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Northern Vertex Reports Third Fiscal Quarter 2020 Financial Results

VANCOUVER, May 19, 2020 (Canada NewsWire via COMTEX) --

(All amounts expressed in US dollars, unless otherwise stated)

Northern Vertex Mining Corp. (TSX.V: NEE) (OTC-Nasdaq Intl.: NHVCF) (the "Company" or "Northern Vertex") today reported revenue of $13.1 million, record earnings from mine operations before depreciation and depletion of $5.2 million, and adjusted EBITDA of $4.8 million.

Kenneth Berry, President and CEO, states: "Our results in the quarter demonstrate the strength of our operations at the Moss Mine in Northwest Arizona. Net income of $7.5 million was driven by our solid earnings from mine operations, plus a non-cash gain on the accounting for our silver stream and existing warrants. In addition, the Company has attained many notable achievements including successful preparations to avoid the impacts of COVID-19, with no known or suspected cases of infection at the Moss Mine nor at its office in Vancouver; a resource update for Moss Mine; the Bureau of Land Management approval to expand the mining operations; and the expansion of the leach pad which was commissioned in March. The Company is well positioned to benefit from the current trend in rising gold prices."

Financial and Operating Highlights for the Quarter Ended March 31, 2020

    --  Production of 7,379 gold ounces and 58,604 silver ounces.
    --  Sales of 7,469 gold ounces and 89,433 silver ounces with
        average realized prices per ounce of $1,560 and $16.56,
        respectively.
    --  Cash was $2.47 million as at March 31, 2019, compared to $3.33
        million at December 31, 2019. Cash on hand as of May 14, 2020
        was $4.67 million.
    --  The Company made extensive and successful preparations to avoid
        the impacts of COVID-19 and is pleased to report no known or
        suspected cases of infection at the Moss Mine nor at its office
        in Vancouver.
    --  Management completed a Phase I resource update for Moss Mine,
        resulting in a 300% increase in inferred resources. Measured
        and Indicated resources were updated to 360,000 ounces of gold,
        while inferred resources were increased to 129,000 ounces of
        gold.
    --  Moss Mine received a permitting approval for the Phase III
        expansion, which allows management to expand the size of the
        mine which supports the resource update and supports an
        extension to the mine life.
    --  Management completed the Phase II heap leach expansion in
        March, which will accelerate gold recoveries during the next
        few quarters and provide for more flexible operations.
    --  Cash cost per ounce of gold sold for the quarter was $862.( 1)
    --  Moss Mine All-in sustaining costs (AISC) for the quarter was
        $991 per ounce sold(1), which included a heap leach write-up of
        approximately $1.28 million. Excluding the adjustment, AISC for
        the Moss mine was $1,163 per ounce sold(1), which included the
        impacts of COVID-19 expenses.
    --  Net profit for the quarter was $7.51 million driven off
        operating income from mine operations, and $5.76 million of
        fair value gains on derivative liabilities.


                        (1) Refer to non-IFRS
                         financial measures and
                         Forward-Looking Statements
                         at the end of this news
                         release.


Operating Statistics



        Three Months

      Three Months

       Nine Months

        Nine Months



        Ended March

      Ended March

       Ended March

        Ended March



         31, 2020

      31, 2019 (3)

        31, 2020       31, 2019 1,2,3






                  Mining

    ---


       Ore mined
     t                        572,104             531,321             1,546,340             1,423,890



       Waste mined
     t                        852,671           1,000,427             2,748,578             2,608,397



       Total mined
     t                      1,424,775           1,531,748             4,294,918             4,032,287



       Strip ratio
     waste/ore                   1.49                1.88                  1.78                  1.83

    ---




                  Crushing

    ---


       Tonnes stacked
     t                        544,067             541,902             1,493,624             1,283,983



       Tonnes stacked per day (average)
     tpd                        5,979               6,021                 5,431                 4,686



       Contained gold ounces stacked
     oz.                       12,049              11,824                33,830                29,466



       Contained silver ounces stacked
     oz.                      209,492             213,115               565,874               426,769



       Gold grade
     g/t                         0.69                0.68                  0.70                  0.71



       Silver grade
     g/t                        11.98               12.23                 11.78                 10.34

    ---




                  Processing

    ---


       Gold ounces produced 4
     oz.                        7,379               6,057                22,970                16,829



       Silver ounces produced 4
     oz.                       58,604              25,558               185,863                67,204

    ---




                  Sales

    ---


       Gold ounces sold 5
     oz.                        7,469               6,457                23,506                17,010



       Silver ounces sold 5,6
     oz.                       89,433              16,678               224,111                49,796

    ---



       (1) The Moss Mine commenced commercial
                  production effective September 1,
                  2018.  In relation to this, only
                  financial operating results from this
                  date are recognized in the Company's
                  Condensed Interim Consolidated
                  Statements of Loss and Comprehensive
                  Loss for the three and nine months
                  ended March 31, 2019.  Financial
                  operating results from the Moss Mine
                  prior to September 1, 2018 were
                  capitalized to property, plant and
                  equipment.




       (2) The operating statistics for the nine
                  months ended March 31, 2019 include
                  pre-commercial production results.




       (3) Crushing statistics for the three and
                  nine months ended March 31, 2019 have
                  been adjusted from previously
                  released statistics due to a change
                  in the Company's estimate of tonnes
                  and contained ounces stacked during
                  the nine months.




       4  The nine months ended March 31, 2019
                  includes 3,672 gold ounces and 12,009
                  silver ounces that were produced pre-
                  commercial production being the two
                  months ended August 31, 2018.




       5  The nine months ended March 31, 2019
                  includes 4,924 gold ounces and 16,376
                  silver ounces that were produced
                  during pre-commercial production
                  being the seven months ended March
                  31, 2019.




       6  Includes silver ounces purchased and
                  on-sold to final customer to deliver
                  deferred ounces relating to silver
                  streaming agreement.


The Company's interim consolidated financial results for the third fiscal quarter 2020 ended March 31, 2020 have been filed on SEDAR. The information in this news release should be read in conjunction with the Company's Condensed Interim Consolidated Financial Statements and Management's Discussion & Analysis available on the Company's website at www.northernvertex.com or under the Company's profile on SEDAR at www.sedar.com.

Non-IFRS Performance Measures

The following tables represent the calculation of certain Non-IFRS Financial Measures as referenced in this news release.

Reconciliation to Cash Costs

                                                       Three Months       Three Months  Nine Months       Seven Months

                                                        Ended March        Ended March  Ended March        Ended March

                                                           31, 2020           31, 2019     31, 2020           31, 2019




       Gold ounces sold(1)                                   7,469               6,457        23,506              12,085





       Cash costs reconciliation



       Cost of sales                                               $
              10,069                $
              8,227   $
      35,509 $
        15,774



       Less: Depreciation and depletion                    (2,195)            (2,047)      (7,960)            (3,360)



       Add: Refining and transportation                         49                  32           168                 106



       Less: Silver revenue                                (1,482)              (258)      (3,810)              (498)

    ---


       Cash costs                                            6,441               5,954        23,907              12,022

    ---



                Cash costs per ounce of gold sold                 $
              862                  $
              922    $
      1,017    $
        995

    ===

Reconciliation to All-In Sustaining Costs

                                                   Three Months      Three Months  Nine Months       Seven Months

                                                    Ended March       Ended March  Ended March        Ended March

                                                       31, 2020          31, 2019     31, 2020           31, 2019




       Gold ounces sold                                  7,469              6,457        23,506              12,085





       AISC reconciliation



       Cash costs                                              $
              6,441                $
              5,954   $
      23,907 $
      12,022



       Sustaining capital expenditures(1)                  870                 15         2,322                  69



       Accretion on reclamation obligation                  90                 84           250                 175



       Waste capitalization                                                                                  648


                                                          7,401              6,053        26,479              12,914





                Moss Mine AISC per ounce sold                $
              991                  $
              937    $
      1,126  $
      1,069

    ===

Reconciliation to Adjusted EBITDA



        Three Months

        Three Months

       Nine Months

       Nine Months



        Ended March

        Ended March

       Ended March

       Ended March



         31, 2020

         31, 2019

        31, 2020

        31, 2019




       Net profit (loss)                             7,511                 (1,333)              (3,214)               (7,747)



       Depreciation and depletion                    2,195                   2,047                 7,960                  3,360



       Finance costs (income)                      (4,589)                    609                 5,052                  5,370



       Share-based compensation                        231                     401                   763                    516



       Foreign exchange (gain) loss                  (548)                    173                 (473)                  (96)

    ---



                Adjusted EBITDA                  4,800                   1,897                10,088                  1,403

    ===

About Northern Vertex Mining Corp.Northern Vertex Mining Corp. is focused on low cost gold and silver production at its 100% owned Moss Mine in NW Arizona. The Company has experience across all areas of operations, mine development, exploration, acquisitions and financing of mining projects. With operations at the flagship Moss Mine achieving commercial production the Company intends to consolidate additional producing or near-term production gold assets within the Western US. Through mergers and acquisitions Northern Vertex's corporate goal is to become a mid-tier gold producer with over 200,000 ounces of gold production annually.

ON BEHALF OF THE BOARD OF NORTHERN VERTEX"Kenneth Berry"President & CEO

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Statements:

This news release contains statements about our future business and planned activities. These are "forward-looking" because we have used what we know and expect today to make a statement about the future. Forward-looking statements including but are not limited to comments regarding the timing and content of upcoming work and analyses. Forward-looking statements usually include words such as scheduled, may, intend, plan, expect, anticipate, believe or other similar words. Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by the Company as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Many factors, known and unknown, could cause actual results to be materially different from those expressed or implied by such forward-looking statements. We believe the expectations reflected in these forward-looking statements are reasonable. However, actual events and results could be substantially different because of the risks and uncertainties associated with our business or events that happen after the date of this news release. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date made. As a general policy, we do not update forward-looking statements except as required by securities laws and regulations. US investors should be aware that mining terminology used for Canadian mineral project reporting purposes differs significantly from US terminology.

View original content to download multimedia:http://www.prnewswire.com/news-releases/northern-vertex-reports-third-fiscal-quarter-2020-financial-results-301061484.html

SOURCE Northern Vertex Mining Corp.

View original content to download multimedia: http://www.newswire.ca/en/releases/archive/May2020/19/c3669.html

SOURCE: Northern Vertex Mining Corp.

www.northernvertex.com or contact Investor Relations at: 604-601-3656 or at
1-855-633-8798

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