Fortuna Divests Burkina Faso Assets, Adds $70M Cash and Shifts Strategy Toward Growth

Fortuna Mining Corp. (NYSE:FSM, TSX:FVI) ("Fortuna" or the "Company") is pleased to announce the successful completion of the sale of its interest in Roxgold Sanu SA ("Roxgold Sanu"), together with the Company's three other wholly-owned Burkina Faso subsidiaries (together with Roxgold Sanu, the "Acquired Companies") to Soleil Resources International Ltd. ("SRI"), a private Mauritius company (the "Transaction"). Roxgold Sanu owns and operates the Yaramoko Mine in the Balé Province, Burkina Faso. The Transaction closed pursuant to the terms of a definitive share purchase agreement (the "Share Purchase Agreement"). All references to dollar amounts in this news release are expressed in US dollars.

Jorge A. Ganoza, President and CEO, commented, "We're taking the opportunities a strong gold market provides to streamline our asset portfolio. The recent closings of the high-cost San Jose Mine sale in April and the Yaramoko Mine sale in May represent the divestment of two operations with limited reserve life." Mr. Ganoza continued, "In the case of Yaramoko, we received a compelling offer that provided a prudent exit from a jurisdiction where we are no longer pursuing exploration activities and where the operating and security landscape remains challenging."



Mr. Ganoza concluded, "Collectively, these transactions enable us to shift our focus away from mine closures - reallocating approximately $50 million in capital and freeing up management capacity - to pursue higher-value opportunities aligned with our strategic objectives."

The proceeds from the sale increase the Company's first quarter cash and short term investments to over $380 million and liquidity to over $530 million.

Details of the Transaction

Under the terms of the Share Purchase Agreement, SRI acquired all of the issued and outstanding shares of the Acquired Companies held by Fortuna's subsidiaries in consideration for the payment of $70 million in cash. Prior to the closing of the Transaction, Roxgold Sanu paid to the Company a cash dividend in the amount of $53.8 million plus $3.7 million in withholding tax. The agreement also provides that the Company has the right to receive up to approximately $53 million of value added tax receivables upon the completion of certain conditions.

The Company has now ceased all operations in Burkina Faso.

Updated 2025 Production and Cost Guidance Reflects Streamlining of the Portfolio

Following the divestiture of the Yaramoko Mine, Fortuna has updated its consolidated production and cost guidance for 2025.

• Gold equivalent production guidance has been updated to 309,000 to 339,000 ounces, down from the original range of 380,000 to 422,000 ounces; an 18 percent reduction at the midpoint.
  
  
  
  Consolidated cash cost guidance remains unchanged in the original range of $895 to $1,015 per gold equivalent ounce ("GEO").
• All-in Sustaining Cost (AISC) guidance has been updated to a range of $1,670 to $1,765 per GEO, up from the previous estimate of $1,550 to $1,680 per GEO. This adjustment indicates a 6% increase over the midpoint of original guidance and primarily reflects the net impact of the exclusion of the Yaramoko Mine's contribution, and a reduction in the AISC estimate for the Lindero Mine.
  
  
  
  The updated AISC guidance continues to account for expenditures totaling approximately $45 per GEO, including:
  
  
  
  
  • $5.3 M for the upgrade of the Company's enterprise resource planning ("ERP") system to SAP S/4HANA
  • $2 M in land compensation payments at Séguéla
  • $7 M in incremental government royalty payments at the Séguéla Mine