Highlights:

• Q1 AuEq production totaled 6,643 ounces, closely aligning with the budgeted target of 6,636 ounces.
• Soma made a payment of $2.5 million toward the Conex Loan.
• The El Limon Mill rehabilitation remains on schedule and under budget, with operations expected to resume by mid-June.
• Formalization efforts for small miners on Soma’s property are ongoing, with two mines set to transport material to the El Limon Mill post-rehabilitation.
• Soma has secured a tax program approval that allows local companies to allocate income tax to capital projects benefiting the community.

VANCOUVER, BC, April 17, 2025 /CNW/ – Soma Gold Corp. SOMA (WKN: A2P4DU) SMAGF announces a corporate update regarding ongoing initiatives.

During Q1 2025, Soma mined 75,093 metric tons (MT), consisting of 52% ore (38,855 MT) and 48% waste (36,238 MT), resulting in AuEq production of 6,643 ounces. Notably, the average gold price achieved was USD $2,848 per ounce, significantly up from USD $2,033 in Q1 2024. The current average grade was slightly lower than expected due to ongoing development activities aimed at accessing higher-grade stopes in the Upper Cordero and Lower Venus areas, which led to increased dilution. However, an increase in gold production is anticipated in the second half of the year as higher-grade areas become accessible and production at El Limon resumes.

The El Limon Mill rehabilitation is advancing well, with completion targeted for June. The revised budget stands at C$980,000 (including contingency), which is 30% less than the original C$1.4 million estimate, attributable to the increased in-house work performed by Soma’s team. The initial milling feed for the El Limon Mill will source from excess production at Cordero, the Aurora Mine, and ore from two small miners working on Soma’s property. Initially, production is expected to reach 100 tonnes per day (TPD), later expanding to 200 TPD.

Progress continues on the formalization of small miners, with the Diamentina and Lemoncito Norte mines undergoing review. Currently, there are 28 formalization contracts pending, which, if approved, could yield Soma between 600-1,000 TPD of ore. Notably, ore from formally recognized small miners typically exhibits higher grades since these miners are selective about the material they transport and often work with minimal dilution.

When obtaining permits for the Cordero Mine, Soma established a benefits agreement with the local community, which included financing for paving a main road through the village. This project is co-financed by Soma and several regional companies, including Mineros S.A., who is managing the project. It has recently received approval under a Colombian Government program that permits companies to invest in community projects rather than pay income tax. This approach allows Soma to fulfill its community commitments with funds that would otherwise be directed to taxes. The total expenditure for the 2.8 km road is COP 15.34 billion (approximately C$5.1 million), with Soma contributing COP 5.5 billion (around C$1.8 million).

In March 2025, Soma made a principal repayment of C$2.5 million towards the Conex loan, which carries terms describing a balloon payment due on July 31, 2030, and an interest rate of 12% annually. Importantly, there are no penalties for early repayment, partial or total. The ability to make this payment was facilitated by the rise in gold prices. Soma aims to reduce its debt rapidly while ensuring adequate cash reserves to support its accelerated exploration strategy, aiming to expand the total resource base, with an updated NI 43-101 Resource Estimate scheduled for early 2026.

Geoff Hampson, President and CEO of Soma, expressed satisfaction with the progress at the Colombian properties. He stated, “We are looking forward to advancing through our current lower-grade mining areas to reach the high-grade zones in Upper Cordero and the Venus Gap. We are executing our plan effectively and will benefit from additional production once the El Limon Mill is rehabilitated. Moreover, we are actively exploring several promising prospects through soil sampling, geophysics, and drilling—initial results are very encouraging. We are also expanding our land position by acquiring adjacent properties showing mineralized trends. The strong gold market has enabled Soma to increase cash reserves and enhance its positions.”

Soma Gold Corp. Reports Solid Financial Position for Future Growth

In its latest update, Soma Gold Corp. has highlighted its robust financial health, emphasizing reserves that exceed operational, exploration, and capital expenditure requirements. The company plans to apply this surplus to accelerate debt reduction. Chief Executive Officer Geoff Hampson stated, “We are on track for a strong 2025 and beyond.”

ABOUT SOMA GOLD

Soma Gold Corp. (SOMA) is a mining company specializing in gold production and exploration. The firm operates two adjacent mining properties in Antioquia, Colombia, with a combined milling capacity of 675 tons per day (tpd), and it is permitted for up to 1,400 tpd. The El Bagre Mill is currently operational and actively producing gold. Soma Gold Corp. is utilizing internally generated funds to support a regional exploration program.

The company prides itself on its commitment to sustainability and community engagement, striving for excellence across all its operations.

Additionally, Soma Gold possesses an exploration property near Tucuma in Para State, Brazil, which is currently under option to Ero Copper Corp.

On behalf of the Board of Directors,

“Geoff Hampson”
Chief Executive Officer and President

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

All statements and analyses contained in this press release regarding expected future events or results are considered forward-looking statements. These statements often feature terms such as “seek,” “anticipate,” “believe,” “plan,” “estimate,” “expect,” and “intend,” alongside phrases like “may,” “will,” “should,” “could,” or “might.” These forward-looking statements involve significant business and economic risks and uncertainties that could result in actual outcomes differing materially from such projections. These statements reflect management’s estimates and opinions at the time they are made. The company does not undertake any obligation to update forward-looking statements unless required by law. Investors are advised to avoid placing undue reliance on these forward-looking statements.

SOURCE: Soma Gold Corp.

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