Bear Creek Mining entered into a promissory note (the "Note") with Auramet International ("Auramet") in connection with a one-year USD $5.0 million loan facility.

Anthony Hawkshaw, Chief Executive Officer of Bear Creek states, "The proceeds of the Facility will provide Bear Creek with additional working capital that the Company will use to fast-track production improvements at our recently acquired Mercedes gold-silver mine in Mexico, on continuing early works construction projects related to our Corani silver project in Peru and for general and administrative expenses."

Pursuant to the Note, the Facility is due on the first anniversary of the Note, such date being July 28, 2023, and the Company may repay the Facility, in minimum incremental amounts of USD $1.0 million, either in whole or in part, from time to time without penalty, subject to any accrued interest. The Facility is subject to an original issue discount fee of 2.5%, which was deducted from the advance of the Facility. Interest accrues on the unpaid principal amount at a rate of 6.00% per annum plus the greater of (i) the USD Secured Overnight Financing Rate or (ii) 1.00% per annum, payable quarterly in arrears.

As partial consideration for the Note, the Company entered into an offtake agreement (the "Offtake Agreement") with Auramet whereby the Company has agreed to sell to Auramet 100% of the outturn from the Mercedes gold-silver Mine in Mexico (the "Mercedes Mine") less the amount of gold and silver sold by the Company pursuant to existing royalty and stream agreements (the "Applicable Product") until the Note is paid in full and, thereafter, 50,000 troy ounces of the Applicable Product.

The Facility is secured by a pledge by the Company of all of the outstanding shares of the Company's wholly-owned subsidiary Bear Creek Mining S.A.C.