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2017-08-22

FILO MINING REPORTS 61% INCREASE IN RESOURCE TONNES AT FILO DEL SOL PROJECT

TONNES AT FILO DEL SOL PROJECT

August 21, 2017: Filo Mining Corp (TSXV, Nasdaq First North: FIL) ("Filo
Mining" or the “Company”) is pleased to announce a significant increase to the
Mineral Resource estimate for its 100% controlled Filo del Sol
copper-gold-silver deposit located along the Chile-Argentina border.

Commenting on today’s news release, Wojtek Wodzicki, President and CEO of Filo
Mining remarked, “Today’s results confirm Filo del Sol as one of the best
growth projects in South America. With less than 9,000 metres of new drilling
we were able increase the resource by 61% and more importantly, define distinct
gold oxide, copper-gold oxide, and silver zones that are amenable to heap leach
processing. The tonnes and grades in the copper-gold oxide zone by itself are
comparable to some of the larger copper leach operations in Northern Chile with
the added benefit of significant precious metal resources in the gold and
silver zones. The exploration upside at Filo is excellent and we are confident
that this resource still has room to grow. These results are an important step
toward our goal of building Filo Mining into a significant new gold, copper,
and silver producer.”

Highlights (see Table 1 for resource details):

- Significant Increase in overall resource tonnes and contained metals.

o Resource tonnes increased by 61% to 372.9 million tonnes Indicated plus
238.9 million tonnes Inferred;

o Total contained gold increased by 62% to 4.0 million ounces Indicated plus
2.5 million ounces Inferred

o Total contained copper increased by 28% to 2.8 billion pounds Indicated
plus 1.4 billion pounds Inferred

o Total contained silver increased by 13% to 110 million ounces Indicated
plus 60 million ounces Inferred

- Resource has now been divided into four zones based on metallurgical
characteristics. Metallurgical testwork completed to date indicates that the
oxide zones are amenable to heap leach processing and that the silver zone
could either be leached or processed by flotation to produce a silver-rich
concentrate. The conceptual engineering studies now underway focus on the
upper three zones. From top to bottom these are:

o A gold oxide zone (AuOx) containing 710,000 ounces of gold Indicated plus
368,000 ounces of gold Inferred.

o A copper-gold oxide (CuAuOx) zone containing 1.6 billion pounds of copper
and 1.6 million ounces of gold Indicated plus 0.6 billion pounds of copper and
0.9 million ounces of gold Inferred.

o A silver zone (Ag) containing 82 million ounces of silver Indicated plus 43
million ounces of silver Inferred.

o These three zones are underlain by a copper-gold sulphide zone (sulphide),
which has not been tested metallurgically yet but based on the mineralogical
characteristics is likely to be able to be processed by flotation to produce a
concentrate.

o It is important to note that there are significant zones of higher grade
material within the broader resource envelope shown in Table 1 - these can be
seen at the higher cut-off grades shown in Tables 2-5.

- Favourable topography for open pit mining methods.

- Excellent conversion of Inferred tonnes to the Indicated category. 61%
of the new resource is now Indicated. The conversion rate of Inferred to
Indicated was 98%.

- Exploration Upside. The resource remains open for expansion in several
directions and at depth. To date only 3 kilometres of the approximately 7
kilometre long strike length of the Filo alteration zone has been drill tested.
All holes drilled into the deposit, including the deepest holes at 500 metres
long, end in mineralization and the potential for porphyry copper-gold
mineralization at depth is considered excellent.

The resource estimate presented in Table 1 represents the total Indicated and
Inferred Resource, divided between a gold oxide zone (AuOx), a copper-gold
oxide zone (CuAuOx), a silver zone (Ag) and a primary sulphide mineralization
zone (sulphide). Each of these zones was reported at a different cutoff grade,
based on expectations of the most important metal or metals in each zone. Base
case cutoff grades are shown in Table 1 and each zone is reported at a range of
cutoff grades in Tables 2-5 below. These four discreet mineralized zones have
been aggregated to derive the total mineral resource. The different zones
reflect distinct styles of mineralization based on mineralogy, grade
distribution and deposit geology and have different metallurgical
characteristics based on preliminary testwork completed to date.

This new resource estimate updates and replaces the resource estimate released
on November 23, 2015 and is based on a total of 36,200 metres of primarily
reverse circulation drilling including an additional 7,500 metres of reverse
circulation drilling in 37 new holes from the drill program completed in March
2017. Most of the increase in the resource estimate comes from the Filo South
zone which is included in the resource for the first time. Filo South is
contiguous with the main Filo deposit. In addition, the oxide gold
mineralization at the Filo deposit was not broken out in the previous resource
estimate, but drilling this past season has greatly expanded both the size and
grade of this area to the point where it is now significant enough to report on
its own.

This resource update forms the basis for internal conceptual studies which are
now underway to evaluate potential project development options. A decision on
whether to proceed towards a Preliminary Economic Assessment (“PEA”) is
expected during the third quarter of 2017.

A technical report prepared according to the guidelines of NI 43-101 and
summarizing this resource estimate will be available under the Company’s
profile on SEDAR within 45 days. The Mineral Resource estimate as of the
effective date of July 1, 2017 is shown in the tables below:

Table 1: Total Resource

Zone Cutoff Catego Tonnes Cu Au Ag lbs Cu Ounces Ounces
ry Au Ag
(milli (%) (g/t) (g/t) (milli (thous (thousa
ons) ons) ands) nds)
AuOx 0.20 g/t Au Indica 52.5 0.05 0.42 3.0 59 710 5,060
ted
Inferr 31.7 0.08 0.36 2.4 57 368 2,470
ed
CuAuOx 0.15 % CuEq Indica 175.3 0.42 0.29 2.8 1,636 1,630 15,530
ted
Inferr 94.7 0.30 0.30 2.3 624 924 6,970
ed
Ag 20 g/t Ag Indica 36.5 0.52 0.41 69.5 421 485 81,600
ted
Inferr 17.0 0.40 0.43 78.9 149 235 43,130
ed
Sulphi 0.30 % CuEq Indica 108.6 0.28 0.32 2.2 658 1,129 7,690
de ted
Inferr 95.5 0.29 0.32 2.4 612 983 7,420
ed
Total Indica 372.9 0.34 0.33 9.2 2,774 3,954 109,880
ted
Inferr 238.9 0.27 0.33 7.8 1,442 2,510 59,990
ed

1 – CuAuOx copper equivalent (CuEq) assumes metallurgical recoveries of 82% for
copper, 55% for gold and 71% for silver based on preliminary metallurgical
testwork, and metal prices of US$3/lb copper, US$1300/oz gold, US$20/oz silver.
The CuEq formula is: CuEq=Cu+Ag*0.0084+Au*0.4239;

2 – Sulphide copper equivalent (CuEq) assumes metallurgical recoveries of 84%
for copper, 70% for gold and 77% for silver based on similar deposits, as no
metallurgical testwork has been done the Sulphide mineralization, and metal
prices of US$3/lb copper, US$1300/oz gold, US$20/oz silver. The CuEq formula
is: CuEq=Cu+Ag*0.0089+Au*0.5266;

2 – The Qualified Person for the resource estimate is James N. Gray, P.Geo. of
Advantage Geoservices Ltd.;

3 – All figures are rounded to reflect the relative accuracy of the estimate;

4 – Mineral Resources are not Mineral Reserves and do not have demonstrated
economic viability;

5 – The resource was constrained by a Whittle® pit shell using the following
parameters: Cu $3/lb, Ag $20/oz, Au $1300/oz, slope of 45°, a mining cost of
$2.50/t and an average process cost of $13.26/t.

TABLE 2: Gold Oxide

Zone Cutoff Categor Tonnes Cu Au Ag lbs Cu Ounces Ounces
y Au Ag
(million (%) (g/t) (g/t) (millio (thousa (thousa
s) ns) nds) nds)
AuOx 0.10 g/t Indicat 79.2 0.05 0.33 2.6 82 832 6,600
Au ed
Inferre 43.8 0.07 0.30 2.3 65 423 3,170
d
0.20 g/t Indicat 52.5 0.05 0.42 3.0 59 710 5,060
Au ed
Inferre 31.7 0.08 0.36 2.4 57 368 2,470
d
0.40 g/t Indicat 20.6 0.05 0.63 3.5 22 418 2,340
Au ed
Inferre 9.8 0.08 0.53 3.2 16 166 990
d
0.50 g/t Indicat 11.9 0.05 0.77 3.7 13 295 1,400
Au ed
Inferre 4.5 0.08 0.63 3.5 8 91 510
d

TABLE 3: Copper Gold Oxide

Zone Cutoff Catego Tonnes Cu Au Ag lbs Cu Ounces Ounces
...

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