the silver recovery of the Silver Zone. Project moving forward towards decision to undertake a pre-feasibility study.

The Company is fully funded to carry out its current work plans. Preliminary Economic Assessment Update:As a result of the successful 2022-2023 drill campaign which returned some of the best drill results ever at the Project, the Company has made the strategic decision to update the PEA (the most recent technical report for Ayawilca has an effective date of October 14, 2021). A significant amount of new data has been acquired at the Project during the past 12 to 18 months, including: 11,000 metres of infill and exploration drilling at West and South Ayawilca.

Additional metallurgical testwork resulting in improved recoveries for the Tin Zone. Geotechnical information from drill logs and down hole ?televiewer' surveys. The PEA update, expected to be completed by March 2024, will incorporate a mineral resource update and an economic assessment of a potential future mining strategy for the Zinc Zone and Silver Zone, as well as include a Tin Zone processing scenario for the first time.

SRK Consulting (UK) Ltd. has been selected as the lead mining consultant for preparation of the PEA update. Mineral Resource Update: An updated Mineral Resource Estimate (MRE) to be incorporated into the updated PEA in first quarter 2024, is expected to include a significant increase in the Zinc Zone indicated classified resources as well as an increase in the Tin Zone resource tonnage. SLR Consulting (Canada) Ltd. is again responsible for updating the MRE for the Project.

Metallurgical Testwork: Tin Zone: Metallurgical testwork was conducted on two tin composite samples from Ayawilca at ALS Burnie, Australia: a coarse-grained tin composite from South (AGC-01), thought to represent approximately 15% of the tin mineralization at the Project, and a finer-grained tin composite (AGC-02) thought to represent ~85% of the tin mineralization. Each composite sample was approximately 45 kg. The tin composites graded around 2% Sn (as cassiterite) and contained significant quantities of iron sulphides (pyrrhotite, pyrite and marcasite) with associated iron carbonate (siderite) and quartz, typical of the two styles of tin mineralization at Ayawilca.

Zinc grades in these tin composite samples was low (<1% Zn). A processing flowsheet has been developed which included sulphide flotation to remove the iron sulphides, gravity concentration of the sulphide flotation tails, and tin flotation on the sulphide concentrate following a regrind. Acid leaching was employed to remove the iron carbonates and magnetic separation was used to remove residual pyrrhotite.

Composite AGC-01 generated a concentrate grade of ~50% tin at an excellent recovery (~90%). Composite AGC-02 produced a concentrate grading 50% tin at a lower recovery (~45%), with a projected recovery in closed circuit of 50% tin. There remain opportunities to improve the recovery and product quality with further testwork.